Case Law[2022] ZAGPJHC 544South Africa
Stoch and Another v Mntambo N.O. and Others (38240/2020) [2022] ZAGPJHC 544 (11 August 2022)
High Court of South Africa (Gauteng Division, Johannesburg)
11 August 2022
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Stoch and Another v Mntambo N.O. and Others (38240/2020) [2022] ZAGPJHC 544 (11 August 2022)
Stoch and Another v Mntambo N.O. and Others (38240/2020) [2022] ZAGPJHC 544 (11 August 2022)
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sino date 11 August 2022
SAFLII
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personal/private details of parties or witnesses have been
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SAFLII
Policy
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
CASE
NO: 38240/2020
REPORTABLE: NO
OF INTEREST TO OTHER
JUDGES: NO
REVISED: NO
DATE: 11 AUGUST 2022
In the matter between:
STEPHEN LEONARD
STOCH
First Applicant
CAROLYN WENDY RAPHAELY
Second Applicant
And
ZWELIBANZI VINCENT
MNTAMBO N.O.
First Respondent
ZWELETHEMBA GANUGANU
MNTAMBO N.O.
Second Respondent
MZWAKHE KUTLWANO MNTAMBO
N.O.
Third Respondent
WANDILE KAMOGELO MNTAMBO
N.O.
Fourth Respondent
JACOBUS PETRUS ROSSOUW
N.O.
Fifth Respondent
JUDGMENT
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 11 August 2022.
MOTHA
AJ
1.
“
Good fences make good
neighbours” writes Robert Frost in Mending Wall. The double
garages built on one of the litigants’
vacation home are a
source of contestation between the parties. Having failed to live as
good neighbours in their holiday homes,
they turn to the law for good
fences.
2.
In
casu,
the
Applicants seek an order to evict and interdict Maculisane Mntambo
family Trust (“Trust”) from the garages situated
at erf:
[....], K [....], B [....] Municipality. They also ask for an
order directing the Trust to disconnect the sewerage
pipes of the
property situated on erf: [....], K [....], B [....]
Municipality from the septic tank situated on erf: [....].
3.
In response, the Respondents bring a
counter-application for an order instructing the Applicants to
provide, attest or sign all
the necessary documents, including the
Power of Attorney and draft Deed of Servitude appended to annexure
“FA18”, in
order to register a servitude over erf [....]
in favour of and for the benefit of erf [....].
BACKGROUND FACTS
4.
This
matter emanates from a small housing estate called “Keurbaai”,
in K [....]. Developed in the early 1980s, Keurbaai
Shareblock (Pty)
Ltd (“Shareblock Company”) owned all the land situated at
Keurbaai under a consolidated erf [....].
Subject to user
agreement, the Shareblock Company issued a number of shares, each
entitling owners thereof to the exclusive use
and enjoyment of their
sites, namely a fictional section of the consolidated erf.
[1]
5.
Some of these sections had houses built on
them, whilst others were empty stands. In the late 1990s the
shareholders of the Shareblock
Company took a decision to subdivide
the consolidated erf into individual erven, and the remaining portion
as shared property.
The goal was to transfer the individual erven
from the Shareblock Company to individual shareholders. This process,
which would
result in each owner holding an individual title, is the
genesis of this conflict.
6.
Due
to the significant transfer duty required for the transfer of an
erven from the Shareblock Company to an individual shareholder,
none
of the shareholders took transfer. In 2013 certain changes to the tax
regime were introduced, and these made it possible for
the Shareblock
Company to transfer individual erven to shareholders at a minimal
cost.
[2]
7.
It
bears mentioning that both erf [....] and its immediate neighbour erf
[....] were owned by the Shareblock Company as semi-detached
units
comprising of one single building; and were a part of a housing block
constructed on an undivided land which later became
units 5 and 6 on
erf [....] and erf [....], respectively. The original owner of the
house on erf [....] was F. van Niekerk, and
W. Labuschagne owned the
house on erf [....].
[3]
(These
were brothers-in-law). Four garages were built on erf [....] to
service both houses. The two garages located on the eastern
side were
used by the owner of erf [....] whilst the other two on the western
side belonged to the owner of erf [....].
8.
It was practical and convenient that the
garages be constructed under unit 5 to service both units, 5 and 6.
The Respondents’
house was hidden from view by a large bush in
front of it. The designer did not anticipate any individual ownership
of the fictional
divisions. The first Respondent made the point that
there was no need for a formal agreement between Van Niekerk and
Labuschagne,
since the properties were consolidated under erf [....]
and owned by the Shareblock Company.
9.
The Applicants bought the shares in the
Shareblock in 1999 after the subdivision had been granted. Since the
Shareblock Company
owned the development, it had a strict regime in
place regarding tampering with the existing aesthetic of Keurbaai. In
order to
preserve the existing aesthetic of the complex, shareholders
were precluded from effecting wholesale alterations to their houses.
10.
Upon the sale of his Shareblock to the
Applicants, Van Niekerk requested them to allow Labuschagne to
continue utilizing the garages.
Labuschagne later sold his shares to
V. van Heerden who also used the garages to park and access erf
[....]. He, in turn,
sold his shares to the Trust in or about
August 2013. For what it is worth, the first Applicant was at one
stage the Chairman of
the Shareblock Company.
11.
The Applicants permitted the Trust to
utilize the garages. According to the Applicants they did not intend
utilizing the garages
for their cars, and they were not permitted to
alter the property in any significant way. In 2014, the first
Applicant and first
Respondent met and discussed registering a
servitude over the Applicants’ property which would formalise
the permission,
the owners of the Trust property already had, to
continue utilizing the garages and accessing the Trust property from
the Applicants’
property.
ISSUES CONFRONTING
THE PARTIES
12.
