Case Law[2024] ZAGPJHC 44South Africa
Rheinland Filling Station (Pty) Ltd and Others v Mphosi and Others (24/000484) [2024] ZAGPJHC 44 (25 January 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
25 January 2024
Headnotes
in the name of two vehicles, Tigrarox or Compredox.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Rheinland Filling Station (Pty) Ltd and Others v Mphosi and Others (24/000484) [2024] ZAGPJHC 44 (25 January 2024)
Rheinland Filling Station (Pty) Ltd and Others v Mphosi and Others (24/000484) [2024] ZAGPJHC 44 (25 January 2024)
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sino date 25 January 2024
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
Number: 24/000484
(1)
REPORTABLE: YES / NO
(2)
OF INTEREST TO OTHER JUDGES: YES / NO
(3)
REVISED: YES/NO
DATE:
25 January 2024
SIGNATURE
In
the matter between:
RHEINLAND
FILLING STATION (PTY) LTD
FIRST APPLICANT
CACCIATORE
(PTY)
LTD
SECOND APPLICANT
PREMIBIX
(PTY) LTD
THIRD APPLICANT
PREMITPYE
(PTY) LTD
FOURTH APPLICANT
TEXEALISPEX
(PTY) LTD
FIFTH APPLICANT
and
LAZARUS
SALAE
MPHOSI
FIRST RESPONDENT
JOHN
SIDIPA
MPHOSI
SECOND RESPONDENT
MORRIS
POGRUND N.O AND
LIMARI
LOMNARD
N.O
THIRD RESPONDENT
BOTTOM
LINE TRADING 19 CC
FOURTH RESPONDENT
JUDGMENT
SIWENDU
J
[1]
This urgent application served before the Court on 12 January 2024.
The applicants
sought a
mandament van spolie
and an interim
interdict against the first and second respondents to restore the
possession of several fuel service stations with
their accompanying
retail convenience stores at 92 of the 94 sites operated by the
applicants. The petrol service stations
are located across the
provinces of Limpopo, Gauteng, Mpumalanga, Free State, Northwest,
Eastern Cape, and KwaZulu-Natal.
On 12 January, I granted the
applicants the order, with reasons to follow. These are the reasons
for the order.
[2]
The applicants are Rheinland Filling Station (Pty) Ltd, Cacciatore
(Pty) Ltd, Premibix
(Pty) Ltd, Premitype (Pty) Ltd, and Texalispex
(Pty) Ltd respectively. Ms Modistwi Cinderalla Ramokoto (Ms
Ramokoto), as the sole
director and shareholder of the applicants
disposed to the founding affidavit on their behalf.
[3]
The First Respondent is Mr Lazarus Selae Mphosi (Mr Mphosi) an adult
male businessman.
The Second Respondent is Mr John Sidipa
Mphosi (Mr Mphosi Snr), a businessman based in Limpopo. They
will be collectively
referred to as the respondents.
[4]
Mrs Ramokoto and the respondents are consanguine. Mr Mphosi Snr is
her father and
Mr Mphosi her brother. Her other sibling, Mr
Theophilus Ramokokono Mphosi, died on 5 June 2022 (the deceased).
The deceased
is survived by his wife, Mrs Reilly Mphosi (Mrs Mposi).
Mrs Mphosi is the sole heir of the deceased’s estate. In the
context of this judgment, I refer to all of them as the Mphosi
family.
Background
[5]
The background to the application is as follows: The Mphosi family
owns and operates
a multibillion rand business involving
approximately 145 service stations excluding other businesses.
Mr Mphosi Snr is the
Chairman of the Mphosi family business, known as
the Rheinland Group. The petrol service station business is
organised in
the following manner:
a.
Rheinland Investments CC (Rheinland) is the
licensed fuel wholesaler under the Petroleum Products Act 120 of 1977
(PPA). It
supplies fuel to all the service stations with the
Mphosi family business. Mr Mphosi is the only member.
b.
Rheinland
trades as Global Oil and is the proprietor of the Global Oil
Trademark registered in 2013.
c.
