Case Law[2024] ZAGPJHC 833South Africa
Theodosiou and Others v Schindlers Attorneys and Others (A5060/22) [2024] ZAGPJHC 833 (28 August 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
28 August 2024
Judgment
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## Theodosiou and Others v Schindlers Attorneys and Others (A5060/22) [2024] ZAGPJHC 833 (28 August 2024)
Theodosiou and Others v Schindlers Attorneys and Others (A5060/22) [2024] ZAGPJHC 833 (28 August 2024)
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sino date 28 August 2024
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
1.
REPORTABLE: Yes☐/ No ☒
2.
OF INTEREST TO OTHER JUDGES: Yes☐ / No ☒
3.
REVISED: Yes ☒ / No ☐
28
August 2024
CASE
NO: A5060/22
In
the matter between:
ANTONYS
THEODOSIOU
First
Appellant
DIMETRYS
THEODOSIOU
Second
Appellant
SOTYRIS
CHRISTOS THEODOSIOU
Third
Appellant
KYRIAKOS
ANDREAS THEODOSIOU
Fourth
Appellant
HYDE
PARK 103 PROPERTIES (PTY) LTD
Fifth
Appellant
UNIVERSAL
RETAIL MANAGEMENT (PTY) LTD
Sixth
Appellant
EDUCATED
RISK INVESTMENTS 54 (PTY) LTD
Seventh
Appellant
OAKDENE
SQUARE PROPERTIES (PTY) LTD
Eight
Appellant
INVESTAGE
173 (PTY) LTD
Ninth
Appellant
KYALAMI
EVENTS AND EXHIBITIONS (PTY) LTD
Tenth
Appellant
MOTOR
MALL DEVELOPMENTS (PTY) LTD
Eleventh
Appellant
UNIVERSAL
PROPERTY PROFESSIONALS (PTY) LTD
Twelfth
Appellant
UNIVERSAL
RETAIL HOLDINGS (PTY) LTD
Thirteenth
Appellant
SOTYRIS
CHRISTOS THEODOSIOU N.O.
Fourteenth
Appellant
JACQUES
JOHAN MOOLMAN N.O.
Fifteenth
Appellant
ANTONYS
THEODOSIOU N.O.
Sixteenth
Appellant
JACQUES
JOHAN MOOLMAN N.O.
Seventeenth
Appellant
DIMETRYS
THEODOSIOU N.O.
Eighteenth
Appellant
JACQUES
JOHAN MOOLMAN N.O.
Nineteenth
Appellant
and
SCHINDLERS
ATTORNEYS
First
Respondent
IMPERIAL
LOGISTICS LIMITED
Second
Respondent
NEDBANK
LIMITED
Third
Respondent
RICHARD
KEAY POLLOCK, N.O.
Fourth
Respondent
MARYNA
ESTELLE SYMES, N.O.
Fifth
Respondent
OLGA
KOTZE, N.O.
Sixth
Respondent
JUDGMENT
DU
PLESSIS AJ (WITH WHOM CRUTCHFIELD J AND WILSON J AGREE)
[1]
This is an
appeal against the judgment of Booysen AJ
[1]
upholding the second and third respondents’ exception to the
appellants’ particulars of claim. The plaintiffs before
Booysen
AJ, being the appellants before this Court, (“the appellants”),
issued summons to set aside two orders granted
by the late Van der
Linde J on 14 November 2018. These two orders were said to be
vitiated because they gave effect to an illegal
contingency fee
agreement. It was further contended that even if the contingency fee
agreement was valid, the appellants’
erstwhile attorneys’
failure to comply with s 4 of the Contingency Fees Act
[2]
(“the Act”), before the two orders were made, meant that
Van Der Linde J had no power to grant them. The second and
third
respondents excepted to the particulars of claim on the grounds that
they lack the necessary averments to sustain a cause
of action,
alternatively that they are vague and embarrassing.
[2]
On 19 January 2022, Booysen AJ delivered judgment upholding various
exceptions raised by the second and third respondents
against the
appellants’ particulars of claim and ordered that specific
paragraphs thereof be struck out.
[3]
The appellants contend that the Court below disregarded material
averments in the appellants’ particulars of claim,
which ought
to have been accepted. This relates mainly to the interpretation of s
4 of the Act and whether a court has a discretion
to make a
settlement agreement an order of court where a contingency fee
agreement is in place, regardless of whether there was
compliance
with s 4 of the Act.
