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South Africa Judgment

High Courts - Gauteng

Du Plessis v Swartz (17015/03) [2003] ZAGPHC 12 (9 October 2003)

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01

Holding and result

The respondent's evasive affidavit does not directly dispute the amounts claimed by the applicant nor provide evidence of payment. The respondent's willingness to debate the accounts is noted, but his failure to address the substantive monetary claims entitles the applicant to relief. The court finds no genuine dispute of fact requiring referral to trial or oral evidence. Accordingly, the applicant is granted the relief sought in prayers 1, 2, 3, 4, 5, and 8 of the notice of motion, which includes payment of specified amounts, monthly payments pending final account determination, a full accounting of partnership books, and an interdict against withdrawals from the partnership account.

Court disposition

Application granted in terms of prayers 1, 2, 3, 4, 5, and 8 of the notice of motion dated 27 June 2003.

Orders

  • The respondent is ordered to pay the applicant R93,000 and R35,000 immediately.
  • The respondent is ordered to pay R40,000 per month to the applicant from 1 July 2003 until final determination of the applicant's loan account in the partnership books.
  • The respondent must pay the full balance to the applicant after determination of the loan account.
  • The respondent must render a full account of the partnership books within 10 days of the order.
  • The respondent is interdicted from making any withdrawals from the partnership business account until the matter is finalised, but must deposit all required amounts.
  • The respondent is ordered to pay the costs of the application.

02

Material facts

Parties

Martin Rodney Michael Du Plessis

Applicant

Enver Lionel Swartz

Respondent Counsel: Mr Cajee

Amounts and remedies

  • Immediate Payment to Applicant: ZAR 93,000
  • Immediate Payment to Applicant: ZAR 35,000
  • Monthly Payment to Applicant: ZAR 40,000

03

Procedural history

  1. Posture

    Urgent Application / Application for Final Relief

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contends that the respondent owes specific amounts arising from the dissolution of their partnership and seeks immediate payment. He requests a full accounting of the partnership books and an order preventing the respondent from making withdrawals from the partnership account until the matter is resolved. In the alternative, the applicant seeks the appointment of a liquidator to wind up the partnership and distribute assets.
Respondent
The respondent does not oppose the relief sought in prayers 3 and 4, claiming willingness to debate the accounts. He asserts that disputes of fact exist regarding the alleged debts and requests referral to trial or oral evidence. However, he fails to directly dispute the amounts claimed or provide proof of payment.

05

Court’s reasoning

  1. 01

    Standard Bank of South Africa Ltd v Neugarten 1987 (3) SA 695 (W)

    A party who does not directly dispute a debt and fails to provide evidence of payment may be held liable for the amount claimed.

  2. 02

    Partnership Act 1932

    Where a partnership is dissolved, each partner is entitled to a full accounting and payment of any balance due.

  3. 03

    Ex parte Lebowa Development Corporation Ltd 1989 (3) SA 71 (T)

    The court may appoint a liquidator to wind up a partnership and distribute assets if the parties cannot agree on the final account.

06

Ratio, limits and disposition

Ratio decidendi

The respondent's evasive affidavit does not directly dispute the amounts claimed by the applicant nor provide evidence of payment. The respondent's willingness to debate the accounts is noted, but his failure to address the substantive monetary claims entitles the applicant to relief. The court finds no genuine dispute of fact requiring referral to trial or oral evidence. Accordingly, the applicant is granted the relief sought in prayers 1, 2, 3, 4, 5, and 8 of the notice of motion, which includes payment of specified amounts, monthly payments pending final account determination, a full accounting of partnership books, and an interdict against withdrawals from the partnership account.

Obiter and limits

  • The respondent's approach to the allegations of monies due was evasive and did not assist the court in resolving the matter.
  • Partnership disputes between attorneys should be resolved with transparency and accountability, especially regarding financial matters.

Court disposition

Application granted in terms of prayers 1, 2, 3, 4, 5, and 8 of the notice of motion dated 27 June 2003.

  • The respondent is ordered to pay the applicant R93,000 and R35,000 immediately.
  • The respondent is ordered to pay R40,000 per month to the applicant from 1 July 2003 until final determination of the applicant's loan account in the partnership books.
  • The respondent must pay the full balance to the applicant after determination of the loan account.
  • The respondent must render a full account of the partnership books within 10 days of the order.
  • The respondent is interdicted from making any withdrawals from the partnership business account until the matter is finalised, but must deposit all required amounts.
  • The respondent is ordered to pay the costs of the application.

