Case Law[2022] ZAGPJHC 688South Africa
G v N : In re: N v G (2021/44477) [2022] ZAGPJHC 688 (6 September 2022)
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## G v N : In re: N v G (2021/44477) [2022] ZAGPJHC 688 (6 September 2022)
G v N : In re: N v G (2021/44477) [2022] ZAGPJHC 688 (6 September 2022)
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sino date 6 September 2022
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA,
GAUTENG
LOCAL DIVISION, JOHANNESBURG
CASE
NO: 2021/44477
REPORTABLE: NO
OF INTEREST TO OTHER
JUDGES: NO
6 September 2022
In the matter between:
G
[....], T [....] K
[....]
Applicant
And
N
[....], M
[....]
Respondent
In
re:
APPLICATION FOR RESCISSION
N
[....], M
[....]
Applicant
And
G
[....], T [....] K
[....]
Respondent
(This judgment is handed
down electronically by circulation to the parties’ 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 6
September 2022.)
JUDGMENT
MIA, J
[1]
The applicant seeks a rescission of the order granted by Segal J on
21 November 2021
where a decree of divorce was granted incorporating
a settlement signed by the applicant and respondent. The respondent
lodged
a counter application requesting the referral to oral evidence
in the rescission application. The respondent lodged a counter
application
requesting the dismissal of the application for
rescission of judgment. For the purposes of this matter, the parties
will be referred
to as in the application for rescission of judgment.
BACKGROUND FACTS
[2]
The
applicant
and respondent were married to each other in Mauritius, according to
the laws of Mauritius, on 21 July 2001 whilst on
holiday. They were
born and reside in South Africa. There are two children born of this
union, both children are major adults at
the time of the dissolution,
but are not self-supporting. The parties’ relationship broke
down and reached a state of disintegration
where they were they were
unable to restore the relationship. The applicant left the marital
home in October 2018 and had formed
a new relationship. Initially the
applicant resided in rented accommodation however, the applicant was
desirous of purchasing a
new home.
[3]
The parties discussed the separation of their estates and attempted
to settle the
matter. The applicant indicates that she considered a
draft agreement proposed by the respondent and proposed her
amendments to
the settlement. The respondent informed her that the
amendments were unnecessary and they could formulate a verbal
agreement to
accommodate her requirements. She signed the settlement
agreement based on the respondent’s assurance that it was
unnecessary
for her to approach a legal representative as it would
incur costs, whilst his legal representative was capable of advising
both
parties on how best to resolve the matter. He assured her his
legal representative would be in a position to finalise the divorce
on an unopposed basis. The respondent persuaded her that approaching
another legal representative which would increase the costs
in order
to alter the terms of the draft agreement. The applicant believing
that the respondent assured her he was disclosing all
the information
he would have to disclose in court and she had the best information,
persuaded the applicant to sign the settlement
agreement. He also
assured her that her amendments would be honoured despite not forming
part of the agreement. This agreement
was made an order of court.
After the divorce order was granted the respondent removed her from
his medical aid, and reneged on
the verbal agreements they had made.
[4]
According to the applicant, the agreements included motor vehicle
insurance, and he
requested that she obtain a quote for her car
insurance which he agreed to pay for. He also agreed to assist with
dropping and
fetching the children from Hartebeespoort where she
purchased a property and indicated he would afford the children the
use of
his motor vehicle. The respondent to agreed he would pay for
their cell phone contracts. According to the applicant, the
respondent
agreed to retain her as a dependent on his medical aid
until she could afford her own medical insurance. He also indicated
that
he would assist with the care of four of the parties’
seven cats. The respondent agreed to compensate her for household
contents
purchased during the subsistence of the marriage, and to
reimburse her for funds she had withdrawn from a pension fund to
avoid
her laying claim to his pension interest. The respondent
assured her that the verbal agreement need not form part of the
agreement
of settlement. To coerce her to sign the settlement
agreement he refused to provide her with a letter relating to the
former matrimonial
home until she signed the settlement agreement.
[5]
He also refused to provide her with funds to pay a deposit to
purchase the house in
Hartebeestpoort and indicated he would not
comply with the terms of verbal agreement in the absence of her
signing the agreement.
The applicant believed that the respondent
would adhere to the verbal agreement and signed the agreement of
settlement presented
by the respondent.