Bottom Line
Trading 19 CC (Bottom Line CC) is the licenced site holder. The
deceased was its only member. All fuel stations
are operated by
Bottom Line. Bottom Line currently operates 114 fuel stations.
d.
All income
from the fuel stations was considered as the income of Bottom Line
CC. Until the death of the deceased, the income
was not paid
into Bottom Line CC, but it was paid into bank accounts held in the
name of two vehicles, Tigrarox or Compredox.
e.
Compredox
(Pty) Ltd [Registration No. 2010/006144/07], which was registered on
29 March 2010 (Compredox).
f.
Tigrarox (Pty)
Ltd [Registration No. 2016/44174/07], which was registered on 17
October 2016(Tigrarox). It is not clear from
the papers who the
shareholders of Compredox and Tigrarox are.
[6]
Mrs Ramokoto, an accountant, entered the Mphosi family business
full-time in 2017.
She became responsible for its financial
operations including the fuel retail sites operated by Bottom Line
CC. Although
there is some disagreement about whether the exit
of Mr Mphosi from the family business was perfected, it appears to be
common
cause that in 2020, Mr Mphosi voluntarily left to pursue his
own business interests.
[7]
Mrs Ramokoto alleges that after the death of the deceased, the family
agreed to split
the retail fuel sites between four legal entities
until an agreement was reached about their future conduct. She
states that:
‘
[I]n
accordance with the agreement reached between the first and second
respondents and me, the businesses operated at the sites
were
transferred into the names of the applicants from some of the legal
entities … over the course of the latter part of
2022.’
These
sites were reflected in the spreadsheet attached to the application
papers and are the subject of the application.
[8]
Mrs Ramokoto claims further that the applicants managed and operated
the service stations
“to the exclusion of the respondents”
since September 2022 and earlier in respect of some, pursuant to the
family agreement.
Each of the applicants operates as a separate
legal person. Each applicant has a bank account for the
respective sites. In
some instances, there were two bank
accounts catering to the convenience stores and forecourts
respectively, each applicant is
the employer of the employees at the
sites where each respective applicant operates the business. Each
also files separate legal
financials with South African Revenue
Services (SARS), and the respective bankers are filed as is expected.
The applicants employ
people in the respective operations and file
separate returns for PAYE. The arrangement has endured for
approximately thirteen
months.
[9]
On 23 December 2023, while out of the country, she received
information that on 22
December 2023, Mr Mphosi Snr called a meeting
of all area managers and issued instructions to each of them to
divert the cash receipt
procedures and practices previously in place
by (a) depositing the cash received in manual safes instead of the
pre-existing electronic
safes; (b) changing Speed-Point machines used
for processing card transactions and installing different ones; (c)
diverting the
bank usually utilised for cash deposits to a bank the
applicants cannot access. Engagements with Mr Mphosi Snr came to
naught.
Overall measures taken in her absence to restore
possession failed except in respect of two sites.
[10]
On her return, from the 29
th
of December 2023, she took
further measures to secure certain sites to restore possession, by
substituting the newly installed
Speed-Point machines but succeeded
only in respect of two sites. She employed an alternative
security company to secure the
fuel stations. Tension, threats
of violence, and intimidation arose leading to a criminal
investigation. On 3 January 2024,
she instructed her current
attorneys to bring the urgent application.
[11]
Mrs Ramokoto claims that the clearest indication that the respondents
persist with spoliation
is from a letter dated 6 January 2024,
received from the respondent’s attorneys which states that:
‘
8.
The operator of the filling stations being Bottom Line is entitled to
receive the revenue as Bottom Line previously resolved
to receive
income through special purpose vehicles namely Premibix Pty Ltd with
company registration number 2017/084647/07 and
Premitype Pty Ltd with
company registration number 2017/093720/07. Notwithstanding the
above, Bottom Line has resolved to receive
funds in its own bank
account which decision was taken by the executor who is the sole
member of Bottom Line.
9.
Accordingly, under no circumstances does Ms Ramokoto have any right
to interfere with the retailing operations and revenue from
any
Global sites which was operated under the auspices of Rheinland and
Bottom Line. This includes the fact that Ms Ramokoto has
no power or
authority to issue instructions or demands to any person employed in
any capacity whatsoever on the Global sites concerned.
