Costa N.O and Others v Arvum Exports (Pty) Ltd and Others (A272/2014) [2016] ZAWCHC 95 (9 May 2016)

Costa N.O and Others v Arvum Exports (Pty) Ltd and Others (A272/2014) [2016] ZAWCHC 95 (9 May 2016)

The majority held that Mr Costa had at least ostensible authority to bind the KBT to the PLA and SMA, based on the resolution signed by all trustees and the conduct of the parties. The resolution was of general import and had not been revoked, and the trustees' conduct allowed Mr Costa free reign over trust affairs. The agreements were implemented for several years, and the trust benefited from them. The purported cancellation of the agreements by the KBT was invalid, as there was no proven breach by the respondents and the KBT was in mora from May 2012. The respondents were entitled to enforce the agreements and seek interdictory relief regarding the Flavor Fall varietal, as they held...

Citation
[2016] ZAWCHC 95
Parties
Appellant: Zelda Margaretha Costa N.O; Appellant: Daniel Coetzee N.O; Appellant: Johannes Nicolaas Jacobus van der Westhuizen N.O; Appellant: Estate of the Late Alberto Costa; Respondent: Arvum Exports (Pty) Ltd (formerly Unlimited Fruit (Pty) Ltd); Respondent: Unlimited Fruit (Pty) Ltd (formerly Arvum Exports (Pty) Ltd); Respondent: Arvum Finance (Pty) Ltd
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
9 May 2016
Case Number
A272/2014
Procedural Posture
Civil Appeal / Appeal From Judgment and Orders of the Court a Quo
Outcome
Appeal dismissed except for amendment of orders to remove personal liability; costs awarded to respondents including costs of two counsel.
Judges
K M Savage, Yekiso, A.H. Veldhuizen
Legal Topics
Trustee Authority, Ostensible Authority, Specific Performance, Contract Cancellation, Plant Breeders Rights
Commercial and Corporate Civil Procedure Trustee Authority Ostensible Authority Specific Performance Contract Cancellation Plant Breeders Rights

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 16 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Zelda Margaretha Costa N.O

Appellant

Daniel Coetzee N.O

Appellant

Johannes Nicolaas Jacobus van der Westhuizen N.O

Appellant

Estate of the Late Alberto Costa

Appellant

Arvum Exports (Pty) Ltd (formerly Unlimited Fruit (Pty) Ltd)

Respondent

Unlimited Fruit (Pty) Ltd (formerly Arvum Exports (Pty) Ltd)

Respondent

Arvum Finance (Pty) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From Judgment and Orders of the Court a Quo

Legal Issues

  1. 1 Whether Mr Costa had actual or ostensible authority to enter into the Supply and Marketing Agreement (SMA) and Production Loan Agreement (PLA) on behalf of the Klein Botrivier Trust (KBT).
  2. 2 Whether the KBT is bound by the agreements as a result of an abuse of the trust form.
  3. 3 Whether Mr Costa breached his warranty of authority if not authorised.

Ratio Decidendi

The majority held that Mr Costa had at least ostensible authority to bind the KBT to the PLA and SMA, based on the resolution signed by all trustees and the conduct of the parties. The resolution was of general import and had not been revoked, and the trustees' conduct allowed Mr Costa free reign over trust affairs. The agreements were implemented for several years, and the trust benefited from them. The purported cancellation of the agreements by the KBT was invalid, as there was no proven breach by the respondents and the KBT was in mora from May 2012. The respondents were entitled to enforce the agreements and seek interdictory relief regarding the Flavor Fall varietal, as they held...

Court Disposition

Appeal dismissed except for amendment of orders to remove personal liability; costs awarded to respondents including costs of two counsel.

Orders

  • Subject to the amendment regarding personal liability, the appeal is dismissed with costs, including the costs of two counsel.
  • Paragraphs 2, 3, 4 and 5 of the orders of the court a quo are altered to substitute 'personally' with 'in their official capacities'.