Changing Tides 17 (Pty) Ltd N.O. v Coetzee and Others (66108/2013) [2017] ZAGPPHC 802 (17 November 2017)
- Citation
- [2017] ZAGPPHC 802
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- North Gauteng High Court, Pretoria
- Panel
- C Pretorius
- Case number
- 66108/2013
More details
- Court
- North Gauteng High Court, Pretoria
- Panel
- C Pretorius
- Case number
- 66108/2013
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The applicant failed to withdraw the application after the law was settled by the Supreme Court of Appeal and Constitutional Court, resulting in unnecessary litigation and costs. The respondents were victims of fraud and entitled to restitution of ownership. The written agreements and mortgage bond were declared null and void. The applicant is liable for the costs of the application, as the general rule is that costs follow the event and no exceptional circumstances were shown to depart from this rule.
Court disposition
Application granted; draft order made an order of court; applicant ordered to pay costs.
Orders
- Fourth to Ninth Respondents are joined in the proceedings.
- Written agreements between the First, Second and Third Respondents and Brusson (Pty) Ltd are declared null and void.
- Mortgage bond B3617/2010 in respect of Erf [...], Roseacre Ext 3 Township, Johannesburg is declared invalid, unlawful and of no force or effect.
- Mortgage bond B3617/2010 is set aside.
- Registrar of Deeds, Johannesburg is ordered to cancel mortgage bond B3617/2010 in favour of South African Home Loans.
- Second and Third Respondents are entitled to restitution of ownership of the property at Erf [...], Roseacre Extension 3, Johannesburg.
- Registrar of Deeds, Johannesburg is ordered to cancel title deed T4456/2010 and the rights accorded to the First Respondent.
- Registrar of Deeds, Johannesburg is ordered to revive the title deed in the names of the Second and Third Respondents in terms of section 6(2) of the Deeds Registries Act 47 of 1937.
- Applicant is directed to pay the costs of the application.
02
Material facts
Parties
Changing Tides 17 (Pty) Ltd N.O.
Applicant Counsel: Adv OosthuizenChristo Brian Coetzee
Respondent Counsel: Adv O Ben-zeevJacobus Johannes Odendaal
Respondent Counsel: Adv O Ben-zeevKaren Odendaal
Respondent Counsel: Adv O Ben-zeevRegistrar of Deeds, Johannesburg
RespondentCloete Cornelia Maria N.O.
RespondentKaplan Harry N.O.
RespondentDe Oliviera Anna Paula N.O.
RespondentPoopedi Sophie Mmapula N.O.
RespondentSouth African Home Loans Pty Limited
RespondentAmounts and remedies
- Amount Received by Respondents: ZAR 259,000
- Amount Repaid by Respondents: ZAR 86,456.55
- Balance Outstanding: ZAR 172,543.45
03
Procedural history
Posture
Civil Application / Costs Determination After Draft Order Agreed
04
Questions and positions
Legal issues
- 01
Whether the applicant should be liable for the costs of the application.
- 02
Whether the written agreements and mortgage bond are valid and enforceable.
- 03
Whether the second and third respondents are entitled to restitution of ownership of the property.
Party arguments
- Applicant
- The applicant argued that the second and third respondents had received R259,000 in February 2010 and had repaid R86,456.55, leaving a balance of R172,543.45. The applicant contended that the respondents would be enriched by retaining both the house and the balance, and that the Legal Resources Centre represented them, so they would not be exposed to legal costs. The applicant maintained that costs should not be awarded against it.
- Respondent
- The respondents argued that they were victims of the Brusson scheme and had consistently tendered repayment of the balance received. They asserted that the applicant failed to withdraw or remove the matter from the roll after the Supreme Court of Appeal and Constitutional Court judgments clarified the law, resulting in unnecessary litigation and costs. They sought an order for costs against the applicant.
05
Court’s reasoning
Legal principles
- 01
Kruger Bros and Wasserman v Ruskin 1918 AD 63 at 69
The court has a discretion to award costs, but the general rule is that costs follow the event.
- 02
Supreme Court of Appeal and Constitutional Court judgments referenced in the matter
Agreements procured by fraud are null and void and cannot be enforced.
