Case Law[2024] ZAGPJHC 379South Africa
Postma v Ebotse Golf and Country Estate Homeowners Association and Another (2023/038695) [2024] ZAGPJHC 379 (12 April 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
12 April 2024
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Postma v Ebotse Golf and Country Estate Homeowners Association and Another (2023/038695) [2024] ZAGPJHC 379 (12 April 2024)
Postma v Ebotse Golf and Country Estate Homeowners Association and Another (2023/038695) [2024] ZAGPJHC 379 (12 April 2024)
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sino date 12 April 2024
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, JOHANNESBURG)
Case
No: 2023/038695
1.
Reportable: Yes/No
2.
Of interest to other judges: Yes/No
3.
Revised
12
April 2024
IN
THE MATTER BETWEEN:
WENDY
POSTMA
PLAINTIFF
And
EBOTSE
GOLF AND COUNTRY
FIRST DEFENDANT
ESTATE,
HOMEOWNERS’
ASSOCIATION
EKURHULENI
METROPOLITAN
SECOND RESPONDENT
MUNICIPALITY
JUDGMENT
SIWENDU
J
[1] The court is
asked to determine an exception raised by the first defendant against
the plaintiff’s particulars of
claim.
[2]
The plaintiff, Ms Wendy Postma (Ms Postma) is the owner of the
property described as Erf No 3[…] R[…] Ext
5[…]
(the property). The property is in a
gated residential golf
estate, and forms part of a communal ownership scheme
at
Ebotse Golf & Country Club, (the Estate).
[3]
The first defendant, Ebotse
Golf & Country Estate
Homeowners Association NPC (EHOA), is a not-for-profit company
incorporated in terms of
Section 21
of the
Companies Act 71 of 2008
.
The
purpose
of EHOA is to administer and
manage the communal interests of owners in the Estate. It determines
the levies payable as well as
the rights, and obligations of owners,
and maintains communal property. The second defendant is the
City of Ekurhuleni Metropolitan
Municipality but plays no role in
these interlocutory proceedings.
[4]
Ms Postma purchased the property from Mr Vincent
Cockbain
on
27 March 2013.
As
a prospective owner in the Estate, she
was
required to be a member of the EHOA and comply with
the
provisions of the Memorandum of Incorporation (MoI), Estate Rules,
and the Architectural Guidelines of the Association.
[1]
[5]
Ms
Postma alleges that o
n or about 3 May
2020, the slope above the 12
th
Tee of the estate's golf
course in front of her property failed and slipped, resulting in what
was once a mild gradient slope on
the common property, to become a
sharp dangerous gradient. This caused a loss of approximately 72
meters squared of her property,
which washed down the slope onto the
common property of the Estate.
[6]
She
claims that the
gabion wall, which cost
R450 000.00 to acquire and install, was destroyed by the slope
slippage. Due to the damage caused, it was
necessary to install a
safety balustrade on the edge of the property to keep her family and
visitors safe from the newly created
steeper slope. The safety
balustrade cost her R22,000.00 to install.
[7]
Around July 2020 to September 2020, the EHOA built a retaining
structure to remedy the situation.According to Ms Postma,
the
retaining structure had no foundation, and at the time of erection,
cracks in the soil in front of the toe of the retaining
structure
were not filled. The absence of a foundation allowed water to enter
the soil underneath the structure and cause a further
slope failure.
[8]
On or about January 2021, Ms
Postma
's
property experienced a second slope failure which aggravated the
effects of the first slope. Concomitant soil erosion occurred,
and a
dangerous sinkhole formed in the front garden. Cracks in the house's
structure widened and the swimming pool and front garden
became too
dangerous to use. She alleges that the
EHOA
placed sandbags at the toe of the retaining structure which did not
remedy the problem. Erosion still occurred and soil washed
out from
underneath the retaining structure.
[9]
In April 2023, she
instituted an action against
the EHOA and the Municipality.
Ms
Postma,
claims that the slope failure was caused by the EHOA’s
failure to properly maintain and stabilise the common property by
preventing
soil erosion and slope slipping. She alleges that after
the 3 May 2020-event,
EHOA
took
insufficient steps to remedy the consequences and in repairing,
stabilising, and maintaining the slipped slope.
EHOA
failed to maintain the common properly at a high standard or at all
and provide and maintain civil services which includes storm
water
reticulation networks, which serve the erven and/or units in the
estate.
