Breakers Share Block Ltd v EThekwini Municipality (9378/2013) [2015] ZAKZDHC 58 (27 July 2015)

Breakers Share Block Ltd v EThekwini Municipality (9378/2013) [2015] ZAKZDHC 58 (27 July 2015)

The court held that the proper interpretation of clause 6(b) of the relevant leases, read with the Umhlanga Rocks Township Scheme No. 1, requires the calculation of rental to be based on the total floor area of the buildings constructed upon the leased property, excluding the area of all public access corridors, public stairways, and public entrances or hallways. The court found that the wording change from 'defined' to 'calculated' in the leases indicated a shift in intention, aligning with the Scheme's provisions for residential buildings. The general definition of 'floor area' in the Scheme was deemed too broad and not intended for rental calculation purposes. The court preferred an...

Citation
[2015] ZAKZDHC 58
Parties
Plaintiff: Breakers Share Block Ltd; Defendant: EThekwini Municipality
Court
Kwazulu-Natal High Court, Durban
Jurisdiction
South Africa
Judgment Date
27 July 2015
Case Number
9378/2013
Procedural Posture
Civil Trial / Special Case Stated Under Rule 33(1)
Outcome
Plaintiff succeeds on the interpretation of clause 6(b); rental to be recalculated on the basis of 12,079.10 square metres excluding public access corridors, stairways, and entrances.
Judges
Mbatha
Legal Topics
Lease Interpretation, Municipal Rental Calculation, Town Planning Scheme, Floor Area Definition
Land and Property Civil Procedure Lease Interpretation Municipal Rental Calculation Town Planning Scheme Floor Area Definition

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Parties

Breakers Share Block Ltd

Plaintiff

EThekwini Municipality

Defendant

Procedural Posture

Civil Trial / Special Case Stated Under Rule 33(1)

Legal Issues

  1. 1 What is the correct interpretation of clause 6(b) of the relevant leases regarding the calculation of rental based on floor area.
  2. 2 Should the calculation of floor area for rental purposes exclude public access corridors, stairways, and entrances as per the Town Planning Scheme.
  3. 3 Does the definition of 'floor area' in the Scheme or the provisions of Section 5.1(ii)(b)(iii) govern the calculation for rental revision.

Ratio Decidendi

The court held that the proper interpretation of clause 6(b) of the relevant leases, read with the Umhlanga Rocks Township Scheme No. 1, requires the calculation of rental to be based on the total floor area of the buildings constructed upon the leased property, excluding the area of all public access corridors, public stairways, and public entrances or hallways. The court found that the wording change from 'defined' to 'calculated' in the leases indicated a shift in intention, aligning with the Scheme's provisions for residential buildings. The general definition of 'floor area' in the Scheme was deemed too broad and not intended for rental calculation purposes. The court preferred an...

Court Disposition

Plaintiff succeeds on the interpretation of clause 6(b); rental to be recalculated on the basis of 12,079.10 square metres excluding public access corridors, stairways, and entrances.

Orders

  • It is declared that, on a proper interpretation of clause 6(b) of the relevant leases, the floor area for rental calculation excludes public access corridors, stairways, and entrances.
  • The floor area for rental revision is declared to be 12,079.10 square metres.