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South Africa Judgment

North Gauteng High Court, Pretoria

Fairleads Electrical CC v Mare (12587/16) [2017] ZAGPPHC 343 (28 March 2017)

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Source document

01

Holding and result

The court found that the defendant's exception was based on an inference that the plaintiff was a home builder, which was disputed by the plaintiff. The pleadings and annexures did not conclusively establish that the plaintiff was a home builder as defined in the Act. The plaintiff's claim was premised on a verbal agreement for finishing work and supply of goods, not home building. The court held that it would be unjust to make a finding against the plaintiff without affording an opportunity to present all relevant facts at trial. Since evidence could be led to support the plaintiff's cause of action, the particulars of claim were not excepiable and the exception was dismissed.

Court disposition

Defendant's exception dismissed; costs awarded to plaintiff.

Orders

  • The defendant's exception is dismissed.
  • The defendant is to pay the plaintiff's costs of this application.

02

Material facts

Parties

Fairleads Electrical CC

Plaintiff

Dietlof Mare

Defendant

Amounts and remedies

  • Maximum Fine for Contravention (section 21(1) of Act 95 of 1998): ZAR 25,000

03

Procedural history

  1. Posture

    Civil Procedure / Exception to Particulars of Claim

04

Questions and positions

Legal issues

Party arguments

Applicant
The defendant argued that the plaintiff was a home builder as defined in section 1 of the Housing Consumers Protection Measures Act 95 of 1998, and that section 10 of the Act prohibits unregistered home builders from receiving consideration for construction work. The defendant contended that the plaintiff failed to allege registration as a home builder and therefore did not disclose a cause of action.
Respondent
The plaintiff argued that the claim is based on a verbal agreement to render finishing work and supply goods, not to build a home. The plaintiff maintained that it was not acting as a home builder and that the annexures and terms of the agreement are disputed, requiring oral evidence to resolve.

05

Court’s reasoning

  1. 01

    Mc Kelven v Cowan NO 1980 (4) SA 525 (2) at 526 D

    An exception will only be upheld if no possible evidence led on the pleadings can disclose a cause of action.

  2. 02

    Gates v Gates 1939 AD 150 at 155

    Charges of criminal or immoral conduct must be proved by clear and convincing evidence.

  3. 03

    National Director of Public Prosecution v Zuma 2009 (2) SA 277 (SCA) at para [26]

    Motion proceedings are for resolving legal issues based on common cause facts; factual disputes require oral evidence unless the respondent's version is clearly untenable.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the defendant's exception was based on an inference that the plaintiff was a home builder, which was disputed by the plaintiff. The pleadings and annexures did not conclusively establish that the plaintiff was a home builder as defined in the Act. The plaintiff's claim was premised on a verbal agreement for finishing work and supply of goods, not home building. The court held that it would be unjust to make a finding against the plaintiff without affording an opportunity to present all relevant facts at trial. Since evidence could be led to support the plaintiff's cause of action, the particulars of claim were not excepiable and the exception was dismissed.

Obiter and limits

  • It is improper to make findings of criminal or regulatory breach on motion without clear and satisfactory evidence.
  • Disputed facts regarding the nature of the agreement and the plaintiff's role require oral evidence and cannot be resolved on exception.

Court disposition

Defendant's exception dismissed; costs awarded to plaintiff.

  • The defendant's exception is dismissed.
  • The defendant is to pay the plaintiff's costs of this application.

Source and reliance status

North Gauteng High Court, Pretoria

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Judgment text

The complete available source text.

Source document

North Gauteng High Court, Pretoria

Judgment

[2017] ZAGPPHC 343

IN

THE HIGH COURT OF SOUTH AFRICA

(GAUTENG DIVISION, PRETORIA)

CASE NO: 12587/16

DATE: 28/3/2017

REPOOTABLE

NO

OF

INTEREST TO OTHER JUDGES NO

In the matter between:-

FAIRLEADS

ELECTRICAL CC

Plaintiff

And

DIETLOF

MARE

Defendant

JUDGMENT

NKOSI

AJ

INTRODUCTION

[1] This is an opposed application in terms of rule 23( 1)[1] of the uniform rules of the court on the basis that the plaintiff's particulars of claim does not disclose a cause of action.

[2] The defendant is the excipient and has the duty to persuade the court that upon every interpretation which the pleading in question, and in particular the document on which it is based, can reasonably bear, no cause of action or defence if

disclosed. [2]

[3] The exception relates to paragraph 6.1 of the particulars of claim which reads as follows:

6.1 "During July 2013 the Defendant specifically requested the plaintiff to render the services and supply the goods as set in the spreadsheet attached hereto marked as annexure "A" (hereafter referred to as "the original work").

[4] It was argued by the defendant that it can be inferred from Annexure A that the plaintiff was in fact a home builder as defined in section 1 of the Housing Consumers Protection measures Act 95 of 1998

[5] The exception raises a defence which is in line with section 10 of the act[3] which provides that :

"10 Registration of home builders:-

1. No person shall-

a. Carry on the business of a home builder, or

b. Receive any consideration in terms of any agreement with a housing consumer in respect of sale or construction of a home,

b. Receive any consideration in terms of any agreement with a housing consumer in respect of sale or construction of a home,

Unless that person is a registered home builder

2. No home builder shall construct a home unless that home builder is a registered home builder.

[6] Section 21 ( 1 ) of the same act provides that

"Any person who

(a) .....

