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South Africa Judgment

Free State High Court, Bloemfontein

Ex parte: Schreuder (2837/2009) [2009] ZAFSHC 118 (12 November 2009)

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Source document

01

Holding and result

The court held that the expert minute did not bind the parties, as the defendant had not ratified or approved its contents and had objected immediately after its creation. The function of experts is to provide opinions, not to determine facts or bind parties to agreements outside the pleadings. The arbitrator is not bound by the expert opinions and may consider further evidence, including that of additional experts. The issues in dispute are determined by the pleadings and admissions made by legal representatives, not by the concessions of expert witnesses. Accordingly, the legal questions were decided in favour of the defendant, who is entitled to call further expert witnesses.

Court disposition

Legal questions decided in favour of the defendant; defendant not bound by the expert agreement and may call further expert witnesses.

Orders

  • The legal question is decided in favour of the defendant to the effect that the defendant is not bound by the agreement of the experts and is entitled to call further expert witnesses.
  • The costs of the application shall be costs in the cause.

02

Material facts

Parties

H A L Schreuder N.O.

Applicant Counsel: R. Cronje

Masterplan Bethlehem BK

Plaintiff Counsel: P.J.T. de Wet

Residentia Stigting

Defendant Counsel: J.J. Roestorf

03

Procedural history

  1. Posture

    Special Case Stated / Determination of Legal Questions Referred by Arbitrator Under Section 20 of Arbitration Act 42 of 1965

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant, acting as arbitrator, contends that the defendant is bound by the contents of the expert minute and is not entitled to present contradictory evidence. Reliance is placed on authority stating that parties are bound by agreements reached to limit issues in litigation, unless special circumstances exist to release them from such agreements.
Respondent
The respondent argues that it did not ratify or approve the expert agreement and objected to its contents immediately after its creation. The respondent maintains that it is not bound by the expert minute and is entitled to call further expert witnesses, as the agreement was neither finalized nor accepted by both parties.

05

Court’s reasoning

  1. 01

    F & I Advisors (Edms) Bpk en 'n Ander v Eerste Nasionale Bank van Suidelike Afrika Bpk [1998] ZASCA 65; 1999 (1) SA 515 (SCA) at 524 F–G

    A party is generally bound by an agreement reached to limit issues in litigation, unless special circumstances justify release from such agreement.

  2. 02

    Hall v Multilateral Motor Vehicle Accidents Fund 1998 (4) SA 195 (K) at 200 A–B

    The purpose of Rule 36(9)(a) is to enable experts to exchange views before testifying, with a view to reaching agreement on some issues, thereby saving costs and court time.

  3. 03

    Superior Court Practice by H J Erasmus et al., B1-274

    The pre-trial conference is intended to facilitate cooperation and limit or prevent avoidable effort and costs; parties should not resile from agreements reached at such conferences without special circumstances.

  4. 04

    Michael and Another v Linksfield Park Clinic (Pty) Ltd and Another 2001 (3) SA 1188 (SCA) at 1200–1201; KPMG Chartered Accountants (SA) v Securefin Ltd and Another 2009 (4) SA 399 (SCA) at 410

    A presiding officer is not bound by the expert opinion of a witness; it is the function of the presiding officer to make findings based on all evidence.

  5. 05

    Superior Court Practice by H J Erasmus et al., B1-274

    The issues in dispute are created by the pleadings and admissions made by legal representatives, not by witnesses.

06

Ratio, limits and disposition

Ratio decidendi

The court held that the expert minute did not bind the parties, as the defendant had not ratified or approved its contents and had objected immediately after its creation. The function of experts is to provide opinions, not to determine facts or bind parties to agreements outside the pleadings. The arbitrator is not bound by the expert opinions and may consider further evidence, including that of additional experts. The issues in dispute are determined by the pleadings and admissions made by legal representatives, not by the concessions of expert witnesses. Accordingly, the legal questions were decided in favour of the defendant, who is entitled to call further expert witnesses.

Obiter and limits

  • The court emphasized that the purpose of pre-trial agreements and expert meetings is to facilitate litigation and save costs, but such agreements do not override the need for proper ratification and acceptance by both parties.
  • Expert opinions are part of the evidentiary material and may be challenged or supplemented by further expert evidence, subject to the discretion of the presiding officer.

