Case Law[2025] ZAGPJHC 42South Africa
Best Drive Holdings (Pty) Limited and Another v Lewis (2022/027451) [2025] ZAGPJHC 42 (22 January 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
22 January 2025
Headnotes
on 1 August 2024 and on 17 September 2024 I handed down judgment, dismissing the application to amend, with costs.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Best Drive Holdings (Pty) Limited and Another v Lewis (2022/027451) [2025] ZAGPJHC 42 (22 January 2025)
Best Drive Holdings (Pty) Limited and Another v Lewis (2022/027451) [2025] ZAGPJHC 42 (22 January 2025)
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sino date 22 January 2025
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
CASE
NO:2022-027451
(1)
REPORTABLE:
YES
/NO
(2)
OF INTEREST TO OTHER JUDGES:
YES
/NO
(3)
REVISED: YES
22
JANUARY 2025
In the matter between:
BEST DRIVE HOLDINGS
(PTY) LIMITED
First Applicant/ Plaintiff
NV CAPITAL (PTY)
LIMITED
Second Applicant/ Plaintiff
and
MARTIN HENRY
LEWIS
Respondent/Defendant
JUDGMENT
GRAVES
AJ
:
[1]
The Applicants/Plaintiffs seek leave
to appeal against my judgment dated 17 September 2024. The
Applicants sought an order
on motion in terms of Rule 28(4)
permitting them to amend their particulars of claim. The hearing was
held on 1 August 2024
and on 17 September 2024 I handed
down judgment, dismissing the application to amend, with costs.
[2]
The pleaded claim is based upon a
deed of suretyship executed in favour of the Applicants. The
application heard on 1 August sought
to amend the particulars of
claim by alleging that an original (2018) loan agreement had been
amended by a subsequent, self-standing
(2019) loan agreement. The
Respondent / Defendant objected to the proposed amendment
on the basis that a deed of suretyship
executed by the Respondent in
favour of the Applicants under the 2018 loan agreement, did not
provide accessory liability in respect
of the obligations in the 2019
loan agreement. The judgment holds that the proposed amendment could
not sustain the case that
the 2019 loan agreement was no more
than an amendment or variation of the 2018 loan agreement. The
obstacles in the path of the
proposed amendment identified in the
judgment include the application of the parol evidence rule and the
import of the express
terms of the respective loan agreements and the
suretyship. Procedurally, I found that the application for leave to
amend did not
adequately foreshadow admissible evidence that would
raise a triable issue.
[3]
In the detailed heads of argument in
support of the application for leave to appeal and during the
application, counsel for the
Applicants cited a wide range of
reported judgments. Particular emphasis was placed upon the
propositions that (i) an exception
is not the appropriate procedure
to settle questions of interpretation on which evidence may be
admissible at trial and, (ii) if
it is arguable that the amended
pleading would be excipiable, then the proper course is to allow the
amendment, permitting it to
be dealt with at trial. In my judgment, I
found these principles not applicable to the application to amend on
the legal principles,
properly applied.
[4]
In particular, I found that where a
party seeks leave to amend, and contends that a written agreement
should be interpreted with
reference to evidence led at trial, must
foreshadow in the application to amend, the evidence that will be
adduced. The Applicants’
affidavit supporting the opposed
application for amendment fails to do this, relying rather on
generalised references to the principles
of interpretation.
[5]
Nevertheless,
during the argument counsel for the Applicants referred me to the
recent judgment of the Constitutional Court in
Villa
Crop Protection (Pty) Ltd v Bayer Intellectual Property
GmBH.
[1]
Writing
for the majority, Justice Unterhalter analysed the basis of a
judgment by the Commissioner of Patents which had dismissed
an
application to amend on the basis that it was not in the interests of
justice to embark on an enquiry into the application for
leave to
amend. When considering whether the jurisdiction of the
Constitutional Court was engaged, he pointed to an error in the
minority judgment of the Court which had held that the Commissioner’s
misapplication of the law did not engage the jurisdiction
of the
Constitutional Court. No, said Justice Unterhalter, what the
Commissioner had done was to adopt an incorrect legal standard
to
decide the application for leave to amend, which is an error of law
and not a misapplication of the law.
[2]
The
learned
Justice
went on to refer to the permissive principle which is to the effect
that amendments are always allowed, unless they are
sought in bad
faith or would cause an injustice that cannot be remedied by an award
of costs. But importantly, it was cautioned
that the permissive
principle is not without limits and that pleadings that are
excipiable afford grounds for refusing a proposed
amendment.
[3]
[6]
I
believe that I have correctly applied the legal principles to reach
the finding that the application for leave to amend should
be refused
because it would result in an excipiable pleading. I also found, on
the basis of reported authority, that an applicant
for leave to amend
must foreshadow the evidence that will be led at trial to result in
an interpretation of the 2019 loan agreement
that would sustain the
amended pleading. However, if my finding is based upon the adoption
of an incorrect legal standard in deciding
the application to amend,
then I will have made an error of law which is of no small
consequence and which prevents the Applicants’
constitutional
right to have a dispute resolved by application of law before a
court.
[4]
And
an appeal court may disagree with my approach.
[7]
There is a further point that arose
during the argument on leave to appeal. I put to the Applicants’
counsel that his clients’
remedy was simply to introduce a
fresh amendment, which would not be excipiable. His response was that
this was not a solution
because, in the event of that further
application coming before a court if opposed, my judgment would in
all likelihood restrict
the ability of the Applicants to persuade
that later court that it should be granted leave to amend on its new
amendment. Whilst
I have my doubts about this proposition, I cannot
with certainty say that my judgment will not unfairly restrict the
Applicants’
right to introduce amended particulars of claim
setting out a sustainable cause of action. Despite some doubts, I
find that the
appeal has a reasonable prospect of success.
[8]
In these circumstances, I will grant
leave to appeal. Counsel for both parties were agreed that leave
should be granted to the Full
Court of the Gauteng Local Division.
[9]
It is ordered that:
1.
Leave to appeal against the whole of the
judgment and order dated 17 September 2024 is granted to the
Full Court of the Gauteng
Local Division, Johannesburg;
2.
Costs of this application are to be costs
in the appeal.
N.J. GRAVES
Acting Judge of the High
Court of South Africa
Gauteng Local Division
Johannesburg
APPEARANCES
:
Date of
application:
27 November 2024
Date of
judgment:
22 January 2025
Counsel for
Applicants/Plaintiffs:
J W Steyn (with W G Pretorius)
Instructed
by:
L M Du Toit Inc
Mr M
Du Toit
Counsel for
Respondent:
S L P Mulligan
Instructed
by:
Nixon & Collins Attorneys
S D
Collins
[1]
2024(1)
SA 331 (CC)
[2]
See
paragraphs [63] to [65]
[3]
Paragraph
[64], read with paragraph [67]
[4]
Vila
Crop
,
paragraph [65]
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