Case Law[2023] ZAGPJHC 1464South Africa
Fernridge Office Park(Pty) Ltd v Honey and Another (2020/5184) [2023] ZAGPJHC 1464 (18 December 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
18 December 2023
Headnotes
out that the Company would pay its outstanding indebtedness, failing which, the First Defendant would personally execute a deed of suretyship. The Particulars do not disclose how or when such holding out took place.
Judgment
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## Fernridge Office Park(Pty) Ltd v Honey and Another (2020/5184) [2023] ZAGPJHC 1464 (18 December 2023)
Fernridge Office Park(Pty) Ltd v Honey and Another (2020/5184) [2023] ZAGPJHC 1464 (18 December 2023)
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sino date 18 December 2023
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
(GAUTENG DIVISION,
JOHANNESBURG)
Case No: 2020/5184
1.
REPORTABLE: NO
2.
OF INTEREST TO OTHER JUDGES: NO
3.
REVISED: YES/NO
DATE: 18 December 2023
IN THE MATTER BETWEEN:
FERNRIDGE OFFICE PARK
PLAINTIFF
(PTY) LTD
AND
ANDREW HONEY
FIRST
DEFENDANT
JUSTINE NICOLE
HONEY
SECOND DEFENDANT
In Re
ANDREW
HONEY
FIRST
APPLICANT
JUSTINE NICOLE
HONEY
SECOND APPLICANT
AND
FERNRIDGE OFFICE PARK
RESPONDENT
(PTY) LTD
JUDGMENT
SIWENDU
J
[1]
The applicants seek the court’s leave to amend exceptions
delivered against the particulars of claim
by the respondent. The
application raises questions about whether the exceptions are capable
of amendment, the modalities thereof
and, when such an amendment can
be made.
[2]
The main action in which the exceptions are raised was instituted by
Fernridge (Pty) Ltd (Fernridge), as the
plaintiff. It is the
respondent in this application. Mr Andrew Honey (Mr Honey) was the
first defendant and Ms Justine Nicole Honey
(Ms Honey), the second
defendant (the defendants). The defendants are the applicants in the
application. Mr Honey passed away after
the matter was heard during
the preparation of the judgment. He will be substituted by the
executor of his estate in due course.
[3]
Fernridge alleged that it concluded a commercial lease agreement (the
lease) of the premises at Block 5 First
Floor, Fernridge Office Park,
5 Hunter Avenue, Ferndale with Entrepreneur Media SA (Pty) Ltd (the
company). During negotiations,
the company was represented by Mr
Honey. The lease made provision for: (a) basic rental, (b) storage,
(c) parking, for a five-
year period, commencing on 1 April 2016,
terminating on 31 March 2021. Fernridge claims that the company
breached terms of the
lease by non- payment, thereafter, abandoned
the premises in August 2019. The company left its goods stored at the
leased premises.
It went into voluntary liquidation in November 2019.
[4]
On 17 February 2020, Fernridge instituted the action personally
against the defendants. It sought the payment
of (a) the arrear
rentals and other charges in the sum of R1 744 532.30 up and until 31
August 2019; (b) the current and prospective
damages in respect of
the loss of rentals, the payment of ancillary charges in the sum of R
847 470.60 from 1 September 2019 up
to 29 February 2020, and (c)
damages allegedly suffered consequent upon the breach of the lease in
the sum of R200522.75 (inclusive
of VAT).
The
Particulars
[5]
Fernridge premised its claim on various causes of action, which
included inter alia, false representation,
recklessness, and
negligence and on an intention to defraud. It alleged that the
defendants:
(a)
‘wrongfully and unlawfully and in breach of the agreement of
lease, abandoned the premises in August
2019.’ By leaving goods
at the premises and thereafter going into voluntary liquidation, they
precluded Fernridge from selling
the goods and mitigating its losses.
(b)
as a director of Entrepreneur Media SA (Pty) Ltd, Mr Honey ‘lulled
the Plaintiff into a false sense
of security that the company was
able to pay its obligations arising from the terms of the agreement
of lease, would sign an acknowledgment
of debt in favour of the
Plaintiff and that he would personally execute a suretyship agreement
in favour of the Plaintiff.’
