Case Law[2024] ZAGPJHC 186South Africa
National Empowerment Fund v Cloverleaf Films (Pty) Ltd and Others (2014-40058) [2024] ZAGPJHC 186 (28 February 2024)
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## National Empowerment Fund v Cloverleaf Films (Pty) Ltd and Others (2014-40058) [2024] ZAGPJHC 186 (28 February 2024)
National Empowerment Fund v Cloverleaf Films (Pty) Ltd and Others (2014-40058) [2024] ZAGPJHC 186 (28 February 2024)
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sino date 28 February 2024
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
JOHANNESBURG
CASE NUMBERS:
2014/40058
2014/40054
1.
REPORTABLE:
NO
2.
OF
INTEREST TO OTHER JUDGES: NO
3.
REVISED
CASE NUMBER:
2014/40058
In the matter between:
THE
NATIONAL EMPOWERMENT FUND
Applicant
and
CLOVERLEAF
FILMS (PTY) LTD
First
respondent
PIETERSE,
ANDRE
Second respondent
MA-AFRIKA
FILMS (PTY) LTD
Third
respondent
CLIDET
NO 962 (PTY) LTD
Fourth
respondent
GWAGWA,
NOLULAMO NOBANBISWANO
Fifth
respondent
DAKILE-HLONGWANE,
SALUKAZI
Sixth
respondent
MTHEMBI-MAHANYELE,
SANKIE DOLLY THEMBI
Seventh respondent
CASE NUMBER:
2014/40054
In the matter between:
THE
NATIONAL EMPOWERMENT FUND
Applicant
and
IRONWOOD
FILMS (PTY) LTD
First
respondent
PIETERSE,
ANDRE
Second
respondent
MA-AFRIKA
FILMS (PTY) LTD
Third
respondent
CLIDET
NO 962 (PTY) LTD
Fourth
respondent
GWAGWA,
NOLULAMO NOBANBISWANO
Fifth
respondent
DAKILE-HLONGWANE,
SALUKAZI
Sixth
respondent
MTHEMBI-MAHANYELE,
SANKIE DOLLY THEMBI
Seventh
respondent
This
judgment was handed down electronically by circulation to the
parties' and/or the parties' representatives by email and by
being
uploaded onto CaseLines. The date and time for hand-down is deemed to
be 28 February 2024.
JUDGMENT
STEIN
AJ
:
Introduction and
preliminary matters
[1]
In the two applications that are before me,
the applicant, which is the same in both applications, seeks leave to
amend its particulars
of claim in each of the respective underlying
action proceedings. The applicant is the plaintiff in both
proceedings and
the respondents are the respective defendants. The
respondents in the respective proceedings have objected to the
proposed amendments
on a variety of grounds under Rule 28(3). For
convenience, I refer to the application of the
National
Empowerment Fund and Cloverleaf Films (Pty) Limited and Others
(case no. 2014/40058) as the “
Cloverleaf
Films application
” and the
application of the
National Empowerment
Fund and Ironwood Films (Pty) Limited and Others
(case no. 2014/40054) as the “
Ironwood
Films application
”. I will
refer to the respective parties by their designations in the present
application proceedings.
[2]
By Notice of Withdrawal the applicant
withdrew its claim against the second and third defendants (second
and third respondents in
the present applications) and accordingly
where I refer to the respondents collectively and unless otherwise
indicated, this does
not include the second and third respondents in
each of the applications.
[3]
At the outset of the hearing I was informed
that both parties agree that the issues raised in each of these
applications for leave
to amend, and the objections which give rise
to them, are identical in all material respects. For the most part,
argument was confined
to the Cloverleaf Films application and the
applications were argued on the basis of that application alone.
It was indicated
to me by counsel who appeared for both parties that
what was argued in respect of the Cloverleaf Films application
applied to the
Ironwood Films application and that I could, and
should, consider and hand down judgment in respect of both of these
applications
together. I consider that to be sensible and
appropriate. Accordingly, my reasoning in respect the Cloverleaf
Films application
should be taken to apply to the Ironwood Films
application, unless the contrary is stated.
