Case Law[2025] ZAGPJHC 730South Africa
Amiss and Another v F E Industrial Supplies CC (002313/2024) [2025] ZAGPJHC 730 (21 July 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
21 July 2025
Headnotes
judgment. The issue is whether the defendant's plea contains sufficient facts to substantiate a bona fide defence.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Amiss and Another v F E Industrial Supplies CC (002313/2024) [2025] ZAGPJHC 730 (21 July 2025)
Amiss and Another v F E Industrial Supplies CC (002313/2024) [2025] ZAGPJHC 730 (21 July 2025)
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sino date 21 July 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
Number: 002313/2024
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO
In
the matter between:
BROUGHTON
CLINTON AMISS
N.O.
First Plaintiff
JULIEANN
AMISS
N.O.
Second Plaintiff
and
F E INDUSTRIAL
SUPPLIES CC
Defendant
JUDGMENT
Mahosi, J
[1]
This is an application for summary judgment. The issue is whether the
defendant's plea contains sufficient facts to substantiate a
bona fide
defence.
[2]
The first and second plaintiffs are trustees of the Amiss Family
Trust registered
in
accordance with the Trust Property Control Act
[1]
and trading as BAC Logistics. The defendant is a Close Corporation
registered and incorporated in terms of the Companies Act
[2]
of the Republic of South Africa.
[3]
Central to this matter is
a
written credit
agreement (“the Agreement”) dated 26 May 2023 in terms of
which BAC Logistics agreed to render logistics
services to the
defendant at its special instance and request. Following its
conclusion, on 06 October 2023 to 06 November 2023,
BAC Logistics
provided the defendant with logistics services to the total value of
R 749,135.00 (Seven Hundred Forty-Nine Thousand
One Hundred
Thirty-Five Rands) and $ 3,000.00 (Three Thousand United States
Dollars). Based on the defendant’s failure to
pay for the
services, the plaintiffs issued a summons against the defendant on 15
January 2024.
[4]
The matter was defended, and i
n its plea
,
the defendant denied being indebted to the plaintiffs for the amount
claimed in the particulars of claim, on the basis that the
latter
were in breach of the written Subcontractor's Agreement concluded
between the parties on 22 May 2023. In
particular,
it alleged that the plaintiffs breached clause 21 (“Restraint
of Trade clause”) by unlawfully approaching
and contracting to
do work directly with its customers in 2023 and clause 36.1 by
failing and refusing to engage with it, within
fourteen days, and to
negotiate in good faith to resolve the matter.
The defendant
claimed to have incurred damages and has instituted a counterclaim
against the plaintiffs for damages amounting to
R1,267,500.00 and
R5,290.00 in respect of an outstanding invoice for escorting and
tracking services.
[5]
Vexed by the defendant's defences, the plaintiffs filed this
application, asserting that their claim was based on a contract and
referring to the defendant’s denial as "bald and
unsubstantiated". They further averred that the defendant’s
counterclaim was contractually excluded by clause 27.1 of the
Agreement, which read:
“
Unless
otherwise specifically agreed in writing by the Creditor, the Debtor
shall pay all amounts due, without deduction or set
off, to the
Creditor immediately upon presentation of the invoice. It is agreed
that the payment shall not be withheld or deterred
on account of any
claims or counterclaims which the Debtor may allege.”
[6]
The defendant filed an affidavit resisting the summary judgment on
the basis that it was
ill-founded
because
the plaintiffs failed to
specifically deny the breach of the
subcontractor's Agreement
,
which entitled it to a counter-relief that could only be determined
at trial. It averred that the plaintiffs’ affidavit
fell short
of the requirements of Rule 32(2)(b) as it fails to explain why the
defence it pleaded does not raise a triable issue.
[7]
Rule 32 of the Uniform Rules of Court regulates the summary judgments
and it reads:
“
(1)
Where the defendant has delivered notice of intention to defend, the
plaintiff may apply to the Court for summary judgment on each
of such
claims in the summons as is only-
(a)
on a liquid document;
(b)
for a liquidated amount in money;
(c)
for delivery of specified movable property; or
(d)
for ejectment;
together with any claim
for interest and costs.
(2)
(a)
Within 15 days after the date of delivery of the plea, the plaintiff
shall deliver a notice of application for summary judgment,
together
with an affidavit made by the plaintiff or by any other person who
can swear positively to the facts.
