Case Law[2024] ZAGPJHC 565South Africa
Richards v Ramsay Webber INC (4106/2020) [2024] ZAGPJHC 565 (28 May 2024)
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Richards v Ramsay Webber INC (4106/2020) [2024] ZAGPJHC 565 (28 May 2024)
Richards v Ramsay Webber INC (4106/2020) [2024] ZAGPJHC 565 (28 May 2024)
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IN THE HIGH COURT OF SOUTH
AFRICA
GAUTENG LOCAL DIVISION,
JOHANNESBURG
CASE NO
: 4106/2020
DATE
:
2024-05-28
1. REPORTABLE: NO.
2. OF INTEREST TO OTHER JUDGES: NO.
3. REVISED.
28
May 20214
In
the matter between
MARIANNE
RICHARDS N.O. Plaintiff
and
RAMSAY
WEBBER INC
Defendant
JUDGMENT
EX TEMPORE
WILSON,
J
: The defendant, Ramsay Webber,
seeks leave to amend its plea in this trial action. The trial action
concerns a claim on behalf
of the trust of which the two plaintiffs
are trustees.
The plaintiffs say
that they instructed Ramsay Webber to do work in connection with a
loan they intended to advance to John Risley
and Sons (Pty) Ltd. The
essence of the claim is that because of Ramsey Webber’s
negligence in the execution of its mandate
an amount of R3-million
was advanced to John Risley and Sons as a loan without proper
security being put in place in the form,
amongst other things, of a
notarial bond over John Risley and Sons’ movable assets.
In the plea as it
presently stands, Ramsey Webber says there was not a mandate of the
nature alleged by the trust but that it accepts
that a loan in the
sum of R3-million was advanced by the trust to John Risley and Sons.
Ramsey Webber also
notes in its plea an allegation made in the particulars of claim that
if there were a mandate between the parties
there would be an implied
term in the mandate that Ramsay Webber would execute the mandate with
the appropriate diligence.
In an application
for leave to amend its plea, Ramsey Webber wishes to do three things.
The first thing it wishes to do is to introduce
a special plea. I
need say no more about that since the amendment to insert the special
plea has been conceded.
The second thing
Ramsay Webber wishes to do is amend paragraph 5 of its plea to deny
the implied term that the plaintiffs say was
in the mandate the trust
gave to Ramsay Webber. At present, as I have said, the plea merely
notes the allegations concerning the
implied term.
The third thing
that Ramsey Webber wishes to do is to withdraw its admission that
R3-million was advanced to the John Risley and
Sons, to replace that
admission with a denial that R3-million was advanced to the trust,
and to aver that the trust, in fact, only
advanced R1.4-million to
John Risley and Sons, with the other R1.6-million making up the
R3-million loan having been advanced by
the first plaintiff, Ms
Marianne Richards in her personal capacity.
With regard to the
second amendment, I have no doubt that that amendment should be
granted. The fact of the amendment is to confirm
what the parties
understand the position to be in any event. What Ramsey Webber wishes
to aver is that there was no implied term
that it would act
diligently because there was in fact no agreement into which that
term could be implied. Therefore, it escapes
me what prejudice there
could be to the plaintiffs in allowing that amendment.
In relation to
paragraph 7 of the plea, I should at the outset note an ambiguity in
the amendment as it currently stands. It was
not clear to me on the
first reading of the amendment that Ramsay Webber intended to suggest
in paragraph 6.3.1 of the amendment
that the first plaintiff
transferred the sum of R1.6-million into John Risley and Sons’
call deposit account in her personal
capacity. I therefore suggested
to counsel for Ramsay Webber, a suggestion that he gratefully
accepted, that the amendment be altered
to read at paragraph 6.3.1
that:
“
On
or about the 2
nd
of September 2015 the first plaintiff, acting in her personal
capacity, transferred the sum of R1.6-million into the company’s
call deposit banking account.”
I intend to grant leave to amend and
my order granting leave to amend ought to be understood as granting
leave to amend with the
insertion of the words “acting in her
personal capacity” in paragraph 6.3.1 of the amendment.
So phrased, the
amendment of paragraph 7 of the plea amounts to the withdrawal of an
admission. The plea, as it currently stands
admits simply that the
trust advanced a loan in the sum of R3-million to John Risley and
Sons. What the plea will say after it
is amended, is that in fact the
trust only advanced R1.4-million to John Risley and Sons, the other
R1.6-million being advanced
by the first plaintiff in her personal
capacity.
The effect of this
is, of course, to withdraw an admission that 3-million was advanced
to the company and to replace it with an
admission that only
1.4-million was advanced to the company.
Amendments, even
amendments that withdraw admissions, will be granted if there is an
explanation for the withdrawal of the admission
that is in good faith
and that is adequate to allow the Court to understand why the
admission is sought to be withdrawn.
It will also be
required that the party against whom the amended pleading will be
tendered will not suffer incurable prejudice as
a result of the
amendment. In this case I am satisfied that both of those conditions
have been met.
The plea in its
original form was based on information that was available to Ramsay
Webber at the time it was drafted. That information
later changed and
in the course of discussions between the parties and their
representatives, and it became clear, at least to
Ramsay Webber, that
the true situation was that the trust only advanced a portion of the
R3-million, the other portion being advanced
by the first plaintiff
in her personal capacity.
Whether that is
true I need not decide. All I need be satisfied of is that the Ramsay
Webber believes, in good faith, that this
is the situation and that
it wishes, in good faith, to advance a version based on that
information in its plea. There is no suggestion
in this case that
those conditions have not been fulfilled.
The plaintiffs
could point to no prejudice that would result from the amendment
other than perhaps the need to adduce additional
evidence to deal
with it. At this stage of the proceedings that prejudice is plainly
curable, there is no suggestion that the evidence
is not readily
available or that they will not be able to discover or adduce it
before the matter comes to trial. For all of these
reasons the
amendments must be granted as prayed for.
On the question of
costs, although it was mistaken, I am satisfied that the opposition
to the application for leave to amend was
reasonable. The amendment
itself, as I discovered upon reading the file, is not always a model
of clarity. In the circumstances
it seems to me that the costs of
the application for leave to amend ought to be costs in the trial.
For all of those reasons I
make the following order:
1.
The defendant is granted leave to amend its
plea in the manner set out in its notice of amendment dated the 21
st
of August 2023 with the addition of the words, “acting in her
personal capacity” between the words “plaintiff”
and “transferred”, in the first line of paragraph 6.3.1.
2.
The costs of this application will be costs
in the trial.
WILSON, J
JUDGE OF THE HIGH COURT
28 May 2024
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