Harris v MD Solar (Pty) Ltd t/a Suntank and Others (JS 710/2007) [2016] ZALCJHB 348 (8 September 2016)

Harris v MD Solar (Pty) Ltd t/a Suntank and Others (JS 710/2007) [2016] ZALCJHB 348 (8 September 2016)

The court found that the Applicant failed to provide sufficient evidence to justify piercing the corporate veil. The information relied upon, such as Linked-In profiles and website details, did not establish fraud, dishonesty, or improper conduct. The CIPC report confirmed that Hurwitz and Gur-Arie were never directors of Suntank (Pty) Ltd, and there was no commercial nexus between them and the Third Respondent. Applying the Plascon Evans rule, the court accepted the Respondents' version in the absence of a replying affidavit. Furthermore, the application for joinder was unsustainable in law, as joinder is only permissible in live proceedings, and the Applicant sought joinder after final...

Citation
[2016] ZALCJHB 348
Parties
Applicant: Beverley Dianne Harris; Respondent: MD Solar (Pty) Ltd t/a Suntank; Respondent: SWH Engineering (Pty) Ltd; Respondent: Suntank (Pty) Ltd; Respondent: Neriel Hurwitz; Respondent: Yehoram Gur-Arie
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
8 September 2016
Case Number
JS 710/2007
Procedural Posture
Joinder Application / Application for Joinder and Piercing the Corporate Veil After Final Judgment
Outcome
Application for joinder dismissed; no order as to costs.
Judges
Prinsloo
Legal Topics
Joinder of Parties, Piercing Corporate Veil, Unfair Dismissal, Enforcement of Judgments
Labour Law Civil Procedure Joinder of Parties Piercing Corporate Veil Unfair Dismissal Enforcement of Judgments

Case Brief

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Parties

Beverley Dianne Harris

Applicant

MD Solar (Pty) Ltd t/a Suntank

Respondent

SWH Engineering (Pty) Ltd

Respondent

Suntank (Pty) Ltd

Respondent

Neriel Hurwitz

Respondent

Yehoram Gur-Arie

Respondent

Procedural Posture

Joinder Application / Application for Joinder and Piercing the Corporate Veil After Final Judgment

Legal Issues

  1. 1 Whether the Applicant has established grounds for piercing the corporate veil to hold the Third, Fourth and Fifth Respondents liable for the judgment debt.
  2. 2 Whether joinder of the Third, Fourth and Fifth Respondents is permissible after final judgment has been handed down.
  3. 3 Whether the evidence supports a finding of fraud, dishonesty or improper conduct justifying disregard of separate corporate personality.

Ratio Decidendi

The court found that the Applicant failed to provide sufficient evidence to justify piercing the corporate veil. The information relied upon, such as Linked-In profiles and website details, did not establish fraud, dishonesty, or improper conduct. The CIPC report confirmed that Hurwitz and Gur-Arie were never directors of Suntank (Pty) Ltd, and there was no commercial nexus between them and the Third Respondent. Applying the Plascon Evans rule, the court accepted the Respondents' version in the absence of a replying affidavit. Furthermore, the application for joinder was unsustainable in law, as joinder is only permissible in live proceedings, and the Applicant sought joinder after final...

Court Disposition

Application for joinder dismissed; no order as to costs.

Orders

  • The application for joinder is dismissed.
  • There is no order as to costs.