Case Law[2023] ZAGPJHC 1452South Africa
Killarney Country Club v Chance and Luna (Pty) Ltd t/a La Vie en Rose and Others (2022/018731) [2023] ZAGPJHC 1452 (11 December 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
11 December 2023
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: South Gauteng High Court, Johannesburg
South Africa: South Gauteng High Court, Johannesburg
You are here:
SAFLII
>>
Databases
>>
South Africa: South Gauteng High Court, Johannesburg
>>
2023
>>
[2023] ZAGPJHC 1452
|
Noteup
|
LawCite
sino index
## Killarney Country Club v Chance and Luna (Pty) Ltd t/a La Vie en Rose and Others (2022/018731) [2023] ZAGPJHC 1452 (11 December 2023)
Killarney Country Club v Chance and Luna (Pty) Ltd t/a La Vie en Rose and Others (2022/018731) [2023] ZAGPJHC 1452 (11 December 2023)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAGPJHC/Data/2023_1452.html
sino date 11 December 2023
IN THE HIGH COURT OF
SOUTH AFRICA
(GAUTENG DIVISION,
JOHANNESBURG)
Case no: 2022/018731
In the matter between:
KILLARNEY
COUNTRY CLUB
Applicant
And
CHANCE
AND LUNA (PTY) LTD
trading as
La
Vie en Rose
First
Respondent
MULLER
,
RONY
Second
Respondent
EZERZER
,
MOMY
Third
Respondent
EZERZER
,
LIOR
Fourth
Respondent
CITY
OF JOHANNESBURG PROPERTY
COMPANY
SOC LTD
Fifth
Respondent
CITY
OF JOHANNESBURG METROPOLITAN
MUNICIPALITY
Sixth
Respondent
JUDGMENT
This
judgment is handed down electronically by circulation to the parties’
legal representatives by e-mail and publication
on CaseLines.
MOULTRIE
AJ
[1] In the first of two
opposed motions argued before me in the week of 13 November 2023,
Killarney Country Club seeks the eviction
of the first to fourth
respondents from premises at which they are operating a restaurant
known as “La Vie en Rose”
on the property that KCC
occupies pursuant to various notarial leases that it concluded with
the City of Johannesburg, but which
the COJ purports to have validly
cancelled. KCC also seeks payment of amounts allegedly owing to it in
respect of utility charges
arising out of La Vie’s use of the
restaurant premises.
[2]
The
questions for determination in that application are (i) whether the
only defence raised by La Vie, which is based on the COJ’s
purported cancellation of KCC’s notarial leases, is a
cognisable basis to refuse to grant the eviction despite the common
law rule confirmed by the Constitutional Court in
Mighty
Solutions
[1]
to the effect that a lessee may not dispute the lessor’s
“title” to occupy a property; and (ii) whether the
dispute as to payment of utility charges should be referred to oral
evidence or whether it should be determined in favour of La
Vie on
the basis of the
Plascon
Evans
rule, given the material disputes of fact that have arisen in
relation to the amount said to be owing.
[3] In the second
application before me, La Vie seeks an order staying the eviction and
payment application pending the outcome
of two further applications
which are due to be heard together but which I am not called upon to
determine. These two further applications
are “the COJ’s
eviction application”, in which the COJ seeks the eviction of
KCC and “any persons occupying
and claiming occupation under or
through it” (i.e. including La Vie) from the property; and “the
review application”,
in which KCC seeks orders reviewing and
setting aside the COJ’s purported cancellation of the notarial
leases and declaring
that it is entitled to remain in occupation of
the property subject to the terms of those leases.
[4] At a pre-hearing
conference convened by the Court on 10 November 2023, it was agreed
by the parties that I should hear argument
on both KCCs’
eviction and payment application and La Vie’s stay application
together, but that I should determine
the stay application first and,
in the event that I were to conclude that the relief sought therein
should be granted, I would
not determine any of the relief sought in
the eviction and payment application.
BACKGROUND FACTS
[5] The two applications
fall to be determined in view of the following facts.
[6] In the late 1960s,
the land then occupied by KCC was earmarked by the City of
Johannesburg for the purposes of constructing
its main arterial
highway. It was agreed that KCC would relocate to five nearby erven
which the COJ purchased, and which together
comprise the property
that is the object of the parties’ dispute. This led to the
conclusion of various notarial long leases
and extensions thereof, in
terms of which the property so acquired was leased by the COJ to KCC
until 31 July 2040. Of relevance
is that clause 5 of KCC’s
notarial leases provided that the property would be used exclusively
for the purposes of a social
and sports club, and that “no
trade or business shall be carried on at the property” save for
the supply of goods and
services to KCC’s members or their
guests. In addition, clause 15 provided that KCC “shall not
have the right to sub-let
the whole or any portion of the property …
without the prior written consent” of the COJ “which
consent shall
not be unreasonably withheld”. Clause 11 entitled
the COJ to cancel the notarial leases under certain specified
circumstances,
one of which was if KCC failed to remedy a breach
within thirty days after the receipt of written notice from the COJ
requiring
it do so.
