Makhethe Cleaning Services (Pty) Ltd v National University of Lesotho (C of A (CIV) 62 of 2011) [2012] LSCA 29 (27 April 2012)
The High Court erred by dismissing the application without considering the request to refer the material dispute of fact to oral evidence or trial. Given the existence of a genuine dispute of fact, the appropriate order is to refer the matter to trial for resolution of the issues.
Source-derived case information.
- Citation
- [2012] LSCA 29
- Parties
- Appellant: Makhe The Cleaning Services (Pty) Ltd; Respondent: National University of Lesotho
- Court
- Court of Appeal
- Jurisdiction
- Lesotho
- Case Number
- C of A (CIV) 62 of 2011
- Procedural Posture
- Civil Appeal / Appeal From High Court Judgment
- Outcome
- appeal allowed
- Legal Topics
- Exclusive Service Contracts, Dispute of Fact, Referral to Trial, Motion Proceedings, Oral Evidence
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Makhe The Cleaning Services (Pty) Ltd
Appellant
National University of Lesotho
Respondent
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Legal Issues
- 1 Whether the appellant had an exclusive right to provide cleaning services to the respondent's campuses
- 2 Whether the High Court erred in dismissing the application without referring the dispute of fact to oral evidence or trial
Ratio Decidendi
The High Court erred by dismissing the application without considering the request to refer the material dispute of fact to oral evidence or trial. Given the existence of a genuine dispute of fact, the appropriate order is to refer the matter to trial for resolution of the issues.
Court Disposition
appeal allowed
Orders
- Order of the High Court set aside
- Matter referred to trial in terms of Rule 8(14)
Full Case Text
Judgment text and source record
1 paragraphs
IN THE COUR T OF AP PE AL OF LE S OTH O C OF A (CIV) NO. 6 2 / 2 0 1 1 In t h e m a t ter b etween : MAKHE THE CLE ANING SE R VICE S (P TY) LTD AP PE LLANT a n d NATIONAL UNIVE R S ITY OF LE S OTHO R E S P ONDE NT COR AM: RAMODIBE DI, P HOWIE , J A FARLAM, J A Hea r d : Deliver ed : 1 6 Ap r il 2 0 1 2 2 7 Ap r il 2 0 1 2 S UMMAR Y Pr a ct ice – Ap p lica t ion – d is p u t e of fa ct – ca s e r efer r ed for t r ia l. J UDGME NT F AR LAM, J A [1 ] Th e a p p ella n t in t h is ca s e, Ma k h et h e Clea n in g Ser vices (Pty) Ltd , b r ou gh t a n a p p lica tion in th e High Cou r t in J a n u a r y 2 0 0 9 s eek in g a n or d er : ‘(a ) Decla r in g th a t it h a s th e exclu s ive r igh t to ren d er clea n in g s er vices for a ll b u ild in gs on a ll th e ca m p u s es of th e Na tion a l th e fir s t res p on d en t, Un ivers ity of Les oth o; (b ) In ter d ictin g th e fir s t res p on d en t fr om s ign in g a n y n ew con tr a cts with oth er com p a n ies for th e clea n in g of its b u ild in gs on a ll its ca m p u s es ; In terd ictin g th e fir s t res p on d en t fr om ren ewin g (c) th e con tr a cts s ign ed with th ree oth er clea n in g com p a n ies , fou r th fir s t res p on d en ts , res p on d en t’s b u ild in gs on ce th e cu r ren t con tr a cts exp ire; a n d th ir d clea n in g of s econ d , th e th e for a n d th e (d ) Directin g th e fir s t res p on d en t [a n d th e oth er res p on d en ts if th ey op p os ed th e relief s ou gh t b y th e a p p ella n t] to p a y th e cos ts .’ [2 ] In t h e fou n d in g a ffid a vit ‘Ma p on tś o Ma t ob o, wh o is a d ir ector of t h e a p p ella n t , s a id t h a t in 2 0 0 2 t h e fir s t r es p on d en t a gr eed t o gr a n t to t h e a p p ella n t t h e exclu s ive r igh t r efer r ed t o in p a r a gr a p h (a ) of its n otice of m otion . S h e s a id t h a t in 2 0 0 2 t h e fir s t r es p on d en t d ecid ed to ter m in a te t h e s er vices of 3 6 of its em p loyees wh o wor k ed a s clea n er s a n d wer e em p loyed b y it a s ca s u a l la b ou r er s wit h n o p er m a n en t con tr a cts of em p loym en t a lt h ou gh t h ey h a d wor k ed for it for yea r s . Th e fir s t r es p on d en t , s h e s a id , p r om is ed t h es e em p loyees t h a t if t h ey for m ed a com p a n y it wou ld offer t h e com p a n y t h e exclu s ive r igh t to wh ich I h a ve r efer r ed . Th e fir s t r es p on d en t , s h e con tin u ed , a ls o offer ed t h e a ffect ed em p loyees b a s ic tr a in in g in t h e con d u ct of b u s in es s t h r ou gh its In s tit u te of E xtr a Mu r a l S t u d ies a n d h elp ed t h em t o in cor p or a t e t h e com p a n y a n d p r ovid ed it wit h its s ta r tin g ca p ita l t h a t wa s u s ed to b u y clea n in g equ ip m en t a n d m a t er ia ls . [3 ] S h e a p p en d ed a lis t of t h e for m er em p loyees of t h e fir s t r es p on d en t wh o s u b s cr ib ed t o t h e m em or a n d u m of a s s ocia tion of t h e com p a n y for m ed to give effect to t h e u n d er ta k in g m a d e b y t h e fir s t r es p on d en t . S h e s a id fu r t h er t h a t a fter t h e a p p ella n t wa s in cor p or a ted it r a tified t h e a gr eem en t . [4 ] In s u p p or t of t h es e a llega tion s s h e a n n exed a ffid a vits d ep os ed t o b y Dr . Tefet s o Mot h ib e, wh o wa s th e Vice Ch a n cellor of t h e u n iver s ity a t t h e tim e, a n d Dr . Nqos a Ma h a o, wh o wa s t h e u n iver s ity’s Pr o-Vice Ch a n cellor a t t h e tim e. Th ey b ot h con fir m ed wh a t s h e h a d s a id a b ou t t h e u n d er ta k in g given b y t h e u n iver s it y a n d t h e cir cu m s t a n ces in wh ich it wa s given . [5 ] In h is a ffid a vit Dr . Ma h a o s a id : ‘We ga ve on ly on e con d ition for th e com p a n y to en joy th e m on op oly of b ein g th e s ole p rovid er of clea n in g s ervices to th e u n iver s ity. Th a t con d ition wa s th a t th e p r ivileged m on op oly p r otection wou ld b e reviewed if th e com p a n y d elivered s ervice of a lower qu a lity th a n th a t p r ovid ed b y th e m em b ers th ereof wh en u n iver s ity.’ In t h e fou n d in g a ffid a vit Mr s . Ma t ob o s a id t h a t th e em p loy of th ey were th e in [6 ] t h e a gr eed r em u n er a tion p a id to t h e a p p ella n t b y t h e u n iver s ity wa s M5 .1 3 p er s qu a r e m etr e b u t t h a t la ter t h e u n iver s ity h a d , a s s h e p u t it , ‘u n ila t er a lly r ed u ced ’ t h e r a te t o M2 .9 3 p er s qu a r e m etr e. S h e a ls o s a id t h a t it h a d b een a gr eed t h a t t h e a p p ella n t wou ld n ot h a ve to t en d er for t h e wor k b u t t h a t t h e fir s t r es p on d en t h a d n ow m a d e wh a t s h e ca lled ‘a n a b ou t t u r n on t h e p r eviou s u n d er ta k in g’ b y n ot on ly r ed u cin g t h e p a ym en t r a te p er s qu a r e m etr e, a s p r eviou s ly s ta ted , b u t a ls o b y in s is tin g t h a t t h e a p p ella n t h a d to ten d er toget h er wit h ot h er clea n in g com p a n ies for clea n in g wor k t o b e d on e for t h e u n iver s ity. Fu r t h er m or e, con tr a r y t o t h e in itia l u n d er t a k in g given t o t h e a p p ella n t , t h e s econ d a n d t h ir d r es p on d en t s h a d b een given con tr a ct s to d o clea n in g wor k t h a t wa s s u p p os ed to h a ve b een d on e exclu s ively b y t h e a p p ella n t. [7 ] Th e fir s t r es p on d en t op p os ed t h e a p p lica t ion . Its a n s wer in g a ffid a vit wa s d ep os ed t o b y Mr s . ‘Ma m olik o Pu le, a d om es tic b u r s a r . S h e d en ied t h a t t h e u n d er ta k in g d ep os ed t o b y Mr s . Ma tob o a n d con fir m ed b y t h e Vice-Ch a n cellor of t h e u n iver s ity a t t h e r eleva n t tim e wa s given . S h e s a id t h a t a t t h e r eleva n t tim e t h e fir s t r es p on d en t d ecid ed t o ou ts ou r ce a ll t h e clea n in g s er vices a n d t h a t it a d vis ed its clea n er s , wh o wer e ‘ca s u a l la b ou r er s ’, to for m a clea n in g com p a n y wh ich wou ld b e a b le to ten d er for clea n in g wor k for t h e u n iver s ity. S h e s t a t ed t h a t d ecis ion s of t h e fir s t r es p on d en t a r e m a d e b y its cou n cil a n d t h a t t o t h e b es t of h er k n owled ge t h e cou n cil d id n ot d ecid e ‘t o gu a r a n tee p er p et u a l em p loym en t t o [t h e a p p ella n t] or its s h a r eh old er s a s a lleged b y [t h e a p p ella n t]. I wou ld h a ve b een n otified of s u ch a d ecis ion a s I wou ld h a ve b een t h e on e t o im p lem en t it in m y ca p a cit y a s Fir s t Res p on d en t’s Dom es tic Bu r s a r r es p on s ib le, in ter a lia , for over s eein g clea n in g s er vices of Fir s t Res p on d en t’s p r em is es .’ [8 ] To illu s tr a te h er p oin t t h a t fir s t r es p on d en t n ever p r om is ed t h e a p p ella n t t h e exclu s ive r igh t t o d o clea n in g wor k on a ll its ca m p u s es s h e s a id t h a t t h e fir s t r es p on d en t is s u ed a ten d er n otice for t h e clea n in g of it s Ma s er u IE MS ca m p u s a t t h e b egin n in g of 2 0 0 3 a n d t h a t t h e a p p ella n t t en d er ed wit h ot h er com p a n ies , in clu d in g t h e s econ d r es p on d en t , wh ich wa s t h e s u cces s fu l ca n d id a t e. [9 ] Mr s . Pu le a ls o s a id t h a t a fter op er a tin g fr om 2 0 0 2 t o 2 0 0 5 wit h ou t a wr itten con tr a ct wit h t h e fir s t r es p on d en t , wh a t s h e d es cr ib ed a s a ‘wr itt en a n d for m a l con tr a ct ’ wa s con clu d ed on 1 5 Ma r ch 2 0 0 5 t o op er a t e (r etr os p ectively) fr om 1 Ma r ch 2 0 0 5 to t h e en d of J u n e. [1 0 ] It wa s h ea d ed ‘Ap p oin t m en t Con tr a ct in t h e Rom a a n d IE MS Ca m p u s es ’ a n d r ea d a s follows : ‘I a m a u th or ized to offer you a s h or t ter m con tr a ct for th ree m on th s with retr os p ective effect fr om 1 s t Ma r ch 2 0 0 5 to en d of J u n e 2 0 0 5 , a t th e r a te of M3 .0 4 in clu s ive