Case Law[2023] ZAGPJHC 305South Africa
Renwick v Botha (35217/2019) [2023] ZAGPJHC 305 (8 March 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
8 March 2023
Headnotes
judgment granted against the applicant (the defendant in the main application) by Wanless AJ on 18 May 2020. The order was granted in the absence of the applicant. The rescission application is brought in terms of Rule 42(1)(a), alternatively in terms of Rule 31(2)(b) of the rules. The application is opposed by the respondent (the plaintiff in the main application). [2] The order granted by Wanless AJ reads as follows:
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Renwick v Botha (35217/2019) [2023] ZAGPJHC 305 (8 March 2023)
Renwick v Botha (35217/2019) [2023] ZAGPJHC 305 (8 March 2023)
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sino date 8 March 2023
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
CASE
NUMBER
:
35217/2019
NOT
REPORTABLE
NOT
OF INTEREST TO OTHER JUDGES
NOT
REVISED
In
the matter between:
CHRISTOPHER
JAMES MCLURE RENWICK
APPLICANT/DEFENDANT
and
CHRISTOFFEL
GERHARDUS BOTHA T/A TAX CONSULTING
RESPONDENT/PLAINTIFF
JUDGMENT
OOSTHUIZEN-SENEKAL CSP
AJ:
Introduction
[1]
This is an application for the rescission of a
summary judgment granted against the applicant (the defendant in the
main application)
by Wanless AJ on 18 May 2020. The order was
granted in the absence of the applicant. The rescission
application is
brought in terms of Rule 42(1)(a), alternatively in
terms of Rule 31(2)(b) of the rules. The application is opposed
by the
respondent (the plaintiff in the main application).
[2]
The order granted by Wanless AJ reads as follows:
1.
Payment of the sum of R500 000-00;
2.
Interest on the amount referred to in paragraph 1
at a rate of 10% per annum
a tempora
morae
until date of final payment;
3.
Costs of suit.
[3]
Furthermore, the applicant also seeks an order
condoning the late filing of the application for the rescission of
the judgment.
[4]
The respondent is Mr Botha t/a Tax Consulting SA.
The respondent also seeks condonation for the late filing of
his answering
affidavit.
Background of relevant
facts and Chronology
[5]
Mr Renwick (“the Applicant”) was
employed by the respondent as a senior tax attorney on 15 November
2016. The
parties concluded a written Employment Agreement to
regulate the employment relationship between them.
[6]
On 18 July 2017 the parties amended the Employment
Agreement between them by means of a further written agreement (“the
Agreement”)
dated 18 July 2017.
[7]
In terms of the agreement the parties agreed to
amongst others to amend the terms relating to the payment of bonusses
and in this
regard paragraph 8.13 and 8.14 states:
“
8.13
Bonus payments are made in accordance with the provisions stated in
the bonus letter accompanying such payment,
8 14. Bonus payments are
at the sole discretion of the company.”
[8]
I will refer to the amendment as the 2018 “Six
months Bonus Incentive Policy” (“the 2018- Bonus
Policy”).
The policy was circulated to all employees of
the respondent and it was agreed that only employees who were paid a
bonus in December
2019 and who resign on or before 1 March 2019 shall
have the obligation of repaying the bonus to the respondent.
[9]
On 2 July 2019, a year later, an amended policy
(“the 2019- Bonus Policy”) for consultants regarding the
“six
months bonus incentive” was circulated to all
employees. The applicant confirmed receipt and acceptance of
the 2019-
Bonus Policy on 3 July 2019. In terms of paragraph B
and C of the 2019-Bonus Policy the following were agreed to;
“
B.
Application
·
The bonus incentive applies to two, six month
(sic)
periods,
namely, January to June and July to December. The bonus
payments will be made In July and December respectively,
as soon as
numbers are finalised.
·
Part C below applies to TCSA business units and
individual consultants not allocated to a specific business unit.
·
Support staff are excluded from Part C and are
governed under Part D below.
C.
Employment Change
·
In the event that the employment of any employee
is terminated for reasons other than retrenchment and/or operational
requirements,
that employee shall be required to fully refund the
bonus paid to them, to the company.
