Case Law[2022] ZAGPJHC 556South Africa
Park Village Auctioneers (PTY) Ltd v Forum Exporters International (PTY) Ltd (A5039/21) [2022] ZAGPJHC 556 (26 July 2022)
High Court of South Africa (Gauteng Division, Johannesburg)
26 July 2022
Headnotes
on 8 December 2016. The remaining goods were sold for R151 900. Forum agreed to forfeit the amount of R151 900 multiplied by factor 4, equalling R607 600. (This amount was amended at the end of the trial to R856 350.99). It was therefore alleged that Park Village was indebted to Forum in the amount of R 20 466 320. THE AGREEMENT [12] Forum called three witnesses to prove the agreement; Mr Buda, Mr Terblanche and Ms Ubsdell (a director of Goodrich). They all
Judgment
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## Park Village Auctioneers (PTY) Ltd v Forum Exporters International (PTY) Ltd (A5039/21) [2022] ZAGPJHC 556 (26 July 2022)
Park Village Auctioneers (PTY) Ltd v Forum Exporters International (PTY) Ltd (A5039/21) [2022] ZAGPJHC 556 (26 July 2022)
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sino date 26 July 2022
REPUBLIC OF SOUTH
AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
No: A5039/21
REPORTABLE:
NO
OF
INTEREST TO OTHER JUDGES: NO
REVISED.
26/07/2022
In
the matter between:
PARK
VILLAGE AUCTIONEERS (PTY) LTD
Appellant
And
FORUM
EXPORTERS INTERNATIONAL (PTY) LTD
Respondent
JUDGMENT
THE
COURT:
INTRODUCTION
[1]
This is an appeal from the High Court, against a judgment in favour
of Forum Exporters International (Pty) Ltd (“Forum”)
in
the sum of R6 212 157.23 plus VAT, interest and costs. The
appeal is with leave from the Supreme Court of Appeal.
[2]
In the court
a quo
, Forum was the plaintiff; the appellant
(“Park Village”) was the first defendant; and a director
of Park Village, Mr
Clive Lazarus (“Mr Lazarus”), was the
second defendant.
[3]
Forum’s claim is based on an oral joint venture agreement
concluded on 15 May 2016 between Forum, represented by Mr Buda,
Goodrich Auctioneers (“Goodrich”), represented by Mr
Terblanche (a director of Goodrich at the time) and Park Village,
represented by Mr Lazarus. It is alleged that under this agreement
each party had certain roles and obligations. Park Village denied
concluding any agreement with Forum and denied that it owed any money
to Forum. Instead it claimed that Goodrich was the party
bearing the
relevant obligations to Forum.
[4]
The court
a quo
found that the oral joint venture agreement
was concluded between the respective parties and that the sum of
R6 212 157.23
was owing by Park Village to Forum under the
agreement. The claim against Mr Lazarus was dismissed.
[5]
The issues on appeal are therefore whether Forum proved the agreement
and, if it did, the amount due and owing to Forum under
the
agreement.
BACKGROUND
[6]
During May 2016, Forum imported into South Arica over 100 containers
of household furniture and goods from France, pursuant
to an
agreement with Valitus LLC in the United Kingdom. The household
furniture and goods were sourced from Maisons du Monde in
France.
[7]
Forum first concluded an agreement with Goodrich, represented by Mr
Terblanche, to sell those goods on behalf of Forum. Goodrich
was
unable to timeously secure the requisite storage facilities in
Johannesburg to house the goods pending the sale thereof. At
the last
moment, just before the goods arrived in Durban, Park Village was
approached by Goodrich to assist. Park Village agreed,
inter alia
,
that its storage facilities in Johannesburg could be used to store
the goods.
[8]
Soon after, on 15 May 2016, Mr Lazarus representing Park Village and
Mr Buda representing Forum and Mr Terblanche (trading as
Goodrich)
met in Johannesburg. Forum alleged that on this day an oral joint
venture agreement was concluded between itself, Goodrich
and Park
Village, with the following express, alternatively tacit,
alternatively implied terms:
1.
