D&K Konstruksie Bk v De Villiers N.O and Others (4092/11) [2011] ZAWCHC 316 (15 August 2011)

D&K Konstruksie Bk v De Villiers N.O and Others (4092/11) [2011] ZAWCHC 316 (15 August 2011)

The court found that a valid arbitration agreement existed between the applicant and the Trust, as evidenced by the written building contract and subsequent correspondence confirming the parties' intention to refer disputes to arbitration before Mr. R. H. Hiemstra SC. The disputes regarding extra building work and...

Source-derived case information.

Citation
[2011] ZAWCHC 316
Parties
Applicant: D & K Konstruksie BK; Respondent: Elias Lourens Kamfer De Villiers N.O.; Respondent: Alida De Villiers N.O.; Respondent: Martha Magdalena Prinsloo N.O. obo ABSA Trust Beperk
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
15 August 2011
Case Number
4092/11
Procedural Posture
Urgent Application / Application for Enforcement of Arbitration Agreement
Outcome
Application granted. The dispute is referred to arbitration and the Trust is ordered to pay costs on an attorney and client scale, limited to a junior advocate.
Judges
A Schippers
Legal Topics
Arbitration Agreement Enforcement, Construction Contract Dispute, Specific Performance, Costs Award, Repudiation of Contract
Civil Procedure Commercial and Corporate Arbitration Agreement Enforcement Construction Contract Dispute Specific Performance Costs Award Repudiation of Contract

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Parties

D & K Konstruksie BK

Applicant

Elias Lourens Kamfer De Villiers N.O.

Respondent

Alida De Villiers N.O.

Respondent

Martha Magdalena Prinsloo N.O. obo ABSA Trust Beperk

Respondent

Procedural Posture

Urgent Application / Application for Enforcement of Arbitration Agreement

  1. 1 Whether a valid arbitration agreement exists between the applicant and the Trust.
  2. 2 Whether the dispute regarding extra building work and defective workmanship falls within the scope of the arbitration clause.
  3. 3 Whether the Trust repudiated the arbitration agreement after previously consenting to arbitration.

Ratio Decidendi

The court found that a valid arbitration agreement existed between the applicant and the Trust, as evidenced by the written building contract and subsequent correspondence confirming the parties' intention to refer disputes to arbitration before Mr. R. H. Hiemstra SC. The disputes regarding extra building work and defective workmanship arose directly from the contract and fell within the broad scope of the arbitration clause. The Trust's later denial of the existence of a dispute was contradicted by its prior conduct, including arranging dates and expressing satisfaction with the terms of reference. The Trust's change of stance was unjustified and amounted to repudiation of the...

Court Disposition

Application granted. The dispute is referred to arbitration and the Trust is ordered to pay costs on an attorney and client scale, limited to a junior advocate.

Orders

  • It is declared that a valid arbitration agreement exists between the applicant and the Trust.
  • The disputes regarding extra building work, defective workmanship, and damages arising from the building contract dated 29 September 2006 are referred to arbitration before Mr. R. C. Hiemstra SC, in accordance with the Arbitration Act 42 of 1965.