10.We
also advise that any Employee who does not follow the instructions of
Mr Lazarus and who diverts any funds to Ms Ramokoto,
will be causing
a loss of those funds to the rightful owners of such funds, more in
particular the Executor of Mr Theo's Estate,
Ms Limari Lombard and
other Beneficiaries entitled thereto.
11.
Ms Ramokoto, we wish to caution you against interfering with our
client's business activities and/or its Employees, directly
or
indirectly and your intimidatory tactics will not be countenanced. …’
[12]
The urgent application was opposed by the respondents in an affidavit
deposed to by Mr Mphosi,
also on behalf of Mr Mphosi Snr. They (a)
challenged the urgency of the application, and (b) contended a
material non-joinder of
Bottom-Line CC, Rheinland, and the Executors,
whom they contend have a direct and substantial interest in the
subject matter of
the urgent application and relief. They also sought
the leave of the court to admit a further affidavit to place further
facts
before the Court in response to the replying affidavit.
The Court exercising its discretion admitted the further affidavit
to
ameliorate the complaint about the urgency and truncated period and
decide the application of full facts.
[13]
The respondents deny that the Applicants were “in undisturbed
possession (or any other
type of possession) and/or control of any of
the alleged fuel retail sites, nor were they unlawfully or otherwise
deprived of such
possession.” According to Mr Mphosi, Mrs
Ramokoto’s involvement with the Mphosi family business, is that
of a salaried
employee of Rheinland, engaged as “its bookkeeper
or head of account as she is a qualified accountant.” He claims
that
the application is an attempt to “high jack” the
petrol stations and to usurp Bottom Line CC’s business. It is
said the application is aimed at diverting the income of fuel
stations operated by Bottom Line CC to the Applicants.
[14]
Premised on the merits about ownership, it is said the applicants
have not produced “a
single retail licence certificate”
pertaining to the service station other than in respect of two of
these. Materially,
they contend that a spoliation order would
amount to an illegality. Only the holder of a fuel retail
licence (or a person
or entity who manages such operation on behalf
of the licence holder) is entitled to the revenue. They submit
that all the
staff who run these sites are employed by Bottom Line or
Rheinland and remain so employed. Their salaries are paid by
either
Bottom Line or Rheinland.
[15]
Mr Mphosi confirmed that the Mphosi family decided that Mrs Ramokoto
would, in addition to her
day-to-day responsibilities,
temporarily
be charged with
the business operations of Bottom Line
CC. He accepted that there was indeed a family agreement to
utilise the third and fourth
applicants to “serve as conduits
into which the revenue generated from the fuel stations would be
deposited. He stated in
this regard:
‘
After
Theo's death and during August 2022, the Mphosi family, which
included Mphosi Sr., Reilly, Cindy and I, met and decided that
as
an interim measure, that all Bottom Line's revenue would be paid into
accounts held in the names of the Third and Fourth Applicants
.
Cindy was aware and it was always agreed that Bottom Line's funds
would later be paid into accounts nominated by it.
…
.
The
Mphosi family, including Reilly are part of the Lemba religion, which
provides that a surviving spouse is obligated to mourn
for a period
of 6 months after a spouse's death. This meant that Reilly could not
be involved in any of the business dealings of
the Rheinland Group
for a period of 6 months.
As appears below, various meetings
were arranged with Cindy, which include meetings for 30 October 2023
and again on 10 November
2023, the purpose of which was to discuss
changing the interim arrangement in order for all Bottom Line's
revenue to be paid into
accounts held by Bottom Line and not into the
accounts held by the Third and Fourth Applicants
.
Cindy attended the 30 October 2023 meeting where this was conveyed to
her. Cindy never attended the 10 November 2023 meeting.’
[Emphasis Added]
[16]
Mr Mphosi claims that Mrs Ramokoto was uncooperative in implementing
the decision to change the
interim arrangement. Bottom Line CC
changed the speed points or points of sale devices in all the fuel
stations operated
by it. It arranged for all cash generated by
such fuel stations to be collected and deposited into Bottom Line's
bank account.
The decision was implemented on 23 December 2023.