The
Cause of Action
[10]
Ms
Postma has premised her action on four claims
based on (a) contract, being the agreement of sale, which she alleges
was for the
benefit of a third party, and (b) certain exemption
clauses in the MoI and the Estate Rules. In the alternative to the
contractual
claim, (c) she brought a delictual claim, (d) and a claim
based on the common law duty of lateral support. This judgment deals
with the claims that are the subject of the exception.
[11]
The contractual Claim 1 is premised on a breach of the sale agreement
and the MoI. She avers that at the time of the
conclusion of the
agreement, she, and Mr Cockbain (the seller), intended that EHOA,
would also enter into an agreement for its
benefit. EHOA
accepted the benefit by undersigning the Agreement of Sale on 28
March 2013 both as the "Developer"
and the "Estate
Agent".
[12]
The sale agreement refers to
Ebotse Golf
and Estate (Pty) Ltd as the “Esta
te
Developer
.” A commission of R43 320.00 was payable
to the Estate Agent, described as “Ebotse Golf & Country
Estate.”
[13]
It is sufficient for the purpose of the exceptions to state the
alleged failures broadly since they are not in themselves
the reason
for excepting. It is alleged that EHOA was contractually bound to
take preventative steps in stabilising and maintaining
the slope at
issue and provide related civil services and maintenance.
[14]
Ms Postma seeks contractual damages for R11,000,000.00 (eleven
million Rand) based on a depreciation in value by R 4000
000.00 from
R 15 000 000.00 (fifteen million Rand). In the alternative,
she says she suffered damages on R 3 000 000.00
for the
first slope slip, and R 8 000 000.00 for the second slope
slip and resultant sinkhole.
[15]
Simultaneously with the contractual claim, Ms Postma seeks an
interdict against the EHOA based on a continuous breach
by the EHOA,
which she claims causes irreparable damage to her property. The
aim of the interdict is to prevent the risk
of future damage to the
property and harm to her the inhabitants of the property and
visitors. She claims it is the only remedy
available to her to
prevent continuous harm by EHOA.
[16]
A related component of her claim is directed at exemption clauses in
the MoI and Estate Rules. Ms Postma asserts that
the maintenance of
the storm water system and common properties are fundamental to the
sale agreement. An exemption of EHOA from
liability and the exemption
provisions should not apply to her claim. It is impermissible for
EHOA “to exempt itself from
non-compliance with a fundamental
obligation."
[17]
She pleads in the alternative that - to the extent that the exemption
applies, the exemption clause is unreasonable,
unfair, or unjust and
in contravention of section 48(1)
(c)
[2]
of the Consumer Protection Act 68 of 2008 (the CPA). It is also
prohibited by section 51 of the CPA
[3]
as it defeats its purpose, has deceptive provisions, and deprives her
of recourse under the CPA, amongst other contraventions.
She seeks a
remedy in terms of section 52(3) and (4) of the CPA
[4]
.
In the event the Court finds that the exemption clauses apply to her
claim, then the Court must find that EHOA was grossly negligent,
largely on the same grounds alleged in Claim 1 concerning the breach
of contract.
[18]
Claim 3 is based on a delict, pleaded as the alternative to the
contractual claims. It is alleged that EHOA, as
owner of the
common property, walkways, golf area and pathways, exercised its
rights of ownership of its immovable property wrongfully
and
negligently and to the detriment of Ms Postma’s use and
enjoyment of her neighbouring immovable property. EHOA had a
common
law duty, to ensure that the slope on its property, does not collapse
or erode to such an extent that it causes damage to,
or destruction
of, her neighbouring property.
[19]
She seeks delictual damages computed on the same basis as in respect
of the contractual damages sought in Claim 1.
Similarly, as in
respect of the contractual claim, she seeks the same interdict
against EHOA on account of allegations of continuous
action and
inaction causing irreparable damage to the property.
The
exception
[20]
EHOA excepts to the particulars of claim on the following grounds:
i
the claim based on
contract, (the sale agreement), lacks the averments necessary to
sustain a cause of action against it, alternatively
the averments are
vague and embarrassing.
ii
A mandatory interdict to
prevent future subsidence is bad in law. An order compelling the EHOA
"to remedy and repair the damage
to plaintiff’s house,
swimming pool and garden" is irreconcilable with the claim for
contractual damages for the loss
suffered because of the same damages
which she asks the court to compel the first defendant to repair.
iii
Properly construed, the
exemption clauses merely prevent the Ms Postma from holding the EHOA
liable for damages suffered by her,
it does not exempt EHOA from the
obligation to maintain the stormwater system and common property.