[4]
The appellants’ particulars of claim relate to various
settlement agreements made orders of court by Van der Linde
J on 14
November 2018. These settlements pertained to several litigious
matters that were settled and embodied in the two orders:
i. The first order
included the “Imperial Settlement Agreement” that was
concluded between several of the appellants
and the first to third
respondents, where existing litigation was settled. It also included
the “Schindlers Settlement Agreement,”
which was
concluded between the first respondent and various appellants. These
agreements were made an order of the court by Van
der Linde J (the
“first Van der Linde order”);
ii.
The second
order consolidated various actions
[3]
in which the third respondent, Nedbank, was the plaintiff. This is
the “second Van der Linde order”.
[5] Schindlers
represented some of the appellants in litigation from 2011 until the
conclusion of the settlement agreements.
When Schindlers realised
between July 2013 and October 2014 that the appellants could not
afford their professional services in
respect of the litigious
matters, they agreed to act “on risk.” Schindlers
concluded an oral “on risk”
contingency fee agreement
(the “Schindlers Contingency Fee Agreement”). In light of
s 3 of the Act, such a contingency
fee agreement is a nullity for
non-compliance with the Act. This much is common cause.
[6]
The litigious matters that were consolidated and settled included
litigation against the various respondents. The two
Van der Linde
orders (including the Schindlers Settlement Agreement and the
Imperial Settlement Agreement) were meant to settle
the various
disputes between Schindlers, Nedbank, Imperial and the appellants.
[7]
The crux of the appellants’ appeal is that the Schindlers
Contingency Fee Agreement was in existence but illegal
and a nullity
for non-compliance with the Act at the time of settling the disputes.
Section 4(1) of the Act is clear that any offer
of settlement made to
any party who has entered into a contingency fee agreement may only
be accepted
after
the legal practitioner has filed an
affidavit with the court, provided that there is compliance with the
remaining provisions of
s 4. This did not happen.
#
# The issues on appeal
The issues on appeal
[8]
The
specific grounds of appeal advanced at the hearing were that the
Court below erred in striking out specific paragraphs and prayers
in
the particulars of claim and by
not
dismissing
the exception on the basis that the Schindlers Settlement Agreement
was invalid for non-compliance with s 4 of the Act.
[4]
[9]
The appellants argue that the Court below applied s 4 of the Act
incorrectly. They contend that s 4 is peremptory and
that a court
does not have a discretion on whether to make a settlement agreement
an order of court in circumstances where there
is non-compliance with
s 4 of the Act. Furthermore, should there be such a discretion, then
the pre-conditions of s 4 apply, regardless
of whether the remedy in
s 5 of the Act is available.
[10]
The appellants contend that based on the Act's purpose, there are
limited exceptions to the common law prohibition on
contingency fees
and that it is subject to strict limitations imposed by the Act.
There is further no scope for developing the
common law prohibition
on contingency fee agreements because there cannot be two systems of
law governing the same subject matter.
Lastly, the courts need to
have regard to the importance of protecting litigants subject to
contingency fee agreements in the context
of settlements.
[11]
The appellants emphasise that s 2(1) of the Act is intended to be
exhaustive of the rights of legal practitioners to
conclude
contingency fee agreements and that such an agreement must be within
the parameters of the Act. The appellants draw the
inference that
since there is no room for a legal practitioner to enter into a
contingency fee agreement with a client outside
the parameters of the
Act, it follows that once such an agreement is concluded, there is no
room for the parties to
operate
outside of
the provisions of the Act, as this would render the purpose and
provisions of the Act ineffectual.
[12]
Furthermore, the appellants argue that the safeguards in the Act are
included to ensure that the supervisory and monitory
processes of the
courts are present whenever matters litigated under the Act are
settled or finalised. This means that if non-compliance
with section
4 of the Act is permitted, the purpose of the Act will be defeated.
The
second and third respondents’ argument
[13]
The second and third respondents (“the respondents”),
argue that the relief sought by the appellants is unsustainable
and
the appeal must fail. They contend that, as a matter of law,
non-compliance with s 4 of the Act does not render the settlement
agreements illegal and void. If the respondents are correct in this
regard, then that is the end of the appeal. This, however,
should not
be confused with an invalid
contingency fee agreement
due to
non-compliance with the Act, which is a nullity.