Forum would remain the owner of the goods until they were sold in
accordance
with the agreement.
2.
Forum would clear the goods when it arrives in South Africa and
transport it
to warehousing in Gauteng belonging to or under the
control of Park Village.
3.
Goodrich would unpack the goods and prepare invoices.
4.
Park Village would then take control of the operation and be
responsible for
all aspects of sales, advertising, marketing,
delivery, invoicing and collection of moneys.
5.
Forum would be paid the retail price (the retail price from Maisons
Du Monde
in British Pounds) (“the MDM price”) multiplied
by a factor of 6 on all goods sold. (On 4 July 2016, the parties
agreed
to reduce the factor of 6 to a factor of 4,9.)
6.
Any moneys received in excess of Forum’s price would be
divided between
Park Village and Goodrich on a basis agreed between
them after expenses were paid.
[9]
Forum alleged that 128 containers of goods were subsequently
delivered to the warehouses, of which 98 were sold by Park Village
between May and December 2016. It is not clear what happened to the
other containers. Park Village pleaded that only 104 containers
of
goods were delivered and deny that 98 containers were sold.
[10]
The MDM price of the goods in the 98 containers referred to above was
alleged to be £ 4 300 800.00. Because Forum elected
to claim a
factor of 4.9 in respect of all goods sold, even the goods sold
before 4 July 2016, Forum claimed from Park Village
in respect of all
98 containers the sum of R21 073 920.00, excluding VAT.
[1]
[11]
It was, however, pleaded that a final auction (a fire sale) for all
of the goods remaining in the said warehouses was held
on 8 December
2016. The remaining goods were sold for R151 900. Forum agreed
to forfeit the amount of R151 900 multiplied
by factor 4,
equalling R607 600. (This amount was amended at the end of the
trial to R856 350.99). It was therefore alleged
that Park
Village was indebted to Forum in the amount of R 20 466 320.
THE
AGREEMENT
[12]
Forum called three witnesses to prove the agreement; Mr Buda, Mr
Terblanche and Ms Ubsdell (a director of Goodrich). They all
confirmed the joint venture agreement. They also confirmed Park
Village’s position and role in the venture. Mr Buda testified
that it was very clear that he (Mr Lazarus) wanted to make sure that
all the money, all the administration be done by Park Village
and
that it was “
very much a PVA operation as it were”.
Ms
Upsdell, who was present at the meeting of 15 May 2016 in
Johannesburg, further testified that Mr Lazarus was very specific
that they (Goodrich) were not to handle the money or the invoicing.
Park Village had a system in place and would do all the invoicing.
Also
,
when goods were purchased, the money was paid into Park
Village’s bank account. She further stated that Park Village
would
also handle the security, that is secure the safety of the
stock.
[13]
Park Village's pleaded case as to the 15 May 2016 agreement was, from
the start, unclear. In response to the allegation that
a joint
venture agreement had been struck between Forum, Goodrich and Park
Village, it admitted in its plea that, (a) Forum and
Goodrich had
entered into an agreement, (b) in terms of which Forum, Goodrich and
Park Village would contribute towards the venture.
It further
asserted that Park Village had three obligations under the agreement
which it complied with. These admissions are clearly
in contradiction
to its plea, that no agreement was struck.
[14]
In cross-examination, Mr Lazarus was asked why he maintained that
Park Village was not part of the agreement when its plea
admitted to
obligations under the agreement. He answered that he was not a
lawyer. Then later, despite initially denying that Park
Village had
concluded an agreement with Forum, he ultimately conceded under
cross-examination that Park Village was part of the
agreement of 15
May 2016. Moreover, in its plea, Park Village agreed that Forum would
be paid the MDM Price multiplied by a factor
of 6, but pleaded that,
owing to a misrepresentation regarding he quality of the goods, it
was no longer entitled to that amount.
