Case Law[2023] ZAGPJHC 1455South Africa
Matrick Freight Services CC v Ekurhuleni Metropolitan Municipality (7803/2021) [2023] ZAGPJHC 1455 (13 December 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
2 August 2022
Headnotes
a court was not at liberty to ignore a claim or strike out a defence merely because one of the parties has failed to take an important procedural step. The court held that a court must satisfy itself that the claim or defence sought to be struck out or has no intrinsic merit. Clearly the defence was not considered. It was certainly not considered in the context of the pending application to amend.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Matrick Freight Services CC v Ekurhuleni Metropolitan Municipality (7803/2021) [2023] ZAGPJHC 1455 (13 December 2023)
Matrick Freight Services CC v Ekurhuleni Metropolitan Municipality (7803/2021) [2023] ZAGPJHC 1455 (13 December 2023)
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sino date 13 December 2023
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
Case Number: 7803/2021
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO
13/12/2023
In
the matter between:
In
the matter between:
MATRICK
FREIGHT SERVICES
CC
Applicant
and
EKURHULENI
METROPOLITAN MUNICIPALITY
Respondent
ORDER
[1]
The judgment of Molahlehi J handed down on
2 August 2022 is rescinded.
[2]
The respondent is to pay the costs of the appli
c
ation.
JUDGMENT
Fisher J:
Introduction
[1]
This is an application for rescission of an
order in terms of which the plaintiff’s claim was struck out
and dismissed with
costs on the basis of a failure to comply with an
order directing the plaintiff to file heads of argument in an
exception to the
particulars of claim.
[2]
The action concerns a claim in a building
dispute. It is for payment of an amount of in excess of R7 million
for goods sold and
delivered and services rendered in connection
therewith.
[3]
The rescission is opposed on the basis that
the defendant argues that the explanation given for the default of
appearance should
not be accepted by the court.
[4]
In order to fully appreciate the
explanation – which is that of the plaintiff’s attorney,
it is necessary to set out
some set out the procedural context
leading up to the striking out of the plaintiff’s claim.
Procedural background
[5]
The claim was instituted on 18 February
2021, shortly before it was due to prescribe.
[6]
On 31 March 2021 the defendant municipality
filed an exception in terms of which it contended that the
plaintiff’s claim made
out no cause of action.
[7]
The major thrust of the complaint in the
exception was that there had not been a proper pleading of the
cession of the claim relied
on for the cause of action.
[8]
The municipality filed its heads of
argument in the exception on 20 April 2021.
[9]
The response of the plaintiff’s
attorney was to seek to amend the particulars of claim with the view
to curing the alleged
excipiability claimed by the municipality. This
is a common and sensible approach when an exception is taken.
[10]
On 18 August 2021 the municipality objected
to the proposed amendment. On 30 August 2021 the plaintiff launched
an application to
amend which application was opposed by the
municipality on 16 September 2021.
[11]
There was thus an application to amend
which was ripe for hearing which had the potential to make the
exception redundant. This
was its stated purpose of the application
to amend.
[12]
This position notwithstanding, those
representing the defendant instituted an application to compel the
plaintiff to file its heads
of argument in the exception within three
days. This was an anomalous approach in light of the application to
amend.
[13]
The application to compel the filing of
heads was not opposed. The focus of the matter was on the application
to amend. The plaintiff’s
attorney was, understandably, under
the impression that the exception would not be proceeded with and
accordingly this process
was not the focus of his office.
[14]
The plaintiff, continued in earnest with
the prosecution of the application for amendment. The plaintiff’s
attorney had made
it clear, in writing, that the amendment
proceedings should axiomatically precede the exception proceedings in
that the application
for amendment dealt materially with the
exception.
[15]
Yet an application to strike out the
claim on the basis of the failure to file the heads in the exception
was brought.
[16]
This application to strike out
succeeded where it should not have. This lies at the heart of the
matter and will be examined later
in some detail.
Discussion
[17]
The plaintiff’s attorney has been put
to the distress and embarrassment of having to set out in detail how
his depressive
illness and personal circumstances led to the lapse
which resulted in the failure to oppose the application to strike
out. This
is deeply regrettable.
[18]
The focus of the municipality is the
explanation of the plaintiff’s attorney. It is argued
that the explanation is deficient
and also that the plaintiff should
not be allowed to rely on its attorney’s default.
[19]
This focus seeks to sidestep material
deficiencies in the process which resulted in the order to strike out
the claim. I turn to
examine this process.
[20]
The first material step taken by the
municipality was to bring an application to compel the filing of the
heads of argument.