[14]
The respondents allege that no contingency fee agreement was in place
when the first and second Van der Linde J
orders were made, so
the Act does not apply. This is because the Schindlers Settlement
Agreement is not a contingency fee agreement.
Rather, it is an
agreement to pay a specified amount in full and final settlement of
fee disputes that had previously arisen.
[15]
Furthermore,
on a reasonable interpretation of the Schindlers Settlement
Agreement, it is a settlement or compromise between the
parties to
fully and finally settle all matters related to any and all of the
claims arising from the specified contracts and the
rendering of
legal services, including the Schindlers Contingency Fee Agreement.
Such a compromise is legally binding, even if
the original contract
is invalid.
[5]
[16]
Schindlers, at that time, no longer represented the appellants. In
other words, any alleged contingency fee agreement
that the Act may
have regulated had been replaced by the Schindlers Settlement
Agreement.
[17]
As to the
appellants’ remaining claims, the respondents argue that the
appellants’ claims are vague and embarrassing
and that no case
for fraud or
justus
error
,
good cause or any other basis for rescission is made out. The
appellants' averments do not establish that the first Van der Linde
order was sought or granted in their absence but by consent. The
appellants agreed to the order.
[6]
[18]
Moreover, the appellants made payments in terms of the second Van der
Linde order, indicating that they abided by the
judgment. Thus, in
terms of the doctrine of peremption, the appellants are bound by it.
[19]
Lastly, the appellants did not make out a cause of action for the
money judgment.
[20]
McKenzie
v Farmers’ Co-Operative Meat Industries Ltd,
[7]
dealt with an exception on the ground of no cause of action. The
court therein stated that pleadings should contain every fact
that,
if traversed, is necessary to prove in order to support the
litigant’s right to a judgment of the court. It is thus
necessary to compare the facts pleaded by the appellants in the
particulars of claim against the relevant substantive law, in order
to identify if the
facta
probanda
necessary to succeed in the cause of action were pleaded.
#
# The appeal
The appeal
[21]
There are, thus, essentially two questions that this court must
decide on in order to determine whether there is a cause
of action
properly pleaded:
i. Firstly,
whether an offer of settlement made between a legal representative
and their client who had signed a contingency
fee agreement is, upon
acceptance of such an offer, to be regarded (without further
explanation) as having the effect of causing
the parties' rights and
claims to be regarded as fully and finally settled and compromised,
with the result that the provisions
of the Act fall away and s 4 does
not apply. In other words, upon a client’s acceptance of a
settlement agreement on fees,
the parties have reached a compromise
on the fees that replaces the contingency fees agreement, and s 4 is
no longer applicable.
If this is so, then that is the end of the
matter.
ii.
If that is
not so, then the second question is whether non-compliance with
section 4 of the Act
[8]
renders
a settlement agreement made on the issues litigated, illegal and
void. In this regard, it is essential to distinguish between
the
effect of noncompliance on the contingency fee agreement itself and
the effect on the settlement agreement made pursuant to
the
litigation to which the contingency fees relate.
[22]
The question will be answered with reference to the various prayers
in the particulars of claim.
## (i) The prayers
declaring the orders a nullity, invalid and falling to be set aside
(i) The prayers
declaring the orders a nullity, invalid and falling to be set aside
##
[23]
Firstly,
the respondents correctly argue that it is not competent to apply for
an order declaring the Van der Linde orders a nullity
[9]
or to take them on review.
[10]
The appellants need to appeal the order. The only other basis for
setting an order aside is rescission, which will be discussed
below.
[24]
Even if that would be possible, the appeal must fail as the
appellants' argument that Van der Linde J did not have the
authority
to make the settlement agreements an order of court as there was
non-compliance with s 4 of the Act, cannot hold. This
will be
addressed in detail below, as this seemed to be the crux of the
appellants’ argument.
