Case Law[2023] ZAGPJHC 1171South Africa
Petzer v Macfarlane and Another (007859/2022) [2023] ZAGPJHC 1171 (26 September 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
26 September 2023
Headnotes
Summary:
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Petzer v Macfarlane and Another (007859/2022) [2023] ZAGPJHC 1171 (26 September 2023)
Petzer v Macfarlane and Another (007859/2022) [2023] ZAGPJHC 1171 (26 September 2023)
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sino date 26 September 2023
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
CASE
NO
:
007859/2022
DATE
:26/09/2023
NOT
REPORTABLE
NOT
OF INTEREST TO OTHER JUDGES
In
the matter between:
PETZER,
ALEXANDER ROYCETON
Plaintiff
And
MACFARLANE,
NEIL STEVEN
First
Defendant
ROYCETON
ENGINEERING CC
(Registration
No. 2000/024864/23)
Second
Defendant
Coram:
Ternent AJ
Heard
on
: 23 May 2023
Delivered:
26 September 2023
Summary:
JUDGMENT
# TERNENT,
AJ:
TERNENT,
AJ
:
# [1]
This matter comes before me by way of an exception in terms of Rule
23(1) which has been taken by the first defendant to the
plaintiff’s
particulars of claim. The first defendant delivered a notice to
remove the causes of complaint of which he complains
and the
plaintiff did not respond.
[1]
This matter comes before me by way of an exception in terms of Rule
23(1) which has been taken by the first defendant to the
plaintiff’s
particulars of claim. The first defendant delivered a notice to
remove the causes of complaint of which he complains
and the
plaintiff did not respond.
# [2]
The first defendant objects to the particulars of claim on a number
of grounds, which grounds he contends renders the particulars
of
claim vague and embarrassing justifying that the plaintiff’s
particulars of claim be struck out and set aside together
with an
order for costs. Insofar as the exception is upheld, the
plaintiff is to be afforded an opportunity of amending his
particulars of claim within ten days of the service of the Court’s
order by e-mail.
[2]
The first defendant objects to the particulars of claim on a number
of grounds, which grounds he contends renders the particulars
of
claim vague and embarrassing justifying that the plaintiff’s
particulars of claim be struck out and set aside together
with an
order for costs. Insofar as the exception is upheld, the
plaintiff is to be afforded an opportunity of amending his
particulars of claim within ten days of the service of the Court’s
order by e-mail.
# [3]
In considering the exceptions raised, I am required to deal with them
“sensibly”and
remain alive to their purpose, “weed[ing]
out cases without legal merit”.[1]
[3]
In considering the exceptions raised, I am required to deal with them
“
sensibly”
and
remain alive to their purpose, “
weed[ing]
out cases without legal merit”
.
[1]
# [4]
The excipient must establish that upon every reasonable
interpretation of the particulars of claim (including the documents
upon which it is based), no cause of action is disclosed.[2]
[4]
The excipient must establish that upon every reasonable
interpretation of the particulars of claim (including the documents
upon which it is based), no cause of action is disclosed.
[2]
# [5]
The decision ofLiving
Heads v Ditz[3]summarises the approach a Court must take when an exception is
raised. As such, I can accept the truth of the allegations
in
the particulars of claim. An exception is not meant to
embarrass an opponent but to expose the weakness in the case so
that
the case will come to an end, and on any construction of the
particulars of claim, no cause of action must be established.
[5]
The decision of
Living
Heads v Ditz
[3]
summarises the approach a Court must take when an exception is
raised. As such, I can accept the truth of the allegations
in
the particulars of claim. An exception is not meant to
embarrass an opponent but to expose the weakness in the case so
that
the case will come to an end, and on any construction of the
particulars of claim, no cause of action must be established.
# [6]
The particulars of claim discloses that the agreement upon which the
plaintiff relies is a termination agreement which was concluded
between the plaintiff, in his personal capacity and in his
representative capacity, as a member of the second defendant, with
the first defendant. The terms thereof are set out at paragraph 15 of
the particulars of claim.[4]In
the alternative reliance is placed on section 36 of the Close
Corporations Act.[5]
[6]
The particulars of claim discloses that the agreement upon which the
plaintiff relies is a termination agreement which was concluded
between the plaintiff, in his personal capacity and in his
representative capacity, as a member of the second defendant, with
the first defendant. The terms thereof are set out at paragraph 15 of
the particulars of claim.
[4]
In
the alternative reliance is placed on section 36 of the Close
Corporations Act.
[5]
# [7]
The relief sought is declaratory in nature in that the plaintiff
seeks, as a consequence of this termination agreement, that
he be
declared the sole member of the corporation with effect from 31
August 2001,alternativelythat the defendant’s
membership is terminated with effect from 31 August 2001 so that he
will not benefit any further as
a member of the corporation.
