Case Law[2025] ZAGPJHC 773South Africa
Calasca Trading 114 (Pty) Ltd and Another v Rhondo Industrial (Pty) Ltd and Another (026912/2022) [2025] ZAGPJHC 773 (13 August 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
13 August 2025
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Calasca Trading 114 (Pty) Ltd and Another v Rhondo Industrial (Pty) Ltd and Another (026912/2022) [2025] ZAGPJHC 773 (13 August 2025)
Calasca Trading 114 (Pty) Ltd and Another v Rhondo Industrial (Pty) Ltd and Another (026912/2022) [2025] ZAGPJHC 773 (13 August 2025)
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sino date 13 August 2025
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, JOHANNESBURG)
Case
no:
026912/2022
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED.
SIGNATURE
DATE: 13 August 2025
In the matter between:
CALASCA
TRADING 114 (PTY) LTD
First Plaintiff
GLEN
ALAN
FINE
Second Plaintiff
and
RONDO
INDUSTRIAL (PTY) LTD
First Defendant
MYRON
CYRIL BERGER
Second Defendant
##### JUDGMENT
JUDGMENT
WILSON
J:
1
The second plaintiff, Mr.
Glen Fine, is the sole director and shareholder of the first
plaintiff, Calasca. The second defendant,
Mr. Berger, was, until 30
November 2020, a director of Rondo Industro (Pty) Ltd, which is not a
party to these proceedings. Mr.
Glen Fine and Mr. Berger each
involved themselves and their companies in a joint venture to source
and supply personal protection
equipment to businesses in need of
such equipment for their employees, and to retailers for onward sale
to the general public.
2
Although Mr. Antonie, who appeared for the plaintiffs,
did not explicitly concede this, it was obvious by the end of the
trial that
the first defendant, Rondo Industrial, had been
erroneously joined to these proceedings in the mistaken understanding
that it was
involved in the joint venture. The reality, as all
parties now accept, is that Rondo Industro was a party to the joint
venture,
but that Rondo Industrial, which is the first defendant in
these proceedings, was not. As best as I can tell, the error is
explained
by the fact that Mr. Berger has had interests in both
companies, and their similar names led to the misjoinder of Rondo
Industrial.
3
This trial action concerns
the fate of money owed as a result of the sale of defective
thermometers to the joint venture, and the
onward sale of those
thermometers to Takealot, a well-known online retailer. In mid-2020,
after the end of what has become known
the “hard”
lockdown, transmission of the Covid-19 virus was prevented, in part,
by temperature screening at entrances
to retail outlets, places of
employment, and other venues where members of the public were likely
to gather. As a result, demand
for electronic thermometers spiked,
and the joint venture sought to capitalise on the opportunity to meet
this demand.
4
Accordingly, Rondo
Industro, acting on behalf of the joint venture, purchased a large
quantity of thermometers from a company known
as Cardona (Pty) Ltd,
which was controlled by a Mr. David Fine. The purchase price was in
the region of R5.6 million. Calasca,
also acting on behalf of the
joint venture, then sold the thermometers on to Takealot, for onward
sale to the general public on
Takealot’s website.
5
It turned out that the
thermometers were defective, because they did not meet the
requirements the South African Health Products
Regulatory Authority
prescribed for such devices. Takealot returned the thermometers and
demanded a refund from Calasca, which
Calasca paid in the form of
debits to its Takealot account. Calasca also refunded Rondo Industro
for the amount Rondo Industro
had paid to purchase the thermometers
from Cardona.
6
The joint venture then
sent the thermometers back to Cardona and sought to recover the
purchase price from Cardona. This was easier
said than done. Mr.
David Fine was in the process of emigrating. Cardona had ceased
trading and was an empty shell. If the money
was to be recovered,
then it would have to be recovered from Mr. David Fine, rather than
Cardona itself. Eventually, on 12 May
2022, Mr. David Swartz, Mr.