[6]
On the respondent’s version of the context to the settlement
agreement, the
parties had long separated their personal and
household
effects
and
established separate homes. Their relationship was good and they were
transparent with each other. They agreed about the financial,
proprietary and maintenance aspects. They only needed assistance to
reduce the agreement to writing. He indicates that they were
provided
with a template and advised to seek the advice of an attorney with
specialist knowledge because they were married in a
foreign
jurisdiction. He was assisted by a friend, however, he maintains that
both he and the applicant they both contributed to
the Draft
Settlement Agreement, which passed between them with amendments. He
refers to the thread of emails and the amendments
suggested by the
applicant indicating that she was fully engaged during the drafting
and negotiation process.
[7]
He contends further, that the agreements outside of the settlement
agreement were
merely transitional and supplementary agreements and
were not substantial. He refers to supplementary arrangements
relating to
medical aid and insurance of the applicant’s
vehicle. According to the respondent, the applicant’s view
regarding the
settlement changed once she ascertained that he was in
a serious relationship. The respondent contends that the applicant
had obtained
legal advice after the signing of the first settlement
agreement. The concerns that she had could have been raised before
signing
the second settlement agreement. The applicant, in his view,
was being dishonest in claiming that she had not received legal
advice
and that she was misled and coerced into signing the second
settlement agreement.
[8]
Counsel for the applicant argued that the applicant was prejudiced
when the respondent
made the settlement agreement an order of the
court without incorporating the verbal agreements. The respondents
request to refer
the matter to oral evidence does not assist as this
raises further issues and amounts to a concession that there are
issues in
dispute. Counsel submitted that the applicant has
demonstrated based on the admissions made by the respondent that
there is a satisfactory
explantion why the judgment was granted by
default. On the merits there there are dispute regarding the marital
regime whether
the parties are married according to the laws of
Mauritius as the respondent believed or whether South African law
governs the
parties marriage. The respondent relied on the opinion of
his legal adviser and the applicant having since obtained legal
advice
differs from this opinion.
[9]
The respondent was granted an unopposed divorce incorporating a
settlement agreement
concluded by the parties where they believed
that a particular regime was applicable. In this regard the
respondent believed Mauritanian
Law was applicable and persuaded the
applicant that this was the position, despite the parties being
domiciled in South Africa.
The applicant was unaware of the law
applicable, moreover the verbal agreements entered into did not form
part of the settlement
agreement.
[10]
In
Chetty
v Law Society, Transvaal
[1]
,
the court stated:
“
In
the Supreme Court, a judgment granted by default can be set aside in
terms of Rule 31 (2)
(b)
;
in terms of Rule 42 (1); and under the common law.
De
Wet and Others v Western Bank Ltd
1979
(2) SA at 1037H - 1038A. Neither Rule 31 (2)
(b)
nor
Rule 42 (1) has any application to the facts of the present
case. The appellant can only seek relief under the common
law. Under
the common law, a Court was empowered to rescind a judgment obtained
on default of appearance on sufficient cause shown.
This power was
entrusted to the discretion of the Court and no rigid limits were set
for the circumstances which constituted
sufficient cause.
Broadly speaking, the exercise of the Court's discretion was
influenced by considerations of fairness and justice,
having regard
to all the facts and circumstances of the particular case.
[10]
Counsel for the applicant had argued that insofar as the respondent
had requested that aspects
be referred to oral evidence, the
applicant had made out a case and specifically counsel referred to
aspects of the matter where
the respondent referred to issues which
the agreement falls outside of the settlement agreement. The facts
which supported the
rescission were
thus
that the respondent had advised the applicant that she did not
require her own attorney that he was capable of advising her on
how
best to resolve the matter on the basis that it would be finalized on
an unopposed basis, that approaching another legal representative
would incur further costs. Whilst the applicant and respondent could
reach separate verbal agreement regarding the amendments,
the
applicant required the respondent to make in relation to the
Settlement Agreement. The respondent made proposals to the applicant
regarding payment of insurance, regarding dropping and collecting of
the children. These agreements the respondent admits having
made and
he admits that the applicant wanted to seek out her own legal
representative. However, he denies that he advised her that
his
attorney was capable of assisting them to resolve the matter.