On 23 April 2014, the first Applicant
addressed an email to the first Respondent and Chairman of the
Shareblock Company, Simeon
Peerutin. In this email the first
Applicant stated the following:
“
Hi
Simmy
As we are now proceeding
with the transfer of the remaining part of the Shareblock to the
shareholders, there is one issue that
Zweli (Vincent) and I need to
resolve. He basically owns the two left-most garages under No 5 and I
am thus obliged to provide
him with a servitude to access these
garages.While all of the houses were owned by the Shareblock this was
not an issue and we
simply allowed the owners of unit 6 to park on
half the front of our erf ( [....]). Now that we have to create a
formal servitude,
we need to create a balance between giving Zweli
access and preserving the value of our erf. The bigger the servitude,
the lower
our value.
In addition, Zweli needs
to ensure that he has sufficient parking. Note that the piece of
ground opposite No 6 IS taken up by the
electric box and is a
servitude in favour of all Keurbaai houses.
I have come with a sketch
that I think might work and thought I’d ask for your
architectural opinion. It will necessitate
Zweli removing about half
of the bush in front of his house, but I would suggest he keeps as
much as possible as close to the house
as possible as to avoid
exposing more brick work to the road. As it stands, it is rather nice
that No 6 is hidden…
Zweli
what are your thoughts?”
[4]
13.
At this stage, it was beyond any question
that the parties regarded the two garages on the western side as
belonging to erf [....].
Hence, the Respondents effected improvements
by building a storeroom at the back of the garages, installing
electric garage doors,
a geyser and DB board. The Applicants did not
object to these improvements as they understood these garages to
belong to erf [....].
Therefore, the only issue up for discussion was
a servitude granting the Trust the right of way to access their
garages. Accordingly,
during the transfer of erf [....] from the
Shareblock Company into the shareholder this should have been
attended to. However,
the Shareblock Company did not register a
servitude on erf [....] in favour of erf [....] when the properties
were subdivided.
It could not have been the design in the Shareblock
Company that erf [....] would have four garages and erf [....] would
have none.
14.
On
23 April 2014, the first Respondent requested a copy of the document
signed by the first Applicant granting a right of way to
the
successors in title to erf [....].For assistance with the
registration of the servitude, the Applicants recommended the
services
of Steyn De Villiers, a notary public. The first Respondent
requested the first Applicant to give Steyn De Villiers instructions
to go ahead; and also enquired about the costs he would have to
bear.
[5]
In response the first
Applicant sent an email to both Steyn De Villiers and the first
Respondent stating the following:
“
1.
Fact – you basically own the western garages and are hence
entitled to a servitude to them.
2.
Fact –
as you are entitled to use the garages, we are obliged to provide
access to them.”
[6]
15.
On
24 April 2014, the first Applicant sent his sketch of how the
servitude should look like. The first Respondent acknowledged the
first Applicant’s initiative and suggested that the
servitude, in order to protect the value of the first Applicant’s
erf, should be registered on the garages and not on the driveway.
[7]
Then the parties could agree on the terms and conditions of the use
of the driveway.
[8]
16.
Having
suggested a different route to the first Applicant’s sketch, on
25 April 2014, the first Respondent suggested that
the parties sought
advice from the professionals in order to arrive at a practical and
effective solution.
[9]
The first
Respondent was interested to keep as much of the vegetation as
possible, especially the milk-wood trees that had grown
to a good
size. He was, however, willing to cut and remove some ground and
vegetation in order to create parking for two cars.
[10]
17.
On
15 October 2015, Steyn De Villiers drafted an email with a draft
resolution, Power of Attorney and notarial deed for the registration
of the servitude over the Applicants’ property. The first
Applicant indicated that he was “pretty much happy to go
along
with a verbal description for now, but my suggestion is that this be
done properly from the get-go. Do the survey now and
get everything
registered by the book. The diagram below is pretty much what I had
in mind.”
[11]
18.
The
Applicants wanted to retain as much of their erf as possible as they
would possibly extend the balcony on the north of their
house and
might need a column on the western boundary.
[12]
19.
On 27 June 2016, Steyn De Villiers emailed
the first Applicant and stated that:
“
Your
letter below and the basic terms of the servitude seems to be the
basis of the servitude namely:
-Access route commencing
at 3m wide and increasing to 6m(parallel to boundary) to access
garage area (6x6m) as depicted in your
letter, and- described in my
draft agreement.
On the strength of the
above the Surveyor can plot the servitude area and draw the Diagram
for approval by the Surveyor Gen, I need
authority from you and
Mntambo Trust to instruct the Surveyor and incur such costs obo
Mtambo Trust who has to pay the costs.
Please
phone me if anything is not clear.”
[13]
20.
Procrastination is a thief of time. There
was no activity for a number of years. In 2018 owners at Keurbaai
began to construct houses
which were fundamentally different from the
aesthetic structure of other houses. All the restrictions on the
aesthetic development
were removed. The Applicants began to consider
utilizing the garages as an additional living area.
21.
On
01 March 2018, the first Applicant enquired from the Respondents
whether they still wanted to proceed with the servitude and
expressed
that they were considering plans for the northern portion of the erf.
Relying on the institutional history, the first
Respondent mentioned
that the original owners of no. 5 and 6 had an agreement in terms of
which no.6 had the right to use the driveway
and the garages which
are the property of no.5.
[14]
22.
For the first time, on 25 December 2018,
the first Applicant stated that the garages were built on their
property and actually were
part of their house. Clearly the gloves
were now off. In the email he stated the following:
“
I
have been giving some thought to the servitude again and to the use
of the garages. While we have agreed to grant a servitude
to access
the two right-most garages (as you are aware), the actual status of
the garages per se is a bit moot. Although Frik allowed
Wally (I
think his brother in law) access to the rightmost garages and we have
continued that “tradition” Wally, I
do not know the long
term implications of this are.
As you are aware, the
garages are built on our property and are actually part of our house.
There is no sectional title of the garages
in favour of erf [....]
and I am under no obligation to grant such sectional title rights.