[17]
In her replying affidavit, Mrs Ramokoto disputed that there was a
change in the arrangement.
She stated that on 1 October 2023,
the respondents met with her and her younger sister, Maude. Mr
Mphosi Snr suggested
“they split the businesses, in the
following proportions: 40% to the second respondent, 20% to
Maude, 20% to her, and
Reilly 20%.” She requested an
adjournment to think about this suggestion.
[18]
Mrs Ramokoto’s version is that when they met on 30 October
2023, she informed them she
preferred to retain the status quo. No
decision was taken. They were due to reconvene on 10 November
2023, but the
meeting did not materialise. Post-mortem results
revealing that the deceased had been poisoned, came to hand. She
had
to meet with the police. She denies she was informed of the
decision to remove the operation of the sites from the applicants.
[19]
Although the question of ultimate ownership is in dispute and has not
been resolved, it is not
a deciding factor on whether to grant
relief. The respondents contend that the revenues belong to
Bottomline Line CC as the
retail licence holder of the sites. It
bears mentioning that the further affidavit by Mr Mphoko makes common
cause with Mrs
Ramokoto, that at some point, the revenues belonging
to Bottom Line CC we paid to different entities, Tigrarox or
Compredox, ostensibly
on behalf of Bottom Line CC.
Intervention
[20]
Mr Pogrund N.O and Ms Lombard N.O are attorneys of the firm
Kampherbeek, Twine & Pogrund
of Polokwane. They are the
joint Executors of the estate of the deceased. Since they
oversee the affairs of the deceased,
they have been registered as
members of Bottom-Line CC. They sought the Court’s leave
to intervene as the third and
fourth respondents.
[21]
It is common cause that apart from being the site licensee, Bottom
Line CC operated all the service
stations forming part of the Mphosi
family business, until the agreement in
casu
. Although I
have found that no relief is sought against Bottom Line CC or its
Executors in this application, I granted the
intervention
application. Bottom Line CC and the Executors have an interest
in the subject and outcome of the urgent application.
Jurisdiction
[22]
Even though they sought to be joined in the urgent application, the
Executors and Bottom Line
CC objected to the jurisdiction of the
court, necessitating that this be disposed of first.
[23]
Although the registered address of the applicants is in Polokwane,
Limpopo, and Mr Mphosi Snr
is in that jurisdiction, the service
stations are in more than one province. Mrs Ramokoto resides in
Roodepoort. Mr
Mphosi resides in Hyde Park, Johannesburg.
All of them are within the jurisdiction of the court.
Section
21(1) of the Superior Courts Act 10 of 2013 (the Act) provides that a
“division has jurisdiction over all persons
residing or being
in and in relation to all causes arising and of all offences triable
within its area of jurisdiction …”.
[24]
On 6 January 2024, the first and second
respondents’ attorney David de Agrella consented on their
behalf to the jurisdiction
of this court.
Our law is
clear that when a party consents to a court's jurisdiction, it does
not oust the jurisdiction of another competent court.
Non-Joinder
[25]
The non-joinder of Bottom-line CC and the Executors of the deceased
estate were overtaken by
the intervention application and the order.
The argument for the joinder of Rheinland is that it has a direct and
substantial
interest in the relief sought because:
a.
Rheinland is the holder of the headlease of
virtually all the fuel stations falling within the Rheinland Group.
b.
Any order will
directly affect the rights of Rheinland in that the lessee in terms
of the headleases held by Rheinland will change,
and this directly
affects the rights of Rheinland in terms of its headlease.
c.
All the fuel
stations trade under the name "Global Oil", of which
Rheinland is the proprietor. Any order made will
affect the
rights of the proprietor of the trademark as the effect will be that
an unlicensed entity will be using its trademark.
[26]
The test of whether there has been non-joinder is whether a party has
a direct and substantial
interest in the subject matter of the
litigation which may prejudice the party that has not been joined.
In Gordon v Department
of Health: KwaZulu-Natal
[1]
the court held that if an order or judgment cannot be sustained
without necessarily prejudicing the interests of third parties
that
had not been joined, then those third parties have a legal interest
in the matter and must be joined.