(b) Contravenes a provision of section 10 (1)....., shall be guilty of an offence and liable on conviction to a fine not

exceeding R 25 000, 00 or to imprisonment for a period not exceeding one year, on each charge".

[7] On the other hand, the plaintiff argued that the action against the defendant is based upon a verbal agreement which provides that the plaintiff would render certain services and supply certain goods to the defendant as indicated in annexure A and B. The plaintiff further argued that it was an express term of the agreement that the plaintiff would render FINISHING work to the defendant's house.

ISSUE

[8] Can it be established from the pleadings and the annexure attached to the particulars of claim that the plaintiff was a home builder? If it is so established, the exception would have to be upheld on the basis that the plaintiff failed to allege in the particulars of claim that it was a home builder and was entitled to be paid.

ISSUE

CONSIDERED

[9] This is an application on motion seeking a final resolution to the action. However, it is apparent from the grounds of the exception and the response thereto that there is a dispute between the parties regarding the terms of their verbal agreement.

[10] The defendant seeks to import his own understanding of the terms of the agreement into the pleading; an approach which is vehemently opposed by the plaintiff. Such an approach has far reaching consequences for the plaintiff.

[11] I am called upon by the defendant to make a finding that the plaintiff was acting as a home builder. It would seem the plaintiff did not have home builders certificate required by the Ac t[4] • The effect of the finding sought by the defendant would expose the plaintiff to the provision of section 21 ( 1 ) of the Act. In Gates v Gates[5] the court stated that.

" It is true that in certain cases more especially in those in which charges of criminal or immoral conduct are made, it has repeatedly been said that such charges must be proved by the "clearrest " evidence or "clear" and satisfactory" evidence or "clear and convincing" evidence or some similar phrase"

[12] It will be unjust and improper to make such a finding without affording the plaintiff adequate opportunity to place all the facts before court. At this stage, what is before court is the inference drawn by the defendant from the annexure to the particulars of claim.

[13] In Mc Kelven v Cowan NO [6], the court held that

"If evidence can be led which can disclose a cause of action alleged in a pleading, that particular pleading is not excepiable. Pleading is excepiable only on the basis that no possible evidence Jed on the pleadings can disclose a cause of action

[14] The fact that the plaintiff alleges that it was not building a home for the defendant but was providing finishing work to the defendant is worthy of being considered and such allegation subjected to test during the trial. There are very limited common cause facts from which the court can draw the most reasonable inference. In my view, the inference drawn from the annexure as read with the pleadings cannot be justified as the most reasonable inference.

[15] In National Director of Public Prosecution v Zuma [7] the court held that:

"motion proceedings unless concerned with interim relief, are all about the resolution of legal issues based on common cause facts . Unless the circumstances are special they cannot be used to resolve factual issues because they are not designed to determine probabilities. It is well established under the Plascon -Evans rule that where in motion proceedings disputes of fact arises on the affidavit, final order can be granted only if the facts averred in the applicant's.... affidavits, which have been admitted by the respondent.... together with the facts alleged by the latter ,justify such order . It may be different if the respondent's version consists of bald or uncreditworthy denials, raises fictitious disputes of fact, is culpably implausible, farfetched or so clearly untenable that the court is justified in rejecting them merely on the papers. The court below did not have regard to these propositions and instead decided the case on probabilities without rejecting the NDPP's version".

[16] The plaintiff's cause of action is premised on a verbal agreement concluded between the parties for services rendered and goods

supplied by the plaintiff at the defendant's special request and instance. As it stands, the pleading is not excepiable. The annexure

and their contents remain in dispute. The dispute ought to be subjected to oral evidence.

[17] I therefore make the following order;

(i) The defendant's exception is dismissed.

(ii) The defendant is to pay plaintiff's cost of this application.

______

N.

NKOSI

ACTING JUDGE OF GAUTENG DIVISION, PRETORIA

[1] Rule 23 ( 1) provides "where any pleading is vague and embarrassing or lacks averments which are necessary to sustain an

action or defence, as the case may be, the opposing party may, within the period allowed for filling any subsequent pleading,

deliver an exception there to and may set it down for hearing in terms of paragraph (f) of sub rule (5) of rule (6): ..."

[2] Theunissen v Transvaalse Lewende hawe Koop Bpk 1988 (2) SA 493 (A) at 500 E - F

[3] Housing Consumer Protection Measures Act 95 of 1998

[4] Act 95 of 1998

[5] Gates v Gates 1939 AD 150 at 155

[6] Mc Kelven v Cowan No 1980 (4) SA 525 (2) at 526 D

[7] National Director of Public Procecution v Zuma 2009 (2) SA 277 (SCA) at para [26]

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Theunissen v Transvaalse Lewende hawe Koop Bpk 1988 (2) SA 493 (A) at 500 E - F

Case cited

Gates v Gates 1939 AD 150 at 155

Case cited

Mc Kelven v Cowan NO 1980 (4) SA 525 (2) at 526 D

Case cited

National Director of Public Prosecution v Zuma 2009 (2) SA 277 (SCA) at para [26]

Case cited

Housing Consumers Protection Measures Act 95 of 1998

Legislation

Legislation referenced in the available case record.

Uniform Rules of Court, Rule 23(1)

Legislation

Legislation referenced in the available case record.

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