Iv
The CPA claim is
predicated on the contractual obligation and has no application to
the relationship between EHOA and Ms Postma.
To the extent that the
sale agreement does not create the contractual relationship, the
particulars of claim are bad in law.
v
In so far as the claim
based in delict and that based on the duty to provide lateral
support, both claims are accompanied by the
mandatory interdict to
prevent future subsidence. The interdictory relief, which is coupled
with the prayer for an order to repair
the damage to the property is
irreconcilable with the claim damages for the loss suffered due to
the same damages which she asks
the court to compel the first
defendant to repair. The claim is bad in law.
Analysis
[21]
Ms Mouton (for Ms Postma) and Mr West (for EHOA) are in broad
agreement about the purpose, approach and principles governing
exceptions - which is to amongst others raise a
substantive question of law which may have the effect of settling the
dispute between the parties and or dispose of the case or a portion
thereof in an expeditious manner.
[22]
They accept that an excipient who alleges that a summons does not
disclose a cause of action must show that upon any
construction of
the particulars of claim, no cause of action is disclosed. The court
will accept, as true, the allegations pleaded
by the Plaintiff to
assess whether they disclose a cause of action manner.
[5]
[23]
As Mr West contended, the guidance by the Supreme Court of Appeal in
Telematrix
(Pty) Ltd t/a Matrix Vehicle Tracking v Advertising Standards
Authorit
y
[6]
is that an “exceptions should be dealt with sensibly.
They provide a useful mechanism to weed out cases without legal
merit. An over-technical approach destroys their utility.”
I deal with each of the exceptions below.
Does
the contractual claim disclose a cause of action against EHOA?
[24]
Ms Postma alleges that EHOA was represented by a duly authorised
person, Mr Cockbain, alternatively D. Harding, alternatively
a
representative unknown to her. She also alleges that the sale
agreement was for the benefit of EHOA as a third party. Further
that
EOHA and the Developer, Ebotse Golf and Country Estate are the same.
[25]
The averment that EHOA was a party to the sale agreement concluded
with Mr Cockbain is not ascertainable from the sale
agreement. Clause
1.22 of the sale agreement defines the parties to the sale as “the
seller and the purchaser.” The
seller and the purchaser are in
turn identifiable by reference to the offer. Contrary to her
averment, the offer was not signed
by EHOA or its representative.
There is no reference from the sale agreement that Mr Cockbain acted
in a representative capacity
on behalf of EHOA. Further, the
assertion that EOHA and the Developer, Ebotse Golf and Country Estate
are the same is not borne
out by the definition of these parties in
the sale agreement.
[26]
It is indeed so that in terms of Clause 6 of the sale agreement, as a
new property owner, Ms Postma automatically became
a member of the
EHOA on registration of the transfer. In this way, Ms Postma
undertook to be contractually bound by the Rule of
the EHOA. A mere
reference to the EOHA in the sale agreement, for purpose of ensuring
her automatic membership does render EHOA
a party to the sale
agreement.
[27]
Given the sale involves the alienation of land, regulated by the
Alienation of Land Act 68 of 1981
, the identity of the parties is an
essential term of the contract
[7]
.
Parole evidence is not admissible to vary the provisions of the
sale agreement in so far as the identity of the parties
to it.
[8]
[28]
It was submitted that the sale agreement read with the MoI were for
the benefit of EHOA. However, the nature of the benefit
bestowed and
how it was intended that EHOA
should be empowered to adopt and become a party to the contract is
not pleaded.
[29]
As I understand the argument, t
he “benefit”
allegedly conferred on EHOA is premised on the obligation placed on
Ms Postma to take up automatic membership
in EHOA upon the transfer,
pay levies and abide by the MoI, the Estate Rules and Architectural
Guidelines.
[30]
T
here
is no
express
provision in sale agreement to support the construction
advanced.
Although the terms ensure that Ms Postma is deemed a member of
EHOA it is difficult to see how the provision confers
a benefit to
EHOA other than merely safeguarding that new or prospective owners
accept the obligation to be a member of EHOA and
will abide by the
Rules of communal living.
The
mere fact that the contract contains some benefit for a third party
does not justify the conclusion that it is a contract for
the benefit
of that third party in the legal sense.
[9]
[31]
Lastly, it will be recalled that the rights and obligations under the
sale agreement are not divisible in a
stipulatio
alteri
.