·
The manner in which the bonus shall be repaid may
agreed
(sic)
upon
at the date of termination. Where a payment plan is required,
the employee shall sign an agreement to such effect.
·
The company may choose to waive its right to
receive repayment of the bonus however this will be at the sole
discretion of the company,
is not guaranteed and shall be on a case
by case
(sic)
basis.
·
The terms hereof shall only be applicable to
the calendar year in which the bonus is paid i.e., a bonus paid in
June shall be subject
to repayment in December. A December
bonus paid shall only be subject to repayment before the end of that
same calendar year.”
[10]
The object of the 2019-Bonus Policy was to
incentivise consultants, such as the applicant for “genuine
performance”
in that they would be entitled to a bonus.
The bonus would be paid in July and/or December, respectively,
subject to all
financial requirements of the respondent have been
achieved by the individual.
[11]
The applicant satisfied the requirements, and
qualified for a bonus for the period January to June 2019, and on 5
July 2019, he
was accordingly paid a gross amount of R 500 000.00.
[12]
On 16 July 2019 the applicant resigned from the
respondent’s employment. The dispute arose as to whether
the applicant
was paid the bonus in terms of the 2018- or the 2019-
Bonus Policy implemented by the respondent.
[13]
After the resignation of the applicant, the
respondent caught wind of the applicant’s emigration from the
Republic, whereafter
the respondent demanded that the repayment of
the bonus amount as stipulated in the 2019-Bonus Policy. The
applicant refused
to repay the bonus amount.
[14]
The respondent was of the view that the applicant
was not entitled to the bonus in terms of the 2018- Bonus Policy, and
therefore,
the respondent instituted an urgent application in the
Labour Court, where he sought an interim interdict for the immediate
payment
of the bonus into a trust account, pending the resolution of
the dispute between the them. It is evident that the
application
in the Labour Court was launched due to the applicant’s
imminent emigration from the Republic.
[15]
The application was heard on 13 August 2019 in the
Labour Court by Van Niekerk J and was dismissed with costs.
Aggrieved by
the outcome of the application in the Labour Court, the
respondent applied for leave to appeal, which application was also
dismissed.
[16]
On 16 August 2019 the applicant emigrated to the
United Kingdom (“the UK”).
[17]
Following the applicant departure from the
Republic, on 8 October 2019, the respondent issued summons against
the applicant, seeking
an order for the payment of R 500 000.00.
[18]
The respondent was granted leave to serve the
summons on the applicant by way of edictal citation in the UK in the
following way:
18.1.
By way
of email:
mclurerenwick@gmail.com
and,
18.2.
By way of service on the office of Harrington
Johnson Wands Attorneys.
[19]
The summons was served in terms of the court order
on the applicant’s erstwhile attorneys of record, as well as on
the applicant
by way of email on 12 February 2020.
[20]
On 14 February 2020 the applicant’s
attorneys withdrew as attorney of record.
[21]
On 25 February 2020 the applicant filed notice to
oppose the summons, and he also filed his plea on the same date.
[22]
On 16 March 2020, the respondent applied for
summary judgment. The summary judgment application and set down
in respect of
the application was served on the applicant via email
during March/April 2020.
[23]
The applicant failed to deliver an affidavit
resisting summary judgment and accordingly, summary judgment was
granted against the
him on 18 May 2020 on an unopposed basis.
[24]
On 10 July 2020 this application for rescission of
the summary judgment was served on the respondent, which the
respondent opposed.
The respondent filed his answering
affidavit in the rescission application on 11 August 2020 and the
applicant his replying affidavit
on 19 August 2020.
[25]
On 4 August 2020, the respondent’s attorney
addressed a letter of demand to the applicant’s attorney, the
purpose thereof
was to demand security for the respondent’s
costs in respect of the rescission application as well as all future
litigation.
Due to applicant’s refusal to furnish
security for costs in the rescission application, the respondent
served a security
application, as well as a condonation for late
filing of the said application on the applicant on 27 August 2020.
[26]
The said application was opposed by the
applicant. The application was heard on 11 February 2021 by De
Bruyn AJ and on 13
April 2021 the security application was dismissed.