Mr Lazarus was also taken to
two e-mails that he sent to Mr Buda in which he, in the first email,
complained about profits and
suggested changing the commission
structure, and in the second email, wherein he suggested to Mr Buda
that Forum should decrease
its commission. He did not dispute these
e-mails.
[15]
All of the above cannot be reconciled with Park Village’s
stance at the trial that it was not part of the agreement of
15 May
2016. Nor can it be reconciled with Park Village’s reliance on
Mr Terblanche’s evidence in its heads of argument,
namely that
Park Village played the role of a
sub-contractor,
assisting
Goodrich with its obligations to Forum, with no obligations to Forum
itself. Firstly, a sub-contract was never pleaded,
and secondly, Mr
Terblanche’s evidence must be seen in context. When Mr
Terblanche made mention of a sub-contract, he referred
to the
situation prior to 15 May 2016. His evidence was that, as far as
accountability to Forum was concerned, that had shifted
from Goodrich
to Park Village. In any event, a lay person’s characterisation
of something as being akin to a sub-contract
cannot be given much
weight.
[16]
The court
a quo
found that Mr Buda was a good witness and that
Ms Ubsdell was an excellent witness. The court found that although Mr
Terblanche
was not an ideal witness and prone to talking rather than
listening, there was no reason to find that he was not a credible
witness
on the agreement issue, his evidence being consistent with
that of Ms Ubsdell. On the other hand, however, the court found that
Mr Lazarus, who was the only witness for Park Village, was an
appalling witness. The court had the following to say:
‘
If a defendant
is to have only one witness in its corner, it should not be a witness
like Mr Lazarus. Mr Terblanche’s meanderings
in his evidence
paled into insignificance when Mr Lazarus took the stand,
particularly so when he was under cross-examination.
His default
position was to avoid answering questions, or to give wholly
irrelevant answers. He hid behind not understanding the
law. He was
difficult to pin down on facts. Indeed, it was difficult to
understand what his case was from the evidence he gave.’
[17]
From a reading of the record this serious criticism was clearly
justified. Not only was Mr Lazarus a bad witness, he was caught
out
in at least two fraudulent schemes aimed at increasing Park Village’s
profits. In the first scheme Mr Lazarus was instrumental
in the
alteration of an invoice for a radio commercial from R160 183,68
to R388 000,00 in order to justify paying Forum
less. In the
second fraudulent scheme two sets of books were kept: an accurate set
and a fake set, in which sales figures and costs
were manipulated. By
design, Forum was only shown the fake set.
[18]
It is trite that an appeal court is not inclined to disturb findings
by the trial court on the evaluation of the evidence.
The advantage
of seeing and hearing the witnesses is difficult to surpass.
[2]
Such findings are only overturned if there is a clear misdirection or
the trial court’s findings are clearly erroneous.
The
court
a
quo
found, on the agreement issue, that Forum’s witnesses were
generally consistent in their versions of the agreement and its
terms, as well as the role of Park Village. The court further found
that Mr Lazarus ultimately accepted under cross-examination
that
there was an agreement between Forum, Goodrich and Park Village and
that there was ‘
ample
other evidence’
to
support such a finding. There is no scope for upsetting the court
a
quo’s
finding on this score.
AMOUNT
DUE
[19]
Forum’s complaint, in a nutshell, is that Park Village failed
to comply with its obligation to pay over to Forum the
amount due
under the agreement. The amount of R21 073 920 initially
pleaded in the particulars of claim, alleged to be
the value of the
98 containers, was amended at the end of the trial to R17 127 020.
Forum further argued at the end of
the trial that this amount should
be further reduced by:
1.
R2 324 051.68 paid by Park Village to Forum between May
2016 and December
2016.
2.
R856 350.99 for goods sold at the fire sale.
3.
R7 398 031.76 in respect of goods sold by Forum to Unicorn
Auctioneers
(“Unicorn”).