(b)
The plaintiff shall, in the affidavit referred to in subrule (2)(a)
verify the cause of action and the amount, if any, claimed,
and
identify any point of law relied upon and the facts upon which the
plaintiff’s claim is based, and explain briefly why
the defence
as pleaded does not raise any issue for trial.
(c)
If the claim is founded on a liquid document a copy of the document
shall be annexed to such affidavit and the notice of application
for
summary judgment shall state that the application will be set down
for hearing on a stated day not being less than 15 days
from the date
of the delivery thereof.
(3)
The defendant may—
(a)
give security to the plaintiff to the satisfaction of the Court for
any judgment including costs which may be given; or
(b)
satisfy the Court by affidavit (which shall be delivered five days
before the day on which the application is to be heard), or
with the
leave of the Court by oral evidence of such defendant or of any other
person who can swear positively to the fact that
the defendant has a
bona fide
defence to the action; such affidavit or evidence
shall disclose fully the nature and grounds of the defence and the
material facts
relied upon therefor.”
[8]
The
summary judgment procedure is designed to enable plaintiffs with
clear cases to obtain prompt enforcement of their claims against
defendants who lack valid defences. This remedy is considered
extraordinary and drastic, as it effectively denies the defendant
the
opportunity to contest the claim. Courts emphasise that it is granted
based on the supposition that the plaintiff's case is
unimpeachable
and the defendant's defence appears to be flawed and without
merit.
[3]
[9]
In the case of
Raumix
Aggregates (Pty) Ltd v Richter Sand CC and Another
,
[4]
the Court emphasised that summary judgment applications aim to
quickly dismiss cases that lack a genuine triable issue, thereby
saving judicial resources and enhancing access to justice. When such
an application is made, the applicant has the right to a prompt
hearing of the application, which is protected under Section 34 of
the Constitution.
[10]
The Supreme Court of Appeal,
in
Cohen
NO and Others v Deans
,
[5]
clarified that the prospects of success for a defence do not matter.
If the defence is legally valid and can be proven during a
trial, a
summary judgment application will be unsuccessful.
[6]
The
key question is whether the defendant present facts that raise a
triable issue and a viable legal defence, thereby requiring
them to
disclose the nature and grounds of their defence fully. Thus, the
defendant need only provide facts that could support
a good defence
if proven at trial.
[7]
[11]
The plaintiffs submitted that the defendant’s counterclaim was
not a
bona
fide
defence, as it was excipiable and contractually excluded by clause
27.1 of the Agreement. It referred this Court to the judgment
in the
case of
Tesven
CC
and
Another
v
South
African
Bank
of
Athens
.
[8]
In that case, the Supreme Court of Appeal (SCA) clarified that, under
Rule 32(3)(b), the Court has the discretion to refuse summary
judgment, even if the defendant's opposing affidavit lacks exhaustive
material facts necessary for evaluating their bona fides.
The SCA
referred to a judgment in
Maharaj
v Barclays National Bank Ltd
,
[9]
in which Corbett JA referred to the 'extraordinary and drastic
nature' of the remedy of summary judgment and said the following:
“
(O)ne
of the ways in which a defendant may successfully oppose a claim for
summary judgment is by satisfying the Court by affidavit
that he has
a bona fide defence to the claim. Where the defence is based upon
facts, in the sense that material facts alleged by
the plaintiff in
his summons, or combined summons, are disputed or new facts are
alleged constituting a defence, the Court does
not attempt to decide
these issues or to determine whether or not there is a balance of
probabilities in favour of the one party
or the other. All that the
Court enquires into is: (a) whether the defendant has ''fully''
disclosed the nature and grounds of
his defence and the material
facts upon which it is founded, and (b) whether on the facts so
disclosed the defendant appears to
have, as to either the whole or
part of the claim, a defence which is both bona fide and good in law.
If satisfied on these matters
the Court must refuse summary judgment,
either wholly or in part, as the case may be. The word ''fully'', as
used in the context
of the Rule (and its predecessors), has been the
cause of some judicial controversy in the past. It connotes, in my
view, that,
while the defendant need not deal exhaustively with the
facts and the evidence relied upon to substantiate them, he must at
least
disclose his defence and the material facts upon which it is
based with sufficient particularity and completeness to enable the
Court to decide whether the affidavit discloses a
bona
fide
defence. (See, generally,
Herb
D Dyers (Pty) Ltd v Mohamed and Another
1965 (1) SA 31
(T);
Caltex
Oil (SA) Ltd v Webb and Another
1965 (2) SA 914
(N),
Arend
and Another v Astra Furnishers (Pty) Ltd
[1974 (1) SA 298
(C)] at 303 4;
Shepstone
v Shepstone
1974 (2) SA 462
(N).) At the same time the defendant is not expected
to formulate his opposition to the claim with the precision that
would be
required of a plea; nor does the Court examine it by
the standards of pleading. (See
Estate
Potgieter v Elliot
1948
(1) SA 1084
(C) at 1087;
Herb
Dyers
case supra at 32.)”