[7]
The relief sought is declaratory in nature in that the plaintiff
seeks, as a consequence of this termination agreement, that
he be
declared the sole member of the corporation with effect from 31
August 2001,
alternatively
that the defendant’s
membership is terminated with effect from 31 August 2001 so that he
will not benefit any further as
a member of the corporation.
# [8]
In determining whether the particulars of claim is vague and
embarrassing, Southwood J said that:
[8]
In determining whether the particulars of claim is vague and
embarrassing, Southwood J said that:
“
In McKenzie
v Farmers' Co-operative Meat Industries Ltd
1922
AD 16
op
23 het die Hof die volgende omskrywing van 'skuldoorsaak' aanvaar:
'every
fact which it would be necessary for the plaintiff to prove, if
traversed, in order to support his right to the judgment
of the
Court'
maar
die Hof het die volgende kwalifikasie bygevoeg:
'It
does not comprise every piece of evidence which is necessary to prove
each fact, but every fact which is necessary to be proved.'
Hierdie
kwalifikasie beklemtoon die belangrike onderskeid tussen die facta
probanda, dws die feite wat bewys moet word om 'n
skuldoorsaak te
openbaar, en die facta probantia, dws die feite wat daardie
feite bewys - Makgae v Sentraboer (Koöperatief)
Bpk
(supra op 244F - G)
In Makgae
v Sentraboer (Koöperatief) (supra) het Ackermann R tot die
gevolgtrekking gekom op 245D - E
‘
dat
'n gedingvoerder, ten einde te verseker dat besonderhede van
vordering nie eksipieerbaar is op grond daarvan dat dit ''bewerings
mis wat nodig is om die aksie te staaf'' nie, moet toesien dat die
wesenlike feite (dws die facta probanda en nie die facta
probantia of getuienis ter bewys van die facta
probanda nie) van sy eis met voldoende duidelikheid
en volledigheid
uiteengesit word dat, indien die bestaan van
sodanige feite aanvaar word, dit sy regskonklusie staaf en hom in
regte sou moet laat
slaag tvb die regshulp of uitspraak wat hy
aanvra'
and;
There
is no exhaustive test to determine whether a pleading contains
sufficient “particularity” for the purposes of
this
subrule but it is essentially an issue of fact: a pleading
contains sufficient particularity if it identifies and defines
the
issues in such a way that enables the opposite party to know what
they are.”
[6]
# [9]
In the commentary to the Rule,[7]the purpose of pleadings is not to set out evidence but the material
facts upon which the plaintiff relies, underpinning
its cause of
action, which in this case is a termination agreement in which the
plaintiff alleges that the 10% shareholding acquired
by the first
defendant, in lieu of his employment services as a salesman, must, by
agreement, revert to him.
[9]
In the commentary to the Rule,
[7]
the purpose of pleadings is not to set out evidence but the material
facts upon which the plaintiff relies, underpinning
its cause of
action, which in this case is a termination agreement in which the
plaintiff alleges that the 10% shareholding acquired
by the first
defendant, in lieu of his employment services as a salesman, must, by
agreement, revert to him.
# [10]
It was submitted to me by the respondent’s counsel that
the applicant’s complaints do not expose an
excipiable cause of
action, and any “vagueness” could be
remedied by a request for further particulars under Rule 21. Also the
excipient has approached this
Court under the incorrect
procedural rule and should rather have brought an application under
Rule 30 which permits for proper
complaints under Rule 18 and more
particularly Rules 18(4) and Rule 18(6).
[10]
It was submitted to me by the respondent’s counsel that
the applicant’s complaints do not expose an
excipiable cause of
action, and any “
vagueness
” could be
remedied by a request for further particulars under Rule 21. Also the
excipient has approached this
Court under the incorrect
procedural rule and should rather have brought an application under
Rule 30 which permits for proper
complaints under Rule 18 and more
particularly Rules 18(4) and Rule 18(6).
# [11]As
Cloete J said in Sasol Industries (Pty) Ltd t/a Sasol 1 v
Electrical Repair Engineering (Pty) Ltd t/a L H Marthinusen1992
(4) SA 466 (W)at
469J--470, '. . . if a pleading both fails to comply with Rule 18 and
is vague and embarrassing, the defendant has a choice of
remedies'
(i.e. to proceed by way of Rule 23 or Rule 30). I agree with counsel
that the crucial distinction between Rules 23 and
30 may be
summarised as follows:
[11]
As
Cloete J said in Sasol Industries (Pty) Ltd t/a Sasol 1 v
Electrical Repair Engineering (Pty) Ltd t/a L H Marthinusen
1992
(4) SA 466 (W)
at
469J--470, '. . . if a pleading both fails to comply with Rule 18 and
is vague and embarrassing, the defendant has a choice of
remedies'
(i.e. to proceed by way of Rule 23 or Rule 30). I agree with counsel
that the crucial distinction between Rules 23 and
30 may be
summarised as follows:
## 11.1(a)
an exception that the pleading is vague and embarrassing may only be
taken when the vagueness and embarrassment strikes
at the root of the
cause of action as pleaded; whereas
11.1(a)
an exception that the pleading is vague and embarrassing may only be
taken when the vagueness and embarrassment strikes
at the root of the
cause of action as pleaded; whereas
## 11.2(b)
Rule 30 may be invoked to strike out the claim pleaded when
individual averments do not contain sufficient particularity;
it
is not necessary that the failure to plead material facts goes to the
root of the cause of action.[8]
11.2(b)
Rule 30 may be invoked to strike out the claim pleaded when
individual averments do not contain sufficient particularity;
it
is not necessary that the failure to plead material facts goes to the
root of the cause of action.
