Case Law[2023] ZAGPJHC 1113South Africa
DB Fine Chemicals (Pty) Ltd and Another v Sparta Pharmaceuticals CC (2022/26447) [2023] ZAGPJHC 1113 (5 October 2023)
Headnotes
judgment against the defendant, Sparta Pharmaceuticals CC, together with an opposed interlocutory application to compel the defendant's heads of argument in relation to the application for summary judgment. In this
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## DB Fine Chemicals (Pty) Ltd and Another v Sparta Pharmaceuticals CC (2022/26447) [2023] ZAGPJHC 1113 (5 October 2023)
DB Fine Chemicals (Pty) Ltd and Another v Sparta Pharmaceuticals CC (2022/26447) [2023] ZAGPJHC 1113 (5 October 2023)
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sino date 5 October 2023
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
Case Number:
2022/26447
NOT REPORTABLE
NOT OF INTEREST TO OTHER
JUDGES
05/10/23
In
the matter between:
DB
FINE CHEMICALS (PTY) LTD
(1995/004258/07)
FIRST
PLAINTIFF/APPLICANT
DB
FINE SPECIALITIES (PTY) LTD
(2010/013299/07)
SECOND
PLAINTIFF/APPLICANT
And
SPARTA
PHARMACEUTICALS CC
DEFENDANT/RESPONDENT
JUDGMENT
SCHOLTZ, AJ:
[1]
This
is an opposed application by the plaintiffs DB Fine Chemicals (Pty)
Ltd and DB Fine Specialities (Pty) Ltd for summary judgment
against
the defendant, Sparta Pharmaceuticals CC, together with an opposed
interlocutory application to compel the defendant's
heads of argument
in relation to the application for summary judgment. In this
judgment, I shall refer to the parties as
the plaintiffs and the
defendant, rather than the applicants and the respondent, unless the
context requires otherwise
.
[2]
It
is common cause that the defendant's heads of argument in the summary
judgment application were eventually filed on 14 April 2023.
The only issue to be determined in respect of the interlocutory
application is therefore that of costs. I shall deal with
this
aspect first
.
The Application to
Compel
[3]
The relevant timeline regarding the
application to compel is as follows:
a.
After
all pleadings in the application for summary judgment had been filed,
the following steps were taken:
i.
On
23 January 2023 the plaintiffs delivered their heads of
argument.
ii.
On
3 February 2023 the plaintiffs uploaded a practice note on
CaseLines.
iii.
On
the same date (i.e. 3 February 2023), the plaintiffs'
attorneys wrote to the defendant's attorneys reminding them that
their client's heads of argument were due by 6 February 2023,
and that failure to deliver them timeously would result
in an
application to compel.
iv.
On
the same day, 3 February 2023, the defendant's attorneys
replied stating that:
“
[
Y]our
request for our client's Heads is premature in that you have not yet
served on us the index, or your client's Practice Note.
”
v.
Replying
on the same date, the plaintiffs’ attorneys wrote to the
defendant's attorneys advising them that:
“
The
practice note has just been uploaded onto the CaseLines court file,
and you are free to access same.
The
erstwhile requirement of serving the consolidated index has fallen
into disuse upon the event of the CaseLines electronic platform,
which electronic platform automatically generates an index upon
anyone's request. Should you require such index to be produced,
it can be done on the CaseLines platform. … We therefore await
your client's heads of argument on the 6
th
of
February 2023, failing which, the application to compel will be
initiated.”
vi.
Still
on the same date, the defendant's attorneys replied stating:
“
The
uploading of documentation to CL [CaseLines] does not constitute
service, and similarly it is not incumbent upon us to download
an
index. When we receive the required documentation, we will file our
Heads.”
vii.
On
8 February 2023, the plaintiffs served a practice note and
a consolidated index on the defendant. It is stated
in the
plaintiffs' replying affidavit in the interlocutory application that
such service took place
ex
abundanti cautela
.
On the same day, the plaintiffs launched the application to compel
delivery of the defendant's heads of argument.
viii.
Also
on 8 February 2023, the defendant's attorneys wrote to the
plaintiffs' attorneys in the following terms:
“
Since
you have now complied with your obligations and furnished us with an
index and your PN [practice note], we will now commence
the
preparation of our client's Heads.
