Case Law[2025] ZAGPJHC 198South Africa
Van Der Weele and Another v Da Costa (2023/123982) [2025] ZAGPJHC 198 (27 February 2025)
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Van Der Weele and Another v Da Costa (2023/123982) [2025] ZAGPJHC 198 (27 February 2025)
Van Der Weele and Another v Da Costa (2023/123982) [2025] ZAGPJHC 198 (27 February 2025)
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sino date 27 February 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION,
JOHANNESBURG
Case
Number:
2023-123982
(1)
REPORTABLE:
NO
(2)
OF INTEREST TO OTHER JUDGES:
NO
(3)
REVISED: YES
In
the matter between:
NEIL
VAN DER
WEELE
First Applicant
KEVIN
LIEBENBERG
Second Applicant
and
RAPHAEL
GARCIA DA
COSTA
First Respondent
EX TEMPORE
JUDGMENT
DELIVERED VIRTUALLY
24 FEBRUARY 2025
PJ DU PLESSIS, AJ
Introductory comment:
In this opposed motion matter the
court inquired from the parties if this matter was correctly placed
as an opposed motion and whether
it should not have been an action in
the light of the many existing factual disputes and alternative cause
of action - unlawful
enrichment.
[1]
After hearing the Applicant and Respondent
the court delivered the following ex tempore judgment. I requested
the original audio
file to be typed for revision and to upload
same, but it was not forthcoming therefore this reconstruction.
[2]
The joint practice note supplied by the
parties has only the following as common cause facts:
23.1 The identity of
the Parties; and
23.2 that there was
concluded an acknowledgement of debt and settlement agreement.
The existence of Commodus and that it
was a failed business venture involving the litigating parties
wherein the two Applicants
invested the amount(s) claimed as equity
capital was only admitted by them in their replying affidavit on
respondents answering
affidavit on the supplementary answering
affidavit.
[3]
The Respondent maintained Commodus’
failure was blamed on him. He suggests this is because of the
Applicants lack of IT knowledge
(which Applicants admit having).
Respondent says the equity capital they claimed back was not owed as
it was never a loan, but
a joint business venture that failed between
partners in a business venture where the Applicants put up the money
and he provided
the skills. Respondent says the capital was used in
the development of Commodus and was for services he rendered in that
regard.
He admits signing the AOD but under duress. He admits signing
the settlement agreement saying he did so to avoid legal action. He
glaringly omitted to say why he repaid R85 000 on an agreement he
says was concluded under duress for money not owed and which
is void
due to it falling under the National Credit Act.
[4]
The Applicants eventually admitted that the
R360 000 at issue was advanced in good faith for business development
as per
their discussions with the
Respondent
and was to be converted into
equity in Commodus for the Applicants (only) in the percentages of
their contributions. They say the
lack of progress on the project
worried them and eventually they requested their money back which the
Respondent couldn’t
comply with so he signed an AOD and later a
settlement agreement without any pressure from their side. They
allege their agreement
and AOD because of various factors mentioned,
is not one that falls under the National Credit Act and aver that if
the court finds
that it does the Respondent was unjustifiably
enriched and still owes them their money. It is unexplained why the
Applicants remained
silent on the Commodus project until the very
last minute. They termed the money owed as a repayment of a loan by
the two of them
to the Respondent and then later admit it was money
advanced for business development to be converted into equity in this
business.
[5]
The above shows that there are serious
disagreement of fact(s). What is perfectly obvious is that both
parties admit the failed
business venture. It is however foreseen as
they
discussed
this business venture only, and its parameters and obligations wasn’t
fixed when ventured into, there will still be many
dispute(s) of
fact. V
erbal agreements can
be
legally binding,
but
they
are notoriously difficult to prove.
Converting
such an
verbal business
agreement
into a personal loan and having one partner sign an AOD raises even
more serious concerns
as to clarity and
enforceability. This will no doubt end up in serious factual
disputes, rendering this matter to be a trial (action)
rather than an
application.
[6]
Motion
proceedings are
meant
for legal
questions and not factual disputes.