[4]
The action proceedings were instituted in
October 2014. Since then the matter has had a lengthy
procedural history, including
exceptions, amendments and an
application to dismiss the action for want of its prosecution brought
by the respondents, which application
remains pending. I refer
to this procedural history where apposite below. Suffice to
observe for the present purposes
that delay is not one of the grounds
of objection raised by the respondents and the matter has not as yet
proceeded to trial nor
does it appear that any of the procedural
antecedents to trial, such as discovery or requests for further
particulars, has occurred.
[5]
Before addressing each of the particular
objections raised by the respondents, it is necessary briefly to
traverse the relevant
legal principles pertaining to applications for
amendment and objections to proposed amendments.
RELEVANT LEGAL
PRINCIPLES
[6]
The
fundamental principles governing amendments to pleadings are well-
developed.
[1]
The
court may at any stage before judgment grant leave to amend a
pleading, subject to an appropriate order as to costs.
[2]
In
exceptional circumstances, courts have even entertained and allowed
amendments to pleadings on appeal.
[3]
The
reason for this is fundamental and was expressed as follows in the
memorable passage from
Whittaker
v Roos
:
[4]
“
This
Court has the greatest latitude in granting amendments, and it is
very necessary that it should have. The object of the Court
is to do
justice between the parties. It is not a game we are
playing, in which, if some mistake is made, the forfeit
is claimed.
We are here for the purpose of seeing that we have a true account of
what actually took place, and we are
not going to give a decision
upon what we know to be wrong facts. … Therefore, the
Court will not look to technicalities,
but will see what the real
position is between the parties.”
[7]
The court expressed it as follows in
Rishton v Rishton
:
There
is, however, another principle in our practice, and that is to allow
a party, up to the very last stage of the case, the full
right to
amend, so that the Court may not be deceived or judgment may not be
wrongly given against the party, and also to enable
the Court to know
exactly the nature of the dispute and the facts of the dispute in a
particular case.
[5]
[8]
These
old authorities have repeatedly been reaffirmed by our courts and the
principles were recently conveniently restated by the
Supreme Court
of Appeal in the as yet unreported case of
Media
24 (Pty) Ltd v Nhleko
(“
Media
24
”)
.
[6]
[9]
Where
the trial process is at an advanced stage, and one of the parties
seeks to amend its pleadings; such as where the trial has
already
commenced, evidence has been led, there has been judgment on a
separated issue or, in rare cases, where the matter is already
on
appeal, our courts have developed particular principles to guide the
exercise of the court’s discretion as to whether
to allow the
amendment. Again, there is good reason for this. The
deeper the parties are in the trial proceedings,
the greater the risk
of prejudice to the other party which cannot be remedied through a
costs order alone. In
Caxton
v Reeva Forman,
[7]
Corbett
CJ endorsed the statement of the court in
Trans-Drakensberg
Bank
pertaining to late amendments to pleadings as follows:
“
Although
the decision whether to grant or refuse an application to amend a
pleading rests in the discretion of the Court, this discretion
must
be exercised with due regard to certain basic principles. These
principles are well summed up in the judgment of Caney J in
Trans-Drakensberg Bank
[cited above] at 640H - 641C. In portion of the passage referred to
Caney J states (at 641A) –
‘
Having
already made his case in his pleading, if he wishes to change or add
to this, he must explain the reason and show
prima
facie
that he has something deserving of consideration, a triable issue; he
cannot be allowed to harass his opponent by an amendment
which has no
foundation. He cannot place on the record an issue for which he has
no supporting evidence, where evidence is required,
or, save perhaps
in exceptional circumstances, introduce an amendment which would make
the pleading excipiable’.”
[8]
[10]
The
Supreme Court of Appeal in
Ciba-Geigy,
relying on both
Caxton
v Reeva Forman
and
Trans-Drakensberg
Bank
summarised the considerations that apply when a party wishes to amend
his pleadings
at
an advanced stage of the proceedings
.
