Case Law[2024] ZAGPJHC 586South Africa
Fine and Country South Africa (Pty) Ltd v Tradelink Properties (Pty) Ltd (2024/048486) [2024] ZAGPJHC 586 (21 June 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
21 June 2024
Headnotes
the procedure envisaged by rule 6(12)(b) is not there for the taking. It is for the applicant to show that he or she will not obtain substantial redress at a hearing in due course.[8] [11] The circumstances which have led to this matter being heard on an urgent basis are that:
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Fine and Country South Africa (Pty) Ltd v Tradelink Properties (Pty) Ltd (2024/048486) [2024] ZAGPJHC 586 (21 June 2024)
Fine and Country South Africa (Pty) Ltd v Tradelink Properties (Pty) Ltd (2024/048486) [2024] ZAGPJHC 586 (21 June 2024)
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sino date 21 June 2024
FLYNOTES:
CIVIL
PROCEDURE – Founding affidavit –
Disclosing
cause of action
–
Replying
affidavit cannot be used to augment applicant's case –
Urgency is self-created – Application premised
upon
cancellation of contract due to breaches – Contract and
breaches are not dealt with in detail by applicant if
at all –
Failed to make out its case in founding papers which are vague –
New case made out on replying affidavit
– Application
dismissed.
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
Number:
2024-048486
1.
REPORTABLE: YES / NO
2.
OF INTEREST TO OTHER JUDGES: YES/NO
3.
REVISED: YES/NO
In
the matter between:
FINE
AND COUNTRY SOUTH AFRICA (PTY)
LTD
Plaintiff
and
TRADELINK
PROPERTIES (PTY)
LTD
Defendant
Urgent
application - Final interdict sought - Lack of urgency - Founding
papers not making out case - Dispute of facts - Dismissal
of
the urgent application.
JUDGMENT
NHARMURAVATE,
AJ:
Introduction
[1]
This is an urgent application wherein Fine and Country South Africa
(Pty) Ltd (“Applicant”) seeks to interdict
Tradelink
Properties (Pty) Ltd (“Respondent”) from trading and
using all its business activities under its brand and
intellectual
property including: -
a.
Holding itself to the public and the real estate sector as the
applicant’s license.
b.
The use of the applicant’s brand on its office, office
building, business assets and/or equipment of any nature.
c.
The use of the Applicant’s brand on its stationery including
offers to purchase, rental agreements, sole mandate
documents,
letterheads, email signature and business cards.
d.
Trading, operating and listing properties under the Applicant’s
branding and intellectual property and related media
including
Websites; Social Media Platform including WhatsApp, Facebook and
Instagram; Third party syndicated portals, including
Property24 and
Private Property and ImmoAfrica.
[2]
Lastly, that the Respondent be ordered to pay the
costs of this application on party and party scale including costs of
two Counsel.
The Respondent is opposing the matter as in its view the
matter is not urgent, urgency is self-created by the Applicant. The
Respondent
also raise a few points
limine
that is the existence of a dispute of
fact,
lis pendense
,
non-joined
amongst
others.
[3]
Subsequent to that, the points in
limine
of
lis pendense
and
non-joinder
were abandoned by the Respondent.
Background
Facts
[4]
The Applicant entered into the written agreement
in terms of the license agreement which granted the Respondent a
license to trade
under the Applicant’s brand. Around 12 April
2024 the Applicant terminated their agreement with the Respondent
citing various
breaches that had been committed by the Respondent.
This is after the Applicant had called upon the Respondent in writing
to rectify
the breaches committed in terms of the agreement. The
termination of contract between the parties resulted in the
Respondent losing
the right to use the Applicant’s trademark
(rights to market and sell the properties using their brand).
[5]
In urgent court the Applicant has to satisfy the
requirements for urgency before merits can be dealt with. However
during the argument
of the matter both parties argued the issue of
urgency inclusive of the merits of the matter.
Urgency:
Is the Matter Urgent
[6]
The
test for urgency has been repeated in plethora cases that a
party must show a lack of a substantial remedy in due
course. A
litigant that approaches the court for relief on an urgent basis must
comply with Uniform rule 6(12)(b).