[25]
For the Act to apply, the agreement must be a contingency fees
agreement. The definition of such an agreement is provided
in s 2(1)
of the Act in the following terms: [own emphasis]
Notwithstanding anything
to the contrary in any law or the common law,
a legal practitioner
may
, if in his or her opinion there are reasonable prospects that
his or her client may be successful in any proceedings
, enter into
an agreement with such client
in which it is agreed—
(a) that the legal
practitioner shall not be entitled to any fees for services rendered
in respect of such proceedings unless such
client is successful in
such proceedings to the extent set out in such agreement;
(b) that the legal
practitioner shall be entitled to fees equal to or, subject to
subsection (2), higher than his or her normal
fees, set out in such
agreement, for any such services rendered, if such client is
successful in such proceedings to the extent
set out in such
agreement.
[26]
Thus, the Act clearly deals with an agreement between the legal
practitioner and a client regarding the fees to be paid
to the legal
practitioner for representing the client in an action. The parties
had an oral agreement until they concluded the
Schindlers Settlement
Agreement.
[27] The purpose of
the Schindlers Settlement Agreement is to “fully and finally
settle all matters related to any and
all claims that have arisen or
may arise among any of them related to the Specified Contracts and
the rendering of legal professional
services and legal representation
by Schindlers to the Debtors and any of the Related Entities”.
It is clear that the Schindlers
Settlement Agreement is meant to
settle the legal fees owed to Schindlers. The next question is then
whether this is the “settlement”
that is intended in s 4
of the Act.
[28]
The effect
of a settlement agreement was stated again In
Road
Accident Fund v Taylor,
[11]
namely that
[36]
The
essence of a compromise (
transactio
)
is the final settlement of disputed or uncertain rights or
obligations by agreement. Save to the extent that the compromise
provides
otherwise, it extinguishes the disputed rights or
obligations. The purpose of a compromise is to prevent or put an end
to litigation.
Our courts have for more than a century held that,
irrespective of whether it is made an order of court, a compromise
has the effect
of
res iudicata
(a compromise is not itself
res iudicata
(literally ‘a matter judged’) but has that effect).
[29]
By signing the Schindlers Settlement Agreement, the parties to that
agreement abandoned the Schindlers Contingency Fee
Agreement and
entered into a compromise as a final settlement regarding the fees.
This means that there is no contingency fee agreement,
and s 4 of the
Act is not applicable. This is then the end of the matter, and the
appeal must fail.
[30] Even if I am
wrong on the above, the appeal must fail because the Schindlers
Settlement Agreement is not the settlement
agreement referred to in s
4 of the Act. Section 4 of the Act states the following [own
emphasis]:
(1) Any offer of
settlement made to any party who has entered into a contingency fees
agreement,
may be accepted after the legal practitioner has filed
an affidavit with the court, if the matter is before court
, or
has filed an affidavit with the professional controlling body, if the
matter is not before court, stating—
(a) the full terms
of the settlement;
(b) an estimate of
the amount or other relief that may be obtained by taking the matter
to trial;
(c) an estimate of
the chances of success or failure at trial;
(d) an outline of
the legal practitioner’s fees if the matter is settled as
compared to taking the matter to trial;
(e) the reasons why
the settlement is recommended;
(f) that the
matters contemplated in paragraphs (a) to (e) were explained to the
client, and the steps taken to ensure that
the client understands the
explanation; and
(g) that the legal
practitioner was informed by the client that he or she understands
and accepts the terms of the settlement.
(2) The affidavit
referred to in subsection (1)
must be accompanied by an affidavit
by the client,
stating—
(a) that he or she
was notified in writing of the terms of the settlement;
(b) that the terms
of the settlement were explained to him or her, and that he or she
understands and agrees to them;
and
(c) his or her
attitude to the settlement.
(3) Any settlement made
where a contingency fees agreement has been entered into,
shall be
made an order of court
, if the matter was before court.
[31]
Section 4 thus deals with the agreement between an attorney and a
plaintiff or defendant and sets out the requirements
that must be
complied with before a settlement on the litigation can be made.
[32]
The appellants emphasise that s 4(1) of the Act refers to any offer
of settlement and not just settlements made in respect
of the merits
of the case. Instead, it is
any
offer made to any party who
has entered a contingency fees agreement. On this reasoning s 4 is
applicable to the Schindlers Settlement
Agreement. This cannot be
correct.
[33]
A reading of s 4(1) clearly indicates that the settlement refers to
the litigation to be settled with the signing of
the settlement
agreement. This is evident from the words “taking the matter to
trial”, “chances of success or
failure at trial”,
and “compared to taking the matter to trial”. It thus
refers to a settlement of the litigation
and not a settlement between
the legal practitioner and the client who elected to settle the fees
in terms of a settlement agreement.
