Generational Training and Development (PTY) LTD v Mining Qualifications Authority (MQA) (22367/17) [2018] ZAGPPHC 37 (3 September 2018)

Generational Training and Development (PTY) LTD v Mining Qualifications Authority (MQA) (22367/17) [2018] ZAGPPHC 37 (3 September 2018)

The court held that the dispute resolution clause (clause 11) does not survive the cancellation of the contract. Upon termination, only the primary obligations under the contract cease, but secondary obligations, such as arbitration clauses, may survive unless the parties' intention is otherwise. In this case, the court found that the wording and context of the agreement indicated that the dispute resolution mechanism was intended to operate only during the subsistence of the contract. The obligation to continue providing services pending arbitration presupposes an ongoing contractual relationship. The court further relied on authority that where a contract is cancelled by mutual consent,...

Citation
[2018] ZAGPPHC 37
Parties
Applicant: Generational Training and Development (PTY) LTD; Respondent: Mining Qualifications Authority (MQA)
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
3 September 2018
Case Number
22367/17
Procedural Posture
Civil Application / First Instance Judgment
Outcome
Application dismissed with costs.
Judges
PM Mabuse
Legal Topics
Arbitration Clause Survival, Contract Termination, Interpretation of Contract, Repudiation, Cancellation of Contract
Commercial and Corporate Civil Procedure Arbitration Clause Survival Contract Termination Interpretation of Contract Repudiation Cancellation of Contract

Case Brief

Summary, issues, holding and outcome

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Parties

Generational Training and Development (PTY) LTD

Applicant

Mining Qualifications Authority (MQA)

Respondent

Procedural Posture

Civil Application / First Instance Judgment

Legal Issues

  1. 1 Does the dispute resolution clause (clause 11) survive the termination of the contract?
  2. 2 Are the parties bound to the arbitration clause after cancellation or repudiation of the agreement?
  3. 3 Is the applicant entitled to invoke the dispute resolution procedure post-termination?

Ratio Decidendi

The court held that the dispute resolution clause (clause 11) does not survive the cancellation of the contract. Upon termination, only the primary obligations under the contract cease, but secondary obligations, such as arbitration clauses, may survive unless the parties' intention is otherwise. In this case, the court found that the wording and context of the agreement indicated that the dispute resolution mechanism was intended to operate only during the subsistence of the contract. The obligation to continue providing services pending arbitration presupposes an ongoing contractual relationship. The court further relied on authority that where a contract is cancelled by mutual consent,...

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed, with costs.