Have you consider
building garages on erf [....] or possible creating parking
facilities for your erf. Erf [....] is currently the
only Erf without
parking and/or garage facilities. Wouldn’t be that the cleanest
solution?
Of course, we can
establish the servitude, but what of the garages that are on our
property and are part of our house? Is it not
time that we resolve
this issue?
Regards
Leonard
PS.
I had a look for my purchase agreement, but cannot find it. I fear it
was thrown away during a major cleanup-I threw out almost
all
documents older than 7 years. All I have is the title deed, which
mentions nothing about the garages or the driveway.”
[15]
23.
On 28 December 2018, the first Respondent
dispatched an email in which he acknowledged their lackadaisical
handling of the matter
which led to the loss of vital information. Of
paramount importance is that he again acknowledged the Applicants’
ownership
of the land and garages. On the same day, the first
Applicant suggested the following options:
(a)
“
Rental of a tandem garage space with direct
access and parking space on that access- the term and rental would
need to be discussed;
(b)
Sale of a tandem garage space to you and sectional
title of that portion of my property;
(c)
You
build a garage on your property and we can discuss a servitude of
access to your property on my property.”
[16]
24.
At this stage it was clear that the parties
were locking horns. The Applicants further stated the following:
“
I
bought my property in 1999 as it was a condition of purchase that
individual title be granted and allowed the original owner of
your
property continued access to the garages.
In the
spirit of good neighborliness I allowed the arrangement with
purchasers of your property. At no stage was it intended that
legal
or property rights were intended to be created on my land- I
appreciate that you have recognized this.”
[17]
25.
The
battle lines were drawn. On 23 March 2019, the first Respondent
copied the first Applicant the legal advice from his lawyers,
Cezanne
Britain.It categorically stated that there was an unregistered
praedial servitude in favour of the Respondents’ property
as a
result of a mutual agreement between the original owners. It,
further, stated that the Applicants and Respondents reached
an
agreement to have the right of passage, access and use formalised by
registering a servitude. Therefore, they maintained, there
was an
existing
de
facto
unregistered
praedial servitude in favour of the Trust.
[18]
26.
On
12 April 2019, the Applicants’ lawyers, Bernadt Vukic Potash
and Getz, sent a letter disputing the existence of a praedial
servitude and stated that at best there was an informal discussion
between the Applicants and Respondents regarding a possible
conclusion of an agreement. It bears mentioning that the Attorneys of
the Applicants stated that the use of the garages could only
be
terminated on reasonable notice.
[19]
27.
Mr. De Villiers communicated to the
Respondents’ lawyers, on 30 May 2019, that he had retired and
was winding down his practice
and sent to them the following:
(a)
Trust resolution.
(b)
Copy of original D/T33049/2014.
(c)
Power of Attorney with draft notarial agreement
annexed to register the servitude in general terms for signature.
(d)
General plan to be annexed to Not. Agmt.
28.
Since
he did not have authority to appoint a surveyor to survey the
servitude area he would proceed to have the servitude registered
in
general terms as per description in the drafts.
[20]
The following day on 31 May 2019, the first Respondent sent an email
to Mr. Steyn De Villiers indicating that he was no longer
prepared to
approve of or sign any servitude in favour of erf [....].
[21]
29.
Mention must be made that the notarial deed
of servitude, as drafted by Steyn De Villiers, entitled erf [....] a
right of way 3m
wide over erf [....] to give vehicle access to a
servitude of a double garage parking area 6x6 metres on erf [....].
The
concerns of the Applicants were taken on board in that they
reserved the right to extend the balcony to the north of the dwelling
over the width of the house and to construct a column on the western
boundary for as long as it did not interfere with the use
of the
servitude.
30.
On 12 June 2019, the Respondents’
lawyers wrote to the Applicants’ lawyers and indicated that
while there is no registered
servitude over Erf [....] the parties
had an oral agreement to register one. They recorded that the
Applicants were reneging on
the agreement between the parties and
suggested three options, namely:
(a)
“
Proceeding with the registration of the
servitude, as originally agreed and intended, given that the
paperwork has already been
prepared;
(b)
Varying the terms of the existing agreement by
negotiation and agreement and proceeding with the registration of the
servitude;
or
(c)
As an
alternative to the registration of a servitude, by the parties
entering into a 99-year lease with rental and nominal amount
of R100
per annum to be paid by our client to your client.”
[22]
31.
The
first salvo was fired on 05 February 2020 when the Applicants’
Attorneys sent a letter to the Respondents’ Attorneys
intimating the commencements of the proceedings. On 11 February 2020,
the Applicants employed new lawyers, Knowles Husain Lindsay
Inc.
Despite being prepared to allow the Trust to continue utilizing the
garages, the Applicants were no longer willing to register
a
servitude over their property. They had changed their mind.
[23]
THE ISSUE OF
SEWERAGE
32.
With the result of the development in the
area, the Municipality instructed the owners of Keurbaai to
disconnect their sewerage
system from the old septic tanks and
connect their plumbing system into the municipal wastewater system.
Again the parties were
involved in another skirmish because the
second Respondent refused the first Applicant entry into the garages.
As this would become
important later, it is worth mentioning that he
stated the following:
“
In
the interim, I wish to reiterate that you may not gain entry into my
garage without my consent to do so, and further not engage
with those
in my employ to do so without my permission.”
[24]
33.
In
response the first Applicant reminded the second Respondent that the
first Respondent had already acknowledged their ownership
of the
garages. Erf [....] has a servitude registered on it in favour of erf
[....] for the passage of or provision of water,
sewerage
drainage, electricity and other services, including telephone, radio
and television services, and through or by means
of pipes, wires,
cables or ducts existing in or under within erf.
[25]
This was inserted when the Shareblock Company decided to subdivide
the consolidated erf. I was informed during the hearing that
this
issue has become moot. The Applicants’ Counsel submitted that
there was no need for me to waste time on this issue as
it had become
peripheral. Both the Applicants’ sewerage and Trust property’s
eastern sewerage systems have already
been connected to the new
system. I, therefore, make no pronouncement on this issue.