[1]
The rule reads as follows: -
“
In
every affidavit filed in support of any application under paragraph
(a) of this subrule, the applicant must set forth explicitly
the
circumstances which is averred render the matter urgent and the
reasons why the applicant claims that applicant could not be
afforded
substantial redress at a hearing in due course.”
[7]
The
rule consists of two legs to be present before urgency can properly
be founded, namely: first, the urgency should not be self-created,
[2]
and secondly, it must provide reasons why substantial relief cannot
be achieved in due course. Rule 6(12)'s procedure is not available
for the mere taking, and the rule is so significant.
[8]
In
East
Rock Trading 7 (Pty) Ltd v Eagle Valley Granite (Pty) Ltd
,
[3]
Notshe AJ stated as follows:
“
The
import thereof is that the procedure set out in rule 6(12) is not
there for taking. An applicant has to set forth explicitly
the
circumstances which he avers render the matter urgent. More
importantly, the Applicant must state the reasons why he claims
that
he cannot be afforded substantial redress at a hearing in due course.
The question of whether a matter is sufficiently urgent
to be
enrolled and heard as an urgent application is underpinned by the
issue of absence of substantial redress in an application
in due
course.”
[9]
In
MM
v N M and Others
,
[4]
the Court stated that:
“
The
import of this is that the test for urgency begins and ends with
whether the applicant can obtain substantial redress in due
course.
It means that a matter will be urgent if the applicant can
demonstrate, with facts, that the applicant requires immediate
assistance from the court, and that if his application is not heard
on an urgent basis that any order that he might later be granted
will
by then no longer be capable of providing him with the legal
protection he requires.”
[10]
In
the case of
In
re Several Matters on the Urgent Court Roll
,
[5]
Wepener J took the opportunity to reiterate certain well-accepted
principles on the question of urgency:
a.
He
reiterated what was said about the requirements of rule 6(12)(b).
[6]
b.
He
pointed out that the Uniform Rules are delegated legislation, have
statutory force and are binding on the Court.
[7]
c.
He
held that the procedure envisaged by rule 6(12)(b) is not there for
the taking. It is for the applicant to show that he or she
will not
obtain substantial redress at a hearing in due course.
[8]
[11]
The circumstances which have led to this matter
being heard on an urgent basis are that:
a.
On 19 March 2024 the Applicant communicated the
breaches committed by the Respondent.
b.
On 28
March
2024 the Respondent denied the breaches alleged and they pointed out
a breach committed by the Applicant in that they sold
their franchise
to a third party and allowed it to operate in Helderfontein which
encroaches upon their area of operation. They
further suggested a
private arbitration be held with the assistance of a retired judge on
an expedited basis.
c.
On 5 April 2024, the Applicant rejected the
suggestion of arbitrating the matter and they denied having any
agreement with any third
party which infringes upon their agreement.
Thereafter, gave the Respondent 7 days’ notice that they were
cancelling their
agreement with them. In this correspondence they
also set out terms and conditions of the cancelation.
d.
On 9 April 2024, the Respondent responded by
reiterating their point that they have not committed any breach in
terms of the agreement,
and they further substantiated that they have
the required evidence to prove that indeed they were not in breach
with the agreement.
They communicated that the purported cancellation
of the contract in the absence of a judicial determination of the
dispute demonstrated
their desire to terminate the license agreement
at all costs. The Respondent informed the Applicant that the
purported cancellation
was unlawful. An undertaking was sought from
the Applicant that the contract will not be cancelled, and should
they not receive
such agreements they will launch an urgent court
application.
e.
On 22 April 2024 the Applicant sent a letter to
the Respondent requesting them to seize using their brand. On 23
April 2024 the
Respondent advised that they will be instituting a
legal action to challenge the cancellation of the trademark
agreement.
f.
Subsequent to the letter sent to the Respondent to
cease and desist the Respondent replied through a correspondence
dated 30
April 2024
made
it explicitly clear that they would continue trading and concluding
their business activities under the Applicant’s brand
and
intellectual property as in their view the contract had been
cancelled unlawfully.
[12]
Mr. Hollander for the Applicant argued that the
correspondence of 30 April 2024 was the only time that the Respondent
made their
intention known that they would continue trading and
concluding their business activities under the Applicants brand and
intellectual
property.
