Case Law[2023] ZAGPJHC 757South Africa
Olivier and Another v Manzini and Others (2022/20584) [2023] ZAGPJHC 757 (4 July 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
4 July 2023
Headnotes
in trust by the Third Respondent (in lieu of the purchase of the property) in order for the Applicants to attend to the necessary repairs in order to obtain a valid electrical
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Olivier and Another v Manzini and Others (2022/20584) [2023] ZAGPJHC 757 (4 July 2023)
Olivier and Another v Manzini and Others (2022/20584) [2023] ZAGPJHC 757 (4 July 2023)
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REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
JOHANNESBURG
CASE NUMBER:
2022/20584
NOT REPORTABLE
NOT OF INTEREST TO
OTHER JUDGES
REVISED
04.07.23
CESLEY
OLIVIER
First
Applicant
MARIUS
NICOLAS OLIVIER
Second
Applicant
and
STANLEY
BLESSING MANZINI
First
Respondent
NOLUTHANDO
BEAUTY MANZINI
Second
Respondent
GARY
ROSS ATTORNEYS INCORPORATED
Third
Respondent
THE
CITY OF EKURHULENI METROPOLITAN MUNICIPALITY
Fourth
Respondent
JUDGMENT
WANLESS
AJ
Introduction
[1]
This application and Claim - in -
Reconvention (“
counter-application
”)
was heard by this Court as a Special Motion on the 5th of June 2023.
It involves the purchase of a SPACING residential
property situated
at[…], Gauteng (“the property”) by one CESLEY
OLIVIER, an adult female (“
the
First Applicant
”) and MARIUS
NICOLAS OLIVIER, an adult male (“the Second Applicant”)
from one STANLEY BLESSING MANZINI, an adult
male (“
the
First Respondent
”) and NOLUTHANDO
BEAUTY MANZINI, an adult female (“
the
Second Respondent
”). For the sake
of convenience and unless it is necessary to specifically refer to
any of the aforegoing persons in the singular
the First and Second
Applicants will be referred to jointly as “the Applicants”
and the First and Second Respondents
will be referred to jointly as
“the Respondents” throughout the remainder of this
judgment.
[2]
On the 2nd of July 2021 the Applicants and
the Respondents entered into a written agreement of sale and purchase
in respect of the
property (“
the
agreement
”). In terms of
the agreement GARRY ROSS ATTORNEYS INCORPORATED (“
the
Third Respondent
”) was appointed
as the transferring attorney to transfer the property from the name
of the Respondents into the name of the
Applicants. THE CITY OF
EKURHULENI METROPOLITAN MUNICIPALITY is cited herein as the Fourth
Respondent. (“
the Fourth
Respondent
”). Whilst certain
relief is sought by the Applicants against the Third and Fourth
Respondents in the application, neither
of these Respondents has
opposed the application or filed any affidavits herein.
[3]
It was always the intention of this Court
to deliver a written judgment in this matter. In light of,
inter
alia
, the onerous workload under which
this Court has been placed, this has simply not been possible without
incurring further delays
in the handing down thereof. In the
premises, this judgment is being delivered
ex
tempore
. Once transcribed, it will be
“converted”, or more correctly “transformed”,
into a written judgment and
provided to the parties. In this manner,
neither the quality of the judgment nor the time in which the
judgment is delivered, will
be compromised. This Court is indebted to
the transcription services of this Division who generally provide
transcripts of judgments
emanating from this Court within a short
period of time following the delivery thereof on an
ex
tempore
basis.
The relief sought
by the parties
[4]
The relief sought by the parties in any
matter is clearly fundamental to the approach adopted by the Court
hearing that matter.
This is particularly so in this case having
regard to,
inter alia
,
the nature of the relief sought in the Applicants’ Notice of
Motion; that sought by the Respondents in response thereto
in their
counter-application and the decision finally reached by this Court.
The relief sought
by the Applicants
[5]
In terms of clause 10.2 of the agreement
and in law the Applicants seek to claim specific performance of
certain terms of the agreement
and claim damages in terms thereof.