[7] During April 2017,
KCC concluded a transaction with the first, second and fourth
respondents for the purposes of enabling them
and the third
respondent to operate La Vie en Rose as a publicly accessible
restaurant from premises at the KCC. The parties’
joint
practice note records that it is common cause that “the true
nature and effect of [the transaction] was a lease”
and that La
Vie’s “right of occupation” thereunder “expired
in June 2021”. It is also common cause
that the conclusion of
La Vie’s sublease constituted a breach of KCC’s notarial
leases with the COJ. Although KCC declined
to agree to La Vie’s
request for an extension of its sublease when it expired in June
2021, La Vie remained in occupation
of the restaurant premises and
did not cease its operations despite La Vie’s demand that it
vacate.
[8] On 29 November 2021,
the COJ issued a breach notice to KCC alleging that it was in breach
of clauses 5 and 15 of the notarial
leases and calling upon it to
stop carrying on trade or business on the property through the
transaction concluded with La Vie,
alternatively to cancel the La Vie
sublease and ensure that La Vie vacated the property within 30 days,
failing which the COJ would
“regard your breach of contract as
final, and shall be entitled to cancel [KCC’s notarial leases]
and take any further
steps we deem necessary”.
[9] On 7 April 2022, the
COJ purported to cancel KCC’s notarial leases,
inter alia
on the basis that KCC had failed to rectify the breaches set out in
the breach notice referred to above. On 10 June 2022, the COJ
launched the COJ’s eviction application (albeit as a counter
application in another application that KCC had brought seeking
the
eviction of certain other sublessees of advertising billboards on the
property and which also formed the basis of the COJ’s
cancellation) for orders confirming the purported cancellation of
KCC’s notarial leases and for the eviction of KCC and La
Vie
from the property. Although the COJ indicated that it would in due
course seek the joinder of La Vie, this joinder has yet
to be sought
or effected. In opposing the COJ’s eviction application, KCC
contends that it had in fact remedied its breach
prior to the issuing
of the COJ’s breach notice,
inter alia
because the La
Vie sublease had by then already expired and KCC had declined to
extend it and demanded that La Vie vacate the restaurant
premises. In
addition, on 11 October 2022, KCC launched the review application in
which it contends that, even if the COJ did have
the right to cancel
KCC’s notarial leases, the exercise of that right falls to be
reviewed and set aside under the
Promotion of Administrative Justice
Act, 3 of 2000
or the doctrine of legality because (i) the Legal
Manager who made the decision was not duly authorised to do so; (ii)
it was procedurally
unfair and procedurally irrational; and (iii) it
was unreasonable, irrational and failed to take relevant
considerations into account.
[10] On 23 February
2023, KCC delivered its eviction and payment application. After all
the papers and the heads of argument
had already been filed, and
after the application had already been set down for hearing in the
week of 13 November 2023, La Vie
launched the stay application,
seeking to enrolled it on the urgent court roll during the week of 7
November 2023 (i.e. the week
before KCC’s application was due
to be heard). Despite this, the stay application was ultimately not
moved before the urgent
court and instead, as noted above, it was
agreed that the two applications would be argued together before me.
To the extent that
it is necessary, I condoned the late delivery of
the parties’ answering and replying affidavits in the stay
application,
and I have considered all the papers that have been
delivered in that application.
[11] One of the
bases advanced by La Vie for the relief it seeks in stay application
is the contention that the doctrine of
lis alibi pendens
is
applicable. In its answering affidavit, KCC sought to take the point
that this had not been raised as a defence in the eviction
and
payment application. This in turn prompted La Vie to deliver a
further interlocutory application seeking to supplement its
answering
affidavit in the eviction and payment application so as to formally
raise that defence. Although the supplementation
application was
opposed by KCC on the basis that it constituted “a desperate
attempt to derail the eviction application …
by rendering the
eviction application a procedural mess through numerous interlocutory
applications” and a strategy to avoid
its determination in the
week of 13 November 2023, it was also agreed at the pre-hearing
meeting that the supplementation of La
Vie’s answering
affidavit should be allowed, with only the question of the costs of
the supplementation application remaining
for determination.