of VAT p er s qu a re m eter . Th is letter is s en t to you in tr ip lica te a n d if you wis h to a ccep t th e offer p lea s e retu r n to m e two cop ies d u ly s ign ed b y you a n d witn es s ed b y a n oth er p er s on in th e s p a ce p r ovid ed for th e p u r p os e. You r s S in cerely, A. M. MPHUTHING ACTING UNIVE RS ITY RE GIS TRAR’. It wa s exten d ed on 2 7 J u n e 2 0 0 5 u n til 3 1 Decem b er 2 0 0 5 . [1 1 ] A d ocu m en t h ea d ed ‘Mem or a n d u m of Un d er s ta n d in g (CONTRACT)’ wa s s ign ed b y t h e Regis tr a r on b eh a lf of t h e u n iver s ity a n d Mr s . Ma t ob o on b eh a lf of t h e a p p ella n t on 1 6 Decem b er 2 0 0 5 . It con ta in ed a cla u s e, h ea d ed ‘Na t u r e of Con tr a ct’ in wh ich it wa s s ta ted t h a t ‘t h e p u r p os e of t h e con tr a ct ’ wa s for t h e a p p ella n t t o p r ovid e clea n in g s er vices a t t h e Rom a ca m p u s of t h e u n iver s ity, wh ile ot h er p la ces wou ld b e clea n ed ‘on n egotia tion s b etween t h e Com p a n y a n d t h e Un iver s ity’. An ot h er cla u s e, h ea d ed ‘Un d er t a k in gs b y Com p a n y’ con t a in ed a n u n d er ta k in g b y t h e a p p ella n t to b e r es p on s ib le for d a ily clea n in g of s t a t ed b u ild in gs a n d t h eir im m ed ia te s u r r ou n d in gs a t t h e Rom a a n d Ma s er u ca m p u s es . [1 2 ] An ot h er cla u s e p r ovid ed t h a t t h e con tr a ct wou ld com e in to effect ‘on t h e d a y m en tion ed in t h e let t er of offer ’ a n d t h a t it wou ld ‘r em a in in for ce for a p er iod of twelve (1 2 ) m on t h s a t th e en d of wh ich it [wou ld ] exp ir e.’ A fu r t h er cla u s e p r ovid ed t h a t eit h er p a r ty m igh t ter m in a te t h e a gr eem en t b y givin g t h r ee ca len d a r m on t h s ’ wr it ten n otice of its in ten tion to ter m in a t e. [1 3 ] Mr s . Pu le a n n exed a fu r t h er let ter d a ted 9 J a n u a r y 2 0 0 6 , wh ich exten d ed wh a t wa s d es cr ib ed a s t h e clea n in g con tr a ct b etween t h e a p p ella n t a n d t h e u n iver s ity for a yea r , fr om 1 J a n u a r y 2 0 0 6 t o 3 1 Decem b er 2 0 0 6 a n d s t a t ed th a t ‘t h e ter m s a n d con d ition s of t h e exis tin g con tr a ct r em a in u n ch a n ged .’ In ter n a l u n iver s ity cor r es p on d en c e wa s a ls o a n n exed to Mr s . Pu le’s a ffid a vit , in d ica tin g a fu r t h er r en ewa l for a yea r u n til th e en d of 2 0 0 7 , a lt h ou gh n o cor r es p on d en ce b etween t h e u n iver s ity a n d t h e a p p ella n t or a con tr a ct u a l d ocu m en t , exten d in g t h e a gr eem en t , wa s a n n exed . [1 4 ] Mr s . Pu le a ls o s ta ted t h a t in Sep tem b er 2 0 0 7 t h e fir s t r es p on d en t in vited ten d er s for clea n in g s er vices . Th e s u cces s fu l ten d er er s , t o wh om con tr a cts , wh ich r a n fr om 1 J a n u a r y 2 0 0 8 t o 3 1 Decem b er 2 0 0 8 , wer e a wa r d ed wer e t h e a p p ella n t a n d t h e s econ d , t h ir d a n d fou r t h r es p on d en ts . As t h e u n iver s ity fa iled to in vite ten d er s t h r ee m on t h s b efor e t h es e con tr a cts exp ir ed t h e con tr a ct s wer e exten d ed t o 3 0 J u n e 2 0 0 9 . [1 5 ] As r ega r d s Mr s . Ma tob o’s a llega tion t h