[8]
##
# [12]
In the decision ofTrope
and Others v South African Reserve Bank[9]Grosskopf JA made observations about exceptions and more particularly
those that a pleading is vague and embarrassing:
[12]
In the decision of
Trope
and Others v South African Reserve Bank
[9]
Grosskopf JA made observations about exceptions and more particularly
those that a pleading is vague and embarrassing:
“…
Previously
"minor blemishes in, and unradical embarrassments caused by, a
pleading” could be cured by further particulars
(Purdon v
Muller
1961 (2) SA 211
(A) at 215F), but requests for further
particulars to pleadings are no longer competent. Exceptions that
pleadings are vague and
embarrassing have been allowed in the past
even though the embarrassment might have been removed by the
furnishing of particulars
in response to a request. (See Osman v
Jhavary & Others
1939 AD 351
at 365-366, a case which dealt with
the practice at that time pertaining in Natal.) The position is now
regulated by Rule 23(1)
of the Uniform Rules of Court, which provides
that, where a party intends taking an exception that a pleading is
vague and embarrassing,
he shall first afford his opponent an
opportunity of removing the cause of complaint. The embarrassment and
consequent prejudice
complained of can indeed often be removed by an
appropriate amendment providing further and better particularity. No
such preliminary
step is required, on the other hand, where the
exception is taken on the ground that the pleading lacks averments
necessary to
sustain an action or defence.
The respondent in the
present matter duly gave the appellants notice in terms of Rule 23(1)
that unless they removed the cause of
complaint set out in the notice
it intended taking an exception to their particulars of claim on the
ground that they were vague
and embarrassing. The appellants
thereupon amended their particulars of claim, but the respondent was
still not satisfied and gave
them notice once again that it intended
taking an exception that their amended particulars of claim were
vague and embarrassing.
Their response to this request was that they
did not intend amending their particulars of claim, which they
averred were in order.
The respondent then took an exception in terms
of Rule 23(1) on the ground that the appellants' amended particulars
of claim were
vague and embarrassing. There was never any
suggestion that the respondent also objected to the particulars of
claim on the
ground that they did not disclose a cause of action. The
exception was nothing more than it purported to be, i.e. an exception
that the amended particulars of claim were vague and embarrassing.
Both in substance and in form the notice of exception unequivocally
assails the manner in which the particulars of claim were formulated
and not the validity of the causes of action sought to be
alleged
therein. That is how the parties treated the exception throughout and
how the learned judge a quo viewed it and dealt with
it in his
judgment. The following statement appears in the judgment of the
court a quo, supra, at 217H-I, immediately preceding
the order:
“
Finally,
I should state that I have not considered it necessary to deal with
certain aspects of the law raised in the very comprehensive
arguments
advanced on behalf of the plaintiffs. Those aspects are, in my
judgment, apposite in the case of an exception on the
grounds that no
cause of action is disclosed by the pleadings, but are not
appropriate for purposes of the present exception.”
# [13]
Further Grosskopf[10]stated:
[13]
Further Grosskopf
[10]
stated:
“
It
is trite that a party has to plead – with sufficient clarity
and particularity – the material facts upon which he
relies for
the conclusion of law he wishes the court to draw from those facts
(Mabaso v Felix 1981 (3) SA 865 (A) at 875A-H; Rule
18(4)). It is not
sufficient, therefore, to plead a conclusion of law without pleading
the material facts giving rise to it. (Radebe
and Others v Eastern
Transvaal Development Board
1988 (2) SA 785
(A) at 792J-793G).
“
In
the case of S.A. Motor Industry Employers' Association, supra, this
court likewise had to determine the true nature of an exception
to a
plaintiff's particulars of claim. The exception taken in that case
was that the plaintiff had not “pleaded the material
facts”
on which it relied for a particular averment and, because of such
failure, the defendant did not know “on what
basis” the
plaintiff relied. The court concluded at 97C-D that the true nature
of the exception in that case was “that
the defendant was
embarrassed by the vagueness or insufficiency of the facts averred……”
# [14] In my view
these aforesaid principles equally apply to the exception in
this matter.