(c)
the defendants were aware that the company had been trading in
insolvent circumstances. They ‘nevertheless sought
recklessly
and/or fraudulently to deceive the Plaintiffs representatives by
holding out that the Company would pay its outstanding
indebtedness
failing which, the First Defendant would personally execute a deed of
suretyship, which he astutely failed to do.’
[6]
Fernridge also sought an alternative order:
(a)
declaring the defendants personally responsible ‘without any
limitation of liability’, for the debt of Entrepreneur
Media SA
(Pty) Ltd in terms of Section 424 of the Companies Act, 61 of 1973
(the old Act).
(b)
As a second alternative, it claimed that the defendants were guilty
of an offence in terms of Section 214(1)(c) read with
Section 22(1)
of the Companies Act, 71 of 2008 (the new Act). They were knowingly,
a party to the recklessly and/or gross negligence
carrying on of the
business of the Company and/or carried the business of the Company
with the intention to defraud the Plaintiff
and/or was trading under
insolvent circumstances
.
In the premises, the First and/or
Second Defendants are therefore liable to the Plaintiff in the amount
of the said loss in terms
of Section 218 (2) of the new Act.
The
Joint Notice
[7]
On 17 April 2020, the defendants delivered a joint notice being a
twofold attack of the particulars of claim.
The first ground for
complaint, brought as Part A, was that the pleadings lack the
averments necessary to disclose and/or sustain
a valid cause of
action in terms of Rule 23 (1)
(a).
They stated broadly that:
(a)
Clause 10.2.3 of the General Terms and Conditions of Lease provided
that neither the Plaintiff nor the Company would be
bound by any
representation or warranty not expressly recorded in the lease
agreement.
(b)
The Particulars fail to plead the averments necessary to sustain a
cause of action for fraud or any representation or
act performed by
Mr Honey to sustain a cause of action against Ms Honey [ the second
defendant]
(c)
In the total indebtedness of R 2 592 068.90, being arrears rental and
ancillary charges and loss of rental and ancillary charges,
the
company failed to allege that it fulfilled its reciprocal duties
under the lease agreement, had failed to disclose a valid
cause of
action, insofar as the Plaintiff's cause of action relies upon its
claim for arrear rental and ancillary charges, totalling
R 1 744
532.30.
(d)
The Plaintiff has failed to disclose a valid cause of action for
holding over damages.
(e)
The offence in terms of Section 214(1)(c) read with
Section 22(1)
of
the
Companies Act, 2008
relied upon in the particulars is predicated
upon "an act or omission by a company calculated to defraud a
creditor (...)
or with another fraudulent purpose". The
particulars are not based on plea of actual conduct and/or omission
by the company
to defraud the creditor.
[8]
The defendants gave Fernridge 5 days to cure the complaint. It also
sought an order setting aside the particulars
and for Fernridge to
pay the costs.
[9]
The second ground, brought as Part B was that the pleadings were
vague and embarrassing. The defendants contended
that:
(a)
The Particulars do not disclose how or when the First Defendant
lulled the Plaintiff into a false sense of security.
(b)
9.4. Paragraph 11 of the Particulars allege that the Defendants
(acting in their capacities as directors) held out that
the Company
would pay its outstanding indebtedness, failing which, the First
Defendant would personally execute a deed of suretyship.
The
Particulars do not disclose how or when such holding out took place.
(c)
10.2. It is not possible for a party to "recklessly deceive"
another party, in the context of the Particulars deceit
(as alleged)
requires intention, and recklessness in terms of the Act is conduct
performed negligently, viz. without intention.
(d)
The particulars do not set out how the amount of indebtedness is
calculated or arrived at rendering it difficult for the
plaintiff to
assess the quantum.
The
amendment
[10]
The first amendment sought is in respect of the notice delivered in
April 2020. The defendants seek the deletion of the
following:
‘
WHEREFORE
the Defendants pray
that:
A.
The Plaintiff’s
Particulars of Claim be set aside.
B.
The Plaintiff be
afforded the period of five (5) days to deliver amended Particulars
of Claim, failing which the action shall be
deemed to have lapsed;
C.
The Plaintiff be
ordered to pay the costs of the exception; and
D.
Further and all
alternative relief.’
[11]
The second amendment relates to Part A. The defendants seek to
introduce four additional exceptions after paragraph 5.5
as follows:
‘
6.