THE STAY APPLICATION
[12] La Vie’s
founding affidavit in the stay application sets out four grounds upon
which it seeks the stay of the eviction
and payment application. They
are as follows: (i) “the importance of the matter” to La
Vie and its employees; (ii)
KCC’s eviction and payment
application is premature since La Vie has “started
negotiations” with the COJ to conclude
a direct lease for the
restaurant premises; (iii) the question of KCC’s
locus
standi
is “unclear” given that La Vie has been
advised by its legal representatives that the facts of this matter
distinguish
it from
Mighty Solutions
; and (iv) because the
doctrine of
lis alibi pendens
applies since the same relief
(i.e. La Vie’s eviction) is sought in the COJ’s eviction
application.
[13]
The only
authorities referred to by La Vie in support of its contention as to
the existence of a general discretion to stay legal
proceedings are
decisions of the Labour Court in which it has exercised its statutory
power to stay the execution of an arbitration
award pending the
outcome of a review application in terms of
section 145(3)
of the
Labour Relations Act, 66 of 1995
.
[2]
These judgments have in turn have applied the jurisprudence
applicable to Uniform
Rule 45A
, which empowers a court to grant an
application to “suspend the operation and execution of any
order for such period as it
may deem fit”,
[3]
and the courts’ similar inherent powers under the common
law.
[4]
Although some of these
cases observe that the court should in the exercise of its discretion
consider the factors usually applicable
to interim interdicts, a
similar threshold requirement applies in all these instances: namely
whether the applicant has demonstrated
that “real and
substantial justice” requires the stay or that “injustice
would otherwise be done”.
[14]
While it
seems to me that I do have such a discretion on grounds dictated by
the interests of justice,
[5]
I
am of the view that none of the four grounds relied upon by La Vie in
the current matter sustains its contention that the determination
of
the eviction and payment application would result in injustice.
Importance of the
matter to La Vie
[15] La Vie alleges
that it and its employees will face economic hardship if they are
evicted. While I do recognise the importance
of the matter to them in
this sense, this contention in and of itself (i.e. shorn of the
remaining allegations, with which I deal
below), boils down to
nothing more than a plea
ad misericordiam
for a delay of the
inevitable application of the law.
[16] In other
words, unless I find that there is doubt about the lawfulness of La
Vie’s eviction, I cannot see how the
fact of the economic
hardship that their eviction would cause could constitute a basis for
a finding of injustice justifying a
stay of the eviction and payment
application.
Alleged negotiations
between La Vie and the COJ for La Vie to remain in occupation
[17] Regarding the
allegation that La Vie had “started negotiations” with
the COJ to conclude a direct lease for
the restaurant premises, this
turns out to have been somewhat of an overstatement. The COJ filed an
affidavit in response to this
allegation indicating that, in actual
fact, it is not in negotiation with La Vie “or any entity for
that matter” in
relation to the occupation of the restaurant
premises at KCC. In reply, La Vie concedes that all it had done was
to send a letter
to the COJ “with the intention of having a
direct lease”, and that no response had been received. This
could hardly
be described as constituting the commencement of
“negotiations” for the conclusion of a lease.
[18] The COJ also
stated that “in the event that” it were to consider
concluding a lease for the restaurant premises,
that “ought to
go out on a tender or procurement process” but that “that
process has not started yet”,
and “once it is open a
public tender will ensue”. Although La Vie appears to read into
this that a tender process is
“due”, there is no evidence
that such a process is even being planned by the COJ, let alone that
it is imminent.
[19] This factual
basis for the contention that the eviction and payment application is
“premature” for this reason
is therefore abstract and
speculative at best and is in my view an insufficient basis to grant
the stay that La Vie seeks.
KCC’s
locus
standi
and the issue of
lis alibi pendens
[20] Implicitly
recognising the weakness of the aforegoing two grounds for the stay
application, La Vie’s counsel submits
in his heads of argument
that “the purpose of the stay application is to resolve two
defences that La Vie has raised against
the eviction sought by KCC,
being the issue of
locus standi
and
lis pendens
”
and that if that application is heard before the COJ’s eviction
application and the review application, an “injustice
will be
carried out” against La Vie because “there are good
prospects that the … termination of [KCC’s
notarial
leases] will be upheld thereby making the standing of [KCC] in this
application moot as there would have been no basis
for [KCC] to evict
[La Vie] instead of the [COJ]”.
[21] It is
convenient to consider these arguments together in the context of the
stay application even though La Vie itself
notes in its founding
affidavit in the stay application that they are both (especially in
view of the agreed supplementation) intended
to be raised as
preliminary issues in the eviction and payment application, and would
thus
ex hypothesi
only arise for determination in the event
that the stay were to be refused and I were to proceed to determine
the eviction and
payment application.
