Case Law[2025] ZAGPJHC 549South Africa
Feltre Trust and Others v Middelvlei Tenacres Properties (Pty) Ltd and Others (2024/019326) [2025] ZAGPJHC 549 (26 May 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
26 May 2025
Headnotes
Summary: Application for leave to appeal. Effect of a failure to attach a resolution authorising 1 (one) of the trustees for the time being of a trust to an agreement of sale of an immovable property, and the effect of a failure to attach resolution to the founding affidavit. Cancellation and/or voidness of a written agreement of sale of a commercial property - forfeiture of amounts paid by the purchaser, case management - Court’s discretion in terms of Rule 6(5)(g) - referral for the hearing of oral evidence of a specified issue - costs - substantially successful.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Feltre Trust and Others v Middelvlei Tenacres Properties (Pty) Ltd and Others (2024/019326) [2025] ZAGPJHC 549 (26 May 2025)
Feltre Trust and Others v Middelvlei Tenacres Properties (Pty) Ltd and Others (2024/019326) [2025] ZAGPJHC 549 (26 May 2025)
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sino date 26 May 2025
SAFLII
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IN THE HIGH COURT OF
SOUTH AFRICA
(GAUTENG DIVISION,
JOHANNESBURG)
CASE NO: 2024-019326
(1) REPORTABLE: YES
/ NO
(2) OF INTEREST TO
OTHER JUDGES: YES/NO
(3) REVISED: YES/NO
26
May 2025
In the matter between:
FELTRE
TRUST
First Applicant
(ID NO: 1[…])
RYAN WINS TON READ
NO
Second Applicant
(ID NO: 7[…])
DAVID EDWARD RHODES
SARGENT NO
Third Applicant
(ID NO: 7[…])
and
MIDDELVLEI TENACRES
PROPERTIES (PTY) LTD
First Respondent
REGISTRATION NO:
2018/405958/07
EDWIN THABO LETOPA
(ID NO:
7[…])
Second Respondent
KWA ATTORNEYS &
CONVEYANCERS
Third Respondent
JUDGMENT
NIGRINI, AJ
Summary: Application
for leave to appeal. Effect of a failure to attach a resolution
authorising 1 (one) of the trustees for the
time being of a trust to
an agreement of sale of an immovable property, and the effect of a
failure to attach resolution to the
founding affidavit. Cancellation
and/or voidness of a written agreement of sale of a commercial
property - forfeiture of amounts
paid by the purchaser, case
management - Court’s discretion in terms of Rule 6(5)(g) -
referral for the hearing of oral evidence
of a specified issue -
costs - substantially successful.
Background:
Judgement was handed down and the orders quoted infra were made. The
respondents apply for leave to appeal the
whole of the judgement and
the orders. The applicant claimed that an agreement for the sale of
an immovable property was validly
cancelled and that the deposit be
forfeited to it. It was held that the agreement is not void and that
it was validly cancelled
by the applicant. A directive was issued
that oral evidence be heard to determine the issue of proportionality
of the penalty.
The respondents claimed certain relief in a
‘counterclaim’ included at the end of its answering
affidavit. The respondent
claimed that the application be dismissed.
It also claimed that the agreement was void and that the applicant
breached the agreement
by refusing to give occupation of the property
before registration of transfer. The respondents further claimed the
full deposit
and raised the issue of proportionality. During argument
of the application for leave to appeal the respondents conceded
cancellation
in the event that the agreement be upheld.
Judgement
1.
For the sake of convenience I shall refer to the
parties as in convention.
2.
The first and second respondents (respondents)
applied for leave to appeal my judgement and orders dated 11th
February 2025. I made
an order in the following terms:
‘
1.
A declaratory order is hereby issued that the second and third
applicants and the first respondent concluded a valid and
binding Contract.
2. A declaratory order
is hereby issued that the second and third applicants validly
cancelled the Contract.
3. The issue relating
to the proportionality and/or disproportionality of the penalty
provided for in the Contract is referred to
the hearing of oral
evidence.
4.
The Conveyancer is ordered to retain the remaining balance of the
Deposit,
together
with accrued interest, in trust until the parties agree otherwise in
writing, or the final determination of the issue of
proportionality
and/or disproportionality by the court.
5. This matter shall
be case managed by Nigrini AJ.
6. The second and
third applicants and the first respondent are directed to arrange a
case management meeting to be held before
Nigrini AJ within a period
of 15 days from the date of this order.
7. The Uniform Rules
of Court shall apply to discovery and qualifying of experts by the
parties, if any.
8. The second and
third applicants and the first respondent shall be entitled to apply
for a date for the hearing of the matter
upon certification by
Nigrini AJ that the matter is ripe for hearing.
9. The first
respondent is ordered to pay the costs of the application on an
attorney and client scale, including the costs of counsel
on scale
C.’
3.
The hearing of the application for leave to appeal
was conducted virtually on 21 May 2025.
4.
The respondents prays for leave to appal to the
Full Bench of the Gauteng Division, Johannesburg, alternatively, the
Full Bench
of the Gauteng Division,
Pretoria,
further alternatively, to the Supreme Court of
Appeal, and that the costs of this application be costs in the
appeal.
5.
I deem it necessary to quote the expansive grounds
for leave to appeal
.
The
respondents contend that the court erred in the following respects:
‘
2.1.
granting Orders [1] ; [2] ; [3] and [4] in favour of the applicants
when the Applicants did not prayed for the in the paragraph
stated.
2.2. granting the
costs of application to the Applicants at scale between attorney and
client, despite that the Applicants did not
plead for costs at that
scale and did not pray for the costs to be awarded at the scale
between attorney and client.
2.3. making the costs
Order that is vague and embarrassing in that costs awarded are at the
scale between attorney and client and
the costs of counsel are on
scale C.
2.4. in having
misconceived his duties and descended from the Bench into the arena
and raise objection to the effect that the counter-application
does
not comply with Rule 6(7) thus it constitutes an irregularity, in
that the prayer in the counter application is set out at
the end of
the answering affidavit but not in a separate notice of motion. From
the pleading delivered there is no such an issue
between the parties.
Subsequent thereto the Honourable court ascended the bench again and
to make a finding that favours the applicant
namely that the counter
claim is fatally defective.
2.5. in having
overlooked that the rouwkoop term is not stipulated in the contract
between the parties, and that the rouwkoop term
is not pleaded in the
founding
affidavit,
directed the parties to file heads in respect
of rouwkoop term. Thereafter the honourable Court failed to apply
constitutional interpretation
provisioned by section 39(2) of the
Constitution when the court ought to have applied section 39(2) of
the Constitution and grant
an order that promotes the spirit, purport
and objects of the Bill of Right. The Order granted is contrary and
irreconcilable with
provisions of section 39(2) of the Constitution
read with section 173 of the Constitution.