[6]
The Applicants’ Notice of Motion
reads as follows:
“
1.
The First and Second Respondents are ordered to obtain the
services of a suitably qualified electrician to carry out electrical
repairs at Portion 4 of Erf [...], Eastleigh, Township (“the
property”) within five (5) days of the date of this order
and
to produce a valid electrical compliance certificate within 14 days
thereafter, subject to the approval of same by the Electrical
Approved Inspection Authority (“EAIA”).
2. In the event
that, the First and Second Respondents do not comply with the relief
in order 1 above, within 5 days, the
Third Respondent is ordered to
make payment to the Applicants of an amount of R135,900.00 from the
monies held in trust by the
Third Respondent (in
lieu
of the
purchase of the property) in order for the Applicants to attend to
the necessary repairs in order to obtain a valid electrical
compliance certificate.
3. The First and
Second Respondents shall within 5 days of the date of this order,
apply to the Fourth Respondent for a valid
clearance certificate and
make payment of any amounts due in respect of such clearance
certificate, within a period of 14 days
thereafter, in order for same
to be issued by the Fourth Respondent.
4. In the event of
the First and Second Respondents failing to comply with the relief
sought in order 3 above, within 5 days,
the Third Respondent is
hereby ordered to apply for clearance figures and to make payment to
the Fourt Respondent of all sums due
to obtain clearance in terms of
Section 118 of the Municipal Systems Act 32 of 2000, from monies held
by the Third Respondent
in trust (and from the First and Second
Respondents’ proceeds of sale), in order to process the
registration of the transfer
of ownership in and to the property, to
the Applicants.
5. Upon
registration of transfer of the property into the names of the
Applicants, the Third Respondent shall make payment
of all penalty
interest calculated in terms of Annexure “X” attached to
this notice of motion, which penalty interest
as at the end of June
2022 amounts to R254,064.18, by deducting the penalty interest amount
from the proceeds of sale due to the
First and Second Respondents.
6. Upon
registration of transfer of the property into the names of the
Applicants, the Third Respondent shall make payment
of an amount of
R723 015,02 to the Applicants, in order for the Applicants to
remediate the property’s non-compliance with
Section 14 of the
National Building Regulations and Building Standards Act No. 103 of
1997, by deducting the amount of R723 015,02
from the proceeds of
sale due to the First and Second Respondents.
7. In the
alternative to order 6, it is ordered that the amount of R723 015,02
be retained in trust by the Third Respondent
(and duly invested in an
interest-bearing account),
pending the final outcome of the
proceedings herein contemplated
(it was conceded by Adv Franck
who appeared on behalf of the Applicants that this sentence which is
underlined should be deleted
from the Applicants Notice of Motion),
alternatively, an action to be instituted by the Applicants against
the First and Second
Respondents within 30 days of the date of this
order.
8. Upon
registration of transfer of the property into the names of the
Applicants, the Third Respondent shall retain an amount
of R115
453,20 in trust (duly invested in an interest-bearing account)
pending the final determination of an action to be instituted
against
the First and Second Respondents, in respect of the latent defects
present at the property by deducting the amount of R115
453,20 from
the proceeds of sale due to the First and Second Respondents.
9. The Fourth
Respondent shall file answering papers to declare, whether the First
and Second Respondents have complied with
Section 14 of the National
Building Regulations and Building Standards Act No. 103 of 1997.
10. In the alternative to
order 9 above, should the Fourth Respondent fail to file answering
papers, timeously or at all, the Fourth
Respondent is ordered to
disclose the contents of its municipal/building files relating to the
property, to the Applicants and
to provide the Applicants with copies
of the contents of any and all documentation in its possession or
under its control relating
to the property, and the Applicants are
given leave to supplement their affidavit, if necessary.
11. The First and Second
Respondents shall pay the costs of this application jointly and
severally, the one paying the other to
be absolved on the scale as
between attorney and own client. The Plaintiff will only seek costs
against the Third and Fourth Respondents
(jointly and severally
together with the First and Second Respondents, the one paying the
other to be absolved) in the event of
opposition to the application.