[27]
Although it is correct that Rheinland is amongst the parties that
have an interest in the unfolding
dispute, the first and second
respondents are its alter-ego. Its non-joinder is not fatal at this
stage. As it will be demonstrated,
the nature of the relief
sought is discrete and directed at the conduct of the first and
second respondents. The Court order
is not in any way directed
at nor will it impact any of the rights of Rheinland. Its
non-joinder would be material in the
action contemplated by the
applicants.
Urgency
[28]
The respondents dispute the
application is urgent. Although they do not dispute that Mrs
Ramokoto was out of the country on
23 December 2023, when the
spoliation occurred, they claim that she was aware of the facts and
conduct complained of from that
date. They submit that she
delayed bringing the application. The third and fourth
respondents, on the other hand, submit
that since the applicants are
not license holders, the case lacks merit as the applicants have no
protectable right or interest.
[29]
Urgency involves the exercise of judicial discretion by a court
concerning which deviations it
will tolerate in a specific case. It
does not only relate to a threat to life or liberty. The
urgency of commercial
interests may justify the invocation of subrule
6(12) no less than any other interests.
[2]
The applicants must show why they
will
not be afforded substantial redress in due course.
[30]
In
Volvo
Financial Services Southern Africa (Pty) Ltd v Adamas Tkolose Trading
CC
[3]
the court held that:
‘
The
nature of the prejudice an applicant will suffer if they are not
afforded an urgent hearing is often linked to the kind of right
being
pursued. Spoliation is a classic example of this type of claim.
Provided that the spoliated person acts promptly, the matter
will
nearly always be urgent. The urgency does not arise from the nature
of the case itself, but from the need to put right a recent
and
unlawful dispossession.’
[31]
It is common cause from the papers that the act of spoliation took
place on 23 December 2023
when Mrs Ramokoto was out of the country.
Although the respondents say it was an implementation of a
decision taken in November
2023, (a matter I return to later) it is
not clear why it was implemented more than a month after it was
allegedly taken. The
change was without forewarning.
[32]
She took measures to resolve the issues and engaged the second
respondent without avail. She
sent one of the managers to
several sites on 24 December 2023 to remove speed points delivered by
the first and second respondents.
She failed. She was only able
to take measures to secure possession immediately on her return.
These measures failed.
The attempt to try and resolve a
dispute prior to bringing the urgent application or resort to
litigation cannot be considered
dilatory.
[33]
The clearest intention yet that the respondents intend proceeding
with their unlawful conduct,
came on 5 January 2024 by way of the
letter addressed by the second respondent to employees. She had
by this time issued
instructions to her attorneys to bring the urgent
application. On these facts, I find that the delay is fully
explained,
reasonable, and not self-created.
[34]
As I see it, this matter involves a family dispute that implicates a
substantial business, part
of which generates multibillion rands in
revenue. The family business serves the public across more than
one province.
It has several employees. After attempts to
restore the status quo, there were acts of aggression and
intimidation which
were reported to the South African Police Services
(SAPS). They attended at some of the premises and successfully
subdued
the aggression. The above factors as well as the
spoliation relief sought prompted the Court to exercise its
discretion to
hear the application.
The
Spoliation
[35]
A spoliation relief is designed to prevent self-help and thus
vindicates the rule of law. It
is the foundation for stability
of an orderly society and it ensures the peaceful, regulated and
institutionalised mechanisms to
resolve disputes, without resorting
to self-help. The merits and demerits of ownership or right to title,
partly the basis for
the opposition raised by the respondents do not
come into play in the consideration of whether to grant the relief at
this stage
[4]
.
[36]
The court in
Administrator
of Cape of Good Hope and Another v Ntshwaqela and Others
[5]
as
follows:
‘
It
is a fundamental principle that no man is allowed to take the law
into his own hands; no one is permitted to dispossess another
forcibly or wrongfully and against his consent of the possession of
property, whether movable or immovable. If he does so, the
court will
summarily restore the status quo ante, and will do that as a
preliminary to any inquiry or investigation into the
merits of the
dispute.’
[37]
To obtain the order, the applicants must show on balance of
probabilities that (a) they were
in peaceful possession and (b) that
they have been unlawfully deprived of peaceful possession. The
applicants reiterate a
trite legal position that good title is
irrelevant in a claim to spoliatary relief which arises solely from
an unprocedural deprivation
of possession.