Sixth Exception - P
laintiff's
action reliant upon section 424 of the repealed Companies Act 61 of
1973.
6.1
In paragraphs 12 to 13.2 of the particulars of claim the plaintiff
lays the foundation for the defendants’
liability upon section
424 of the Companies Act 61 of 1973 (“the Old Companies Act”)
6.2
The Old Companies Act has been repealed by the Companies Act 71 of
2008 (the new
Companies Act)
6.3
Chapter
14 of the old
Companies Act continues
to apply only with
respect to the winding up and liquidation of companies.
6.4
The plaintiffs claim in the current action is not for the winding up
all liquidation of the company and accordingly
section 424 of the Old
Companies Act does
not apply.
7.
Seventh Exception - No facts pleaded to underpin conclusions of
law and thus no liability under
section 424
of the Old
Companies Act
or
section 218 of the New
Companies Act.
7.1
In
paragraph 14.1 of the particulars of claim the plaintiff alleges
that the company carried on its business recklessly and/or with
gross
negligence and/or with the intention to defraud the plaintiff and/or
it was trading under insolvent circumstances.
7.2
The above are all conclusions of law and not allegations of fact -the
plaintiff has not alleged conduct on the part
of the Company from
which the conclusions can be drawn.
7.3
In relation to the plaintiff’s allegation of fraud, the
plaintiff has not pleaded:
7.3.1
when any purported fraud was committed;
7.3.2
where the purported fraud was committed;
7.3.3
the nature of the purported fraud;
7.3.4
the difference between the purported fraud committed by the first
defendant this is that purportedly committed by the second
defendant;
and
7.3.5
how the purported fraud by the first defendant and all the second
defendant caused the plaintiff harm.
7.4
As such the plaintiff has not made out a case for the
liability of the defendants under
section 424
of the old
Companies
Act or
section 218
of the new
Companies Act
8.
Eight
exception - No special factual relationship in support of
reliance upon
section 218
of the new
Companies Act>
8.
1
The
plaintiff did not
plead any special factual relationship between it and the first and
or second defendant.
8.2
As such, the plaintiff has not pleaded anything that suggests the
defendants owed it any special duty to do or refrain
from doing
anything and/or that the plaintiff had any rights or legal interests
to assert against the defendants.
8.3
Accordingly, the plaintiff has not pleaded facts from which it could
be said that the defendants have acted wrongfully
vis -a vis the
plaintiff.
8.4
In the premises, the plaintiff has not made out a case against either
of the defendants under section 218 of the
New
Companies Act.
9.
Ninth
Exception -no causal link between any alleged conduct by the
defendants to any harm suffered by the plaintiff in support of the
latter's reliance upon
section 218
of the new
Companies Act.
9.
1
T
he plaintiff did not
plead any causal link between any alleged conduct on the part of the
defendants and any harm purportedly suffered
by the plaintiff.
9.2
Accordingly, the plaintiff has not made out a case against either of
the defendants under
section 218
often New
Companies Act.
Conclusion
10.
In the circumstances the plaintiff’s particulars of claim lack
averments to sustain a cause of action.
WHEREFORE
the defendant prays that:
i.
the
plaintiff’s particulars are struck out;
ii.
the
plaintiff is ordered to pay the costs of this exception;
iii.
the
plaintiff is granted leave, if so advised to amend its particulars of
claim by notice of amendment delivered within 10 days
of the date of
such order.’
[12]
The third amendment is in respect of Part B, dealing with the vague
and embarrassing complaint. They seek a (a) deletion
of paragraph 10
and its subparagraphs, (b) renumbering paragraph
s 6
up to including
paragraph 9, to be paragraphs 11 to 14 and, for those paragraphs to
renumbered according to the new numbering and
the insertion of a new
paragraph 14.6. The amendment sought is as follows:
’
15
Fifth Vague and Embarrassing
Complaint -
breach
of the lease agreement leading to a claim of R 1 744 532.
30 not identified.
15.1
In paragraph 6.6 of the particulars of claim the plaintiff alleges
that “
as at the date of the aforesaid breach
the company
remained indebted to the plaintiff in respect of the area and other
ancillary charges in the sum of R 1 744 532.30
up until 31
August 2019” however:
15.2.
The plaintiff does not identify what breach it is referring to nor
any date prior to the date of August 2019 upon which
it is supposedly
occurred.