- 03
Deeds Registries Act 47 of 1937
Section 6(2) of the Deeds Registries Act 47 of 1937 allows for the revival of title deeds in appropriate circumstances.
06
Ratio, limits and disposition
Ratio decidendi
The applicant failed to withdraw the application after the law was settled by the Supreme Court of Appeal and Constitutional Court, resulting in unnecessary litigation and costs. The respondents were victims of fraud and entitled to restitution of ownership. The written agreements and mortgage bond were declared null and void. The applicant is liable for the costs of the application, as the general rule is that costs follow the event and no exceptional circumstances were shown to depart from this rule.
Obiter and limits
- The court noted that the Legal Resources Centre acted for the respondents, but this did not affect the applicant's liability for costs.
- The matter was similar to other cases involving the Brusson scheme, and the law had been settled by higher courts.
Court disposition
Application granted; draft order made an order of court; applicant ordered to pay costs.
- Fourth to Ninth Respondents are joined in the proceedings.
- Written agreements between the First, Second and Third Respondents and Brusson (Pty) Ltd are declared null and void.
- Mortgage bond B3617/2010 in respect of Erf [...], Roseacre Ext 3 Township, Johannesburg is declared invalid, unlawful and of no force or effect.
- Mortgage bond B3617/2010 is set aside.
- Registrar of Deeds, Johannesburg is ordered to cancel mortgage bond B3617/2010 in favour of South African Home Loans.
- Second and Third Respondents are entitled to restitution of ownership of the property at Erf [...], Roseacre Extension 3, Johannesburg.
- Registrar of Deeds, Johannesburg is ordered to cancel title deed T4456/2010 and the rights accorded to the First Respondent.
- Registrar of Deeds, Johannesburg is ordered to revive the title deed in the names of the Second and Third Respondents in terms of section 6(2) of the Deeds Registries Act 47 of 1937.
- Applicant is directed to pay the costs of the application.
Source and reliance status
North Gauteng High Court, Pretoria
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
North Gauteng High Court, Pretoria
Judgment
SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document in compliance with the law and SAFLII Policy
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG DIVISION, PRETORIA)
Case number: 66108/2013
Date:
NOT
REPORTABLE
NOT
OF INTEREST TO OTHER JUDGES
REVISED
In the matter between:
CHANGING TIDES 17 (PTY) LTD N.O.
APPLICANT
And
CHRISTO
BRIAN COETZEE
FIRST
RESPONDENT
JACOBUS
JOHANNES ODENDAAL
SECOND
RESPONDENT
KAREN
ODENDAAL
THIRD
RESPONDENT
JUDGMENT
PRETORIUS J.
(1) In this application the only issue this court has to decide is the issue of costs. At the hearing of the application a draft order was handed to the court and the parties agreed that this order may be made an order of court, save for the costs.
(2) The second and third respondents were victims of the so-called Brusson scheme, whereby they were defrauded of ownership of their
home by Brusson. This matter is similar to a matter which was pending in the Supreme Court of Appeal ("the SCA"). On 24 August 2015 the application was postponed pending the outcome of the appeal in the SCA. On 26 November 2015 the SCA gave judgment. ABSA Bank, the applicant in that matter, approached the Constitutional Court for leave to appeal, which application was dismissed on 21 October 2016.
(3) It is a fact that the proposed draft order was agreed upon by the parties after the SCA and Constitutional Court judgments were given. The last date was thus 21 October 2016, when it became clear that the two respondents were defrauded and that the law had been settled in this regard.
(4) The applicant's counsel referred to Kruger Bros and Wasserman v Ruskin[1] where Innes J held:
"the rule of our law is that all costs - unless expressly otherwise enacted - are in the discretion of the Judge. His discretion must be judicially exercised; but it cannot be challenged, taken alone and apart from the main order, without his permission."
(5) The court has a discretion to award costs, although the general rule is that costs follow the event. The applicant's argument is that the second and third respondents throughout the opposition of the application tendered the balance of the money that they had received. According to the applicant they had received the amount of R259 000 during February 2010 and that they had repaid R86 456.55 at this stage. During argument it was clear that the second and third respondents would still pay the money to the applicant, if so requested.
