Case Law[2025] ZAGPJHC 47South Africa
Alana v Monoline Investments 8 Trust (2020/37977) [2025] ZAGPJHC 47 (23 January 2025)
Headnotes
it did not have the power to make the settlement agreement an order of court on the ground that no litigation had commenced between the parties. [24] In this matter, there is no pending litigation between the parties. The rules of precedent dictate that the decision in Eke and Avnet binds the Court. I am in full agreement with these judgments. Therefore, I decline to make an order that the settlement agreement be made an order of this court.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Alana v Monoline Investments 8 Trust (2020/37977) [2025] ZAGPJHC 47 (23 January 2025)
Alana v Monoline Investments 8 Trust (2020/37977) [2025] ZAGPJHC 47 (23 January 2025)
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sino date 23 January 2025
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REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
JOHANNESBURG
(1) REPORTABLE: NO
(2) OF INTEREST TO OTHER
JUDGES: NO
(3) REVISED: NO
23 January 2025
CASE
NO
: 2020/37977
In the matter between:
ALANA MARJORY
JOYCE
APPLICANT
and
MONOLINE
INVESTMENTS 8 TRUST
RESPONDENT
Coram:
Dlamini J
Date
of request for reasons
: 31 July 2024
Delivered:
23 January 2025 – This judgment was handed down
electronically by circulation to the parties' representatives
via
email, uploaded to
CaseLines
, and released to SAFLII. The date
and time for the hand-down is deemed to be 10:30 on 23 January 2025.
JUDGMENT
DLAMINI
J
INTRODUCTION.
[1]
On 10 June 2024, I made an order marked “X”
an order of this court. My reasons for that order follow hereunder.
[2]
This is an application in which the
applicant seeks relief that a settlement agreement concluded by the
parties on 3 March 2020,
be made an order of this court.
BACKGROUND FACTS.
[3]
The facts surrounding this dispute are
largely common cause and can be summarised as follows;-
[4]
The applicant is a
pensioner who currently resides in the United Kingdom. The applicant
previously lived in South Africa, and on
19 October 2014, she
concluded a written agreement of sale with the respondent, wherein
she bought Unit 1[…] in the G[…]
P[…] Retirement
Village for R1 450,000.00. (“the Unit”).
[5]
The respondent is the
registered owner of Portion 628 of the Farm Wilgespruit No. 190 IQ,
known as Honeydew Manor Extension 12 Township,
and the developer of
G[…] P[…] Retirement Village – a retirement
village, as contemplated in the Housing Development
Schemes for
Retired Persons Act (65 of 1988) (“the Housing Act”) on
the said property.
[6]
The salient terms of
the life rights agreement were the following: -
6.1.
The respondent granted the applicant the exclusive right of lifelong
occupation of the Unit.
6.2.
In return thereof, the applicant lent and advanced the respondent an
amount of R1 450 000,00.
6.3.
The applicant would be entitled to terminate the life rights
agreement at any time, by written notice to
the respondent, on
receipt of which the respondent would be entitled to market the Unit
and alienate the Unit to a new occupant.
6.4.
After a new agreement had been concluded between the respondent and
the new occupant regarding the Unit,
and the new occupant had made
payment in terms thereof, the respondent would pay the applicant an
amount equal to the loan amount
less the agreed commission and any
outstanding costs.
[7]
In January 2019, the applicant terminated the life rights
agreement and sold her life rights in Unit 15 to a new owner. A new
agreement
was then concluded between the respondent and the new
owner. It appears that the new owner duly paid the respondent as per
the
agreement.
[8]
According to the
applicant, the respondent undertook to effect payment to the
applicant in the sum of R1 341 250.00 within six weeks
from the date
of the third party occupying the Unit.
[9]
In breach of the life rights agreement and
its undertaking, the applicant avers that the respondent failed to
make any payment to
the applicant.
[10]
As a result, the applicant avers that she
engaged her attorneys, negotiations ensued, and ultimately, on 3
March 2020, the applicant
and respondent concluded an agreement of
settlement in full and final settlement of all disputes between the
parties (“
the settlement
agreement
”).
[11]
In terms of the settlement agreement, the
respondent undertook to make monthly payments to the applicant from
May 2020 until the
final payment in August 2020.
[12]
It was further recorded that in the event
of a breach on the part of the respondent, the applicant must afford
the respondent written
notice to remedy such breach within 10 court
days, failing which the applicant would be entitled to enforce the
settlement agreement
and the respondent consented to judgment and the
settlement agreement to be made an order of the court.
[13]
The applicant contends that the respondent
failed to adhere to any of the agreed terms and did not make payment
for any of the installments
as per the agreement. As a result, the
applicant launched this application to make the settlement agreement
an order of court.
[14]
The respondent
opposes the application. Initially, the respondent raised a point
in
limine,
alleging that the applicant’s affidavit was not properly
commissioned. After the applicant had filed her replying affidavit
curing this defect, the respondent abandoned this point
in
limine.
