Davehill (Pty) Ltd. and Others v Community Development Board (353/86) [1987] ZASCA 120; [1988] 1 All SA 388 (A) (30 September 1987)

Davehill (Pty) Ltd. and Others v Community Development Board (353/86) [1987] ZASCA 120; [1988] 1 All SA 388 (A) (30 September 1987)

The court held that statutory interest under section 12(3) of the Expropriation Act is payable from the date of possession on any outstanding portion of compensation and ceases when compensation is paid in full. The obligation to pay statutory interest arises on the same date as the final compensation payment, and failure to pay statutory interest at that time places the respondent in mora, entitling the appellants to mora interest on the outstanding statutory interest until it is paid. The court rejected the claim for statutory interest at the time of interim payments, finding that such interest is only payable upon final determination and payment of compensation. The prescribed rate of...

Citation
[1987] ZASCA 120
Parties
Appellant: Davehill (Pty) Limited; Appellant: Gannet Enterprises (Pty) Limited; Appellant: Tira (Pty) Limited; Appellant: Seventy Four West (Pty) Limited; Appellant: Linfrank (Pty) Limited; Appellant: Sonneblom Beleggings (Edms) Beperk; Respondent: Community Development Board
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
30 September 1987
Case Number
353/86
Procedural Posture
Civil Appeal / Appeal From the Transvaal Provincial Division; Judgment Delivered After Leave to Appeal Granted
Outcome
Appeal allowed in part; application to further amend notice of motion refused; respondent ordered to pay mora interest at the prescribed rate on specified amounts for specified periods; costs awarded to appellants subject to exclusions.
Judges
Rabie, Botha, Grosskopf, Smalberger, Boshoff
Legal Topics
Expropriation Act, Statutory Interest, Mora Interest, Liquidated Damages, Prescribed Rate of Interest
Land and Property Civil Procedure Expropriation Act Statutory Interest Mora Interest Liquidated Damages Prescribed Rate of Interest

Case Brief

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Parties

Davehill (Pty) Limited

Appellant

Gannet Enterprises (Pty) Limited

Appellant

Tira (Pty) Limited

Appellant

Seventy Four West (Pty) Limited

Appellant

Linfrank (Pty) Limited

Appellant

Sonneblom Beleggings (Edms) Beperk

Appellant

Community Development Board

Respondent

Procedural Posture

Civil Appeal / Appeal From the Transvaal Provincial Division; Judgment Delivered After Leave to Appeal Granted

Legal Issues

  1. 1 Whether the respondent is liable to pay mora interest on statutory interest outstanding from the date of final compensation payment until full payment of statutory interest.
  2. 2 Whether statutory interest is payable at the time of interim compensation payments under section 11(1) of the Expropriation Act.
  3. 3 At what rate and for which periods mora interest is to be calculated on the outstanding statutory interest.

Ratio Decidendi

The court held that statutory interest under section 12(3) of the Expropriation Act is payable from the date of possession on any outstanding portion of compensation and ceases when compensation is paid in full. The obligation to pay statutory interest arises on the same date as the final compensation payment, and failure to pay statutory interest at that time places the respondent in mora, entitling the appellants to mora interest on the outstanding statutory interest until it is paid. The court rejected the claim for statutory interest at the time of interim payments, finding that such interest is only payable upon final determination and payment of compensation. The prescribed rate of...

Court Disposition

Appeal allowed in part; application to further amend notice of motion refused; respondent ordered to pay mora interest at the prescribed rate on specified amounts for specified periods; costs awarded to appellants subject to exclusions.

Orders

  • The appellants' application to further amend their notice of motion is refused.
  • The appeal is allowed, with costs, including those tendered by the respondent in its letter of 2 January 1987, those incurred subsequent to acceptance of the tender, and the costs of two counsel, but excluding the appellants' costs attendant upon the preparation and service of the further amended notice of motion.