Case Law[2024] ZAGPJHC 101South Africa
Showroom Centre (Pty) Ltd and Others v Kagan (54023/2021) [2024] ZAGPJHC 101 (8 February 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
8 February 2024
Headnotes
by several courts[1] (and therefore accepted) that the provisions section 17 have introduced a higher threshold to be met in application for leave to appeal and the usage of the word ‘would’ require the applicants to demonstrate that another court would certainly come to a different conclusion.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Showroom Centre (Pty) Ltd and Others v Kagan (54023/2021) [2024] ZAGPJHC 101 (8 February 2024)
Showroom Centre (Pty) Ltd and Others v Kagan (54023/2021) [2024] ZAGPJHC 101 (8 February 2024)
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sino date 8 February 2024
IN
THE HIGH COURT OF SOUTH AFRICA,
GAUTENG
LOCAL DIVISION, JOHANNESBURG
Case
No:54023/2021
REPORTABLE:
YES
/ NO
OF INTEREST TO OTHER JUDGES:
YES
/NO
REVISED:
NO
8 February 2024
In
the matter between:
SHOWROOM
CENTRE (PTY) LTD
1
st
Applicant
SIYATHEMBANA
PROJECT MANAGEMENT
&
DEVELOPMENT (PTY) LTD
2
nd
Applicant
STEPHEN
ZAGEY
3
rd
Applicant
And
Ronald
Kagan
Applicant
JUDGMENT
NOKO
J
Introduction
[1]
The applicants launched an application for leave to appeal the
judgment and order I granted in the above matter in terms
of which
the application for costs order and upliftment of the bar were
dismissed.
Background
[2]
The applicants launched an application to stay the proceedings
(
application to stay
) instituted by the respondent on the
basis that there were legal costs outstanding from previous
applications which the respondent
withdrew and failed to offer
payment for legal costs or refused to settle same. At the time of the
application the respondent had
served notice of bar and applicant
then, simultaneous with the application to stay, served the
application to uplift the bar.
[3]
At the time when the application to stay was launched there were
other bills which were not taxed but the respondent proceeded
to pay
the said legal costs for the matter to be proceeded with. The
applicants could not persuade the respondent to uplift the
bar and
tender costs after the payment and as such had to continue with the
application to stay for the purposes of obtaining an
order for costs
and also for the upliftment of the bar.
[4]
The applicants contend that the prospects of the success with the
appeal are good and the case may be precedent setting
as the rules
currently do not make a clear provision of the process to follow
after serving the application to stay. Further that
since the
respondent capitulated (and settled the legal costs) after the stay
application was launched, I could still have made
an order for them
to pay the costs. The applicants further contended that I erred in
dealing with the application to stay and upliftment
of the bar
disjunctively and as such I should not have separately considered
whether the requirements for the upliftment of the
bar were met
without regard being paid to the application to stay.
[5]
The respondent contended that the applicants failed to make out a
case for the stay of the proceedings and it follows
that the relief
for costs (which was discretionary) would not have been granted. In
addition, the risk of the applicants’
submission that the
uplifting of the bar was dependent on the stay application was
suicidal as the relief for the stay was aborted.
In any event failure
to address
in extenso
the requirements for the upliftment of
the bar derailed the wherewithal for the applicants to be granted the
relief.
Legal
analysis
[6] In
the application for leave to appeal the applicant relies on section
17 of the Superior Court Act which provides that
leave to appeal
would be granted where the court is,
inter alia
, of the
opinion that the appeal would have a reasonable prospect of success
and further that the adjudication of the application
to stay would be
precedent setting.
[7]
It has been
held by several courts
[1]
(and
therefore accepted) that the provisions section 17 have introduced a
higher threshold to be met in application for leave to
appeal and the
usage of the word ‘
would
’
require the applicants to demonstrate that another court would
certainly come to a different conclusion.
[8]
The mere
possibility of success, an arguable case or one that is not hopeless
is not enough.
[2]
There must be
a sound, rational basis to conclude that there is a reasonable
prospect of success on appeal
[3]
.
[9]
The issue of the adjudication of the application to stay is no longer
alive as the applicant did not and could not persist
therewith since
the respondent has paid the amount which was claimed even though it
was not due because it was not taxed. The
challenges which
allegedly beset the application to stay proceedings due to a lacuna
in the rules regarding application to stay
would be adjudicated on
another day as the relief for the stay cannot and cannot be persisted
with.
[10] The
requirements for the upliftment of the bar have still not been
complied with and even if they were dependent of the
application for
a stay of proceedings, now that the applicants no longer persist with
the application for stay the prospects of
success for the upliftment
of the bar became even more precarious. The applicant still harbour a
belief that it was not necessary
to address the defences in the
application for the upliftment of the bar which application was
ancillary.
[4]
At same time
applicants contend that the defences were raised by the respondent in
his answering affidavit and was then not required
to raise them in
the founding affidavit. The applicants now contends that the
respondent ‘…
did
not capture the defences correctly’.
[5]
This
argument was intended to justify introducing the defences in the
reply and it is now self-destructive as it is a concession
indirectly
that the correct defence were only raised in the reply.
[11]
In conclusion the applicants have therefore failed to meet the
threshold and as such this court is not persuaded that
another court
would come to a different conclusion. To this end the application for
leave to appeal is bound to fail.
Costs
[12]
There are no reasons presented to unsettle the general principle that
the costs should follow the results.
Order
[13]
In the premises I grant the following order:
That
the application for leave to appeal is dismissed with costs.
Mokate
Victor Noko
Judge
of the High Court
This
judgement was prepared and authored by Noko J is handed down
electronically by circulation to the Parties / their legal
representatives
by email and by uploading it to the electronic file
of this matter on CaseLines. The date of the judgment is deemed to be
8
February
2024.
Date
of hearing:
07 February 2024
Date
of judgment:
08 February 2024
Appearances
For
the Applicants: Adv
W Strobl
Attorneys
for the Applicants:
Andrew Garrat Incorporated.
For
the Respondent:
Adv M Scheepers
Attorneys
for the Respondent
EFG Incorporated
[1]
Mont
Chevaux Trust v Tina Goosen & 18 Others
2014
JDR 2325.
MEC
for Health, Eastern Cape v Mkhitha
2016 ZASCA (25 November 2016),
Acting
National Director of Public Prosecutions and Others v Democratic
Alliance: In Re Democratic Alliance v Acting Director
of Public
Prosecutions and Others
2016
ZAGPPHC 489.
[2]
MEC
for Health, Eastern Cape v Mkhitha
2016
ZASCA (25 November 2016) at para 17
[3]
S
v Smith
2012
(1) SACR 527.
[4]
See
para 23 of the Applicants’ Heads of Argument at 094-33.
[5]
Ibid
at para 25 on p094-37.
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