3. The honourable
Judge erred seriously in having misconceived his duties in after
deciding the matter violation of the principle
of funtus officio and
allocated to himself, the duty to continue to preside over the same
matter in the proceedings styled case
management despite that:
3.1. section 19(b) of
Superior Courts Act 10 of 2013
confers the discretion whether or not
further evidence should be lead upon Appeal Court and not the court
of first instance.
3.2. Clause 21(1) to
21(6) Consolidated Practice Directive 1/2024 Court operations in the
Gauteng Division set out terms regarding
Judicial Case Management and
the directive made is not consistent with the provision of Clause
21(3) of the Practice Directive
that the DJP may assign a Judge to
case manage the matter if it is apparent that such intervention shall
be useful. Whereas the
honourable Justice is not a DJP, in deciding
to assign to himself to case manage the matter the honourable Judge
seriously errs.
3.3 It is settled
binding principle that the functus officio doctrine is received law
and is to the effect that once a decision-maker
has rendered a final
decision, he becomes functus officio and cannot reconsider the
decision made - See Retail Motor Industry Organisation
and Another v
Minister of Water and Environmental Affairs and Another
2014 (3) SA
251
(SCA) par [23].
3.4. The honourable
Court erred seriously in having misconceived its duties in that
referral to oral evidence may be ordered upon
application in respect
of any disputes of facts which cannot be resolved on affidavit.
whereas non of the parties have alleged
that there are disputes of
fact that require oral evidence none of the parties has applied for
oral evidence in terms of
Rule 6(5)(g).
the aspect of the matter
where there were dispute of facts that might have been referred to
oral evidence is when was the resolution
framed.
4. The honourable
Court erred seriously in having overlooked that the applicants
pleaded that their case was not based on Conventional
Penalties Act
thus the Applicants' case is not based on any averments of having
suffered prejudice or damage as a result of the
breach of the
agreement. In the circumstances the case management before the same
judge that might require expert opinion is not
an issue between the
parties but the issue that the court is creating and allocates itself
to preside over proceedings in so doing
honourable court erred
seriously.
5.
The honourable Court erred seriously in failing to determine the
issues on the basis of pleading and evidence that had been canvassed
before Honourable Court. The decision to refer some issues to oral
evidence constitutes a decision that could be made upon application
by one of the parties. The honourable Court ought to have made an
Order dismissing the application and Ordering that the deposit
paid
be refunded to the First Respondent on the basis of the principle
"that the applicants ought to stands or fall by his
petition and
the facts therein alleged. It is not permissible to make out a case
on new grounds in the replying affidavit and on
the basis the further
opportunity to plead."- See Director of Hospital Services v
Mistry
1979 (1) SA 626
(A-B) at
636A per Diemont JA.
6. The honourable
Court erred seriously in having granted an Order declaring that the
contract of sale is valid despite that from
the face of contract the
said contract does not comply with the peremptory statutory
provisions of Section 2(1) of the Alienation
of Land Act, No 68 of
1981 (ALA) which reads that no alienation of land shall be of any
force and effect unless it is contained
in a deed of alienation
signed by the parties thereto or their agents acting on their written
authority.
7. The honourable
Court erred seriously in having made judgement that is against the
binding authorities, which include the following
:
7.1.
McKenzie v Farmers' Co-Operative Meat Industries Ltd,
1922
AD 16
at para 23 lines 16-19 per Maasdorp JA in
respect
of the peremptory requirement of the signature by the seller and the
purchaser of the immovable property or their Agent
on the contract of
sale should comply with provisions of section 2(1) of ALA. And
failure to attach the resolution appointing Agent,
and the Deeds of
Trust to contract and founding affidavit constitutes failure to
alleged one of the facta probanda of valid sale
by the Trust.
7.2. Goldex 16 (Pty)
Ltd V Capper NO and Others (543/2018) concerning: where the trustee
contracted for the Trust the capacity in
which the Trustee acted must
as appear from the face of contract, to be complying with the terms
of Trust Deeds otherwise the contract
is invalid.
7.3. Land and
Agricultural Bank of South Africa v Parker and Others
2005 (2) SA 77
SCA : where the trustee contracted for the Trust the capacity in
which the Trustee acted must as appear from the face of contract,
to
be complying with the terms of Trust Deeds otherwise the contract is
invalid.
7.4. Thorpe and Others
v Trittenwein and Another
2007 (2) SA 172
SCA at para [8] and [9]:
where the trustee contracted for the Trust the capacity in which the
Trustee acted must appear from the
face of contract, to be complying
with the terms of Trust Deeds otherwise the contract is invalid.
8. The honourable
Court erred seriously in having overlooked that what is referred to
oral evidence is a non-issue between the parties,
in that the
replying affidavit at paragraph 45, the applicants in writing elected
to deny that their claim constitutes a penalty
stipulation or damages
as defined by Conventional Penalties Act 15 of 1962 and the
provisions of CPA are not applicable in determining
the relief
sought. Thus applicant did not aver any liquidated damages to have
been sustained.- See paragraph [45] of the replying
affidavit. The
honourable Court is referring to oral evidence what is non issue
between the parties. To refer to oral evidence
to determine
proportionality which is deliberately not pleaded that constitutes
violation of the respondents' right to have the
matter presided over
fairly without favour of any party.
9. The honourable
Court erred in creating an issue for the parties in respect whereof
the parties are required to prepare concerning
the penalty or
proportionality of damages despite that the applicants denies that
their claim is not a penalty and that it is not
the applicant case
that the sustained damages or any prejudice from the conduct of the
respondents.
10.
The honourable Judge erred seriously in creating issues and ordering
that such be referred to oral evidence, and the court should
appear
before the same judge who is functus including
presiding
over the proceedings styled case management,
that in the view of honourable Judge would include discoveries and
qualifying of experts
to be filed by parties when none of the party
have express intention to procure expert evidence. The case
management proceedings
ordered infringe the applicant's right to
fairness provisioned by section 34, read with section 165(2) and
39(2) of the Constitution.
11. The honourable
Court erred seriously in having overlooked that fairness requires the
Honourable Court should use of pleadings,
and evidence canvassed
before court to the determine the issues between the parties. It
cannot be fair for this Honourable Court
to at subsequent to making
some final order direct the parties to appear before the same
Honourable Judge presiding the case management
concerning what they
should have plead and file to satisfy the Court. The pleading are
made for the courts, it is not for the court
to frame the pleadings
and refer the dispute to case management before the same Judge who
made final decision as is sought to be
done in this matter.
12. The honourable
Judge erred seriously and misdirected himself in having made Judgment
or Order that violates the doctrine of
functus officio, upheld the
matter Retail Motor Industry Organisation and Another v Minister of
Water and Environmental Affairs
and Another
2014 (3) SA 251
(SCA) par
[23] namely: once a judge has articulated his judgment, he
immediately ceases to be the Judge in that he has discharged
his
functions and duties in respect of the matter once a final decision
has been made. The same honourable Judge has no capacity
to correct
the Judgment and/or Order made, in that the honourable Court has
discharged its duty once and for all.