12. Further and/or
alternative relief.”
[7]
From the aforegoing, it is immediately
apparent that the said relief is probably best described as a
“
hybrid
”
of mandatory interdicts and damages claims together with the
inevitable costs award on the highest punitive scale. What
is
interesting are the referrals to trial; the recognition of potential
disputes of fact and the anti-dissipation interdicts included
therein.
The relief sought
by the Respondents
[8]
In the Respondents’
counter-application the Respondents seek an order declaring that the
Applicants’ have repudiated
the agreement, together with
further orders that the agreement is cancelled and that the
Applicants are to vacate the property
with 60 days of the order of
this Court. Here too a punitive order for costs is sought by the
Respondents against the Applicants.
Opposition and
disputes of Fact
[9]
In very broad summary:
9.1
The Respondents oppose the relief sought by
the Applicants on the existence of a voetstoots clause in the
agreement;
9.2
It is also averred by the Respondents that
in respect of the various damages claims these are mostly quotations
and not proven damages;
9.3
The Respondents also raise the fact that
the Applicants have failed to discharge the onus incumbent upon them
to prove fraud on
their (the Respondents’) behalf (which is a
difficult onus to discharge) in order to avoid the voetstoots clause;
9.4
The Respondents also aver there are many
factual disputes on the papers, not only in respect of damages claims
but in respect of
the anti-dissipation interdicts sought; what
defects, if proved to be defects, are latent or patent and which are
covered by the
voetstoots clause and which are not;
9.5
The Applicants aver that apart from various
points
in limine
(in respect of the eviction order sought and lack of notice in terms
of the Alienation of Land Act) the Respondents have not proven
repudiation of the agreement by them in that any failure to transfer
the property into their name is solely due to the actions
of the
Respondents (as set out in the Applicants’ application) and not
due to any actions on their behalf.
[10]
On behalf of the Applicants, Adv. Franck
did an admirable job in taking this Court through the application
papers in an attempt
not only to convince this Court that there was
no actual or
bona fide
dispute of fact but also that the Applicants were entitled to the
relief sought and that, as a corollary thereof, the Respondents’
counter-application should be dismissed. On behalf of the
Respondents, it was submitted that, as a result of,
inter
alia
, the material disputes of fact on
the application papers and the election of the Applicants to proceed
by way of motion proceedings
(a process designed for common cause
facts) the application should be dismissed. However, the Respondents
nevertheless persisted
to seek the relief as set out in their
counter-application. Importantly, neither party asked specifically,
at any stage of the
proceedings, that the matter be referred for the
hearing of oral evidence, either in respect of certain issues or to
trial.
The Law
[11]
Most
regrettably for both the parties and this Court, as noted by the
learned authors in
Erasmus:
Superior Court Practice
(“
Erasmus
”)
[1]
:
“
The
question whether the Court has the power to order a reference to
trial mero motu has been described as “one” not
free form
difficulty by the Supreme Court of Appeal and has not yet been
decided by that Court.”
[2]
[12]
That
said, it must be well-known to the legal representatives of both the
Applicants and the Respondents in the present mater that
Courts, as a
matter of practice, often refer matters to trial when needed and
where the parties do not specifically request such
a referral.
Moreover, it has been held that in certain circumstances (and
exceptional cases) the Court may decide that a matter
should be
referred to oral evidence even where no application for such referral
had been made.
[3]
Also, as noted in
Ntsala
,
[4]
as long ago as 1949, in the locus classicus of
Room
Hire Co (Pty) Ltd v Jeppe Street Mansions (Pty) Ltd
,
[5]
it was held that it is undesirable to attempt to settle disputes of
facts solely on probabilities disclosed in contradictory affidavits
as opposed to
viva
voce
evidence.
