Case Law[2022] ZAGPJHC 449South Africa
Prime Trade Finance (RF) (PTY) Ltd v Delport and Another (10839/2019) [2022] ZAGPJHC 449 (28 June 2022)
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
>>
2022
>>
[2022] ZAGPJHC 449
|
Noteup
|
LawCite
sino index
## Prime Trade Finance (RF) (PTY) Ltd v Delport and Another (10839/2019) [2022] ZAGPJHC 449 (28 June 2022)
Prime Trade Finance (RF) (PTY) Ltd v Delport and Another (10839/2019) [2022] ZAGPJHC 449 (28 June 2022)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAGPJHC/Data/2022_449.html
sino date 28 June 2022
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA,
GAUTENG
DIVISION, JOHANNESBURG
Case
Number:
10839/2019
REPORTABLE:
NO
OF
INTEREST TO OTHER JUDGES: NO
REVISED:
NO
28
June 2022
In the matter between:
PRIME
TRADE FINANCE (RF) (PTY) LTD
Plaintiff
And
DELPORT,
GERHARDUS MARTHINUS PETRUS
Defendant
SCOTT
JASON GUSH
Third Party
JUDGMENT
SIWENDU
J
Introduction
[1]
The court is asked to adjudicate three interlocutory applications
arising from action proceedings
instituted by the plaintiff against
the defendant.
[2]
The plaintiff, Prime Trade Finance (RF) (Pty) Ltd, (Prime Trade),
operates as a trade financier.
Its business is to provide loan
finances to clients who require trade finance for their business
operations. It operates from 1678
Taunton Crescent, Dainfern,
Johannesburg.
[3]
The defendant is Gerhardus Marthinus Petrus Delport, (Delport). Prime
Trade alleges that it appointed
Delport as its director in April
2018. Simultaneously with the directorship, it employed Delport as a
commissioned agent in terms
of a partly written and partly oral
agreement. The terms of the appointment agreement were to be reviewed
after a period of 6 (six)
months.
[4]
Prime Trade seeks to recover a payment of R4 369 630.22 plus interest
on R4 369 630.22,
a tempore morae
, to date of final payment
from Delport. The particulars of claim state that the claim arose
from a trade finance transaction and
funding made by Prime Trade to
CC Trade 262 (Pty) Ltd t/a Alpine Butchery (Alpine), a client
introduced by Delport to Prime Trade.
[5]
The sequence of the prosecution of the
action has relevance.
[6]
Prime Trade pleaded its cause of action in two particulars of claim.
In the original particulars,
issued in March 2019, it based its claim
against Delport on a breach of the appointment agreement. Delport
defended the action
and filed his notice of intention to defend in
April 2019.
[7]
On 14 May 2019, Delport through his former attorneys of record,
Hajibey-Bhyat Inc, called for
discovery of the agreement relied on in
terms of Rule 35(12) of the Uniform Rules of Court. On 11 July 2019,
he delivered a notice
of exception in terms of rule 23(1) of the
Uniform Rules. On 13 August 2019 he delivered an exception to the
claim against him.
Nothing transpired in the litigation for
approximately 10 months.
[8]
In the intervening period, Prime Trade appointed new attorneys, RHK
Attorneys, who are the current
attorneys of record. On 4 June 2020,
they delivered a notice of substitution on Delport’s then
attorneys of record together
with a Notice of intention to amend the
particulars of claim. On 29 June 2020, Delport’s attorney of
record withdrew. He
appointed new attorneys; Hajibey-Bhyat Inc were
substituted by Douglas Smart Attorneys on 1 July 2020 who are the
current attorneys
of record.
[9]
Prime Trade’s amended particulars of claim are dated 10 July
2020. On 14 August 2020, Prime
Trade delivered a second Notice of
Intention to amend its particulars of claim on Delport’s new
attorneys. Delport does not
oppose the amendment.
[11]
On 15 September 2020, Delport’s new attorneys called for
discovery in terms of Rule 35(11)(12) and
(14) once more. He
delivered his plea to the amended particulars on 10 March 2021.
Pleadings closed in the main action on 2 April
2021. On 10 June 2021,
Delport served a Third Party Notice (the Notice) on Mr Scott Jason
Gush (Gush), a director at Prime Trade.
Gush objects to the late
filing of the Notice. In addition to objecting to the Notice, Gush in
turn delivered an exception to the
Annexure attached to the Notice by
Delport.