Regarding
your interlocutory application, same is defective and does not afford
us an opportunity to file a notice to oppose or
to file an answer.
In the circumstances we are affording you an opportunity to withdraw
same, failing which it will be opposed
and a punitive cost order will
be sought. Should same not be withdrawn by close of business on
Monday, the 13
th
, our notice to oppose will follow.”
ix.
On
18 February 2023, the defendant's attorney wrote to the
plaintiffs' attorney stating that:
“
On
our calculation and bearing in mind the delayed index and PN, the
time for us to file our client's heads would be Thursday of
this
week. [23 February 2023]
On
the basis that your application is withdrawn, we will file our heads
by close of business on Thursday, which would dispose of
the
necessity of an opposed interlocutory application. Should you decline
this invitation, opposing papers will be filed and this
aspect can be
debated in due course.
We
look forward to hearing from you by no later than close of business
on Monday, as to what your client proposes doing and absent
a
response, we will assume that we are to file our answer.”
x.
On
23 February 2023, the defendant delivered an answering
affidavit to the application to compel.
xi.
On
9 March 2023, the plaintiffs filed their replying
affidavit.
xii.
On
14 April 2023, the defendant filed its heads of argument in
the summary judgment application. In paragraph 32
of those
heads, it is stated that:
“
In
as much as Applicants' demand for Respondent's Heads was premature
and Applicant launched an application to compel same, same
was
opposed. Without conceding the application, these Heads are now filed
to further the progression of the matter, and the aspect
of costs
will be argued relative to such ill-conceived application.”
[4]
The
enrolment of summary judgment applications as opposed motions in this
Division is currently governed by the Judge President's
Practice
Directive 2 of 2020 (the “Practice Directive”). The
relevant provisions thereof for purposes of this
matter are
paragraphs 2.2 to 2.12, which read as follows:
“
2.2
The procedure to enrol an opposed application commences when a
consolidated index is delivered and/or uploaded on the
CaseLines
Digital Litigation Platform.
2.3
The applicant shall deliver a consolidated index within five (5)
days from the date of service of the applicant's replying
affidavit
or last affidavit that can permissibly be filed and/or uploaded on
the CaseLines Digital Litigation Platform.
2.4
Should the applicant not timeously deliver and/or upload the
consolidated index, the respondent may do so.
2.5
The consolidated index must prominently indicate on the front page
the date when and in what manner it was served on the opposing
party.
2.6
The applicant shall deliver and/or upload heads of argument and a
practice note within then (10) days from the date of
service
and/or upload of the consolidated index.
2.7
The respondent shall deliver and/or upload heads of argument and a
practice note within 10 days from the date of receipt of
the
applicant's heads of argument.
2.8
If the applicant fails to deliver and/or upload heads of argument and
a practice note within the prescribed period, the respondent
shall
deliver and/or upload its heads of argument and practice note, within
10 days of the expiration of the period referred to
in paragraph 6
above.
2.9
When a party fails to deliver and/or upload heads of argument on the
prescribed date, the complying party may apply to the registrar
for a
provisional enrolment date and simultaneously such party shall
initiate the application referred to in paragraph 4.1.12 below.
2.10
The heads of argument and practice notes may be served in accordance
with Rule 4A of the Uniform Rules but uploading on the
CaseLines
system shall be regarded as compliance with the Rule. This directive
applies to the service and filing of any pleading
and/or notice
contemplated in this directive.
2.11
Where a party fails to deliver and/or upload heads of argument and/or
a practice note within the stipulated period the complying
party may
provisionally enrol the application for hearing. Such party
shall, upon provisional enrolment, simultaneously initiate
and/or
upload an interlocutory application on notice to the defaulting party
that on the date set out therein, (which shall be
at least 5 days
from such notice), he or she will apply for an order that the
defaulting party delivers and/or uploads his or her
heads of argument
and practice notice within 3 days of such order, failing which the
defaulting party's claim or defence will be
struck out. Such
application shall be enrolled in line with the provisions set out in
Practice Directive 2 of 2019 dealing
with interlocutory applications.
2.12
No opposed motion will be enrolled on the final roll without the
requisite heads of argument being filed and/or uploaded.”
[5]
It was argued on behalf of the plaintiffs
that they had complied with the terms of the Practice Directive, save
for not having delivered
their practice note and index simultaneously
with the heads of argument, although they were delivered later.