Condonation late
filing of rescission application and answering affidavit
[27]
The applicant seeks condonation of his failure to
bring this application within the period required by Uniform Rule
31(2)(b).
The respondent on the other hand seeks condonation
for the late filing of his answering affidavit. The applicant
admits that
his filing of the rescission application was 1 (one) day
out of time in terms of the rules. The respondent also admits
the
filing of the answering affidavit was late. This failure to
file in time may be condoned on good cause shown.
[28]
During the hearing both parties consented to
condonation being granted. Even had such consent not being
granted I would still
have condoned the late filing of the parties in
this application. The applicant was only 1 (one) day out of
time in terms
of the rules, the applicant provides a reasonable
explanation of the delay (his attorney of record miscalculated the
computation
of the
dies
).
No prejudice can be said to have arisen from it.
[29]
The respondent contended that the parties have
agreed to condonation of the late filling of the application and the
answering affidavit.
[30]
Therefore, the late filling of the rescission
application by the applicant and the late filing of the answering
affidavit by the
respondent are condoned.
Point
in limine
[31]
Ms Bekker for the respondent raised a point
in
limine
to the effect that the
applicant’s founding affidavit is not properly authorised.
The respondent argued that the solicitor
notarising the applicant’s
founding affidavit, failed to effect a seal as contemplated in Rule
63(3) of the Uniform Rules
to the founding affidavit.
[32]
Counsel for the applicant referred to the
provision in Rule 63(4) of the Uniform Rules, and argued that the
court has a discretion
in this regard and if the court is satisfied
with the authenticity of the affidavit, it can be allowed. The
applicant contended
that the rules pertaining to the authentication
of a document are no more than directory, in the sense it merely
guides a person
from a regulatory point of view and is not a
pre-emptive measure and that pleadings are made for the court, not
the court for pleadings.
[33]
Ms Moorcroft for the applicant pointed out that
the respondent has not objected to the authenticity of the document,
and does not
dispute that it is the applicant who has deposed
thereto. Clearly, the only objection by the respondent is that
the founding
affidavit has not been sufficiently authenticated in
accordance with the rule. The authenticity of the founding
affidavit
is thus not in dispute.
[34]
Rule 63 of the Uniform Rules provides the
following:
“
63
Authentication
of documents executed outside the Republic for use within the
Republic
(1)
In this rule, unless inconsistent with the context —
‘
document’
means
any deed, contract, power of attorney, affidavit or other writing,
but does not include an affidavit or solemn or attested
declaration
purporting to have been made before an officer prescribed by section
eight of the Justices of the Peace and Commissioners
of Oaths Act,
1963 (Act 16 of 1963);
‘
authentication’
means,
when applied to a document, the verification of any signature
thereon.
(2)
Any document executed in any place outside the Republic shall be
deemed to be sufficiently authenticated for the purpose of
use in the
Republic if it be duly authenticated at such foreign place by the
signature and seal of office —
(a)
…; or
(b)
…;
(c)
…; or
(d)
…; or
(e)
…; or
(f)
…
(2A)
Notwithstanding anything in this rule contained, any document
authenticated in accordance with the provisions of the Hague
Convention Abolishing the Requirement of Legalisation for Foreign
Public Documents shall be deemed to be sufficiently authenticated
for
the purpose of use in the Republic where such document emanates from
a country that is a party to the Convention.
(3)
If any person authenticating a document in terms of subrule (2) has
no seal of office, he shall certify thereon under his signature
to
that effect.
(4)
Notwithstanding anything in this rule contained, any court of law
or public office may accept as sufficiently authenticated any
document which is shown to the satisfaction of such court or the
officer in charge of such public office, to have been actually
signed
by the person purporting to have signed such document.
[my
emphasis]
(5)
…”
[35]
It is
clear that there is no substantive enactment which lays down that a
document executed in a foreign place
must
be
authenticated. The provisions of the rule are not exhaustive or
imperative but merely directory.
[1]
The
rule does not take away the power of the court to consider other
evidence directed at the proof of a document executed in a
foreign
country, and to accept such document as being duly executed.
[2]
[36]
In
Blanchard,
Krasner and French v Evans
[3]
Malan J said:
“
The
rules set out above are not exhaustive but are, as Erasmus Superior
Court Practice B1 -407B, said, merely directory.