[13]
In rebuttal,
Mr. Cassim
for the Respondent argued that this matter was not urgent as it is a
commercial dispute which cannot be resolved by way
of an urgent
application. Mr. Cassim argued that urgency was self-created in that
the applicant has always known that the Respondent
disputes the
breaches which they are alleged to have committed. This was
demonstrated through a correspondence, as early as the
28 March 2024
that had suggested that the parties go through the arbitration
process in line with
clause 9.11
of the agreement.
[14]
Mr. Hollander for the Applicant in reply argued
that the matter was urgent as they had failed to address the breaches
committed.
All that the Respondent did was to give a blanket denial
of the breaches committed. The Applicant also argued that it has no
obligation
to go through the process of an arbitration as some of
these breaches were admitted by the Respondent. The Applicant argued
that
the reason why they were before urgent court was because there
was no substantial remedy which was available to them in due course
as the harm was continuing which was causing the Applicant
unquantifiable damage.
[15]
The test for urgency is a lack of a substantial
remedy in due course. In my view the argument made by the Respondent
has merit in
that the urgency of this matter is self-created by the
Applicant. This is simply because the applicant invoked
clause
9.11
of the agreement which was a
suggestion to arbitrate the matter through their letter dated 28
March 2024. This clause was invoked
before the purported cancellation
was done.
[16]
The Applicant rejected the proposal to settle this
dispute through the arbitration process which would be conducted by a
retired
Judge. The Applicant did not give or detail any probable
reason why they did not want to arbitrate the matter in line with
their
agreement which stipulates that:
“
9.11
Suggestions, complaints and disputes may be set before the steering
committee who will arbitrate and give guidance and suggestions
towards the direction of the company.”
[17]
In my view, clause suggests that the parties’
complaints, suggestions including disputes may be set before the
Steering Committee.
The Applicant did not even demonstrate that it
made any attempts to table the complaints it had to the Steering
Committee. It is
not clear why this route was not preferred by the
Applicant as both parties are bound by it. The argument raised by the
Applicant
in this regard is flawed. The request made by the
Respondent was made as far back as 28 March 2024. It is not a
requirement of
the contract for a party to refuse arbitration on the
basis of a failure to address the complaint (which is in this
instance was
the breach). Complaints and disputes may be set for
guidance and suggestions to move the company forward. One has to
wonder why
this was not preferred as a mechanism to move both
companies forward since they have been in this licence agreement
since 2016.
My prima facie view is that there may be merit in the
Respondent’s argument that the Applicant wishes to make them
sign the
new sub-licence agreement under duress.
[18]
The Respondent suggested that the arbitration be
heard on an urgent basis to try and resolve the disputes which the
parties had
amongst each other. In my view, arbitration amounts to a
substantial remedy available to the parties. In fact, had the option
of
arbitrating the matter been accepted then by the Applicant perhaps
the issues would have been resolved before the hearing of thid
urgent
application.
[19]
In my opinion, urgency is self-created as
rightfully argued by Mr. Cassim for the Respondent
clause
9.11
was invoked earlier (more than 40
days) before the hearing of this matter. The Applicant was aware that
the Respondent does not
accept the cancellation of the agreement or
the purported breaches. This point was reiterated by the Respondent
in several correspondences
to the Applicant. The correspondence
between the parties demonstrates the need for the parties to
arbitrate their matter, which
is a fast and effective process.
[20]
Mr. Cassim for the Respondent argued that even
though they are of the view that the matter is not urgent perhaps the
court needs
to look at the matter as if it urgent to address the
other two points of law to deal with the matter in its entirety. It
is also
my view and for the convenience of both parties that this
court also considers the rest of the arguments raised as it would be
in the interest of justice.
[21]
The second point
in
limine
for consideration is that the
Applicant has made out a new case on the reply.
The
Applicant’s Founding Papers
[22]
The Applicant’s founding affidavit under
paragraph 19 alleges that the Respondent committed a number of
breaches of the Tradelink
agreement and are detailed in a
correspondence dated 19 March 2024. The Respondent contends that all
the necessary allegations
the Applicant relies on must appear in the
founding papers as it is generally not allowed to supplement the
facts on the replying
papers. Mr. Cassim for the Respondent further
argued that two additional breaches were raised that is the
Betterbonds issue and
the
clause 6.19
of the license agreements which is related to
technology to maintain the high standards of current property and
client information.