ADDRESS BY THE
PARTIES AND THE LAW
34.
The
Applicants argued that this matter does not fall under the
Prevention
of Illegal Eviction from and Unlawful Occupation of Land Act 19 of
1998
.
Counsel for the Applicants referred to the matter of
Barnet
and another v Minister of land affairs and others
[26]
in
which the Court stated the following:
“
This
leads to the next question: can the cottages on the sites that were
put up by the defendants for holiday purposes be said to
be their
homes, in the context of PIE? I think not.”
[27]
35.
The Court said PIE only applied to the
eviction of persons from their homes. The term home required an
element of regular occupation,
coupled with some degree of
permanency. Cottages erected for holiday purposes and visited
occasionally over weekends and during
vacation by persons who have
their habitual dwellings elsewhere did not qualify as homes in the
context of PIE. If PIE does not
apply to an eviction from a cottage
used for holiday purposes, it, certainly, cannot apply to an eviction
from a holiday home’s
garage. Anyway, this issue was not
pursued by the Respondents’ Counsel.
36.
The
Applicants’ Counsel submitted that the Respondents repudiated
by refusing to recognize their ownership of the garages.
He indicated
that the Applicants were amenable but had not agreed to the
registration of a servitude.
[28]
However, they had changed their minds and intended to use the garages
to build additional rooms.
[29]
37.
Responding to a question from the Court
about the cancellation of the contract, Counsel for the Applicants
submitted that the Applicants
did not cancel nor terminate the
agreement, but reserved the right to terminate on reasonable notice.
As stated above, he argued
further, the Respondents’ refusal to
acknowledge the Applicants’ ownership of the garages amounted
to a repudiation
which the Applicants accepted and terminated for the
first time in the founding affidavit, at paragraph 147.3.
38.
To use his words, he submitted that the
Applicants did not say the Respondents should get out tomorrow or in
a years’ time.
In essence his submission was that the
Applicants always remained the owners of the garages subject to a
personal right terminable
on reasonable notice. However, things had
changed and the Applicants wanted to get the value of their property;
in the same way
the Respondents wanted to get the value of their
property by not clearing up the bushes, because they wanted privacy.
The Applicants
were no longer willing to register the servitude, and
they did not have any legal obligation or agreement, as the agreement
was
not in writing.
Section 2(1)
of the
Alienation of Land Act 68 of
1981
had not been complied with.
39.
The Applicants had a
legal right to terminate on reasonable notice if and when they wanted
to start renovating, argued the Applicants’
Counsel. At best,
he submitted, the Respondents could continue to use the garages if
there is no termination. This is in line with
paragraph 74 in the
founding affidavit in which the Applicants mentioned their
preparedness to allow the Trust to continue utilizing
the garages
until the commencement of the garage development. To me, it is clear
that the Applicants wanted a way to justify terminating
the
status
quo
.
40.
Addressing
the issue of repudiation, the Applicants’ Counsel referred to
the matter of
Datacolor
International (Pty) Ltd. v Intamerket (Pty) Ltd.
[30]
The
Court in
Datacolor
repeated
that the test for repudiation is not subjective but objective. A
notional reasonable person in the position of the Applicants
needs to
also arrive at the conclusion that the Respondents repudiated.
Therefore, the question is did the refusal by the second
Respondent
to allow the Applicants to access the garages amount to a
repudiation?
The
Applicants understood the refusal by the Respondents to grant them
access to the garages, acknowledge their ownership of the
garages and
to terminate on a reasonable notice to amount to a repudiation. In
the matter
of
Datacolor
International (Pty) Ltd. v Intamerket
[31]
(Pty)
Ltd
the
Court held:
“
Where
one party to a contract, without lawful grounds, indicates to the
other party in words or by conduct a deliberate and unequivocal
intention no longer to be bound by the contract, he is said to
“repudiate” the contract ... Where that happens, the
other party to the contract may elect to accept the repudiation and
rescind the contract. If he does so, the contract comes to
an end
upon communication of his acceptance of repudiation and rescission to
the party who has repudiated ...”
[32]
41.
Finally,
he submitted that even if there was an agreement it was inchoate,
because it lacked the essentialia of a servitude. Hence,
he submitted
that to grant the counter-application would amount to giving a blank
cheque, as there was no agreement on the diagram
and the services of
a surveyor had not been secured. The argument goes, the first
Respondent, a billionaire who purchased three
properties in
Plettenberg Bay simply for the purpose of protecting the view of his
second holiday home,
[33]
can
afford to build garages on erf [....]. Ultimately, it was
submitted, the Trust needs to clear up the garden and have
a parking
area. Only in the replying affidavit do the Applicants raise the
issue of prescription, however, it was not pursued.
42.
In the same way a servitude was registered
for the water reticulation, servitudes for the right of way and use
of garages were supposed
to have been registered. The Respondents’
failure to strike whilst the iron was still hot led to the
Applicants’ volt
face. By any means the Applicants wanted out
of the agreement. Hence, they argued that there was an inchoate
agreement, and yet
their pivotal point is repudiation. It begs the
question can one repudiate a non-existent contract? Further, the
Applicants on
more than one occasion insisted that they had changed
their minds. Facts changed agreements change, said the Applicants’
Counsel.
43.