[34]
If I am
wrong on both points above, the appeal must fail because an invalid
contingency fees agreement does not invalidate the settlement
agreement. In
Mofokeng
v Road Accident Fund
[12]
the court emphasised the monitoring function regarding contingency
fee agreements, explicitly ensuring compliance with s 4 of the
Act.
[35]
The
appellants regard compliance with s 4 of the Act as obligatory when
accepting a settlement agreement. They rely on
South
African Association of Personal Injury Lawyers v Minister of Justice
and Constitutional Development,
[13]
where the court held that s 4 means that matters may only be settled
after
affidavits from the legal practitioner and client have been filed.
[36]
However, in
Price
Waterhouse Coopers Inc v National Potato Co-operative Ltd
[14]
the Supreme Court of Appeal clarified that when a litigant has
entered into an unlawful agreement with a third party to provide
funds to finance his case, that is a matter that is extraneous to the
dispute between the litigants and is, therefore, irrelevant
to the
issue arising in the dispute, whatever the cause of action may be.
Thus, the illegality of the agreement between a plaintiff
and his
legal representatives cannot be a defence to the action.
[37] The appellants
contend that the facts in this case differ from those in
Price
Waterhouse Coopers
. In the latter case, the contingency fees
agreement was
extraneous
to the dispute between the litigant
and the party. In the case before us, the appellants submit that the
Schindlers Settlement
Agreement itself is unlawful because it is not
“extraneous to the dispute”. The appellants argue that
the Schindlers
Settlement Agreement settled the dispute between
Schindlers and the appellants, and the Schindlers Contingency Fee
Agreement must
comply with s 4 of the Act. Given that the latter did
not comply, the Schindlers Settlement Agreement is invalid due to
non-compliance
with s 4 of the Act
.
This
cannot be so, as this does not detract from the fact that the
Schindlers Settlement Agreement was intended to settle the legal
fees. It remains a settlement of legal fees, and not of the
underlying litigious disputes between the parties.
[38]
In
Road
Accident Fund v MKM obo KM,
[15]
the Supreme Court of Appeal approved of the conclusion of the Court
below that while non-compliance with the Act rendered the agreements
invalid and void, it does not invalidate any related settlement
agreement made an order of court without
justus
error
,
fraud or public policy considerations. The Supreme Court of Appeal
stated that this position is “undoubtedly correct”,
as it
accords with the general principle set out in
Price
Waterhouse Coopers.
There
are no allegations of
justus
error
,
fraud or public policy as to why such a settlement is not possible in
the matter before us. I see no reason why the principle
in Price
Waterhouse Coopers should not apply equally in this case.
[39]
The appellants argue that the court in
MKM
did not find that
the settlement agreement will always be valid despite non-compliance
with s 4 of the Act. In other words, this
matter is different since
the only purpose of the Schindlers Settlement Agreement was to settle
the appellants' indebtedness to
Schindlers. This argument has been
dealt with above.
[40]
It follows that the first Van der Linde order cannot be declared a
nullity, invalid and set aside for the reasons stated
above.
## (ii) The agreements
were interlinked
(ii) The agreements
were interlinked
##
[41]
The
appellants submit that if the Schindlers Settlement Agreement is
invalid, it renders the other agreements invalid, as they are
interlinked.
[16]
The
Schindlers Settlement Agreement and the Imperial Settlement Agreement
refer to each other and form part of the same transaction
- the
settlement of the appellants to Schindlers under the Schindlers
Contingency Fee Agreement.
[42]
The appellants further submit that Schindlers was party to both
agreements – this shows that the Imperial Settlement
Agreement
was not a mere settlement on the merits of the litigation but part of
the transaction to settle the appellants' indebtedness
to Schindlers
under the Schindlers Contingency Fee Agreement.
[43]
I do not agree. The Imperial Settlement Agreement deals with the
“indivisible full and final settlement of all
disputes […]
between the Parties in relation to the Company and to the winding-up
of the Company”. The only reference
to the Schindlers
Settlement Agreement is that to give effect to
that
agreement,
the members of the appellants nominate, authorise and instruct the
liquidators to make payment to the Schindlers Trust
Account for the
payment of the fees as agreed to in the Schindlers Settlement
Agreement.