[11]
Counsel for the applicant argued that the application be dismissed
outright applying the
Plascon-Evans
Paints Ltd v Van Riebeeck Paints (Pty) Ltd
[2]
and
Stellenbosch
Farmers' Winery Group Ltd and Another v Martell et Cie and Others
[3]
decisions. The rule was revisited
Wightman
v Headfour
[4]
where
the Court stated:
“
[13]
A real, genuine and bona fide dispute of fact can exist only where
the court is satisfied that the party who purports to raise
the
dispute has in his affidavit seriously and unambiguously addressed
the fact said to be disputed. There will of course be instances
where
a bare denial meets the requirement because there is no other way
open to the disputing party and nothing more can therefore
be
expected of him. But even that may not be sufficient if the fact
averred lies purely within the knowledge of the averring party
and no
basis is laid for disputing the veracity or accuracy of the averment.
When the facts averred are such that the disputing
party must
necessarily possess knowledge of them and be able to provide an
answer (or countervailing evidence) if they be not true
or accurate
but, instead of doing so, rests his case on a bare or ambiguous
denial the court will generally have difficulty in
finding that the
test is satisfied. I say 'generally' because factual averments seldom
stand apart from a broader matrix of circumstances
all of which needs
to be borne in mind when arriving at a decision. A litigant may not
necessarily recognise or understand the
nuances of a bare or general
denial as against a real attempt to grapple with all relevant factual
allegations made by the other
party. But when he signs the answering
affidavit, he commits himself to its contents, inadequate as they may
be, and will only
in exceptional circumstances be permitted to
disavow them. There is thus a serious duty imposed upon a legal
adviser who settles
an answering affidavit to ascertain and engage
with facts which his client disputes and to reflect such disputes
fully and accurately
in the answering affidavit. If that does not
happen it should come as no surprise that the court takes a robust
view of the matter.”
[12]
Having regard to the verbal agreements which the respondent refers to
I am unable to find that
there are grounds to dismiss the application
as argued on behalf of the respondent. Counsel for the respondent
argued that in the
event that the application was not dismissed, that
this court should refer the issues in dispute to oral evidence. In
considering
this referral, there is the submission on behalf of the
applicant that the respondent should not cherry-pick which issue to
refer
to oral evidence. I have considered that in the present
circumstances the decree of divorce incorporating the settlement
order
was granted under circumstances where the respondent sought a
legal opinion and persuaded the applicant that the opinion was
correct.
There was no expert advice sought on the relevant marital
regime applicable as is evident from the papers. Furthermore, the
respondent
held out to the applicant a particular position with
regard to financial disclosure which was may have caused the
applicant to
make decisions differently to if she had more and
complete disclosure. The respondent appears to have changed a number
of the agreements
made prior to the settlement agreement being
concluded and upon which there was reliance placed by the applicant.
[13]
Having regard to the common law requirement I am satisfied that the
applicant has made out a
case on a balance of probabilities and
demonstrated that she has a reasonable explanation why the judgment
by default was granted.
On the merits there are issue that are in
dispute namely the marital regime that is applicable as well as the
financial disclosure
which was misrepresented. The respondent’s
conduct and reliance on an opinion induced the applicant to sign the
settlement.
Whether the settlement was signed under duress or the
applicant was misled it is apparent that the settlement agreement is
not
voluntarily signed by the applicant.
[14]
I am of the view that it would be inappropriate to refer certain of
the issue to oral evidence
where the parties have raised extensive
disputes on the matter. In the circumstances it is appropriate that
the matter be referred
back to the divorce court for determination.
ORDER
[15]
In the result I make the following order:
1.
The
judgment granted by Segal AJ on 12 November 2021 is hereby rescinded.
2.
The
respondent’s counterapplication seeking an order to refer the
rescission application to oral evidence is dismissed with
costs.
3.
The respondent is ordered to pay the applicant’s costs for the
rescission application
S
C MIA
JUDGE
OF THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Appearances:
On
behalf of the Applicant
:
Adv.
A Saldulker
(N [....])
Instructed
by
: Cuthbertson & Palmeira Attorneys Inc
On
behalf of the Respondents
: Adv J Kayser
(G
[....])
Instructed
by
: DHD Attorneys
Date
of hearing
: 23 August 2022
Date
of judgment
: 06 September 2022
[1]
Chetty
v Law Society Transvaal
[1]
1985(2) 756 (A) at 761b-e
[2]
Plascon-Evans
Paints Ltd v Van Riebeeck Paints (Pty) Ltd
[1984] ZASCA 51
;
1984
(3) SA 623
(A)
[3]
Stellenbosch
Farmers' Winery Group Ltd and Another v Martell et Cie and Others
2003 (1) SA 11
(SCA) at [5]
[4]
Wightman
v Headfour
2008(3) SA 371 (SCA) at [13]
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