Da Cruz v Bernardo (2020/26428) [2021] ZAGPJHC 493; [2022] 1 All SA 414 (GJ); 2022 (2) SA 185 (GJ) (10 August 2021)

Da Cruz v Bernardo (2020/26428) [2021] ZAGPJHC 493; [2022] 1 All SA 414 (GJ); 2022 (2) SA 185 (GJ) (10 August 2021)

The court held that the in duplum rule does not apply to limit moratory interest awarded on a liquidated debt where the rate is determined by statute and not by agreement. The Prescribed Rate of Interest Act does not incorporate the in duplum rule, and the court retains discretion to award interest exceeding the capital amount, particularly where delays in litigation are not attributable to the plaintiff. The judgment of Foulkes-Jones AJ was unequivocal and did not impose any interest ceiling; therefore, the full interest amount awarded must be enforced. The court further found that it was functus officio regarding the liability for interest as determined in the prior judgment, and absent...

Citation
[2021] ZAGPJHC 493
Parties
Applicant: Victor Manuel Rosa Da Cruz; Respondent: Fernando Da Silva Bernardo
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
10 August 2021
Case Number
2020/26428
Procedural Posture
Civil Application / Application for Declaratory Relief Post Judgment
Outcome
Application granted. The respondent is liable to pay the applicant the balance of moratory interest awarded in the prior judgment, together with further interest and costs.
Judges
Turner AJ
Legal Topics
In Duplum Rule, Prescribed Rate of Interest Act, Mora Interest, Judgment Enforcement
Civil Procedure Banking and Finance In Duplum Rule Prescribed Rate of Interest Act Mora Interest Judgment Enforcement

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Parties

Victor Manuel Rosa Da Cruz

Applicant

Fernando Da Silva Bernardo

Respondent

Procedural Posture

Civil Application / Application for Declaratory Relief Post Judgment

Legal Issues

  1. 1 Does the in duplum rule apply to mora interest claimed on a liquidated debt under section 1(1) of the Prescribed Rate of Interest Act?
  2. 2 Can the in duplum rule be relied upon to limit liability for interest awarded in a judgment where the interest exceeds the capital amount?
  3. 3 Is the court functus officio regarding the liability for interest awarded in the prior judgment?

Ratio Decidendi

The court held that the in duplum rule does not apply to limit moratory interest awarded on a liquidated debt where the rate is determined by statute and not by agreement. The Prescribed Rate of Interest Act does not incorporate the in duplum rule, and the court retains discretion to award interest exceeding the capital amount, particularly where delays in litigation are not attributable to the plaintiff. The judgment of Foulkes-Jones AJ was unequivocal and did not impose any interest ceiling; therefore, the full interest amount awarded must be enforced. The court further found that it was functus officio regarding the liability for interest as determined in the prior judgment, and absent...

Court Disposition

Application granted. The respondent is liable to pay the applicant the balance of moratory interest awarded in the prior judgment, together with further interest and costs.

Orders

  • The respondent is liable to pay the applicant R785,008.56, being the balance due in respect of moratory interest awarded in the prior judgment.
  • Interest on R785,008.56 a tempore mora to date of final payment, both days inclusive.