David Fine’s attorney, transferred R2 million into Mr. Berger’s
personal bank account,
in full and final settlement of the joint
venture’s claim for the return of the purchase price of the
thermometers. Neither
Mr. Glen Fine nor Calasca, it is common cause,
received anything.
7
The question in this case
is whether Mr. Berger was obliged to share the R2 million Mr. David
Fine paid to him with Mr. Glen Fine.
Mr. Glen Fine sues on the basis
of an agreement he alleges he reached with Mr. Berger in late October
2021. The business and personal
relationship between the two men had
by that time soured. The joint venture had effectively ceased to
operate some months before.
Immediately before the October 2021
meeting, each man claimed the other owed them money arising from the
joint venture.
8
At the October 2021
meeting, Mr. Glen Fine and Mr. Berger settled their differences on
the basis that neither owed the other any
money arising from
transactions undertaken as part of the joint venture. There is a
dispute, however, about what the men agreed
would be done to collect
the money Cardona still owed to the joint venture. Mr. Glen Fine says
that the agreement was that the
parties would continue to co-operate
to recover the amount Cardona still owed, by pursuing Mr. David Fine
for that amount. Mr.
Berger says that this was not the agreement. He
says that the agreement was in fact that each man would endeavour to
collect their
own portion of what was owed, and that there was no
agreement to share whatever had been collected.
9
The parties also disagree
about the capacities in which the October 2021 accord was reached.
Mr. Glen Fine says that all along,
and in any event at least by that
time, neither he nor Mr. Berger drew any distinction between
themselves and the companies through
which they operated the joint
venture. The agreement was that each man would share whatever they
collected from Cardona or Mr.
David Fine with the other, whether or
not the money was collected by or on behalf of either of the
companies. Mr. Berger denies
this. He says that he would never have
entered into such an agreement in his personal capacity, and that
whatever agreements passed
between the two men, they could only have
bound the two men’s companies – Calasca and Rondo
Industro. Mr. Berger also
said that the joint venture was a creature
of those two companies, and that neither he nor Mr. Glen Fine were
party to it in their
personal capacities.
10
It seems to me that, if
this trial action is to succeed, I must settle both of these
disagreements in Mr. Glen Fine’s favour.
If I were to decide
that the agreement was that any money recovered by either man would
be shared, the claim would still fail if
I also concluded that the
agreement to collect and share what was owed was made by the two men
acting only as representatives of
the two companies that formed part
of the joint venture. This is because the company on behalf of whom
Mr. Berger would have received
the money, Rondo Industro, is not a
party to these proceedings, and cannot be ordered to pay the
plaintiffs anything. If, however,
I decide both that there was an
agreement to share the proceeds of whatever was collected from Mr.
David Fine, and that the agreement
was reached by Mr. Glen Fine and
Mr. Berger in their personal capacities, then the claim would succeed
on the basis that Mr. Berger
owes Mr. Glen Fine R1 million, and that
Mr. Glen Fine is entitled to judgment for that amount.
11
I now turn to the first of
these two issues: the true nature of the October 2021 agreement.
The
October 2021 agreement
12
The October 2021 agreement
was reached orally at a meeting between the two men which took place
at Linksfield. It was later memorialised
in an email Mr. Glen Fine
sent to Mr. Berger on 4 November 2021. That email reads –
“
Hi Myron
to ensure we [are] on the
same page, the discussion was
1.Rondo and Calasca do
not [owe] each other any money
2. Calasca will collect
50% of the settlement from David Fine
3. Rondo will collect 50%
of the settlement from David Fine
4. Rondo will pay
Macdonalds.
Please confirm points 1
to 4
thanks.”
13
The parties agree that Mr.
Berger later confirmed the contents of this email over the telephone.
Mr. Glen Fine says that the agreement
is to be interpreted as meaning
that each party would share half of whatever either of them
ultimately collected from Mr. David
Fine with the other. Mr. Berger
adopts a more literal approach to the email. He says that the email
means more or less what it
said: each company would pursue its own
half of whatever Mr. David Fine agreed to pay in settlement of the
sum owed to the joint
venture.