This
brought the claim against Park Village down to R6 548 585.57.
[20] Park Village
contends on appeal that the court
a quo
erred in holding that Forum proved the quantum of its claim in the
amount found by the court, or at all. First, the starting point
for
the assessment of quantum was the amount disclosed on a spreadsheet
prepared by Forum’s counsel, not any witness, and
Park Village
bore an onus to show reductions of quantum from the spreadsheet
amount. Second, the court
a quo
overlooked the fact that sales were executed by Goodrich without
proper accounting. Third, in the face of acknowledgment by Forum
of a
large amount of damaged goods, the court held that Park Village bore
an onus to show what was and what was not damaged. Fourth,
the court
erred in finding that sales performed by Goodrich for its own account
was only in an amount of
R336 729,00.
Fifth, the court erred in not finding that, even after the fire sale,
there remained unsold goods that had to be accounted for
in any
quantum assessment. Sixth, the court erred in accepting the value of
the goods sold to Unicorn. Seventh, the court used,
in a contractual
setting, a test developed to deal with
quantum
in delictual claims.
[21]
As far as the sale of the goods to Unicorn is concerned,
Park
Village put up no evidence at all to suggest that the spreadsheet
showing what was sold to Unicorn was inaccurate. In its heads
of
argument, it is merely speculated that it is possible that more items
than were on the list was taken. There is no basis for
this
speculation.
The modified
spreadsheet issue.
[22] The first issue that
needed to be determined was the quantity of the goods delivered by
Forum and the value of such goods.
Park Village discovered a
spreadsheet containing approximately 9000 line items.
The spreadsheet had its
genesis in the inward documents of
Valitas, the entity from whom Forum purchased the goods. Two days
before the joint venture agreement
was concluded, Mr Grant Cameron of
Park Village sent an email to Mr Buda in which he referred to the
spreadsheets and asked that
they include five items of information:
individual listings of stock per container, container numbers,
quantity, stock number and
code and cost and sales price.
[23]
At a pre-trial meeting it was agreed that the
discovered spreadsheet would be modified and presented at trial.
It
was recorded that, ‘…
the parties are agreed that to
facilitate the giving of evidence and cross-examination that the
spreadsheet discovered by the Defendant,
at Caselines Trial Bundle 3
Volume 1, should be modified. The plaintiff has undertaking
(sic)
the process of modifying same and will deliver a copy to the
defendants. The purpose of updating the spreadsheet was to quantify
more accurately the plaintiffs claim by cross referencing it with the
unpacking lists. The defendants will consider the updated
spreadsheet
and will revert to the plaintiff regarding any admission thereof.’
[24]
The parties’ agreement was eminently sensible as it would have
taken many days of evidence if the spreadsheet was modified
in court
throughout the evidence. In any event, Park Village did not object to
the modified spreadsheet at trial. In fact, it requested
that a
further column be inserted, which reflected the quantities of goods
delivered, with reference to the unpacking sheets obtained
from the
transporters, African Compass International Cargo (“African
Compass”). The original quantities stated by Valitas
were
therefore modified to conform to the unpacking sheets that Forum had
to prove at trial.
[25]
Ms Rosekilly from African Compass was called as a witness. She gave
evidence about the unpacking of the goods from the containers
and the
recording of the number of items unloaded on the unpacking sheets.
Column 13 of the spreadsheet gave the unit price of
the item
concerned. A further column was added to the spreadsheet to give the
total of the unit price multiplied by the quantity
as proved by the
unpacking sheets. Finally, a column was added to reflect Forum’s
fee on each line item (a factor of 4.9
of the stated MDM Price in
Rands). Ms Rosekilly’s evidence was not materially challenged
under cross-examination
[26]
In examination-in-chief, Mr Buda stated that he had looked at the
unpacking lists and satisfied himself that the modified spreadsheet
did accord with the unpacking lists. He therefore confirmed that the
spreadsheet was accurate. No questions were directed to Mr
Buda under
cross-examination about the correctness of the spreadsheet.