[22] Starting with
the
locus standi
argument, the deponent to the founding
affidavit in the stay application candidly states that when La Vie
requested its new attorneys
in September 2023 for advice on its
prospects of success in the eviction and payment application, it was
furnished with an opinion
which had been “confirmed by counsel”
advising that, in view of the decision in
Mighty Solutions
“the preliminary point raised by [its] erstwhile attorneys on
the answering affidavit was insufficient to resist the eviction
on
the basis that the landlord does not have title or lawful occupation
of the Property”.
[23]
This advice
was undoubtedly correct. The Constitutional Court in
Mighty
Solutions
expressly held that the common law rule preventing a lessee from
disputing the title of the lessor to evict on the basis that it
has
no right to occupy the premises applies even if, as a matter fact,
the lessor no longer had such a right when it moved to evict
the
lessee.
[6]
[24] La Vie’s
deponent however states that the opinion went on to indicate that
“there are exceptions to the general
application of the common
law rule and this matter is one of those matters in terms of which
the exceptions apply”. This
is evidently a reference to
paragraph 55 of
Mighty Solutions
, where the Constitutional
Court observed that “there may well be … scenarios where
the rule should not apply”.
The only hint in the founding
affidavit in the stay application itself as to what the particular
“exception” in the
current matter might be is the
statement that KCC’s
locus standi
is “unclear”
because KCC does not have a “contractual right” to evict
La Vie because “the existence
of [KCC’s notarial leases]
empowering [KCC] to launch the eviction proceedings has already been
cancelled and KCC has instituted
[the review application which] is
currently pending … for determination together with the [COJ’s
eviction application]”.
The hint is the use of the words
“existence” and “empowering”.
[25] Slightly
different language is employed in reply, where La Vie’s
deponent states that:
“
the facts are
different in that in the
Mighty Solutions
… case the
validity of the sub-lessor's authority to sublease was not in
question and therefore the lease was binding. In
the [COJ’s
eviction application, COJ has] challenged [KCC’s] authority to
sublease. In this instance therefore without
their authority to
sublease being confirmed, this Honourable Court cannot make an order
of eviction.”
[26] La Vie’s
contention was further clarified in it heads of argument and by its
counsel during the hearing. In essence,
La Vie now seeks to
distinguish
Mighty Solutions
not merely on the basis that
KCC’s notarial leases were cancelled, but on the contention
that the La Vie sublease was void
ab initio
. La Vie’s
heads of argument in the eviction and payment application say the
following:
“
The lease that
existed between COJ and KCC did not empower KCC to enter into any
subletting agreements with any entities; …
By virtue of the
fact that KCC was never empowered to conclude this agreement in terms
of the main lease, the sublease is null
and void ab nitio [sic]; …
As such KCC has no direct and substantial interest in this matter and
the party empowered to
initiate any eviction proceedings is only COJ
being the entity that holds the title to the property.”
[27] A similar
argument is advanced in its heads of argument in the stay
application:
“
the purported
verbal agreement to sub-lease the property was unauthorized by the
City and therefore unlawful, in essence there was
no sub-lease
agreement between the parties, other than the other suite of
agreements between the parties. There was no terms between
the
parties that authorises KCC to evict the La Vie en Rose, at best KCC
should be arguing that the Loan Agreement and Employment
agreement
were terminated, simply stated KCC has no sub-lessor rights towards
La Vie en Rose.”
[28] In my view,
the common cause fact that KCC’s conclusion of the La Vie
sublease was in breach of clause 15 of KCC’s
notarial lease
does not in itself render the La Vie sublease void
ab initio
,
non-existent, “unlawful” or otherwise unenforceable as
between KCC and La Vie.
[29] This
contention faces two independent difficulties, each of which is
insurmountable in its own right:
(a)
In the
first place, the issue is in my view simply not a matter of
“authority” or “power”. La Vie’s
contention that KCC did not have the “authority” to
conclude the La Vie sublease, or that it was not “empowered”
do so appears to me to be a misguided attempt to apply (incorrect)
public law principles to the private law relationship between
those
parties. And indeed, the Constitutional Court in
Mighty
Solutions
approved venerable authority to the effect that even a public
authority lessee that had no power to lease the property from the
main lessor in the first place may seek the ejectment of its putative
sublessee, who may not raise the public authority’s
absence of
such power to resist ejectment.
[7]
Furthermore, clause 15 of the KCC notarial leases specifically
contemplated that KCC indeed had the “power” to sublease
– a power which it could exercise as long as it obtained the
prior written consent of the COJ. In those circumstances, it
seems to
me that the fact that KCC purported to exercise its power of
subleasing without obtaining prior written consent from the
COJ would
(at best for La Vie) render the agreement voidable, not void
ab
initio
.