[14] In my view
these aforesaid principles equally apply to the exception in
this matter.
THE CAUSES OF
COMPLAINT
# [15] The first
exception is directed at paragraph 10 of the particulars of claim.
It is pleaded, in this paragraph,
that in June 2001 the plaintiff and
the second defendant entered into an oral agreement identified as the
employment agreement
with the first defendant. The first defendant
was employed as a sales representative and the scope of his
employment entailed broadening
the second defendant’s client
base and attracting new customers to the second defendant. In
addition, he was given
the use of a motor vehicle to carry out his
duties with the cost of fuel and maintenance in the course of his
duties as an employee
to be paid by the second defendant. It is
furthermore averred that he would be remunerated as to 10% of the
members’ interest
in the corporation by making an initial
contribution and providing further employment linked
contributions for which
he would receive no salary or a discounted
salary .
[15] The first
exception is directed at paragraph 10 of the particulars of claim.
It is pleaded, in this paragraph,
that in June 2001 the plaintiff and
the second defendant entered into an oral agreement identified as the
employment agreement
with the first defendant. The first defendant
was employed as a sales representative and the scope of his
employment entailed broadening
the second defendant’s client
base and attracting new customers to the second defendant. In
addition, he was given
the use of a motor vehicle to carry out his
duties with the cost of fuel and maintenance in the course of his
duties as an employee
to be paid by the second defendant. It is
furthermore averred that he would be remunerated as to 10% of the
members’ interest
in the corporation by making an initial
contribution and providing further employment linked
contributions for which
he would receive no salary or a discounted
salary .
# [16]
The first defendant complains that he should have been supplied with
particulars of his employment in writing as required
in terms of the
provisions of section 29 of the Basic Conditions of Employment
Act.[11]As such, the
plaintiff is requested to provide a copy of the written employment
agreement.
[16]
The first defendant complains that he should have been supplied with
particulars of his employment in writing as required
in terms of the
provisions of section 29 of the Basic Conditions of Employment
Act.
[11]
As such, the
plaintiff is requested to provide a copy of the written employment
agreement.
# [17] As already set
out above the cause of action is based on a termination agreement. To
the extent that the plaintiff pleads
the conclusion of the oral
employment agreement with the first defendant, and which terms are
set out in paragraph 10, I am of
the view that this is unnecessary
history, which need not have been pleaded at all.
[17] As already set
out above the cause of action is based on a termination agreement. To
the extent that the plaintiff pleads
the conclusion of the oral
employment agreement with the first defendant, and which terms are
set out in paragraph 10, I am of
the view that this is unnecessary
history, which need not have been pleaded at all.
# [18] Accordingly,
the employment contract not only does not exist but is not relevant
to the cause of action which seeks to
terminate the first defendant’s
membership of the second defendant.
[18] Accordingly,
the employment contract not only does not exist but is not relevant
to the cause of action which seeks to
terminate the first defendant’s
membership of the second defendant.
# [19] There is no
suggestion that the provisions of Rule 18(6) of the High Court Rules
have not been complied with as there
is no contention that the cause
of action stems from the employment agreement or that the contract is
written. Only in the
face of a written contract which underlies
the cause of action is a true copy thereof to be annexed to the
pleading. There is no
merit to this complaint.
[19] There is no
suggestion that the provisions of Rule 18(6) of the High Court Rules
have not been complied with as there
is no contention that the cause
of action stems from the employment agreement or that the contract is
written. Only in the
face of a written contract which underlies
the cause of action is a true copy thereof to be annexed to the
pleading. There is no
merit to this complaint.
# [20] The second
exception is directed at paragraph 10.4.1 of the particulars of
claim. This relates to the remuneration
which the first
defendant would receive by virtue of his employment as a sales
representative. The first defendant complains that
he cannot glean
from the particulars of claim what contributions were made by him to
obtain his 10 % member’s interest.
[20] The second
exception is directed at paragraph 10.4.1 of the particulars of
claim. This relates to the remuneration
which the first
defendant would receive by virtue of his employment as a sales
representative. The first defendant complains that
he cannot glean
from the particulars of claim what contributions were made by him to
obtain his 10 % member’s interest.
# [21] According
to the termination agreement, the member’s interest held
by the first defendant would be
transferred to the plaintiff at no
value.
[21] According
to the termination agreement, the member’s interest held
by the first defendant would be
transferred to the plaintiff at no
value.