Court disposition

Legal questions decided in favour of the defendant; defendant not bound by the expert agreement and may call further expert witnesses.

  • The legal question is decided in favour of the defendant to the effect that the defendant is not bound by the agreement of the experts and is entitled to call further expert witnesses.
  • The costs of the application shall be costs in the cause.

Source and reliance status

Free State High Court, Bloemfontein

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Judgment reading view

Judgment text

The complete available source text.

Source document

Free State High Court, Bloemfontein

Judgment

[2009] ZAFSHC 118

VRYSTAATSE HOË HOF, BLOEMFONTEIN

REPUBLIEK VAN SUID-AFRIKA

Saak Nr. : 2837/2009

In die saak tussen:-

H A L SCHREUDER N.O. Applikant

In sy hoedanigheid as Arbiter in die Arbitrasie van MASTERPLAN BETHLEHEM BK (Eiser) vs RESIDENTIA STIGTING (Verweerder) in terme van a.20 van Wet 42 van 1965

_____________

UITSPRAAK DEUR: HANCKE,

R

AANGEHOOR OP: 5 NOVEMBER 2009

GELEWER OP: 12 NOVEMBER 2009

[1] Die applikant in hierdie aansoek is die arbiter in deelsverhoorde arbitrasie-verrigtinge tussen Masterplan Bethlehem BK, as eiser, en Residentia Stigting, as verweerder. Applikant doen aansoek om, ingevolge artikel 20 van die Arbitrasiewet 42 van 1965,

by wyse van ‘n spesiale saak sekere regsvrae vir beantwoording aan hierdie Hof voor te lê.

[2] Alhoewel meerdere vrae geopper word, kan dit samevattend gereduseer word na die volgende twee vrae, naamlik:

2.1 is die partye gebonde aan die “ooreenkoms” tussen die deskundiges en mag hulle gevolglik nie die getuienis tot die teendeel aanvaar nie; en

2.2 is die verweerder verbied om verdere deskundiges te roep in die lig van die inhoud van die voorverhoor-notule.

[3] Die huidige regsvrae het sy oorsprong in die notule van die voorverhoor-samesprekings wat gehou is tussen die partye op 10 Desember 2007 waar daar in paragraaf 8 die volgende genotuleer word:

“Die partye sal verder poog om so spoedig doenlik na 9 Januarie 2008 ‘n samekoms van die deskundiges te reël ten einde te poog om geskilpunte in te perk.”

[4] Op daardie stadium sou die verhoor ‘n aanvang neem op 21 Januarie 2008 in die Hooggeregshof te Bloemfontein, maar het die partye omstreeks 17 Januarie 2008 skriftelik ooreengekom om die aangeleentheid vir arbitrasie te verwys.

[5] Eiser het deskundige kennisgewings afgelewer ten opsigte van mnr. Ras, ‘n professionele argitek, mnr. Coetzee, ‘n bourekenaar en mnr. Steyn, ‘n siviele ingenieur. Verweerder het deskundige kennisgewings afgelewer van dieselfde mnr. Coetzee asook mnr. Van Dyk, ‘n bourekenaar.

[6] Op 9 Januarie 2008 het die partye dan ook gereël dat die deskundiges ‘n samespreking bywoon en dat hulle tydens hierdie samespreking moet poog om ooreenstemming te bereik ten einde koste en tyd te bespaar. Geskilpunte is dan ook geformuleer vir oorweging, waarop die deskundiges se antwoorde vervat is in ‘n dokument gedateer 22 Januarie 2008 en onderteken deur die deskundiges hierbo na verwys.

[7] Daar is geen aanduiding dat die notule van die reël 37 samespreking aangevul is waaruit dit sou blyk dat beide partye tevrede was met die korrektheid van die inhoud nie. Inteendeel het mnr. Roestorf, advokaat namens die verweerder, te kenne gegee dat hy

namens sy kliënt alreeds die volgende dag, naamlik op 23 Januarie 2008, beswaar daarteen gemaak het. Dit word bevestig uit

die rekord van verrigtinge waarvan uittreksels aan my beskikbaar gestel is.

[8] Dit blyk ook dat die verweerder volhard met die posisie dat die eiser sekere betalings aan die boukontrakteur oorgesertifiseer het en het verweerder ook deskundige kennisgewing afgelewer van twee nuwe deskundiges, naamlik mnr. Schribanti (‘n bestuurslid van die verweerder) en me Eckley, ‘n bourekenaar in diens van Schribanti.