[8]
(b)
Secondly, a
contractual prohibition on subleasing in a lease only affects the
validity of a sublease concluded in breach of that
prohibition if the
main lessor chooses to enforce that prohibition against the lessee.
Since the main lessor has no contractual
relationship with the
sublessee,
[9]
the enforcement of
the main lessor’s rights is a matter strictly between it and
the lessee and will depend entirely on the
approach that the lessor
takes to the lessee’s breach. In particular, the lessee’s
breach of such a prohibition will
only affect the ”validity”
of the arrangements between the lessee and the sublessee if the
lessor chooses to uphold
its lease with the lessee and claim specific
performance in the form of an order requiring that the sublease be
cancelled by the
sublessee and/or declared null and void.
[10]
But that is not what has happened here: it is common cause that the
COJ is not seeking to uphold KCC’s notarial leases
and claim
specific performance thereof: instead, it has purported to cancel
them and seeks no relief requiring KCC to comply with
them.
[30] There is some
suggestion in La Vie’s heads of argument that the current
matter is also distinguishable from
Mighty Solutions
on the
basis that the sublease in question in that case contained express
provisions obliging the sublessee to restore vacant possession
and
affording the lessee a contractual right to demand the ejectment of
the sublessee at the end of the contract. It seems to me
that this is
a misreading of paragraphs 26 and 46 of the Constitutional Court’s
judgment, which refer to these as “natural
incidents” or
“implied terms” of leases. The only potential difference
between this case and
Mighty Solutions
is the fact that it is
common cause that La Vie’s sublease was concluded in breach of
KCC’s notarial leases, and which
I have already found above
does not mean that it never existed or was void
ab initio
. I
thus conclude that La Vie has identified no facts that can
distinguish this case from
Mighty Solutions
.
[31] As to the
issue of
lis alibi pendens
, neither the COJ nor KCC seek to
contend in the COJ’s eviction application or in KCC’s
related review application that
La Vie’s sublease was null and
void
ab initio
.
[32] Although
paragraph 11 of the affidavit filed by COJ in support of its eviction
application states somewhat cryptically
that KCC is “not
competent” to act as principal lessee of the property given
that the KCC notarial leases had been
cancelled, it is apparent that
the COJ does not seek to impugn La Vie’s sublease at all, but
rather founds its case for eviction
squarely on the purported
cancellation, which COJ seeks to have “confirmed” by
order of the Court. Furthermore, to
the extent that it involves KCC’s
conduct in relation La Vie, the COJ’s eviction application is
based on KCC’s
alleged failure to comply with the breach notice
delivered by the COJ on 29 November 2021 which alleged that KCC (i)
was carrying
on trade or business on the property in contravention of
clause 5 KCC’s notarial lease through an “arrangement /
agreement
/ simulated transaction” with La Vie; or (ii)
alternatively that KCC was in breach clause 15 of KCC’s
notarial lease
by subletting and/or ceding some of its rights
thereunder to La Vie. As a result of this conduct COJ demanded that
KCC should “stop
carrying on any trade or business contrary to
[KCC’s notarial lease] alternatively cancel the subletting
agreement with La
Vie en Rose and ensure that they vacate the
property within 30 (thirty) days from date of receipt or this
letter”. Paragraph
61 of the COJ’s affidavit makes it
clear that, in effecting the cancellation, it relied on the
application and operation
of the breach and cancellation clause
contained in clause 11 of KCC’s notarial leases because KCC had
failed to “cure
the breaches complained of in the second breach
notice” within 30 days. In paragraphs 71 and 72, the COJ
alleges that it
seeks the eviction of La Vie together with that of
KCC on the basis that the cancellation of the KCC notarial leases
“automatically
terminates all subleases”, and that La Vie
“derived their right to occupy from [KCC] which right has been
terminated”
alternatively, if there is no sublease, on the
basis that La Vie’s occupation was (and remains) unlawful. It
is thus apparent
that the COJ does not contend that the La Vie
sublease (the existence and termination of which is common cause
before me) was void
ab initio
.
[33] As for KCC,
although it does appear that at some point in the past it contended
that the La Vie sublease was void
ab initio
, it did not do so
on the basis that it was concluded in breach of the notarial leases,
and that is not its contention before me.
