Capstone 359 (Pty) Limited and Others v Spar Group Limited; In re: Spar Group Limited v Capstone 359 (Pty) Limited and Others (A5039/2015, A QUO 41791/2013) [2016] ZAGPJHC 223 (26 August 2016)

Capstone 359 (Pty) Limited and Others v Spar Group Limited; In re: Spar Group Limited v Capstone 359 (Pty) Limited and Others (A5039/2015, A QUO 41791/2013) [2016] ZAGPJHC 223 (26 August 2016)

The court found that the sublease agreement clearly incorporated the obligation for Capstone to pay any increased rates that Spar was required to pay to the head lessor, Express Model. Spar provided sufficient evidence that the rates had increased due to legislative amendments and that it had paid the increased amount. Capstone's denials were not supported by substantive evidence and did not amount to a bona fide dispute. The liability of the sureties followed that of Capstone. The appeal was dismissed, and the judgment of the court a quo was upheld.

Citation
[2016] ZAGPJHC 223
Parties
Appellant: Capstone 359 (Pty) Limited; Appellant: Vassilios Loizou; Appellant: Apostolos Andrew Mina; Appellant: Sydney Donald Russell Searle; Respondent: The Spar Group Limited
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
26 August 2016
Case Number
A5039/2015, A QUO 41791/2013
Procedural Posture
Civil Appeal / Appeal From the Gauteng Local Division, High Court, Johannesburg
Outcome
Appeal dismissed with costs; judgment of the court a quo upheld.
Judges
Tsoka, Makume, Wepener
Legal Topics
Lease Agreement, Sublease Liability, Rates and Taxes, Suretyship, Quantum of Claim
Commercial and Corporate Land and Property Lease Agreement Sublease Liability Rates and Taxes Suretyship Quantum of Claim

Case Brief

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Parties

Capstone 359 (Pty) Limited

Appellant

Vassilios Loizou

Appellant

Apostolos Andrew Mina

Appellant

Sydney Donald Russell Searle

Appellant

The Spar Group Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From the Gauteng Local Division, High Court, Johannesburg

Legal Issues

  1. 1 Whether Capstone 359 (Pty) Limited is liable to pay increased rates to Spar Group Limited under the sublease agreement.
  2. 2 Whether Spar Group Limited proved the quantum and its obligation to pay the additional rates to the head lessor.
  3. 3 Whether the terms of the head lease and sublease properly incorporated the obligation to pay increased rates.

Ratio Decidendi

The court found that the sublease agreement clearly incorporated the obligation for Capstone to pay any increased rates that Spar was required to pay to the head lessor, Express Model. Spar provided sufficient evidence that the rates had increased due to legislative amendments and that it had paid the increased amount. Capstone's denials were not supported by substantive evidence and did not amount to a bona fide dispute. The liability of the sureties followed that of Capstone. The appeal was dismissed, and the judgment of the court a quo was upheld.

Court Disposition

Appeal dismissed with costs; judgment of the court a quo upheld.

Orders

  • The appeal is dismissed with costs.