[9] Mnr. De Wet, namens die eiser, betoog egter dat die verweerder gebonde is aan die inhoud van die deskundige getuies se notule en dat verweerder nie geregtig is om teenstrydige getuienis daarmee aan te bied nie. In hierdie verband het hy gesteun op die volgende aanhaling uit F & I ADVISORS (EDMS) BPK EN 'N ANDER v EERSTE NASIONALE BANK VAN SUIDELIKE AFRIKA BPK [1998] ZASCA 65; 1999 (1) SA 515 (HHA) waar Harms A R op 524 F – G die volgende verklaar:

“'n Party is gebonde aan 'n ooreenkoms gesluit ter beperking van geskilpunte in 'n geding. met enige skikking ondervang dit die onderliggende dispute, ook dié wat op die geldigheid van 'n skuldoorsaak betrekking het. Daar mag omstandighede wees waar 'n hof 'n party nie aan so 'n ooreenkoms gebonde sal hou nie, maar in die onderhawige geval is geen faktore aan ons voorgehou waarom die appellante van hulle ooreenkoms verlos moet word nie.”

[10] Die doel van Hofreël 36(9)(a) is:

“... to enable the experts to exchange views before testifying with a view to reaching agreement on some issues, thereby saving costs and the time of the court.”1

Hierteenoor is die oogmerk van Hofreël 37 onder andere:

“... om die effektiewe afhandeling van die litigasie te bevorder.”2

Die bedoeling van Hofreël 37(6) is

“investigating ways of avoiding costs at a stage when it can still be avoided”.3

[11] In Superior Court Practice deur H J Erasmus, et aliae, word die volgende op B1-274 verklaar:

“The pre-trial conference in terms of the rule is not meant to be a full preparation for trial; it is a stocktaking of possible co-operation

in steps which will limit or prevent avoidable effort and costs. To allow a party, without special circumstances, to resile from an agreement deliberately reached at the pre-trial conference would, therefore, tend to negate the object of the rule which is to limit issues and to curtail the scope of the litigation.”

[12] In die huidige saak het die deskundiges inderdaad bymekaargekom in ‘n poging om ‘n ooreenkoms te bereik met betrekking tot sekere geskilpunte. ‘n Dokument wat aangeheg is as aanhangsel “B” bevat dan sekere geskilpunte ten opsigte waarvan verskeie vrae gestel is. Een van die vrae vervat in paragraaf 3.4 daarvan is die volgende:

“Wat beloop die verskil tussen die oorspronklike kontrakteur se koste en die koste om die werk te voltooi waarvoor eiser na bewering

teenoor verweerder aanspreeklik is, indien enige?”

Die antwoord in aanhangsel “C” is die volgende:

“Ons is van mening dat die kontrakbeëindiging van die oorspronklike kontrak teweeggebring is deur die bouheer vanweë die

nie-betaling van sert 9 en 10.

Die aanstelling van ‘n tweede kontrakteur om die werk te voltooi teen ‘n verhoogde prys is nie deur die eiser teweeggebring nie en is hy nie verantwoordelik vir enige koste nie.”

[13] Die vraag ontstaan nou of die partye en uiteindelik die arbiter gebonde is aan hierdie antwoord. Die algemene beginsel is dat ‘n voorsittende beampte nie gebonde is aan die deskundige opinie van ‘n deskundige nie, aangesien dit die funksie van die

voorsittende beampte is om ‘n bevinding te maak.4

[14] Die betrokke antwoord hierbo na verwys het betrekking oor wie kontrakbreuk gepleeg het. Die funksie van ‘n deskundige lê op die vlak van sy deskundigheid en is hy of sy nie daar om die funksie van die arbiter oor te neem nie. In soverre toegewings gemaak is deur deskundige getuies van die partye, kan sodanige party nie tot so ‘n mate daaraan gebonde gehou word dat die party nie weerleggende of teenstrydige getuienis mag aanbied nie. Die inhoud van sodanige notule is getuienis en vorm deel van die bewysmateriaal wat deur die arbiter in ag geneem moet word. Dit is soortgelyk aan ‘n deskundige getuie wat byvoorbeeld in kruisverhoor sekere toegewings maak tot nadeel van die party wat hom geroep het – die betrokke party is nie gebonde aan daardie toegewings tot die mate dat hy nie ander deskundiges kan roep wat ‘n ander mening huldig nie, alhoewel die bewyswaarde van hierdie toegewing negatief is vir sy saak en in sekere omstandighede selfs fataal kan wees. Die geskilpunte word deur die pleitstukke geskep en erkennings word in die pleitstukke deur regsverteenwoordigers gemaak, nie deur die getuies nie.