[21]
The municipality’s attorney, Philisa
Ndikela Vellem (Vellem) made the founding affidavit in the
application to compel and
in the application to strike out.
[22]
The application to compel is troubling in
that it fails to draw the courts attention to the fact that the
plaintiff has elected
to amend the cause of action in issue with a
view to curing any excipiability and that there is, in fact, an
opposed application
pending in relation to this proposed amendment.
[23]
No court would entertain the granting
of an order compelling the filing of heads of argument for an
exception which was not ripe
for hearing because it had been
overtaken by an application for the amendment of pleadings which were
the subject matter of the
exception.
[24]
The affidavit in the application to strike
out is more troubling still. It makes oblique and misleading
references to the procedural
position stating that the plaintiff has
filed heads of argument in “the wrong application” which
is a reference to
the application to amend. Most importantly it
fails to explain that it is the plaintiff’s view, correctly
taken, that
the exception was substantively not ripe for hearing and
had the potential to become redundant.
[25]
Furthermore,
the order which was sought and granted failed to take account of the
fact that it is a rule that a party whose pleading
is struck out in
an exception is entitled as a matter of course to amend such
pleading.
[1]
[26]
In
Constantara
v BCE Foodservice
Equipment
(Pty) Ltd
[2]
the
Court remarked as follows in relation to this rule:
‘
Such
a rule is both understandable and necessary. Such an exception can
never put an end to the dispute if a plaintiff has a viable
alternative basis for its claim; even though the original claim is
struck down without leave to amend, the plaintiff can always
issue a
new summons in which the alternative is pleaded. So refusing an
amendment is merely a waste of costs. But the plaintiff
may be
blocked by prescription. In such a case said Corbett CJ in
Group
Five Building supra
at 603A ‘it
would be contrary to the general policy of the law to
attach
such drastic consequences to a finding that the
plaintiff’s
pleading discloses no cause of action.”
[27]
As I have said, the claim in this
matter has prescribed and the striking out of the claim without the
option of an amendment would
be the drastic and consequences
described in
Constanara.
This
is generally contrary to the general policy of the law and the
Constitution.
[28]
In
Capitec
Bank Ltd v Mangena and another
[3]
it
was held that a court was not at liberty to ignore a claim or strike
out a defence merely because one of the parties has failed
to take an
important procedural step. The court held that a court must satisfy
itself that the claim or defence sought to be struck
out or has no
intrinsic merit. Clearly the defence was not considered. It was
certainly not considered in the context of the pending
application to
amend.
Conclusion
[29]
Accordingly, the order granted was patently
erroneous. This error, to my mind, was brought about by the
employment of a process
was clearly abusive.
[30]
To my mind and to the extent that it bears
examination in the circumstances the explanation for default is
accepted.
Costs
[31]
I note that the plaintiff tendered the
costs of the application which tender was declined. It was imprudent
for the defendant to
persist with this application in the
circumstances of its own abusive conduct.
[32]
Had the plaintiff notified that it would
seek costs on a punitive scale I would have been inclined to grant
them. As it is, there
was no such notification and neither did I ask
to be addressed on why punitive costs should not be granted.
[33]
Accordingly, albeit reluctantly I will
grant costs on a party and party scale.
Order
[34]
In all the circumstances I grant the
following order:
[1]
The judgment of Molahlehi J handed down on
2 August 2022 is rescinded.
[2]
The respondent is to pay the costs of the
application
___________________________
D FISHER
JUDGE OF THE HIGH
COURT
JOHANNESBURG
Delivered: This
Judgment was handed down electronically by circulation to the
parties/their legal representatives by email and by
uploading to the
electronic file on Case Lines. The date of hand-down is deemed to be
13 December 2023.
Heard:
13 November 2023
Delivered:
13 December 2023
APPEARANCES:
For
the applicant:
Adv
Tshegofatso Kgomo.
Instructed
by:
Andraos &
Hatchett Attorneys.
For
the respondent:
Adv.
Xolani Mofokeng.
Instructed
by:
KM Mmuoe Attorneys.
[1]
Group
Five Building Ltd v Government of the Republic of South Africa
(Minister of Public Works and Land Affairs)
[1993] ZASCA 4
;
1993
(2) SA 593
(A) at 602 I – 603 J
[2]
Constantara
v BCE Foodservice Equipment (Pty) Ltd
2007(6)
SA 338 (SCA) para 31.
[3]
Capitec
Bank Ltd v Mangena and another
(2021
/28660) [2023]
ZAGPJHC
225 (16 March 2023) at para 5.
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