14
It is now well-established
that the words in which the parties to a contract choose to express
their accord are not to be treated
as if they bear objective and
immutable meanings independent of the circumstances in which the
agreement was struck. While “the
inevitable point of departure
is the language” of the agreement itself, that language must be
“read in context and
having regard to the purpose of the
provision and the background to the preparation and production”
of the agreement (
Nation Joint Municipal Pension Fund v Endumeni
Municipality
2012 (2) SA 593
(SCA), paragraph 18). To put it
another way: “words without context mean nothing”
(
Novartis SA v Maphil Trading
2016 (1) SA 518
(SCA), paragraph
28).
15
The contextual factors
relevant to the interpretation of the agreement in this case all, in
my view, point to the conclusion that
the meaning of the 4 November
2021 email was that each party would receive half of whatever either
of them collected from Mr. David
Fine. The most obvious consideration
in favour of that interpretation is the fact that the agreement was
to pursue a “settlement”
that neither party was able to
quantify at the time it was reached. The maximum amount Mr. David
Fine owed was probably the cost
of the thermometers – about
R5.6 million. But the amount for which the parties to the joint
venture would “settle”
their claims had not been
quantified. If the idea was that each party would act independently
of the other, that would entail the
proposition that each party would
quantify the total amount for which they were prepared to “settle”
with Mr. David
Fine, and then claim half of that amount. That, of
course, would make no sense, since, acting independently, each party
might “settle”
in a different amount. In addition, if the
parties were to settle separately with Mr. David Fine, neither
party’s agreement
to “settle” could realistically
bind the other. The agreement to split a “settlement”
only makes sense
if the parties accepted that they would jointly
settle with Mr. David Fine, and then share that amount equally.
16
It is, further, common
cause that neither Mr. Glen Fine nor Calasca had any way of
collecting money from Mr. David Fine on their
own. They had either to
do so on behalf of the joint venture or through Mr. Berger or Rondo
Industro. The contract for the delivery
of the thermometers had been
entered into between Rondo Industro and Cardona. Only Rondo Industro
had the standing necessary to
collect the money Cardona owed, whether
on behalf of the joint venture or otherwise. Had Mr. Glen Fine been
left to his own devices,
he would have had no basis on which to
demand payment from Mr. David Fine, since Cardona’s contract
was with Rondo. It is
true that Rondo concluded the contract pursuant
to its role in the joint venture, but Mr. Glen Fine would clearly
have created
an extra hurdle for himself in collecting the money from
Mr. David Fine if he agreed to do so without assistance from Rondo or
Mr. Berger. Such an agreement would plainly have made very little
business sense.
17
There is, in addition, Mr.
Glen Fine’s unchallenged assertion in his evidence that he drew
no distinction between the individuals
and companies who were party
to the joint venture. They were, in his view, all in it together. The
evidence of Mr. Glen Fine’s
conduct all accords with this
approach. Shortly before the October 2021 meeting, Mr. Glen Fine had
been contacted directly by Mr.
David Fine. Mr. David Fine had asked
him what he would settle for. Mr. Glen Fine’s evidence, again
unchallenged, was that
he was reluctant to settle directly with Mr.
David Fine without consulting with Mr. Berger, since he drew no
distinction between
the two men’s interests in the debt Mr.
David Fine owed. There is nothing in the evidence that suggests that
Mr. Glen Fine’s
attitude suddenly changed in or about the late
October 2021 meeting. There is similarly no objective indication that
such a change
of attitude would have done Mr. Glen Fine’s
interests anything but harm.
18
Also unchallenged is Mr.
Glen Fine’s version of what Mr. Berger himself proposed at the
late October 2021 meeting. In response
to a question from me, Mr.
Glen Fine said that it was in fact Mr. Berger who proposed a “united
front” to collect what
Mr. David Fine owed, and that whatever
was collected would be shared “50/50”. That account of
the late October 2021
meeting was never challenged. The 4 November
2021 email must be interpreted in light of it. I find it impossible
to accept that,
having been made that offer at the late October 2021
meeting, Mr. Glen Fine would spontaneously have decided that the two
men should
go it alone. The true meaning of the 4 November 2021 email
was clearly that the two men would pursue Mr. David Fine jointly for
what Mr. David Fine owed and share whatever they got.