13. The honourable
Court erred seriously in having overlooked that the impugned
Judgment/Order violates the settled principle regarding
what the
functions of pleadings are, as stated in Halsbury's Laws of England
4th ed (Reissue) vol 36(1) para 5. Quoted in Cilliers
et al Herbstein
& Van Winsen: The Civil Practice of the High Courts of South
Africa Vol 1 at p 558 namely:
"to give fair
notice of the case which has to be met and to define the issues on
which the court will have to adjudicate in
order to determine the
matters in dispute between the parties... It follows that the
pleadings enable the parties to decide in
advance of the trial what
evidence will be needed. From the pleadings the appropriate method of
trial can be determined. They also
form a record which will be
available if the issues are sought to be litigated again. The matters
in issue are determined by the
state of pleadings at the close if
they are not subsequently amended.”
14. The honourable
Court erred seriously in having made judgment that is contrary to the
principle in Buchner and Another v Johannesburg
Consolidated
Investment Co Ltd
1995 (1) SA 215
(T) at 216l-J which is to the
effect that:
"The necessity to
plead material facts does not have its origin in this Rule. It is
fundamental to the judicial process that
the facts have to be
established. The Court, on the established facts, then applies the
rules of law and draws conclusions as regards
the rights and
obligations of the parties and gives judgment. A summons which
propounds the plaintiff's own conclusions and opinions
instead of the
material facts is defective. Such a summons does not set out a cause
of action. It would be wrong if a Court were
to endorse a plaintiff's
opinion by elevating it to a judgment without first scrutinising the
facts upon which the opinion is based.".
15. The honourable
Court erred seriously in having misdirected itself in having failed
to interpret the contractual terms in respect
of forfeiture clause,
in a manner consistent with constitutional values of fairness,
reasonableness and justice. Had the Honourable
court not have
misconceived its duties the honourable Court ought to have Ordered
the Applicants to refund the First Respondent
R3000 000 upon
cancellation in that the applicant have not discharged the onus on
balance of probability that the penalty is proportionate
to the
prejudice. To the refer the matter to oral evidence is to without
justification give the applicants a second bite at the
cherry.
16. The honourable
Court misconceived its duties in having failed to order the
applicants to refund the first Respondent the sum
of R3 000 000 and
incidental relief, consistent with the binding precedents in the
following matters:
4.1.
Beadica 231 CC and Others v Trustees for the time being of the Oregon
Trust and Others
2020 (5) SA 247
(CC) at
para
[35] and [72] Theron J
.
4.2 Barkhuizen v
Napier
[2007] ZACC 5
;
2007 (5) SA 323
(CC) at 334 per S Ngcobo J.
4.3 Botha v Rich
2014
(4) SA 124
(CC) by Honourable Justice Nkabinde J.
4.4
Stopforth Swanepoel & Brewis Incorporated v Royal Anthem
Investments 129 (Pty) Ltd and Others
(2015 (2) SA
539
(CC)
.
4.5 Sheriff of the
Court, Pretoria East v Blessguy Enterprise (Pty) Ltd and Another
(38529/2020) [2023] ZAGPPHC 1785 (6 October
2023) per Manamela AJ.
The Honourable Court
in having failed to make an Order that the Applicants shall refund
the First Respondent seriously misconceived
its duties. The prospect
of the Appeal Court doing the reasonable and fair and just order to
the effect that the applicants shall
refund the sum of R3 000 000 to
the first respondent and the respondent are liable to pay interests
at prime rate from the date
of the application was instituted.
IN THE PREMISES it is
submitted that the appeal would have a reasonable prospects of
success before the full bench taking regard
of the grounds that the
First and Second Respondents averred hereinabove.
WHEREFORE the first
and second Applicants herein prays for an Order granting the
Applicants herein leave to appeal to the full court
as the court
deems meet and that costs be in the appeal.’
6.
The Respondent produced comprehensive heads of
argument which was uploaded onto CaseLines during the course of the
morning before
the hearing of the application for leave to appeal.
The applicant did not receive advance warning that the respondents
intended
to file heads of argument. It is not customary to file
further heads of argument in applications for leave to appeal.
For
these reasons the applicant did not file heads of argument.
Nothing precludes a party from filing further heads of argument. I
specifically asked the applicant’s counsel whether he required
an opportunity to file heads of argument. I mentioned that
I was
prepared to stand the matter down for argument until Monday 26 May
2025. The applicant’s counsel assured me that he
had an
opportunity to read the respondents’ head of argument and that
he is ready to proceed. Argument then ensued.
7.
The respondents made a generalised statement that
I presided ‘…
in the manner
that violates the First and Second Respondents’ constitutional
right to fairness seriously in having presided
in the manner that
violates the First and Second Respondents’ constitutional right
to fairness provisioned by section 34
read with section 165 (2) of
the Constitution Act 108 of in that the honourable Judge did not
apply the law impartially and without
favour or prejudice as may
inferred from the grounds whereupon leave to appeal is sought.’
8.
The aforementioned point drowned when the fairness
to the parties of the directive to refer the issue of proportionality
dawned
upon the respondent’s counsel during argument - that the
issue of proportionality of the penalty was referred to oral evidence
mero motu
to
afford an opportunity to both parties to ventilate the issue fully
and fairly. The issue of proportionality could not be fairly
decided
on affidavit. That was in my view the most fair, logical and
practical way to deal with proportionality of the penalty.
It would
in my view serve the interests of the parties and the interests of
justice. It will ensure an expeditious resolution of
the issue. It is
in any event illogical to subject a referral of an an issue which has
not been decided to the aforementioned description.
An issue which
has not been adjudicated upon by the court cannot, per definition,
fall within the confines of the respondents’
aforementioned
generalised statement.
9.
The
respondents alleges in 2.1 of the application for leave to appeal
that
‘
the
Applicants did not prayed for the in the paragraph stated
.’
(
quoted
verbatim
)
I disagree that it was not competent to grant orders [1] ; [2] ; [3]
and [4] in favour of the applicants. The applicants specifically
pray
for an order and made out a proper case that the agreement was
cancelled. The respondents claim in the ‘counterclaim’
which appears at the end of the answering affidavit that the
agreement is
void
and
the respondents specifically attacked proportionality in their
‘counterclaim’. The issues relating to the first
three
orders are issues between the parties on the papers. The fourth order
relates to the protection of the remaining balance
of the
Deposit
in
the
interim
.
It was necessary to protect the funds pending the outcome of the
application to maintain the status quo and prevent undue prejudice.
It is in the interests of justice to do so. The directive that oral
evidence be heard was the most efficacious manner of dealing
with the
issues. The finding that the parties concluded a valid and binding
agreement is a necessary correlation of the finding
that the
agreement had been cancelled.