# [22] In this
regard, the plaintiff pleads:
[22] In this
regard, the plaintiff pleads:
“
10.4
The defendant would be entitled to receive 10% of the members’
interest in the corporation:
10.4.1 By virtue
of an initial contribution by the defendant of 10% of the total value
of the contribution by the plaintiff
in respect of the members’
interest of the corporation as reflected in the founding statement as
at date of incorporation
thereof;
10.4.2 In lieu
of the further contribution to be made by the defendant to the
corporation in the form of the services which
the defendant was to
render to the corporation in terms of the employment agreement,
subject thereto that:
10.4.2.1
the defendant would forfeit any entitlement to receiving a basic
salary commensurate with such services;
alternatively
10.4.2.2
the defendant would be paid a basic salary of less than what would be
commensurate with the services to be rendered
by him in terms of the
employment contract.
As provided in Rule
18(4) of the High Court Rules every pleading shall contain a clear
and concise statement of the material facts
upon which the pleader
relies for his claim, defence or answer to any pleading, as the case
may be, with sufficient particularity
to enable the opposite party to
reply thereto.”
# [23] It is apparent
that the complaint could have been raised under Rule 30 if the
employment contract was the primary cause
of action, which it is not.
That in and of itself renders the complaint impermissible.
[23] It is apparent
that the complaint could have been raised under Rule 30 if the
employment contract was the primary cause
of action, which it is not.
That in and of itself renders the complaint impermissible.
# [24] In addition,
Rule 18(4) does not apply as this information is historical and
irrelevant to the cause of action underpinning
the plaintiff’s
claim. There is no merit to this complaint.
[24] In addition,
Rule 18(4) does not apply as this information is historical and
irrelevant to the cause of action underpinning
the plaintiff’s
claim. There is no merit to this complaint.
# [25] The third
exception is directed at paragraph 10.4.2.2 of the particulars of
claim. The complaint is that
the allegations are vague
and embarrassing in that the plaintiff fails to reference what is
meant by a “further contribution”and which of the
options mentioned therein i.e. receiving no salary or a
discounted salary during his employment were actioned.
I
disagree. Although the option to be exercised is not pleaded
this information is also historical and not relevant
to the cause of
action. There is no merit to this complaint.
[25] The third
exception is directed at paragraph 10.4.2.2 of the particulars of
claim. The complaint is that
the allegations are vague
and embarrassing in that the plaintiff fails to reference what is
meant by a “
further contribution”
and which of the
options mentioned therein i.e. receiving no salary or a
discounted salary during his employment were actioned.
I
disagree. Although the option to be exercised is not pleaded
this information is also historical and not relevant
to the cause of
action. There is no merit to this complaint.
# [26]
The fourth exception is directed at paragraph 12 of the particulars
of claim. This paragraph commences under the
heading “The
Termination Agreement”,
and sets out the plaintiff’s cause of action and the
material facts in support thereof in the paragraphs that
follow. The
plaintiff avers that the first defendant did acquire an interest in
the second defendant, pursuant to his employment
agreement, and the
founding statement was amended to record his 10% interest which
was registered by the Registrar of Companies
on 15 June 2001[12].
It is this interest which the plaintiff seeks be returned to
him.
[26]
The fourth exception is directed at paragraph 12 of the particulars
of claim. This paragraph commences under the
heading “
The
Termination Agreement”
,
and sets out the plaintiff’s cause of action and the
material facts in support thereof in the paragraphs that
follow. The
plaintiff avers that the first defendant did acquire an interest in
the second defendant, pursuant to his employment
agreement, and the
founding statement was amended to record his 10% interest which
was registered by the Registrar of Companies
on 15 June 2001
[12]
.
It is this interest which the plaintiff seeks be returned to
him.
# [27] In this
regard, the first defendant complains that because there is no
particularity about the extent and nature of his
non-compliance/
breach of his duties as a sales representative, which resulted in the
breakdown of the employment relationship
and the conclusion of the
August 2001 termination agreement, the pleading is vague and
embarrassing. I am of the view that
the averments in this
paragraph do not fall within the framework of the provisions of Rule
18(4) in the sense that these are not
material facts underpinning the
termination agreement. These facts predated the termination
agreement and explain how the
termination agreement came about.
This is evidence which will no doubt be given in the trial. There is
no merit to this complaint.
[27] In this
regard, the first defendant complains that because there is no
particularity about the extent and nature of his
non-compliance/
breach of his duties as a sales representative, which resulted in the
breakdown of the employment relationship
and the conclusion of the
August 2001 termination agreement, the pleading is vague and
embarrassing. I am of the view that
the averments in this
paragraph do not fall within the framework of the provisions of Rule
18(4) in the sense that these are not
material facts underpinning the
termination agreement. These facts predated the termination
agreement and explain how the
termination agreement came about.
This is evidence which will no doubt be given in the trial. There is
no merit to this complaint.