19
Mr. Glen Fine was in every
respect a consistent, impressive and honest witness. He struck me as
the more vulnerable and less weathered
of the two men. He was perhaps
trusting to the point of naïve in his dealings with Mr. Berger,
but there was nothing in his
evidence that suggested that his
interpretation of the 4 November 2021 email was contrived or
self-serving. He plainly genuinely
believed that the email had the
meaning he contended for.
20
I cannot say the same of
Mr. Berger, whose attitude in the witness box did not inspire
confidence. Mr. Berger’s evidence was
guarded and halting. He
was unable to explain why Mr. Glen Fine would have agreed
independently to pursue a debt that, at least
on paper, he was not
owed. He challenged the authenticity of emails that his legal
representatives had conceded were authentic
because, when they were
put to him, they did not suit his version. There is also the fact,
patent from those emails, that Mr. Berger
did not tell Mr. Glen Fine
about the amount he received from Mr. David Fine for weeks after he
received it. This was despite the
fact that Mr. Glen Fine regularly
asked whether the amount had been recovered. Had Mr. Berger been
telling the truth about the
nature of the agreement, it would have
been a small thing to say that he had received his share of the
settlement that both men
had agreed could be independently recovered.
But he did not say that. In the emails that passed between the two
men, Mr. Berger
pretended not to understand what Mr. Glen Fine was
talking about. The probable inference from all of this is that Mr.
Berger lied
to Mr. Glen Fine for some time after he received his
payment from Mr. David Fine, and that he lied to me in the witness
box about
the true nature of his agreement with Mr. Glen Fine.
Accordingly, I find it impossible to rely on Mr. Berger’s
evidence on
the points in dispute.
21
For all these reasons, I
conclude that the more probable interpretation of the 4 November 2021
email and the agreement it memorialised
was that each party would
share equally anything either of them collected from Mr. David Fine.
The
parties to the agreement
22
What remains is to decide
whether the agreement recorded in the 4 November 2021 email was
reached between Mr. Glen Fine and Mr.
Berger acting as
representatives of Calasca and Rondo Industro, or whether they
intended to bind themselves personally to share
with each other
whatever they collected from Mr. David Fine.
23
The agreement to share the
“settlement” referred to in the 4 November 2021 email
initially struck me as an agreement
between two companies. As Mr.
Silver, who appeared for Mr. Berger, pointed out, it is expressed as
an agreement between the two
companies: “Calasca” and
“Rondo”. However, as I took the circumstances surrounding
the email into account,
that textual point became less persuasive.
24
In the first place, Mr.
Glen Fine is the author of the email. Insofar as the joint venture
was concerned, he plainly drew no distinction
between himself and
Calasca on the one hand and Mr. Berger and Rondo on the other. Rondo
had to be named, because it was to Rondo
that the money was formally
owed. But by the time of the late October 2021 meeting, Mr. Berger
had long-since resigned as a director
of Rondo. I heard no evidence,
other than Mr. Berger’s say-so, that Mr. Berger’s efforts
to recover the money Mr. David
Fine owed the joint venture were
undertaken strictly on Rondo’s behalf. For the reasons already
given, I decline to rely
solely on Mr. Berger’s word that this
was so.
25
In addition, the amount
eventually recovered from Mr. David Fine was not paid to Rondo, but
into Mr. Berger’s personal account.
Had Mr. Berger really been
pursuing Mr. David Fine on Rondo’s behalf, he would likely have
had the money paid to Rondo. There
is also the fact that the money
was not paid over by Cardona itself but by Mr. David Fine personally.
This was after what Mr. Swartz,
Mr. David Fine’s attorney,
called “extortion” – in that, as was never
seriously disputed, Mr. Berger sent
a debt collector to warn Mr.