10.
There is no merit in the respondents’
contention that the principles enunciated in the
Buchner
case
has been floated or that the agreement was interpreted in a manner
that is not consistent with the Constitution. Clause 1 of
the
addendum is clear. It states clearly under what circumstances the
applicants would be entitled to the deposit and the circumstances
under which the respondents would be entitled to the repayment of the
deposit. As more fully set out below the respondents conceded
that
the agreement had been validly cancelled if the agreement is upheld.
The respondents main argument on the merits became that
the agreement
is void for failure to attach the resolution to the agreement.
The respondents also argued strongly that the
court erred by failing
to preclude the resolution on the basis that it was attached to the
replying affidavit.
11.
There is no merit in the respondents contention
that the applicants had to invoke Rule 30 proceedings to set aside
its counterclaim.
The applicants did not do so and it was not
necessary to do so. The respondents counterclaim is by and large a
request for the
dismissal of the claim and it claims relief based on
the facts set out in the answering affidavit. My comments regarding
the unusual
nature of the ‘counterclaim’ does not mean
that the court did not deal with the relief sought therein in the
judgement
and the order granted. Accordingly, the manner in which the
‘counterclaim’ was presented did not affect the court’s
findings. Furthermore, the manner in which the counterclaim was
presented and the courts comments in relation thereto does not
entail
a decision in relation to the merits of the matter and is not,
accordingly appealable. The court in fact took cognisance
of the
counterclaim.
12.
I posed a hypothetical question to the
respondent’s counsel. I asked whether the respondents persist
with its argument that
the agreement was not validly cancelled if the
agreement is indeed valid. The respondent’s counsel conceded
that the agreement
was validly cancelled if the agreement is upheld.
I agree with the applicants’ contention that the respondents’
aforementioned
concession ‘seals its fate’.
13.
I am unpersuaded that the agreement is void for
non-compliance with the prescribed formalities of the Alienation of
Lands Act, 68
of 1981. The respondents counsel argued that the
agreement is void because the resolution is not attached to the
agreement.
14.
The respondents counsel argued that public policy
demands certainty and that this can only be achieved by an attachment
of the resolution
to the agreement. The respondents’ counsel
further argued that the failure to attach the resolution to the
agreement at the
time of the conclusion thereof is fatal and that
such failure renders the agreement void. I quote para 7.4. of the
respondents
heads of argument again for the sake of convenience.
Paragraph 7.4 reads, as follows: ‘
7.4.
Thorpe and Others v Trittenwein and Another
2007 (2) SA 172
SCA at
para [8] and [9]: where the trustee contracted for the Trust the
capacity in which the Trustee acted must appear from the
face of
contract, to be complying with the terms of Trust Deeds otherwise the
contract is invalid.’
The
respondents incorrectly paraphrased para [45] of Thorpe and others v
Trittenwein
2007 (2) SA 172
SCA , as follows: ‘
It
is public policy that the written authority which trustees or agent
who relies on resolution by trustees in terms deeds of trust
ought to
attach the authorization to the deeds of sale for the deeds of sale
to be valid.’
15. The
respondents’ counsel specifically referred me to the first
sentence of paragraph [15] of the Thorpe case in
support of the
ground for leave to appeal in paragraph 7.4 of the application for
leave to appeal. I quote both paragraphs [15]
and [16] of the Thorpe
case:
‘
[15] As
previously indicated, the very object of s 2(1) of the Act is, on
grounds of public policy, to facilitate that proof by
requiring the
authority to be in writing and so avoid needless litigation. Whether
one regards Thorpe as having acted as a functionary
of the trust and
in that sense a principal or as both a principal (as co-trustee) and
agent of the other co-trustees, the result
in my view must be the
same. Given the object of the section, it must be construed, I think,
as being applicable on either basis.
In other words, the reference in
the section to ‘agents’ must be understood as including a
trustee who may in a sense
be said to sign as a principal (ie as the
trust) but whose power to bind the trust is nonetheless dependent
upon the authority
of the co-trustees. To do otherwise would be to
thwart the clear object of the section. It follows that in my view
the agreement
of sale (as supplemented by the addenda) is void ab
initio and of no force and effect. (emphasis provided)
[16] The appellants in replying
affidavits sought to rely in the alternative on a subsequent written
ratification of Thorpe’s
conduct in entering into the
agreement. In this court counsel abandoned the point. The concession
was well made. Ratification relates
back to the original transaction.
There can be no ratification of a contract which is void ab initio.
See Wilken v Kohler
1913 AD 135
at 143.’ (emphasis provided)
16.
The Thorpe case provides no such authority. I
specifically asked both counsel for authority that supports the
respondents’
contention. None was provided. The other cases
referred to by the respondents in the application for leave to
appeal do not
provide authority for the respondents aforementioned
contention.
17.
Paragraph 16 of the Thorpe case shows why the
facts of that case is entirely distinguishable from the facts of this
case. It is
an unassailable fact that the resolution in this case was
executed prior to the conclusion of the agreement. It follows that
the
legal principles enunciated in the Thorpe case relating to
voidness is not applicable to this case. The respondents ignored that
the facts of the Thorpe case is distinguishable from the facts of
this case. The respondents’ failure to recognise the
distinguishing
nature of the facts of the Thorpe resulted in the
respondents’ attempt to apply the
dictum
relating to voidness enunciated in the
Thorpe case to the facts of this case. This is a typical example of a
party referring to
and relying upon case law in a vacuum. Case law
can only be applied to the facts.
18. The respondents placed
specific reliance upon paragraphs [8] and [9] of the Thorpe case in
its application for leave to
appeal. I also quote paragraphs [8] and
[9’] of the Thorpe case infra.
‘
[8] Section
2(1) of the Act reads – ’No alienation of land after the
commencement of this section shall, subject to
the provisions of
section 28, be of any force or effect unless it is contained in a
deed of alienation signed by the parties thereto
or by their agents
acting on their written authority.’ The object of this
provision, as in the case of its predecessors,
is undoubtedly to put
the proof of such an ‘alienation’ of land beyond doubt
and thereby in the public interest to
avoid unnecessary litigation.
See eg Philmatt (Pty) Ltd v Mosselbank Developments CC
1996 (2) SA 15
(A) at 25B-D and authorities there cited. The need for the authority
of an agent to be in writing is no less necessary to achieve
this
object than the need for the deed to be in writing.
