Radial Truss Industries (Pty) Ltd v Shipefi [2020] NAHCMD 434 (16 September 2020)

Radial Truss Industries (Pty) Ltd v Shipefi [2020] NAHCMD 434 (16 September 2020)

The arbitration clause in the agreement survived the termination of the contract and precluded the plaintiff from instituting legal proceedings in the High Court. The special plea of arbitration was not interlocutory and not subject to Rule 32(11) on costs. The plaintiff's action was stayed and the matter removed from the roll.

Citation
[2020] NAHCMD 434
Parties
Plaintiff: Radial Truss Industries (Pty) Ltd; First Defendant: Samuel Mekondjo Shipefi; Second Defendant: Ndahafa Shipefi
Court
High Court Main Division
Jurisdiction
Namibia
Judgment Date
16 September 2020
Procedural Posture
Civil Contract Dispute / Ruling on Special Plea (arbitration)
Outcome
special plea of arbitration upheld; plaintiff's action stayed; matter removed from the roll
Legal Topics
Arbitration Clause, Effect of Contract Termination on Arbitration Clause, Special Plea, Costs, Jurisdiction
Source Language
English
Contract Law Civil Procedure Arbitration Arbitration Clause Effect of Contract Termination on Arbitration Clause Special Plea Costs Jurisdiction

Case Brief

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Parties

Radial Truss Industries (Pty) Ltd

Plaintiff

Samuel Mekondjo Shipefi

First Defendant

Ndahafa Shipefi

Second Defendant

Procedural Posture

Civil Contract Dispute / Ruling on Special Plea (arbitration)

Legal Issues

  1. 1 Whether the arbitration clause survived the termination of the contract
  2. 2 Whether the plaintiff was precluded from instituting legal proceedings due to the arbitration clause
  3. 3 Whether the special plea of arbitration is interlocutory and subject to Rule 32(11) on costs

Ratio Decidendi

The arbitration clause in the agreement survived the termination of the contract and precluded the plaintiff from instituting legal proceedings in the High Court. The special plea of arbitration was not interlocutory and not subject to Rule 32(11) on costs. The plaintiff's action was stayed and the matter removed from the roll.

Court Disposition

special plea of arbitration upheld; plaintiff's action stayed; matter removed from the roll

Orders

  • The special plea of arbitration raised by the first and second defendants is upheld.
  • The plaintiff must pay the defendants’ costs, including the costs of one instructed and one instructing counsel but limited to 50% of the costs so incurred.