More importantly, however,
KCC does not persist with that contention in resisting the COJ’s
eviction application or advancing
the review application. Its defence
is set out in paragraphs 8 to 12 of its answering affidavit and is as
follows:
(a) Firstly, on the basis
that the COJ’s decision to cancel KCC’s notarial leases
was unlawful on the grounds set out
in the review application, namely
that (i) the Legal Manager who made the decision was not duly
authorised; (ii) it was procedurally
unfair and procedurally
irrational; and (iii) it was unreasonable, irrational and failed to
take relevant considerations into account.
(b) Secondly, because “to
the extent that KCC had breached the [KCC’s notarial leases],
KCC remedied that breach within
thirty days of the receipt of COJ’s
notice of breach”; and
(c) Thirdly, because 18
employees of KCC and their families and 17 caddies reside at the
property, and the COJ had failed to comply
with the provisions the
Prevention of Illegal Eviction from and Unlawful Occupation of Land
Act, 1998.
[34] It is thus
apparent that neither the COJ nor KCC are alleging that the lease
agreement was void
ab initio
in either the COJ’s
eviction application or the review application. It is simply not an
issue that will arise for determination
in either of those cases.
[35]
As such, I
conclude that the defence of
lis
alibi pendens
does not avail La Vie because (even on the most relaxed application
of that principle) the COJ’s eviction application and
the
review application will not involve determination of the central
question that La Vie seeks to have decided in the present
case,
[11]
namely whether the La Vie sublease was void
ab
initio
on the basis that it was concluded in breach of the KCC notarial
leases.
[36] Finally, even
assuming that La Vie were to “formally join the proceedings and
file a substantive affidavit”,
and that it were to successfully
argue that its sublease is void
ab initio
, either on the
grounds which I have rejected above or on any other basis, that would
be entirely irrelevant. This is because there
is no question
whatsoever of the COJ’s right to seek La Vie’s eviction
in the event that the cancellation of KCC’s
notarial leases is
upheld: indeed that is precisely what the COJ seeks to do.
Conclusion and costs
in relation to the stay application
[37] For the
reasons set out above, I am of the view that there is no merit in the
stay application and that it falls to be
dismissed with costs. An
order to this effect will issue.
[38]
KCC seeks a
punitive costs award in the stay application on the basis that the
notice of motion sought to set it down on the urgent
roll in the week
prior to the hearing of the eviction and payment application. There
is some superficial force in KCC’s contention
that this may
have been intended to draw an urgent judge who would not be able to
consider the matter carefully: it has certainly
exercised my mind,
and it has only been on careful and mature consideration
[12]
that I have been able to reach the conclusion that it is misguided
and should not be granted. However, as early as 19 October 2023,
La
Vie’s counsel informed KCC’s attorneys that he was of the
view that their earlier proposal of 1 October 2023 that
the stay
application should be heard at the commencement of the eviction and
payment application on the ordinary opposed roll during
the week of
13 November 2023 was a sensible one. Although this was only confirmed
by La Vie’s attorneys on 24 October 2023,
KCC’s attorneys
had already withdrawn their proposal earlier that day. An agreement
was only ultimately formally reached
at the pre-hearing conference
convened by the Court on 10 November 2023. In the circumstances,
although I am of the view that the
stay application was misguided and
cannot succeed, I am not convinced that it constituted an abuse that
justifies the award of
punitive costs.
THE EVICTION AND
PAYMENT APPLICATION
The eviction relief,
the appropriate order and costs
[39] Given that the
only defences raised by La Vie against its eviction are its
contentions in relation to
locus standi
and
lis alibi
pendens
that I have found are unavailing, the inevitable result
is that KCC is entitled to the ejectment order that it seeks and that
it
should be awarded its costs. KCC did not, however, make out any
case for the order it seeks specifically “authorising the
sheriff to enlist the services of the South African Police Services
or the services of a private security service provider to assist
in
the eviction of the unlawful occupiers, if necessary”, and I
see no reason why such an order should be granted as a matter
of
course in what KCC itself refers to as a “stock standard”
commercial eviction. In addition, KCC made out no case
for an
interdict prohibiting La Vie from entering or regaining occupation of
the property subsequent to the eviction: there was
no evidence
whatsoever before me of the existence of any reasonable apprehension
that the respondents might act in contempt of
a court order in this
manner.
[40] As to costs, I
am again unpersuaded that a punitive costs order is appropriate.
While the defences raised by La Vie were
misguided, they were not
per
se
abusive. Furthermore, although KCC’s counsel
specifically sought a punitive costs order in relation to the
supplementation
application, it seems to me that La Vie delivered
that application only because KCC had taken the technical point in
its answering
affidavit in the stay application that La Vie had not
formally raised the defence of
lis alibi pendens
in its
answering affidavit in the eviction and payment application. As KCC
points out, no additional facts of any significant relevance
to the
defence were raised in the supplementary answering affidavit, and it
was therefore not strictly necessary for KCC to have
opposed the
supplementation application with the vigour that it did.