[9] As observed by Cameron JA in Land
and Agricultural Bank of SA v Parker and others
2005 (2) SA 77
(SCA)
para 10 at 83H a trust is ‘an accumulation of assets and
liabilities’. Although forming a separate entity that
entity,
like a deceased estate, is not a legal persona. The assets and
liabilities constituting the trust vest in the trustees
and it is
they who must administer them. They are therefore not the agents of
the trust, nor for that matter of the beneficiaries
(Hoosen and
others NNO v Deedat and others
1999 (4) SA 425
(SCA) para 21). It is
moreover trite that unless the trust deed provides otherwise,
trustees must act jointly. In the absence of
a contrary provision in
the deed they may, however, authorize someone to act on their behalf
and that person may be one of the
trustees. (See Nieuwoudt and
another NNO v Vrystaat Mielies (Edms) Bpk
2004 (3) SA 486
(SCA) paras
16 and 23.)’
19.
Neither of the aforementioned paragraphs lend any
support to the respondents voidness argument. Section 2(1) of the Act
does not
contain a requirement that a resolution authorising a party
to sign an agreement involving the sale of land/an immovable property
on behalf of a legal persona/legal entity or a trust.
20.
The respondents argued that the court erred by
finding compliance with section 2(1) of the Alienation of Lands Act.
The respondent’s
counsel contended that the
court
‘’
failed to act judiciously in having
failed to applied the parol evidence rule or integration rule…’
and referred to
Johnston v Leal 1980 (3)
1980 (3) SA 927
(AD), per
Justice Corbett JA, at 943B-C
and
at 943F and a
t 943B-C
.
21.
The crips issue is whether reliance upon the
resolution to establish authority - which was not attached to the
agreement - is precluded
by the integration rule. In other words,
does it amount to an attempt to add or modify the agreement
integrated into a single complete
memorial of the parties’
agreement or would the resolution ‘redefine’ the terms of
the agreement?
22.
I disagree with the respondents contention that
there is an obligation to attach the resolution to the agreement at
the time of
the conclusion thereof or at all. For the reasons set out
in this judgement I equally disagree with the respondents’
contention
during argument in reply that the resolution ‘brings
life to a dead contract’ and that it is ‘an addition’
precluded by the parol evidence rule.
23.
The
respondents referred to
Director
of
Hospital Services v Mistry,
[1]
per Diemont JA
,
for the trite principle that an ‘
applicant
stands or fall by his petition and the facts therein alleged
.’
and argued that the applicant had to make out its case in the
founding affidavit. The respondents further argued that it
was
‘insufficient’ to attach the resolution to the founding
affidavit.
24.
Although it may be preferable that resolutions
relating to authority be attached to the founding papers I see no
reason why resolutions
cannot be attached to a replying affidavit,
especially in these circumstances where the respondents never
complained about authority
when they paid a deposit in the amount of
R3 000 000 (three million rand) and concluded an addendum to the
agreement. Nor did they
raise authority as a defence in the
correspondence exchanged between the parties prior to the filing of
the answering affidavit.
The applicant in turn alleged in the
founding affidavit that it concluded the agreement and validly
cancelled the agreement. It
could not in my view have been expected
of the applicants to foresee that authority would be raised as an
issue by the respondents.
In such circumstances a party should be
permitted to attach a resolution to its replying affidavit.
25.
I disagree with the respondents proposition that
the resolution constitutes ‘…
new
grounds for the application…
’
The
court does not, by allowing the resolution, act contrary to the
aforementioned trite principle that a party must make out its
case in
its founding affidavit, nor did the court allow the inclusion of new
grounds in the replying affidavit, as envisaged. The
founding
affidavit contains the grounds for cancellation and established the
cancellation of the agreement, as well as facts to
demonstrate a
degree of prejudice. The full amount of the deposit is claimed by the
applicants. Clause 1 of the addendum constitutes
a penalty in terms
of the Conventional Penalties Act, 15 of 1962, and the respondents
raise disproportionality in its ‘counterclaim’.
The issue
has been properly raised.
26.
I am of the view that it is implied in the
applicants’ allegation that an agreement had been concluded
that the signatory
was authorised to represent the trust. The fact
that the applicants claim the full deposit brings the Conventional
Penalties Act,
15 of 1962, into play, and with it, the issue of
proportionality. The respondents in any event squarely raised
proportionality
in its ‘counterclaim’. Reference to the
resolution does not violate the parol evidence rule and it does not
change
the ambit of the agreement. The resolution does not amount to
extrinsic evidence of how the agreement should be interpreted. The
resolution merely provides proof of or clarifies the applicant’s
authority when it was challenged. I, accordingly, disagree
with the
respondents that the court ‘…
ought
to have followed and applied the said principle
.’
27.
It is important to note that the respondents did
not raise that the resolution had been produced subsequent to the
conclusion of
the agreement or that fraud is at play. Furthermore,
during argument, the respondents counsel conceded that Mr Read is
empowered
by the resolution to sign the agreement and the addendum
thereto if viewed in isolation - excluding the point taken by the
respondents
that the resolution had to be attached to the agreement
to breath life into the agreement.
28.
The resolution was clearly signed by the 2 (two)
trustees for the time being of the seller trust. It also constitutes
common cause
that the seller trust deed requires 2 (two) trustees to
act jointly and that the 2 (two) trustees who signed the resolution
are
the trustees for the time being of the seller trust. Mr Read, who
signed the agreement and the addendum on behalf of the seller
trust,
was specifically authorised to do so on behalf of the seller trust in
terms of the resolution.
29.
The respondent’s counsel confirmed that it
is not contended that the resolution was been produced after the
conclusion of
the agreement. It has not been raised either. If there
was any notion of fraud the respondents would no doubt have
applied
for leave to raise it in a duplication. The respondents were
not in my view prejudiced in the least by the attachment of the
resolution
to the replying affidavit. Allowing the resolution ensured
that the issue of authority, which was raised belatedly, be
canvassed.
Any other procedural approach would have resulted in
incurable prejudice to the applicant.
30.
The respondents’ counsel presented a further
paraphrased version of the law that restitution must take place in
full upon
cancellation of an agreement irrespective of whether or not
a breach of contract occurred by a guilty party resulting in
cancellation
of the agreement by an innocent party. The respondent’s
counsel suggested that this applies in every instance irrespective
of
whether or not the innocent party suffered damages as a result of the
breach or whether the agreement contains a penalty clause.
I refrain
from describing the level of my surprise with the aforementioned
proposition.
31.
I made sure that I understood the respondents’
argument and requested the respondent’s counsel to refer me to
the relevant
parts in his heads of argument and the case law relied
upon. I am at pains to deal with the argument and misguided
paraphrasing
of authoritative case law. Unsurprisingly, the
paraphrased version of the case law referred to by the respondent’s
counsel does not support any of his contentions. The inverse is true.
I quote the following from the respondents’ heads of
argument.
’
28.
The honourable court cited the relevant and binding principle
regarding what should follow when the contract cancelled, set
out in
Botha v Rich NO and Another
2014 (4) SA 124
(CC) but honourable court
misconceived or misinterpreted the application of principle set out
at para [50] read with [51] of the
judgment and the comparable
factual circumstances, and argument that was made and is made in this
matter when the court ought not
to have misconceived the principle.
