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South Africa Ruling

South Gauteng High Court, Johannesburg

Daly and Others v Hartog and Another (32975/2018) [2021] ZAGPJHC 674 (5 November 2021)

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The Court found that none of the grounds of appeal raised by the first respondent met the threshold required by section 17(1) of the Superior Courts Act. There was no genuine bona fide dispute of fact that warranted referral to trial, and the evidence was capable of resolution on the papers. The allegations of negligence and non-compliance with the FIC Act by Standard Bank were not substantiated. The Court held that there were no reasonable prospects of success on appeal and no compelling reason for the appeal to be heard. Accordingly, the application for leave to appeal was dismissed with costs, including the costs of senior counsel.

Court disposition

Application for leave to appeal dismissed with costs, including costs of senior counsel.

Orders

  • The application for leave to appeal is dismissed with costs inclusive of the costs of the employment of senior counsel.

02

Material facts

Parties

Brigitte Daly

Applicant Counsel: AG Sawma SC

Carin Ingrid Foulkes-Jones

Applicant Counsel: AG Sawma SC

Patrick Frederick Daly

Applicant Counsel: AG Sawma SC

Gavin Hartog

Respondent Counsel: GH Meyer

Standard Bank of South Africa LTD

Respondent Counsel: KD Iles

Amounts and remedies

  • Principal Sum Awarded in Original Judgment: ZAR 1,401,288.66
  • Prescribed Interest Rate Above Repurchase Rate: ZAR 3.5

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal Following Judgment and Order

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants opposed the leave to appeal, arguing that the grounds raised by the first respondent do not meet the threshold for leave to appeal as set out in section 17(1) of the Superior Courts Act. They submitted that there is no genuine dispute of fact that cannot be resolved on the papers, and that the previous judgment correctly dismissed the counter-application against Standard Bank. They further argued that the bank was not negligent and complied with the FIC Act, and that the costs order was appropriate.
Respondent
The first respondent argued that the matter should have been referred to trial due to a real and genuine dispute of fact. He contended that the Court erred in not making a finding on the referral to trial, and that Standard Bank was negligent and acted wrongfully by not following the FIC Act. The respondent also challenged the Court's acceptance of the bank's evidence, the handling of hearsay and opinion evidence, and the refusal to provide reasons for declining to refer the matter to trial. He submitted that these errors justified leave to appeal.

05

Court’s reasoning

  1. 01

    Section 17(1)(a) of the Superior Courts Act 10 of 2013

    Leave to appeal may only be granted if the appeal would have a reasonable prospect of success or if there is some other compelling reason for the appeal to be heard, such as conflicting judgments.

  2. 02

    Room Hire Co (Pty) Ltd v Jeppe Street Mansions (Pty) Ltd 1949 (3) SA 1155 (T)

    A matter should only be referred to trial if there is a genuine bona fide dispute of fact that cannot be resolved on the papers.

06

Ratio, limits and disposition

Ratio decidendi

The Court found that none of the grounds of appeal raised by the first respondent met the threshold required by section 17(1) of the Superior Courts Act. There was no genuine bona fide dispute of fact that warranted referral to trial, and the evidence was capable of resolution on the papers. The allegations of negligence and non-compliance with the FIC Act by Standard Bank were not substantiated. The Court held that there were no reasonable prospects of success on appeal and no compelling reason for the appeal to be heard. Accordingly, the application for leave to appeal was dismissed with costs, including the costs of senior counsel.

Obiter and limits

  • Section 17(1) of the Superior Courts Act has raised the threshold for granting leave to appeal above the common law standard.
  • The mere possibility that another court may come to a different conclusion is insufficient to justify leave to appeal.

Court disposition

Application for leave to appeal dismissed with costs, including costs of senior counsel.

  • The application for leave to appeal is dismissed with costs inclusive of the costs of the employment of senior counsel.