Source and reliance status

High Courts - Gauteng

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Judgment reading view

Judgment text

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Source document

High Courts - Gauteng

Judgment

[2003] ZAGPHC 12

NOT REPORTABLE

IN THE HIGH COURT OF

SOUTH AFRICA

(WITWATERSRAND LOCAL DIVISION)

JOHANNESBURG

CASE NO:17015/03

DATE:2003-10-09

In the matter between

MARTIN

RODNEY MICHAEL DU PLESSIS …............................................................Applicant

and

ENVER

LIONEL SWARTZ.......................................................................................Respondent

JUDGMENT

WILLIS, J; This is an application in terms of which the applicant seeks an order granting the following relief:-

" 1. Dat die respondent gelas word om onmiddellik betaling te maak aan die applikant van

1.1 R93O0O; en

1.2 R35 000.

2. Dat die respondent gelas word om met ingang 1 Julie 2003 en tot en met die finale vasstelling van die leningsrekening van die applikant in die boeke van die

vennootskap die bedrag van R40 000 per maand te betaal voor/op die derde dag van iedere en elke maand beginnend Julie 2003.

3. Dat die respondent gelas word om na vasstelling van die omvang van die leningsrekening van die applikant in die boeke van die

vennootskap die voile balans aan die applikant te betaal.

4. 4.1 Die respondent binne 10 dae vanaf datum van verlening van 'n bevel hierin volledig rekenskap doen van die boeke van die

vennootskap tot op datum van ontbinding. 4.2 Indien die partye hiertoe nie binne vyf dae nadat die rekeninge gelewer is, die rekening gedebatteer het nie en of daar daarby dispute oorbly nadat debattering van sodanige rekeninge, die applikant geregtig sal wees om hierdie Agbare Hof weer te nader op dieselfde stukke behoorlik aangevul vir 'n bevel tot debattering van die rekeninge en vir

betaiing van sodanige bedrag as wat verskuldig bevind mag word te wees.

5. Die respondent verbied word om enigsins vender en totdat die voormelde afgehandel is, enige onttrekkings uit die besigheidsrekening van die vennootskap (of die ingelyfde maatskappy) met die naam "Swartz Du Plessis" te maak maar om alle deposito's wat daarin gemaak moet word daarin te deponeer.

6. In die alternatief tot smeekbede 4 dat -

7. 'n Likwidateur vir die vennootskap te wete T Van den Heever van Corporate Recovery and Insolvency Deloitte & Touche Trust (Edmsl aangestel word met die volgende magte en bevoegdhede:

7.1 om die vennootskap tussen die applikant en die respondent te likwideer;

7.2 om die vennootskap se bates te realiseer;

7.3 om debiteure van die vennootskap in te vorder;

7.4 om die verpligtinge van die vennootskap af te los;

7.5 om 'n finale rekening tussen die partye voor te berei;

7.6 om die surplus vennootskapsbates gelykop tussen die vennote te verdeel;

7.7 om beheer te neem van al die vennootskapsbates soos wat dit gestaan het op datum van die ontbinding van die vennootskap, insluitende die werfkrag waarde;

7.8 om vennootskapsbates te likwideer op 'n wyse wat in sy uitsluitlike diskresie tot die beste voordeel van die vennote is.

8. Dat die respondent die koste van die aansoek betaal.

9. Verdere of alternatiewe regshulp."

This dispute relates to the dissolution of a partnership between two attorneys. The respondent has no objection to relief being granted in terms of prayers 3 and 4 of the notice of motion. The respondent alleges that he has always been willing to enter into a debate concerning the accounts between the respective parties. I therefore consider it appropriate that the respondent should be held to his word in this regard.

In so far as the allegations of monies due are concerned, the respondent deals with these allegations in an astonishingly evasive manner. There is much huffing and puffing but no dispute actually that the amounts in question are due and payable. There is no allegation that the amounts have been paid nor are there any annexures that would indicate such payments have been made.

Despite Mr Cajee's protestations that there are disputes of fact that require that this matter be referred to trial, alternatively, oral evidence, it seems to me that at the end of the day the respondent's affidavit contains much obfuscation but does not deal with the real issues.

Accordingly, in my view, the applicant is entitled to the relief which he seeks and an order is made in terms of prayers 1, 2, 3, 4, 5 and 8 of the notice of motion dated 27 June 2003.

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Authorities

Authorities used by the court

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Standard Bank of South Africa Ltd v Neugarten 1987 (3) SA 695 (W)

Case cited

Ex parte Lebowa Development Corporation Ltd 1989 (3) SA 71 (T)

Case cited

Partnership Act 1932

Legislation

Legislation referenced in the available case record.

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