[12]
On 6 September 2021, Delport delivered his application for leave of
the court to serve the Third Party Notice.
On 10 September 2021, he
delivered an amendment to the annexure to the Third Party Notice.
Even though he delivered the opposition
to the Notice on 23 September
2021, Gush delivered his answering affidavit out of time, on 2
November 2021, two months after close
of pleadings. Gush, as the
prospective third party, seeks condonation for the late delivery.
[13]
To provide context to the interlocutory issues arising, I first deal
with the cause of action against Delport.
The
cause of action and Delport’s Duties
[14]
The amended particulars of claim, details the material,
alternatively,
tacit terms of the agreement allegedly breached
as well as the duties assigned to Delport. Prime Trade’s cause
of action
against Delport is premised on a breach of common law and
statutory duties it alleges were owed to it.
[15]
Prime Trade asserts that Delport, as a commissioned agent, (1) owed a
duty of care to it (2) had to exercise
professional care (3) had to
discharge his functions with due care, skill and diligence expected
of a commissioned agent in the
financial sector; (4) had to discharge
his functions honestly and in good faith; (5) had to not act
negligently in the performance
of his obligations; and (6) had avoid
any conflict of interests in the exercise of his functions.
[16]
It claims that in his capacity as its representative, Delport was
required,
inter alia, to
:
[16.1]
Source potential clients for Prime Trade for the purposes of
concluding trade finance loan
agreements with them;
[16.2]
Raise funds from potential clients to invest in Prime Trade;
[16.3]
Upon the successful conclusion of any trade finance loan agreement,
Delport would share in
the net revenue derived from the trade finance
loan agreement on an equal basis with Prime Trade after the deduction
of all costs
and expenses associated with the trade finance loan
agreement;
[17]
ln sourcing potential clients, Delport would be obliged to perform a
vetting process and conduct a due diligence
investigation into any
potential client to be introduced, which would involve,
inter
alia:
[17.1]
Meeting with, and explaining the plaintiff's business to potential
clients;
[17.2]
Conducting background checks and credit worthiness assessments of
potential clients;
[17.3]
Conducting a comprehensive review of the potential client's business
operations including,
inter alia
, considering any security
that could be provided by the client for any finance provided;
[18]
Any due diligence investigation was to be carried out prior to:
[18.1]
Prime Trade concluding any trade finance agreement with a proposed
client;
[18.2]
Delport advising Prime Trade to conclude any trade finance agreement
with a proposed client;
[18.3]
Delport advising Prime trade to advance funds in terms of any trade
finance agreement with
a proposed client;
[18.4]
After a due diligence investigation had been conducted, Delport would
present a valid and binding
written trade finance agreement to Prime
Trade for conclusion with the potential client;
[19]
Prime Trade alleges that Delport was grossly negligent in the
performance of his duties as a director and
his duties as a
commissioned agent, in one or more of the following respects:
[19.1]
He failed to conduct a proper risk assessment in respect of a company
known as CC Trade 262
(Pty) Ltd t/a Alpine Butchery ("Alpine")
before recommending it as a client to whom the plaintiff would lend
and advance
financing;
[19.2]
He advised Prime Trade that Alpine had secured a considerable capital
investment from Mr John
Bayly in order to fund capital expansion,
when in fact it had not;
[19.3]
He also misrepresented certain facts.
[20]
Prime Trade claims it would not have:
[20.1]
lent and advanced the sum of R4 168 745.57 to Alpine;
[20.2]
paid a commission to Bayly in the sum of R82 554.85;
[20.3]
paid commissions to Delport in respect of his "services" in
connection with Alpine
in the sum of R115 047.46; and
[20.4]
incurred legal costs in trying to secure the capital sum and the
repayment thereof from Alpine,
presently in the amount of R32 886.30.
[21]
It alleges that by virtue of his appointment as a director of Prime
Trade, Delport owed Prime Trade statutory
duties as contemplated in
sections 76(2)(a)(ii), s 76(3)(a), (b), (c) and s 76(5) of the
Companies Act 71 of 2008 (‘the Act').
[22]
As a further alternative to the claim of a breach of statutory
duties, Prime Trade sues Delport based on
a delictual liability based
on a misrepresentation. Prime Trade also, as Claim D, seeks to have
Delport declared a delinquent director
under the Act.