[10]
[12]
In the current matter, the plaintiffs submitted that the defendant's
plea contains no pleaded facts to substantiate a
bona fide
defence when considered in light of the admitted Agreement and its
specific terms. What is apparent is that the defendant denied
liability to the plaintiffs’ claim and instituted a
counterclaim for damages resulting from a breach of a restraint of
trade
clause as contained in the subcontractor's Agreement.
[13]
In its plea and counterclaim, the
defendant
claims that the plaintiffs breached clause 21 of the
subcontractor's
Agreement
by directly engaging with its
customers during 2023, resulting in damages of R1,267,500.00 and an
unpaid invoice for services totalling
R5,290.00. The plaintiffs
allegedly failed to meet with the defendants within a specified
timeframe to negotiate a resolution,
further complicating the issue.
The defendants sent a demand letter to the plaintiffs, requesting
that they rectify the breach,
which the plaintiffs failed to address.
In the affidavit resisting summary judgment, the defendant submitted
the date on which
the breach occurred, the customer with whom the
plaintiffs allegedly did business, and how it quantified its claimed
amount.
[14]
Although the defendant’s plea does not
exhaustively
address the facts and evidence relied upon to substantiate them, its
affidavit, when considered in
relation to the plaintiffs’ claim, appears to present a
legitimate defence. It has sufficiently
outlined the defence and the
key facts supporting it, meeting the requirements of Rule 32(3)(b).
The subcontractor's Agreement relied upon by the defendant is
allegedly the main contract governing the parties' business
relationship.
The plaintiffs signed it on 19 May 2023, and the
defendant signed it on 22 May 2023, which was before the conclusion
of the Agreement
relied upon by the plaintiffs.
[15]
To the extent that the plaintiffs do not deny the breach of the
restraint of trade clause and that it resulted in the
defendant
incurring financial loss, it follows that the latter fully disclosed
the nature and grounds of its defence, which is
both bona fide and
good in law.
Overall, both parties accuse each
other of breaching contractual obligations, leading to financial
claims.
The two agreements relied upon by both parties require
the Court’s interpretation to determine whether the parties are
liable
for damages against each other.
[16]
On the facts disclosed, the defendant’s defence that, it has a
counterclaim resulting from the subcontractor's
Agreement, which it
concluded with the plaintiffs, cannot be considered a sham defence or
mala fides. It is a reasonable defence
and valid in law. Therefore,
the summary judgment should be refused.
[17]
The general rule is that the costs should follow the result, being
the successful litigant. There is no reason to deviate
from this
general rule in the circumstances of this matter.
Order
[18]
Accordingly, the following order is made:
1. Summary judgment
is refused.
2. The defendant is
granted leave to defend the main action.
3. The plaintiffs
are to pay the defendant's costs of suit.
D.
Mahosi J
Acting
Judge of the High Court
Heard:
15 April 2025
Delivered:
This judgment was prepared and authorised by the Judge whose name is
reflected and is handed
down electronically by circulation to the
parties/their legal representatives through email and by uploading it
to the electronic
file of this matter on Caseline. The hand-down date
is deemed to be 21 July 2025.
APPEARANCES:
For
plaintiffs:
Advocate B.D. Stevens
Instructed
by: Jurgens Bekker
Attorneys
For
defendants: Advocate S.S. Cohen
Instructed
by: Larry Marks
Attorneys
[1]
Act 57 of 1988, as amended.
[2]
Act 71 of 2008.
[3]
See
Maharaj
v Barclays National Bank Ltd
1976 (1) SA 418 (A).
[4]
2020
(1) SA 623
(GJ), at [16].
[5]
[2023] ZASCA 56.
[6]
Id
at [29].
[7]
Id
at
[31].
[8]
[1999]
ZASCA 75; 2000 (1) SA 268 (SCA).
[9]
1976
(1) SA 418
(A) at 426A - G.
[10]
See
also
Breitenbach
v Fiat SA (Edms) Bpk
1976 (2) SA 226
(T) at 227G 228F.
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