# [28] The fifth
and sixth exceptions are directed at paragraphs 15.2.1 and 15.2.2 of
the particulars of claim. This paragraph
sets out the terms of the
termination agreement for which the plaintiff contends. In this
regard the plaintiff contends for
the term at paragraph 15.2. that:
[28] The fifth
and sixth exceptions are directed at paragraphs 15.2.1 and 15.2.2 of
the particulars of claim. This paragraph
sets out the terms of the
termination agreement for which the plaintiff contends. In this
regard the plaintiff contends for
the term at paragraph 15.2. that:
“
15.2
Neither the corporation nor the plaintiff would have any claim
against the defendant:
15.2.1 in
respect of any losses or expenses incurred by the corporation in
consequence of the failure by the defendant to
carry out his duties
arising from the employment agreement in a satisfactory manner;
and/or
15.2.2 for the
recovery of any compensation paid to the defendant by the corporation
in terms of the employment agreement.”
# [29] The contention
is that this term is vague and embarrassing because there is no
detail as to the losses or expenses that
may have allegedly been
incurred and/or the compensation paid to the second defendant in
terms of the employment agreement. Again,
I am not of the view that
this constitutes a material fact upon which the plaintiff
relies for his claim. Paragraph 15.2
sets out an express term that
neither the second defendant or plaintiff would have any further
claims against each other
arising out of the defendant’s
employment. Accordingly, the first defendant is well able to either
admit or deny this term.
The complaints have no merit.
[29] The contention
is that this term is vague and embarrassing because there is no
detail as to the losses or expenses that
may have allegedly been
incurred and/or the compensation paid to the second defendant in
terms of the employment agreement. Again,
I am not of the view that
this constitutes a material fact upon which the plaintiff
relies for his claim. Paragraph 15.2
sets out an express term that
neither the second defendant or plaintiff would have any further
claims against each other
arising out of the defendant’s
employment. Accordingly, the first defendant is well able to either
admit or deny this term.
The complaints have no merit.
# [30] The seventh
exception is to paragraph 16 of the particulars of claim in which it
is contended that on conclusion of the
termination agreement the
plaintiff gave the first defendant an amended founding statement to
enable him to append his signature
thereto in confirmation of his
resignation as a member of the corporation, a term of the agreement.
The first defendant complains
that the plaintiff’s failure to
aver the date and place where the amended founding statement was
handed to him for his signature
is vague and embarrassing.
[30] The seventh
exception is to paragraph 16 of the particulars of claim in which it
is contended that on conclusion of the
termination agreement the
plaintiff gave the first defendant an amended founding statement to
enable him to append his signature
thereto in confirmation of his
resignation as a member of the corporation, a term of the agreement.
The first defendant complains
that the plaintiff’s failure to
aver the date and place where the amended founding statement was
handed to him for his signature
is vague and embarrassing.
# [31] I disagree.
This information constitutes secondary evidence. The first
defendant, depending on whether he indeed
received the founding
statement from the plaintiff, can admit or deny the allegation.
In due course he can request this particularity
with a Rule 21
request for further particulars. There is sufficient particularity
for the first defendant to plead.
[31] I disagree.
This information constitutes secondary evidence. The first
defendant, depending on whether he indeed
received the founding
statement from the plaintiff, can admit or deny the allegation.
In due course he can request this particularity
with a Rule 21
request for further particulars. There is sufficient particularity
for the first defendant to plead.
# [32]
The eighth exception is directed at paragraphs 17 and 18 of the
particulars of claim. The plaintiff contends
for an
express term that “The
defendant would co-operate with the plaintiff and/or the corporation
to give effect to his resignation as a member of the corporation
in
the terms of the termination agreement”.[13]The plaintiff pleads that in breach of the termination
agreement, and demand, the first defendant has failed to sign and/or
deliver a copy of the amended founding statement to him. The first
defendant , nevertheless, contends that the plaintiff
has failed to
provide particularity of when, where and how the first defendant
breached the termination agreement. To my
mind the further
particularity sought can be obtaining using Rule 21 or is a matter
for evidence. There is sufficient particularity
to enable the first
defendant to plead. There is no merit to this complaint.
[32]
The eighth exception is directed at paragraphs 17 and 18 of the
particulars of claim. The plaintiff contends
for an
express term that “
The
defendant would co-operate with the plaintiff and/or the corporation
to give effect to his resignation as a member of the corporation
in
the terms of the termination agreement”
.
[13]
The plaintiff pleads that in breach of the termination
agreement, and demand, the first defendant has failed to sign and/or
deliver a copy of the amended founding statement to him. The first
defendant , nevertheless, contends that the plaintiff
has failed to
provide particularity of when, where and how the first defendant
breached the termination agreement. To my
mind the further
particularity sought can be obtaining using Rule 21 or is a matter
for evidence. There is sufficient particularity
to enable the first
defendant to plead. There is no merit to this complaint.
# [33]
The ninth exception is directed at paragraph 26.2 of the particulars
of claim; an alternative cause of action premised
on the provisions
of section 36(1)(a), (b) and (c) of the Close Corporations Act.[14]Section 36 provides as follows:
[33]
The ninth exception is directed at paragraph 26.2 of the particulars
of claim; an alternative cause of action premised
on the provisions
of section 36(1)(a), (b) and (c) of the Close Corporations Act.