In examining the
purported repudiation, I need to look at the two parts that have been
said to make up an act of repudiation. Dealing
with this issue, the
Court in
Datacolor
said the following:
“
Repudiation
has sometimes been said to consist of two parts: the act of
repudiation by the guilty party, evincing a deliberate and
unequivocal intention no longer to be bound by the agreement, and the
act of his adversary, “accepting” and thus completing
the
breach. So for example Winn LJ remarked in Denmark Productions
Ltd v Boscobel Productions Ltd
[1969]
1 QB 699
at
731F-732A:
“
Where
A and B are parties to an executory contract, if A intimates by word
or conduct that he no longer intends, or is unable, to
perform it, or
to perform it in a particular manner, he is, in effect, making an
offer to B to treat the contract as dissolved
or varied so far as it
relates to the future. If B elects to treat the contract as thereby
repudiated, he is deemed, according
to the language of many decided
cases, to ‘accept the repudiation’ and is thereupon
entitled (a) to sue for damages
in respect of any earlier breach
committed by A and for damages in respect of the
repudiation, (b) to refrain from himself
performing the contract any
further.”
[34]
44.
In
casu,
the
parties regarded the western garages as belonging to the Trust,
hence, the improvements thereon. Fact you basically own the
western
garages and are hence entitled to a servitude, said the Applicants.
It cannot come from the mouths of the Applicants that
the
Respondents’ assertion of ownership of the garages amounts to a
repudiation. Upon a proper analysis of the facts, it
could not have
been intended to deprive erf [....] of garages and grant erf [....]
four garages. Even the location of these garages
bear testimony to
the fact that they were intended to service erf [....]. The simple
truth is that they changed their minds. Repudiation
is simply a ruse
to deal with their failure to give reasonable notice and ultimately
compensation. Hitherto, the Respondents are
in lawful occupation of
the garages. Accordingly, I regard this argument to be without
substance.
45.
Relying
on
Seale
and Others v Minister of Public Works and Others
[35]
,
Counsel
for the Applicants argued that at best this was an agreement to
agree. In that instance the Court in
Seale
held
the following:
“
Our
law in respect of the enforceability of an agreement to agree
developed in the following manner. In Premier of the Free
State
Provincial Government and Others v Firechem Free State (Pty)
Ltd.
2000
(4) SA 413
(SCA);
[2000]
3 All SA 247
(A)
at 431G-H Schutz JA said, with reference to earlier authority, that
‘an agreement that the parties will negotiate to conclude
another agreement is not enforceable, because of the absolute
discretion vested in the parties to agree or disagree’.
In Southernport
Developments (Pty) Ltd v Transnet Ltd
2005
(2) SA 202
(SCA);
[2005]
2 All SA 16
(SCA)
at 208C-D Ponnan AJA, writing for the court, held that
the dictum in Firechem is not applicable to a
contract that contains what he referred to as a deadlock-breaking
mechanism. By that he meant provisions that prescribe further
steps
to be followed in the event of the failure of the negotiations.”
[36]
46.
He concluded that, in
this case, the contract is unenforceable because there is no
deadlock-breaking mechanism such as the one mentioned
in
Seale’s
case, where the Court
held:
“
Letaba
Sawmills (Edms) Bpk. v Majovi (Edms) Bpk.
[1992]
ZASCA 195
;
1993
(1) SA 768
(AD);
[1993]
1 All SA 359
(A)
provided an example of such a deadlock-breaking mechanism. There an
option to renew a lease on the basis that in the event of
the parties
failing to agree on the rental, a market-related rental would be
determined by arbitrators, was held to be
enforceable. Southernport similarly
dealt with an option to
lease specified properties (or agreed portions thereof) ‘on the
terms and conditions . . . negotiated
between the parties in good
faith’. The court held at 211F-G that the enforceability of the
option had been saved by a provision
that should the parties be
unable to agree on any of the terms and conditions, the dispute would
be referred to an arbitrator whose
decision would be final and
binding.”
[37]
47.
Referring
to,
inter
alia
,
Thorpe
and Others v Trittenwein and Another
[38]
,
he
argued that the Trust did not give the first Respondent (Mr. Mntambo)
the authority to act on its behalf nor did other trustees
give their
signatures. Unlike in partnerships where one partner can bind the
rest of the partners trust have to act jointly unless
the trust deed
says otherwise. If regard is heard to the fact that Steyn De Villiers
was in possession of the Trust resolution,
this argument, as pointed
out by the Respondents’ Counsel, is a non-starter. Finally, he
argued that at the date at which
Mr. Mntambo purported to reach this
agreement the trust did not own the property. It was owned by the
Shareblock Company. The Respondents’
Counsel made short work of
this argument by pointing out that this is in consistent with the
facts of the case, the Applicants
allowed the Respondents to continue
using the garages.
48.
Respondents’
Counsel seized on the submission, made by the Applicants’
Counsel, that the Applicants did not cancel nor
terminate the
agreement but there was a repudiation. Relying on
Myaka
v Havemann and Another
[39]
and
Chetty
v Naidoo
[40]
,
he pointed out that the agreement was still in existence for the
Respondents to make use of the garages. Therefore, the Applicants
did
not meet the requirements of a
rei
vindicato
.
49.
The
Court dealing with the subject of eviction in
ACSA
v Exclusive Books
[41]
held
the following:
“
It
is trite that when claiming eviction an owner must aver and prove its
ownership and that the occupier is in possession. If the
owner
alleges more than is necessary to vindicate its property, as ACSA did
by alleging that the lease had been terminated on one
month’s
notice, it must show that the termination was lawful. In Myaka v
Havemann10 Davis AJA settled some uncertainty in
this regard by
approving statements of Hathorn JP in Karim v Baccus11 and Greenberg
J in Boshoff v Union Government, that once
an owner has admitted to
parting with possession by virtue of an agreement such as a lease, or
a sale on instalments, he is bound
by the admission, and bears the
onus of proving that the reason for the possession has come to an
end. The owner must prove lawful
termination.”
[42]
50.
In
casu
,
The Applicants categorically stated that they had not terminated nor
cancelled the contract. If anything there was a repudiation.
It
stands to reason that the Respondents are still in lawful occupation
of the garages. In fact at paragraph 74 of the founding
affidavit the
Applicants mentioned that they are prepared to allow the Trust
continue utilising the garages until they decide to
commence the
development of the garages.
