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South Africa Ruling

Western Cape High Court, Cape Town

Eybers NO v Beaufort West Minerals (11584/2010) [2011] ZAWCHC 191 (1 April 2011)

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Research organized from the available case record

Source document

01

Holding and result

The court found that the respondent had raised grounds of appeal that, while disputed by the applicant, were not without merit. The authority cited in Honore regarding trustee authorisation was supported by the referenced case, contrary to the respondent's contention. However, the matter involved the interpretation of agreements between the parties and was of significant importance to both sides. Given these factors, the court determined that another court might reach a different conclusion regarding the intention of the contracting parties. Therefore, leave to appeal should be granted to ensure the matter receives further judicial scrutiny.

Court disposition

Leave to appeal granted to the respondent against the whole of the judgment delivered on 24 February 2011.

Orders

  • Leave is granted to respondent to appeal to the Supreme Court of Appeal against the whole of the judgment delivered on 24 February 2011.
  • The costs of the application for leave to appeal are to be costs in the appeal.

02

Material facts

Parties

Leon Roelof Eybers N.O.

Applicant

Beaufort West Minerals

Respondent

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant opposed the granting of leave to appeal, maintaining that the judgment delivered was correct and that the respondent had not demonstrated reasonable prospects of success on appeal. The applicant argued that the interpretation of the agreements and the legal principles applied were sound and supported by authority.
Respondent
The respondent argued that the extract from Honore: South African Law of Trusts, 5th Edition, cited in the original judgment, was not supported by the authority referenced, specifically Ethiopian Church Trustees v Soniica 1926 EDL 107 at 112. The respondent contended that the cited case dealt with joinder, not locus standi, and thus did not support the general statement regarding trustee authorisation. The respondent asserted that there were reasonable prospects of success on appeal and that the matter was of significant importance to both parties.

05

Court’s reasoning

  1. 01

    Erasmus, Superior Court Practice

    To succeed with an application for leave to appeal, the applicant must show reasonable prospects of success on appeal and the importance of the matter to the parties is also relevant.

  2. 02

    Honore: South African Law of Trusts, 5th Edition, page 322-3

    There is no formal requirement for the authorisation of a co-trustee to act on behalf of all other trustees of a trust.

  3. 03

    Ethiopian Church Trustees v Soniica 1926 EDL 107 at 112

    The court in Ethiopian Church Trustees v Soniica 1926 EDL 107 at 112 addresses locus standi in the context of trustees.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the respondent had raised grounds of appeal that, while disputed by the applicant, were not without merit. The authority cited in Honore regarding trustee authorisation was supported by the referenced case, contrary to the respondent's contention. However, the matter involved the interpretation of agreements between the parties and was of significant importance to both sides. Given these factors, the court determined that another court might reach a different conclusion regarding the intention of the contracting parties. Therefore, leave to appeal should be granted to ensure the matter receives further judicial scrutiny.

Obiter and limits

  • The matter is of extreme importance to both parties and deserves the attention of the Supreme Court of Appeal.
  • A reading of Ethiopian Church Trustees v Soniica supports the statement in Honore regarding trustee authorisation.

Court disposition

Leave to appeal granted to the respondent against the whole of the judgment delivered on 24 February 2011.

  • Leave is granted to respondent to appeal to the Supreme Court of Appeal against the whole of the judgment delivered on 24 February 2011.
  • The costs of the application for leave to appeal are to be costs in the appeal.

Source and reliance status

Western Cape High Court, Cape Town

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Judgment reading view

Judgment text

The complete available source text.