[44]
The
appellants referred us to
Clicks
Retailers (Pty) Ltd v Commissioner for the South African Revenue
Service
[17]
where the Constitutional Court stated that there is an inextricable
link when an issue, claim, contract or conduct cannot be determined
or assessed without another or if the legal consequence of the one
cannot be understood or measured without reference to another.
Counsel then makes the argument that “the effect of the
inextricable link between the Schindlers Settlement Agreement, the
Imperial Settlement Agreement and the second Van der Linde order is
that the invalidity of the Schindlers Settlement Agreement
renders
the Imperial Settlement Agreement and the second Van der Linde order
invalid.” The transaction, they submit, could
not succeed by
the conclusion of the Schindlers Settlement Agreement or the Imperial
Settlement Agreement alone – they were
both necessary to settle
the appellants' indebtedness to Schindlers in terms of the agreement.
The two were so interlinked that
the Schindlers Settlement Agreement
was “subject to the proper execution of the” Imperial
Settlement Agreement.
[45]
I disagree. While the issues might be linked, there is not an
inextricable link where an issue, claim, contract or conduct
cannot
be determined or assessed without another or if the legal consequence
of the one cannot be understood or measured without
reference to
another. They settled different issues between the same parties. This
argument of the appellants also fails.
## (iii) In summary
(iii) In summary
##
[46]
The agreement reached between the appellants and Schindlers (“the
Schindlers Settlement Agreement”) was not
a “contingency
fee agreement” within the meaning of the Act. It merely settled
indebtedness arising from legal services
provided to the appellants
by Schindlers. It replaced an agreement to litigate “on risk”
between the appellants and
Schindlers. Although that agreement might,
in itself, have been regulated by the Act or have been void for
non-compliance with
the Act, that is something different. The “on
risk” agreement, even if void, does not affect the validity of
the Schindlers
Settlement Agreement, which is enforceable on its
face, and to which the Act does not apply. The Act accordingly
presented no barrier
to Van der Linde J endorsing the Schindlers
Settlement Agreement, because there was no contingency fee agreement
in place at the
time that Van der Linde J did so.
[47]
In any
event, even if the Schindlers Settlement Agreement can somehow be
characterised as a contingency fee agreement, Schindlers’
failure to file the affidavit required under section 4 of the Act
does not invalidate the agreement or the order of court that
endorsed
it. This is because the fee dispute between Schindlers and the
appellants was extraneous to the causes of action that
were
extinguished by consent between the parties to the two orders made by
Van der Linde J. As the Court below held, things might
have been
different if it could be shown that the two consent orders were
obtained by fraud, in a manner contrary to public policy
or as a
result of
justus
error
,
[18]
but that was not the case advanced on the appellants’
particulars of claim. The Court below’s approach in this
respect
has been endorsed by the Supreme Court of Appeal in
Road
Accident Fund v MKM obo KM
,
[19]
and there is no basis for us to interfere with it on appeal.
[48]
Accordingly, the appellants’ prayer to declare the orders a
nullity and invalid and to set them aside does not
disclose a cause
of action.
## (iv) The prayer to
rescind the judgments
(iv) The prayer to
rescind the judgments
##
[49]
The orders can only be rescinded in terms of rule 42(1) or the common
law.
[50]
The
requirement for a recission in terms of rule 42(1)(a) is that the
order or judgment had to be erroneously sought or granted
in the
absence of any party affected thereby. Common law requires that the
judgment was obtained by fraud or
justus
error
;
or if the party in default can show sufficient cause.
[20]
[51]
If the
order was given in the absence of another party, the applicant for
rescission must give a reasonable explanation for their
default, the
application must be
bona
fide
and not brought merely to delay the plaintiff’s claim, and the
applicant must show that they have a
bone
fide
defence to the plaintiff’s claim.
[21]
[52]
The argument as to the impact of s 4 of the Act on the settlement
agreements has been fully set out above. The appellants
application
for rescission, did not make out a case for fraud or
justus error
,
let alone that the orders were granted in the absence of the
appellants. The latter consented to the order.
[53]
The Court
below emphasised that
Botha
v Road Accident Fund
[22]
held that a court order that recorded a settlement agreement cannot
be rescinded. A settlement can only be set aside on the grounds
of
fraud or
justus
error
,
where the error serves to rescind, nullify or void consent – it
cannot relate to the disputed merits or the reason for the
settlement. Parties cannot go back on their bargain because of
unilateral mistakes.
