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South Africa Judgment

South Gauteng High Court, Johannesburg

De Freitas and Another vs Chamdor Meat Packers (Pty) Ltd and Others (13551/2018) [2021] ZAGPJHC 506 (26 January 2021)

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Source document

01

Holding and result

The court held that the applicants' particulars of claim disclosed a valid cause of action at the time of issue. The amendments sought pertain to new facts that occurred after the institution of summons but relate to the same oppression action. The respondents' objection, based solely on the timing of the new claims, is unfounded. Accepting the respondents' argument would unjustifiably preclude amendments that fall within the scope of the dispute but arise from subsequent events, leading to unnecessary delay and complication. The amendments are therefore granted.

Court disposition

Application for leave to amend particulars of claim granted; respondents to pay costs of opposition.

Orders

  • The amendments as envisaged in the applicants’ notice of amendment dated 4 August 2020 are granted.
  • The respondents are ordered to pay the opposed costs occasioned by the respondents’ notice of objection dated 19 August 2020.

02

Material facts

Parties

Jose Jorge De Freitas

Applicant Counsel: Adv. H.H Cowley

Franklin Domiciano De Aguar Menezes

Applicant Counsel: Adv. H.H Cowley

Chamdor Meat Packers (Pty) Ltd

Respondent Counsel: Adv. G. Fouché

Beefcor (Pty) Ltd

Respondent Counsel: Adv. G. Fouché

Petrus Hendrik Troskie N.O.

Respondent Counsel: Adv. G. Fouché

Johannes Lodiwikus Le Roux N.O.

Respondent Counsel: Adv. G. Fouché

Cornelius Johannes Hatem N.O.

Respondent Counsel: Adv. G. Fouché

Hendrik Lambertus Johannes Moulder

Respondent Counsel: Adv. G. Fouché

Erenscha Aletta Erasmus N.O.

Respondent Counsel: Adv. G. Fouché

Malcolm Joseph Farquharson

Respondent Counsel: Adv. G. Fouché

Petrus Hendrik Troskie

Respondent Counsel: Adv. G. Fouché

Casparus Jan Hendrik Wessels

Respondent Counsel: Adv. G. Fouché

Johan Robins Watson

Respondent Counsel: Adv. G. Fouché

Hermanus Abraham Van Staden

Respondent Counsel: Adv. G. Fouché

Wessel Johannes Muller

Respondent Counsel: Adv. G. Fouché

Troskie & De Wet CC

Respondent Counsel: Adv. G. Fouché

Ring Dryer Investments (Pty) Ltd

Respondent Counsel: Adv. G. Fouché

Gauteng Meat Inspection Services CC

Respondent Counsel: Adv. G. Fouché

03

Procedural history

  1. Posture

    Interlocutory Application / Application for Leave to Amend Particulars of Claim

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants, as minority shareholders, seek to amend their particulars of claim to include new facts and causes of action relating to oppressive conduct that occurred after the summons was issued. They argue that these amendments pertain to the same oppression action already instituted and are necessary to address new developments relevant to the dispute.
Respondent
The respondents object to the amendment on the basis that the new claims arose only after the summons was issued. They rely on the principle that a lawsuit cannot be instituted before a cause of action is complete, contending that the applicants cannot introduce claims for events that occurred post-summons within the current proceedings.

05

Court’s reasoning

  1. 01

    Bankorp Ltd v Andrerson Morshead 1997 (1) SA 251

    A new claim is permissible if a valid cause of action already appears from the summons.

  2. 02

    Bankorp Ltd v Andrerson Morshead 1997 (1) SA 251

    The court may allow an amendment even where the summons does not disclose a valid and complete claim, provided the plaintiff did not issue the summons merely to have litigation pending before having a claim.

06

Ratio, limits and disposition

Ratio decidendi

The court held that the applicants' particulars of claim disclosed a valid cause of action at the time of issue. The amendments sought pertain to new facts that occurred after the institution of summons but relate to the same oppression action. The respondents' objection, based solely on the timing of the new claims, is unfounded. Accepting the respondents' argument would unjustifiably preclude amendments that fall within the scope of the dispute but arise from subsequent events, leading to unnecessary delay and complication. The amendments are therefore granted.

Obiter and limits

  • Amendments that address events occurring after the institution of summons, but which are relevant to the existing dispute, should not be excluded merely due to their timing.
  • Restricting such amendments would serve no purpose other than to delay and complicate proceedings.

Court disposition

Application for leave to amend particulars of claim granted; respondents to pay costs of opposition.

  • The amendments as envisaged in the applicants’ notice of amendment dated 4 August 2020 are granted.
  • The respondents are ordered to pay the opposed costs occasioned by the respondents’ notice of objection dated 19 August 2020.

Source and reliance status

South Gauteng High Court, Johannesburg

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Judgment text

The complete available source text.