First, the applicant must show that it did not delay its application
after it became aware of the evidentiary material upon
which is
proposes to rely. Second, it must explain the reason for the
amendment and show
prima
facie
that it has something deserving of consideration, a triable issue.
The court explained further what is meant by a “triable
issue”;
namely: (a) a dispute which if it is proved on the basis of the
evidence foreshadowed by the applicant in his application,
will be
viable or relevant or (b) a dispute which will probably be
established by the evidence thus foreshadowed. It is important
to note that the court emphasised that in a case of a timeous and
less disruptive application, it will usually not be appropriate
to
require the applicant to indicate how he proposes to establish his
amended case. The court emphasised further that the
applicant’s
prospects of succeeding with its cause of action as amended will
properly only be an element in the exercise
of the court’s
discretion where the amendment is sought at an advanced stage of the
proceedings. The greater the disruption
caused by an amendment,
the greater the indulgence sought and, accordingly, the burden upon
the applicant to convince the court
to allow the amendment.
[9]
These
principles were again applied in
Consol
Glass v Twee Jonge Gezellen
relying
on the above authorities.
[10]
[11]
Against these principles, I consider the
objections raised by the respondents to the proposed amendments to
the particulars of claim.
THE RESPONDENTS’
OBJECTIONS
[12]
The
objections raised by the respondents rest on the contention that the
proposed amendments do not, in certain specified respects,
raise a
triable issue because were they to be allowed they would render the
particulars of claim excipiable. As the respondents
correctly
point out, our courts will not generally allow an amendment which
would render a pleading excipiable.
[11]
[13]
This is not an exception.
Accordingly, the court presented with an objection on this basis must
make a preliminary finding
on whether there is a likelihood that the
proposed amendments, if allowed, would render the particulars of
claim excipiable on
the grounds advanced by the objecting party. The
approach of the court in deciding exceptions is well known and it is
not necessary
to set out the relevant principles exhaustively here.
The approach was encapsulated by the Constitutional Court as follows:
“
In
deciding an exception a court must accept all allegations of fact
made in the Particulars of Claim as true; may not have regard
to any
other extraneous facts or documents; and may uphold the exception to
the pleading only when the excipient has satisfied
the court that the
cause of action or conclusion of law in the pleading cannot be
supported on every interpretation that can be
put on the facts.
The purpose of an exception is to protect litigants against claims
that are bad in law or against an embarrassment
which is so serious
as to merit the costs even of an exception. It is a useful
procedural tool to weed out bad claims at
an early stage, but an
overly technical approach must be avoided.”
[12]
[14]
The respondents raise four essential
grounds of objection and I address these in turn.
First ground of
objection: The absence of Ministerial approval
[15]
The
applicant’s primary cause of action is premised on a so-called
“Facility Agreement” allegedly entered into
between the
applicant and the respondents whereby the applicant, on certain
terms, extended loan funding for film productions.
The applicant is a
public funding entity whose establishment, objects and operation are
governed by the National Empowerment Fund
Act (“
the
Act
”).
[13]
[16]
In
terms of the Act, the governance of the applicant is vested in its
trustees. The trustees have the power to advance funding in
accordance with the objects of the applicant.
[14]
Amongst
other statutory powers, in terms of section 16(2)(k) of the Act, the
trustees have the power to:
“
enter
into
an agreement or arrangement regarding the terms and conditions of
payment of money due to the Trust and the abandonment of
any claims
by the 50 Trust, subject to the approval of the Minister [of Trade
and Industry] with the concurrence of the Minister
of Finance;”
[15]
[17]
The first objection raised by the
respondents, in essence, is that the applicant has not demonstrated
that the approval and concurrence
of the respective Ministers was
obtained prior to the applicant extending funding to the respondents
in terms of the Facility Agreement.