[15]
The respondent opposes the application on
the basis that this court has no power to grant an order making the
settlement agreement
an order of the court.
[16]
Second, the
respondent contends that the applicant’s relief sought by the
applicant’s money order prayer should not
be granted as this
prayer appeared for the first time in the applicant’s heads of
argument. That this amount was never prayed
for in the applicant’s
notice of motion. According to the respondent, the only relief sought
by the applicant in her notice
of motion was for an order to make the
settlement agreement to be made an order of court, not for a money
order payment relief.
[17]
The respondent
pointed out that the applicant instituted the proceedings premised on
this court, making a settlement agreement an
order of the court,
which agreement was entered into before the proceedings were
initiated. Where a settlement agreement is concluded
prior to
litigation, a question then arises as to whether or not that
agreement can be made an order of court.
ISSUE
FOR DETERMINATION
[18]
The narrow issue for
determination is whether a settlement agreement was concluded prior
to litigation and whether or not such an
agreement can be made an
order of court.
[19]
The high watermark of the respondent
contention is that the court has no power to make a settlement
agreement an order of the court
where the settlement agreement was
not concluded to settle any pending litigation between the parties.
[20]
It is trite that our
courts do not sit to merely rubber stamp settlement agreements in the
absence of litigious issues. This is
founded on the sensible approach
that courts of law will become no more than administrators of private
treaties between parties.
[21]
It is common cause in
the present case that when the settlement agreement was concluded
there was no pending litigation between
the parties.
21.1The settlement
agreement must relate to the
lis
between the parties.
21.2
It
must not be objectionable in law in any way and accord with the
Constitution and the law.
21.3
It holds some practical and legitimate advantage to the parties.
[22]
These
principles were eloquently set by the Constitutional Court in the
matter of
Eke
v Parsons,
[1]
when considering whether to make settlement agreements an order of
the court, as follows at [25]
“
This
is in no way, means that anything agreed to by the parties should be
accepted by a court and made an order court. The order
can only be
one that is competent proper. A court must not be mechanical in its
adoption of the terms of the settlement agreement.
For an order to be
competent and proper, it must, in the first place “relate
directly or indirectly to an issue or lis between
the parties”
.
Parties contracting outside of the context of litigation may not
approach a court and ask that their agreement be made an order
of
court. On this
Hodd
says: at 38;-
“
[I]f
two merchants were to make an ordinary commercial agreement in
writing, and then were to join an application to Court to have
that
agreement made an order, merely on the ground that they preferred the
agreement to be in a form of a judgment or order because
in the form
it provided more expeditious or effective remedies against possible
breaches, it seems clear that the Court would not
grant the
application”.
That
is so because the agreement would be unrelated to litigation.
[23]
Recently,
the decision of
Eke
v Parsons
was cited with approval by the Constitutional Court in
Avnet
South Africa (Pty) Limited v Lesira Manufacturing
(Pty)
Limited and another
[2]
the court held that it did not have the power to make the settlement
agreement an order of court on the ground that no litigation
had
commenced between the parties.
[24]
In this matter, there
is no pending litigation between the parties. The rules of precedent
dictate that the decision in Eke and
Avnet binds the Cour
t
.
I am in full agreement with these judgments. Therefore, I decline to
make an order that the settlement agreement be made an order
of this
court.
ADDITIONAL
RELIEF
[25]
For the first time in
the applicant’s heads of argument, the applicant seeks
additional relief, that the respondent
be ordered to pay the
applicant a sum of R1 341 250.00. together with interest
thereon from March 2029 to the date of final
payment.
[26]
The applicant’s
claim in this regard has no merit, and this is simple because this
relief was not claimed in the applicant’s
notice of motion and
founding affidavit. The applicant has not adduced any evidence to
sustain this additional relief, which only
appeared for the first
time in the applicant’s heads of argument, and it is thus
dismissed.
[27]
In all the
circumstances alluded to above, I believe that the applicant has
failed to discharge the onus that rested on the applicant’s
shoulder and that she is entitled to the order she sought. The
application is accordingly dismissed.
COSTS
[28]
Costs should follow
suit.
ORDER
1.
The order marked “X” that I
signed on 10 June 2024 is made an order of this court.
J DLAMINI
Judge of the High
Court
Gauteng Division,
Johannesburg
FOR THE
APPLICANT: C
de Villiers-Golding,
EMAIL:
cherie@cheriedvg.com
INSTRUCTED
BY:
Van
Dyk Attorneys
EMAIL:
kelly@vandykattorneys.com
FOR
THE RESPONDENT: Adv.
V Vergano,
EMAIL:
advocatevergano@gmail.com
INSTRUCTED
BY:
Casper Le Roux Attorneys
EMAIL:
casper@cjleroux.co.za
[1]
[21016]
JOL 34112
[2]
[
2019] JOL 41542
(GJ)
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