[23]
In
rebuttal the Applicant argued that there was no new case made out on
the replying affidavit. It was merely an explanation, or
a further
expatiation of the issues already dealt with in the founding papers.
Mr. Hollander pointed to the breach correspondence
dated 19
March
2024 without directing this court to the sufficient facts which need
to appear on the founding papers.
It
is trite that an applicant must make out its case in its founding
affidavit. In
Transnet
Ltd v Rubenstein
,
[9]
the
Supreme Court of Appeal held that due to the nature of applications,
the affidavit plays a dual role in the application in that
they form
both pleadings and the evidence upon which the applicant relies.
[10]
An applicant's pleadings contain the legal basis of the claim under
which an applicant has chosen to invoke the court's competence.
In
other words, not only the formal terminology of the notice of motion,
but also the contents of the supporting affidavits must
be
interpreted to establish what the legal basis of the applicant's
claim is.
[11]
[24]
In
Airports
Company of South Africa (SOC) Ltd v Tswelokgotso Trading Enterprise
CC
,
[12]
the court held that:-
“
Consequently,
the applicant must set out sufficient facts in the founding affidavit
to disclose a cause of action, that is, the
founding affidavit must
be self-contained. The replying affidavit ( and in this instance the
supplementary affidavit) cannot be
used to augment the applicant's
case.”
[25]
This
application is premised upon the cancellation of a contract due to
the breaches which were committed by the Respondent. It
is a
foundation of our law specifically in motion proceedings that the
Applicant must make out its case in the founding papers
not in the
replying papers. As stated in
Business
Partners Ltd v World Focus 754 CC,
[13]
that in application proceedings the affidavits constitute not only
the pleadings but also the evidence and that an applicant must
therefore make out his case in his founding affidavit and that he
must stand or fall by the allegations contained therein. This
is
simply because permitting such will mean that the Respondent would
not have had the opportunity to address those issues sufficiently
and
this amounts to gross prejudice to the Respondent who would have
filed the answer. This will also transgress in the respondent
constitutional rights.
[26]
The
rule against allowing new matter or new grounds in reply was held in
Bayat
and Others v Hansa and Another,
[14]
to be capable of being departed from only in exceptional
circumstances. The principle nonetheless remains that a case must be
made out in the founding papers. Its rationale promotes legal
certainty. This is evident from the contemporary approach adopted
by
the Constitutional Court in
South
African Transport and Allied Workers Union and another v Garvas and
others
,
[15]
where it held as follows:
“
Holding
parties to pleadings is not pedantry. It is an integral part of the
principle of legal certainty, which is an element of
the rule of law,
one of the values on which our Constitution is founded. Every party
contemplating a constitutional challenge should
know the requirements
it needs to satisfy and every other party likely to be affected by
the relief sought must know precisely
the case it is expected to
meet.”
[27]
In
Elegant
Line Trading 257 CC v MEC for Transport, Eastern Cape
,
[16]
Rugunanan J, held stated that:-
“
In
motion proceedings the affidavits constitute both the pleadings and
the evidence and the issues and averments in support of the
parties’
cases should appear clearly therefrom. It is trite that an applicant
must make out its case in the founding affidavit
which must contain
sufficient facts in itself upon which a court may find in the
applicant’s favour.”
[28]
In
fact, in
Bowman
NO v De Souza Roldao
,
[17]
Cohen, J concluded:
"But
none of these cases goes to the length of permitting an applicant to
make a case in reply where no case at all was made
out in the
original application. None is authority for the proposition that a
totally defective application can be rectified in
reply. In my view,
it is essential for applicant to make out a prima facie case in its
founding affidavit."
[29]
In my view the Applicant’s founding papers
need to demonstrate and address the contract, the breach of contract
and the cancellation
of the contract. In my opinion these need to be
pleaded with sufficient particularity on the founding affidavit not
elsewhere.
The contract and the breaches
are not dealt with in detail by the Applicant if at all. The alleged
breaches committed by the Respondent
are an integral part of this
application in my opinion. All that the Applicant merely deposes
under paragraph 19 in relation to
the breach are as follows:
“
Tradelink
committed a number of breaches of the trade link agreement. These
breaches we detailed in a letter addressed to Tradelink….”