They
do not take away from the power of the Court to consider other
evidence directed at the proof of a document executed in a foreign
place, and to accept such a
document
as being duly executed.
”
[37]
In
Maschinen
Frommer GmbH & Co KG v Trisave Engineering & Machinery
Supplies (Pty) Ltd
,
[4]
van Reenen J articulated the position as follows;
“
The
rules relating to the authentication of a document executed in
foreign countries have been designed to ensure that such documents
are genuine before use can be made thereof in the Republic of South
Africa. The prescribed formalities are not mandatory,
and the
genuineness of such documents may be proved on a balance of
probabilities by means of direct or circumstantial evidence
or both
(
See:
Chopra
v Sparks Cinemas (Pty) Ltd & Another
1973(2)
SA 352 D&CLD at 358B-D; see also
Ex
parte
Holmes
& Co (Pty) Ltd
1939
NPD 301
;
Friend
v Friend
1962(4)
SA 115 (E)).”
[38]
It is not in dispute that the founding affidavit of the applicant has
not been authenticated in accordance with the rules,
in that the
solicitor, Mr Patrick Hunt, not having a seal, did not certify the
fact, underneath his signature as provided in rule
63(3). On 19
August 2020, in a attempt to mitigate any prejudice which the
respondent might suffer, the applicant served
a notarised copy of the
founding affidavit, displaying the seal on the respondent.
[39]
Therefore, I can see no reason why this court should not accept that
the founding affidavit has been properly authenticated.
The
court is entitled to condone non-compliance with the requirement of
the rule. Thus, I exercise my discretion in favour
of the
applicant as envisaged in rule 63(4).
[40]
As a result, the point
in limine
is dismissed.
The
rescission application
[41]
The provisions of the rules relevant in the present matter are the
following;
Rule
42(1) provides that;
“The Court may,
in addition to other powers it may have, mero motu or upon the
application of any other party affected, rescind
or vary an order or
judgment erroneously sought or erroneously granted in the absence of
any party affected thereby ...”
Rule 31(2)(b) provides;
“
the defendant may
within 20 days after he or she has knowledge of such judgment apply
to court upon notice to the plaintiff to set
aside such judgment, the
court may upon good cause shown, set aside the default judgment on
such terms as to it seems meet
.
”
[42]
It
is important to reflect briefly on the principles entailed in
rescission applications:
42.1.
In terms of rule 42(1)(a) a rescission will be granted where the
order or judgment was erroneously sought or granted in the
absence of
a party affected thereby. The judgment would be erroneously
granted if there were facts which existed which the
court was unaware
of and which would have induced the court not to grant the order or
judgement. The applicant in this instance
is not required to
show good cause.
42.2.
In
a
rule 31(2)(b) rescission, the application must be delivered within 20
(twenty) days of the applicant having knowledge of the order
or
judgment. In order to succeed, the applicant must show good
cause; the application must be based on
bona
fide
reasons
and must have a
bona
fide
defence;
furthermore, the applicant must give a reasonable explanation for his
default. If the application is brought outside
of the period
prescribed, the applicant is to apply for condonation. The
applicant would be required to address the degree
and reasons for
lateness; the prospect of success on merits and the aspect prejudice.
[43]
In
Kgomo
v Standard Bank of South Africa
[5]
,
Dodson J, held that the following principles govern rescission under
Rule 42(1)(a):
1.
The rule must be
understood against its common-law background;
2.
The basic principle
at common law is that once a judgment has been granted, the judge
becomes
functus
officio
,
but subject to certain exceptions of which rule 42(1)(a) is one;
3.
The rule caters for a
mistake in the proceedings;
4.
The mistake may
either be one which appears on the record of proceedings or one which
subsequently becomes apparent from the information
made available in
an application for rescission of judgment;
5.
A judgment cannot be
said to have been granted erroneously in the light of a subsequently
disclosed defence which was not known
or raised at the time of
default judgment;
6.
The error may arise
either in the process of seeking the judgment on the part of the
applicant for default judgment or in the process
of granting default
judgment on the part of the court; and
7.
