Basson v Niemann and Others (150/2012) [2012] ZASCA 203 (30 November 2012)

Basson v Niemann and Others (150/2012) [2012] ZASCA 203 (30 November 2012)

The Supreme Court of Appeal held that the respondents had acquired knowledge of all facts material to their claim against the appellant more than three years before the service of summons. The respondents made payments to investors in 2006, at which point they were aware of the appellant's conduct and their liability. Their reliance on the appellant's assurances and their failure to investigate the merits earlier did not prevent prescription from running, as reasonable care would have revealed the material facts. The argument that the partnership continued after incorporation was rejected, as the partnership was dissolved when the fourth respondent left and the company was formed with...

Citation
[2012] ZASCA 203
Parties
Appellant: Johan George Wilhelmus Basson; Respondent: Benito Hitler Niemann; Respondent: Jacob Jacobus de Klerk; Respondent: Deon Storm; Respondent: Francois Charl Le Roux
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
30 November 2012
Case Number
150/2012
Procedural Posture
Civil Appeal / Appeal From North Gauteng High Court, Prescription Plea
Outcome
Appeal upheld; respondents' claims dismissed as prescribed.
Judges
Mpati, Nugent, Malan, Leach, Theron
Legal Topics
Prescription Act, Partnership Liability, Special Plea of Prescription, Professional Negligence, Trust Account Mismanagement
Civil Procedure Commercial and Corporate Prescription Act Partnership Liability Special Plea of Prescription Professional Negligence Trust Account Mismanagement

Case Brief

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Parties

Johan George Wilhelmus Basson

Appellant

Benito Hitler Niemann

Respondent

Jacob Jacobus de Klerk

Respondent

Deon Storm

Respondent

Francois Charl Le Roux

Respondent

Procedural Posture

Civil Appeal / Appeal From North Gauteng High Court, Prescription Plea

Legal Issues

  1. 1 Whether the respondents' claim against the appellant had prescribed under the Prescription Act.
  2. 2 Whether the respondents had knowledge of all material facts giving rise to their claim more than three years before summons was served.
  3. 3 Whether the partnership continued after incorporation for purposes of prescription.

Ratio Decidendi

The Supreme Court of Appeal held that the respondents had acquired knowledge of all facts material to their claim against the appellant more than three years before the service of summons. The respondents made payments to investors in 2006, at which point they were aware of the appellant's conduct and their liability. Their reliance on the appellant's assurances and their failure to investigate the merits earlier did not prevent prescription from running, as reasonable care would have revealed the material facts. The argument that the partnership continued after incorporation was rejected, as the partnership was dissolved when the fourth respondent left and the company was formed with...

Court Disposition

Appeal upheld; respondents' claims dismissed as prescribed.

Orders

  • The appeal is upheld, with costs.
  • The order of the court a quo is set aside and substituted with: (a) The special plea of prescription is upheld. (b) The plaintiffs' claims are dismissed with costs.