[10]
Taken to its logical conclusion, the submission means is that EHOA
would be a party to all other disputes which could arise
in respect
of the sale between Ms Postma and Mr Cockbain. The argument connotes
that EHOA was more than a Homeowners Association
looking after
communal interests of all property owners in the Estate without
pleading a basis to support this in the particulars
of claim. The
exception must be upheld. It fails both to disclose a cause of action
and lack the necessary averment to sustain
a cause of action.
The
exemption clauses and the CPA
[32]
The pleading based on the application of the CPA is predicated on
EHOA being a party to the sale agreement. The second
aspect in
respect of the contractual claim involves the disclaimer in Clause 73
of the MoI, and Rule 11 of the Estate Rules.
[33]
The application of the CPA is linked inextricably with the existence
of the sale agreement between Ms Postma and EHOA.
Moreover, it must
be shown that EHOA was a supplier as contemplated in the CPA. As I
have endeavoured to show, the pleading fails
on the same basis as the
contractual claim, since it does not reveal that EHOA was a party to
the sale agreement.
[34]
Next is the reliance based on the provisions of the MoI and the
Estate Rules. It is claimed that certain clauses exempt
EHOA from its
obligations to maintain the stormwater system and common properties.
The pleading falls to be read with Clause 4
of the MoI which states
amongst others that:
“
4.1
The main business of the Company is…….
4.1.2
to provide end maintain civil and electrical services (including
streets, water, sewerage and storm water reticulation networks)
which
serve the erven and/or units situated in the Ebotse Golf &
Country Estate, insofar as the local authority, for whichever
reason,
may not be liable for or obliged to provide and maintain such
services….”
[35]
On a plain reading, the averment is inconsistent with the
provisions of the above clause. As in any event was contended
by
EHOA, the exemption clause/s merely prevent the Ms Postma from
holding EHOA liable for damages suffered by her (in terms of
the
alleged subsidence). The provision does not exempt it from having to
comply with an obligation to maintain the stormwater system
and
common property. For reasons set out above, the pleading and the
submissions made must follow the same fate as the contractual
claim.
It both fails to disclose a cause of action and/ or lack the
necessary averment to sustain a cause of action and is thus
excipiable.
Is
the mandatory interdict compatible with delictual and a claim for
lateral support?
[36]
As already alluded to above, Ms Postma seeks preventative
interdictory relief simultaneously with each of her claims
on the
grounds that EHOA is in continuous breach which causes irreparable
damage to property. She avers that an interdict is the
only remedy to
prevent continuous harm by EHOA's action and/or inaction.
Ms
Postma relies on the same facts in her claim in delict and the
alternative claim for lateral support to seek relief for a
preventative
interdict. The requirements for an interdict are well
known.
[11]
Although the
interdict has different consequences for each claim, it is prudent to
deal with the issues raised in composite. The
ultimate result
of the order sought, is to prevent, repair thus remedy the damage.
[37]
The final interdictory relief is framed as follows:
“
3.5.1
immediately, within one week of this Court order, take high standard
temporary measures on advice of a specialist, to secure
the slope in
front of Plaintiff's home and the swimming pool and front part of her
garden.
3.5.2
within three months of this Court order, take high standard permanent
measures on both Plaintiff's property and on First Defendant's
property to protect the Plaintiff's property, from further slope
slipping between the Parties properties and from Plaintiffs property
further damaging or collapsing.
3.5.3
to remedy and repair the damage caused by the slope's slipping and
the storm water, including the sink hole and damage to
Plaintiff's
house, swimming pool, and garden,
3.5.4
to a high standard, re-instate all the land that has been lost by
Plaintiff to First Defendant since 3 May 2020. In the alternative
to
Claim 3: D. CLAIM 4 against 1st Defendant.
[38]
The difficulty with the interdictory relief as currently pleaded is
it gives rise to a duplication of claims. A
s
the Constitutional Court held in
Le
Roux and Others v Dey; Freedom of Expression Institute and Another
as
Amici
Curiae,
[12]
the
same conduct should not render a defendant liable for two causes of
action. It is impermissible for her to seek both damages
simultaneously with the preventative interdict with remedies in
respect of the same property. The interdictory relief as currently
framed is not compatible with the delictual claim for monetary
damages. To this extent, the pleading is bad in law.
[39
]
In so far as the claim based on a common law duty to provide lateral
support, EHOA concedes that
the right to lateral
support caused by the disturbance is an integral part of our law. It
is an integral part of Ms Postma’s
entitlement to the use and
enjoyment of her property.
EHOA
takes no issue with the cause of action.
[40]
The Court accepts that compensation for reasonable cost of repairing
the damage caused by withdrawal of lateral support
is competent in
our law, and to this extent Ms Postma is entitled to bring an action
to be recompensed on this score (the extent
proved).