[6]
A spoliation order thus protects the physical possession not the
underlying right to possession
[7]
.
If granted, it is final in effect. On the strength of these
principles, the first question is whether the applicants
had physical
possession of the service stations which were wrongfully dispossessed
by Mr Mphosi and Mr Mphosi Snr.
[38]
The first and second respondents sought to suggest that the
applicants were never in possession.
Yet Mr Mphosi confirmed
the decision to entrust Mrs Ramokoto to oversee and conduct the
operations. He also confirmed the
agreement to use the third
and fourth applicants to receive the revenues from the service
stations. Mrs Ramokoto supported
the claim that the applicants
had possession with proof of bank statements of the applicants for
the last six months and the payroll
for the sites. These were
furnished in response to rule 35(12) made available during the
application. These bank statements
reveal that revenues from
several service stations streamed into these bank accounts. Mrs
Ramokoto as the sole director and
shareholder in the third and fourth
respondents was not a mere employee in relation to the operations. On
the other hand, the allegation
by Mr Mphosi that Bottom Line CC paid
employees was supported by information dating January 2024, after the
spoliation. There is
no evidence that Bottom Line CC did so during
the period Mrs Ramokoto claims possession.
[39]
The next question relates to wrongful dispossession, which is not
hotly contested in my view.
This is demonstrated by the
instructions issued to the managers of the sites and the removal of
equipment therein. When
Mrs Ramokoto called in the quest to
restore the equipment and to withdraw the instruction, Mr Mphosi Snr
confirmed issuing it.
This version was not denied but justified
as an instruction of Bottom Line CC.
[40]
The respondents did not dispute that they issued an instruction to
enter the various sites and
physically removed pre-existing
speed-point machines previously used for the business. They
placed alternative speed-point
machines and manual safes instead of
the electronic ones, previously in place. All the equipment
removed related to the conduct
and operation of the service stations.
It was previously in the possession of the applicants. It was
substituted with different
equipment. The applicants did not
consent to this.
[41]
It was contended that an order restoring position ante would be
unlawful and in breach of the
PPA. The answer to this defence
is the court’s decision in
Ivanov
v North West Gambling Board and Others
[8]
where it was held that:
‘
Spoliation
is the wrongful deprivation of another's right of possession. The aim
of spoliation is to prevent self-help. It seeks
to prevent people
from taking the law into their own hands. An applicant upon
proof of two requirements is entitled to a mandament
van spolie
restoring the status quo ante. The first is proof that the applicant
was in possession of the spoliated thing. The cause
for possession is
irrelevant — that is why possession by a thief is protected.
The second is the wrongful deprivation of
possession. The fact that
possession is wrongful or illegal is irrelevant, as that would go to
the merits of the dispute.’
[42]
The submission is also gainsaid by the fact although Bottom Line CC
was the site licensee, until
the deceased’s death, income
derived from the fuel stations was paid into bank accounts held in
the name of Tigrarox or Compredox.
[43]
Whatever the legality, validity, or the terms of the underlying causa
for the arrangement were,
they are not a primary consideration at
this stage. Applying the Plascon-Evans rule the first and
second respondents confirmed
the version advanced on behalf of the
applicants that they have been trading without any disturbance for
the last 13 months up
until 22 December 2023. Specifically, the
arrangement, including the payment of proceeds to the third and
fourth applicants was
admitted by Mr Mphosi. The only point of
difference is that Mr Mphosi says it was a temporary arrangement,
while Mrs Ramokoto
says it was until the future conduct of the
business was agreed upon. These differences do not belie
possession.
[44]
Although it is said Bottom Line (as represented by the executrix and
Reilly) resolved to make
payment of all its funds into accounts held
by Bottom Line at Nedbank, there was no resolution filed by Bottom
Line and or its
Executors of Bottom Line CC to this effect, nor
evidence of termination of the arrangement from Bottom Line CC to the
applicants.
