Case Law[2023] ZAGPJHC 412South Africa
DBT Technologies Proprietary Limited v MHI Power ZAF Proprietary Limited and Others (20/44373) [2023] ZAGPJHC 412 (2 May 2023)
Headnotes
in Affordable Medicines Trust & Others v Minister of Health & Others[2]
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## DBT Technologies Proprietary Limited v MHI Power ZAF Proprietary Limited and Others (20/44373) [2023] ZAGPJHC 412 (2 May 2023)
DBT Technologies Proprietary Limited v MHI Power ZAF Proprietary Limited and Others (20/44373) [2023] ZAGPJHC 412 (2 May 2023)
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# IN THE HIGH COURT OF
SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
# GAUTENG
DIVISION, JOHANNESBURG
GAUTENG
DIVISION, JOHANNESBURG
# CASE NO: 20/44373
CASE NO: 20/44373
# NOT REPORTABLE
NOT REPORTABLE
# NOT OF INTEREST TO OTHER
JUDGES
NOT OF INTEREST TO OTHER
JUDGES
# NOT REVISED
NOT REVISED
# 02.05.23
02.05.23
In the matter between:-
DBT
TECHNOLOGIES PROPRIETARY LIMITED
Applicant
and
MHI
POWER ZAF PROPRIETARY LIMITED
First
Respondent
MITSUBISHI
POWER EUROPE GMBH
Second
Respondent
ESKOM HOLDINGS SOC
LIMITED
Third
Respondent
Neutral
Citation:
Dbt Technologies
Proprietary Limited v Mhi Power Zaf Proprietary Limited and Others
(Case No. 20/44373) [2023] ZAGPJHC 412
(2 May 2023)
JUDGMENT
YACOOB J:
1.
This matter came before me in
the commercial court. The main application was set down for three
full days of argument, and the record
comprised more than three
thousand six hundred pages. The applicant had by that time amended
its notice of motion more than once,
the latest amendment having been
effected on 10 November 2021, the second day of the hearing of the
application.
2.
Before
judgment was given, the first and second respondents (“the
respondents”)
[1]
filed an
affidavit on 30 November 2021, whereafter the applicant indicated on
07 December 2021 that it intended to file a
response to the
further affidavit, in the new year. The letter also informed
that the applicant intended to file another
notice of intention to
amend its notice of motion in the new year.
3.
On 4 February 2022 the
applicant filed its notice of intention to amend in terms of Rule 28,
together with its further confidential
replying affidavit. The
respondents filed a notice of objection to the amendment on 18
February 2022 and the applicant duly filed
an application to amend on
04 March 2022. Once answering and replying affidavits had been filed
in accordance with the Rule, the
application to amend was heard
during the short recess on 08 April 2022. This judgment determines
the application to amend.
# THE MAIN APPLICATION
THE MAIN APPLICATION
4.
The applicant is a
subcontractor to the respondents, who in turn have contracted with
Eskom to carry out works including relation
to Medupi and Kusile
power stations. The subcontracts between the applicant and the
respondents rely to an extent on the main contracts
between Eskom and
the respondents with regard to certain contractual benefits, delay
damages, extensions of time and limitations/exclusions
of liability.
5.
The applicant sought from the
respondents access to documents it contends are relevant to these
issues, through proceedings before
the contractual Dispute
Adjudication Board (“the DAB”). The applicant contends
that the respondents have not provided
to it the documents they are
obliged to provide in terms of the decisions of the DAB.
6.
In the main application, the
applicant seeks to make the DAB decisions orders of this court, and
seeks also an order that the respondents
provide certain documents
identified in schedules annexed to its confidential affidavit.
7.
Over the three days in which
the main application was heard, the applicant spent much time
demonstrating why it is that it considered
that it needed documents
which may be relevant to delays, damages, benefits and extensions
that had been granted or taken place
in respect of the main
contracts, in order to be able to determine its own damages. The
respondents, on the other hand, concentrated
on demonstrating that
the application was an abuse of process, that it was impermissibly
broad, and that had the applicant done
the painstaking exercise of
checking what documents had been provided and cross-referencing
against what was sought, it would have
realized that it had in its
possession a number of the documents. The respondents submitted that
it was the job of neither the
court nor the respondents to carry out
this exercise.
8.
The respondents also conceded
that certain documents had not been provided and tendered to provide
them.
9.
The respondents then filed the
affidavit referred to above, which dealt with a further DAB decision
which had been delivered determining
a dispute between the
respondents and Eskom, and which they agreed fell within the ambit of
the documents they had been ordered
by the DAB to make available, and
which they had tendered at the hearing to provide.
#
# THE AMENDMENT
THE AMENDMENT
10.
