2C Projects CC v Labour Recruitment Specialist CC (7000/2007) [2008] ZAKZHC 59 (22 August 2008)

2C Projects CC v Labour Recruitment Specialist CC (7000/2007) [2008] ZAKZHC 59 (22 August 2008)

The court found that the architect's final payment certificate dated 7 June 2007, signed by the defendant's authorised agent, constituted a liquid document evidencing an unconditional acknowledgment of indebtedness for the sum claimed. The contract empowered the architect to issue instructions and value variations, and the reconciliation presented by the plaintiff demonstrated that the amount claimed was due after accounting for all payments and adjustments. The non-variation clause did not bar recovery, as the contract expressly provided for variations and escalation. The earlier payment certificate marked 'final' was qualified and did not preclude subsequent adjustment for variations....

Citation
[2008] ZAKZHC 59
Parties
Plaintiff: 2C Projects CC; Defendant: Labour Recruitment Specialist CC
Court
High Courts - Kwazulu Natal
Jurisdiction
South Africa
Judgment Date
22 August 2008
Case Number
7000/2007
Procedural Posture
Provisional Sentence Application / Final Judgment
Outcome
Provisional sentence granted in favour of the plaintiff.
Judges
Ntshangase
Legal Topics
Provisional Sentence, Building Contract, Variation Orders, Liquid Document, Contractual Escalation
Civil Procedure Commercial and Corporate Provisional Sentence Building Contract Variation Orders Liquid Document Contractual Escalation

Case Brief

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Parties

2C Projects CC

Plaintiff

Labour Recruitment Specialist CC

Defendant

Procedural Posture

Provisional Sentence Application / Final Judgment

Legal Issues

  1. 1 Whether the architect's final payment certificate of 7 June 2007 constitutes a liquid document supporting provisional sentence.
  2. 2 Whether the defendant is liable for additional amounts arising from variation orders beyond the contract price.
  3. 3 Whether the non-variation clause in the contract precludes recovery of the claimed amount.

Ratio Decidendi

The court found that the architect's final payment certificate dated 7 June 2007, signed by the defendant's authorised agent, constituted a liquid document evidencing an unconditional acknowledgment of indebtedness for the sum claimed. The contract empowered the architect to issue instructions and value variations, and the reconciliation presented by the plaintiff demonstrated that the amount claimed was due after accounting for all payments and adjustments. The non-variation clause did not bar recovery, as the contract expressly provided for variations and escalation. The earlier payment certificate marked 'final' was qualified and did not preclude subsequent adjustment for variations....

Court Disposition

Provisional sentence granted in favour of the plaintiff.

Orders

  • Provisional sentence is granted with costs in the sum of R524,996.01 with interest thereon at the rate of 8.75% from 12 December 2006 to date of payment.