[43]
Referring to the
locus
classicus
Chetty
v Naidoo
,
the Court in
ACSA
stated
the following:
“
The
incidence of the onus was discussed in depth by Jansen JA in Chetty v
Naidoo, which confirmed the correctness of the approach
in Myaka. He
said: ‘It is inherent in the nature of ownership that
possession of the res should normally be with the owner
and it
follows that no other person may withhold it from `the owner unless
he is vested with some other right enforceable against
the owner (eg
a right of retention or a contractual right). An owner, in
instituting a rei vindicatio, need, therefore, do no more
than allege
and prove that he is the owner and that the defendant is holding the
res – the onus being on the defendant to
allege and establish
any right to continue to hold against the owner . . . But if he goes
beyond alleging merely his ownership
and the defendant being in
possession (whether unqualified or described as “unlawful”
or “against his will”)
other considerations then come
into play.
If
he concedes in his particulars of claim that the defendant has an
existing right to hold (eg, by conceding a lease or hire-purchase
agreement), without also alleging that it has been terminated . . .
his statement of claim obviously discloses no cause of action.
If he
does not concede an existing right to hold, but, nevertheless, says
that a right to hold now would have existed but for a
termination
which has taken place, then ex facie the statement of claim he must
at least prove the termination, which might, in
the case of a
contract, also entail proof of the terms of the contract.’
[44]
51.
The
Applicants have gone beyond merely alleging ownership and possession
by the Respondents. I, therefore, agree with Counsel for
the
Respondents that the Applicants have failed to show that the
Respondents are in unlawful occupation of the garages. The only
time
the termination is alleged is on the founding affidavit at paragraph
147.3. Counsel for the Applicants submitted that it is
sufficient to
give notice of termination of an agreement between the parties in
their founding affidavit. To this end he relied
on
Win
Twice Properties (Pty) Ltd v Binos and Another,
[45]
which stated that at common law notice of cancellation could be
communicated in a pleading or application.
52.
The parties requested to file supplementary
heads of argument in order to address the issue of termination that
appears for the
first time in the founding affidavit. What is
patently obvious is that no reasonable notice can be talked of. The
Win Twice Property
case
would only shoot into prominence if the Court agreed with the
Applicants that there was a repudiation. Since I have already
rejected this submission it would be an exercise in futility to look
at
Win Twice Property
case.
53.
For the mere fact that the Applicants rely
on repudiation was a clear indication that an agreement existed
between the parties,
the Respondents’ Counsel submitted. He
argued that the Applicants had not exercised one of the two choices
following a repudiation,
namely; to accept the repudiation and
terminate the contract or to reject the repudiation and enforce the
contract. This submission
is incorrect if one has regard to paragraph
147.3 of the founding affidavit. Nonetheless, upon applying an
objective test, referred
to in
Datacolor
case, on the facts, I found that there was no
repudiation. Therefore, the Applicants could not evict the
Respondents from using
the garages.
54.
It
is trite that in order to succeed in an interdict a party needs to
prove a clear right, injury actually committed or reasonably
apprehended and lack of an adequate alternative remedy. In short the
requirements mentioned in
Setlogelo
v Setlogelo.
[46]
Apart
from that the Applicants have an alternative remedy, they cannot
prove any injury actually committed or reasonably apprehended
when
they permitted the Respondents to occupy the garages, which they said
belong to them. Accordingly, the Applicants cannot also
succeed to
interdict the Respondents from using the garages.
55.
The long and short of Counsel for the
Respondents’ submission was that the arrangement between the
parties was never subject
to the lifting of the restrictions on the
development. Therefore, the Applicants could not change their minds
and want to build
a swimming pool or a flat.
56.
I agree with this submission that even the
failure to produce the document requested by the Respondents was not
material because
the Applicants mentioned that it was a condition of
their purchase of the property to grant the owner of erf [....]
access to the
garages. They are the ones who referred the Respondents
to Steyn De Villiers, a notary public. The Applicants informed De
Villiers
that they were happy to proceed with a verbal description. I
am persuaded that the conspectus of evidence points to an agreement
to register a servitude in order to formalize the
de
facto
recognition of the Respondents’
ownership of the garages. However, the question still remains was
this an inchoate agreement?
57.
Turning to the Applicants’ submission
that the agreement was inchoate because the parties had not drafted
the diagram nor
employed a surveyor, Counsel for the Respondents
argued that those were the nitty-gritties of the implementation of
the agreement.
The first Applicant told Steyn De Villiers that he was
happy to go along with the verbal description. The Respondents’
Counsel
hit the nail on the head that as a result of the limitations
being uplifted the Applicants considered expanding the house and that
is when they changed their minds.
58.
He submitted that the Applicants accepted
the Respondents’ ownership of the garages, otherwise they would
not agree to grant
a servitude to the garages if there was no
permission to utilise the garages. Puzzlingly, the Respondents’
Counsel submitted
that the Respondents did not ask for a servitude
over the garages but over the driveway to access the garages. This
argument does
not dovetail with the email sent by the first
Respondent, on 28 December 2018, in which he acknowledged that the
garages belonged
to the Applicants. Hence, the first Respondent
suggested that the servitude be registered over the garages and the
parties discuss
the terms and conditions around the driveway. Even
Steyn De Villiers’ proposal involved registering a 6m x 6m
servitude over
the garages.
59.
The
parties seemed to use personal servitude and praedial servitude
interchangeably. As much as both these are real rights, they
differ
in their application and impact. To put this issue into perspective,
reference must be made to the matter of
Ex
Parte Geldenhuys
[47]
where the Court said:
“
One
has to look not so much to the right, but to the correlative
obligation. If that obligation is the burden on the land, a
subtraction
from the dominium the corresponding right is real and
registrable; if it is not such an obligation, but merely an
obligation binding
on some person or other, the corresponding right
is a personal right or right in personam, and it cannot as a rule be
registered”
[48]
60.