[27]
The court
a quo
therefore accepted the value attached to the
goods as contended for by Forum in the spreadsheet, namely
R17 127 020,71.
In our view, there is no scope for
upsetting the court
a quo’s
approach to the spreadsheet.
As the court pointed out, it was open to Park Village to take issue
with the spreadsheet if it wished.
How
many items were sold?
[28]
Forum carries the onus to prove, on a balance of probabilities, that
98 containers were sold to the value of R17 127 020.
It
failed to discharge the onus. We say so for the following reasons.
[29] Firstly, Forum would
only be entitled to payment on goods actually sold. If goods went
missing from the warehouse (as it did),
or when goods were
appropriated by Mr Terblanche and Mr Lazarus (as it were), or where
goods were so badly damaged that it could
not be sold (which is
common cause), Forum would not be entitled to payment for those
goods. This was confirmed by Ms Upsdell when
she was asked whether Mr
Lazarus said at the 15 May 2016 meeting that he was fully responsible
for everything in that warehouse
no matter what happens to it. She
replied: “
I do not remember him using that term, whatever
happens to it. But he was very specific that he would handle the
security, the safety
of the stock, the security, the selling on
invoice, and the money.”
[30] When Mr Buda was
asked why Park Village is liable for 98 containers' goods, he stated
that, apart from the "5000 odd"
items sold to Unicorn,
minus the recorded sales, a "quantity of merchandise has
vanished into thin air". But, the goods
did not vanish into thin
air. It was clearly a free for all, where various parties, including
Mr Buda, removed goods without the
knowledge or control of Park
Village.
[31]
During his examination, Mr Terblanche admitted that he had removed
goods from Park Village’s warehouses and that they
were sold
separately under Goodrich invoices. He said he did this out of
necessity because, while Goodrich had paid all of the
expenses during
April, May and June, Park Village paid it nothing by way of
commissions in that time. Mr Terblanche testified that
he disclosed
this to Mr Lazarus by way of reconciliations. Although Ms Ubsdell
confirmed Mr Terblanche’s evidence in this
respect, she also
admitted that Park Village was not informed that items were removed.
It was alleged that the total sum invoiced
separately by Goodrich was
R336 729,00.
[32]
But, there is an issue with Mr Terblanche’s evidence. He
testified that Goodrich started issuing invoices from the beginning.
He said:
"it was when we started unpacking, you know, it was
towards the end of May".
This statement reveals two things.
First, Goodrich started selling goods for its own account even before
all the items were unpacked,
that is, before Goodrich had even
compiled the full inventory given to Park Village's Grant Cameron to
load onto the Park Village
system. Second, Goodrich's motivation
could not have been because Park Village was not paying its expenses.
The first 4-day sale
was only held in the beginning of June.
Therefore, Park Village had not even received any proceeds from which
expenses could be
paid.
[33]
Goodrich was clearly misappropriating stock from the word go, before
Park Village could even take control over the stock. More
importantly, no one knows how much stock was misappropriated or its
value. Forum failed to disclose, through Mr Buda or Mr Terblanche,
any of these invoices over this initial period to indicate how much
was taken, nor what the expenses were that they wanted to cover.
[34]
The evidence is that when Mr Lazarus eventually became aware of
Goodrich’s invoices, it put a stop to it. Mr Terblanche
was
asked in cross-examination whether Goodrich issued any further
invoices after Mr Lazarus put an end to it. He replied:
"Not
as far as my knowledge. Everything came through via Grant."
Mr
Terblanche was then referred to invoices issued by Goodrich during
September 2016. These few invoices were located by Park Village.
Of
all these invoices only the proceeds of one sale to the value to
R118 000.00, were paid over to Forum. When Mr Terblanche
was
confronted and asked in what context these invoices were issued, he
replied that he
"was not in the country and Heather was there
running the whole operation by herself",
suggesting that Ms
Ubsdell was now on a frolic of her own.