The respondents explain
this ground of objection as follows in the answering affidavit:
“
The
principal basis upon which the respondents oppose the application to
amend the Particulars of Claim is that the applicant (“
the
NEF
”)
has not shown that a triable issue exists in that it has not put up
any evidence to demonstrate that the NEF obtained the
prior approval
of the Minister of Trade and Industry and the Minister of Finance
before purporting to conclude the Facility Agreement,
on which
agreement the NEF relies as its cause of action.”
[16]
[18]
Elsewhere in the answering affidavit the
respondents reinforce this ground of objection as follows:
“
It
will be argued at the hearing of this application that the failure by
the NEF to put up any evidence to show that it obtained
the prior
approval of the Minister of Trade and Industry and the Minister of
Finance before purporting to concluded the Facility
Agreement with
the first, third and fourth respondents, results in the inability of
the NEF to show that a triable issue exists.
For this reason alone,
the amendment should be refused.”
[17]
[19]
In my view there are at least three
fundamental difficulties with this objection. In order to appreciate
these difficulties, it
is necessary to have regard to the relevant
portions of the proposed amended particulars of claim.
[20]
In paragraph 3 of the particulars of claim,
the applicant pleads that on the specified date, the applicant with
the approval and
concurrence of the respective Ministers, entered
into the facility agreement with the first respondent. In paragraph 8
of the proposed
amendment, the applicant pleads:
“
Prior
to the capital amount being loaned and advanced, as aforesaid, the
advanced conditions – as set out in annexure “A”
to
the Facility Agreement – including the conditions precedent to
the facility agreement, were duly fulfilled,
alternatively
waived.” (emphasis added)
[21]
In paragraph 11 of the proposed amended
particulars of claim, the applicant pleads:
“
Alternatively
to paragraph 3 above:
11.1
in the event of the court finding that the Minister of Trade and
Industry, either with or without the concurrence of Minister
of
Finance, did not approve of the conclusion of the Facility Agreement
or that the loan amount to loaned and advanced to the first
defendant, then and in such event it is alleged that the Facility
Agreement is and remains valid and binding, irrespective thereof
whether the Minister of Finance gave prior approval, with or without
the concurrence of the Minister of Trade and Industry for
the finance
agreement to be concluded or the loan amount to be loaned and
advanced to the first defendant. ...”
[22]
Having
regard to the actual wording of the proposed amended particulars of
claim, the first difficulty with this objection is that
it is
contrary to the well-established approach to excipiability as set out
above. The court at the exception stage will take the
pleaded
allegations as proved. The plaintiff is required only to plead the
essential allegations necessary to sustain a cause of
action, and not
the underlying evidence.
[18]
[23]
As
appears from the relevant portions of the pleading (particularly
paragraphs 3 and 8), the applicant’s primary allegation
in this
regard is that the funds were advanced with the relevant Ministerial
approval and concurrence and “pursuant to and
acting in terms
of the facility agreement”,
[19]
and
that all conditions were duly fulfilled. This necessarily includes
statutory conditions. The court will not at the exception
stage
go behind the pleadings in order to assess the evidence in support of
the pleaded case. That is a matter for the trial court.
[24]
In
the course of argument, it was strongly impressed upon me by counsel
for the respondents that in assessing whether the proposed
pleadings
raise a triable issue I may, and should, in the exercise of my
discretion, have regard to the failure by the applicant
to produce
evidence of the alleged Ministerial approval and concurrence in terms
of the Act. In this regard, it was submitted that
the applicant had
had ample opportunity to present such evidence including in the
answering affidavit in the application to dismiss
brought by the
respondents as well as in the affidavits in the present application
for leave to amend. In this regard, counsel
for the respondent
placed particular reliance on the
Consol
v Twee Jonge Gezellen
case (cited above).
[20]
[25]
The reliance on
Twee
Jonge Gezellen
is, in the present
circumstances, in my view misplaced. As appears from my
discussion of the relevant legal principles above,
Twee
Jonge Gezellen
, like
Ciba-Geigy
and
Caxton v Reeva Forman
are all cases which deal with the special circumstances where an
amendment is sought at an advanced stage of the trial proceedings.