[6]
The plaintiffs argued, with reference to
paragraph 2.7 of the Practice Directive, that the defendant's
obligation to file its heads
of argument commenced on the date of
receipt of the plaintiffs' heads of argument and that such heads had
to be delivered and/or
uploaded within 10 days from the date of
receipt of the plaintiffs' heads, and not after having received the
plaintiffs' heads
of argument, practice note and index.
[7]
It is also pointed out in the plaintiffs'
replying affidavit to the interlocutory application to compel, that
paragraph 2.8 of the
Practice Directive provides that if the
applicant fails to deliver and/or upload its heads of argument and
practice note, the respondent
shall deliver and/or upload its heads
of argument and practice note within 10 days of the period referred
to in paragraph 2.6 of
the Practice Directive (i.e. the date upon
which the applicant should have delivered or uploaded its heads of
argument and practice
note).
[8]
It was argued on behalf of the plaintiffs
that the defendant's obligation to deliver its heads of argument was
not, based upon the
clear wording of the Practice Directive,
dependent upon the defendant having received a practice note and
index from the plaintiffs.
I agree with these arguments
.
[9]
If regard is had to paragraph 2.11 of the
Practice Directive, it is also apparent that a defaulting party may
be compelled by a
complying party to deliver its heads of argument
and/or practice note by way of an interlocutory application initiated
simultaneously
with the application for summary judgment (as in this
case)
.
[10]
Paragraph 2.12 of the Practice Directive
provides that no opposed motion will be enrolled on the final roll
without the requisite
heads of argument being filed and/or uploaded.
[11]
A final provision which is of relevance in
the present case is paragraph 2.10 of the Practice Directive, which
provides that heads
of argument and practice notes may be served in
accordance with Rule 4A of the Uniform Rules of Court, but that
uploading on the
CaseLines system shall be regarded as compliance
with the rules.
[12]
From the above, it follows that there is no
merit in the defendant's contention that it only became obliged to
file its heads of
argument once a practice note and index had been
served on it by the plaintiffs. Furthermore, the defendant's
contention
that the uploading of a practice note on CaseLines does
not constitute service, is also incorrect having regard to the
provisions
of paragraph 2.10 of the Practice Directive
.
[13]
In the circumstances, the defendant's
adopted stance is misguided and unjustified.
[14]
In paragraph 10 of its replying affidavit
in the interlocutory application, it is pointed out on behalf of the
plaintiffs that it
is a nonsensical proposition to suggest that heads
of argument, which are due, and which are ready for delivery, would
be held
back and only be delivered on condition that the application
to compel be withdrawn. As is stated by the deponent to the
replying affidavit:
“
No
conscientious litigant would consent to withdrawing an application to
which it is entitled prior to receiving that which it is
entitled
to.”
[15]
It is clear from paragraph 2.12 of the
Practice Directive that the filing of both parties' heads of argument
is a prerequisite for
the enrolment of an opposed application.
By unjustifiably and unnecessarily withholding its heads of argument,
the defendant
frustrated the enrolment and hence the progress of this
matter. The defendant was forewarned in correspondence and in
the
replying affidavit in the interlocutory application that a
punitive costs order would be sought against it, in the light of its
conduct and attitude.
[16]
Having regard to all the facts and
circumstances, I can find no justification for the dilatory,
uncooperative, and obstructive attitude
of the defendant regarding
the filing of its heads of argument.
[17]
They were only filed on 14 April 2023 when
it is apparent from the papers that the defendant was in a position
to file them on 23
February 2023.
[18]
In the circumstances, I am of the view that
the defendant should pay the costs of the application to compel
delivery of its heads
of argument and that costs on a scale as
between attorney and client are warranted.
The Application for
Summary Judgment
[19]
The plaintiffs' claims as set out in the
amended particulars of claim are for amounts of R 991 300.00 and
R 250 843.75
respectively, together with
mora
interest, in respect of goods sold and delivered at the behest and
specific request of the defendant. In respect of both
claims,
it is alleged that they arose out of verbal agreements for the sale
and delivery of certain pharmaceutical goods entered
into between the
first and second plaintiffs, in both cases represented by Mr Dion
Baumann and the defendant, represented by Mr
Chris McWilliams
.