The
entire founding papers thereafter do not address or detail the
breaches which were committed by the Respondent, at the very
least
this would have given the Respondent an opportunity to answer these
allegations. Pleading with precision on the founding
papers is a
requirement in our law. In my opinion, the respondents cannot be
expected to fully ventilate these issues as they are
not
appropriately pleaded by the Applicant.
[30]
Annexure
FACC3
purportedly deals with the breaches “
in
detail”
as per the founding
papers filed by the Applicant. This annexure supports the vague
allegation made under paragraph 19 of the Applicants
founding papers.
This correspondence in my opinion does not amount to facts pleaded on
the face of the founding papers but rather
serves as proof of a fact
pleaded. The Respondent cannot therefore be expected to plead in
detail to facts which are not in existence.
There is no expectation
for the Respondent to plead to a letter attached, in motion
proceeding, as a party stands and falls by
its papers.
[31]
It
is not open to the parties to merely annexes to their affidavit
documentation and to request the court to have regard to it without
laying a proper basis for it on the face of the affidavit. What is
required is the identification of the portions relevant which
reliance is placed and an indication of the case which is sought to
be made out of the strength thereof must appear on the affidavit.
It
cannot be expected of a party to trawl through lengthy and anxious to
the opponent’s affidavit to speculate on the relevance
of the
facts contained in such annexures since trial by ambush is not
permitted within our courts.
Alternatively,
it is not for the Respondent to establish through such annexure(s) if
there is material that adds substance to lose
averments in an
affidavit.
[18]
[32]
The rule still stands that
all
the necessary allegations upon which the applicant relies must appear
in their affidavit as they will not generally be allowed
to
supplement the affidavit by adducing supporting facts in a replying
affidavit. In my opinion, the Applicant’s case is
that the
Respondent committed breaches which were subsequently not remedied,
it thereafter cancelled the contract in line with
the breaches. At
the very least these breaches should have been outlined in the
applicant’s founding papers, which is not
the case herein. All
the Applicant simply did was to make a very vague statement and
thereafter attached a correspondence. The
correspondence does not
amount to an averment which the Respondent must answer accordingly.
Under these circumstances it amounts
to evidence which supports the
averment made which does not compel the Respondent to answer in
detail.
[33]
In
motion proceedings the affidavits constitute both the pleadings and
the evidence and the issues and averments in support of the
parties’
cases should appear clearly therefrom.
[19]
A founding affidavit must contain sufficient facts in itself upon
which a court may find in the applicant’s favour. it is
not
permissible to make out new grounds for the application in the
replying affidavit.
[20]
[34]
It
is to the founding affidavit that a court will turn to determine what
the complaint is. In
Director
of Hospital Services v Mistry,
[21]
the court held that: -
“
When,
as in this case, the proceedings are launched by way of notice of
motion, it is to the founding affidavit which a Judge
will look
to determine what the complaint is … and as been said in many
other cases: “… an applicant must stand
or fall by his
petition and the facts alleged therein and that, although sometimes
it is permissible to supplement the allegations
contained in the
petition, still the main foundation of the application is the
allegation of facts stated therein, because those
are the facts which
the respondent is called upon either to affirm or deny”.
[35]
Mr Cassim for the Respondent is correct in his
argument when he argues that the Applicant have made an attempt to
make out their
case in their replying affidavit which is against the
rules. The rule does not permit a case being made out or a new matter
alternatively
new grounds being made on the replying affidavit. At
times this is permitted within exception where there are exceptional
circumstances,
which was not a case in this matter.
[36]
In
my opinion the Applicant has failed to make out its case in the
founding papers the founding papers are very vague.
[22]
They only detail the occurrences which led to the urgent application
they do not address the pertinent issues between the parties’
regard being had to the contract and the breach alleged.
[37]
I have given the breach correspondence a benefit
of a doubt and attempted to see if indeed it would have been clear or
made any
sense to the Respondent to enable them to plead or answer
with particularity. After closely examining the correspondence from
the
Applicant to the Respondent regarding the breaches, I have
included my analysis and a detailed description of each breach
as follows:
“
You
failed and or refused to diligently protect and promote interest of F
and CSA and fail to act in a manner that is beneficial
to F&C
SA”.
There
is no detail as to how and when the Respondents committed such.