a t t h e u n iver s ity u n ila ter a lly r ed u ced t h e r a te p a ya b le Mr s . Pu le a d m it ted t h a t t h e a p p ella n t wa s in itia lly r em u n er a ted a t a r a te of M5 .1 3 p er s qu a r e m etr e. S h e s a id t h a t t h e s ca le ch a n ged wh en t h e a p p oin t m en t con tr a ct of 1 5 Ma r ch 2 0 0 5 , wh ich h a s b een qu oted a b ove, wa s con clu d ed a n d th e a p p ella n t wa s offer ed t h e n ew r a t e of M3 .0 4 in clu s ive of VAT p er s qu a r e m etr e, wh ich wa s a ccep ted b y t h e a p p ella n t . La t er , a s fr om t h e b egin n in g of J a n u a r y 2 0 0 8 , t h e r a te wa s r ed u ced t o M2 .9 3 p er s qu a r e m etr e in t er m s of t h e con tr a ct for 2 0 0 8 wh ich followed t h e a ccep t a n ce of t h e t en d er s t o wh ich I r efer r ed a b ove. [1 6 ] A fu r t h er a ffid a vit filed on b eh a lf of t h e fir s t r es p on d en t wa s d ep os ed to b y Mis s An n e Ma s efin ela Mp h u t h in g, r egis tr a r of t h e fir s t r es p on d en t, wh o wa s t h e r egis tr a r in 2 0 0 2 . S h e s a id t h a t a s t h e s ecr eta r y of t h e u n iver s ity’s cou n cil s h e is in p os s es s ion of a ll its m in u tes a n d r ecor d s a n d th a t n o d ecis ion or r es olu tion exis t s givin g t h e a p p ella n t t h e u n d er t a k in g or p r om is e t o wh ich Mr s . Ma tob o d ep os ed . S h e con tin u ed : ‘I a ccor d in gly d en y, on b eh a lf of Fir s t Res p on d en t , th a t Fir s t Res p on d en t “p r om is ed ” or th a t it lega lly a wa r d ed [th e a p p ella n t] or its m em b er s a con tr a ct to clea n Fir s t Res p on d en t’s p rem is es in p er p etu ity a s a lleged b y [th e a p p ella n t].’ s olely [1 7 ] S h e d en ied t h a t t h e u n iver s ity h a d p r ovid ed t h e a p p ella n t wit h its s ta r tin g ca p it a l wit h wh ich it p u r ch a s ed clea n in g equ ip m en t a n d m a ter ia ls . S h e s a id t h a t t h e u n iver s ity m a d e a loa n in t h is r ega r d t o t h e a p p ella n t , wh ich h a s n ot yet b een r ep a id . S h e a ls o d en ied t h a t t h e con ten ts of t h e a ffid a vits d ep os ed t o b y Dr . Mot h ib e a n d Dr . Ma h a o wer e cor r ect. [1 8 ] In h er r ep lyin g a ffid a vit Mr s . Ma tob o r eit er a ted wh a t s h e h a d s a id in h er fou n d in g a ffid a vit . S h e s a id t h a t t h e con tr a cts t o wh ich Mr s . Pu le r efer r ed wer e n ever exp la in ed b y t h e fir s t r es p on d en t n or u n d er s tood b y t h e a p p ella n t a s a n a b a n d on m en t of t h e or igin a l u n d er ta k in g. Th ey wer e u n d er s t ood to b e n eces s a r y for a ccou n tin g p u r p os es on t h e p a r t of t h e fir s t r es p on d en t a n d n o m or e. S h e a d m itt ed t h a t ten d er s wer e in vited in Sep tem b er 2 0 0 7 a n d s a id t h a t th is wa s in d ica tive of t h e la ck of b on a fid es on t h e p a r t of t h e fir s t r es p on d en t. S h e s ta ted t h a t t h e a p p ella n t ‘on ly ten d er ed ou t of fea r s of los in g ou t on t h e wor k a n d n ot b eca u s e it wa s a ccep tin g t h e fir s t r es p on d en t ’s r ep u d ia tion of t h e p a r ties ’ or igin a l a gr eem en t .’ [1 9 ] As fa r a s t h e r ed u ction of t h e r a te wa s con cer n ed s h e s a id t h a t t h is wa s im p os ed b y t h e fir s t r es p on d en t ‘wh ich exp loit ed t h e fa ct t h a t t h e [a p p ella n t’s ] b a r ga in in g p ower wa s vir t u a lly n il a n d t ook wh a tever wa s p a id t o it even if t h a t wa s in b r ea ch of exis tin g a gr eem en ts .’ S h e d r ew a t ten tion to t h e fa ct t h a t n eit h er Mr s . Pu le n or Mis s Mp h u t h in g wa s tes tifyin g fr om h er own k n owled ge t h a t t h e fir s t r es p on d en t h a d n ot given t h e a p p ella n t t h e u n d er t a k in g r elied on . S h e m en tion ed two p er s on s wh o h a d k n owled ge of wh a t h a p p en ed a n d wh o wer e s till a va ila b le b u t h a d n ot b een a s k ed b y t h e fir s t r es p on d en t t o m a k e a ffid a vits s et tin g ou t wh a t r ea lly h a p p en ed . [2 0 ] At t h e en d of h er a ffid a vit s h e a s k ed t h e cou r t ‘to r efer a n y m a ter ia l d is p u t es of fa ct t o or a l evid en ce s o a s t o es t a b lis h t h e tr u e fa cts in t h is m a t ter .’ [2 1 ] Th e a p p lica tion wa s h ea r d b y Gu n i J in th e High Cou r t , wh o d is m is s ed it wit h cos ts . Th e lea r n ed ju d ge fou n d t h a t t h e a p p ella n t h a d n ot p r oved t h e a gr eem en t on wh ich it r elied . S h e fou n d fu r t h er t h a t t h e a ffid a vits of t h e for m er Vice-Ch a n cellor a n d Pr o Vice - Ch a n cellor wer e n ot, a s s h e p u t it, h elp fu l. S h e d id n ot r efer to Mr s . Ma t ob o’s r equ es t t h a t t h e m a t ter b e r efer r ed for or a l evid en ce in or d er t o r es olve t h e d is p u tes of fa ct . [2 2 ] E ven t h ou gh t h e d ep on en t s of t h e two a ffid a vits filed on b eh a lf of t h e fir s t r es p on d en t wer e u n a b le in t h e m a in to d ea l fr om t h eir own k n owled ge wit h wh a t h a p p en ed b etween t h e p a r ties it is clea r t h a t a d is p u te of fa ct d id a r is e in t h e m a t ter . It wa s of t h e t h ir d k in d r efer r ed t o in t h e lea d in g ca s e of Room Hir e Co (Pty) Ltd v J ep p e S tr eet Ma n s ion s (Pty) Lt d 1 9 4 9 (3 ) S A 1 1 5 5 (T), wh ich h a s oft en b een cited wit h a p p r ova l in t h is Cou r t : s ee, e.g., Afr ica n Oxygen Lt d v S TM Ma r k etin g a n d Agen cies Lt d LAC (2 0 0 0 -2 0 0 4 ) 1 7 4 . At p 1 1 6 3 Mu r r a y AJ P s et s ou t t h e p r in cip a l wa ys in wh ich a d is p u t e of fa ct s a r is es . Th e t h ir d is wh er e a r es p on d en t – ‘m a y con ced e th a t h e h a s n o k n owled ge of th e m a in fa cts s ta ted b y th e a p p lica n t b u t m a y d en y th em , p u ttin g a p p lica n t to th e p r oof a n d h im s elf givin g or p r op os in g th e a p p lica n t a n d h is d ep on en ts a re b ia s s ed a n d u n tr u th fu l or oth er wis e u n relia b le a n d th a t cer ta in fa cts u p on wh ich a p p lica n t a n d h is d ep on en ts rely to p r ove th e m a in fa cts a re u n tr u e.’ to give evid en ce to s h ow th a t [2 3 ] E a r lier , a t p 1 1 6 2 , t h e lea r n ed ju d ge s a id t h a t ‘(excep t in in ter locu t or y m a t ter s ) it is u n d es ir a b le t o a t tem p t t o s et tle d is p u t es of fa ct s olely on p r ob a b ilities d is clos ed in con tr a d ictor y a ffid a vits in d is