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

Ruling

[2021] ZAGPJHC 674

REPUBLIC

OF SOUTH AFRICA

IN

THE HIGH COURT OF SOUTH AFRICA

(GAUTENG LOCAL DIVISION, JOHANNESBURG)

CASE NO: 32975/2018

REPORTABLE:

NO

OF INTEREST TO OTHER JUDGES: NO

REVISED: NO

5 November 2021

In the matter between:

Daly, BrigItte

First Applicant

FOULKES – JONES, CARIN INGRID

Second Applicant

DALY,

PATRICK FREDERICK

Third Applicant

and

HARTOG, Gavin

First Respondent

Standard bank of south Africa LTD

Second Respondent/Third Party

Judgment in the application for leave to appeal

Mdalana-Mayisela J

1. This is an application for leave to appeal lodged by the first respondent against the whole judgment and order I made on 2 June 2021. In that judgment I made the following order:

“(34.1) The respondent (Hartog, Gavin) is ordered to pay to the first and second applicants jointly and severally in totality:

34.1.1 the sum of R1,401,288.66;

34.1.2 interest on the mentioned amount with effect from 5 June 2018 at the prescribed rate of 3.5% per annum above the repurchase rate as determined from time to time by the South African Reserve Bank, and as published in the Government Gazette to date of final payment;

34.2 The respondent (Hartog, Gavin) is ordered to pay the applicants costs of suit, inclusive of the costs consequent upon the engagement of senior counsel;

34.3 The respondents counter application against Standard Bank (third party) is dismissed with costs.”

2. I have considered the grounds of appeal as set out in the first respondent’s notice of application for leave to appeal dated 1 July 2021. I have also considered the written submissions that were filed by the parties for and against the leave to appeal.

3. Among the grounds of appeal the first respondent states that it applied for the application to be referred to trial in that real and genuine bona fide dispute of fact exists on the papers, and that the Court erred in not making any finding as to the referral of the matter to trial. There is no merit in this submission because there is no genuine bona fide dispute of fact which was not capable of resolution on paper.

4. The other ground of appeal is that the Court erred in not finding that the second respondent was negligent, and thereby acted wrongfully by not following the provisions of the FIC Act. I am also not satisfied that there is any merit in this ground of appeal.

5. The other grounds of appeal relates to the Court having erred in not rejecting the bank’s evidence set out in the answering affidavit, not making any finding in respect of any of the hearsay, opinion and speculation allegation raised in the affidavits, having failed to provide any reasons as to why the application to refer the matter to trial was refused, the finding that there was no sufficient evidence before the Court to establish a delict, and that the Court has not given an indication as to what facts were not before Court. I am of the view that all these grounds of appeal have no merit.

6. The test in respect of leave to appeal is one postulated in section 17(1)(a) of Superior Courts Act 10 of 2013 (“Superior Court’s Act”). I need not repeat the provisions of section 17(1) herein save to state that the test is whether the appeal would have a reasonable prospect of success; or whether there is some other compelling reason why the appeal should be heard, including conflicting judgments on the matter under consideration.

7. It seems to me that the Court hearing the leave to appeal must satisfy itself as to whether another Court would come to a different conclusion. The mere possibility is not sufficient because section 17(1) has now postulated a higher test than one that was applied at common law. Section 17(1) has qualified the test that the Court must apply when considering whether leave to appeal should be granted.

8. I am not satisfied that this leave to appeal meets the threshold postulated by section 17(1) of Superior Courts Act. I am of the view that the grounds of appeal relied on do not meet the standard set by section 17(1) of Superior Courts Act. There are no reasonable prospects of success on appeal at all. I also cannot find any compelling reason why the appeal should be heard. There are no conflicting judgments that are under consideration.

9. In the light of the fact that the leave to appeal does not bear prospect of success, it follows that it should be dismissed.

10. Accordingly, I make the following order:

10.1 the application for leave to appeal is dismissed with costs inclusive of the costs of the employment of senior counsel.

MMP Mdalana-Mayisela J

Judge of the High Court

Gauteng Division

(Digitally submitted by uploading on Caselines and emailing to the parties)

Date of delivery:

5 November 2021

Appearances:

For the Applicants:

Advocate AG Sawma SC

Instructed by:

Walter Swanepoel Attorney

For the Respondent: Adv GH Meyer

Instructed by:

Fluxmans Attorneys

For third party:

Adv KD Iles

Instructed by:

Van Hulsteyn Attorneys

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.

Room Hire Co (Pty) Ltd v Jeppe Street Mansions (Pty) Ltd 1949 (3) SA 1155 (T)

Case cited

Superior Courts Act 10 of 2013

Legislation

Legislation referenced in the available case record.

Financial Intelligence Centre Act (FIC Act)

Legislation

Legislation referenced in the available case record.

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