Adel Builders (Pty) Ltd v Thompson (274/98) [2000] ZASCA 167; [2000] 4 All SA 341 (A) (12 September 2000)

Adel Builders (Pty) Ltd v Thompson (274/98) [2000] ZASCA 167; [2000] 4 All SA 341 (A) (12 September 2000)

The Supreme Court of Appeal held that section 2A of the Prescribed Rate of Interest Act applies to claims pending before its commencement, as established in David Trust v Aegis Insurance Co Ltd. The trial judge correctly exercised his discretion under section 2A(5) in awarding pre-judgment interest from 1 February 1992, the date agreed by the parties as when the damages were fixed. The amendment to the counterclaim did not materially alter the nature of the claim, which remained for damages representing the cost of remedial work due to defective workmanship. The respondent was not entitled to consequential damages or escalation, and the cross-appeal was dismissed. The appeal against the...

Citation
[2000] ZASCA 167
Parties
Appellant: Adel Builders (Pty) Ltd; Respondent: Dr J G T Thompson
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
12 September 2000
Case Number
274/98
Procedural Posture
Civil Appeal / Appeal and Cross Appeal From South Eastern Cape Local Division
Outcome
Both the appeal and the cross-appeal are dismissed with costs.
Judges
Van Heerden, Nienaber, Howie, Melunsky, Mthiyane
Legal Topics
Breach of Contract, Unliquidated Damages, Pre Judgment Interest, Prescribed Rate of Interest Act, Judicial Discretion
Commercial and Corporate Civil Procedure Breach of Contract Unliquidated Damages Pre Judgment Interest Prescribed Rate of Interest Act Judicial Discretion

Case Brief

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Parties

Adel Builders (Pty) Ltd

Appellant

Dr J G T Thompson

Respondent

Procedural Posture

Civil Appeal / Appeal and Cross Appeal From South Eastern Cape Local Division

Legal Issues

  1. 1 Whether consequential damages were claimable under the building contract.
  2. 2 Whether the respondent was entitled to escalation in the computation of damages.
  3. 3 Whether the respondent was entitled to pre-judgment interest on unliquidated damages under section 2A of the Prescribed Rate of Interest Act.

Ratio Decidendi

The Supreme Court of Appeal held that section 2A of the Prescribed Rate of Interest Act applies to claims pending before its commencement, as established in David Trust v Aegis Insurance Co Ltd. The trial judge correctly exercised his discretion under section 2A(5) in awarding pre-judgment interest from 1 February 1992, the date agreed by the parties as when the damages were fixed. The amendment to the counterclaim did not materially alter the nature of the claim, which remained for damages representing the cost of remedial work due to defective workmanship. The respondent was not entitled to consequential damages or escalation, and the cross-appeal was dismissed. The appeal against the...

Court Disposition

Both the appeal and the cross-appeal are dismissed with costs.

Orders

  • The appeal is dismissed with costs.
  • The cross-appeal is dismissed with costs.