[15] Deskundiges is nie daar om feite te bepaal nie, maar om hulle opinies te gee oor bepaalde feite. Geen hof is gebonde aan hierdie opinies nie en is dit ook nie bindend op ‘n party soos hierbo aangetoon nie. Verder blyk dit ook dat die verweerder nié

hierdie ooreenkoms geratifiseer of goedgekeur het nie en is hy dus om hierdie rede ook nie daaraan gebonde nie. In elk geval bestaan daar omstandighede om die verweerder nie aan die ooreenkoms gebonde te hou nie.5

[16] Dit volg dus uit die voorgaande dat die regsvrae in die guns van die verweerder beslis moet word. Ten opsigte van koste was die partye dit ad idem dat koste koste in die geding behoort te wees.

[17] Bygevolg word die volgende bevele verleen:

1. Die regsvraag word in die guns van die verweerder beslis tot die effek dat hy nie gebonde is aan die ooreenkoms van die deskundiges nie, met die gevolg dat hy geregtig is om verdere deskundige getuies te roep.

2. Die koste van die aansoek sal koste in die geding wees.

____

S.P.B. HANCKE, R

Namens die applikant: Adv. R. Cronje

In opdrag van:

Rosendorff Reitz Barry

BLOEMFONTEIN

Namens die eisers: Adv. P.J.T. de Wet

In opdrag van:

Symington & De Kok

Namens die verweerders: Adv. J.J. Roestorf

Claude Reid Prokureurs

/sp

1

HALL v MULTILATERAL MOTOR VEHICLE ACCIDENTS FUND 1998 (4) SA 195 (K) te 200 A – B.

2 Hofreël 37(9)(a)(ii). Sien ook: PRICE NO v ALLIED-JBS BUILDING SOCIETY 1980 (3) SA 874 (A) te 882 E – F.

3 Per Flemming D J P in LEKOTA v EDITOR, 'TRIBUTE' MAGAZINE, AND ANOTHER 1995 (2) SA 706 (W) te 708 F – G.

3

Per Flemming D J P in LEKOTA v EDITOR, 'TRIBUTE' MAGAZINE, AND ANOTHER 1995 (2) SA 706 (W) te 708 F – G.

4

MICHAEL AND ANOTHER v LINKSFIELD PARK CLINIC (PTY) LTD AND ANOTHER 2001 (3) SA 1188 (HHA) te p. 1200 par.[34] – 1201 par. [40]; KPMG CHARTERED ACCOUNTANTS (SA) v SECUREFIN LTD AND ANOTHER 2009 (4) SA 399 (HHA) te p. 410 par. [40] – [41].

5 F & I ADVISORS (EDMS) BPK EN 'N ANDER v EERSTE NASIONALE BANK VAN SUIDELIKE AFRIKA BPK, supra, te 524 F – G.

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

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

F & I Advisors (Edms) Bpk en 'n Ander v Eerste Nasionale Bank van Suidelike Afrika Bpk [1998] ZASCA 65; 1999 (1) SA 515 (SCA)

Case cited

Hall v Multilateral Motor Vehicle Accidents Fund 1998 (4) SA 195 (K)

Case cited

Price NO v Allied-JBS Building Society 1980 (3) SA 874 (A)

Case cited

Lekota v Editor, 'Tribute' Magazine, and Another 1995 (2) SA 706 (W)

Case cited

Michael and Another v Linksfield Park Clinic (Pty) Ltd and Another 2001 (3) SA 1188 (SCA)

Case cited

KPMG Chartered Accountants (SA) v Securefin Ltd and Another 2009 (4) SA 399 (SCA)

Case cited

Arbitration Act 42 of 1965

Legislation

Legislation referenced in the available case record.

Uniform Rules of Court Rule 36(9)(a)

Legislation

Legislation referenced in the available case record.

Uniform Rules of Court Rule 37

Legislation

Legislation referenced in the available case record.

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