[23]
Delport does not deny the existence of the appointment agreement but
alleges that the parties recorded and
supplemented the appointment
agreement with a written agreement dated 10 May 2018. He denies that
he was at any time “in
fact a director” at Prime Trade as
defined in section 1 of the Act, even though he was registered as
such with the Companies
and Intellectual Property’s Commission
(CIPC).
[24]
Delport says he referred Alpine to Prime Trade without making any
recommendations. He presented Prime Trade
with information to show
that Alpine was trading at a loss and was experiencing cash flow
problems. I need not deal with all the
defences raised at this stage.
[25]
Importantly, Delport seeks to join Gush as a third party. He seeks a
contribution and/or an indemnity from
Gush, as such, in the event
that he is held liable to Prime Trade. This is, based on the fact
that Gush represented Prime Trade
in respect of the agreements
forming the subject of the action against him. He asserts that the
obligations placed on him were
assumed by Gush.
[26]
I understand, from the papers, that at some point, on or about 12
September 2021, Gush fled the country because
of alleged threats to
his life. Certain of his business dealings soured. He could not
commission his answering affidavit which
was due on 5 October 2021.
He filed a commissioned answer on 2 November 2021.
[27]
Part of the controversy is that Delport complains that Gush’s
answering affidavit refers to correspondence
dated 7 December 2020,
between Prime Trade’s attorneys, and his (Delport’s)
attorneys. As a result, on 16 November
2021, simultaneously with the
delivery of his replying affidavit, Delport launched an application
to strike out the inclusion of
the email on the basis that it is
"without prejudice"
correspondence, and is
inadmissible. He seeks to strike out all further references to the
email in Gush’s answering affidavit.
Interlocutory
Applications
[28]
I have considered the application for condonation in respect of the
late filing of the authenticated answering
affidavit. Good cause is
shown and I can see no prejudice to Delport as a result because the
unauthenticated affidavit was delivered
as required. In addition,
Delport does not oppose the condonation application (condonation
application).
[29]
In summary, what remains are the following interlocutory
applications:
[29.1]
Delport’s application for the court’s leave to deliver
the Notice as amended by
the third-party notice dated 10 September
2021 in terms of Rule 13(3)(b) (the Rule 13(3)(b) application).
[29.2]
Delport’s application to strike out certain evidential material
from the answering affidavit
by Gush. (the striking out application).
[29.3]
Gush’s Exception to Delport’s Notice (the exception
application).
It
seems prudent to deal with the striking out application first before
dealing with the Rule 13(3)(b) application. It influences
the
determination of whether to grant leave or not.
Striking
out application
[30]
It is common cause that between December 2020 and January 2021, the
parties unsuccessfully explored a settlement
of the dispute. Delport
says the letter dated 7 December 2020 relates to the
"without
prejudice
" correspondence in respect of the settlement
discussions between the parties. It was addressed by his attorneys to
Prime Trade’s
attorneys who now happened to represent Gush.
[31]
As I understand the argument, the reason Gush included this letter in
his answering affidavit is to show
that Delport, (who now applies for
leave of the court to permit the late delivery of the Notice in terms
of the Rule 13(3)(b) application)
has not been fully candid with the
court, and is not truthful and
bona fide
. It is said that if
Delport's explanation is incomplete, misleading, or otherwise
mala
fide
, then the court will have reason to refuse the Rule 13(3)(b)
application.
[32]
It is said that on 7 December 2020, some three months prior to when
Delport says he was first advised to
consider joining Gush as a third
party, his attorneys explicitly made a threat to join Gush as a third
party to the litigation.
The argument is that the contents show that
Delport’s attorneys:
[32.1]
had already been instructed to institute third party proceedings
against Gush.
[32.2]
had already been appraised of his procedural right, and
[32.3]
had already then discussed the issue of joining Gush as a third
party.
[33]
A curious point advanced by Ms Larney (for Delport) is that even
though Gush acted as a representative of
Prime Trade both in respect
of the agreement(s) in dispute and the ensuing litigation, Gush as a
“third-party” to the
communication cannot use
correspondence which was not addressed to him (either directly or
through his/her agent). He cannot give
evidence, or rely on its
contents for his own benefit. Delport has not waived the privilege.