In
Twee Jonge Gezellen
,
for example, there had already been a trial on a separated issue and
evidence had already been led. In
Ciba-Geigy
,
the matter was already on appeal. In such cases particular
considerations are relevant to the exercise of the court’s
discretion, and the court may, depending on the nature of the
objection, have regard to reasons for the delay as well as whether
evidence has been advanced to sustain a
prima
facie
case on the proposed amended
pleadings.
[26]
This, however, is not such a case. Whatever
the reasons for the long procedural history, the trial has not
commenced, no trial date
has been set and none of the trial
preliminaries have even occurred. Accordingly, in my view, this
is a case where the default
principle pertaining to objections
applies; namely, that a court will facilitate ventilation of the true
issue between the parties.
[27]
The second fundamental difficulty with this
objection is that it is premised on a specific interpretation of the
Act, and in particular
the provision for Ministerial approval and
concurrence in section 16(2)(k). In this regard, the objection rests
on the premise
that the concurrence and approval is peremptory in
respect of the validity of the agreement, that such concurrence and
approval
must be extended by the respective Ministers in respect of
each and every funding agreement which the applicant enters into and
must be given in advance. These are all questions regarding the
ultimate interpretation of the relevant provisions of the
Act.
[28]
In
argument, counsel for the respondents rightly conceded that the
ultimate interpretation of these provisions of the Act is not
a
question for this court in the amendment application. That concession
was rightly made. In
Twee
Jonge Gezellen
itself the court reaffirmed that courts are reluctant to deal with
ultimate questions of interpretation at the objection stage
when an
amendment of a pleading is being sought.
[21]
In
that case the court was prepared to consider the interpretative issue
only because evidence had already been led.
[29]
Accordingly,
unless the construction urged by the respondents is the only
plausible construction of the relevant provision, this
court will not
readily make a final determination on this issue. As appears from the
portion of the pleadings quoted above, the
applicant in the proposed
amended particulars of claim has pleaded in the alternative that on a
proper construction of the Act,
the absence of prior Ministerial
approval and concurrence is not fatal to the agreement.
[22]
[30]
On
the face of it, the applicant’s is not an implausible
interpretation. Our courts have previously held in relation
to
such statutory provisions that a subsequent contract is not
necessarily invalidated by the failure of the requirement of
authorisation
and that a private party cannot opportunistically rely
on the absence of such authorisations or approvals to escape its
obligations.
[23]
The
question of whether the absence of concurrence and consent by the
relevant Ministers is peremptory and would invalidate any
subsequent
contract, as well as the form that such concurrence and consent must
take (whether it is required to be given in each
instance of funding
or may be given on a more general basis; e.g. by approval of the
applicant’s budget or funding plans)
is a question of the
proper construction of the relevant provisions of this particular
Act. The proper construction of this particular
provision must be
determined with reference to the wording of the provision itself but
read in the context of the Act as a whole
and with due regard to the
purpose of the provisions. This will be a question for the court
seized with finally determining the
issue and in respect of which
evidence may be relevant and admissible. I am reinforced in
this view by the more recent restatements
of our courts regarding the
proper approach to interpretation.
[24]
[31]
The third and final reason that this
objection cannot be sustained in my view is that the primary cause of
action as pleaded by
the applicant in the proposed amended
particulars of claim, as appears above, is that the requisite
conditions, including the statutory
consents, were satisfied.
The allegations that Ministerial consent and approval was not
required is pleaded in the alternative.
As already indicated,
it is not for this court to go behind that primary allegation.
Accordingly, even if the applicant is
ultimately wrong in the
contention that Ministerial approval and consent was not a peremptory
precondition to the agreement, that
forms part of the alternative
cause of action and its failure would not be fatal to the particulars
of claim in their proposed
amended form.
[32]
For each of the above reasons, I consider
that the first objection cannot be sustained.
