Butcher Shop and Grill CC v Trustees for the time being of the Bymyam Trust (038/2022) [2023] ZASCA 57; [2023] 3 All SA 40 (SCA); 2023 (5) SA 68 (SCA) (21 April 2023)

Butcher Shop and Grill CC v Trustees for the time being of the Bymyam Trust (038/2022) [2023] ZASCA 57; [2023] 3 All SA 40 (SCA); 2023 (5) SA 68 (SCA) (21 April 2023)

The Supreme Court of Appeal held that the lease agreement did not exclude the tenant's right to claim remission of rent due to vis major, but the loss of use and enjoyment was suffered by Apoldo, the sub-tenant, not the Butcher Shop. As Apoldo is a separate legal entity, the Butcher Shop cannot claim remission based on Apoldo's loss. The court reaffirmed that piercing the corporate veil is only permissible where there is fraud, dishonesty, or unconscionable abuse, none of which were present. The court declined to develop the common law to allow the remedy sought, noting that such development would abrogate established principles and was not justified by constitutional or policy...

Citation
[2023] ZASCA 57
Parties
Appellant: The Butcher Shop and Grill CC; Respondent: Trustees for the time being of the Bymyam Trust
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
21 April 2023
Case Number
038/2022
Procedural Posture
Civil Appeal / Appeal From Western Cape Division of the High Court, Cape Town
Outcome
Appeal dismissed with costs.
Judges
Van der Merwe, Mbatha, Carelse, Weiner, Goosen
Legal Topics
Remission of Rent, Vis Major, Piercing Corporate Veil, Lease Agreement Interpretation, Abatement of Rent, Development of Common Law
Commercial and Corporate Land and Property Remission of Rent Vis Major Piercing Corporate Veil Lease Agreement Interpretation Abatement of Rent Development of Common Law

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 16 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

The Butcher Shop and Grill CC

Appellant

Trustees for the time being of the Bymyam Trust

Respondent

Procedural Posture

Civil Appeal / Appeal From Western Cape Division of the High Court, Cape Town

Legal Issues

  1. 1 Whether the lease agreement excludes the tenant's claim for remission of rent due to vis major.
  2. 2 Whether a tenant may claim remission of rent for loss of use and enjoyment suffered by its sub-tenant.
  3. 3 Whether the corporate veil should be pierced to allow the tenant to assert rights accruing to the sub-tenant.

Ratio Decidendi

The Supreme Court of Appeal held that the lease agreement did not exclude the tenant's right to claim remission of rent due to vis major, but the loss of use and enjoyment was suffered by Apoldo, the sub-tenant, not the Butcher Shop. As Apoldo is a separate legal entity, the Butcher Shop cannot claim remission based on Apoldo's loss. The court reaffirmed that piercing the corporate veil is only permissible where there is fraud, dishonesty, or unconscionable abuse, none of which were present. The court declined to develop the common law to allow the remedy sought, noting that such development would abrogate established principles and was not justified by constitutional or policy...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.