Bay Drive Trading 151 (Pty) Ltd v Sakhisizwe Local Municipality (545/2016) [2016] ZAECGHC 108 (24 October 2016)

Bay Drive Trading 151 (Pty) Ltd v Sakhisizwe Local Municipality (545/2016) [2016] ZAECGHC 108 (24 October 2016)

The court found that the defendant had disclosed facts which, if accepted at trial, would constitute a defence to the plaintiff's claim for payment certificate 6 ('standing time'). The original agreement did not provide for 'standing time', and the evidence of a subsequent agreement was not sufficiently clear or established at this stage. The defendant's opposition raised a triable issue regarding the contractual basis for the claim. Accordingly, summary judgment was refused in respect of claim 2, and the defendant was granted leave to defend.

Citation
[2016] ZAECGHC 108
Parties
Applicant: Bay Drive Trading 151 (Pty) Ltd; Respondent: Sakhisizwe Local Municipality
Court
Eastern Cape High Court, Grahamstown
Jurisdiction
South Africa
Judgment Date
24 October 2016
Case Number
545/2016
Procedural Posture
Summary Judgment Application / Application for Summary Judgment; Opposed in Respect of Claim 2
Outcome
Summary judgment in respect of claim 2 (payment certificate 6 and interest thereon) is dismissed with costs. Defendant is granted leave to defend. Determination of claim 1 is postponed sine die.
Judges
N G Beshe
Legal Topics
Summary Judgment, Contractual Dispute, Standing Time, Service Level Agreement
Civil Procedure Commercial and Corporate Summary Judgment Contractual Dispute Standing Time Service Level Agreement

Case Brief

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Parties

Bay Drive Trading 151 (Pty) Ltd

Applicant

Sakhisizwe Local Municipality

Respondent

Procedural Posture

Summary Judgment Application / Application for Summary Judgment; Opposed in Respect of Claim 2

Legal Issues

  1. 1 Whether the defendant has disclosed a bona fide defence to the plaintiff's claim for payment certificate 6 (standing time).
  2. 2 Whether the agreement between the parties provided for payment of 'standing time'.
  3. 3 Whether a subsequent agreement or acknowledgment by the defendant created liability for 'standing time'.

Ratio Decidendi

The court found that the defendant had disclosed facts which, if accepted at trial, would constitute a defence to the plaintiff's claim for payment certificate 6 ('standing time'). The original agreement did not provide for 'standing time', and the evidence of a subsequent agreement was not sufficiently clear or established at this stage. The defendant's opposition raised a triable issue regarding the contractual basis for the claim. Accordingly, summary judgment was refused in respect of claim 2, and the defendant was granted leave to defend.

Court Disposition

Summary judgment in respect of claim 2 (payment certificate 6 and interest thereon) is dismissed with costs. Defendant is granted leave to defend. Determination of claim 1 is postponed sine die.

Orders

  • The determination of claim 1 and the claim for interest thereon is postponed sine die.
  • Summary judgment application in respect of claim 2 and the claim for interest thereon is dismissed with costs.