The applicant for
rescission is not required to show, over and above the error, that
there is good cause for the rescission as contemplated
in rule
31(2)(b).
[44]
The
court has a discretion to rescission. The application for
rescission of judgment in this matter is premised on rule 42(1)(a),
alternatively on rule 31(2)(b), this does not preclude me from
determining the application in terms of the common law if the
applicant
does not succeed under rule 42 and/or rule 31.
[6]
Analysis of the
Evidence and Arguments by the Applicant and Respondent
[45]
I now turn to consider whether the grounds
proffered by the applicant in justification of the rescission of the
summary judgment
have merit.
[46]
It is common cause that the application for
summary judgment was served on the applicant during March/April
2020. However,
after receipt thereof, he attempted to locate
the email on a later date, but was unable to find the said email in
his inbox.
It is also common cause that the summary judgment
was granted in the absence of the applicant.
[47]
Counsel for the applicant argues that the summary
judgment was granted erroneously and in the absence of the
applicant. The
applicant asserts that the court could not have
granted the judgment, because he raised points of law, amongst others
a special
plea of jurisdiction.
[48]
The
applicant
submits that if he was present, the court would have considered the
matter differently as he would have had the opportunity
to make
submissions in his defence. This argument was based on the fact
that the applicant opposed the urgent application
in the Labour Court
during August 2019, and furthermore, he filed an answering affidavit
in the main application setting out his
defence. It was further
argued that the applicant also opposed the application for providing
security, which was heard by
De Bruyn J in April 2021.
[49]
The above actions, according to counsel for the
applicant clearly indicates that the applicant would have opposed the
application
for summary judgment, if he was aware of the date on
which the application would be heard. Therefore, counsel
contended that
the applicant was not in
wilful
default.
[50]
The
applicant referred the court to the case of
Nkhathi
v Absa Bank Limited
[7]
where
it was held that
wilful
default
on the part of the applicant is not a substantive or compulsory
ground for the refusal of an application for rescission,
but that it
is simply one of the ingredients in the basket of good cause, which
the court should take into account in exercising
its discretion to
determine whether or not good cause is shown.
[51]
Reference
was also made to
OUTsurance
Insurance Company Limited v Mpapama
[8]
where
the court dealt with a similar situation where e-mail service could
not be located, and held that the applicant’s failure
to have
entered an appearance to defend was not
wilful
,
the following was said;
“
It
is not far-fetched that emails can be deleted and unless the
recipient bears knowledge of such deletion, its existence might
never
be known. Consequently, this Court finds that the defendant's
default had not been wilful.”
[52]
Accordingly, the applicant argued that even if it
is found that the applicant had an
onus
to inquire from the respondent about
the status of the application for summary judgment, it
cannot
be said that the applicant was in “
wilful
default”, nor is it sufficient to bar the
applicant from defending this matter in light of the overwhelming
good prospects
of the applicant’s
bona
fide
defence.
[53]
The applicant raised a number of defences against
the respondent’s claim on his version, if proven at trial would
defeat it.
The following
bona fide
defences are;
53.1.
The court did not have the necessary jurisdiction
to grant the order for summary judgment, by virtue thereof that the
applicant
is a
peregrinii,
residing in the UK; and
53.2.
Despite the respondent’s allegation, the
applicant did not breach the 2019-Bonus Policy, alternatively, the
alleged breach
of the 2018- Bonus Policy, on which the respondent
relies, is
contra bones mores
.
[54]
The applicant raised various arguments relating to
the lack of jurisdiction.
[55]
Furthermore, that applicant argued that the
palpable differences in the two Bonus Policies, 2018 and 2019, are in
dispute, and furthermore,
which policy was applicable to the
applicant and these have to be canvassed at a later stage. It
is evident that this is
a contentious issue between the parties,
because the respondent alleged that the applicant circulated a
deceitful policy (the 2018-
Bonus Policy) to the employees of the
respondent without the respondent’s permission.
[56]
Therefore, the applicant contended that he has
shown good course in that:
56.1.
He was not in
wilful
default;
56.2.
He is bona fide in bringing this application for
rescission, and
56.3.
He has a
bona fide
defence against the respondent’s claim with
good prospects of success.