Therefore, our Courts have developed a
two-fold test to establish whether a condition is registrable on the
Deeds office. These
are:
(a)
The subtraction from the dominium test; and
(b)
The question whether or not the parties had the
intention that the condition should bind both the present and the
successors in
title.
61.
Our
law makes a distinction between a personal servitude and a praedial
servitude. In short a personal servitude is a servitude
registered
against land in favour of a natural or other person. Therefore, it is
a real right granted to the holder thereof in
his or her personal
capacity the right to do something on someone else’s property,
or to prevent the land owner from exercising
some or other ordinary
powers as the owner thereon.
[49]
It is for the life span of the holder thereof who enjoys it in his
personal capacity.
62.
Generally personal servitude are created by
a bilateral notarial deed (signed by both the giver and the recipient
of the servitude)
which is registered in the Deed’s registry.
However they can be created by a Court order or even by prescription
where a
person has openly exercised the right of servitude holder, as
if he was entitled thereto, for an uninterrupted period of 30 years.
(“nec vi, nec claim, nec precario” i.e. without force
without secrecy and without permission)
63.
Whereas a praedial servitude involves two
properties, the land entitled to the benefit from the servitude is
called the dominant
tenement and the land burdened by the servitude
is called the servient tenement. The registered servitude is enjoyed
by the registered
owner of the dominant tenement in his capacity as
the owner of such tenement. Therefore, a praedial servitude usually
continues
ad infinitum
and
is a servitude in favour of another piece of land not in favour of
another person.
64.
Both
the praedial and the personal servitudes are real rights; therefore,
enforceable between the parties and also against third
parties. A
servitude holder’s right is absolute and is enforceable against
the whole world. Through the letter written by
the Respondents’
erstwhile Attorneys Britain the Respondents were enforcing a praedial
servitude. As is the case with personal
servitudes praedial
servitudes are created by an agreement between the owners of the
respective properties and are registered by
means of a bilateral
notarial deed. Of significance is that a valid
causa
(legal
ground) is required for the registration of a servitude, for example
a sale, donation, exchange, partition agreement or testamentary
bequest.
[50]
65.
Praedial servitudes may be described in
three different ways namely;
(a)
By servitude diagram;
(b)
By description; or
(c)
In general terms.
66.
The parties should be properly described
and the land affected by the servitude must be sufficiently described
including the terms
and conditions to which the servitude are
subject. These must be set out in the deed for example who is
responsible for the maintenance
of the servitude area and at whose
expense, restrictions of use and the manner in which the parties
ought to conduct themselves
and the costs of registration. In
casu
,
these requirements have not been complied with. To succeed in the
counter-application, as I see it, the Respondents need to skip
over
two hurdles, namely:
(a)
The argument that this was an inchoate
agreement/agreement to agree.
(b)
Section 2
(1) of Alienation of the Land Act 68 of
1986 which reads thus:
“
Formalities
in respect of alienation of land
(1)
No alienation of land after the commencement of
this section shall, subject to the provisions of section 28, be of
any force or
effect unless it is contained in a deed of alienation
signed by the parties thereto or by their agents acting on their
written
authority.”
67.
Focusing on Section 2(1) of ALA, Counsel
for the Respondents referred to the definition of alienation under
Section 1 of the Act
which reads as follows:
“‘
alienate’,
in relation to land, means sell, exchange or donate, irrespective of
such sale, exchange or donation is subject
to suspensive or
resolutive condition, and ‘alienation’ has a
corresponding meaning.”
68.
Referring
to
United
Building Society Limited v Du Plessis,
[51]
Counsel
for the Respondents maintained that Section 2(1) of ALA did not
apply; since the agreement between the parties neither fell
under a
sale, nor an exchange or a donation of land. Therefore, the agreement
does not have to be in writing. The Applicants’
Counsel argued
that the
United
Building
case
is distinguishable because it dealt with an insolvent estate in which
the United Building Society already had a real right
as mortgage bond
holder.
69.
I agree with the Applicants’ Counsel that a
case on point in this matter is Van Rensburg and Another v Koekemoer
and Others,[52]in
which the Court held:
“
Once
it is concluded that a servitude such as
habitatio
or
usus
or
usufructus
constitutes
a subtraction of the dominium in land it follows that any agreement
granting such right has to be in writing and signed
by the parties
upon pain of being declared invalid in terms of the aforesaid
sections. For the same reasons, mineral rights are
also to be in
writing to be valid.
6
Units
in a sectional titles scheme are also defined as "land" in
section 1
of the
Alienation of Land Act. All
formalities pertaining
to the sale and purchase of units have to comply with section 2(1) of
the Act. In the light of these analogous
situations, it seems
incongruous
that a servitude of
habitatio,
usus
or
usufructus?
orally
concluded can be valid and enforceable. In each instance there is a
measure of depravation of the owner's title to the immovable
property. As such they have to be in writing and signed by the
parties to have any force whatsoever,
”
[53]
70.
Even
if Counsel for the Respondents is correct that Section 2 (1) of the
Act does not apply, I still cannot ignore what was stated
in
Baron
Investments
(Pty)
Ltd v West Dune Properties 296 (Pty) Ltd and Others
.
[54]
The
Court said:
“
To
order a new servitude to be registered, without the consent of the
owner of the land (the Appellant) as requested by the Respondents
in
this matter, is to deprive the owner of a portion of his property,
without any compensation therefor. This would be contrary
to the
provisions of s 25 (Bill of Rights) of the Constitution. Even in the
case where a portion of land is taken away as a via
necessitate, the
Supreme Court of Appeal has held that adequate compensation therefor
should be paid.”
[55]
71.