[13]
[41]
The point of departure with the pleading as it stands is the
principle set out in
Gijzen
v Verrinder
[14]
(Gijzen)
where the Court held that “i
n
subsidence cases there is usually no unlawful act, and the cause of
action is damage and damage only…. prospective damages
are not
recoverable, and each successive subsidence, although proceeding from
the original act or omission, gives rise to a fresh
cause of action,
the cause of action not being the act which caused the loss...”
[42]
The principle regarding prospective damages in
Gijzen
draws from an earlier judgment in
John
Newmark & Co (Pty) Ltd v Durban City Council
[15]
(
Newmark).
The
Authors in
Silberberg
and Schoeman’s
confirm the position which
has
been accepted in our law.
[16]
Although the authors alluding to
Gijzen
contend that unlawfulness should apply in cases of a withdrawal of
support, they agree that n
egligence
is not required, and liability is strict.
[43]
Ms Potsma’s case is not founded on a withdrawal of support. As
I read the pleadings, there are allegations of negligence.
In the
same vein, a
n
unlawful act (whether committed or apprehended) predicates an
interdict. Yet, in respect of the common law duty to provide lateral
support, the cause of action is based on damage only. The
inherent conflict in the various causes of action is evident.
[44]
In any event, the point of objection based on the principle in
G
ijzen
is simply that while an interdict restraining EHOA from depriving Ms
Postma lateral support is a possible remedy, a mandatory preventative
interdict cannot be granted on the ground that future loss is
probable. For these reasons, the pleading is bad in law and is
excipiable.
[45]
The exception is mounted on both the grounds envisaged in Rue 23(1)
of the Uniform Rules of Court. The defects can be
cured.
In
the result, I make the following order:
a.
The exception is upheld
b.
Leave is granted to the plaintiff to amend its particulars within 10
days of the order, should she so choose, failing which
Claim 1 and 2,
as well as Claim 3 and 4 only insofar as a mandatory interdict is
sought, shall be deemed to have been struck out.
c.
The plaintiff is ordered to pay the costs of the exception.
SIWENDU
J
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION,
JOHANESBURG
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 12 April 2024.
Date
of appearance: 13 March 2024
Date
Judgment delivered: 12 April 2024
Appearances:
For
the Excipient/ First Defendant:
Advocate H P West
Instructed
by:
Michael Krawitz and Co
For
the Plaintiff:
Advocate C J Mouton
Instructed
by:
Kruger and Okes Attorneys
c/o
J Swanepoel Attorneys
[1]
Clause
6 of the sale agreement incorporates the requirements as well as
other obligations of purchasers.
[2]
The section prohibits a supplier from requiring a consumer, or other
person to whom any goods or services are supplied at the
direction
of the consumer—(i) to waive any rights; (ii) assume any
obligation; or (iii) waive any liability of the supplier,
on terms that are unfair, unreasonable or unjust, or impose any such
terms as a condition of entering into a transaction.
[3]
The prohibition against defeating the purpose of the CPA include the
waiver referred to above.
[4]
Amongst the remedy a court may grant is to declare the contract
unfair and unjust and order a restoration of the money or property
to a consumer, amongst others.
[5]
Merb
(Pty) Ltd v Matthews
Case
No 2020/15069 dated 16 November 2021
[6]
2006
(1) SA 461
(SCA) at paragraph 3
[7]
Section 2 (
1) states that
no alienation of land after the commencement of this section shall,
subject to the provisions of
section
28
,
be of any force or effect unless it is contained in a deed of
alienation signed by the parties thereto or by their agents acting
on their written authority.
[8]
Mineworkers’Union
v Cooks
1959
1 SA 709 (W) 721 A
[9]
Protea
Holdings Ltd and Another v Herzberg and Another
[1982] 4 All SA 614 (C)
[10]
McCullogh
v Fernwood Est Ltd
1920 AD 204.
[11]
Setlogelo
v Setlogelo
1914
AD 221
at 227
[12]
2011
(6) BCLR 577
(CC). Although there are separate judgments, all the
Justices agree on this point.
[13]
Gordon
v Durban City Council
1955
(1) SA 634 (N) 639 A
[14]
[1965]1 ALL SA 476 (D)
[15]
1959 (1) SA 169
(N)
[16]
Silberberg and Schoeman’s: The Law of Property Sixth
Edition; see also
Foentjies
v Beukes
1977
(4) SA 964
(E)
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