[34]
Mr Fasser (for Prime Trade and Gush) accepts the general rule which
is based on public policy considerations
that: communication made in
the course of
bona
fide
settlement negotiations is privileged and cannot be admitted as
evidence without the consent of both parties. The point of departure
in Mr Fasser’s argument is premised on the court’s
decision in
Naidoo
v Marine & Trade Insurance Co Ltd
[1]
where the court clarifies and points out that:
“…
the
purpose for which a party desires to adduce “
without
prejudice
” communication is all important, for in
exceptional circumstances, it may well be admitted in evidence
despite the general
rule in order to prove, for example, that it
contains a threat, an act of insolvency or possibly other matters
that would be contrary
to public policy to protect from being
admissible.”
[35]
Mr Fasser argues that even if it was a
bona
fide
attempt to settle the litigation, the letter contains a threat of
litigation and thus falls within the ambit of the exceptional
circumstances alluded to in
Naidoo
above.
South African law accepts the proposition that if
'without
prejudice'
correspondence contains a threat of legal action should an offer
contained within it be refused, the correspondence can be admitted
into evidence for the limited purpose of proving the threat.
[2]
[36]
This threat of litigation against the third party is highly relevant
since it forms part of a central issue
presently before the court,
namely, (i) the issue of Delport’s
bona fides
, and (ii)
whether he has provided a candid explanation of his default in
delivering the third party Notice sufficient to justify
the exercise
of the court's discretion in his favour.
[37]
Ms Larney based her contention on the view that the rights to the
correspondence vests in the parties to
the litigation only. She
contends that a third party who overhears a "
without
prejudice
" conversation cannot give evidence of its
contents. Gush is not entitled to waive a prejudice which did not
attach to him.
On a close discernment, the submission is not entirely
correct.
[38]
It is evident that Gush represented Prime Trade throughout the
litigation. He is the business mind of Prime
Trade. Ms Larney accepts
this much. It follows that Gush would have been privy to the letter
in that capacity. The distinguishing
feature however is that the
contents of the letter reached beyond the parties to a threat of the
litigation against Gush in his
personal capacity. It is clear that
its aim was to induce Gush to cause Prime Trade to settle, failing
which, he would be embroiled
in the litigation
personally
. The
threat was directed at him, as an unconnected third party. I agree
with Mr Fasser that it was a threat of further (additional)
civil
litigation, directed against a person who was, at that stage, not yet
a party to the dispute — this brings it within
the ambit of the
exception to the general rule.
[39]
The letter is admissible for this reason and the application to
strike it out, fails.
Rule
13(3)(b) application
[40]
As already alluded to in this application, Delport seeks leave to
serve the third-party Notice, alternatively,
for the court to permit
him to rely on the third party Notice dated 10 June 2021 which was
served after the close of pleadings.
The close of pleadings occurred
on or about 1 April 2021.
[41]
Rule 13(3)(a) requires that a third party Notice be served on the
third party before the close of pleadings
in the action in connection
with which it was issued. Rule 13(3)(b) requires that if a third
party notice is delivered after the
close of pleadings, that may only
be done with leave of the court. I agree that like all rules of
court, the granting of leave
is not a mere formality.
[42]
Delport submits that the delay is not significant and there is no
prejudice to the third-party who is closely
associated with the
plaintiff and represented by the same attorneys. He states that where
his attorneys filed the notice without
first making application in
terms of Uniform Rule 13(3)(b), this was regrettable, but not
unreasonable.
[43]
He claims that he was advised that parties, more often than not, do
not consider pleadings immediately closed
upon the date which the
replication becomes due. The reason for this position is that parties
often effect amendments and join
issues after this date and the
courts are alive to such fact. This is also provided for in the
various situations listed in Uniform
Rule 29(1).
[44]
He states that on 15 March 2021, his attorneys suggested joining Gush
as a third party:
“
This
was the first time the suggestion was made to me, and I was invited
to consider it. I had not had an opportunity to fully consider
the
possibility of pursuing the third-party procedure afforded in rule
13”.
[44]
Due to the intervening holiday period, he only consulted with his
attorneys on 14 April 2021, at which time
it was decided that the
third-party notice would be filed. Counsel provided his comments and
amendments to the third-party Notice
on 17 May 2021. His attorneys
effected further amendments to the third- party Notice the following
day, 18 May 2021, and forwarded
same to him on 19 May 2021, for
consideration and comments;
[45]
However, his wife, and mother-in-law (who currently lives with them),
contracted Covid-19 on about 10 May
2021, and their health only
improved around 21 May 2021. During this period, he was looking after
them and managing the household.
In addition, his business partner
also contracted Covid-19 in May 2021. The obligations placed him
under immense pressure and stress
from trying to look after his
family and at the same time, attend to business matters.
