Central University of Technology V Lindsay Saker (Pty) Ltd, A division of Imperial Holdings (A125/2019) [2020] ZAFSHC 31 (25 February 2020)

Central University of Technology V Lindsay Saker (Pty) Ltd, A division of Imperial Holdings (A125/2019) [2020] ZAFSHC 31 (25 February 2020)

The magistrate erred in granting judgment and making the settlement agreement an order of court, as Rule 27(6)(a) only permits this where the agreement expressly provides for it, which was not the case here. The main action was still pending, and the plaintiff had not withdrawn its summons. The magistrate was only empowered to record the terms of the agreement, not to grant judgment for the quantified amount or order payment absent further evidence. The appeal was allowed, and the magistrate's order was set aside and substituted with a dismissal of the application with costs.

Citation
[2020] ZAFSHC 31
Parties
Appellant: Central University of Technology; Respondent: Lindsay Saker (Pty) Ltd, A division of Imperial Holdings
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
25 February 2020
Case Number
A125/2019
Procedural Posture
Civil Appeal / Appeal From Magistrate's Court Order
Outcome
Appeal allowed; magistrate's order set aside and substituted with dismissal of the application with costs.
Judges
Reinders, Mhlambi
Legal Topics
Magistrates Court Jurisdiction, Settlement Agreement, Rule 27 Application, Entry of Judgment, Costs Order
Civil Procedure Magistrates Court Jurisdiction Settlement Agreement Rule 27 Application Entry of Judgment Costs Order

Case Brief

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Parties

Central University of Technology

Appellant

Lindsay Saker (Pty) Ltd, A division of Imperial Holdings

Respondent

Procedural Posture

Civil Appeal / Appeal From Magistrate's Court Order

Legal Issues

  1. 1 Whether the magistrate was entitled to make the settlement agreement an order of court under Rule 27(6)(a).
  2. 2 Whether the magistrate could grant judgment for payment of R77,611.20 absent compliance with the settlement agreement.
  3. 3 Whether the relief sought and granted was competent under the Magistrates' Court Rules.

Ratio Decidendi

The magistrate erred in granting judgment and making the settlement agreement an order of court, as Rule 27(6)(a) only permits this where the agreement expressly provides for it, which was not the case here. The main action was still pending, and the plaintiff had not withdrawn its summons. The magistrate was only empowered to record the terms of the agreement, not to grant judgment for the quantified amount or order payment absent further evidence. The appeal was allowed, and the magistrate's order was set aside and substituted with a dismissal of the application with costs.

Court Disposition

Appeal allowed; magistrate's order set aside and substituted with dismissal of the application with costs.

Orders

  • The appeal succeeds with costs.
  • The order of the magistrate dated 28 June 2019 is set aside and substituted with: 'The application is dismissed with costs.'