Referral of the
utility charges dispute to oral evidence
[41] Although it is
common cause that La Vie is liable to KCC in respect of the
consumption of electricity and water at the
restaurant premises and
in respect of municipal sewerage charges appliable thereto, I am
satisfied that a factual dispute has arisen
on the papers with regard
to the amount, if any, that is due owing and payable by La Vie in
this regard.
[42] I am
furthermore satisfied that KCC could not reasonably have anticipated
this factual dispute. Although the answering
affidavit and the
annexures annexed thereto show that La Vie had during the period
between June and October 2021 raised “concerns”
and
demanded “documentary proof” of the utility charges
claimed by KCC, its main complaint related to its liability
for a
proportionate share of “service and demand charges”
levied by the COJ which KCC sought to pass on after May 2021.
It is
apparent that by October 2021, La Vie’s contention had
crystallised into an allegation that it had been overcharged
an
amount of R39,716.98. No allegation is made in the answering
affidavit that KCC is claiming any incorrect utility charges for
the
period after October 2021, or that La Vie raised any further disputes
in respect of such charges between October 2021 and the
date upon
which this application was launched.
[43] KCC explains
in its replying affidavit that its calculation of the amount claimed
(as set out in annexure FA13) was undertaken
on the basis that La
Vie’s earlier contentions that it was not liable for a
proportionate share of the service and demand
charges levied by the
COJ, and that it had been overcharged were all correct. KCC
furthermore alleges that the schedule prepared
by La Vie and annexed
to its answering affidavit setting out the amounts allegedly
overcharged (annexure LC10) either fails to
recognise that the
alleged overcharges have already been accounted for in FA13 or raises
disputes that had not been raised by prior
to the launch of the
application.
[44] While La Vie’s
counsel correctly observes that there is “clearly a material
dispute” regarding the
utility amounts, it is simply reiterated
that annexure “LC10” should be accepted as correct and
submitted that had
KCC been “acting in good faith”, it
would have pursued its claim by way of action proceedings. This does
not, however,
address what appears to me to be KCC’s cogent
explanation in reply as to why it could not have anticipated the
factual dispute.
In the circumstances, I am of the view that it is
appropriate that this issue should be referred to oral evidence, as
KCC requests.
[45]
The relief
sought by KCC in relation to the utility charges dispute in its
proposed draft order is framed as follows: “[t]hat
the relief
set out in paragraph 6 of the Notice of Motion in the Eviction
Application be referred to oral evidence”. In my
view, this is
inappropriately broad, and would be akin to a referral to trial. In a
referral to oral evidence, the affidavits stand
as evidence save to
the extent that they deal with disputes of fact and once the specific
disputes have been resolved by oral evidence,
the matter is decided
on the basis of that finding together with the affidavit evidence
that is not in dispute.
[13]
The dispute of fact that has arisen in the current instance is not
about the availability of the relief
per
se
, but
about the amount due, owing and payable by La Vie to KCC in respect
of utility charges, if any. I have thus formulated the
order in a
form recently approved by the Supreme Court of Appeal.
[14]
ORDER
[46] The following
order is issued:
1. All parties’
non-compliances with the rules of court relating to time periods and
manner of service in relation to
the stay application dated 27
September 2023 are condoned.
2. The stay
application launched on or about 28 September 2023 is dismissed.
3. The first to
fourth respondents are granted leave to supplement their answering
papers in the form of “Annexure A”
in the supplementation
application dated 23 October 2023.
4. It is declared
that the first, second, third and fourth respondents have no right of
occupation in respect of the following
erven (collectively referred
to as “the Property”):
a. Erf 2381
Houghton Estate;
b. Erf 2382
Houghton Estate;
c. Portion 145 of
the Farm Syferfontein, No 51, IR;
d. Erf 111 Melrose
Estate; and
e. Erf 122 Melrose
Estate.
5. The first,
second, third and fourth respondents and any other persons occupying
through them are ejected and ordered to
vacate the Property.
6. In the event of
any of the ejected parties failing and/or refusing to vacate the
Property as aforesaid, the sheriff is
authorised to enter the
Property and to take all steps necessary to give effect to paragraph
5 above.
7. Save for the
costs reserved pursuant to paragraph 8 below, the first to fourth
respondents are ordered to pay the applicants
costs, including its
costs in the stay and supplementation applications, jointly and
severally, the one paying the others to be
absolved.
8. The
determination of the amount due owing and payable by the first
respondent to the applicant in respect of utility charges,
if any, is
referred to oral evidence and the costs in relation to that
determination are reserved.