“
2.1.1
We have an engaged with you on a number of occasions to explain that
the commercial terms contained in the agreement which
was concluded
many years ago, are no longer suitable for fine and country in light
of the market practices and norms. The new sub
licensing agreement
incorporates commercial terms that align with F and CSA and fine and
country group and market norms, however
despite our efforts you have
failed and/ or refused to conclude such an agreement with us”.
When,
with whom and why does the Applicant want to change from the
agreement concluded years ago which is still binding on the parties
and why does that amount to a breach. Otherwise, this statement gives
an impression of a party which seeks to renage from the old
agreement
unilaterally and without any probable reason.
“
2.1.2
Your communication and engagement with us and other Fine and Country
licenses is rude and unprofessional”;
This
is not specific to the where, when how and to whom and by whom such
engagements were done.
“
2.
1.3 You failed in or you refused to support our values and strategies
and you further undermine and disrespect the leadership
structures in
F and C SA;”
This
in my opinion is another bold and bare statement as it has no details
how the respondent has refused to support the values
and strategies
by the Applicant and how did the Respondent undermine and disrespect
the leadership of the applicant.
“
2
.1.4 You failed and or refused to migrate to our online business
platform
;”
This is also another bold statement which is not specific when did
this take place and by whom and when was the migration
supposed to
take place.
“
2.2.2
you have failed and or refused to adhere to terms and conditions
prescribed by us in relation to our agreement with better
bonds a
division of better life originators origination services proprietors
limited, and or have failed and or refused to sign
a lead generation
or similar agreement and better bonds and with better bonds and
instead signed up with avoid direct competitor:”
This
is vague what were those terms and conditions which were prescribed
by the Applicant at the time? These are not addressed.
“
2.3
You have failed to achieve the acceptable market value;”
This
is also another bold statement the court has no idea what were the
acceptable market values which the Respondent failed to
achieve as
this is not detailed in the papers.
“
2.4
You have engaged with you have engaged directly with F&C(UK)”;
This
is another bold statement the how and when is not provided.
“
2.5
your actions and omissions above heaven not only constrain the
relationship between the parties but have but I prejudicial to
FNC SA
and the fine and country brand.”
[38]
The exercise I engaged in above was to try and
give the benefit of a doubt to the Applicant regard being heard to
the urgency of
the matter. The breaches correspondence contains a lot
of bold statements which the Applicant should have foreseen when they
were
filing their papers. This is why it is of outmost importance to
plead with precision and sufficient particularity to enable another
party to respond thereto. In my opinion expecting the Respondent to
respond to these correspondence as if there were pleaded, creates
problems as highlighted.
[39]
A
competent Applicant would have pleaded in detail the breaches
committed by the Respondent to enable the Respondent to answer
appropriately. This would have also allowed the court to examine if
indeed the orders sought are competent on the face of the founding
papers filed. The way the breach is pleaded made it very difficult
for this court to even examine if there are material facts in
dispute.
[23]
[40]
Litigation cannot be done in a piecemeal manner
this court is surely not expected to only look at the cancellation
letter and move
forward from there and examine only the requirements
of the interdict as pleaded by the Applicant. The application is
based on
a contract therefore the salient facts thereof need to be
demonstrated specially the ones which the Respondent is alleged to
have
breached. Additionally, what are those breaches? This court has
not been taken into confidence with the details of these breaches
committed by the Respondent.
[41]
The breach in terms of
clause
6.19
is not in the correspondence dated
19 March 2023.
The Respondent argument that
a new case is made out on the replying affidavit is therefore correct
in that the replying affidavit
is in more detail regard being heard
to the breaches alleged which is not permitted in our law as it
transgresses on their right
to litigation being conducted fairly.
[42]
The last point argued by the Respondent was that
of an existence of a dispute of facts.
Dispute
of Facts
[43]
Mr. Cassim for the Respondent argued that this
application contains clear disputes of facts and that the matter
needs to be heard
by way of an arbitration or rather by leading
evidence in a trial. In rebuttal, the argument raised by the Mr.
Hollander for the
Applicant is that there are no genuine disputes of
facts. In arguing this point Mr. Hollander highlighted paragraph 88
of the Respondent’s
papers which formed part of the annexures
to the answering affidavit of what was to be an urgent application by
the Respondent
on 12 April 2024.