The
affidavits constitute both the pleadings and the evidence and the
issues and averments in support of the parties’ cases
should
appear clearly therefrom (See
Minister
of Land Affairs and Agriculture and Others v D & F Wevell Trus
t
and
Others
2008
(2) SA 184
(SCA) at
200D) It is trite that applicants in application proceedings
must
make
out their case in the founding affidavit. A litigant should not
be allowed to try and make out a case in the replying
affidavit. The
founding affidavit
must
contain
sufficient facts in itself upon which a court may find in the
applicant’ favour. An applicant
must
stand or fall
by his/her founding affidavit (See
Director
of Hospital Services v Mistry
1979
(1) SA 626
(AD) at 635H
– 636D).
[7]
The Applicants to my mind should have
realised when the matter was opposed and the answering affidavit
delivered that they were
heading for serious factual disputes on the
essence of their application being the loan and the validity of their
AOD (Duress and
NCA) after the failed business venture Commodus. They
did not address the essence of the answering affidavit being Commodus
they
rather amended their pleadings (Rule 28) to include unjustified
enrichment a claim more often dealt with in action than motion
proceedings.They eventually in their last replying affidavit
acknowledged Commodus. The question can definitely be asked if the
Applicants complied with the case law findings quoted supra and why
they persisted on motion where it was glaring that action proceedings
was called for.
[8]
The court was asked by the parties to
determine
8.1.
Whether the AOD and Settlement agreement are void due to non-
compliance with the NCA.
8.2.
Whether the AOD and Settlement agreement was signed under
duress.
8.3.
Whether the applicants are entitled to payment from the Respondent
8.4.
Whether the matter should be referred for trial or oral evidence or
dismissed.
8.5.
Cost
[9]
Due to the very claim (loan) being the
contention of a serious business dispute which requires resolution in
a trial court I do
not intend to determine 8.1 - 8.3.
I determine per 28.4 that the matter should be referred for trial.
COST
[10]
As indicated supra there are a few
realisations the applicants should have made as the matter
progressed, they did not. I agree
with Adv Belger’s submission
in his heads of argument when he said “the applicants should
have withdrawn the application
and/or sought agreement from the
Respondent to refer the matter for trial. Also on cost when he
submitted “... cost
should still be awarded to the Respondent
as the Respondent has been put to the trouble of opposing this
application, when such
could have been avoided by an earlier
withdrawal or an agreement to refer the matter to trial at an earlier
stage.
[11]
I accordingly make the following order
Order
1.
The Applicant's application under the above case number is referred to trial,
in which trial the applicants shall be referred to as the
First and Second Plaintiff and the Respondent shall be referred
to as the Defendant.
2.
The Notice of Motion and Founding Affidavit shall stand as a
simple summons.
3.
The Answering Affidavit of the Respondents shall stand as a
Notice of Intention to Defend
the Action.
4.
The
First and Second Plaintiffs shall within 20 (Twenty) days of this
Order deliver its Declaration.
5.
The
Defendant shall within 20 (Twenty) days of delivery of the
Plaintiff's Declaration deliver their plea thereto.
6.
The
further exchange of pleadings and pre-trial procedures,
including discovery and the request for and provision of trial
particulars, shall be regulated by the Uniform Rules of the
Court in respect of action proceedings. Discovery of documents
not
forming part of the application papers shall take place in accordance
with the provisions of the Rules of Court.
7.
The
parties are granted leave to utilise Rule 28 in the event that either
of the parties wishes to amend its papers.
8.
The
Applicants in the Application under the above case number are ordered
to pay the costs of the Application on scale A, jointly
and
severally, the one paying the other to be absolved."
PJ DU PLESSIS
ACTING JUDGE OF THE HIGH COURT
JOHANNESBURG
For
the Applicant:
Adv L Acker
instructed
by
Stein Scop
For
the Respondent:
Adv P W Belger
instructed
by
Leon Geldenhuys
DATE OF HEARING: 24 FEBRUARY 2025
DATE OF EX-TEMPORE JUDGMENT: 24
FEBRUARY 2025
EX-TEMPORE JUDGMENT RECONSTRUCTED: 27
FEBRUARY 2025 AND UPLOADED TO CASELINES ON 28 FEBRUARY 2025
Delivered: This Judgment was handed
down virtually and is now reconstructed for circulation to the
parties/ their legal representatives
by email and by uploading to the
electronic file on Case Lines. The date for hand-down is deemed to be
24 FEBRUARY 2025.
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