[45]
On 4 June 2021, he suffered a heart attack and was admitted to
hospital.
[46]
Delport complains that Gush has failed to substantiate his reasoning
for objecting to the late delivery without
leave, or how (if at all)
the delay has caused him prejudice, resulting in the objection.
Delport states in his affidavit that
he is advised that a clear case
of prejudice is paramount in these circumstances. Even if the court
were to find his explanation
for the delay insufficient, Gush has not
stated what adverse effect his delay has had on his ability to
address the Notice. He
claims that Gush has evidently had time to
apply himself to the merits of the Notice and to deliver two
exceptions thereto.
[47]
A criticism levelled against Delport is that he has failed to (1)
provide a satisfactory explanation for
his failure, and (2) has not
made out a
prima facie
case against Gush. Ms Larney agrees
that this would be the basis for considering the application.
However, Mr Fasser adds that
a
prima facie
by implication
means a non-excipiable case. I agree.
[48]
Mr Fasser argues that Delport seeks an indulgence from the court, and
this indulgence can be earned only
if there is complete, forthright
and honest disclosure on his part. The contention about prejudice, to
the contrary, is incorrect
as a matter of law. For this, he relies on
the court’s decision in
Wapnick
and Another v Durban City Garage and Others
[3]
where the approach is thus:
“
Whilst
I am not prepared to say that it is a
sine qua
non to the
success of the application that the applicant should make out a prima
facie case on the merits, I do believe it correct
to state that it is
in general required of
such an applicant to furnish a satisfactory
explanation for his failure to give notice before close of pleadings
and to make out
a prima facie case against the person he seeks to sue
by alleging facts which if established at trial would entitle him to
succeed.”
[49]
The first point raised by Delport is that he required time to be
informed of the nature of the case by Prime
Trade against him and the
discovery process contributed to the delay. He says Gush's complaint
of the delay of 2 (two) months in
which he filed the third-party
Notice, which required research and proper consideration, must be
seen in light of his own dilatory
conduct, which is evident from,
inter alia,
his inordinate delay in responding to something as
simple as a Rule 35 notice.
[50]
I have considered the full record of the proceedings. Delport
delivered two discovery notices. The first
one was in May 2019, after
the service of the original summons. The second call for discovery
was in September 2020, after the
delivery of the amended particulars
of claim.
[51]
A close inspection of the discovery notices reveals that the requests
pertained to (1) the written portion
of the agreement allegedly
concluded between the plaintiff and the defendant in and during March
2018, and (2) the documents relating
to the quantum and payments
allegedly made by Prime Trade. Prime Trade responded in September
2020.
[52]
When the above is considered against the plea and Annexure A, which
forms the basis of the Notice for which
he seeks leave, Delport did
not attach any documents to indicate evidence of the interactions
with Gush, other than the appointment
contract and what appears to be
a referral email.
[53]
A close scrutiny of both pleadings reveals that the nature of his
defence (which is essentially a denial
that he made representations
and recommendations regarding Alpine). 7The basis of the Notice being
the personal interactions he
had with Gush. It is clear that
regardless of the form or version of liability against him, the
nature of the defence is not one
substantially dependent on the
discovered documents.
[54]
The second area involves the calamities that befell him when Covid-19
allegedly struck close members of his
family, followed by his heart
attack. The court does not take these claims which are made under
oath lightly, however, regrettably,
none of the facts are confirmed
or independently verified.
[55]
Lastly, when this is viewed together with the letter dated 7 December
2020 referred to above, and the contention
that he had “
lied”
to the court
,
the explanation offered is wholly inadequate
and falls far short of the requirements. Delport had, from 25 August
2020 until 10
March 2021, to consider the plaintiff's particulars of
claim, file a plea and the Notice. The events raised occurred after
this
time. I find that he has mislead the court on the facts and has
not fully accounted for the period of delay. The application must
fail.
Has
he made out a
prima face
case? Is the Notice excipiable?
[56]
This brings me to the question whether Delport had made out a
prima
facie
case against Gush for the purposes of the Rule 13(3)(b)
application. Whether or not Delport has made out a
prima facie
case overlaps with whether the Notice is excipiable. Generally, a
n
excipient bears the burden of persuading the court that upon every
interpretation which the particulars of claim and any agreement
on
which they rely can reasonably bear, no cause of action is disclosed.