Paragraph 50 of the judgment under the Cancellation reads: It is
another manifestation of the
principle of reciprocity that where a
contract has been lawfully cancelled, mutual obligations arise to
restore the respective
performances. Relying on the forfeiture clause
in the agreement, (footnote 71 of the judgment) the Trust made no
tender of repayment
of what it had received. Ms Botha argued that the
forfeiture clause is unfair and unconstitutional, alternatively that
it is a
disproportionate penalty that falls to be equitably reduced
in terms of the Conventional Penalties Act (footnote 72 of the
judgment)
(CPA)
.
Paragraph 51 of the
judgment under the Cancellation reads: For the same reasons mentioned
above, granting cancellation - and therefore,
in this case,
forfeiture - in circumstances where three-quarters of the purchase
price has already been paid would be a disproportionate
penalty for
the breach. In their application for cancellation the Trustees did
not properly address the disproportionate burden
their claim for
relief would have on Ms Botha. They took the view that the question
of forfeiture and restitution was independent
of, and logically
anterior to, the question of cancellation. That was a fundamental
error. The fairness of awarding cancellation
is self-evidently linked
to the consequences of doing so. The Trustees' stance therefore meant
that they could not justify this
Court's awarding the relief they
sought. In view of the above the cancellation application must fail.
29. The failure on the
part of the honourable Court to follow the principle in para [50]
read with para [51] indicates that the
honourable court misconceiving
its duties, in having failed to give judgment based on evidence and
binding principles aforesaid.’
32.
During argument the respondents’ counsel
initially referred me to paragraph [50] of the Botha Judgement in
support of his
aforementioned argument. I then asked the respondents
counsel to read paragraph [51] of the Botha judgement quoted in the
respondents’
heads of argument which is in itself (apart from
many other decisions) destructive of the aforementioned misguided
argument.
33.
The findings in paragraph [51] of the Botha case
do not in any manner or form support the respondents argument that
restitution
must occur irrespective of whether or not an innocent
party validly cancelled an agreement consequent upon a breach of a
material
provision by a guilty party.
34.
The respondents’ aforementioned argument
goes against the grain of the entrenched principles of the law of
contract relating
to cancellation, breach and damages.
35.
The respondent’s counsel furthermore used
the word ‘distancing’ in his argument with reference to
proportionality.
I clarified what was meant by the use of the word
‘distancing’. It became apparent that the respondent
contended that
the applicant did not rely upon rauwkoop and that the
issue of proportionality is not an issue before the court on the
facts presented
by the parties. I referred the respondents’
counsel to clause 1.1 of the addendum which clearly contains a
rauwkoop clause
and paragraph 6 of the ‘counterclaim’
wherein the respondent expressly raised proportionality. I mention
this because
it was argued by the respondents’ counsel that the
applicant was ‘distancing’ it self from proportionality.
I
extracted that the respondent wished to convey that the applicant
did not rely on proportionality despite that both the applicants
and
the respondents claimed entitlement to the full amount of the
deposit.
36.
The respondents contended that the court descended
into the arena and that my remarks regarding the non-compliance of
the counterclaim
‘counterclaim’ amounts to an error which
somehow - it was not stated how - affected the outcome. Despite the
fact that
the so called ‘counterclaim’ was procedurally
defective I nevertheless dealt with each issue raised therein. I took
counsel for the respondents through every single paragraph of the
counterclaim and pointed out how I have dealt therewith. Accordingly,
nothing turns on my comments regarding the procedurally defective
counterclaim.
37.
The counterclaim provides, as follows:
‘
WHEREFORE
the first respondent Counter claim for an order:
1) Striking the
application from the roll, with cost at the scale between attorney
and client.
2) Alternatively to
prayer 1 above, dismissing the applicant's case with costs at the
scale between attorney and client.
3) Further
alternatively granting judgment for the first respondent in the
following terms:
3.1) Declaring that
what purport to be a valid and binding contract of immovable property
be declared invalid
3.2) Declaring that
what purport to be a valid and binding contract of immovable property
be declared unenforceable
4)
Further, alternatively in the event the court finding that the sale
contract is valid and enforceable then Declaring that the
applicant
first breached the contract and the basis of common law principle of
exceptio non adimpleti contractus
5) Declaring the
contract be cancelled in that the applicant having refused to allow
the first respondent to occupy the property
as a tenant despite
having paid deposit and having demand occupation
6)
Declaring
that the forfeiture claimed by the applicant is out of proportion to
the prejudice suffer by the respondent if any and
that it is in the
interest of justice that the penalty be reduced to zero
7)
Declaring
the contract be cancelled in terms of section 28(1) of the alienation
of land act;
8)
That
the third respondent be ordered to refund the first respondent the R3
000 00.00 (Three Million Rand) plus interest;
9)
That
that the sale agreement be cancelled;
10)
The
applicant be ordered to pay the costs of this application at
the
scale between attorney and client.’
38.
I reiterate that the agreement was not subject to
any conditions and that the respondents refused to pay the balance of
the purchase
price based on an untenable right to premature
occupation - prior to registration of transfer. Clause 10 of the
agreement clearly
provides for occupation upon registration of
transfer. The respondents failed to apply for rectification of the
agreement or the
addendum. The respondents are, accordingly, bound by
the 4 (four) corners of the agreement and addendum, and had to comply
therewith.
The fact that the respondents failed to comply with its
obligation to pay the balance of the purchase consideration and
cancellation
of the agreement (if not void) constitute common cause,
as set out
supra
.
39.
Clause 10 of the agreement deals with occupation
and provides that: ’
10. Provided
that the Purchaser has performed all his / her / its contractual
obligations arising here from, including but not limited
to, the
payment of all transfer costs, payment of bond costs, signature of
transfer and bond documentation (if applicable) and
payment of the
occupational rental as provided herein: -‘
40.
Paragraph 10.1. of the agreement provides as
follows: ‘
Vacant occupation of the
Property shall be given and taken on registration ("the
Occupation Date") from which date, should
it precede Transfer,
all revenue accruing from and expenditure in respect of the Property
(excluding rates, levies, insurance premiums)
shall be for the
account of the Purchaser, on a pro-rata basis.’
The
remaining sub-paragraphs of clause 1 are irrelevant.
41.
Clause 1 of the addendum is clearly a typical
rauwkoop clause. Clause 1. of the addendum provides as follows:
‘
1.
The Purchaser and Seller hereby agree.-
1.
1.1. Should the Agreement become
cancelled due the breach of the Purchaser the Purchaser will forfeit
al monies paid in respect
of the purchase price to the Seller upon
the date of cancellation of the Agreement, together with any interest
earned thereon to
that date. The Seller will have the right to
proceed against the Purchaser for any damage suffered due to such
cancellation of
the Agreement,
2.
