Emfuleni Local Municipality v Khulu Media Gateway Vereeniging (Proprietary) Limited (62150/2012) [2013] ZAGPPHC 456 (15 November 2013)

Emfuleni Local Municipality v Khulu Media Gateway Vereeniging (Proprietary) Limited (62150/2012) [2013] ZAGPPHC 456 (15 November 2013)

The court found that the original lease agreement and its addendum between the applicant and respondent expired by effluxion of time on 27 May 2010. The respondent failed to exercise any contractual right to extend the agreement in writing within the stipulated period, and no valid renewal or extension occurred. The argument of tacit relocation was rejected due to lack of evidence of continued payment of rent and the express requirement for written variation in the contract. The respondent's continued occupation and erection of advertising structures were unlawful. The applicant was entitled to a mandamus compelling removal of the structures and accessories, and to recover costs and...

Citation
[2013] ZAGPPHC 456
Parties
Applicant: Emfuleni Local Municipality; Respondent: Khulu Media Gateway Vereeniging (Proprietary) Limited
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
15 November 2013
Case Number
62150/2012
Procedural Posture
Civil Application / Final Judgment
Outcome
Application granted. Mandamus issued compelling respondent to remove advertising structures and accessories, with costs awarded to applicant.
Judges
Jansen
Legal Topics
Lease Agreement Termination, Tacit Relocation, Specific Performance, Contractual Interpretation
Land and Property Commercial and Corporate Lease Agreement Termination Tacit Relocation Specific Performance Contractual Interpretation

Case Brief

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Parties

Emfuleni Local Municipality

Applicant

Khulu Media Gateway Vereeniging (Proprietary) Limited

Respondent

Procedural Posture

Civil Application / Final Judgment

Legal Issues

  1. 1 Whether the lease agreement and addendum between the applicant and respondent were validly extended beyond their original terms.
  2. 2 Whether the respondent was entitled to retain advertising structures on municipal property after the termination of the agreement.
  3. 3 Whether a tacit relocation or renewal of the lease agreement occurred.

Ratio Decidendi

The court found that the original lease agreement and its addendum between the applicant and respondent expired by effluxion of time on 27 May 2010. The respondent failed to exercise any contractual right to extend the agreement in writing within the stipulated period, and no valid renewal or extension occurred. The argument of tacit relocation was rejected due to lack of evidence of continued payment of rent and the express requirement for written variation in the contract. The respondent's continued occupation and erection of advertising structures were unlawful. The applicant was entitled to a mandamus compelling removal of the structures and accessories, and to recover costs and...

Court Disposition

Application granted. Mandamus issued compelling respondent to remove advertising structures and accessories, with costs awarded to applicant.

Orders

  • The respondent is compelled to remove the signs and all accessories thereto and make good any damage to the property caused by the erection and/or removal of the signs referred to in annexure 'A1' within thirty days.
  • The applicant is permitted to appoint a sub-contractor to remove the signs and accessories and repair any damage should the respondent fail to comply.