[54]
Thus, rescission is not available to the appellants as they were not
absent when the order was made – they agreed
to it. As the
Court below correctly stated, once there is an agreement, it can only
be set aside if there is fraud or
justus error
.
[55] Accordingly,
prayers 3, 4.1 and 7 do not disclose a cause of action.
## (v) Pay back the
monies to Nedbank
(v) Pay back the
monies to Nedbank
##
[56]
Prayers 8 and 9 are only competent if the other prayers succeed,
which they do not. The only alternative, as the court
quo
pointed
out, is unjustified enrichment, and no such case was made out by the
appellants.
[57]
Accordingly, prayers 8 and 9 do not disclose a cause of action.
#
# Conclusion
Conclusion
[58]
For the reasons set out above, the plaintiff’s particulars of
claim failed to disclose a cause of action and the
exception was
correctly upheld by the Court below. It follows that the prayers be
struck out as ordered by the Court below. This
is what the Court
below found, and I agree.
#
# Order
Order
[59]
I, therefore, make the following order:
1. The appeal is
dismissed with costs, including the costs of two counsel and senior
counsel where utilised, which costs include
the costs of the
applications for leave to appeal.
WJ
DU PLESSIS
Acting
Judge of the High Court
Delivered:
This judgement is handed down electronically by uploading it to the
electronic file of this matter on CaseLines and sending
it to the
parties/their legal representatives by email.
Counsel
for the Appellants:
A
P Joubert SC
L du
Bruyn
Instructed
by:
Van
Hulsteyns Attorneys
Counsel
for the second respondent and
Nedbank:
A
Botha SC
E
Kromhout
Instructed
by:
Tugendhaft
Wapnick Banchetti &Partners (Imperial)
Lowndes
Dlamini Attorneys
(Nedbank)
Date
of the hearing:
05
June 2024
Date
of judgment:
28
August 2024
[1]
Handed down 19 January 2022,
Theodosiou
v Schindlers Attorneys
[2022] 2 All SA 256 (GJ).
[2]
66
of 1997.
[3]
Under
case numbers
2012/36890 and 2013/09463.
[4]
66
of 1997.
[5]
Mathimba
v Nonxuba
2019
(1) SA 550 (ECG).
[6]
Dabner
v South African Railways and Harbours
1920 AD 583
at 594.
[7]
McKenzie
v Farmers’ Co-Operative Meat Industries Ltd
1922 AD 16
at 23.
[8]
66
of 1997.
[9]
Wallach
v High Court of South Africa (Witwatersrand Local Division)
[2003] ZACC 6.
[10]
Borman
v Minister of Defence
2007 (2) SA 388
(C) at para 15.
[11]
Road
Accident Fund v Taylor
2023
(5) SA 147 (SCA).
[12]
Mofokeng
v Road Accident Fund
[2012] ZACPJHC 150.
[13]
South
African Association of Personal Injury Lawyers v Minister of Justice
and Constitutional Development
[2013] ZAGPPHC 34.
[14]
Price
Waterhouse Coopers Inc v National Potato Co-operative Ltd
2004 (6) SA 66
(SCA) para 48.
[15]
Road
Accident Fund v MKM obo KM
2023 (4) SA 516
(SCA)
(“MKM”).
[16]
By
relying on
Cash
Converters Southern Africa (Pty) Ltd v Rosebud Western Province
Franchise (Pty) Ltd
(1) [2002] ZASCA 66.
[17]
Clicks
Retailers (Pty) Ltd v Commissioner for the South African Revenue
Service
2021 (4) SA 390
(CC) para 44.
[18]
See
Theodosiou
v Schindlers Attorneys
2022 (4) SA 617
(GJ), para 76.
[19]
2023
(4) SA 516
(SCA), para 40.
[20]
Colyn
v Tiger Food Industries Ltd t/a Meadow Feed Mills (Cape)
2003 (6) SA 1
(SCA) at par 4.
[21]
Naidoo
v Cavendish Transport Co (Pty) Ltd
1956 (3) SA 244
(N)
at
248E
[22]
Botha
v Road Accident Fund
2017 (2) SA 50
(SCA).
sino noindex
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