[20]
It is pleaded that the relevant express,
alternatively tacit, alternatively implied terms of both agreements
were as follows:
a.
The plaintiffs were the sellers and the
defendant was the purchaser of certain specified pharmaceutical
goods.
b.
The plaintiffs would deliver such
pharmaceutical goods to the defendant at its behest and specific
request.
c.
Upon such delivery of goods by the
plaintiffs, they would render corresponding invoices which reflect
the goods delivered and the
amount owing by the defendant.
d.
The defendant would settle its account with
the plaintiffs within 45 days of date of delivery of such invoice.
[21]
It is further alleged that the plaintiffs
duly performed in terms of the above agreements by delivering the
pharmaceutical goods
to the defendant at its behest and specific
request and invoicing the defendant therefor on multiple occasions as
reflected in
various invoices annexed to the particulars of claim
.
[22]
In its plea, the defendant denies that
there is an entity styled Sparta Pharmaceuticals (Pty) Ltd and it is
pleaded that notice
to defend and a plea were filed only to ensure
that no default judgment was obtained against an entity “
which
ought to have been cited as Sparta Pharmaceuticals CC”
.
[23]
Regarding both claims, it is admitted in
the plea (at paragraphs 5.3, 6, 7, 12.3 and 13.2) that verbal
agreements were concluded
“
on
terms similar to that pleaded”
and
which also included a term that “
after
such order had been placed and the CC was notified that such goods
had been received, they would be obliged to advise Plaintiff
as to
what quantities were received and such quantity of goods was to be
delivered to the CC, whereafter an invoice was to accompany
such
goods with payment to follow within 45 days thereof”
.
[24]
Accordingly, the defendant denies that the
agreements had been breached as contended or at all, or that the
monies claimed are due,
owing and payable and avers that “
such
amounts as claimed are premature in that plaintiff unilaterally
delivered the entire consignment without waiting for specific
instructions relative thereto”
.
[25]
However, the defendant goes on to plead in
paragraphs 8.2 and 14.1 of the plea that “
despite
the premature delivery of the goods and premature claim for payment,
the CC has made payment to such plaintiff in reduction
of the amounts
claimed …”.
Certain
payments in reduction of the amounts claimed are then set out
.
[26]
In respect of both the first and second
claims, the plea then continues at paragraphs 8.3 and 14.2 thereof,
that “
further payment of not less
than R 120 000 per month will follow thereafter monthly
until such time as the balance allegedly
owed in terms of both claims
is settled”
.
[27]
In his affidavit in support of plaintiffs'
application for summary judgment delivered on 11 November 2022,
Mr Baumann,
on behalf of the first and second plaintiffs, verifies
that the defendant is indebted to the first and second plaintiffs in
terms
of the verbal agreements as pleaded in the particulars of claim
and that the plaintiffs are entitled to claim the relief as stated
in
the combined summons and particulars of claim. Mr Baumann
does not engage with the defences raised in the plea and
merely
states that:
“
In
my opinion I believe that the Defendant/Respondent has no bona fide
defence to the claims as set out in the combined summons
and
particulars of claim and I humbly opine that the notice of intention
to defend and plea have been delivered by the defendant/respondent
solely for the purpose of delay”.
[28]
In his affidavit opposing summary judgment,
Mr McWilliams, on behalf of the defendant, once again points out that
there is no entity
styled Sparta Pharmaceuticals (Pty) Ltd and if
there is such entity, it is not associated with the close
corporation. Furthermore,
Mr McWilliams denies that the CC
has given notice to defend for purposes of delaying the matter as
contended or at all and
reiterates the CC's defence as contained in
the plea. He also states that:
“
At
the outset it will be argued that the affidavit of Baumann does not
comply with the provisions of the amended rules pertaining
to summary
judgment type applications and as such this application ought not to
have been launched”.
[29]
Mr Baumann then continued to expand on the
defence set out in the plea as follows:
“
9.
In the Plea payment of the Applicant's claim was denied in that the
incorrect entity was cited as Defendant, and as being
premature on
the basis that the goods in question were to be drawn down and paid
for as and when required, after receipt of an
invoice. (vide
paragraphs 5.3, 6.2, 6.3, 7.2, 8.2, 9.3, 10.3, 11.3, 12, 13, 14.1 of
plea).