1.2 Should the Agreement become cancelled due
the breach of the Seller, the Purchaser wi be refunded all monies
paid in respect
of the purchase price upon the date of cancellation
of The Agreement and wii have the right to proceed against The Seller
for any
damage suffered due to such cancellation of the Agreement.
’
42.
The fact that I made findings in the matter and
referred a specific aspect of the case to me for determination for
the hearing of
oral evidence was challenged by the respondents. There
is nothing preventing me from doing so. I consider it to be in the
interests
of the parties and that the interests of justice would be
served, as more fully set out
supra.
I am of the view that I have exercised my
discretion judicially, and it is extremely unlikely that an other
court will interfere
with the exercise of my discretion to hear oral
evidence on the issue of proportionality.
43.
I am furthermore of the view that my
aforementioned decision is not appealable. I refer to the case of
International Trade Administration
Commission v SCAW South Africa
(Pty) Ltd where the Constitutional Court held that;
"In
this sense, the jurisprudence of the Supreme Court of Appeal on
whether a "judgment or order" is appealable remains
an
important consideration in assessing where the interests of justice
lie. An authoritative restatement of the jurisprudence is
to be found
in Zweni v Minister of Law and Order which has laid down that
the
decision must be final in effect and not open to alteration by the
court of first instance; it must be definitive of the rights
of the
parties; and lastly, it must have the effect of disposing of at least
a substantial portion of the relief claimed in the
main proceedings
.
On these general principles the Supreme Court of Appeal has often
held that the grant of an interim interdict is not susceptible
to an
appeal. The "policy considerations" that underlie these
principles are self-evident. Courts are loath to encourage
wasteful
use of judicial resources and of legal costs by allowing appeals
against interim orders that have no final effect and
that are
susceptible to reconsideration by a court a quo when final relief is
determined. Also allowing appeals at an interlocutory
stage would
lead to piecemeal adjudication and delay the final determination of
disputes.
"
(
emphasis
provided)
44.
I
further refer to the case of
Wallach
v Lew Geffen Estates CC
[2]
where
it was held that:
"It
is plain that the order referring the matter for the hearing of oral
evidence was an interlocutory order and that it was
a simple
interlocutory order of the kind referred to in Pretoria Garrison
Institutes v Danish Variety Products (Pty) Ltd 1948(1)
SA 839 (A) at
870A. Furthermore this is not a case where '... the decision relates
to a question of law or fact, which if decided
in a particular way
would be decisive of the case as a whole or of a substantial portion
of the relief claimed ...as in Van Streepen
and Germs (Pty) Ltd v
Transvaal Provincial Administration 1987(4) 569 (A) at 585 F-G. The
'order' given by Coetzee J did not decide
the merits. It was merely a
direction that further evidence be given before deciding on the
merits. It was no more than a ruling.
This is clear from a long line
of cases decided in this Court and in the provincial divisions.”
45.
Rule 6(5)(g) provides, as follows:
‘
Where
an application cannot properly be decided on affidavit the court may
dismiss the application or make such order as it deems
fit with a
view to ensuring a just and expeditious decision. In particular, but
without affecting the generality of the aforegoing,
it may direct
that oral evidence be heard on specified issues with a view to
resolving any dispute of fact and to that end may
order any deponent
to appear personally or grant leave for such deponent or any other
person to be subpoenaed to appear and be
examined and cross-examined
as a witness or it may refer the matter to trial with appropriate
directions as to pleadings or definition
of issues, or otherwise
46.
Rule
6(5)(g) provides a discretion to the court to direct that oral
evidence be heard ‘to ensuring a just and expeditious
decision.' Rule 6(5)(g) does not contain a requirement that a party
must apply that oral evidence be heard. The issue of proportionality
could not in my view be decided on affidavit without the hearing of
oral evidence. The applicant placed some evidence before the
court
and the respondents failed to produce any evidence to enable the
court to decide the issue on affidavit. The referral placed
both
parties on an equal footing. The Conventional Penalties Act, 15 of
1962, evidently applies to this case and clause 1 of the
Addendum is
clearly a penalty clause, as envisaged. It is in the interests of the
parties and the interests of justice that the
issue whether or not
the penalty is disproportionate be considered and be decided as soon
as possible. The Conventional Penalties
Act, 15 of 1962, entitles the
court to examine the proportionality of the penalty. The court is,
accordingly, entitled to determine
whether a loss was suffered and
the reasonableness thereof, and the penalty, if any, to be applied.
Oral
evidence is evidently required to decide is whether the penalty (the
full deposit) claimed by the applicant should be reduced
in terms of
section 3 of the Conventional Penalties Act, and if so, to what
extent. In other words, it must be determined whether
the penalty is
out of proportion considering that the court has the power to reduce
a penalty. In this case the respondents contend
that the applicant
did not suffer any prejudice and claims in its ‘counterclaim’
that the full deposit must be repaid
to it.
47.
I refer to
Section 1(A)
and
Section 3 of the Convention Penalties Act 15 of 1962.
Section
Section 1(A)
provides as follows:
"A
Stipulation, hereinafter referred to as a penalty stipulation,
whereby it is provided that any person shall, in respect
of an act or
omission in conflict with a contractual obligation, be liable to pay
a sum of money or to deliver or perform anything
for the benefit of
any other person, hereinafter referred to as a creditor, either by
way of a penalty or as liquidated damages,
shall subject to the
provisions of this Act, be capable of being enforced in any competent
court
”
.
That
is what the applicant did by claiming the deposit.
Section
3 of the Convention Penalties Act,15 of 1962, provides as follows:
"if upon the hearing of a claim for
a penalty, it appears to the court that such penalty is out of
proportion to the prejudice
suffered by the creditor by reason of the
act or omission in respect of which the penalty was stipulated the
court may reduce the
penalty to such extent as it may consider
equitable in the circumstances: provided that in determining the
extent of such prejudice
the court shall take into consideration not
only the creditor's proprietary interest, but every other rightful
interest which may
be affected by the act or omission in
question
”
.
48.
It has been held in National Sorghum Breweries
(Pty) Limited t/a Vivo Africa Breweries v International Liquor
Distributors (Pty)
Limited (72/99)
[2000] ZASCA 70
;
2001 (2) SA 232
(SCA);
[2001] 1 All SA 417
(A) (28 November 2000) at [9] that: ‘
It
follows that although a claim for forfeiture arises ex contractu, its
essence and function is to compensate the creditor for
prejudice
(including damage) suffered by it.’
49.
The procedural issues to ensure fairness going
forward will be dealt with during case management. It cannot in my
view be expected
of a Judge to apply that a matter be case managed.
In my view the Directive relates to parties who require case
management. Case
management is this matter would in my view be useful
and keep the matter on the rails to ensure the speedy resolution of
the issue
of proportionality. Case management is aimed at ensuring
that the outstanding issue of proportionality be properly ventilated.
50.
