Harris and Another v Burger N.O. and Another (786/2017) [2017] ZAFSHC 68 (18 May 2017)
- Citation
- [2017] ZAFSHC 68
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Free State High Court, Bloemfontein
- Panel
- Rampai
- Case number
- 786/2017
More details
- Court
- Free State High Court, Bloemfontein
- Panel
- Rampai
- Case number
- 786/2017
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the first respondent, as sole trustee and beneficiary of the Blue Ginger Trust, lacked the legal capacity to validly conclude the property agreements in question. His dual role contravened the trust deed and rendered the transactions null and void. The respondent's conduct in failing to file an answering affidavit and requesting a last-minute postponement was not bona fide and amounted to an abuse of process. The court refused the postponement, nullified the agreements, and ordered restoration of performances by a specified date, with costs awarded against the respondent.
Court disposition
Application granted; agreements nullified; restoration ordered; costs awarded against respondent.
Orders
- The Lauw Wepener and Groenvlei agreements concluded by the parties on 9 December 2014 are declared null and void.
- The effective date for restoration of performances is Friday, 30 June 2017.
- The respondent is ordered to pay the costs of the application.
02
Material facts
Parties
Rudolf Johannes Harris
Applicant Counsel: Adv GrewarRachel Sophia Elizabeth Harris
Applicant Counsel: Adv GrewarZander Chris Burger N.O.
Respondent Counsel: Adv OlivierThe Master of the High Court
Respondent03
Procedural history
Posture
Civil Application / Motion Proceedings; Unopposed Roll
04
Questions and positions
Legal issues
- 01
Whether the agreements concluded on 9 December 2014 between the parties are null and void due to the incapacity of the trustee.
- 02
Whether the parties should be ordered to restore performances under the nullified agreements.
- 03
Whether the respondent's request for postponement should be granted.
Party arguments
- Applicant
- The applicants argued that the agreements for the sale and exchange of properties were void because the first respondent, acting as trustee of the Blue Ginger Trust, was also a beneficiary at the time of contracting, which rendered him legally incompetent to bind the trust. They contended that the respondent had delayed proceedings and failed to file an answering affidavit, causing frustration and prejudice to the applicants.
- Respondent
- The first respondent, through his counsel, requested a postponement, arguing that denying the postponement would effectively deny him access to justice. He claimed the need for an opportunity to be heard, but failed to provide substantive opposition or file the required answering affidavit within the prescribed timeframes.
05
Court’s reasoning
Legal principles
- 01
Blue Ginger Trust IT 276/2009 trust deed
A trustee who is also a beneficiary may not act in a manner that creates a conflict of interest or binds the trust contrary to its deed.
- 02
Uniform Rules of Court
Failure to comply with procedural rules and timeframes may result in the refusal of postponement and adverse costs orders.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the first respondent, as sole trustee and beneficiary of the Blue Ginger Trust, lacked the legal capacity to validly conclude the property agreements in question. His dual role contravened the trust deed and rendered the transactions null and void. The respondent's conduct in failing to file an answering affidavit and requesting a last-minute postponement was not bona fide and amounted to an abuse of process. The court refused the postponement, nullified the agreements, and ordered restoration of performances by a specified date, with costs awarded against the respondent.
Obiter and limits
- Litigants who disregard procedural rules and delay proceedings undermine the efficiency of the civil dispute resolution system.
- The court may vary its own order mero motu to correct an inadvertent omission regarding the date for restoration of performances.
Court disposition
Application granted; agreements nullified; restoration ordered; costs awarded against respondent.
- The Lauw Wepener and Groenvlei agreements concluded by the parties on 9 December 2014 are declared null and void.
- The effective date for restoration of performances is Friday, 30 June 2017.
- The respondent is ordered to pay the costs of the application.
Source and reliance status
Free State High Court, Bloemfontein
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Free State High Court, Bloemfontein
Judgment
SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document in compliance with the law and SAFLII Policy
IN THE HIGH COURT OF SOUTH AFRICA,
FREE STATE DIVISION, BLOEMFONTEIN
Case number: 786/2017
In the matter between:
RUDOLF
JOHANNES HARRIS 1st Applicant
[Identity number: [5...]]
RACHEL SOPHIA ELIZABETH HARRIS 2nd Applicant
[Identity number: [5...])
and
ZANDER CHRIS BURGER N.O 1st Defendant
[BLUE GINGER TRUST - IT 276/2009]
THE MASTER OF THE HIGH COURT 2nd Defendant
HEARD ON: 11 MAY 2017
JUDGMENT BY: RAMPAI, J
REASONS GIVEN: 18 MAY 2017
[1] The matter came to court by way of motion proceedings. The applicant sought an order whereby the two agreements concluded by the parties were declared null and void. The alternative relief sought was cancellation of those agreements. The application was, in a sense, unopposed - hence it was on the unopposed roll of the general motion court.