The purported redirection of the revenue belonging
to Bottom Line CC flows from the dispossessive act of removal of the
speed-point
machine by the first and second respondents. The
opposition by the Executors does not reveal that the conduct by the
first
and second respondents was at their instruction or behest.
[45]
Accordingly, I find that a case for a spoliation order against the
first and second respondent
succeeds.
Interim
Interdict
[46]
The applicants seek an interim interdict to prevent the first and
second respondents from further
unlawful conduct. Given the
spoliation order, the above facts are relevant and are relied upon
for the interim interdict.
[47]
The requirements for an interim interdict are well established, the
applicants must advance a
prima facie case even if open to some
doubt.
[9]
The applicants
have established
prima
facie
right to operate the sites based on the undisputed arrangement with
family members. Again, here the issue is not about the
definitive ownership of the service stations.
[48]
Next is the requirement for a reasonable apprehension of harm. The
respondents have not given an undertaking to refrain
from their
wrongful action. On the contrary, it is clear from the facts
that the harm that has already occurred will continue,
negatively
affecting the applicants and the employees across the sites,
potentially the business. The applicants have shown
that they
conduct and have assumed ongoing business statutory obligations
flowing from the operations. It will be difficult
to restore
the status quo at a later stage. Accordingly, the
apprehension of harm is reasonable and continuing.
[49]
As was made plain in
East
Rock Trading 7 (Pty) Ltd and Another v Eagle Valley Granite (Pty) Ltd
and Others
,
[10]
the absence of substantial redress is not the same as the showing of
irreparable harm before the granting of an interim relief
and is
something less. Flowing from the spoliation order, in my view
the balance of convenience favours the applicants. The
conduct
of the first and respondents shows there is no alternative remedy,
and the Court’s discretion is exercised in favour
of the
interim relief, granted in the light of the spoliation to prevent
further harm.
[50]
It bears emphasising again that the interim interdict is solely
directed at the unlawful conduct,
of the first and second respondent.
It does not in any way detract or deprive the lawful owner/s of
the sites from taking
legal measures to assert and enforce its/their
contractual rights relating to the right to trade at and/or ownership
of the sites.
It does not detract from the duty of the
Executors to fulfil their statutory obligation to administer the
affairs of the
deceased’s estate.
[51]
With regards to the costs of the urgent application, they must follow
the result, and the first
and second respondents are ordered to pay
the costs of the applicants, including the costs of two counsel. In
so far as the intervention
application, the third and fourth
respondents despite their intervention made no real contribution to
the disputed issues. Accordingly,
it is corrected that they be
ordered to pay the costs of the intervention application.
[52]
In the result, the following order was granted:
1.
Leave is granted to Morris Pogrund NO, Limari Lombard NO and
Bottom-Line Trading
19 CC to intervene in the application as Third
and Fourth Respondents respectively.
2.
The Court has jurisdiction over the applicants, the first and second
respondents
(the parties) as the subjects of this order.
3.
The rules relating to service and time periods are dispensed
with and this application is disposed of as one of urgency, in
accordance
with the provisions of Rule 6(12) of the Uniform Rules of
Court.
4.
The applicants are forthwith restored to possession of the businesses
operated
by them as at 21 December 2023 at the 95 (ninety five) sites
identified on annexure “
FA2
” to the founding
affidavit, including the ability to receive all the income generated
by such businesses on a daily basis.
5.
The first and second respondents are ordered to forthwith and
immediately upon the granting of the order and to give effect to the
order instruct all the area managers of Global Oil and each of the
site supervisors at the sites:
5.1
that the second respondent’s letter of 5 January 2024 is
withdrawn.
5.2
to
restore the applicants to the position ante with regards to the
possession of the businesses conducted at the sites.
5.3 to
cease using the Speed point machines the first and second respondents
had placed at the sites since 22
December 2023.
5.4
to store, manage and handle the cash
received from customers at the sites in the manner it was so stored,
managed and handled prior
to the respondents’ intervention and
instructions issued on 22 December 2023.
6.
The first and second respondents are to remove from each of the sites
the Speed point
machines and any safes they had installed thereat
from 22 December 2023 to date, within 48 (forty eight) hours of the
order.
7.