15.3
in paragraphs 6.1 to 6.5 of the particulars of claim the plaintiff
makes a number of allegations from which the
reader must discern a
bridge however no discernable breach is pleaded –
15.3.1
insofar as the bridge relied upon is made to be non-payment:
15.3.1.1
in paragraph 6.2 the plaintiff does not plead which “financial
obligations” the company “consistently
failed to meet”.
15.3.1.2
in paragraph 6.6 the plaintiff does not plead what rentals were
allegedly not paid and what “other ancillary
charges” it
is referring to;
15.3.2
in paragraph 6.3 the plaintiff alleges that the first
defendant lulled it into a false sense of security and said
he would
provide the plaintiff with an acknowledgement of debt and personal
surety - none of which constitute a breach by the Company;
15.3.3
in paragraph 6.4 the plaintiff alleges that the first defendant
“wrongfully refused and/or neglected to
sign an acknowledgment
of debt” as he undertook to do - which does not constitute a
breach
by the Company.
15.3.4
in paragraph 6.5 the plaintiff alleges that the company wrongfully
and unlawfully abandoned the premises however
–
15.3.4.1
the plaintiff has not pleaded that the
plaintiff
was obliged to stay in the premises;
15.3.4.2
furthermore, the plaintiff’s pleadings are
contradictory because in the same breath as alleging that
the Company
abandoned the premises it also alleges that the company kept
installed its goods on the premises (which suggests the
company was
an occupation);
15.3.5
in paragraph 6.5 the plaintiff furthermore alleges that the Company’s
seeking and obtaining its own winding-
up constituted a breach
however in paragraph 9 of the particulars of claim the plaintiff
alleges that this happened on 13th November
2019 (which does not its
support its case in paragraph 6.6 for a breach as at 31 August 2019);
and
15.3.6
In paragraph 6.5 the plaintiff alleges that it was precluded from
selling the company's office furniture without
the company's consent
however this does not constitute the breach of the lease
agreement-nothing gave the plaintiff the right to
sell the company's
office furniture without its consent.
15.4.
The defendants cannot discern what breach the plaintiff relies upon
in support of its cause of action.
16.
Sixth Vague and Embarrassing Complaint – Breach of lease of
agreement leading to claim of R 847 470.60 not identified
16.1
in paragraph 6.7 of the particulars of claim the plaintiff alleges
that it has “and will suffer damages”
for loss of rentals
and ancillary charges in the sum of R 847 470.60 for the period
1 September 2019 to 29 February 2020 however:
16.1.1
the plaintiff has not pleaded a cancellation of the lease;
16.1.2.
The plaintiff has not pleaded why it was purportedly entitled to look
for a substitute tenant over that period; and
16.1.3
The plaintiff furthermore pleaded that it was able to place a
substitute tenant in the premises over that period.
16.2
In the circumstances the defendants cannot descend or not basis the
plaintiff claims damages over such period.
17
Seventh Vague and Embarrassing Complaint – Breach of the lease
agreement leading to claim of R 200 522.75 not identified
17.1
In paragraph seven of the particulars of claim the plaintiff alleges
that as a direct result of the breach of the lease
agreement it
suffered damages set out in POC2 however:
17.1.1
as per points 1 and 2 above, the plaintiff has not identified a
breach;
17.1.2-
POC2 appears to relate to work done to and in relation to the
premises however the plaintiff has not alleged that the company
was
obliged to perform any of the items/work referred to in POC 2 and why
it would be obliged to do so; and
17.2
insofar as the Company was obligated to perform any work set out in
POC 2 in terms of clause 4.5.8 of the lease
agreement (as well as
paragraph 5.10 of the particulars of claim) the plaintiff was of
first of obligated to request the company
to do so before it was
entitled to effect any such work itself and the plaintiff has not
pleaded that it did so.
18.
Eight Vague and Embarrassing Complaint Broad allegations of conduct
under
s214
(1)(c) and
22
of the
Companies Act 71 of 2008
contradictory
18.1
In paragraphs 11 and 14.1 of the particulars of claim
the plaintiff alleges the business of the Company was carried
on
recklessly, grossly negligently with the intention to defraud.