[35]
Forum’s case is that Park Village was responsible to account to
it for the stock disposed of and to pay Forum its agreed
cut on the
goods sold. Park Village only produced some 134 invoices by way of
discovery. The court
a quo
stated that, in view of the
quantity of goods involved, there had to be far more invoices issued
than those discovered. Consequently,
Forum could not rely on Park
Village’s discovered records for purposes of quantifying its
claim. Forum was clearly in a pickle.
On 22 November 2016, Mr Buda
addressed an email to Goodrich (Mr Terblanche and Ms Ubsdell) as
follows:
"All that will be need to attend to is the inventory
list You/Goodrich removed from PVA over the last few months without
recording
the goods movement."
On 6 December 2016, Mr Buda
sent Ms Upsdell another email in which he asked for the inventory:
“
Finally, I think it's time to get the full inventory list
of goods either currently at or previously sold by Goodrich. It has
been
constantly promised for several weeks."
She responded
that neither she nor Mr Terblanche had the information. She testified
that she told Mr Terblanche that she could
not compile an inventory
for Mr Buda as she did not have the full sales figures from Park
Village. Mr Terblanche also testified
that: “
At no time, at
no time in the entirety of the contract were we ever given access
into that inventory to see what the invoice amounts
were, who was
being invoiced, what was sold on auction to the true figures. All of
us only Clive (Mr Lazarus) had control over
that.”
Park
Village clearly failed to account to Forum and no inventories of
goods sold were produced at court.
[36]
Counsel for Forum submitted during argument that this was not an
issue, as Forum proved that it delivered to Park Village what
is
reflected in the modified spreadsheet. As Park Village was
responsible for security and was obliged to ensure the safety of
the
goods, any removal of goods or failure to produce the inventories,
cannot be laid at Forum’s door. We disagree for mainly
two
reasons. First, Forum carries the onus to prove that 98 containers of
goods were sold. Second, the claim against Park Village
is based an
oral joint venture agreement in terms of which payment is claimed for
goods sold. The claim is not for damages suffered
as a result of Park
Village’s failure to secure the goods or for its failure to
account for the goods in the warehouse. The
court
a quo
was
therefore correct in subtracting the invoices from Goodrich from the
amount claimed.
[37]
However, as no inventory was presented at trial, it is still unknown
how much stock, and to what value was removed from the
Park Village
warehouses.
This was
never established
during evidence. What is clear is that Goodrich had removed stock,
had not accounted for it, and this was known
to Forum.
[38]
Secondly,
Mr
Buda admitted that
"there
was a high degree, or a much higher degree of damaged goods"
.
It is obvious, even from the transcript, that Mr Buda had no way of
dealing with this problem when he said the following under
cross-examination: "
I …I …the …the
straight answer is I think it is a lot what … more than …
sorry what one would
normally expect would be a small percentage of
damaged goods coming in and this was a greater amount than a small
percentage."
Mr Buda also admitted that he did not know what
happened to the damaged goods. Ms Ubsdell also testified that they
realised that
their expectations were not going to be met
"due
to the damage and various reason …"
In addition, Mr
Lazarus testified that, because there was such a lot of damaged
furniture, there were lots of refunds. He stated
that 90% of the
time, money was refunded.
[39]
The real significance of the damaged goods and the influence it must
have had on the sales (and the amount alleged to be due
and owing to
Forum), however, became clear when Forum's attorneys, in their letter
of demand, indicated that they
"are prepared to write off 50%
of the goods due to packing and/or transport damage"
. In the
letter of demand, the value of 128 containers was calculated as being
R43 535 842.00. That means Forum was prepared
to write off
more than R20 million, without any scientific or mathematical
basis to justify either the write off, or the remaining
“debt”.
This is not without implication for Forum’s case.
Having
admitted large scale damage to the goods, Forum bore the onus to show
what was sold and for what value. It did not discharge
this onus.
