South Africa Judgment

South Gauteng High Court, Johannesburg

Dale v Newey and Another (42594/2019) [2021] ZAGPJHC 1 (28 January 2021)

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Source document

01

Holding and result

The court found that there was a material dispute of fact regarding the existence and terms of an alleged oral lease agreement between the applicant and the first respondent. In accordance with the principles set out in ABSA Bank Limited v Molotsi, the matter could not be resolved on affidavit and was appropriately referred to oral evidence. The parties agreed to the referral and the court adopted their proposed formulation of the issue to be determined. The court declined to make a costs order at this stage, noting that the outcome of the oral evidence would inform the incidence of costs and that premature costs orders could embitter the parties and hinder resolution. The costs of the urgent application were also to be determined by the court hearing the oral evidence, as agreed by the parties.

Court disposition

The matter is referred to oral evidence on the issue of the existence, terms, and lawful termination of an oral lease agreement between the applicant and the first respondent. Costs are reserved for determination after oral evidence.

Orders

  • The issue of whether or not an oral lease agreement exists between the applicant and the first respondent, the terms thereof, and whether the termination thereof was lawful, in respect of the premises at 1 Marquise Place, Jukskei Park, Randburg, Johannesburg, Gauteng is referred to oral evidence on a date to be arranged with the Registrar.
  • The applicant and first respondent may call any witness who deposed to any affidavit in the application proceedings.
  • The applicant and first respondent are obliged to make available for cross-examination such witnesses who deposed to affidavits in these proceedings to the extent that such party persists in seeking to place reliance on that person’s evidence.
  • The applicant and first respondent may call further witnesses who were not deponents to affidavits, subject to serving a statement of evidence at least thirty court days before the hearing, unless the court permits otherwise.
  • Any witness may be subpoenaed to give evidence or furnish documents at the hearing.
  • Serving a statement or subpoenaing a witness does not oblige a party to call that witness.
  • Uniform Rule 35 applies to discovery of documents on the issue referred to oral evidence.
  • The incidence of costs, including any costs arising from the hearing of this application on 25 January 2021, will be determined after the hearing of oral evidence.
  • The costs of the urgent application of 28 November 2020 under case number 40638/2020 are to be determined by the court hearing the application under this case number 42594/2019.

02

Material facts

Parties

Jaycen Trevor Dale

Applicant Counsel: J C J Nel

Michaela Sarah Newey

Respondent Counsel: N Riley

City of Johannesburg

Respondent

03

Procedural history

  1. Posture

    Eviction Application / Referral to Oral Evidence

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant seeks the eviction of the first respondent from the premises, contending that there is no valid lease agreement entitling her to remain in occupation. Upon consideration of the ABSA Bank v Molotsi decision, the applicant elected to refer the matter to oral evidence rather than risk dismissal due to a dispute of fact that cannot be resolved on affidavit. The applicant submits that costs should be costs in the cause, as is usual in such referrals.
Respondent
The first respondent opposes the eviction, asserting the existence of an oral lease agreement that entitles her to remain in occupation. She argues that the applicant should bear the costs of the hearing on 25 January 2021, as the election to refer the matter to oral evidence was only made on the day of the hearing, and the applicant should have made this election earlier in light of the Molotsi decision.

05

Court’s reasoning

  1. 01

    ABSA Bank Limited v Molotsi [2016] ZAGPJHC 36 (8 March 2016), paras 25-27

    Where disputes of fact arise in motion proceedings that cannot be resolved on affidavit, the court may refer the matter to oral evidence or trial rather than dismiss the application.

  2. 02

    Law Society, Northern Provinces v Mogani 2010 (1) SA 186 (SCA) para 23

    The court has a discretion regarding costs, and should consider the circumstances of the parties and the nature of the dispute.

  3. 03

    De Reszke v Maras and others 2006 (1) SA 401 (C) para 33

    Referral to oral evidence is appropriate where the resolution of a material factual dispute is necessary for the determination of the application.

  4. 04

    Lekup Prop Co No 4 (Pty) Ltd v Wright 2012 (5) SA 246 (SCA) at 258I

    The court hearing oral evidence may determine both the substantive issue and the incidence of costs, including costs of related urgent applications.

06

Ratio, limits and disposition

Ratio decidendi

The court found that there was a material dispute of fact regarding the existence and terms of an alleged oral lease agreement between the applicant and the first respondent. In accordance with the principles set out in ABSA Bank Limited v Molotsi, the matter could not be resolved on affidavit and was appropriately referred to oral evidence. The parties agreed to the referral and the court adopted their proposed formulation of the issue to be determined. The court declined to make a costs order at this stage, noting that the outcome of the oral evidence would inform the incidence of costs and that premature costs orders could embitter the parties and hinder resolution. The costs of the urgent application were also to be determined by the court hearing the oral evidence, as agreed by the parties.