[2] The applicants sold their residential property to the first respondent who in turn sold his to the applicants. The exchange sales were concluded prior to the institution of the current restorative application on 15 February 2017.
[3] The file history of the matter shows:
3.1 that the application was issued on 15 February 2017;
3.2 that it was served on the first respondent on or before 2 March 2017;
3.3 that the first respondent served and filed notice of his intention to oppose the application on 2 March 2017;
3.4 that the applicants enrolled the matter on 23 April 2017 for hearing on 11 May 2017;
3.5 that the second respondent's report pertaining to Blue Ginger Trust IT 276/2009 was filed on 5 May 2017;
3.6 that the first respondent's attorney asked for a postponement on 10 May 2017 and
3.7 that the matter was duly listed on the unopposed roll of the general motion court of 11 May 2017 as item number 42.
[4] Before me on Thursday 11 May 2017 appeared Mr Grewar for the applicants and Mr Olivier for the first respondent. The two legal
representatives could not agree on any of the proposals contained in the first respondents' letter dated 10 May 2017.
[5] Mr Olivier urged me to give the first respondent an opportunity to be heard. He argued that unless the matter was postponed as the first respondent requested, the first respondent would be effectively denied access to justice. Mr Grewar argued that the first respondent had been dragging his feet for far too long and that the applicants were very frustrated.
[6] In the founding affidavit, Mr Rudolf Johannes Harris, the co-seller of the Lauw Wepener property, "anx hh7", and the
simultaneous co-purchaser of the Groenvlei property, "anx hh8", averred:
"8.6 Burger het op die 9 Desember 2014 twee koopkontrakte getekent in sy hoedanigheid as trustee, ten opsigte van Louw Wepener en Groenvlei, terwyl die trustakte op daardie stadium bepaal het dag hy nie gelyktydig as 'n trustee en begunstigde kan handel nie. (my emphasis)
8.7 'n Afskrif van die ooreenkoms van Louw Wepener word hierby aangeheg gemerk aanhangsel "HH7".
8.8 'n Afskrif van die ooreenkoms van Groenvlei word hierby aangeheg gemerk aanhangsel "HHS".
8.9 Burger was op daardie datum beide die alleen-trustee en 'n begunstigde van die trust en bygevolg is die transaksie nietig weens sy onbevoegdheid om te handel en die trust te bind.It
[7]
•
On the strength of those material averments, it appeared to me that the first respondent was not legally compent to alienate the
trust property known as Groenvlei seeing that he was both the trustee and beneficiary of the Blue Ginger Trust - vide "anx hh211 read with "anx hh311 to "anx hh6.
[8] The first respondent signalled his intention to oppose the application some 69 calender days before the date on which the matter
was heard. The applicants then waited and waited for the first respondent's answering affidavit. They waited in vain. On 23 April
2017, some 52 calender days after the filing of the first respondent's notice, the applicants served a notice of setdown. Again
there was no reaction from him. Hardly a day before the hearing the first respondent wrote to ask for a postponement.
[9] In my view the request for a postponement was not made in good faith. It was yet another ploy to delay the matter. All these indicated to me that the first respondent had no seriously genuine intention to oppose the application. He displayed complete disregard for the rules of procedure. This sort of a litigant's remissness undermines the norms and standards designed to enhance the efficiency of the civil dispute resolution by way of public adjudicative system.
[10] These then are the reasons for the order I made. I suppose they explain the order well. In view of the aforesaid considerations, I refused to have the application postponed. The first respondent did not act like a serious litigant with a bona fide defence. He only has himself to blame for the refusal. The refusal is the harvest of his neglect.
[11] I note that the second leg of the order does not accurately reflect my intention. I probably not pronounce the date on which the parties have to restore performances. The omission was an inadvertent oversight. I had a specific date scribbled in my bench book. In determining an appropriate date, I took into account the reasonable possibility that the applicants' residential property, Lauw Wepener, might currently be still occupied by innocent and lawful occupiers. I would, therefore, revisit the previous order by inserting a date in paragraph 2 thereof.
[12] In the circumstances, I hereby vary the previous order mero motu
to read as follows:
12.1 The Lauw Wepener and Groenvlei agreements concluded by the parties in Bloemfontein on the 9 December 2014 are hereby nullified.
12.2 The effective date of restoration shall be Friday 30 June 2017.
12.3 The respondent pays the costs of the application.
______
MH RAMPAI, J
On behalf of applicants: Adv Grewar
Instructed by:
Adrie Hechter Attorneys
Bloemfontein
On behalf of respondents: Adv Olivier
Instructed by:
Symington & De Kok
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