10. The Applicants
acquired the goods in quantities far more than that required by the
CC and were to hold same so that same was
available as and when
required by the CC who could draw down on same when the occasion
arose, and stock was requested by their
customers.
11. The CC did not
require the entire consignment of the goods in question and did not
contract to acquire the entire consignment
up front but only a
partial delivery as and when required. When the entire consignment
was delivered, I remonstrated with Baumann
and advised that the
entire consignment as delivered was not required and premature and
indicated same was to be returned. Baumann
indicated that delivery
had taken place and he would not accept any returns, and that payment
in full was required – this
despite our agreement, which he
reneged upon.
12. The CC has
customers who required such goods in moderation and for the CC to
have purchased the entire stock would have been
both suicidal and
non-sensical, hence the draw down as required by the agreement.
13. Despite the
aforegoing and premature delivery of goods not required by the CC, it
was decided to nevertheless pay for same in
tranches of R30 000
per week, which was conveyed to Baumann, who has accepted payment and
no payment has been returned. In
the circumstances it will be argued
that by acquiescing in such payment, the Applicants have waived their
right to proceed.
14. The CC has paid
for the goods as reflected in the plea in such tranches and despite
payment to the Applicants, no payment amount
has been acknowledged
and no deduction of such payment was given to the CC. I annex hereto
as "CM1" proof of such payments.
The aspect of payment was
dealt with in paragraph 8.2 of the Plea.”
[30]
The affidavit then sets out certain
payments that had been made and in both cases states that the claims
should accordingly reflect
reduced amounts
.
[31]
In a supplementary affidavit dated
15 August 2023, the defendant details further payments made
to the plaintiffs after
filing of its affidavit opposing summary
judgment. The plaintiff did not object to this affidavit. In this
respect, it became common
cause that the amounts in respect of which
summary judgment was claimed were R 278 100.00 and R 159 562.51,
respectively
.
[32]
In paragraph 18 of the affidavit
opposing summary judgment, Mr McWilliams states that
:
a.
it will be contended that the proceedings
were instituted against a non-existing entity;
b.
the application is defective and does not
accord with the amended Rules of Court;
c.
the defendant has set out a triable issue;
d.
the claim is premature; and
e.
the plaintiff has not given credit
pertaining to the amounts paid and acquiesced in such payment.
[33]
Mr McWilliams also stated, in
paragraph 18.7, that
:
“
Mr
Baumann has perjured himself in confirming an erroneous cause of
action against a non-existent entity and an erroneous amount
bearing
in mind such payments that were made prior to the deposing of this
affidavit
”.
[34]
On 6 December 2022, the
plaintiffs filed a notice to amend in terms of Rule 28(1). The
proposed amendment was not
objected to and accordingly the plaintiffs
filed an amended combined summons and particulars of claim on
22 December 2022.
The effect of the amendments was to
delete the letters “(Pty) Ltd” and to replace them with
“CC” in the
summons and the particulars of claim, and by
deleting the words “private company” and inserting the
words "close
corporation" in the combined summons.
Amended paragraph 3 of the particulars of claim read as follows
after the
amendment:
“
The
defendant is Sparta Pharmaceuticals CC, with registration number
99/019374/23, a close corporation with limited liability, duly
registered and incorporated in terms of the company laws of the
Republic of South Africa.”
[35]
The agreed effect of the amendment is dealt
with as follows in the parties' joint practice note:
“
14.
It was initially disputed that there exists an entity under the style
Sparta Pharmaceuticals (Pty) Ltd, however, it is now common
cause
that the Respondent/Defendant is Sparta Pharmaceuticals CC, the
Applicants/Plaintiffs having amended their papers.
15. The
Respondent/Defendant had initially denied the above Honourable
Court's jurisdiction in this matter. This ailment
is also cured
by virtue of the Applicant/Plaintiff's aforesaid amendment and the
fact that the above Honourable Court has jurisdiction
should be
considered common cause.
16. At the time
the application for summary judgment was launched, these issues were
still apparent and the deponent to the
summary judgment application
confirmed the defendant was the Pty Co.
17. Following from the
aforesaid, it bears mentioning that wherever the
Respondent/Defendant's denial of the fact raised by the
Applicants/Plaintiffs is based purely upon the non-existence of an
entity under the name and style of Sparta Pharmaceuticals (Pty)
Ltd,
these facts should, following the Plaintiffs' amendment, be construed
as now being admitted. The Defendant is of the
view that this
does not detract from the fact that the application for summary
judgment was launched against Sparta Pharmaceuticals
(Pty) Ltd
whereafter the name was amended.”