Obiter and limits

  • The court noted that the parties had a long-term relationship spanning seventeen years, and that the dispute may involve more than mere commercial concerns between lessor and lessee.
  • Premature costs orders may further embitter the parties and prove to be an obstacle to resolving the dispute.
  • The applicant should not be faulted for adopting a cautious approach by electing referral to oral evidence at the commencement of argument.

Court disposition

The matter is referred to oral evidence on the issue of the existence, terms, and lawful termination of an oral lease agreement between the applicant and the first respondent. Costs are reserved for determination after oral evidence.

  • The issue of whether or not an oral lease agreement exists between the applicant and the first respondent, the terms thereof, and whether the termination thereof was lawful, in respect of the premises at 1 Marquise Place, Jukskei Park, Randburg, Johannesburg, Gauteng is referred to oral evidence on a date to be arranged with the Registrar.
  • The applicant and first respondent may call any witness who deposed to any affidavit in the application proceedings.
  • The applicant and first respondent are obliged to make available for cross-examination such witnesses who deposed to affidavits in these proceedings to the extent that such party persists in seeking to place reliance on that person’s evidence.
  • The applicant and first respondent may call further witnesses who were not deponents to affidavits, subject to serving a statement of evidence at least thirty court days before the hearing, unless the court permits otherwise.
  • Any witness may be subpoenaed to give evidence or furnish documents at the hearing.
  • Serving a statement or subpoenaing a witness does not oblige a party to call that witness.
  • Uniform Rule 35 applies to discovery of documents on the issue referred to oral evidence.
  • The incidence of costs, including any costs arising from the hearing of this application on 25 January 2021, will be determined after the hearing of oral evidence.
  • The costs of the urgent application of 28 November 2020 under case number 40638/2020 are to be determined by the court hearing the application under this case number 42594/2019.

Source and reliance status

South Gauteng High Court, Johannesburg

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Judgment reading view

Judgment text

The complete available source text.

Source document

South Gauteng High Court, Johannesburg

Judgment

[2021] ZAGPJHC 1

SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document in compliance with the law and SAFLII Policy

REPUBLIC

OF SOUTH AFRICA

IN

THE HIGH COURT OF SOUTH AFRICA

GAUTENG LOCAL DIVISION, JOHANNESBURG

(1) REPORTABLE: No

(2) OF INTEREST TO OTHER JUDGES: No

Case No.: 42594/2019

In the matter between:

DALE,

JAYCEN TREVOR Applicant

and

NEWEY,

MICHAELA SARAH

First Respondent

CITY

OF JOHANNESBURG

Second Respondent

JUDGMENT

This judgment was handed down electronically by circulation to the parties’ legal representatives by email and is deemed to be handed down about such circulation.

Gilbert AJ

1. The applicant seeks an eviction order against the first respondent who resides at [….].

2. The first respondent has opposed the relief and full sets of affidavits have been exchanged.

3. The applicant applied on 13 October 2020 to the registrar for a hearing on the opposed roll. On 26 October 2020 the Registrar allocated 25 January 2021, and the matter was set down for hearing.

4. Thereafter, on 28 November 2020 the first respondent launched an urgent application under case number 40638/2020 for the restoration of electrical supply to the property. It appears that such an urgent application was resolved save for the incidence of costs, which the parties agreed to be argued on the same day as this eviction application.

5. As matters now stand, the applicant seeks final relief against the first respondent in the form of an eviction, which the first respondent opposes. The second respondent has not participated in the proceedings.

6. After I had been allocated the matter and during the week preceding the hearing, I through my registrar drew the attention of the parties to the decision of the Full Court of this Division in ABSA Bank Limited v Molotsi[1] as to the election, and the timing thereof, to be made by an applicant when seeking relief by way of motion proceedings whether to persist with seeking such final relief by way of motion or whether instead to seek a referral of the matter either to trial or to oral evidence.

7. At the commencement of argument, I enquired of Nr Nel, counsel for the applicant as to the applicant’s position having considered ABSA Bank v Molotsi. Mr Nel elected to seek a referral rather than, to use his words, “run the risk” that if the court found that there was a dispute of fact that could not be resolved on affidavit that the application was dismissed.

8. After having been stood down the matter on various occasions during the course of the day to enable the applicant and the first respondent to engage with each other on the formulation of an appropriate order (such as to whether to oral evidence on certain issues or to trial), the parties became ad idem that there should be a referral to oral evidence on the limited issue whether there was and remains an oral agreement in place between the applicant and the first respondent that entitles the first respondent to remain in occupation of the premises.

9. The parties left it in the hands of the court to formulate the precise ambit of such issue to be decided by way of oral evidence. After I reserved judgment, the parties again considered their position and with my leave placed before me their proposed formulation of the issue to be referred to oral evidence. I adopt that formulation, and add the usual ancillary relief.