[57]
Delport’s notice is premised on a claim for a contribution
and/or an indemnity from Gush. He says by
virtue of the agreement and
as a director of Prime Trade, Gush owed Delport a duty of care to,
amongst others, conduct a due diligence
on Alpine.
[58]
A perusal of the May 2018 agreement relied on by Delport does not
make a reference to the indemnity claimed.
In her heads of argument,
Ms Larney states that Gush owed the duty of care to Prime Trade and
to Delport. The difficulty is that
Delport does not state how he is
connected with Prime Trade so as to take up the cudgels on its
behalf. Furthermore, the basis
of the alleged duty of care Gush owed
to Delport is not clear or substantiated.
[59]
As Mr Fasser points out, the court in
Eimco
SA Pty Ltd v P Mattiodas Construction Co SA Pty Ltd
[4]
had this to say:
“…
there
must be a right, arising from contract or by statute or from the law,
to an indemnity in respect of or a contribution towards,
the claim of
the plaintiff”
[60]
Delport also premises the Notice on a claim for a contribution on
account that Gush is jointly and several
liable with him as a
co-director of Prime Trade in terms of the provisions of the
Companies Act 71 of 2008
. Ms Larney also based her argument on the
court’s decision in
Sasfin
Bank Limited v Amoils.
[5]
In
that case the defendants were sued by the plaintiff as directors of
Stuttafords
International Fashion Company (Pty) Ltd
.
[61]
What is striking is that Delport denies that he was “
in fact
a director”
at Prime Trade. This issue permeates the Notice
and contradicts his plea. As matters stand, I am unable to discern
the basis or
foundation for the contribution or indemnity claimed –
contractual, statutory or otherwise. The facts in
Sasfin Bank
are
distinguishable because of Delport’s denial of his
directorship, in my view.
[62]
Another basis for the Notice is premised on
section 2(1)
[6]
read with
section 2(6)
(a)
[7]
of
the Apportionment of Damages Act 34 of 1956 ("the Apportionment
Act"). It is indeed so that the Apportionment of Damages
Act is
aimed at preventing a single event resulting in loss from leading to
a multiplicity of actions. As the court held in
Gross
v Commercial Union Assurance and Another,
Rule 13 is complementary to the provisions of section 2 of the
Apportionment Act, which contemplates the procedure regulated by
the
Rule.
[8]
[63]
Firstly, Mr Fasser makes a procedural objection to this and contends
that it is impermissible for him to
issue such a Notice without leave
of the court. The notice contemplated in section 2 of the
A
pportionment Act can be issued at any time before the close
of pleadings. Where such a notice has not been issued, leave of the
court is required on good cause shown. Delport does not escape the
difficulties he confronts under Rule 13 already alluded to above.
[63]
Another important consideration is that t
he
section 2(2) notice does not create a
lis
between
the defendants but is a necessary preliminary step to an action for a
contribution in terms of section 2(6)(a) of the Act.
[9]
Furthermore, t
he
form of relief that a party can seek under the Apportionment Act and
the Rule differs. As
Erasmus
points out, under s 2(6)
(a)
of
the Apportionment Act, a wrongdoer sued in an action can seek relief
in the form of a judgment for the payment of an amount
of money
determined by the court. Under the Rule, all that can be sought by
one alleged wrongdoer against another is an apportionment
of fault in
the form of a declaratory order.
[10]
The conflations and short comings are evident from below.
[64]
Firstly, Delport does not seek the court's leave to institute
proceedings against a joint wrongdoer in terms
of s 2(4)(b) of the
Apportionment Act. Rather, he seeks an order (1)
fixing
the amount which Gush is liable to pay to him in respect of his
liability to Prime Trade; and (2) that Gush
be ordered
to pay him any amount that he is liable to pay to the plaintiff. The
appropriateness of this relief falls into the short coming
above.
[65]
Ms Larney concedes that although there may be merit in the objection
that Delport has not specifically pleaded
section 2(2)(b) or section
2(4)(b) of the Apportionment Act, it does not follow that the claim
is excipiable on this ground. On
the strength of the court’s
decision in
Absa
Brokers (Pty) Ltd v RMB Financial Services & Others,
[11]
I decline the relief sought.
[66]
Even if, as Delport claims, the purpose of the procedure afforded in
Rule 13 is to avoid a multiplicity of
actions unnecessarily burdening
the courts, it is not the only mechanism available under the rules.