David Fine personally of the adverse consequences of failing to pay
what Cardona owed the joint venture.
All these contextual factors
point to businessmen acting personally rather than on behalf of the
entities they control. They tend
strongly toward the conclusion that
Mr. Berger was collecting the money for his own account, and that the
agreement memorialised
in the 4 November 2021 email from Mr. Glen
Fine was an agreement between the individuals and not the companies
they controlled.
26
To this must be added that
the agreement was reached against the background of a family
conflict. The two men were part of each
other’s extended
family. It was common cause at trial that Mr. Glen Fine had refused
to invite Mr. Berger to his wedding
because of the conflicts that had
arisen from the joint venture. Mr. Berger ended up attending the
wedding as a result of the détente
that the two men had
reached at the late October 2021 meeting. It is improbable that
either man considered the accord to be solely
in the interests of
their two companies.
27
On top of all of this, the
emails that passed between the two men leading up to the late October
2021 meeting and the 4 November
2021 email referred interchangeably
to themselves as individuals and to their companies – with Mr.
Berger almost exclusively
referring to his share of the amount due
from Mr. David Fine as a sum due to him personally rather than to
Rondo. Throughout the
joint venture, the two men had referred to each
other as “partners”. They had seldom, if at all, taken
care to refer
to each other’s companies as the true
collaborators. This was, from start to finish, a business affair
between the two men
rather than an exclusively corporate transaction.
28
For these reasons, I
conclude that the agreement memorialised on 4 November 2021 was an
agreement between the two men to share with
each other whatever each
of them managed to collect from Mr. David Fine.
The
pleadings
29
It is finally necessary to
deal with the argument, advanced by Mr. Silver in his written
submissions, that the claim I have sustained
was not pleaded. At
paragraph 37 of his submissions, Mr. Silver contends that it was not
pleaded that either Mr. Glen Fine or Mr.
Berger were party to the
joint venture or that either of the men would be personally liable to
the other in the event that the
joint venture suffered a loss.
30
This misses the point. In
my view, the joint venture was more than an alliance between Calasca
and Rondo, but that does not matter.
The critical issue is whether
the agreement to collect and share what Mr. David Fine owed the joint
venture was reached between
the two companies or between the two
individuals. The conclusion I have drawn on the evidence – that
it was an agreement
between the two individuals, Mr. Glen Fine and
Mr. Berger, the second plaintiff and the second defendant – is
pleaded in
paragraph 22 of the plaintiffs’ particulars of
claim.
31
Mr. Silver poured scorn on
that paragraph as pleading two mutually destructive factual versions
– and perhaps it does. But
that was an issue which the
defendants could have dealt with by way of exception. Once the
defendants went to trial on the pleadings
as they stood, they must
have known that the agreement really had to be established between
Mr. Berger and Mr. Glen Fine acting
in their personal capacities,
because everybody knew that Rondo Industrial, the first defendant,
had been misjoined, and was never
a party to the joint venture in the
first place.
32
In any event, there can be
no suggestion that I have reached a conclusion that was not pleaded,
and I reject Mr. Silver’s
argument to the contrary.
Order
33
For all these reasons, I
give judgment as follows –
33.1 The second
defendant will pay the second plaintiff the sum of R1 million plus
interest at the prescribed rate to run
from 14 September 2023 to the
date on which the judgment is satisfied.
33.2 The second
defendant will pay the plaintiffs’ costs of suit. Counsel’s
costs may be taxed on scale “B”.
S
D J WILSON
Judge
of the High Court
This
judgment is handed down electronically by circulation to the parties
or their legal representatives by email, by uploading
it to the
electronic file of this matter on Caselines, and by publication of
the judgment to the South African Legal Information
Institute. The
date for hand-down is deemed to be 13 August 2025.
HEARD
ON:
27, 28, 29 May and 29 July 2025
DECIDED
ON:
13 August 2025
For
the Plaintiffs:
M M Antonie SC
Instructed by Witz Inc
For
the Defendants:
M D Silver
Instructed by David
Kotzen Attorneys
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