See
also
National
Director of Public Prosecutions v Zuma
[2009] ZASCA 1
;
2009
(2) SA 277
(SCA) at paragraphs [26] and [27]
[13]
In the matter of
Pahad
Shipping CC v the Commissioner for the South African Revenue Service
2009 JDR 1322 (SCA) at paragraph [20]
the Supreme Court of Appeal
(“the
SCA”)
held the following; -
“
[20]
However, it has been held in a number of cases that an application to
refer a matter to evidence should be made at the
outset and not after
argument on the merits (see Kalili versus Decotex (Pty) Ltd and
another
1988 (1) SA 943
(A) at 981 D-F). As was stated by
Corbett JA in Kalili at 981 E-F the rule is a salutary general rule.
Unnecessary costs
and delay can be avoided by following the general
rule. But Corbett JA also stated that the rule is not
inflexible. In Du
Plessis and another NNO versus Rolfes Ltd
[1996] ZASCA 45
;
1997 (2)
SA 354
(A) at 366 G-367A this court dealt with an application which
was made for the first-time during argument in this court. The
application was dismissed but it is implicit in the judgment that, in
appropriate circumstances, this Court may decide that a matter
should
be referred to evidence even where no application for such referral
had been made in the court below. It would naturally
be in
exceptional cases only that a court will depart from the general rule
(Bocimar NV versus Kotor Oversees Shipping Ltd
[1994] ZASCA 5
;
1994 (2) SA 563
(A) at
587 C-D). In my view this is such a case.”
[14]
Also, in the case of
Tryzone
Fourteen (Pty) Ltd versus Batchelor N.O. and Others
2016 JDR 0531 (ECP) at paragraphs [38]
and [39]
the court held:
“
[38]
Dismissing the application instead of referring it to oral evidence
shall not be a solution. That shall necessitate
the applicant
perusing action proceedings. In terms of Rule 6(5)(g) of the Uniform
Rules, a court has a wide discretion with regard
to referring matters
to oral evidence where application proceeds cannot be properly
decided by way of affidavit. An application
to refer a matter
to evidence should be made at the outset and not after argument on
the merits. However, in certain circumstances
(and exceptional
cases), the court may decide that a matter should be referred to oral
evidence even when no application for such
referral had been made in
the court below.”
The court then cited the
matter of
Pahad
(supra).
“
[39]
I am satisfied that this is an appropriate case for this Court to
refer the matter for hearing. The dispute is massive
and
insurmountable to be resolved on the papers. The dispute of facts
goes to the heart of the issues between the parties. I am
further of
the view that the applicant has not established the allegations of
fraud on the papers the matter should be referred
to oral evidence.”
[15]
These matters are useful in respect of the
present matter since obviously in the present matter no application
was made, as set
out earlier in this judgment, to refer the matter to
oral evidence. But more so, as decided in the matter of
Tryzone
and as will be dealt with later in this judgment, it is, in the
opinion of this Court, that the disputes of fact in the present
matter are insurmountable and numerous. Furthermore, the reference to
the allegation of fraud in the matter of
Tryzone
is particular appropriate with regard to the present matter and the
opposition of the Applicants to the voetstoots clause as raised
by
the Respondents.
[16]
Finally, it is fairly trite that subrule
6(5)(g) gives a Court a fairly wide discretion to refer a matter,
where there is a dispute
of fact, to either oral evidence or trial,
depending on the nature of that dispute.
Conclusion
[17]
Having carefully considered all of the
well-prepared arguments placed before this Court by both Counsel; the
application papers
before this Court and the legal principles in
respect of all of the issues involved, it is the opinion of this
Court that there
are numerous material disputes of fact which have
arisen in respect of both the application and counter-application in
the present
matter. As set out earlier in this judgment these
disputes of fact are fundamentally linked to the nature of the relief
sought.
Furthermore, whilst they may not, at first, be
strikingly apparent, they become more so when one realises that, once
again by virtue
of,
inter alia
,
the nature of the relief sought, one dispute of fact is often related
to another. Just one example of this is the following.