In its further confidential
replying affidavit, filed in response to the respondents’
further affidavit, the applicant states
that it took a decision to
circumscribe the relief sought against the background of the
respondents’ arguments that they
had already disclosed a
significant number of documents, and according to them had disclosed
all the documents in their possession
that were covered by the DAB
decisions, and that the applicant ought to have done a critical
analysis of the documents already
disclosed and specifically asked
for what it contends was missing. It suggests that the new notice of
motion circumscribes what
is sought as required by the respondents.
11.
The applicant submits
that the new relief is narrower than the original relief sought, but
does not fundamentally change what was
sought in the main
application, nor does it change the argument on which the relief
sought is based. The applicant submits that
the relief sought now
directly mirrors the terms of the DAB decisions, but that it is more
focused and more limited, which the
assists the court in determining
the dispute, and that the respondents’ opposition to the
amendment is unreasonable. In any
event, the applicant submits, it is
not relevant whether the new prayers can succeed or in fact assist
the court in determining
the dispute. It would be more appropriate,
for example, to allow the amendment and then dismiss the application
because the case
has not been made out, or because a sufficiently
clear order cannot be made, than it would be to disallow the
amendment.
12.
The respondents submit that
there is no need for any amendment – if certain relief was
simply abandoned, the applicant simply
had to inform the respondents
and the court that this was so. The applicant has amended its notice
of motion three times without
any objection and the applicant is
reconceptualizing the relief sought in a way that makes all the work
that has been done so far
in the main application either irrelevant
or of unclear application. The amendment results in greater
uncertainty rather than greater
certainty, because rather than simply
delete certain prayers, the relief is reformulated using terminology
that has not been defined
in the pleadings or the argument, and which
is open to interpretation in the same way that the disputed DAB
decisions are. The
amendment is prejudicial and is intended to
attempt to resurrect a case that is devoid of merit.
13.
Although it was not necessary
to do so, the applicant instituted its application to amend by means
of a notice of motion supported
by affidavit. The respondents filed
an answering affidavit and the applicant a reply, even though it was,
strictly speaking, unnecessary,
and the parties are agreed that the
amendment is a legal question, not a factual one.
14.
Taking into account that none
of the affidavits was necessary save perhaps for one affidavit
setting out the stated purpose of the
amendment (the need for which I
simply assume in the applicant’s favour) I do not propose with
the skirmishes between the
parties regarding the adequacy or
appropriateness of the contents of those affidavits.
15.
Considering the rather
contradictory submissions made by the applicant, it is necessary to
set out the criteria for the grant of
an opposed application to amend
a notice of motion. A cursory examination of the two sets of written
argument leads one to believe
that the parties are
ad
idem
about what the
law requires and provides, but closer examination shows that they are
not.
# THE LAW RELEVANT TO THE
AMENDMENT OF A NOTICE OF MOTION
THE LAW RELEVANT TO THE
AMENDMENT OF A NOTICE OF MOTION
16.
Rule 28 of the Uniform Rules
of Court governs amendments. Subrule 28(1) provides for notice of
intention to amend to be provided,
28(3) and (4) for an objection and
a subsequent application to amend, and subrule 28(10) for a Court to
grant leave to amend any
document at any stage before judgment, on
any terms which it deems fit.
17.
There
is no dispute that a court has a wide discretion when it comes to
whether to allow an amendment to a notice of motion. As
the
Constitutional Court held in
Affordable
Medicines Trust & Others v Minister of Health & Others
[2]
[9] The principles
governing the granting or refusal of an amendment have been set out
in a number of cases. There is a useful collection
of these cases and
the governing principles in
Commercial Union Assurance Co Ltd v
Waymark NO
. The practical rule that emerges from these cases is
that amendments will always be allowed unless the amendment is
mala
fide
(made in bad faith) or unless the amendment will cause an
injustice to the other side which cannot be cured by an appropriate
order
for costs, or 'unless the parties cannot be put back for the
purposes of justice in the same position as they were when the
pleading
which it is sought to amend was filed'. These principles
apply equally to a notice of motion. The question in each case,
therefore,
is, what do the interests of justice demand?
[
Footnotes omitted
]
18.
Commercial
Union Assurance Co Ltd v Waymark NO
,
[3]
referred to by the Constitutional Court above, distills the
principles from the applicable cases: as follows:
[4]
1.
The Court has a
discretion whether to grant or refuse an amendment.
2.
An amendment cannot be
granted for the mere asking; some explanation must be offered
therefor.
3.
The applicant must show
that
prima facie
the amendment 'has something deserving of consideration, a triable
issue'.
4.
The modern tendency
lies in favour of an amendment if such 'facilitates the proper
ventilation of the dispute between the parties'.
5.
The party seeking the
amendment must not be
mala
fide.
6.
It must not 'cause an
injustice to the other side which cannot be compensated by costs'.
7.
The amendment should
not be refused simply to punish the applicant for neglect.