18.2
However, the reckless carrying on of business and gross negligence
cannot at the same time be fraud and vice versa
as the respective
requirements of one extinguished the other, ie if conduct qualifies
as reckless and/ or grossly negligent it
cannot at the same time
constitute fraud.
18.3
The plaintiff has not pleaded conduct from which the defendants can
determine whether the plaintiff is attempting
to make out a case for
one or the other, let alone has the plaintiff pleaded alternative
conduct that could support both sets of
claims.
Conclusion
19
In the circumstances the defendants cannot determine the
basis for the plaintiff's claim and will be prejudiced
if they were
compelled to plead thereto.”
Analysis
[13]
The first issue is whether an exception is capable of amendment.
While a notice is not a pleading
[1]
,
the exception is regarded as one once it is delivered. That view
follows a long line of authorities to this effect.
[2]
The defendants rely on the remarks in
Barclays
National Bank Ltd v Thompson
[3]
(Barclays)
where
the Court stated, that ‘an exception is a pleading and, if the
excipient wished to argue some exception other than that
taken, he
should have applied to amend the exception.’
[14]
The defendants source their entitlement to the amendment from
Rule
28(1)
and (10) which in the relevant parts provides that:
‘
(1)
Any party desiring to amend
any pleading or document
other
than a sworn statement, filed in connection with
any proceedings
,
shall notify all other parties of his intention to amend and shall
furnish particulars of the amendment.
…
..
(10)
The court may, notwithstanding anything to the contrary in this rule,
at
any stage before judgment
grant leave to amend any pleading
or document on such other terms as to costs or other matters as it
deems fit.’
[15]
The text of the
Rule 28(1)
refers to ‘any pleading or document’
and the amendment may be made in relation to ‘any proceedings.’
It
confers a broadly stated right to amend documents and pleadings.
It would be inconsistent with the import of the Rule to suggest
that
a document is capable of amendment, while an exception which is a
pleading, is not. It must follow that as a pleading, an
exception is
capable of amendment, so too is the notice, which qualifies as a
document under the Rule. Fernridge, correctly does
not take issue
with this aspect.
[16]
Turning to the mechanism and period for seeking the amendment,
Fernridge opposed the amendment on grounds of a delay.
It contends
that
Rule 23
(1
)(a)
provides a specific period within which to
bring an exception. The notice to amend was brought 3 years after
delivery of the exception,
and the defendants flagrantly disregarded
the period prescribed by
Rule 23
(1
)(a).
Fernridge contends
further that
Rule 28
which regulates amendments does not permit an
amendment of an exception, therefore,
Rule 23
must take precedent
above
Rule 28.
[17]
Fernridge also contends that the defendants abandoned the exception
by launching a
Rule 35(14)
application. An amendment at this late
stage is
mala fide
and the defendants had no ‘bona fide
intention to proceed with the exception.’ An application for
condonation is necessary,
as the defendants were required to explain
the delay. They merely stated that a new counsel has been appointed,
which is not a
satisfactory explanation.
[18] The argument
that the exception was abandoned cannot be supported.
Rule 35
serves
a different purpose of discovery, inspection, and production of
documents. The notice under
Rule 35
preceded the delivery of the
exception. Even if its pursuit came to naught, that is not a valid
reason to dismiss the amendment
application. Fernridge did not raise
an issue of irregularity in any of the proceedings. Instead, filed
its heads of argument to
force adjudication of the exception, a
further step indicating it recognized that the determination of the
exception stood in the
way of finalising the litigation. Thus, it
accepted that the issue was alive and properly before the Court.
[19]
As to the gateway and period for seeking the amendment, a contrast
between
Rule 28
regulating amendments and
Rule 23
dealing with
exceptions is necessary.
Rule 23
(1) states that:
‘
(1)
Where any pleading is
vague and embarrassing, or lacks averments
which are necessary to sustain an action or defence, as the case may
be, the opposing party may,
within the period allowed for filing
any subsequent pleading
,
deliver an exception thereto and may
apply to the registrar to set it down for hearing within 15 days
after the delivery of such
exception
: Provided that —
(a)
where a party intends to take an exception that a pleading is vague
and embarrassing such party shall, by notice, within 10 days
of
receipt of the pleading, afford the party delivering the pleading, an
opportunity to remove the cause of complaint within 15
days of such
notice; and
(b)
the party excepting shall, within 10
days from the date on which a reply to the notice referred to in
paragraph
(a)
is
received, or within 15 days from which such reply is due, deliver the
exception.’ [ own emphasis]
[20]
Since
Rule 23(1)
(a)
regulates the procedure pertaining to the
‘original exceptions.’ It does not resolve the period and
procedure for amending
an exception. The submissions by Fernridge
that the Court should look solely to
Rule 23
treats the amendment as
if it were the original exception. The consequence is not tenable.