[40]
Thirdly, it is common cause on the pleadings that on 8 December 2016
a fire sale was held aimed at selling the last of the
goods then
still in Park Village’s warehouses. However, the evidence was
that
goods remained unsold after the final fire
sale. Mr Terblanche admitted that there were still some goods at the
Goodrich premises
after the end of the venture, b
ut that they
were subsequently sold by Goodrich. No evidence was produced as to
how many items were left after the fire sale and
the value thereof.
[41]
Fourthly, the fire sale was conducted on a different basis to the
other sales. It was agreed that, instead of being paid the
usual
factor of 4.9, Forum would be paid what was left of the proceeds
after 20% thereof had been split between Goodrich and Park
Village.
Forum also agreed to pay R90 000,00 towards expenses. As the
modified spreadsheet included all of the items that
had been
delivered to Park Village and as the proceeds of the final sale were
not to be distributed on the basis reflected in the
spreadsheet, it
was necessary for the Forum to remove the items forming the subject
of the final sale from the spreadsheet. (Forum
did not claim anything
in respect of the final sale).
[42]
This would have been an easy task if Park Village had complied with
its obligations under the agreement to produce proper invoices
for
all of the goods sold. It failed to do so. In addition, to complicate
things even further, the evidence showed that Mr Lazarus
also took
stock for himself during September 2016. The evidence given by Mr
Terblanche is this:
‘
Mr Lazarus, uhm
came and spoke to me and he said listen, we are not going to make any
money out of this contract whatsoever. I am
going to take you know a
whole lot of goods for myself so I can at least make a you know I can
sell it off and make some money.’
And
also:
‘
So he
just said to me, we are not going to make money out of this and you
know I am taking a whole lot of stock for myself, so I
can sell it
off and you know, make some money and I suggest that you do the same.
You know, take some stock for yourself.’’
[43]
Mr Terblanche testified that a few days after the above exchange, he
saw Mr Lazarus’s staff removing stock from the warehouse,
packing them into wooden containers and sealing them. Mr Terblanche
further said that Mr Lazarus took ‘
triple A’
stock
and estimated that Mr Lazarus had removed stock of about R4 million.
But, because of Park Village’s complete failure
to produce
invoices, it was not possible for Forum to tell exactly how much
ought to be removed from the modified spreadsheet on
account of the
final sale.
[44]
The approach adopted by Forum was therefore to ask Mr Terblanche to
estimate how much of all of the goods delivered comprised
the final
fire sale. His estimate was 3% – 5%. Forum used the higher
estimate of 5% to be safe. That is 5% from the value
of the goods
valued at R17 127 020. It was on this basis that the court
a quo
subtracted R856 351,03 from Forum’s claim.
[45] Th
e
court
a
quo
came to this conclusion after it found that it cannot be determined
with mathematical accuracy how much more Park Village should
have
paid Forum over and above the R2 324 051.68 that it had
already paid. Relying on the dictum in
Esso
Standard SA (Pty) Ltd v Katz,
[3]
the court
a
quo
held that Park Village will not be relieved of the necessity to pay,
only because the court cannot assess “the damages”
with
precision.
[46]
In
Esso,
the claim was for unliquidated delictual damages. The approach
adopted in that case has also been adopted in cases of contractual
damages:
[4]
“
Monetary damage
having been suffered, it is necessary for the Court to assess the
amount and make the best use it can of the evidence
before it. There
are cases where the assessment by the Court is very little more than
an estimate, but even so, if it is certain
that pecuniary damage has
been suffered, the Court is bound to award damages. It is not bound
in the case where evidence is available
to the plaintiff which he has
not produced; in those circumstances the court is justified in giving
absolution from the instance.
But where the best evidence available
has been produced, though it is not entirely of a conclusive
character and does not permit
of a mathematical calculation of the
damage suffered, still, if it is the best evidence available, the
Court must use it and arrive
at a conclusion based on it.’