[36]
In argument, Mr Friedland on behalf of the
defendant, attacked the affidavit in support of the application for
summary judgment.
The first objection was that although the
notice of amendment was not objected to, and that it might cure the
defects in the citation
of the defendant going forward, it did not
cure the fact that when the application for summary judgment was
launched, the deponent
to the affidavit in support of the summary
judgment verified the citation of the defendant as cited in the
unamended summons and
particulars of claim, despite the fact that the
defendant had already pointed out in its plea that the defendant was
a close corporation
and not a (Pty) Ltd and that it had accordingly
been incorrectly cited
.
[37]
As the amendment had not yet been effected,
the fact remains, so argues the defendant, that a cause of action
against a non-existent
defendant had been verified, despite the fact
that the error had been pointed out in the plea. It was also
argued, on behalf
of the defendant, that the citation of the
defendant was still incorrect in that it is cited as “
duly
registered and incorporated in terms of the company laws of the
Republic of South Africa”
while
it is not a company but a close corporation
.
[38]
The last submission is highly technical and
has little merit. The term “company laws” in the
citation is obviously
used in the broad sense of “corporate
laws” and there can be little doubt that a close corporation is
a corporation.
It is also significant that the citation does
not refer to the Companies Act, but to company laws in the collective
sense.
What is also significant is that the defendant's correct
registration number as a close corporation has been used
.
[39]
The argument that the wrong party had been
cited, and that the plaintiffs' cause of action against such party
had been verified
in the affidavit supporting summary judgment, which
was filed before the amendment had taken place, and that the
amendment did
not affect the affidavit in support of summary
judgment, has more substance and deserves closer consideration
.
[40]
The
situation is not dissimilar to that which arose in the case of
F1
Steel CC v Tbhokisi Lelsimibi Steel Boxes and Tanks (Pty) Ltd
[1]
.
In this matter the defendant raised a point
in
limine
in a summary judgment application to the effect that the defendant
before court, which was a private company, had been incorrectly
cited
as a close corporation. That compelled the plaintiff to apply
at the commencement of the hearing of the application
for summary
judgment, for leave to amend the summons and the particulars of claim
to correct the citation of the defendant.
In that case, the
defendant before court had been a close corporation before it was
converted to a private company.
[41]
The court, per Adams J, held that it was
clear from the opposing affidavit that the defendant was the entity
cited as per the intended
amendment. The defendant did not
object to the proposed amendment, which was granted at the
commencement of the hearing.
It was argued on behalf of the
plaintiff that the court could treat this as being “
merely
an error or oversight”
and that
the intention was clearly to refer to the defendant, which was the
correct one and the one then before the court, and
to seek judgment
against that entity.
[42]
Adams J held as follows at paragraph [6] of
the judgment:
“
Looking
at all the documents in casu, notably the particulars of plaintiff's
claim and the defendant's affidavit resisting summary
judgment, it is
abundantly clear that the defendant is Tbhokisi Lelsimbi Steel Boxes
and Tanks (Pty) Limited. As I understood the
submission, it is that I
should treat the reference in the application and the affidavit in
support of the application for summary
judgment, when referring to a
Close Corporation, as being obviously erroneous and intended to refer
to the private company defendant.
I was urged to do so on the basis
that the defendant previously traded as and formerly was a Close
Corporation. I find myself in
agreement with these submissions on
behalf of the plaintiff. The point in limine is of a highly technical
nature and, in my view,
the incorrect citation of the defendant in no
way detracts from the claim being directed against the liable party.
One can, in
my judgment, simply assume that because the defendant was
previously a CC, it must mean that summary judgment is being sought
against
it. Therefore, the aforegoing entitles me to read the
application for summary judgment as saying that summary judgment is
being
applied for against the defendant.”
[43]
Although the facts in the
F1
Steel CC
case are distinguishable from
the present case in that the defendant, Sparta Pharmaceutical CC, had
never been a private limited
company, (Pty Ltd), the ratio in the
F1
Steel CC
case applies equally to the
present case. This is strengthened by the fact that the
plaintiffs had cited the correct registration
number of the CC in the
original summons, particulars of claim and application for summary
judgment. There was no prejudice
to the defendant, who was
aware of the correct position and pointed it out in its plea.
