Cargo Movers (South Africa) (Pty) Ltd v Transnet SOC Limited (64902/2016) [2022] ZAGPPHC 903 (17 November 2022)

Cargo Movers (South Africa) (Pty) Ltd v Transnet SOC Limited (64902/2016) [2022] ZAGPPHC 903 (17 November 2022)

The court found that the plaintiff and Tengwa Africa are separate legal entities, and any costs incurred by Tengwa Africa in performing the contract cannot be claimed by the plaintiff from the defendant. The LOA and RFP expressly prohibited undisclosed subcontracting and required any subcontractor to be disclosed and to have an equal or higher BBBEE status. The plaintiff failed to disclose Tengwa Africa and subcontracted 100% of the work, contrary to the RFP. The evidence showed that all payments due for services rendered under the LOA were made to the plaintiff, and any further costs were incurred by Tengwa Africa, not the plaintiff. The court held that the plaintiff's claim for...

Citation
[2022] ZAGPPHC 903
Parties
Plaintiff: Cargo Movers (Southern Africa) (Pty) Ltd; Defendant: Transnet SOC Limited
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
17 November 2022
Case Number
64902/2016
Procedural Posture
Civil Trial / Judgment After Trial; Claim for Contractual Damages and Costs
Outcome
Plaintiff's claim dismissed with costs awarded to the defendant.
Judges
Maubane
Legal Topics
Breach of Contract, Subcontracting Prohibition, Prescription of Debt, Privity of Contract, Reasonable Actual Costs, Letter of Award
Commercial and Corporate Civil Procedure Breach of Contract Subcontracting Prohibition Prescription of Debt Privity of Contract Reasonable Actual Costs Letter of Award

Case Brief

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Parties

Cargo Movers (Southern Africa) (Pty) Ltd

Plaintiff

Transnet SOC Limited

Defendant

Procedural Posture

Civil Trial / Judgment After Trial; Claim for Contractual Damages and Costs

Legal Issues

  1. 1 Whether the plaintiff is entitled to recover 'reasonable actual costs' from the defendant under the letter of award after negotiations broke down.
  2. 2 Whether costs incurred by a subcontractor (Tengwa Africa) are recoverable by the plaintiff from the defendant.
  3. 3 Whether the plaintiff's claim has prescribed under the Prescription Act 68 of 1969.

Ratio Decidendi

The court found that the plaintiff and Tengwa Africa are separate legal entities, and any costs incurred by Tengwa Africa in performing the contract cannot be claimed by the plaintiff from the defendant. The LOA and RFP expressly prohibited undisclosed subcontracting and required any subcontractor to be disclosed and to have an equal or higher BBBEE status. The plaintiff failed to disclose Tengwa Africa and subcontracted 100% of the work, contrary to the RFP. The evidence showed that all payments due for services rendered under the LOA were made to the plaintiff, and any further costs were incurred by Tengwa Africa, not the plaintiff. The court held that the plaintiff's claim for...

Court Disposition

Plaintiff's claim dismissed with costs awarded to the defendant.

Orders

  • The plaintiff's claim is dismissed.
  • The plaintiff is ordered to pay costs on a party and party scale, including counsel's fees.