[47]
Even if the
Esso
principle could be applied to contractual
damages, Forum claimed in paragraph 9 of the particulars of claim
that Park Village
sold
(past tense) the goods delivered.
Forum's case is therefore that it delivered goods to Park Village,
Park Village sold all the
goods, but failed to pay over Forum’s
agreed portion of the proceeds of the sales. Forum did not
cancel the agreement
and claim contractual damages. Forum also
elected not to institute a claim for damages as an alternative
to its claim. Nor
did it establish that the evidence it adduced of
quantum was the best it could in the circumstances. As a result, the
court
a quo
erred in relying on
Esso
to establish the
amount due and owing under the agreement.
CONCLUSION
[48]
Forum
failed
to prove the amount due to it under the agreement, and
the
judgment falls to be set aside. In such circumstances, this court is
permitted, under
section 19(d)
of
the
Superior
Courts Act, 10 of 2013
,
to
“
confirm
,
amend or set aside the decision which is the subject of the appeal
and render any decision which the circumstances may require.”
[49]
Forum did not adduce sufficient admissible evidence to prove the
amount owing to it under the agreement. An order granting
absolution
from the instance at the conclusion of the defendant’s case may
be made in circumstances where the possibility
exists that a
plaintiff who bears the onus of proof in the matter might
successfully discharge that onus by establishing other
facts.
[5]
On the assumption that there is a prospect that Forum may yet be able
to proof the amount, it would be in the interests of justice
to
permit it to do so.
[50]
As a result, and taking into consideration the circumstances of this
case, an order for absolution from the instance, should
have been
granted at the end of the defendant’s case.
[51]
In the result the following order is made:
1. The appeal is upheld
with costs.
2. The order of the court
a quo
is set aside and replaced with the following:
“
Absolution from
the instance is granted. Costs awarded to the defendant”
WINDELL
J
JUDGE
OF THE HIGH COURT
GAUTENG
LOCAL DIVISION, JOHANNESBURG
I
agree
MUDAU
J
JUDGE
OF THE HIGH COURT
GAUTENG
LOCAL DIVISION, JOHANNESBURG
I
agree
MOLAHLEHI
J
JUDGE
OF THE HIGH COURT
GAUTENG
LOCAL DIVISION, JOHANNESBURG
Delivered:
This judgement was prepared and authored by the Judge whose name is
reflected and is handed down electronically by circulation
to the
Parties/their legal representatives by email and by uploading it to
the electronic file of this matter on CaseLines. The
date for
hand-down is deemed to be 26 July 2020.
APPEARANCES
Counsel
for the appellant:
Advocate John Suttner SC
Advocate Awie Du Plooy
Attorneys
for the appellant:
A. Le Roux Attorneys
Counsel
for the respondent:
Advocate Donovan Baguley
Attorneys
for the respondent:
Oosthuizen & Co
Date
of hearing:
25 April 2022
Date
of judgment:
26 July 2022
[1]
It
is unclear how this amount was calculated. If the value of the 98
containers was
£
4 300 800.00, and the exchange rate R21 to the pound, the amount in
Rand (without adding factor 4,9) is at least R90 316 800.
R4 300 800 x 4,9 is however R21 073 920.
[2]
Thabo
Job Raleting v The State
[2021] ZAFSHC 198
at
[4]
and [9];
AM
and Another v MEC Health, Western Cape
(1258/2018)
[2020] ZASCA 89
at
[8]
.
[3]
1981 (1) SA 964
(A) at 970 E-H.
[4]
Hersman
v Shapiro & Co
1926 TPD 367
at p. 379 as quoted with approval in
Enslin
v Meyer
1960 (4) SA 520
(TPD) at 523H.
[5]
Damont
NO v Van Zyl
1962
(4) SA 47
(C) at 52G-H;
Mills
Litho (Pty) Ltd v Storm Quinan t/a ‘Out of the Blue
1987
(1) SA 781
(C) at 786H-I.
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