Second ground of
objection: The pleaded waiver
[33]
As appears from paragraph 8 of the proposed
amended particulars of claim (quoted above), the applicant pleads
that the conditions
precedent to the Facility Agreement were duly
fulfilled. In the alternative, the applicant pleads that these
conditions were
waived.
[34]
The
respondents’ second objection is that the Facility
Agreement
[25]
requires
that any such waiver must be delivered by written notice at any
time. The applicant has not alleged in its particulars
of claim
that it delivered such written notice of waiver and accordingly, on
the respondents’ objection, the Facility Agreement
never came
into existence.
[26]
[35]
In
my view this second ground of objection fails for similar reasons
that pertain to the first ground of objection. First,
the
waiver is plainly pleaded as an alternative cause of action.
Our courts have repeatedly held that exceptions which strike
only at
an alternative cause of action will generally not be allowed.
[27]
The
purpose of an exception is to short-circuit the conduct of an
unnecessary trial and to obviate the leading of unnecessary
evidence.
[28]
An
exception to an alternative cause of action will rarely achieve this
purpose. That is certainly so in the present case.
Even
if one were to excise the waiver cause of action, that would not
remove the need for a trial on the main cause of action.
Accordingly, the reliance on this alternative cause of action is
unlikely to render the pleadings excipiable.
[36]
In any event, in my view, the requirement
of written notice of waiver is a matter for evidence at trial. Should
the applicant be
unable to prove such written waiver in accordance
with the agreement then the alternative cause of action is unlikely
to succeed,
though I obviously express no final view on this.
The respondents contend that the applicant has had ample opportunity
to
produce evidence of the written waiver either as an annexure to
the particulars of claim or in their affidavits in the various
interlocutory applications, including the present application, and
that the applicant therefore has failed to raise a triable issue
in
this respect. For the reasons articulated in relation to the
first objection, I disagree. This is not an instance
where
amendment is sought in the advanced stages of trial proceedings.
Accordingly, the applicant was, and is, under no obligation
to
produce its evidence, which is a matter for trial.
Third ground of
objection: Prescription
[37]
In paragraph 11.2 of the proposed amended
particulars of claim, the applicant introduces a further alternative
cause of action based
on enrichment. In essence it is pleaded that in
the event that the trial court were to find that the Facility
Agreement fails for
want of Ministerial approval and concurrence then
the applicant entered into the agreement in the bona fide but
mistaken belief
that the agreement was valid and binding, that the
first respondent took receipt of and retained the loaned funds, and
that the
first respondent was accordingly unjustifiable enriched by
its receipt and retention of the loaned funds (“
the
enrichment claim
”).
[38]
The
respondents object to the introduction of this alternative enrichment
claim on the basis that it is a new cause of action that
“was
not interrupted by service of summons in this action, which took
place in November 2014”, and that the enrichment
claim has
prescribed.
[29]
[39]
In
argument this objection was expanded to include the complaint that no
evidence is foreshadowed in the application that the applicant
entered into the Facility Agreement and advanced the funding under
the
bona
fide
but mistaken belief that the agreement had been validly
concluded.
[30]
[40]
In my view, as counsel for the applicant
contended, this ground of objection confuses the cause of action with
the underlying debt.
As the court in
Allied
Steelrode (Pty) Ltd v Dreyer
(per Van
der Linde J) stated:
“
For
the purposes of prescription, one is not concerned with the cause of
action but instead one is concerned with a debt. That is
a concept
which is wider than a cause of action. It has been held to
encompass ‘
whatever
is due under any obligation, an obligation to do something or refrain
from doing something
’.”
[31]
[41]
In my view, the alternative enrichment
claim which the applicant now seeks to introduce rests on the same
alleged underlying debt
as the main claim which interrupted
prescription.
[42]
In addition, the further complaints
regarding the failure by the applicant to produce evidence in the
application in support of
the alternative enrichment claim, cannot be
sustained for the same reasons articulated in respect of the first
two grounds of objection.
The applicant was not obliged to produce
evidence at this stage of the pleadings or in support of the
application for leave to
amend. That is a matter for trial.
