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South Africa Judgment

North Gauteng High Court, Pretoria

Cathoros Commodities (Pty) Ltd v Anglo Operations (Pty) Ltd (Leave to Appeal) (54095/2013; 90165/2015) [2024] ZAGPPHC 459 (17 May 2024)

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Source document

01

Holding and result

The court found that the contract was correctly interpreted, taking into account the particulars of claim, the contract, and the circumstances of its conclusion. The specification of 'Kromdraai ROM' coal was material, and the applicant received coal that met or exceeded the contractual requirements. The argument that receiving better coal constituted a breach was rejected, as no evidence was led to show material prejudice. The price was properly fixed after the urgent request, and the evidence regarding deliveries, invoices, and prices was uncontested and accepted. The refusal to pay claims 1 and 2 was deemed to be business lawfare, which the court cannot sanction. Accordingly, the application for leave to appeal was dismissed with costs, including costs of senior counsel on scale C.

Court disposition

Application for leave to appeal dismissed with costs, including costs of senior counsel on scale C.

Orders

  • Condonation for the late filing of the application for leave to appeal is granted.
  • The application for leave to appeal is dismissed with costs, including costs of senior counsel on scale C.

02

Material facts

Parties

Cathoros Commodities (Pty) Ltd

Applicant Counsel: Adv. S.J. van Rensburg SC

Anglo Operations (Pty) Ltd

Respondent Counsel: Adv. E.C. Labuschagne SC

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal After Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contended that the court erred in interpreting the contract, arguing that the source 'Landau' was the only relevant specification and that the delivery of coal of better quality did not comply with the contract. The applicant further argued that the price was not properly fixed and that the refusal to pay was justified.
Respondent
The respondent argued that the contract specified 'Kromdraai ROM' coal, not just the source, and that the applicant received coal of better quality, which did not constitute a breach. The respondent maintained that the price was fixed after the urgent request and that the refusal to pay was unjustified and amounted to business lawfare.

05

Court’s reasoning

  1. 01

    General principles of South African contract law

    Contractual interpretation must consider the particulars of claim, the contract itself, and the circumstances under which the contract was concluded.

  2. 02

    Uniform Rules of Court

    Condonation for late filing may be granted where justified.

  3. 03

    General principles of South African contract law

    A party cannot claim breach where it receives goods of better quality than specified unless material prejudice is proven.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the contract was correctly interpreted, taking into account the particulars of claim, the contract, and the circumstances of its conclusion. The specification of 'Kromdraai ROM' coal was material, and the applicant received coal that met or exceeded the contractual requirements. The argument that receiving better coal constituted a breach was rejected, as no evidence was led to show material prejudice. The price was properly fixed after the urgent request, and the evidence regarding deliveries, invoices, and prices was uncontested and accepted. The refusal to pay claims 1 and 2 was deemed to be business lawfare, which the court cannot sanction. Accordingly, the application for leave to appeal was dismissed with costs, including costs of senior counsel on scale C.

Obiter and limits

  • The analogy that receiving a Mercedes when asking for a Toyota is not applicable, as the applicant received a Toyota, just a better and bigger model.
  • Business lawfare through unjustified refusal to pay is not condoned by the court.

Court disposition

Application for leave to appeal dismissed with costs, including costs of senior counsel on scale C.

  • Condonation for the late filing of the application for leave to appeal is granted.
  • The application for leave to appeal is dismissed with costs, including costs of senior counsel on scale C.

Source and reliance status

North Gauteng High Court, Pretoria

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Judgment reading view

Judgment text

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Source document

North Gauteng High Court, Pretoria

Judgment

[2024] ZAGPPHC 459

IN

THE HIGH COURT OF SOUTH AFRICA

(GAUTENG DIVISION, PRETORIA)

Case Number: 54095/2013 & 90165/2015

(1) REPORTABLE: NO.

(2) OF INTEREST TO OTHER JUDGES: NO.

(3) REVISED.

DATE: 2024-05-17

SIGNATURE

In the matter between:

CATHOROS COMMODITIES (PTY)

LTD

Applicant

and

ANGLO OPERATIONS (PTY)

LTD

Respondent

This judgment was prepared and authored by the Judge whose name is reflected and is handed down electronically by circulation to the Parties/their legal representatives by email and by uploading it to the electronic file of this matter on CaseLines. The date for handing down is deemed to be 17 May 2024.

JUDGMENT:

APPLICATION FOR LEAVE TO APPEAL

POTTERILL J

[1] I have re-read the judgment, the application for leave to appeal and the heads of argument on behalf of both parties. I also listened to the argument on behalf of both parties.

[2] Condonation for the late filing of the application for leave to appeal is granted.

Claim 1

[3] The nub of the appeal is that the court did not interpret the contract correctly. If only the source, Landau, was relevant then the coal would not have been specified as “Kromdraai ROM.”

[4] I am satisfied that if regard is had to the particulars of claim, the contract, the evidence setting out the circumstances attendant upon the contract coming into existence; the fact that Cathoros was an existing client, where the trucks had to pick up the coal; no other court would reasonably come to another conclusion.

[5] The argument that the coal that was delivered was of a better quality is of no consequence, is simply contrived, because no evidence was led as to how receiving better coal materially breached the contract. The argument that even if the applicant received a Mercedes, it asked for a Toyota, is rejected because the applicant received a Toyota; just a better and bigger model.

Claim 2

[6] It is quite clear the price was fixed ex post facto the request for the coal to be delivered due to the common cause urgency of the request by the applicant.

The evidence of Mr. Shaw regarding deliveries, invoices and prices were not placed in dispute and was correctly accepted.

[7] I am satisfied that the refusal to pay claims 1 and 2 is business lawfare which a court cannot sanction and the application for leave to appeal is dismissed with costs, with costs of senior counsel; scale C.

S.

POTTERILL

JUDGE

OF THE HIGH COURT

CASE NO: 54095/2013 & 90165/2015 HEARD ON: 16 May 2024 FOR THE APPLICANT: ADV. S.J. VAN

RENSBURG SC INSTRUCTED BY: Van Rensburg Kruger Rakwena Inc. c/o VZLR Inc. FOR THE RESPONDENT: ADV. E.C.

LABUSCHAGNE SC INSTRUCTED BY: Savage Jooste & Adams DATE OF JUDGMENT: 17 May 2024

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