F v F (12469/2016) [2017] ZAGPJHC 129 (10 May 2017)

F v F (12469/2016) [2017] ZAGPJHC 129 (10 May 2017)

The court held that the relevant clauses of the settlement agreement constituted a stipulatio alteri for the benefit of the trustees. Upon acceptance of the benefit, the trustees became parties to the contract and subject to its terms. If the stipulator (Mr F.) was induced to enter into the agreement by material misrepresentation by Ms F., he is entitled to rescind the agreement, which extinguishes the benefit conferred on the trustees. The obligation to restore what was received under the benefit arises upon rescission. The particulars of claim, although not perfectly framed, are sufficient to disclose a cause of action for restitution against the trustees under the doctrine of...

Citation
[2017] ZAGPJHC 129
Parties
Plaintiff: D F; Defendant: L F; Defendant: L F N.O.; Defendant: iProtect Trustees (Pty) Limited N.O.
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
10 May 2017
Case Number
12469/2016
Procedural Posture
Exception Application / Exception to Particulars of Claim
Outcome
Exception dismissed; plaintiff's particulars of claim are not excipiable in respect of the trustees.
Judges
F G Barrie
Legal Topics
Stipulatio Alteri, Misrepresentation, Rescission of Contract, Parental Responsibilities, Trust Law, Restitution
Civil Procedure Family and Children Commercial and Corporate Stipulatio Alteri Misrepresentation Rescission of Contract Parental Responsibilities Trust Law +1 more

Case Brief

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Parties

D F

Plaintiff

L F

Defendant

L F N.O.

Defendant

iProtect Trustees (Pty) Limited N.O.

Defendant

Procedural Posture

Exception Application / Exception to Particulars of Claim

Legal Issues

  1. 1 Whether the plaintiff's particulars of claim disclose a cause of action against the trustees for repayment of R3.5 million under a stipulatio alteri.
  2. 2 Whether misrepresentations by the first defendant can be attributed to the trustees for purposes of rescission and restitution.
  3. 3 Whether the trust, not being a party to the original settlement agreement, can be liable for restitution upon rescission for misrepresentation.

Ratio Decidendi

The court held that the relevant clauses of the settlement agreement constituted a stipulatio alteri for the benefit of the trustees. Upon acceptance of the benefit, the trustees became parties to the contract and subject to its terms. If the stipulator (Mr F.) was induced to enter into the agreement by material misrepresentation by Ms F., he is entitled to rescind the agreement, which extinguishes the benefit conferred on the trustees. The obligation to restore what was received under the benefit arises upon rescission. The particulars of claim, although not perfectly framed, are sufficient to disclose a cause of action for restitution against the trustees under the doctrine of...

Court Disposition

Exception dismissed; plaintiff's particulars of claim are not excipiable in respect of the trustees.

Orders

  • The exception against the plaintiff's particulars of claim is dismissed.
  • The first defendant is to pay the plaintiff's costs of the exception.