Moreover, in that the enrichment claim which is sought to be
introduced is an alternative
claim, its excision is unlikely
materially to curtail any subsequent trial proceedings.
Fourth ground of
objection: The calculation of interest
[43]
The final ground of objection raised by the
respondents is that the calculation of interest as pleaded does not
accord with the
provisions for calculation of interest under the
Facility Agreement.
[44]
I note in passing that this is a curious
ground of objection, premised as it is on the validity of the
Facility Agreement, whereas
the respondents’ other objections
rest on the alleged invalidity of the Agreement. Be that as it
may, I do not consider
that this is a valid ground for objecting.
The question of the correct determination of interest is a matter for
the pleadings
and ultimately a question of quantum at trial.
This is therefore quintessentially an issue for the respondents to
raise in
their plea should they see fit to do so. It cannot be
determined at the objection stage.
CONCLUSION AND COSTS
[45]
I find, for the reasons set out above, that
none of the respondents’ objections are sustainable. It
follows that the
applicant must be granted leave to amend its
particulars of claim.
[46]
The default position in respect of costs is
that the amending party will ordinarily bear the costs of the
amendment unless this
is opposed. The applicant duly tendered
the costs of the amendment. The opposition to the amendment and
the objections
raised have occasioned costs that would not otherwise
have been incurred. The question is which party is to bear these
costs. The
applicant contended that costs should follow the result.
[47]
It
was urged upon me by the respondents that should I decline to uphold
one or more of the objections and allow the amendment, then
I should
reserve the question of costs for the trial because it may in due
course, when the issues are fully ventilated at trial,
become
apparent that a ground of objection was not unreasonable. I do
not consider that this is the correct approach. The
question as to
whether the objections to the application for amendment are
reasonable is to be assessed by this court in the present
circumstances.
[32]
[48]
I do not, therefore, see that it is
appropriate to defer this question of costs in the present
application for the trial judge who
will not have had the benefit of
full argument on the merits of the application, as I have.
Accordingly, I believe the appropriate
order is that the costs of the
amendment are to be borne by the applicant up until time of objection
and opposition to the proposed
amendments. Thereafter, costs
are for the unsuccessful party, namely the respondents.
[49]
In accordance with the agreement between
the parties which I mentioned at the outset to this judgment, my
reasoning in respect of
the Cloverleaf Films application applies in
all material respects to the Ironwood Films application. I
accordingly make the following
orders in each of the applications
respectively –
Order
in the Cloverleaf Films application
:
1.
The applicant (plaintiff in the trial
action) is granted leave to amend its particulars of claim.
2.
The particulars of claim are amended in
accordance with the plaintiff’s notice of intention to amend
dated 9 May 2022.
3.
The respondents are directed to pay the
costs of the application, such costs to include the costs of two
counsel, where employed.
Order in the Ironwood
Films application
1.
The applicant (plaintiff in the trial
action) is granted leave to amend its particulars of claim.
2.
The particulars of claim are amended in
accordance with the plaintiff’s notice of intention to amend
dated 9 May 2022.
3.
The respondents are directed to pay the
costs of the application, such costs to include the costs of two
counsel, where employed.
A.
D. STEIN
Acting
Judge of the High Court
Gauteng Division,
Johannesburg
Heard
:
20 February 2023
Judgment
:
28
February 2024
Appearances
:
For
Applicant
:
Adv R Stockwell SC and Adv L Franck
Instructed
by
:
Madhlopa & Thenga Inc.
For
Respondents
:
Adv G Elliott SC
Instructed
by
:
Thomson Wilks Inc.
[1]
See generally
Affordable
Medicines Trust and Others v Minister of Health and Another
[2005] ZACC 3
;
2006
(3) SA 247
(CC);
Moolman
v Estate Moolman
1927 CPD 27.
[2]
Uniform Rules of Court, Rule 28(10).
[3]
Superior Courts Act, 10 of 2013
,
section 19(d)
;
Ciba-Geigy
(Pty) Ltd v Lusshof Farms
(Pty)
Ltd en ‘n Ander
2002 (2) SA 447
(SCA) (“
Ciba-Geigy
”).
