Elbie Eiendomme CC t/a El Madre Properties v Ryton Estates (Pty) Ltd (51863/08) [2011] ZAGPPHC 58 (15 April 2011)

Elbie Eiendomme CC t/a El Madre Properties v Ryton Estates (Pty) Ltd (51863/08) [2011] ZAGPPHC 58 (15 April 2011)

The court found that the mandate to market and sell the property was confirmed by correspondence and the conduct of the parties, specifically the letters exchanged in February 2007 and the testimony of Mr Watson. The evidence established that the mandate followed Mr Odendaal and was ceded to the plaintiff close corporation. On the issue of effective cause, the court held that the plaintiff's efforts, particularly those of Odendaal and Elliot, were the direct and overriding cause of the sale to the government. The chain of causation was never broken by any new or intervening cause, and the plaintiff's activities were still operative at the time of the sale. The insertion in the deed of...

Citation
[2011] ZAGPPHC 58
Parties
Plaintiff: Elbie Eiendomme CC t/a El Madre Properties; Defendant: Ryton Estates (Pty) Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
15 April 2011
Case Number
51863/08
Procedural Posture
Civil Trial / Judgment After Trial
Outcome
Judgment for the plaintiff.
Judges
N Ranchod
Legal Topics
Estate Agent Commission, Effective Cause of Sale, Mandate, Contractual Liability
Commercial and Corporate Land and Property Estate Agent Commission Effective Cause of Sale Mandate Contractual Liability

Case Brief

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Parties

Elbie Eiendomme CC t/a El Madre Properties

Plaintiff

Ryton Estates (Pty) Ltd

Defendant

Procedural Posture

Civil Trial / Judgment After Trial

Legal Issues

  1. 1 Whether the plaintiff had a valid mandate to market and sell the defendant's property.
  2. 2 Whether the plaintiff was the effective cause of the sale of the property to the government.
  3. 3 Whether the plaintiff is entitled to commission despite the deed of sale stating no commission is payable.

Ratio Decidendi

The court found that the mandate to market and sell the property was confirmed by correspondence and the conduct of the parties, specifically the letters exchanged in February 2007 and the testimony of Mr Watson. The evidence established that the mandate followed Mr Odendaal and was ceded to the plaintiff close corporation. On the issue of effective cause, the court held that the plaintiff's efforts, particularly those of Odendaal and Elliot, were the direct and overriding cause of the sale to the government. The chain of causation was never broken by any new or intervening cause, and the plaintiff's activities were still operative at the time of the sale. The insertion in the deed of...

Court Disposition

Judgment for the plaintiff.

Orders

  • The defendant is ordered to pay the plaintiff the sum of R2,000,000.00 plus VAT.
  • The defendant is ordered to pay interest on the aforesaid amount at 15.5% per annum from 29 May 2008 to date of payment.