[14]
Section 36 provides as follows:
“
36.
Cessation of membership by order of Court
(1) On
application by any member of a corporation a Court may on any of the
following grounds order that any member shall
cease to be a member of
the corporation:
(a)
Subject to the provisions of the association agreement (if any), that
the member is permanently incapable, because of unsound
mind or any
other reason, of performing his or her part in the carrying on of the
business of the corporation;
(b)
that the member has been guilty of such conduct as taking into
account the nature of the corporation's business, is likely to
have a
prejudicial effect on the carrying on of the business;
(c)
that the member so conducts himself or herself in matters
relating to the corporation's business that it is not reasonably
practicable for the other member or members to carry on the business
of the corporation with him or her; or
(d)
that circumstances have arisen which render it just and
equitable that such member should cease to be a member of the
corporation: Provided that such application to a Court on any
ground mentioned in paragraph (a) or (d) may also be made by
a member
in respect of whom the order shall apply.
(2)
A Court granting an order in terms of subsection (1) may make such
further orders as it deems fit in regard to:
(a) the
acquisition of the member's interest concerned by the corporation or
by members other than the member concerned; or
(b) the amounts (if
any) to be paid in respect of the member's interest concerned or the
claims against the corporation of that
member, the manner and times
of such payments and the persons to whom they shall be made; or
(c) any other matter
regarding the cessation of membership which the Court deems fit.”
# [34] It is
contended by the first defendant that he is unable to plead to the
conclusions in paragraph 26.2 that he is guilty
of conduct that has
had a prejudicial effect on the carrying on of the second defendant’s
business, alternatively that his
conduct is likely to have a
prejudicial effect on the business of the corporation. It is
apparent that these are legal conclusions
that stem from the
provisions of section 36(1)(b) of the Act.
[34] It is
contended by the first defendant that he is unable to plead to the
conclusions in paragraph 26.2 that he is guilty
of conduct that has
had a prejudicial effect on the carrying on of the second defendant’s
business, alternatively that his
conduct is likely to have a
prejudicial effect on the business of the corporation. It is
apparent that these are legal conclusions
that stem from the
provisions of section 36(1)(b) of the Act.
# [35]
The preceding paragraphs 23, 24 and 25 of the particulars of
claim[15]set out the factual
basis for the conclusions made in paragraph 26 including those in
paragraph 26.2. It is apparent therefrom
that the plaintiff contends
that the defendantquamember
over of a period of twenty-one years had little to no dealings with
the close corporation and that it has been solely managed
by the
plaintiff. Accordingly, the first defendant has sufficient
particularity of the material facts underlying the legal conclusion
under the Act and can plead thereto. This complaint has no merit.
[35]
The preceding paragraphs 23, 24 and 25 of the particulars of
claim
[15]
set out the factual
basis for the conclusions made in paragraph 26 including those in
paragraph 26.2. It is apparent therefrom
that the plaintiff contends
that the defendant
qua
member
over of a period of twenty-one years had little to no dealings with
the close corporation and that it has been solely managed
by the
plaintiff. Accordingly, the first defendant has sufficient
particularity of the material facts underlying the legal conclusion
under the Act and can plead thereto. This complaint has no merit.
# [36]
The tenth exception is directed at paragraph 26.3. As already
stated in relation to paragraph 26.2, a legal conclusion
has been
pleaded and the factual basis for that conclusion is set out in
paragraphs 23, 24 and 25 of the particulars of claim.[16]It too has no merit.
[36]
The tenth exception is directed at paragraph 26.3. As already
stated in relation to paragraph 26.2, a legal conclusion
has been
pleaded and the factual basis for that conclusion is set out in
paragraphs 23, 24 and 25 of the particulars of claim.
[16]
It too has no merit.
# [37] The
particulars of claim may not have been drawn with the greatest
finesse but it is not, to my mind, wanting in clarity
which renders
it excipiable, difficult for the first defendant to plead or
results in serious prejudice.
[37] The
particulars of claim may not have been drawn with the greatest
finesse but it is not, to my mind, wanting in clarity
which renders
it excipiable, difficult for the first defendant to plead or
results in serious prejudice.
# [38] At the outset,
I put it to the excipient’s counsel that the complaints raised
appeared to be taken out of context
and amounted to an attempt to
obtain further particularity rather than attack the cause of action.
[38] At the outset,
I put it to the excipient’s counsel that the complaints raised
appeared to be taken out of context
and amounted to an attempt to
obtain further particularity rather than attack the cause of action.
# [39]
It is inappropriate to set aside or strike out a particulars of claim
where the exception does not go to the root of
the cause of action in
the sense that the particulars of claim must be pleadedde
novo.