There is substance in
the submission that the agreement was inchoate. I cannot turn a blind
eye to the proposals and counter proposals
between the parties. On 28
December 2018 the Applicants made certain overtures geared towards
finding a solution. On 12 June 2019
the Respondents, through their
lawyers responded with no less than three alternative solutions to
the problem. Therefore, the parties
had not exhausted their search
for a solution to ratify the agreement between man and man following
their failure to capture and
reflect the design in the Shareblock
scheme during the subdivision.
72.
In their submission for the relief, Counsel
for the Respondents referred me to the notarial deed of servitude
drafted by De Villiers.
In contradiction to the Respondents’
case, De Villiers creates a 6 x 6 metres double garage servitude over
and above a 3
metre wide right of way servitude. In this instance
Seale and Others v
Minister of Public Works and Others, supra,
is
instructive. The Court said if the intention is to constitute a
specific right of way, until the route is agreed upon the agreement
is inchoate. What the Respondents’ Counsel referred to as
merely nitty-gritties, indeed are nitty-gritties needed in order
to
succeed in the counter-claim. Accordingly, I cannot order the
registration of the notarial deed of servitude.
CONCLUSION
73.
To sum the entire matter up, the
Respondents’ lackluster handling of this matter and the
Applicants’ volt face have
costed both parties a fortune. It is
trite and a truism that the Courts cannot create contracts for the
parties. In this instance
the Court was called upon to cancel and in
the same breath enforce the same contract because the Applicants
failed to cancel it
timeously and the Respondents failed to enforce
it timeously.
74.
The purchasers of erf [....] could not have
purchased a house without garages. It is an accident of history and
design that the
garages were located on erf [....]. For the owners of
erf [....] to want to benefit from a design flaw amounts to inequity,
to
say the least, especially when they knew about the condition when
they purchased the property. The result of this judgment is that
the
status quo
remains.
Therefore, the ball is in the court of the parties to allow common
sense to prevail. Good neighbours make good fences.
COSTS
It is trite that costs
are in the discretion of the Court. I do not see any reason why any
of the parties should bear the costs
of this application.
ORDER
In the result the
following order is made;
1.
The Applicants’ application is dismissed.
2.
The Respondents’ counter-application is
dismissed.
3.
Each party is ordered to bear its own costs.
MOTHA AJ
ACTING JUDGE OF THE HIGH
COURT
GAUTENG LOCAL DIVISION OF
THE HIGH COURT, JOHANNESBURG
Date
of hearing: 18 May 2022
Date of judgment: 11
August 2022
Appearances:
For
the Applicants: Adv. J.M. Hoffman
(Instructed by: Egon A.
Oswald Attorneys)
For the Respondents: Adv.
Kennedy Tsatsawane SC
(Instructed by: Knowles
Husain Lindsay Inc.)
[1]
Respondents’
Answering Affidavit para22 (001-123 Case Lines)
[2]
FA
para 23 (001-8)
[3]
Supra
para24 (001-124 CaseLines)
[4]
Annexure
FA5 (001-46)
[5]
Annexure
FA5 (001-48)
[6]
Email
by Leonard Stoch (001-52 CaseLines)
[7]
Annexure
FA6 (001-51 CaseLines)
[8]
Supra
[9]
Email
from Vincent Mntambo (001-52 CaseLines)
[10]
Email
dated 23 April 2014 (001-51 CaseLines)
[11]
Annexure
FA9 (001-53 CaseLines)
[12]
Email
by Leonard Stoch (001-53 CaseLines)
[13]
Annexure
ZM 14 (001-205 CaseLines)
[14]
Annexure
FA11 (001-56)
[15]
Annexure
12 (001-57 CaseLines)/Also on 001-74
[16]
Email
(001-73 CaseLines)
[17]
Supra
[18]
Annexure
FA14 (001-58 CaseLines)
[19]
Annexure
FA15 (001-59 CaseLines)
[20]
Email
by De Villiers (001-76 CaseLines)
[21]
Annexure
FA16 (001-62 CaseLines)
[22]
Annexure
FA18 (001-66 CaseLines)
[23]
FA
PARA102 (001-27 CaseLines)
[24]
Annexure
FA 25 (001-97 CaseLines)
[25]
RA
par 43.8 (001-233 CaseLines)
[26]
2007
(6) SA 313 (SCA).
[27]
Supra
para 38
[28]
RA
par 78.2 (001-250 CaseLines)
[29]
Replying
Affidavit para 55.5 (001-239 CaseLines)
[30]
(2/99)
[2000] ZASCA 81
;
2001 (2) SA 284
(SCA);
[2001] 1 All SA 581
(A) (30
November 2000)
[31]
(2/99)
[2000] ZASCA 81
;
2001 (2) SA 284
(SCA);
[2001] 1 All SA 581
(A) (30
November 2000)
[32]
Supra
Para 16
[33]
Replying
and Answering Affidavit to Counter application para 22.3 (001-222
CaseLines)
[34]
Datacolor
para 1
[35]
(899/2019)
[2020] ZASCA 130
(15 October 2020)
[36]
Supra
par 28
[37]
Supra
par
29
[38]
2007
(2) SA 172
(SCA)
[39]
1948
(3) SA 457 (A)
[40]
1974
(3)SA 13 (A)
[41]
(945/2015)
[2016] ZASCA 129
(27 September 2016)
[42]
Supra
para 24
[43]
FA
para 74 (001-19 CaseLines)
[44]
Supra
para 25
[45]
2004
(4) SA 436 (W)
[46]
1914
AD 221
[47]
1926
OPD 155
[48]
Supra
at 164
[49]
Van
Der Merwe at 135-136
[50]
Van
Der Merwe at 136
[51]
1990
(3) SA 75
(W)
[52]
(2006/28207)
[2010] ZAGPJHC 91;
2011 (1) SA 118
(GSJ) (11 October 2010)
6
See
Silberberg and Schocman's 'The Law of Property" Fourth Edition,
p 336, note 101.
[53]
Supra
par 17
[54]
2014(6)
SA 286 (KZP)
[55]
Supra
par 96
sino noindex
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