Case Law[2023] ZAGPJHC 1319South Africa
DSV South Africa (Pty) Ltd t/a DSV Air and Sea v Phoenix Neomed (Pty) Ltd (2022-011215) [2023] ZAGPJHC 1319 (16 November 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
16 November 2023
Headnotes
judgment against the defendant. The plaintiff’s case was based on the enforcement of contract between the parties whose terms are not in dispute. The defendant raised several grounds for why summary judgment should not be granted but I found that none raised a triable issue.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
South Africa: South Gauteng High Court, Johannesburg
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## DSV South Africa (Pty) Ltd t/a DSV Air and Sea v Phoenix Neomed (Pty) Ltd (2022-011215) [2023] ZAGPJHC 1319 (16 November 2023)
DSV South Africa (Pty) Ltd t/a DSV Air and Sea v Phoenix Neomed (Pty) Ltd (2022-011215) [2023] ZAGPJHC 1319 (16 November 2023)
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sino date 16 November 2023
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
CASE NO:
2022-011215
NOT REPORTABLE
NOT OF INTEREST TO
OTHER JUDGES
NOT REVISED
In
the matter between:
DSV
SOUTH AFRICA (PTY) LTD
t/a
DSV AIR AND SEA
Plaintiff/Applicant
And
PHOENIX
NEOMED (PTY) LTD
Defendant/Respondent
JUDGMENT – LEAVE
TO APPEAL
Manoim
J
[1] This is an
application for leave to appeal brought by the defendant against a
judgement I granted on 13 September 2023.
In that case I granted
summary judgment against the defendant. The plaintiff’s case
was based on the enforcement of contract
between the parties whose
terms are not in dispute. The defendant raised several grounds for
why summary judgment should not be
granted but I found that none
raised a triable issue.
[2] In the present
application for leave three grounds for appeal were advanced and I
consider them seriatim.
[3]
The first I will term the illegibility issue. The defendant’s
case here is that the contract on which the claim
is based, whilst
being annexed to the particulars of claim, was illegible and hence
the papers were not compliant with the Rules
of Court at the time the
application for summary judgment was made. Much was made of judgments
in which courts have differed as
to what the consequences for a
summary judgment application are where there was a technical error
made by the plaintiff, but the
defendants have dealt with the issues
in their defence. In one matter,
Standard
Bank of South Africa Ltd v Roestof
2004
(2) SA 492
(W), Blieden J took the view that if there was no
prejudice to the defendant then summary judgment could still be
granted.
[4] However, Wallis
J took a contrary view in
Shackleton Credit Management (Pty) Ltd v
Microzone Trading 88 CC
and Another
2010 (5) SA 112
(KZP)
where he stated:
“
Insofar
as the learned judge suggested that a defective application can be
cured because the defendant or defendants have dealt
in detail with
their defence to the claim set out in the summons, that is not in my
view correct. That amounts to saying that defects
will be overlooked
if the defendant deals with the merits of the defence”
[1]
[5] Mr. Badenhorst
for the defendant urged me to follow the approach of Wallis J rather
than that of Blieden J in
Roestof
and hence grant leave to
appeal. However, I do not need to make this choice because the
defendant’s case in this matter does
not even get there on the
facts for a number of reasons.
[6] First, and
perhaps most important the claim was not defective. The contract
attached to the particulars of claim might
be a challenging read, but
it is certainly not illegible. Granted the version of the contract
the defendant put up annexed to the
answering affidavit is illegible,
but that cannot be said of what appears annexed to the particulars of
claim where the type face
although faint is nevertheless capable of
being read. Moreover, the contract was put up on Case Lines which
very helpfully has
under the “View” tab, a Zoom toggle
that enables the reader to magnify a document to make it easier to
read. Second,
even if the defendant felt it was not equal to the
challenge of reading the document as it was attached to the
particulars of claim,
it could have relied on the procedures set out
in Rule 18(12) read with rule 30 on the basis the plaintiff had not
complied with
rule 18(6). The defendant did not do so. Third, the
plaintiff had at the time of summary judgment application been
furnished another
version of the contract in the record where the
type on the contract was more distinct. Finally, the facts in
Shackleton
and
Roestof
are entirely distinguishable
from the present matter. Here the issue concerns whether the
attached contact was sufficiently
legible in the eyes of the reader,
in the other cases it was whether an inconsistent reference to the
defendants in plural and
singular created sufficient confusion.
[7] I do not
consider this point need bother a court on appeal.
[8] The second
point was that the defendant had raised as a defence and hence a
triable issue that the plaintiff had been
grossly negligent in
performing its duties as the defendants export agent and hence the
defendant had suffered damages. That may
well be a triable issue in
the ordinary course. But the plaintiff sued on a contract which
contains several provision which require
the defendant to pay now and
fight later. In other words, contractually this defence is retained
but it is delayed until the defendant
has first paid. This emerges
from three clauses in the contract whose import is this reading. I
quote one of them clause 27 which
states:
“
Unless
otherwise specifically agreed by the company in writing the customer
shall pay to the company in cash
immediately
upon presentation of account all sums due to the company without
deduction or set-off and payments shall not be withheld
or deferred
on account of any claim or counterclaim which the customer may
allege.”
[9] This principle
is then amplified and added to by clauses 40 and 45 which I need not
burden this decision by quoting. Thus,
this defence is not a triable
defence in terms of the contract.
[10]
The third defence as I understood to be modified in oral argument
related to
vis
maior
.
Succinctly put the defendant alleges that during the Covid pandemic
it had procured equipment from overseas, inter alia ventilators
on
behalf of its client the Department of Health. Despite procuring
these goods and having them delivered to the plaintiff’s
warehouse, the Department had not paid it and hence it could not pay
the plaintiff. But even if one accepts that the pandemic caused
difficulties for the defendant’s clients payment performance
i.e., caused delays from what ordinarily could have been anticipated
this does not amount to meet the threshold for vis maior as held in
the case law. It may have been difficult to perform not impossible
to
perform. As Christie explains, the impossibility must relate to
contractual obligations.
[2]
The
contractual obligation on the defendant was to make payment. This may
have been difficult from a cash flow point of view, but
it certainly
was not impossible. As Mr Fasser who appeared for the plaintiff
argued this was not a case where the regulations
associated with the
pandemic precluded a party from performing its obligation – at
most it made if more burdensome commercially.
[11]
Thus, in conclusion I do not consider that any of the grounds meet
the threshold for leave to appeal as now laid down
in terms of
section 17(1)(a) of the Superior Courts Act. The application is
dismissed, and the defendant is to pay the costs of
the application
to the plaintiff.
[3]
ORDER: -
[12] In the result
the following order is made:
1.
The application is dismissed;
2.
The defendant (“the applicant in the
leave to appeal”) is to pay the plaintiff’s (“respondent
in the leave
to appeal”) costs of the application.
N. MANOIM
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION
JOHANNESBURG
Date of hearing: 15
November 2023
Date of judgment: 16
November 2023
Appearances:
Counsel for the
Applicants: E. Fasser
Instructed by.
Wright, Rose-Innes Inc
Counsel for the
Respondent: MA Badenhorst SC
Instructed by: Geyser
Attorneys
[1]
At
paragraph 25.
[2]
Christie’s
Law
of Contract in South Africa
7
th
Edition, page 549
[3]
See
for instance
MEC
for Health , Eastern Cape v Mkhitha
2016
ZASCA 176
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