Hubbard v Cool Ideas 1186 CC (580/12) [2013] ZASCA 71; 2013 (5) SA 112 (SCA); [2013] 3 All SA 387 (SCA) (28 May 2013)

Hubbard v Cool Ideas 1186 CC (580/12) [2013] ZASCA 71; 2013 (5) SA 112 (SCA); [2013] 3 All SA 387 (SCA) (28 May 2013)

The Supreme Court of Appeal held that section 10 of the Housing Consumers Protection Measures Act 95 of 1998 prohibits an unregistered home builder from receiving any consideration for the construction of a home. The prohibition is directed at the person seeking payment, not the validity of the underlying agreement. The subsequent registration of Cool Ideas did not cure the statutory prohibition applicable at the time of construction. The intervention of arbitration does not alter the legal position, as a court cannot make an order that would sanction an illegality. Judicial deference to arbitration awards cannot override clear statutory prohibitions. The appeal was upheld, and the...

Citation
[2013] ZASCA 71
Parties
Appellant: Anne Christine Hubbard; Respondent: Cool Ideas 1186 CC
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
28 May 2013
Case Number
580/12
Procedural Posture
Civil Appeal / Appeal From South Gauteng High Court (johannesburg)
Outcome
Appeal upheld. The order of the court below is set aside and replaced with an order dismissing the application with costs.
Judges
NAVSA, PONNAN, THERON, WILLIS, MBHA
Legal Topics
Housing Consumers Protection Measures Act, Arbitration Award Enforcement, Statutory Prohibition, Registration of Home Builders, Illegality in Contract, Judicial Deference to Arbitration
Commercial and Corporate Civil Procedure Housing Consumers Protection Measures Act Arbitration Award Enforcement Statutory Prohibition Registration of Home Builders Illegality in Contract Judicial Deference to Arbitration

Case Brief

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Parties

Anne Christine Hubbard

Appellant

Cool Ideas 1186 CC

Respondent

Procedural Posture

Civil Appeal / Appeal From South Gauteng High Court (johannesburg)

Legal Issues

  1. 1 Whether an unregistered home builder may enforce payment for construction of a home under section 10 of the Housing Consumers Protection Measures Act 95 of 1998.
  2. 2 Whether an arbitration award in favour of an unregistered home builder can be made an order of court.
  3. 3 Whether the subsequent registration of the home builder cures the statutory prohibition.

Ratio Decidendi

The Supreme Court of Appeal held that section 10 of the Housing Consumers Protection Measures Act 95 of 1998 prohibits an unregistered home builder from receiving any consideration for the construction of a home. The prohibition is directed at the person seeking payment, not the validity of the underlying agreement. The subsequent registration of Cool Ideas did not cure the statutory prohibition applicable at the time of construction. The intervention of arbitration does not alter the legal position, as a court cannot make an order that would sanction an illegality. Judicial deference to arbitration awards cannot override clear statutory prohibitions. The appeal was upheld, and the...

Court Disposition

Appeal upheld. The order of the court below is set aside and replaced with an order dismissing the application with costs.

Orders

  • The appeal is upheld with costs.
  • The order of the court below is set aside.