RJ MOULTRIE AJ
Acting Judge of the High
Court
Gauteng Division,
Johannesburg
DATE HEARD: 16 November
2023
JUDGMENT: 11
December 2023
APPEARANCES
For the applicant: LM
Spiller instructed by J Weinberg of Telfer Inc.
For
the 1
st
to 4
th
respondents: TM Khaba instructed
by S Lusenga of Lusenga Attorneys Inc.
[1]
Mighty
Solutions CC v Engen Petroleum Ltd
2016 (1) SA 621
(CC).
[2]
Passenger
Rail Agency of South Africa Soc Ltd (PRASA) v Sheriff for the
District of Goodwood and others
[2019] JOL 40989
(LC) para 12;
Chillibush
Communications (Pty) Ltd v Gericke & others
[2010] JOL 24799
(LC) para 18;
Robor
(Pty) Ltd (Tube Division) v Joubert & others
[2009] JOL 23568
(LC) paras 9 to 11.
[3]
Erasmus
v Sentraalwes Kooperasie Bpk
[1997] 4 All SA 303
(O);
Road
Accident Fund v Strydom
2001 (1) SA 292 (C).
[4]
Strime
v Strime
1983 (4) SA 850
(C) at 852A;
Santam
Ltd v Norman
1996 (3) SA 502
(C) at 505E-F.
[5]
Mokone
v Tassos Properties CC
2017
(5) SA 456
(CC) paras 66 – 69.
[6]
Mighty
Solutions
(above) para 31. For the same reason, I am unmoved by La Vie’s
protestations that the KCC acted improperly in failing to
refer in
its founding affidavit in the eviction and payment application to
the fact that COJ had purportedly cancelled its notarial
leases
before the application was launched.
[7]
Kala
Singh v Germiston Municipality
1912 TPD 155
at 159 – 160, approved in
Mighty
Solutions
(above) para 29.
[8]
Compare
Gründling
v Beyers and Others
1967 (2) SA 131
(W) at 139H–140 and 145B–C, applying
Mine
Workers’ Union v Prinsloo
1948 (3) SA 831 (A).
[9]
There is no
vinculum
iuris
between them:
Sweets
from Heaven (Pty) Ltd v Ster Kinekor Films (Pty) Ltd
1999 (1) SA 796
(W) para 6.
[10]
This was effectively the situation that arose in
Ummi
Properties (Pty) Ltd v Cowsta Beleggings (Pty) Ltd & another
[2010] JOL 25103
(ECP), to which La Vie’s counsel referred me.
In any event, even if the COJ had taken that approach, it is not
obvious
to me that a declaration of nullity would necessarily be
retrospective or render the sublease void
ab
initio
.
In my view, it such an order would more appropriately be prospective
only, but I am not required to decide this issue.
[11]
Harms, LTC
Amler’s
Precedents of Pleadings
.
9 ed. (2018, LexisNexis) p. 251, referring to
Nestlé
(SA) (Pty) Ltd v Mars Inc
2001 (4) SA 542 (SCA).
[12]
Cf.
Minister
of Justice & Constitutional Dev v SA Litigation Centre
2016 (3) SA 317
(SCA) para 107.
[13]
Lekup
Prop Co No 4 (Pty) Ltd v Wright
2012 (5) SA 246
(SCA) para 32.
[14]
EFF
v Manuel
2021
(3) SA 425
(SCA) para 133.
sino noindex
make_database footer start
Similar Cases
K.H NO v H Trust and Others (035385/2022) [2023] ZAGPJHC 1146 (6 October 2023)
[2023] ZAGPJHC 1146High Court of South Africa (Gauteng Division, Johannesburg)98% similar
Khairanwali Cash and Carry CC and Others v Heimans Building (Pty ) Ltd (2021/2113) [2023] ZAGPJHC 615 (2 June 2023)
[2023] ZAGPJHC 615High Court of South Africa (Gauteng Division, Johannesburg)98% similar
N.N.K.K v V.W.K (108650/2023) [2025] ZAGPJHC 896 (2 September 2025)
[2025] ZAGPJHC 896High Court of South Africa (Gauteng Division, Johannesburg)98% similar
K.N.G. v T.L. (25/086657) [2025] ZAGPJHC 1142 (8 July 2025)
[2025] ZAGPJHC 1142High Court of South Africa (Gauteng Division, Johannesburg)98% similar
K.M and Another v N.P (077931/2024) [2024] ZAGPJHC 915 (6 September 2024)
[2024] ZAGPJHC 915High Court of South Africa (Gauteng Division, Johannesburg)98% similar