[57]
Counsel for the respondent argued that there exist
sufficient facts and evidence to confirm the jurisdiction of this
Court to have
adjudicated the action between the parties, as it did
when it granted the summary judgment on 18 May 2020. The
respondent
asserts that it cannot be said that summary judgment was
erroneously sought or granted on the basis that the court lacked
jurisdiction
over applicant.
[58]
The respondent argued that service of the summary
judgment application was proper and the applicant does not dispute in
receiving
it. The respondent contended that the allegation
regarding the disappearance of the e-mail with the summary judgment
application
from the applicant’s inbox, is highly improbable
and suspect. The argument is based on the fact that the
respondent
previously served a number of legal proceedings on the
applicant via the same e-mail address namely, the urgent application
in
the Labour Court, the action, the application for summary
judgment, the application for security and the papers in this
rescission
application, therefore the explanation in this regard
should not be accepted by the court.
[59]
The respondent submitted that the reason why
summary judgment was applied for and granted was because the
applicant’s defence
set out in his plea constituted a bare
denial. It is trite that, for the purpose of rule 32, a defence as
pleaded should comply
with rules 18(4) and 22(2), and a bare denial
does not raise any issue for trial.
[60]
Regarding the question raised by the applicant in
that the court does not have the necessary jurisdiction over him as a
person,
the respondent argued that the applicant was a South African
citizen and the cause of action arose in South Africa.
Furthermore,
that in accordance with the visa attached to the
applicant’s founding affidavit, he is permitted to work in the
UK and that
he has “leave to remain” there until 25
December 2024.
[61]
Therefore, the respondent argued that the
applicant remains a South African citizen and he is not a permanent
resident nor citizen
of the UK. He may very well return to
South Africa before, or after 2024, if the residence permit is not
renewed. The
respondent further argued that the applicant has
not expressed any intention on his part to renounce his South African
citizenship,
which means that his residence in the UK can by no means
automatically be considered indefinite or permanent.
[62]
Counsel for the respondent argued that the
applicant has made out no case that the summary judgment should be
rescinded. The
summary judgment was not erroneously sought or
granted, and the applicant’s “absence” or failure
to oppose the
application for summary judgment cannot be explained
away by his failure to open and consider the email service of the
summary
judgment application.
[63]
The respondent argued that the dispute between the
parties has been ongoing for a number of years and the summary
judgment brings
an end to the dispute, and therefore there is no
valid reason for the summary judgment to be rescinded.
[64]
The respondent argued that the rescission
application should be dismissed, with costs.
[65]
In
determination of the question whether the applicant established a
bona
fide
defence
as to whether this court has jurisdiction, the starting point would
be to look at the provisions of section 21 of the Superior
Courts
Act
[9]
, which states:
“
Persons
over whom and matters in relation to which Divisions have
jurisdiction
(1)
A Division has jurisdiction over all persons residing
or being in
,
and in relation to
all causes arising
and all offences triable
within, its area of jurisdiction and all other matters of which it
may according to law take cognisance…”
[my
emphasis]
[66]
It is based on the provisions of this section that
the respondent submitted that the court has the necessary
jurisdiction, because
the cause of action arose in this court’s
jurisdiction.
[67]
In
Brooks
v Maquassi Halls Ltd
[10]
Kotzé
J said:
“
According
to our common law and practice under it, the Court will exercise
jurisdiction upon any one of the following grounds, viz:
(1)
ratione
domicilii
;
(2)
ratione
rei sitae
;
(3)
ratione
contractus
;
that is, where the contract has either been entered into or has to be
executed within the jurisdiction.”
[68]
It
is by now well established that the expression “causes arising”
signifies all factors giving rise to jurisdiction
under the common
law including although not limited to a cause of action.
[11]
[69]
Reverting
to the facts in the present matter. In this particular case,
there was an employment relationship that came into
existence between
the applicant and the respondent in this country and in this Court’s
area of jurisdiction. In terms
of the written employment
agreement concluded between the parties, the applicant was entitled
to a bonus.
[70]
The
fact that the employment contract was concluded in this court’s
jurisdiction undoubtedly played an integral, if not vital
part in the
bonus being paid to the applicant, which constituted the basis for
the respondent’s cause of action. Apart
from emigrating
from South Africa after the applicant’s resignation, there is
no other link or connection that either party
had with the UK. The
applicant could very well have remained inside this country or inside
the area of jurisdiction of this
Court.