The door was never closed on
him. A separate action and an
application for a consolidation was equally available to him under
the Uniform Rules. Notwithstanding,
as the current Notice stands, I
am persuaded that the exception is well- taken.
[67]
Accordingly I make the following order:
a.
The Third Party's application for condonation application is granted.
b.
The application to strike out is dismissed with costs.
c.
The application for leave to file a Third Party Notice is dismissed
with costs.
d.
The exception raised by the Third Party against Annexure A is upheld.
e.
The defendant is ordered to pay the costs occasioned by the upholding
of the exception.
T
SIWENDU
JUDGE
OF THE HIGH COURT
GAUTENG
LOCAL DIVISION, JOHANNESBURG
This judgment was
handed down electronically by circulation to the parties’
and/or parties’ representatives by email
and by being uploaded
to CaseLines. The date and time for hand-down is deemed to be 10h00
on June 2022.
Heard
On: 12 May 2022
Delivered
On:28 June 2022
Counsel
for Plaintiff and Third Party:
Mr E
Fasser
Instructed
by:
RHK Attorneys
Counsel
for Applicant/ Defendant:
Ms E Larney
Instructed
by:
Douglas Smart Attorneys
[1]
1978
(3) SA 666
(A) 681B – C.
[2]
Hoffend
v Elgetti
1949
(3) SA 91 (A).
[3]
1984
(2) SA 414
(D) at 424B – C.
[4]
1967
(1) PH A23 (NPD) 79 – 82 at page 82.
[5]
2020
JDR 2087 (GJ).
[6]
Where
it is alleged that two or more persons are jointly or severally
liable in delict to a third person
(hereinafter referred to as the plaintiff) for the same damage, such
persons (hereinafter referred to as
joint
wrongdoers) may be sued in the same action.
[7]
If
judgment is in any action given against any joint wrongdoer for the
full amount of the damage
suffered by the
plaintiff, the said joint wrongdoer may, if the judgment debt has
been paid in full,
subject to the provisions of
paragraph (b) of subsection (4), recover from any other joint
wrongdoer a
contribution in respect of his
responsibility for such damage of such an amount as the court may
deem
just and equitable having regard to the degree
in which that other joint wrongdoer was at fault in
relation to the damage suffered by the plaintiff, and to the damages
awarded: Provided further that if
the court, in
determining the full amount of the damage suffered by the plaintiff
referred to in
subsection (1B), deducts from the
estimated value of the support of which the plaintiff has been
deprived by reason of the death of any person, the value of any
benefit which the plaintiff has acquired
from the
estate of such deceased person no contribution which the said joint
wrongdoer may so
recover from the estate of the
said deceased person shall deprive the plaintiff of the said benefit
or
any portion thereof.
[8]
Gross
v Commercial Union Assurance and Another
1974
(1) SA 630
(A) at 634E.
[9]
Snyman
v RAF
[2005] JOL 14448 (E).
[10]
Erasmus
Superior Court Practice D1-145.
[11]
2009
(6) SA 549
(SCA) para 15-17.
sino noindex
make_database footer start
Similar Cases
Even Properties CC v Waseem Auto CC and Others (2022/13715) [2023] ZAGPJHC 93 (7 February 2023)
[2023] ZAGPJHC 93High Court of South Africa (Gauteng Division, Johannesburg)99% similar
South Africa Enterprise Development (PTY) Ltd v Kerani BTW CC (2021/7285) [2022] ZAGPJHC 371 (1 June 2022)
[2022] ZAGPJHC 371High Court of South Africa (Gauteng Division, Johannesburg)99% similar
Just Splendid (Pty) Ltd and Another v Khunou and Others (2023/103030) [2023] ZAGPJHC 1175 (17 October 2023)
[2023] ZAGPJHC 1175High Court of South Africa (Gauteng Division, Johannesburg)99% similar
South African Transport and Allied Workers Union v South African Securitisation Programme (RF) Ltd and Others (2020/ A5066) [2022] ZAGPJHC 66 (7 February 2022)
[2022] ZAGPJHC 66High Court of South Africa (Gauteng Division, Johannesburg)99% similar
South African Municipal Workers Union National Medical Scheme (SAMUMED) v City of Ekurhuleni and Others (5068/2021) [2022] ZAGPJHC 701; [2022] 4 All SA 878 (GJ) (25 August 2022)
[2022] ZAGPJHC 701High Court of South Africa (Gauteng Division, Johannesburg)99% similar