Source document

South Gauteng High Court, Johannesburg

Judgment

[2021] ZAGPJHC 506

IN THE HIGH COURT OF SOUTH AFRICA,

GAUTENG DIVISION, JOHANNESBURG

CASE NO: 13551/2018

REPORTABLE:

NO

OF INTEREST TO OTHER JUDGES: NO

REVISED.

In the matter between:

DE FREITAS: JOSE JORGE

First Applicant

MENEZES:

FRANKLIN DOMICIANO DE AGUAR Second Applicant

and

CHAMDOR MEAT PACKERS (PTY) LTD

First Respondent

BEEFCOR (PTY) LTD

Second Respondent

PETRUS HENDRIK TROSKIE N.O.

Third Respondent

PETRUS HENDRIK TROSKIE N.O.

Fourth Respondent

JOHANNES LODIWIKUS LE ROUX N.O.

Fifth Respondent

CORNELIUS JOHANNES HATEM N.O.

Sixth Respondent

HENDRIK

LAMBERTUS JOHANNES MOULDER

Seventh Respondent

N.O.

ERENSCHA ALETTA ERASMUS N.O.

Eighth Respondent

MALCOLM

JOSEPH FARQUHARSON

Ninth Respondent

PETRUS

HENDRIK TROSKIE

Tenth Respondent

CASPARUS

JAN HENDRIK WESSELS

Eleventh Respondent

JOHAN

ROBINS WATSON

Twelfth Respondent

HERMANUS

ABRAHAM VAN STADEN

Thirteenth Respondent

WESSEL

JOHANNES MULLER

Fourteenth Respondent

TROSKIE & DE WET CC

Fifteenth Respondent

RING DRYER INVESTMENTS (PTY) LTD

Sixteenth Respondent

GAUTENG

MEAT INSPECTION SERVICES CC

Seventeenth Respondent

JUDGMENT

ROME, AJ:

INTRODUCTION

1

This application for leave to amend particulars of claim is opposed on one basis only.

2

In this judgment I refer to the plaintiffs (being the applicants in this present interlocutory application) as “the applicants” and the defendants (in the action) as “the respondents”

3

A perusal of the nature of the particulars of claim as summarised in the founding affidavit indicates that: the applicants as minority shareholders in the first defendant, seek various oppression type remedies against it and various of its other stakeholders and directors (hence the number of defendants who are joined) whom the applicants describe as “joint wrongdoers”. The action was instituted in 2018.

4

The applicants served their notice of intention to amend during August 2020. The applicants in their notice sought to amend their particulars of claim in several respects. Only one aspect of the notice of amendment elicited an objection.

5

The objection is that in terms of the amendment the applicants seek to introduce two new causes of action, which only arose post the institution of summons. In other words the respondents contend that two of the

paragraphs of the amendment introduce two new claims that are based on alleged oppressive conduct that first commenced in March 2020, which post-dates the summons; as such, according to the respondents, these new claims cannot legitimately be included within the ambit of the action initiated by the service of the summons.

6 The grounds of the objection are hence narrow.

7 The respondents’ objection is based on the statement of Voet that there can be no lawsusit before something is due. Hence the contention is that before issuing summons a plaintiff must therefore have a complete cause of action. This precept however as was explained in Bankorp Ltd v Andrerson Morshead 1997 (1) SA 251 is subject to at least two further qualifying considerations.

8

The first is that it has long been the law that a new claim is permissible it a valid cause of action already appears from the summons. The second is that even where the summons does not disclose a valid and complete claim, the Court may allow an amendment if the plaintiff did not issue the summons merely to have litigation pending before s/he had a claim.

9

In this matter both of the above requirements are fatal to the respondents’ objection. It is common cause that the particulars of claim disclosed a cause of action at the time they were issued. In any event the events alleged in the relevant aspects of the amendment pertain to the very oppression action that has already been instituted but are now perforce the subject of an amendment because they pertain to new facts that occurred post the institution of summons.

10 If the respondents’ arguments were to be accepted it would preclude the introduction of amendments that clearly fall within the ambit of the lis between the parties but which pertain to events that occur after the issuing of summons. This would serve no purpose other than to delay and complicate proceedings.

ORDER

11 The following order is made:

a. The amendments as envisaged in the applicants’ notice of amendment dated 4 August 2020 are granted.

b. The respondents are ordered to pay the opposed costs occasioned by the respondents’ notice of objection dated 19 August 2020.

26 January 2021

G

ROME

ACTING

JUDGE OF THE HIGH COURT

GAUTENG LOCAL DIVISION, JOHANNESBURG

Appearances

For the applicants: Adv. H.H Cowley

Instructed by:

Martin Hennig Attorneys

For the respondents: Adv. G. Fouché

Instructed by:

Manley Incorporated

Date of hearing:

25 January 2020

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Authorities

Authorities used by the court

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

Bankorp Ltd v Andrerson Morshead 1997 (1) SA 251

Case cited

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