[71]
The
cause of action clearly arose in this court’s jurisdiction
which accordingly is sufficient to endow this court with
jurisdiction.
[12]
The
fact that the applicant relocated to the UK is of no moment and the
defence in this regard raised by the applicant cannot
be sustained.
[72]
On all the information
before me, I am accordingly unable to conclude that the order was
erroneously granted in the sense contemplated
by rule 42(1)(a)(ii).
Rather, the default falls to be exonerated in terms of the
rescission procedures contemplated by rule
31(2)(b) or the common
law.
[73]
This
brings me to the question whether the applicant’s application
for rescission is made
bona
fide
and
furthermore, does the applicant has a
bona
fide
defence
to the respondent’s claim which
prima
facie
has
some prospects of success.
[13]
[74]
In
the
rescission application, the applicant is required to make out a
prima
facie
defence
in the sense of setting out facts, which if established at trial,
would constitute a defence. He need not fully deal with
the merits of
the case and produce evidence that the probabilities are actually in
his favour.
[14]
[75]
If the applicant in this matter is to establish
that the employment agreement concluded fall within the ambit of the
of the 2018-Bonus
Policy and not under the ambit of the 2019 -Bonus
Policy, it would vitiate the latter policy and constitute a complete
defence
to the respondent’s claim.
[76]
The respondent alleged that the wrong policy was
circulated by the applicant to his employees and this was done with
the intention
to avoid the applicant being under any obligation to
refund the bonus paid to him. In other words, the respondent,
relied
on the alleged dishonesty of the applicant.
[77]
The
appellant dealt meaningfully with the said averment made by the
respondent in his replying affidavit, the applicant denied issuing
the policy and circulating it to all employees. Be that as it
may, it is not the duty of this court to fully evaluate the
merits of
the applicant’s defence or determine the ultimate success of
such defence on the probabilities. It is sufficient
for the
applicant to illustrate that his defence
prima
facie
has
some prospects of success and to illustrate the existence of a
triable issue.
[15]
[78]
It is
apposite to refer to
RGS
Properties (Pty) Ltd v eThekwini Municipality
,
[16]
wherein it was held:
“
Therefore,
in my view, in weighing up facts for rescission, the court must on
the one hand balance the need of an individual who
is entitled to
have access to court, and to have his or her dispute resolved in a
fair public hearing, against those facts which
led to the default
judgment being granted in the first instance. In its
deliberation the court will no doubt be mindful,
especially when
assessing the requirement of reasonable cause being shown, that while
amongst others this requirement incorporates
showing the existence of
a bona fide defence, the court is not seized with the duty to
evaluate the merits of such defence. The
fact that the court
may be in doubt about the prospects of the defence to be advanced, is
not a good reason why the application
should not be granted. That
said however, the nature of the defence advanced must not be such
that it prima facie amounts
to nothing more than a delaying tactic on
the part of the applicant”.
[79]
The question of which policy was applicable to the
employment agreement of the applicant, prima facie is not
unsustainable at law
and a determination of the probabilities and the
ultimate prospects of success of the defence at this stage is not
appropriate.
It cannot in these proceedings be concluded that
the applicant’s averments lack
bona
fides
or that no triable issue is
raised with some prospects of success.
[80]
For these reasons it is concluded that the
application for rescission must succeed.
[81]
As
for the costs of this application both parties have achieved some
success, the applicant in obtaining recission of the judgment
and the
respondent in relation to the finding that this Court has
jurisdiction. The fairest order in my view would be for
the
costs of this application to follow the result in the action.
[82]
In
the result the following order is made
:
1.
Condonation for the late filing of the rescission
application is granted.
2.
Condonation for the late filing of the answering
affidavit is granted.
3.
The summary judgment granted by Wanless AJ on 18
May 2020 is rescinded and set aside.
4.
The applicant is granted leave to defend the
action.
5.
The costs of this application will be costs in the
cause.