[44]
Paragraphs 88.16 to 88.19 was highlighted by the
Applicant wherein the Respondent do not deny that they had an
agreement with Evo
specifically the Midrand branch was being
incentivized by Evo who is Betterbonds competitor which is in breach
of clause 6.19 of
the license agreement. This was highlighted to be a
clear indication by the Respondent that it did not consider the
license agreement
to be binding on it. This is not the case made out
on paper by the Applicant rather this is a case made out on the
replying affidavit.
The Applicant could not direct this court to the
averments made by it on paper which were admitted by the Respondent
except to
highlight the Respondent’s annexure. The breach was
not admitted.
[45]
The
general rule was initially formulated in
Stellenbosch
Farmers’ Winery Ltd v Stellenvale Winery (Pty) Ltd
,
[24]
where the court held that: -
“
Where
there is a dispute as to the facts, a final interdict should be
granted in motion proceedings only if the facts as stated
by the
respondents, together with the admitted facts in the applicant’s
affidavit, justify such an order, or where it is
clear that the
facts, although not formally admitted, cannot be denied and be
regarded as admitted.”
[46]
In
Plascon
– Evans Paint Ltd v Van Riebeck Paints (Pty) Ltd,
[25]
the
then Appellate Division (now known as the Supreme Court of Appeal)
found that the rule as formulated in
Stellenbosch
Farmers’ Winery Ltd
required
clarification and qualification where final relief was sought in
motion proceedings.
The
rule was then established that in motion proceedings when disputes of
fact arise on the affidavits, a final order can be granted
only if
the facts averred in Applicant’s affidavits, which have been
admitted by the Respondent, together with the facts
alleged by the
latter, justify such order. It may be different if the Respondent’s
version consists of bald or uncreditworthy
denials, raises fictitious
disputes of fact, is palpably implausible, farfetched all so clearly
untenable that the Court is justified
in rejecting them merely on the
papers.
[26]
[47]
The
general rule in
Plascon
– Evans
is
that final relief may only be granted if the facts as stated by the
Respondents, together with the admitted facts in the Applicant’s
affidavit, justify the granting of such relief.
[27]
[48]
More
recently, in
Wightman
t\a JW Construction v Headfour (Pty) Ltd,
[28]
Heher
JA made its findings as follows:
“
A
real, genuine and bona fide dispute of fact can exist only where the
court is satisfied that the party who purports to raise the
dispute
has in his affidavit seriously and unambiguously addressed the fact
said to be disputed. There will of course be instances
where a bare
denial meets the requirement because there is no other way open to
the disputing party to and nothing more can therefore
be expected of
him.”
[49]
Accordingly, the Applicant firstly must aver facts
in their affidavit. In line with the breach the only allegation made
by the Applicant
is that: -
“
Trade
link committed a number of breaches of the trade link agreement.
These breaches we detailed in a letter addressed to trade
link….”
[50]
In answer to this allegation the Respondent
averred as follows:
“
AD
PARAGRAP 19 TO 20
Save
to admit receipt of the breach letter I deny that the respondent
committed any of the alleged breaches detailed in
FCSA3
”.
[51]
The Applicant pleaded the breach very vaguely
which indeed deserved the answer which the respondent answered. In
light of the answer
above can this court even make a fair
determination if indeed there is a genuine dispute of fact or this
has been raised by the
Respondent to delay the matter further. In my
opinion, based on the papers before me I cannot make a probable
determination if
indeed there is a genuine dispute of fact. The lack
of pleading in detail the breach by the Applicant is the cause of
this difficulty.
[52]
The court is somewhat expected to look at the
correspondence which was sent by the Applicant on 19 March 2024
versus the answer
received from the Respondent on 20 March 2024 to
reach a decision. A court in an application proceeding only concerns
itself with
the factual basis related on the face of the affidavits
filed.
[53]
This point of law is not appropriately addressed
by the Respondent in their answer. In the main, the Respondent deals
with this
point
in limine
based on the allegations that they have served and
filed a combined summons with the Applicant which were issued on 19
April 2024.
When the matter was argued the Applicant had not received
the summons and the Respondent had no explanation of the delay of
service
of the summons on the Applicant. I am therefore constrained
in considering this point
in limine
based on summons which is yet to be served as that
is information not before this court.