Its effect would be that exceptions
would not be capable of
amendment. That would conflict with the acceptance that an exception
as a pleading.
Rule 28
does apply to this application. Fernridge’s
submission overlooks the import of
Rule 28
(10) which states that an
amendment is feasible and can be made at any stage before judgment.
[21] It is trite
that the
general
rule to an application for an amendment is one of latitude, unless
the amendment is
mala
fide.
[4]
T
he
defendants submit that the right
to
amend the exception at
any
stage
before judgment is unqualified. That view finds support in
Myers
v Abramson (Myers).
[5]
The
Court held that:
‘
This
rule is in the widest possible terms and does not envisage any period
before judgment during which the possibility of making
an application
for amendment is precluded. On the contrary, the use of the word
'any' qualifying the word 'stage' seems to specifically
exclude the
possibility of there being some 'closed' period during which, before
judgment, such applications cannot be brought.
The word 'any', as was
held in
Rex
v. Hugo,
1926 AD 268
at p. 271, is 'upon
the face of it a word of wide and unqualified generality. It may be
restricted by the subject matter or the
context, but
prima
facie
it is unlimited'. There is nothing in the context here
to restrict the meaning of the word, and I think that the rule allows
the Court to make an amendment if the circumstances warrant it even
during the hearing of an application for absolution. Applications
for
an amendment have been entertained and allowed even after the cases
of both plaintiff and defendant have been closed and in
certain cases
even argued.
…
.
It
may well be that to allow the interposition of an application for an
amendment during the hearing of an application for absolution
may
deprive the party applying for absolution of a tactical advantage he
might otherwise enjoy over his opponent, but I do not
think that this
can outweigh the major concern of the Court to secure the expeditious
and most direct determination of the real
dispute between the
parties.’
[22] The defendants
do not dispute that the amendment was raised approximately 3 years
after the delivery of the exception.
Their
explanation for the delay is that due financial constraints, they did
not ‘push the
Rule 35
(12) and (14) application or rest of the
litigation.’ They waited for the plaintiff to ‘drive the
litigation.’
They instructed new counsel who advised them to
amend.
[23]
Fernridge on the other hand delivered its heads of argument in the
exception on 10 December 2020. On about 15 December
2020, the
defendants launched the
Rule 35
application. Fernridge delivered its
answering affidavit on 27 January 2021. The defendants delivered
their reply on 12 February
2021. None of the parties progressed the
issue. Fernridge delivered its heads of argument in respect of the
application to compel
on 11 May 2022, approximately a year after the
defendant’s reply.
[24]
The latitude granted to a court dealing with an amendment is
constrained by ‘prejudice to the plaintiff which cannot
be
cured by an adjournment and an appropriate order as to costs.’
[6]
I
am equally minded that, ‘an amendment cannot be granted for the
mere asking thereof: that some explanation must be offered
therefor:
that this explanation must be in the founding affidavit filed in
support of the amendment application: that if the amendment
is not
sought timeously, some reason must be given for the delay: that- that
party seeking the amendment must show
prima
facie
that
the amendment has something deserving of consideration: …that
the amendment should not be refused simply to punish
the applicant
for neglect and that mere loss of time is no reason, in itself, for
refusing the application.’
[7]
[25]
The explanation offered by the defendants cannot be viewed
subjectively, but in the context of the litigation. It is
not out of
the ordinary or implausible for a defendant to adopt the stance that
it will wait for the plaintiff to advance the litigation.
Fernridge
d
id
not follow through with the litigation doggedly either, accounting
for half of the delay. The cases on which Fernridge relies
do not
find application in the present matter. They apply to instances where
there has been an objection based on an irregularity.
[8]
It did not raise such an issue in this case. Given the stage of the
proceedings, and that new dates for the determination of the
exception must still be sought, there can be no prejudice to
Fernridge if the amendment is allowed.