It
has been held in Pfizer Inc v South African Druggists Ltd that:
"...
The
Rule 6(5)(g) application was purely interlocutory, and the order
given is no more than a ruling. It is true that the order is
specific
and contains elements of finality. It is, however, no less
interlocutory than many other orders of a like nature which
are
frequently granted by our Courts and by the Court of the Commissioner
of Patents in the course of a hearing and which have
been held to be
no more than rulings and consequently to be unappealable, such as for
instance an order directing a litigant to
supply further particulars
(of Pretoria Garrison Institutes v Danish Variety Products (Pty) Ltd
1948 (1) SA 839
(A)); a temporary interdict (cf Frank & Hirsch
(Pty) Ltd v Rodi & Wienenberger Aktiengesellschaft
1958 (1) SA 1
(T) (1958 BP 399)); a commission de bene esse (of Bell v Bell
1908 TS
887
; or an order for security for costs (Zipotowski v Anglo American
Corporation of South Africa 1972 BP 374).’
51.
I
refer to
Mercury
Fittings CC v Doorware CC
[3]
in
which a passage in the Civil Practice of the High Courts of South
Africa was quoted with approval, as follows: "The question
whether or not the court may mero motu direct oral evidence to be
heard is one regarding which there was until fairly recently
scant
authority. That this is possible was laid down on appeal in both the
former Orange Free State and the former Transvaal. It
has, however,
been held that, for various reasons, it is a bold step for a
presiding judge in an opposed application to refer the
matter to
evidence or trial mero motu.’
52.
I
agree with the following finding in the Mercury case supra that:
‘
In
terms of rule 6(5)(g) of the Uniform Rules, a court has a wide
discretion with regard to referring matters to oral evidence where
application proceedings cannot be properly decided by way of
affidavit. In certain circumstances (and exceptional cases), the
court may decide that a matter should be referred to oral evidence
even where no application for such referral had been made.’
The
court in the Mercury case also referred to Pahad Shipping CC v
Commissioner, SARS
[2010] 2 All SA 246
(SCA) at para [20]; and also
Tryzone Fourteen (Pty) Ltd v Batchelor N.O and Others (3535/2013)
[2016] ZAECPEHC 9 (4 March 2016)
at para [38].
53.
The respondent’s point that the court is
functus officio
in
relation to the directive that oral evidence be heard is without
merit. The fact that the court is
functus
officio
in relation to its finding that
the agreement be upheld and that the agreement has been validly
cancelled cannot impact on the purely
interlocutory decision to
direct that oral evidence be heard.
54.
I have motivated my decision to grant costs on an
attorney and client scale in the Judgement. I stand by my decision.
It is not
necessary, as contended by the respondents that a party
must seek punitive costs before a court can, in the exercise of its
discretion,
order a party who’s conduct warrants the granting
of punitive costs to pay punitive costs. I am of the view that
another
court would not interfere with the exercise of my discretion
based on the facts of the case.
55.
My
decision to refer the issue of proportionality did not decide the
merits of proportionality. It is, accordingly, ‘
no
more than a ruling.’
My
decision may be described as bold. Upon reflection I would have made
the same order to ensure that the aforementioned specific
issue be
resolved in the most expeditious manner and to prevent that valuable
resources of an already heavily burdened bench be
saddled with the
issue.
56.
The court has a wide discretion in terms of rule
6(5)(g) of the Uniform Rules to refer matters to oral evidence in
instances where
an application cannot be properly decided by way of
affidavit without the hearing of oral evidence. This is such a case
which requires
oral evidence. As the applicant produced some evidence
on the issue and the respondents none the interests of justice
favours the
hearing of oral evidence.
57.
I find the founding affidavit contains the
necessary
facta probanda
for
an order that the agreement has been validly cancelled. I further
stand by my decision to uphold the agreement.
58.
The
application for leave to appeal is regulated by
Section 17(1)
of the
Superior Courts Act, 10 of 2013
which provides:
"(1) Leave to
appeal may only be given where the judge or judges concerned are of
the opinion that -
(a)
(i) the appeal would have a reasonable prospect
of success; or ii) there is some other compelling reason why the
appeal should be
heard, including conflicting judgments on the matter
under consideration;
(b)
the decision sought on appeal does not fall
within the ambit of
section 16(2)(a)
; and
(c)
where the decision sought to be appealed does
not dispose of all the issues in the case, the appeal would lead to a
just and prompt
resolution of the real issues between the parties."
59.
It was
held in the case of
Doorewaard
and Another v S
,
[4]
per
Hendricks DJP (as he then was), with reference to the general
principle for the granting leave to appeal that:
"
The
test to be applied is now higher than what it used to be. It is no
longer whether another court may (might) come to a different
decision
than what the trial court arrived at. It is now whether another
court, sitting as court of appeal, would come to a different
decision.”
60.
The cancellation of the agreement is no longer in
issue if the agreement is upheld. I am of the view that the court of
appeal would
not come to a different decision. Of particular
relevance is that the court would not in my view come to a decision
that the agreement
is void.
61.
Having considered the facts, the arguments
presented and the test provided for for leave to appeal I find that
the respondents have
no reasonable prospects of success that another
court will come to a different conclusion on any issue in the matter.
62.
The
respondents contended that costs should be costs in the appeal and
the applicant contended that the costs should follow the
result. The
court must exercise a judicial discretion.
[5]
In
doing so am of the view that the costs should follow the result.
63.
In
these circumstances `I
make
an order in the following terms:
1.
Leave to appeal to either the Full Court of
this division or the Gauteng North Division, Pretoria, or the Supreme
Court of Appeal
is refused.
2.
The respondents are ordered to pay the costs of
this application for leave to appeal on a party-and-party scale, and
counsels fees
shall on scale C.
DE WAAL K NIGRINI
ACTING JUDGE OF THE
HIGH COURT
GAUTENG DIVISION,
JOHANNESBURG
Attorney for the
Applicants: Macgillivray Pool Inc
Counsel on behalf of the
First to the Third Applicants: Adv Shawn Swiegers
Attorney for the
Respondents: Leandre Theys Attorneys
Counsel
for the 1st and 2nd Respondents:
TJ Magano
[1]
1979
(1) SA 626
(A-B) at 636A
[2]
1993
(3) SA 258 (AD).
[3]
(Case
No: 00014/2023) [2023] ZAGPJHC 366 (24 April 2023)
.
[4]
(908/2019)
[2020] ZASCA 155
;
[2021] 1 All SA 311
(SCA);
2021 (1) SACR 235
(SCA)
(27 November 2020).
[5]
Ferreira
v Levin NO and Others; Vreyenhoek and Others v Powell NO and Others
[1996] ZACC 27
;
1996 (2) SA 621
(CC); Motaung v Makubela and Another, NNO; Motaung v
Mothiba NO
1975 (1) SA 618
(O) at 631A.
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