10. The parties also made submissions as to the incidence of costs that should follow upon such a referral, particularly in relation to the hearing of 25 January 2021. The applicant submitted that the costs should be costs in the cause as that was, Mr Nel submitted, the usual costs order. Mr Riley for the first respondent submitted that the applicant should be ordered to pay the costs in relation to the hearing of 25 January 2021. Mr Riley submitted that the applicant had only made the election to seek a referral on the day of the hearing and should have taken cognisance of Molotsi earlier and so should have made the election earlier for a referral to oral evidence.

11. It may transpire, with the benefit of hindsight following oral evidence, that the defence raised by the first respondent of an oral agreement was opportunistic and had no merit. It may also transpire after the benefit of oral evidence that the defence was well-founded. Or it may transpire after the benefit of oral evidence that although the defence fails, it was nonetheless of sufficient merit that it warranted a referral to oral evidence. Accordingly, the outcome of oral evidence will inform the incidence of costs and so it would be premature at this stage to make any order relating to the incidence of costs.

12. I also take into consideration that Mr Nel did, albeit only at the commencement of argument, make the election and did not persist in seeking to argue the matter on its merits. The applicant, in the present circumstances, should not be faulted for adopting the more cautious approach that he did.

13. Costs is a matter of discretion. I am reticent to grant a costs order in the context of the present matter where it is common cause that the parties resided together from August 2001 until November 2017. The present application is fallout of that long-term relationship of some seventeen years. There may be more at play that commercial concerns as between lessor and lessee. To grant

a costs order at this stage may further embitter the parties and prove to be an obstacle to conducively resolving the dispute.

14. The parties in their formulation of the referral also seek that the costs of the urgent application be determined by the court hearing the oral evidence. The court hearing the oral evidence on the issue as referred would not only determine that issue after hearing evidence, but will consider whether to grant the eviction order after a consideration of all the affidavits together with the oral

evidence.[2] There does not appear any reason why that court would not be able to also determine the incidence of costs in relation to the urgent application, as the parties have already agreed. A specific order in relation thereto appears unnecessary. Nonetheless, I make provision for the parties’ agreement in my order.

In the circumstances, the following order is granted:

1. The issue of whether or not an oral lease agreement exists between the applicant and the first respondent, the terms thereof, and whether the termination thereof was lawful, in respect of the premises situated at 1 Marquise Place, Jukskei Park, Randburg, Johannesburg, Gauteng is referred to oral evidence on a date to be arranged with the Registrar.

2. Unless this court otherwise directs, in relation to the issue referred to oral evidence:

2.1. the applicant and the first respondent will be entitled to call any witness who deposed to any affidavit in the application proceedings;

2.2. the applicant and the first respondent are obliged to make available for cross-examination such witnesses who deposed to affidavits in these proceedings to the extent that such party persists in seeking to place any reliance on that person’s evidence in the affidavits;

2.3. the applicant and the first respondent are entitled to call any further witnesses who were not deponents to affidavits in these application proceedings:

2.3.1. provided that such party has at least thirty court days’ before the date of the hearing of the oral evidence served on the other party a statement of the evidence in-chief to be given by such person;

2.3.2. but subject to the court, at the hearing of the oral evidence, permitting such further witnesses to be called notwithstanding that no such statement has been served in respect of his or her evidence;

2.4. the applicant and the first respondent may subpoena any witness to give evidence at the hearing or to furnish documents whether such person has consented to furnish a statement or not in relation to the issue referred to oral evidence;

2.5. that a party has served a statement in terms of sub-paragraph 2.3 above or has subpoenaed a witness shall not oblige such party to call the witness concerned;

2.6. Uniform Rule 35 will be applicable to the discovery of documents on the issue referred to oral evidence.

3. The incidence of costs, including any costs arising from the hearing of this application on 25 January 2021, will be determined after the hearing of oral evidence.

4. It is recorded that the parties have agreed that the costs of the urgent application of 28 November 2020 under case number 40638/2020 are to be determined by the court hearing the application under this case number 42594/2019.

Gilbert AJ

Date of hearing:

25 January 2021

Date of judgment:

28 January 2021

Counsel for the Applicant:

J C J Nel

Instructed by:

D L Wilson Attorneys

Counsel for the First Respondent: N Riley

Instructed by:

Bolus Attorneys

[1] Reported on SAFLII as [2016] ZAGPJHC36 (8 March 2016), paragraphs 25 to 27, applying Law Society, Northern Provinces v Mogani 2010 (1) SA 186 (SCA) para 23 and De Reszke v Maras and others 2006 (1) SA 401 (C) para 33.

[2] Lekup Prop Co No 4 (Pty) Ltd v Wright 2012 (5) SA 246 (SCA) at 258I.

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

ABSA Bank Limited v Molotsi [2016] ZAGPJHC 36 (8 March 2016)

Case cited

Law Society, Northern Provinces v Mogani 2010 (1) SA 186 (SCA)

Case cited

De Reszke v Maras and others 2006 (1) SA 401 (C)

Case cited

Lekup Prop Co No 4 (Pty) Ltd v Wright 2012 (5) SA 246 (SCA)

Case cited

Uniform Rule 35

Legislation

Legislation referenced in the available case record.

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