(6) The further argument by the applicant is that not only will they receive their house back, but will have been enriched with the amount of R172 543.45. The last argument is that the Legal Resources Centre acted for the second and third respondents and that they are not exposed to any legal costs.
(7) The applicant did not afford any reason as to why the application was not withdrawn or removed from the roll as soon as the SCA judgment, 1918 AD 63 at 69 confirmed by the Constitutional Court on 21 October 2016, became available. More than a year has gone by, without the applicant conceding that this matter falls squarely in the ambit of that judgment and cannot proceed.
(8) In these circumstances, where I have considered all the facts placed before me I find that the applicant, due to the reasons set out above, is liable for costs.
(9) In the result I make the draft order, attached to this judgment marked "X", an order of court.
Judge C Pretorius
Case number 66108/2013
Matter heard on 8 November 2017
For the Applicant Adv Oosthuizen
Instructed by Velile Tinto & Associates Inc
For the Respondent Adv O Ben-zeev
Instructed by The Legal Resources Centre
Date of Judgment 17/11/2017
Case no: 66108/2013
PRETORIA, 6 November 2017
BEFORE
THE HONOURABLE JUDGE PRETORIUS
In the matter between
CHANGING TIDES 17 (PROPRIETARY) LIMITED N.O. Applicant
and
CHRISTO
BRIAN COETZEE First Respondent
I.D.: [...]
(Married out of community of property)
JACOBUS
JOHANNES ODENDAAL Second Respondent
KAREN ODENDAAL Third Respondent
ORDER
Having heard counsel, read the documents filed of record and having considered the matter the following order is made:
1. Directing that the following parties be joined in these proceedings as Fourth to the Ninth Respondents in the main application:
1.1.·The Registrar of Deeds, Johannesburg (as Fourth Respondent);
1.2. The liquidators of Brusson's estate (as Fifth to Eight Respondents);
1.2.1. Cloete Cornelia Maria N.O. (Fifth Respondent)
1.2.2. Kaplan Harry N.O. (Sixth Respondent)
1.2.3. De Oliviera Anna Paula N.O. (Seventh Respondent)
1.2.4. Poopedi Sophie Mmapula N.O. (Eight Respondent); and
1.3. South African Home Loans Pty Limited (as Ninth Respondent);
2. Declaring the written agreements between the First, Second and Third Respondents and Brusson (Pty) Ltd null and void.
3. Declaring that the mortgage bond numbered B3617/2010 in respect of Erf [...], Roseacre Ext 3 Township, Johannesburg, Registration
Division IR, Province of Gauteng is invalid, unlawful and of no force or effect.
4. Setting aside the mortgage bond numbered B3617/2010 in respect of Erf [...], Roseacre Ext 3 Township, Johannesburg, Registration
Division IR, Province of Gauteng.
5. Ordering the Fourth Respondent, the Registrar of Deeds, Johannesburg to cancel the mortgage bond numbered B3617/2010 in favour of South African Home Loans in respect of Erf[...], Roseacre Ext 3 Township, Johannesburg, Registration Division IR, Province of Gauteng.
6. Declaring that the Second and Third Respondents are entitled to restitution of ownership of the property situated at Erf[...]
Roseacre Extension 3, Johannesburg.
7. Ordering the Fourth Respondent, the Registrar of Deeds, Johannesburg to cancel the title deed numbered T4456/2010 in respect of Erf [...], Roseacre Ext 3 Township, Johannesburg, Registration Division IR, Province of Gauteng, and to cancel the rights accorded to the first respondent (Coetzee, Christo Brian) by virtue thereof.
8. Ordering the Fourth Respondent, the Registrar of Deeds, Johannesburg to revive the title deed in the names of the Second and Third Respondents (Jacobus Johannes Odendaal and Karen Odendaal) in terms of section 6(2) of the Deeds Registries Act 47 of 1937.
9. Directing the Applicant to pay the costs of this application.
BY
ORDER OF COURT
THE
REGISTRAR
[1] 1918 AD 63 at 69
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