[4]
Whittaker
v Roos and Another
1911 TPD 1092
at 1102.
[5]
Rishton
v Rishton
1912
TPD 718
at 719.
[6]
Media
24 (Pty) Ltd v Nhleko
(Nicholls JA, Gorven, Hughes and Goosen JJA and Unterhalter AJA)
2023 ZASCA 77
(29 May 2023), paras [16]-[19] (“
Media
24
”);
and see
Trans-Drakensberg
Bank Ltd (under judicial management) v Combined Engineering (Pty)
Ltd
1967 (3) SA 632
(D) at 638B and 641B (“
Trans-Drakensberg
Bank
”).
[7]
Caxton
Ltd and Others v Reeva Forman (Pty) Ltd and Another
[1990] ZASCA 47
;
1990 (3) SA 547
(A) (“
Caxton
v Reeva Forman
”).
[8]
Caxton
v Reeva Forman
at 565G-I.
[9]
Ciba-Geigy
paras [34]-[43].
[10]
Consol
Ltd t/a Consol Glass v Twee Jonge Gezellen (Pty) Ltd and Another
(2)
2005 (6) SA 23
(C) at [21].
[11]
See, for example,
Krishke
v Road Accident Fund
2004 (4) SA 358
(W) at 363B.
[12]
Pretorius
and Another v Transport Pension Fund and Others
2019 (2) SA 37
(CC), para [15].
[13]
National Empowerment Fund Act 105 of 1998
.
[14]
Act,
sections 3
,
4
and
16
.
[15]
Act,
section 116(2)(k).
[16]
Answering affidavit: para 6.
[17]
Answering affidavit: para 45.
[18]
McKenzie
v Farmers’ Co-operative Meat Industries Ltd
1922 AD 16
at 23; see also
Goosen
v Reed
1955 (2) SA 468
(T) at 481.
[19]
Proposed amended particulars of claim, para 7.
## [20]Consol
Ltd t/a Consol Glass vTwee
Jonge Gezellen (Pty) Ltd2005
(6) SA 23 (SCA)
[20]
Consol
Ltd t/a Consol Glass v
Twee
Jonge Gezellen (Pty) Ltd
2005
(6) SA 23 (SCA)
(“
Twee
Jonge Gezellen
”).
[21]
Twee
Jonge Gezellen
at para 59. In that case the court was prepared to consider the
interpretative issue as evidence had already been led.
[22]
Proposed amended particulars of claim, para 11.1.
[23]
See, for example,
Oilwell
(Pty) Ltd v Protec International Ltd
2001 (4) SA 394
(SCA), paras [15]-[25]. See also,
Nokeng
Tsa Taemane Local Municipality v Dinokeng Properly Owners
Association and Others
[2011]
2 All SA 46
(SCA) at para [14];
Merry
Hill
(Ply)
Limited
v
Engelbrecht
2008 (2) SA 544
(SCA) at para [23].
[24]
Natal
Joint Municipal Pension Fund v Endumeni Municipality
2012
(4) SA 593 (SCA).
[25]
Clause 4.2.
[26]
Objection: paras 2 - 4.
[27]
Dharumpal
Transport (Pty) Ltd v Dharumpal
1956 (1) SA 700
(A) at 796.
[28]
Barclays
National Bank Ltd v Thompson
1989
(1) SA 547
(A) at 553F-I.
[29]
Objection: paras 13 - 15.
[30]
Respondents’ heads of argument: paras 28 and 29.
[31]
Allied
Steelrode (Pty) Ltd v Dreyer
2019 JDR 1973 (GJ), para [25]; see also
Evins
v Shield Insurance Co Ltd
1980 (2) SA 814
(A) at 825F-G and
CGU
Insurance Ltd v Rumdel Construction (Pty) Ltd
2004 (2) SA 622
(SCA), para [6].
[32]
Media
24
para [21].
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