[44]
In
his judgment, Adams J referred with approval to the following dictum
of Blieden J in
Standard
Bank of South Africa Limited v Roestof
[2]
:
“
If
the papers are not technically correct due to some obvious and
manifest errors which causes no prejudice to the defendant, it
is
difficult to justify an approach that refuses the application …”.
[3]
[45]
I am respectfully in agreement with the
approaches of Adams J and Blieden J and accordingly find that there
is no merit in this
point
in limine
raised by the defendant.
[46]
The plaintiffs' failure to deal with the
correct citation of the defendant in the affidavit in support of
summary judgment, despite
it having been pointed out in the
defendant's plea, is however indicative of a larger failure by the
plaintiff to engage with the
plea, which has more far-reaching
consequences.
[47]
On 1 July 2019 material
amendments to Rule 32 came into operation. In terms of
Rule 32(1) as amended, the plaintiff
may only apply for summary
judgment after the defendant has delivered a plea. The amended
rule 32 then requires the plaintiff
to engage with the plea.
[48]
Rule 32(2)(b) now provides as follows:
“
The
plaintiff shall, in the affidavit referred to in sub-rule (2)(a) [the
affidavit in support of the application for summary judgment]
verify
the cause of action and the amount, if any, claimed, and identify any
point of law relied upon and the facts upon which
the plaintiff's
claim is based, and explain briefly why the defence as pleaded does
not raise any issue for trial.”
[49]
The defendant has argued that the
plaintiffs failed to comply with Rule 32(2)(b) and that the
application is accordingly defective
and falls to be dismissed with
costs.
[50]
The
learned authors of
Erasmus:
Superior Court Practice
[4]
state
at
D1/402G,
that to comply with sub-rule (2)(b) the affidavit must contain:
a.
a verification of the cause of action and
the amount, if any, claimed;
b.
an identification of any point of law
relied upon;
c.
an identification of the facts upon which
the plaintiffs' claim is based; and
d.
a brief explanation as to why the defence
as pleaded does not raise any issue for trial.
[51]
The
authors submit that a court will have to be satisfied that each of
these requirements has been fulfilled before it can hold
that there
has been proper compliance with sub-rule (2)(b). This view
was endorsed in
Absa
Bank Limited v Mphahlele N.O
[5]
and more recently by Maier-Frawley J of this Division in
Mpfuni
v Segwapa Inc
[6]
,
as well as
Nissan
Finance v Gusha Holdings and Enterprises (Pty) Ltd
[7]
.
[52]
Referring to the views of the learned
authors of Erasmus, that full compliance with each of the
requirements in Rule 32(2)(b) is
peremptory, Maier-Frawley J stated
in footnote 3 of her judgment in
Mpfuni
(supra)
, that:
“
This
view was endorsed in Mphahlele supra, at par 15 and is a view I
share. It accords with the established case law under the former
rule
32(2) wherein the requirements of such sub-rule were considered to be
peremptory. See, for example, the reasoning employed
in Shackleton
Credit Management (Pty) Ltd v Microzone Trading 88 CC
2010 (5) SA 112
(KZP) at 122 F-I”.
[53]
In
the
Shackleton
Credit Management
[8]
case at 122I, the court states:
“
The
proper starting point is the application. If it is defective then
cadit quaestio.”
[54]
In
Tumileng
Trading CC v National Security and Fire Pty Ltd
[9]
,
Binns-Ward J embarked on a detailed analysis of the amendments to
Rule 32 and their purpose. Commenting on the requirement
that a
plaintiff's supporting affidavit should explain briefly why the
defence does not raise an issue for trial, the learned judge
said the
following at paragraph [22]:
“
What
the amended rule does seem to do is to require of a plaintiff to
consider very carefully its ability to allege a belief that
the
defendant does not have a bona fide defence. This is because the
plaintiff’s supporting affidavit now falls to be made
in the
context of the deponent’s knowledge of the content of a
delivered plea. That provides a plausible reason for the requirement
of
something
more than a ‘formulaic’ supporting affidavit from the
plaintiff. The plaintiff is now required to engage with
the content
of the plea in order to substantiate its averments that the defence
is not bona fide and has been raised merely for
the purposes of
delay.