[54]
It should be emphasized that whilst generally it
is undesirable to attempt to decide an application on affidavit where
there are
material facts in dispute, it is equally undesirable for a
court to take all disputes of facts on the face value which would
enable
a Respondent to raise fictitious issues of fact in avoidance.
It is necessary then to examine the alleged disputes and determine
whether they are real or can be satisfactorily resolved without the
aid of oral evidence.
Conclusion
[55]
I am not satisfied that a proper case has been
made out by the Applicant on their papers based on the arguments
raised by the Respondent.
[56]
I therefore make the following order:
a.
The Applicant’s application is dismissed
with costs inclusive of costs of employing two Counsel on scale “
C
”
.
NHARMURAVATE,
AJ
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION, JOHANNESBURG
For
the Applicant: Adv. L Hollander
Instructed
by: Stuart Hodgkinson Attorneys Inc
For
the Defendant: Adv. N Cassim SC
Instructed
by: Dev Maharaj and Associates Inc
Date
of judgment: 21 June 2024
[1]
Uniform Rules of the High Court.
[2]
Nelson
Mandela Metropolitan Municipality v Greyvenouw CC
[2003]
ZAECHC 5
;
2004 (2) SA 81
(SE) paras 23, 33-34, and
Rokwil
Civils (Pty) Ltd and others v Le Sueur N.O and others
[2020]
ZAKZDHC 61 paras 16-19.
[3]
[2011] ZAGPJHC 196 para 6.
[4]
[2023] ZAKZPHC 122.
[5]
2013 (1) SA 549
(GSJ).
[6]
2013 (1) SA 549
(GSJ) at para 6.
[7]
2013 (1) SA 549
(GSJ) at para 6.
[8]
2013 (1) SA 549
(GSJ) at para 6.
[9]
[2005]
3 All SA 425
(SCA).
[10]
Kham
and Others v Electoral Commission and Another
2016
(2) SA 338
(CC) par [46]
[11]
Gcaba
v Minister for Safety and Security and Others
2010
(1) SA 238
(CC).
[12]
[2022] ZAGPJHC 410 at para 9.
[13]
2015 (5) SA 525 (KZD)
[14]
1955 (3) SA 547
(N) at 553D.
[15]
2013 (1) SA 83
(CC) para 114.
[16]
[2022] ZAECBHC 45 at para 2.
[17]
1988 (4) SA 326
(T) at 336B.
[18]
Van Loggerenberg, Erasmus Superior Court Practice, 2
nd
ed
Vol 2 [Service 5, 2027] at D1-58D – D1-59;
Swissborough
Diamond Mines (Pty) Ltd & Others v Government of the Republic of
South Africa
1999
(2) SA 279
(T) at 324F-G.
[19]
Minister
of Land Affairs and Agriculture v D & F Wevell Trust
2008
(2) SA 184
(SCA) at 200D.
[20]
SA
Railways Recreation Club and Another v Gordonia Liquor Licensing
Board
1953
(3) SA 256
(C) at 260A-D
[21]
1979 (1) SA 626
(A) at 635H
[22]
(1)
Every application must be brought on notice of motion supported by
an affidavit as to the facts upon which the applicant relies
for
relief.
[23]
South
African Transport and Allied Workers Union and another v Garvas and
others
2013
(1) SA 83
(CC) para 114 “
Holding
parties to pleadings is not pedantry. It is an integral part of the
principle of legal certainty, which is an element
of the rule of
law, one of the values on which our Constitution is founded. Every
party contemplating a constitutional challenge
should know the
requirements it needs to satisfy and every other party likely to be
affected by the relief sought must know precisely
the case it is
expected to meet.”
[24]
[1957] 4 SA 234 (C).
[25]
[1984] ZASCA 51
;
1984 (3) SA 623
(A) at 634-635
[26]
National
Director of Public Prosecutions v Zuma
2009
(2) SA 279
SCA (26).
[27]
Nampesca
(SA) Products (Pty) Ltd v Zaderer
1999
1 SA 886
(C) at 892H-J;
Townsend
Production (Pty) Ltd v Leech
2001
4 SA 33
(C) at 40E-H.
[28]
[2008] ZASCA 6
;
[2008] 2 All SA 512
(SCA) at para 13.
sino noindex
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