The
alleged failure or the Respondents to comply with the obligation to
provide the relevant electrical compliance certificate
is related to
the claim for damages in respect of the penalty clause which, in
turn, is related to the basis for the Respondents’
counter-application, namely the repudiation of the agreement. This,
of course, is putting aside, for present purposes, the precise
nature
of the relief sought in paragraph 1 of the Applicants’ Notice
of Motion.
[18]
The alternative to referring this matter to
oral evidence or trial would be to dismiss both the application and
counter-application
and to order each party to pay their own costs.
This would not, in the opinion of this Court, be in the best
interests of
either of the parties. It would certainly not be
in the interests of justice. In the opinion of this Court the
present
matter is an “exceptional one” as envisaged by
the authorities referred to earlier in this judgment and which
justifies
this Court making an appropriate order in terms of subrule
6(5)(g).
[19]
At this stage, it is appropriate to set out
the provisions of that subrule. Subrule 6(5)(g) states that:
“
Where
an application cannot properly be decided on affidavit the court may
dismiss the application or make such order as it deems
fit with a
view to ensuring a just and expeditious decision. In
particular, but without effecting the generality of the aforegoing,
it may direct that oral evidence be heard on specified issues with a
view to resolving any dispute of fact and to that end may
order any
deponent to appear personally or grant leave for such deponent or any
other person to be subpoenaed to appear and be
examined and
cross-examined as a witness or it may refer the matter to trial with
appropriate directions as to pleadings or definition
of issues, or
otherwise.”
[20]
It is clear that the issues in the present
matter are far too numerous to warrant a referral to oral evidence on
specific issues.
In the premises, this matter must be referred
to trial. With regard thereto, this Court is acutely aware that
the parties
have, regrettably, gone to considerable expense in the
preparation of extensive affidavits in the matter. Normally, it
is
desirable to include the affidavits as part of the pleadings. In
this particular matter, due,
inter alia
,
to the volume and nature of the relief sought, this is not really
possible. This Court is also well aware that the parties will
probably have the need,
inter alia
,
to call expert evidence. Having regard to all of the
aforegoing, it is the opinion of this Court that the order that this
Court should make should be left as wide as possible. The affidavits
will, of course, remain as part of the evidence to be used,
where
appliable, at the trial.
[21]
With regard to the issue of costs, it is of
course trite that costs fall within the general discretion of the
Court. In this particular
matter, whilst costs normally follow the
result there has been no victor and it would be appropriate that the
costs of this matter
be reserved for decision of the court finally
determining the trial. That court will be in a far better position at
the end of
that trial to make a decision as to who should ultimately
pay the costs.
Order
[22]
This Court makes the following order:
1.
The application and counter-application
under case number: 2022/20584 are referred to trial in terms of
subrule 6(5)(g);
2.
The First and Second Applicants are to
serve and file their Particulars of Claim within thirty (30) days of
this order;
3.
Thereafter, the Uniform Rules of Court will
apply to the action under case number: 2022/20584;
4.
The costs of the application and
counter-application under case number: 2022/20584 are reserved for
the decision of the court determining
the action under case number:
2022/20584.
B.C. WANLESS
Acting Judge of
the High Court
Gauteng Division,
Johannesburg
Heard
:
05 June 2023
Ex
Tempore
:15 June 2023
Transcript
:
04 July 2023
Appearances
:
For
Applicants
:
L
Franck
Instructed
by
:
Cherry
Singh Inc.
For
First and Second Respondent
:
N
Sikhwivhilu
Instructed
by
:
Sithia
& Thabela Attorneys
[1]
At
D1-80.
[2]
See
the cases at Erasmus, footnote 2 (D1-80).
[3]
Ntsala
v Rustenburg Local Municipality and Another (North West Provincial
Division, Mahikeng), case number M124/20 at paragraph
[12].
[4]
Ntsala
at paragraph [13].
[5]
Room
Hire Co (Pty) Ltd versus Jeppe Street Mansions (Pty) Ltd
1949 (3) SA
1155
(T) at 1162.
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