”
[my emphasis]
[55]
In
the recent case of
FirstRand
Bank Limited v Linyanyabedi
[10]
,
Madiba AJ said the following at paragraph [9]
:
“
Summary
judgment is intended to afford a plaintiff who has an action against
the defendant who does not have a defence to have a
relief without
resorting to a trial. In terms of Rule 32(2)(b) the plaintiff has to
identify any point in law and facts relied
upon which his claim is
based.
The plaintiff has to briefly
explain why the defence pleaded does not raise any issues for trial.
It will not be enough to merely
state that the defendant did not have
a bona fide defence
.”
[my emphasis]
[56]
Having
regard to the plaintiffs' affidavit
in
support of its application for summary judgment, deposed by Mr
Baumann on 10 November 2022, it is apparent that the
plaintiffs did not engage with the defendant's plea at all.
[57]
Apart from the fact that the deponent does
not deal with the fact that the wrong entity had been cited as
pointed out in the plea
(an aspect with which I have already dealt),
it fails entirely to deal with the defence pleaded by the defendant.
[58]
All that the deponent says in paragraph 9
of the affidavit in support of summary judgment, is the following:
“
In
my opinion I believe that the defendant/respondent has no bona fide
defence to the claims as set out in the combined summons
and
particulars of claim and I humbly opine that the notice of intention
to defend and plea have been delivered by the defendant/respondent
solely for the purpose of delays.”
[59]
While this formula may have been adequate
before 1 July 2019, it is clear that the law and practice
in this area has developed
significantly and that such a cursory
approach will no longer suffice. Something more than a formulaic
supporting affidavit is
now required from a plaintiff, who must
engage with the contents of the plea in order to substantiate its
averments that the defence
is not
bona
fide
and has been raised merely for the
purpose of delay. This the plaintiffs have not done and
accordingly the application for
summary judgment does not comply with
Rule 32(2)(b).
[60]
The
summary judgment procedure does indeed provide summary justice and is
an exceptional remedy. This requires that an applicant
must strictly
and properly comply with the requirements of the rule that governs
it. This cannot be said in the present case
and in the words of
Wallis J (as he then was) in
Shackleton
Credit Management
[11]
,
cadit
quaestio.
[61]
In the circumstances, the application for
summary judgment falls to be dismissed.
Order
[62]
I make the following order:
a.
The Defendant is ordered to pay the costs
of the application to compel delivery of its heads of argument in the
summary judgment
application on the scale as between attorney and
client
.
b.
The application for summary judgment is
dismissed
.
c.
The Defendant is granted leave to defend
the action
.
d.
Costs of the application for summary
judgment shall be costs in the cause.
JW SCHOLTZ
ACTING JUDGE OF THE
HIGH COURT
Delivered
:
This judgment was prepared and authored by the Judge whose name is
reflected and is handed down electronically by circulation
to the
parties’ representatives by e-mail, uploading to CaseLines and
release to SAFLII. The date for hand down is deemed
to be 5 October
2023.
APPEARANCES
For the
Plaintiff/Applicant:
Adv. L. van Gass
Instructed by:
Van Greunen &
Associates Inc.
For the
Defendant/Respondent:
Mr. S. Friedland
Instructed by:
Beder-Friedland Inc.
Date
of Hearing: 29 August 2023
Date of Judgment:
5 October 2023
[1]
(2017/40082) [2018] ZAGPJHC 37 (7 March 2018).
[2]
2004
(2) SA 492 (W).
[3]
Id
at 496H.
[4]
Van
Loggerenberg
Erasmus
Superior Court Practice
RS
21 (2023).
[5]
(45323/2019, 42121/2019) [2020] ZAGPPHC 257 (26 March 2020) at para
5.
[6]
(2021/6574) [2022] ZAGPJHC 181 (14 March 2022) at paras 5-6, also at
n 2-3.
[7]
(2022/9914) [2023] ZAGPJHC 303 (5 April 2023) at paras 12, 25-26.
[8]
2010
(5) SA 112 (KZP).
[9]
2020 (6)
SA 624 WCC.
[10]
(57115/2019) [2022] ZAGPPHC 324 (18 May 2022).
[11]
Shackleton
above n 8.
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