[26] What merits
observation is that the defendants cast the right to the amendment at
any stage before judgment too broadly.
Their argument does not
account for the interlocutory nature of an exception. An exception
implicates the issues on which the
lis
will be adjudicated.
That
restricts the context for determining the
amendment.
It follows that it must be determined before the
judgment in the main action.
[27] It is apparent
from
Rule 28
that t
he
practicalities
of effecting an amendment to an exception are not clear cut. In my
view, the reference to an amendment ‘before
judgment’ in
Rule 28
(10) must be construed in context of the present case, to
mean, the judgment in the exception and not the main judgment.
Consequently,
the practical effects of such an amendment falls within
the ambit of the inherent power of the court to regulate its
procedure
and affairs.
[9]
[28] I have
considered the substance of the proposed amendments. The
consideration is not to make definitive findings of the
exception,
but to merely assess whether they prima facie, they raise something
worthy of consideration.
The error in the
notice is patent and justifies the deletion sought. The amendment
proposed accords with
Rule 23
(1) and affords the plaintiff the
correct period to remedy the alleged defects if it so wishes.
[29]
The
addition of further grounds of exception in Part A raise important
questions of law. The additions concern the claim for the
personal
liability in terms of section 424 old Act. They also concern the
interplay and application of the provisions of the old
Act with
section 218 of the new Act to the claim as currently framed by
Fernridge. The factual foundation to sustain the claims
in terms of
section 218 of the new Act as pleaded and the claim for the personal
liability of the defendants is not set out.
[30]
In so far as the of Part B, dealing with the vague and embarrassing
complaint, the amendments sought serve the purpose
envisaged by the
Rule 23. Fernridge can cure its particulars if it so wishes and
resolve the conflict alleged between the particulars
and annexures
relied upon to sustain its cause of action. In my view, t
here
is
prima facie
something deserving of
consideration by a court in the proposed amendments.
The efficacy of the exception procedure to avoid the leading of
unnecessary evidence will be advanced.
T
here
is no discernible prejudice or injustice to Fernridge if the
amendments are granted. The period in Rule 23 to cure the defect
should Fernridge wish to do so must be applied.
[31]
Although the issues raised in the amendment are deserving, and the
defendants are successful, the way they dealt with
the exception
merits that they should bear the costs of this application.
[32]
In the result, the following order is made:
a.
The amendments in paragraphs 10, 11 and 12 of
the judgment are granted.
b.
The plaintiff has 10 days from the date of
the order to amend its particulars of claim if so inclined.
c.
The defendants shall, within 15 days from the
date which such reply is due, deliver the exception.
d. Either
party may thereafter approach the Registrar for a date for the
determination of the exception
thereof.
e.
The defendants are ordered to pay the costs
of the application.
NTY SIWENDU
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
JOHANNESBURG
This
judgment was handed down electronically by circulation to the
parties’ legal representatives via email, and release to
SAFLII. The date and time for hand down is deemed to be 18 December
2023 at 10: am.
Date of hearing: 17
October 2023
Date delivered: 18
December 2023
Appearances
For the
Applicants/Defendants: Advocate
W Strobl
Instructed
by: Andrew
Garrant Inc
For the
Respondent/Plaintiff: Advocate
N Segal
Instructed by:
Waks
Attorneys
[1]
De
Bruyn v Mile Investment 307 (Pty) Ltd & others
[2017]
ZAGPPHC 286 paras 25-26
[2]
Jowell
v Bramwell-Jones
1998
(1) SA 836 (W).
[3]
1989
(1) SA 547.
[4]
Moolman
v Estate Moolman and Another
,
1927 CPD 27
at 29.
[5]
1951 (3) SA 438
(C) at 455E – 446G:
[6]
Kali v
Incorporated General Insurance Ltd
1976 (2) SA 179 (D).
[7]
Vinpro
NPC v President of the Republic of South Africa
(1741/2021)
[2021] ZAWCHC 261
(3 December 2021) para 25.
[8]
Hill
NO. and Another v Brown
2022
JDR 0238 (WCC);
Van
Den Heever NO v Potgieter NO and Others
2022 (6) SA 315
(FB) para 19 —26.
[9]
Eke v
Parson
s
2016 (3) SA 37
(CC).
sino noindex
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