It is clear, that the first defendant has impermissibly
proceeded with an exception in circumstances where the first
defendant knows what case he has to meet. The first four complaints,
as submitted to me by the first defendant’s counsel,
seek
unnecessary detail to paragraphs which provide a historical
introduction[17]to the
parties relationship. The six remaining complaints relate to
facts which are not material to the cause of action and,
can be
obtained by a Rule 21 request for further particulars or constitute
evidence.
[39]
It is inappropriate to set aside or strike out a particulars of claim
where the exception does not go to the root of
the cause of action in
the sense that the particulars of claim must be pleaded
de
novo
.
It is clear, that the first defendant has impermissibly
proceeded with an exception in circumstances where the first
defendant knows what case he has to meet. The first four complaints,
as submitted to me by the first defendant’s counsel,
seek
unnecessary detail to paragraphs which provide a historical
introduction
[17]
to the
parties relationship. The six remaining complaints relate to
facts which are not material to the cause of action and,
can be
obtained by a Rule 21 request for further particulars or constitute
evidence.
# [40]
The excipient’s counsel submitted, in reply, that the Court can
also have regard to Rule 30 under the formulation
of “further
and alternative”relief.
In this regard the Court affirmed inChao
v Gomes[18]the principle that where grounds are made out for the relief
albeit not expressly requested, the Court can make an order
setting
out the accessory relief. I am not of the view that even Rule 30
would have assisted the excipient. All of the complaints
are ill –
founded. As such it is unnecessary for me to extend the relief and
stray from the express relief sought.
[40]
The excipient’s counsel submitted, in reply, that the Court can
also have regard to Rule 30 under the formulation
of “
further
and alternative
”
relief.
In this regard the Court affirmed in
Chao
v Gomes
[18]
the principle that where grounds are made out for the relief
albeit not expressly requested, the Court can make an order
setting
out the accessory relief. I am not of the view that even Rule 30
would have assisted the excipient. All of the complaints
are ill –
founded. As such it is unnecessary for me to extend the relief and
stray from the express relief sought.
# [41] As the first
defendant has been unsuccessful in his exception, the costs
must follow the result.
[41] As the first
defendant has been unsuccessful in his exception, the costs
must follow the result.
# [42] Accordingly, I
grant an order in the following terms:
[42] Accordingly, I
grant an order in the following terms:
1. The first
defendant’s exception is dismissed;
2. The first defendant is
to pay the plaintiff’s costs.
P V TERNENT
Acting Judge of the
High Court of South Africa
Gauteng Division,
Johannesburg
Delivered:
This judgment was prepared and authored by the Judge whose name is
reflected and is handed down electronically
by circulation to
the Parties/their legal representatives by email and by uploading it
to the electronic file of this matter on
CaseLines. The date for
hand-down is deemed to be on 26 September 2023.
HEARD ON:
23 May 2023
DATE OF JUDGMENT:
26 September 2023
FOR PLAINTIFFS:
Advocate E Venter
E-mail:
venter@rivoniaadvocates.co.za
Cell: 083 227
4603
INSTRUCTED BY:
JHS Attorneys
E-mail:
jonathan@jhslaw.co.za
Tel: (011) 326-1066
/1829
FOR
DEFENDANT/EXCIPIENT:
Advocate K Howard
E-mail:
kerryhoward1023@gmail.com
Cell: 072 706
8329
INSTRUCTED BY:
Reg Joubert Attorneys
E-mail:
reg@regjoubert.co.za
Tel: (011) 454-1919
##
[1]
Telematrix
(Pty) Ltd v Advertising Standards Authority SA
2006
(1) SA 461
(SCA), para [3] at pages 465-466
[2]
Pete’s
Warehousing and Sales CC v Bowsink Investments CC
2000
(3) SA 833
(E) at 839G-H
[3]
2013 (2) SA 368
(GSJ) at paragraph [15]
[4]
CaseLines, 01-11 to 01-13
[5]
Act 69 of 1984 (as amended)
[6]
Aartappel
Koöperasie Bpk v PriceWaterhouseCoopers Ing en Andrere
2001
(2) SA 790
(T) at 798 A – E and 798F-799J
[7]
Erasmus, Superior Court Practice D1-232
[8]
Jowell
v Bramwell - Jones and Others
1998(1)
SA 836 (W) at 902 E-G
[9]
[1993] ZASCA 54
;
1993 (3) SA 264
(A) at 267-268
[10]
at 273
[11]
Act 57 of 1997
[12]
CaseLines,
01-10, paragraphs 11.2 to 11.3
[13]
CaseLines
01-13, paragraph 15.4
[15]
CaseLines, 01-15 to 01-16
[16]
CaseLines, 01-15 to 01-16
[17]
Ahlers
NO v Snoek
1946
TPD 590
at 594
[18]
2012
JDR 0841 GSJ
sino noindex
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