Source document

Western Cape High Court, Cape Town

Ruling

[2011] ZAWCHC 191

IN

THE HIGH COURT OF SOUTH AFRICA

(WESTERN CAPE HIGH COURT, CAPE TOWN)

CASE NUMBER: 11584/2010

DATE: 1 APRIL 2011

In the matter between:

LEON ROELOF EYBERS N.O. …...................................................................Applicant

and

BEAUFORT

WEST MINERALS …............................................................Respondent

JUDGMENT

Application for Leave to Appeal

FOURIE. J:

In this matter respondent seeks leave to appeal against the whole of my judgment delivered on 24 February 2011. The application is opposed. It is trite that to succeed with an application of this nature, respondent has to show that it has a reasonable prospect of success on appeal. However, the importance of the matter to the parties also plays a role in

deciding whether to grant or refuse leave to appeal. I have considered the grounds of appeal on which respondent relies, as set out in the application for leave to appeal, as well as the oral submissions made by counsel on behalf of the parties. I wish to make one observation with regard to the submissions made on behalf of respondent. It was contended that the extract from Honor6: South African Law of Trusts, 5lh Edition, page 322-3, referred to in paragraph 5 of my judgment, is not supported by the authority quoted therefor, namely the decision in Ethiopian Church Trustees v Soniica 1926 EDL 107 at 112. It was submitted that at page 112 of this judgment, the court deals with the issue of joinder and not the absence of locus standi, and accordingly it does not serve as support for the general statement in Honors, i.e. that there appears to be no requirement or formality regarding the authorisation of a co­trustee to act on behalf of all the other trustees of a trust. A reading of the judgment, however, shows that at the bottom of page 111 and top of 112, the court did deal with an argument in regard to the absence of locus standi. On my reading thereof, it provides clear support for the aforesaid statement in Honore. Upon reflection I believe that the conclusion reached in my judgment is correct, but as the matter, inter alia, involves the interpretation of agreements

concluded by the parties, it may be that another court may hold a different view with regard to the intention of the contracting parties. I also take into account that this matter is obviously of extreme importance to both parties. In these circumstances I incline to the view that leave to appeal should be granted. I agree with the view expressed by counsel for the parties that this is a matter which deserves the attention of the Supreme Court of Appeal. In the result the following order is made: Leave is granted to respondent to appeal to the Supreme Court of Appeal against the whole of my judgment delivered on 24 February 2011.

The costs of the application for leave to appeal are to be costs in the appeal. FOURIE, J

deciding whether to grant or refuse leave to appeal.

I have considered the grounds of appeal on which respondent relies, as set out in the application for leave to appeal, as well as the oral submissions made by counsel on behalf of the parties. I wish to make one observation with regard to the submissions made on behalf of respondent. It was contended that the extract from Honor6: South African Law of Trusts, 5lh Edition, page 322-3, referred to in paragraph 5 of my judgment, is not supported by the authority quoted therefor, namely the decision in Ethiopian Church Trustees v Soniica 1926 EDL 107 at 112.

It was submitted that at page 112 of this judgment, the court deals with the issue of joinder and not the absence of locus standi, and accordingly it does not serve as support for the general statement in Honors, i.e. that there appears to be no requirement or formality regarding the authorisation of a co­trustee to act on behalf of all the other trustees of a trust. A reading of the judgment, however, shows that at the bottom of page 111 and top of 112, the court did deal with an argument in regard to the absence of locus standi. On my reading thereof, it provides clear support for the aforesaid statement in Honore.

Upon reflection I believe that the conclusion reached in my judgment is correct, but as the matter, inter alia, involves the interpretation of agreements concluded by the parties, it may be that another court may hold a different view with regard to the intention of the contracting parties. I also take into account that this matter is obviously of extreme importance to both parties. In these circumstances I incline to the view that leave to appeal should be granted. I agree with the view expressed by counsel for the parties that this is a matter which deserves the attention of the Supreme Court of Appeal.

In the result the following order is made:

Leave is granted to respondent to appeal to the Supreme Court of Appeal against the whole of my judgment delivered on 24 February 2011.

The costs of the application for leave to appeal are to be costs in the appeal.

FOURIE, J

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Authorities

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Ethiopian Church Trustees v Soniica 1926 EDL 107 at 112

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