CSP OOSTHUIZEN-SENEKAL
ACTING JUDGE OF THE
HIGH COURT
GAUTENG DIVISION,
JOHANNESBURG
This
judgment was handed down electronically by circulation to the
parties’ representatives by email, by being uploaded to
Case
Lines
and by release to SAFLII. The date and time for
hand-down is deemed to be 16h00 on 8 March 2023.
DATE OF HEARING: 27
February 2023
DATE JUDGMENT
DELIVERED: 8 March 2023
APPEARANCES
:
Counsel
for the Applicant:
Mrs A Moorcroft
Contact Numbers: 078
035 8006 / 011 888 0246
Email:
anna@burgerhyserattorneys.co.za
Attorneys
for the Applicant:
BURGER HUYSER
ATTORNEYS
Counsel
for the Respondent:
Ms CJ Bekker
Cell no: 082 310 1604
Email:
cbekkeer@rivoniaadvocates.co.za
Attorneys
for the Respondent:
SCHRÖTER
ATTORNEYS
Mr M van der Walt
Email:
marco@schroterlaw.co.za
Contact
numbers: 044 874 5372/081 015 7161
[1]
See
Ex
parte Holmes & Co (Pty) Ltd
1939
NPD 301
;
Ex
parte Melcer
1948
(4) SA 395
(W);
Ex
parte Estate Innes
1943
CPD 257
;
McLeod
v Gesade Holdings (Pty) Ltd
1958
(3) SA 672
(W) at 675A;
Friend
v Friend
1962
(4) SA 115
(E);
Chopra
v Sparks Cinemas (Pty) Ltd
1973
(2) SA 352 (D).
[2]
Blanchard,
Krasner & French v Evans
2004
(4) SA 427
(W) at 432H–I.
[3]
Ibid
2.
## [4]Maschinen
Frommer GMBH & co kg v Trisave Engineering & Machinery
Supplies (PTY) limited(415/02)
[2002] ZAWCHC 55; [2003] 1 All SA 453 (C) (10 October 2002) at para
[4]
Maschinen
Frommer GMBH & co kg v Trisave Engineering & Machinery
Supplies (PTY) limited
(415/02)
[2002] ZAWCHC 55; [2003] 1 All SA 453 (C) (10 October 2002) at para
[5]
2016
(2) SA 184 (GP).
[6]
De
Wet and Others v Western Bank Ltd
1977
(4) SA 770
(T) at D-F.
[7]
2018
JDR 0224 (GP) para [20].
[8]
2022
JDR 1505 (GP) at para [21].
[9]
Act
10 of 2013.
[10]
1914
CPD 371
at 376-7.
[11]
Cordiant
Trading v Daimler Chrysler Financial Services (Pty) Ltd
2005
(6) SA 205
(SCA)
para [11].
[12]
Geyser
v Nedbank Ltd: In re Nedbank Ltd v Geyser
2006
(5) SA (W) at para [11], also see Erasmus
Superior
Court Practice
A2
-103
[13]
In
Colyn
v Tiger Food Industries Ltd t/a Meadow Feed Mills (Cape)
,
2003
(6) SA 1
SCA,
the court explained the approach as follows:
“
In
order to succeed an applicant for rescission of a judgment taken
against him by default must show good cause. The authorities
emphasise that it is unwise to give a precise meaning to term “good
cause”. As Smalberger J put it in
HDS
Construction (Pty) Ltd v Wait
:
when dealing with words such as ‘good cause’ and
“sufficient cause” in other Rules and enactments the
Appellate Division has refrained from attempting an exhaustive
definition of their meaning in order not to abridge or fetter
in any
way the wide discretion implied by these words. The court’s
discretion must be exercised after a proper consideration
of all the
relevant circumstances.”
With
that as the underlying approach the courts generally expect an
applicant to show good cause (a) by giving a reasonable explanation
of his default; (b) by showing that his application is made bona
fide; (c) by showing that he has a bona fide defence to the
plaintiff’s claim which prima facie has some prospects, of
success.”
[14]
EH
Hassim Hardware (Pty) Ltd v Fab Tanks CC
2017
JDR 1655 (SCA).
[15]
Ibid
14 para [13] and [17].
[16]
2010
(6) SA 572
(KZD) para [12].
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