r ega r d of t h e a d d it ion a l a d va n ta ges of viva voce evid en ce’. [2 4 ] It is n ot cor r ect , in m y view, to a t tem p t to b r u s h a s id e t h e a ffid a vit s m a d e b y t h e for m er Vice -Ch a n cellor a n d t h e for m er Pr o Vice-Ch a n cellor a s b ein g u n h elp fu l. In ter m s t h ey con fir m ed wh a t Mr s . Ma t ob o s a id . [2 5 ] Cou n s el for t h e r es p on d en t en d ea vou r ed t o m eet t h is p oin t b y s u b m ittin g t h a t t h e d is p u te con cer n in g t h e exis ten ce or n ot of a n a gr eem en t b etween t h e p a r ties a t t h e tim e of t h e for m a tion of t h e n ew com p a n y b eca m e ‘tota lly ir r eleva n t ’, a s h e p u t it , in view of t h e ter m s of t h e m em or a n d u m of u n d er s t a n d in g d a ted 1 6 Decem b er 2 0 0 5 . He s u b m itt ed t h a t t h is con tr a ct gover n ed t h e r ela tion s h ip b et ween t h e p a r ties a s fr om t h a t d a te a n d r en d er ed ir r eleva n t wh a t occu r r ed b etween t h em wh en t h e com p a n y wa s es ta b lis h ed . [2 6 ] Th e a r gu m en t p r es u p p os es t h a t t h e m em or a n d u m of u n d er s t a n d in g wa s in d eed a con tr a ct b et ween t h e p a r ties a n d n ot , a s Mr s . Ma t ob o s a id , on e of t h e d ocu m en ts u n d er s tood ‘to b e n eces s a r y for a ccou n tin g p u r p os es on t h e p a r t of t h e fir s t r es p on d en t a n d n o m or e’. [2 7 ] Th e cir cu m s ta n ces r ela tin g t o t h e r ep ea ted exten s ion s of t h e con tr a ct b etween t h e p a r ties , a n d t h e fa ct t h a t it wa s n ot a t lea s t u n til Decem b er 2 0 0 7 p r eced ed b y a n y in vita tion to t h e a p p ella n t t o ten d er le n d s om e p la u s ib ility to t h e a p p ella n t’s a llega tion s . (2 ) Th e ju d ge d id n ot , a s s h e s h ou ld h a ve d on e, con s id er t h e r equ es t t h a t t h e m a t ter b e r efer r ed for or a l evid en ce. Th is Cou r t is a ccor d in gly a t la r ge to exer cis e t h e d is cr etion a s t o t h e fu tu r e cou r s e of t h e p r oceed in gs wh ich a r is es in m otion p r oceed in gs wh er e t h er e is a d is p u te of fa ct on t h e a ffid a vit s . In m y op in ion t h e a p p r op r ia t e or d er in a ca s e s u ch a s t h is is to s en d t h e p a r ties to tr ia l, in t er m s of High Cou r t Ru le 8 (1 4 ) wit h a d ir ection t h a t p lea d in gs b e filed . [2 8 ] Th e followin g or d er is m a d e: 1 . 2 . Th e a p p ea l is a llowed wit h cos ts . Th e or d er of t h e cou r t a qu o is s et a s id e a n d t h e followin g or d er s u b s titu ted : to file p lea d in gs d efin in g ‘Th e a p p lica tion is refer red to tr ia l in ter m s of Ru le 8 (1 4 ) a n d th e p a r ties a re d irected th e is s u es to b e d ecid ed . Th e a p p lica n t is to file its d ecla r a tion with in 2 0 d a ys of th is or d er a n d a ll s u b s equ en t p lea d in gs a re to b e filed in term s of th e r u les .’ ___________________ I. G. F AR LAM J US TICE OF APPE AL I a gr ee: ____________________ M. M. R AMODIBE DI PRE SIDE NT OF THE COURT OF APPE AL I a gr ee: ___________________ C. T. H OWIE J US TICE OF APPE AL For Ap p ella n t For Fir s t Res p on d en t : : Ad v K. K. Moh a u KC Ad v P. J . Lou b s er