8.
A mere loss of
time is no reason, in itself, to refuse the application.
9.
If the amendment is not
sought timeously, some reason must be given for the delay.
19.
In exercising its discretion,
and determining what the interests of justice are, the court must
consider these issues. However,
as can be seen from the manner in
which the court formulated these principles, none of them is
definitive, and each requires the
court to look at the overall
context in which the amendment is sought.
20.
For example, although a court
may look at the issues from the perspective of facilitating proper
ventilation of the issues, this
requires the issues to be identified,
and a decision to be made about whether the amendment does in fact
enhance the ventilation
of those issues.
21.
It
is also worth keeping in mind this dictum from
Benjamin
v Sobac South African Building and Construction (Pty) Ltd
[5]
“
Whilst
an amendment remains an indulgence which has always to be justified
by the seeker, it is the prejudice to the opponent that
is the
touchstone for the grant or refusal of the application. Even an
application to amend a cause of action or the relief claimed
is
subjected ultimately to the prejudice test.
…
Where a proposed
amendment will not contribute to the real issues between the parties
being settled by the Court, it is, I think,
clear that an amendment
ought not to be granted. To grant such an amendment will simply
prolong and complicate the proceedings
for all concerned and must, in
particular, cause prejudice to the opposing party…”
22.
Ultimately, the question is in
fact whether the amendment is in the interests of justice, and each
of the factors set out above
is relevant to that determination.
However, it is clear that this cannot be a closed list, as there can
never be a closed list
of what is relevant to the interests of
justice.
23.
The argument of the applicant
is, essentially, that the
ratio
of the
Constitutional Court in the
Affordable
Medicines Trust
case
is that, unless the amendment is
mala
fide
or causes
prejudice to the other side that cannot be cured by costs, the
interests of justice require that an amendment be permitted.
24.
This is, in my view, an
impermissible simplification of the complexities of the concept of
the interests of justice. It also ignores
the fact that the
Constitutional Court relies on the cases set out in
Commercial
Union
, which make
it clear that there are more than just two factors to be considered,
and that an amendment is not simply there for
the asking. By invoking
the “interests of justice” test, the Constitutional Court
clearly does not seek to limit
what may or may not be in
the interests of justice. This would be inconsistent its
jurisprudence since inception. The Court is
simply making it clear
that the interests of justice are the ultimate or overarching
deciding principle.
CONCLUSION
25.
It is clear from what is set
out above that a number of the applicant’s arguments must be
rejected. In particular, the notion
that if the amendment it is not
mala fides
or otherwise prejudicial, the real effect of the amendment on the
matter is irrelevant, can have no weight. The amendment must
actually
contribute to the real issues before the court. If it does not, it
cannot be in the interests of justice to allow it.
(It must be noted
that this is relevant only to an amendment that is contested.)
26.
The applicant submits on the
one hand that the amendment results in the relief sought mirroring
the DAB decisions to avoid ambiguity,
and also that they are more
focused that the existing relief. These submissions are mutually
incompatible, because if they exactly
mirrored the DAB decisions they
could not be more focused than the previous relief, which sought to
give content to the DAB decisions.
27.
There would be nothing served
by allowing an amendment that “simply mirrored” the DAB
decisions, because it is the meaning
of the DAB decisions that has
already taken up three days of oral argument, many pages of analysis,
and many weeks of reading and
analysis. To the extent that the
amendment mirrors the decisions nothing can be gained by permitting
it, since it would only result
in an ambiguous order which the
parties have already demonstrated cannot be implemented simply
between them.
28.
The relief sought also is not
more focused. It reformulates what was asked for, but it still does
so in broad and general terms,
and certainly does not meet the
criticism that, according to the applicant in the further
confidential replying affidavit, the
new relief is formulated to
meet. It does not, in my view, assist in ventilating or determining
the real issues between the parties.
29.
For these reasons, I do not
consider that it is in the interests of justice to grant the
amendment.
30.
The application to amend the
notice of motion is dismissed with costs.
S. YACOOB
JUDGE OF THE HIGH
COURT
GAUTENG LOCAL
DIVISION, JOHANNESBURG
Appearances
Counsel
for the applicant:
MM
Antonie SC with E Eksteen
Instructed
by:
Webber
Wentzel
Counsel
for the first and second respondents:
RM
Pearse SC
Instructed
by:
Pinsent
Masons
Date of hearing: 08 April
2022
Date
of judgment 02 May 2023
[1]
The third respondent did not participate in these proceedings as no
relief is sought against it and it abides the decision of
the Court.
[2]
[2005] ZACC 3
;
2006
(3) SA 247
(CC) at
[9]
[3]
1995
(2) SA 73 (Tk)
[4]
At
77F-J
[5]
1989
(4) SA 940
(C) at 957I-958C
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