The first and second respondents are interdicted and restrained from
issuing any instructions to any staff, embarking on any conduct, or
taking any actions which are designed or may have the effect
of
interfering in the applicants’ operation of the sites.
8.
The interdict referred to in paragraph 5 above is interim in nature
and remains in force and effect pending the finalization of an action
to be instituted by the applicants within 20 (twenty) days
in which
repayment of the monies collected at the 95 sites referred to above
between the period of 22 December 2023 and the date
on which
possession of the sites is restored to the applicants is sought,
together with declaratory relief as to the applicants’
right to
trade and operate the businesses on all sites.
9.
In the event of the applicants failing to institute the action
envisaged
in paragraph 6 above within 20 (twenty) days of this order,
the interim interdict referred to in paragraph 5 above will lapse and
be of no further force and effect.
10.
The above orders do not detract or deprive the lawful owner/s of the
sites from
taking legal measures to assert and enforce its/their
contractual rights relating to the right to trade at and/or ownership
of
the sites.
11.
The first, second, third and fourth respondents are to pay the costs
of the
applicants jointly and severally, the one paying the other to
be absolved, including the costs of two counsel, where so employed.
12.
The third and fourth respondents are ordered to
pay the costs of the intervention application, which shall be limited
to costs of
one counsel.
NTY SIWENDU
JUDGE OF THE HIGH COURT
JOHANNESBURG
This
judgment is handed down electronically by circulation to the
Applicants and the Respondents’ Legal Representatives by
e-mail, publication on Case Lines and release to SAFLII. The date of
the handing down is deemed to be 25th of January 2024
Date
of hearing:
12 January 2024
Date
of the Order:
12 January 2024
Date
of delivery:
25 January
2024
Appearances:
For the Applicants:
Advocate Cassim SC
With him:
Advocate Freese
Instructed by:
LM Attorneys
For the first and
second Respondents:
Advocate South
With him:
Advocate Coetzee
Instructed by:
De Agrella
Attorneys
For
the third and fourth Respondents
(the intervening
parties):
Adv Savvas
Instructed by:
Murray Kotze and
Associates
[1]
Gordon
v Department of Health: Kwazulu-Natal
[2008] ZASCA 99; 2008 (6) SA 522 (SCA).
[2]
See Harms
Civil
Procedure in the Superior Courts
Service
78 (2023); and
Loghdey
v Advanced Parking Solutions CC and Others
[2009] ZAWCHC 15
;
2009 (5) SA 595
(C) at para 21.
[3]
Volvo
Financial Services Southern Africa (Pty) Ltd v Adamas Tkolose
Trading CC
[2023] ZAGPJHC 846.
[4]
Yeko v
Qana
1973 (4) SA 735 (A).
[5]
Administrator
of Cape of Good Hope and Another v Ntshwaqela and Others
[
1989]
ZASCA 167
;
[1990] 2 All SA 34
(A).
[6]
Street
Pole Ads Durban (Pty) Ltd v eThekwini Municipality
[2008] ZASCA 33; [2008] 3 All SA 182 (SCA).
[7]
Dennegeur
Estate Homeowners Association and Another v Telkom SA SOC Ltd
[2019] ZASCA 37
;
2019 (4) SA 451(SCA)
at paras 9 and 10.
[8]
Ivanov
v North West Gambling Board and Others
[2012] (6) ZASCA 92
;
2012
(6) SA 67
(SCA) A at para 19.
[9]
The test requires that an applicant establishes the following
prerequisites: (a) a prima facie right even if it is open to some
doubt; (b) a reasonable apprehension of irreparable and imminent
harm to the right if an interdict is not granted; (c) the balance
of
convenience must favour the grant of the interdict and (d) the
applicant must have no other remedy.
See
also in this regard:
Setlogelo
v Setlogelo
1914
AD 221
;
Erikson
Motors (Welkom) Ltd v Protea Motors, Warrenton and Another
[1973] 4 All SA 116
(A);
1973 (3) SA 685
(A) at 961C; and
Economic
Freedom Fighters and Others v Manual
[2020]
ZASCA 172; [2021] 1 All SA 683 (SCA).
[10]
(11/33767)
[2671] ZAGPJHC at paragraph 7
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