Inkunzi Civils CC v Greater Kokstad Municipality (11800/07) [2012] ZAKZPHC 54 (28 August 2012)

Inkunzi Civils CC v Greater Kokstad Municipality (11800/07) [2012] ZAKZPHC 54 (28 August 2012)

The court found that the plaintiff performed its obligations under the contract and that the defendant breached the contract by failing to make timeous payments. The plaintiff cancelled the contract and, at the defendant's request, kept its plant and labour on site, incurring standing time costs. The evidence established that the plaintiff used and paid the labour in the course of the contract, and thus suffered the damages for labour standing time. The damages for plant and labour standing time arose directly from the defendant's breach and were within the contemplation of the parties. The quantum of damages was agreed between the parties. The court rejected the defendant's argument that...

Citation
[2012] ZAKZPHC 54
Parties
Plaintiff: Inkunzi Civils CC; Respondent: Greater Kokstad Municipality
Court
Kwazulu-Natal High Court, Pietermaritzburg
Jurisdiction
South Africa
Judgment Date
28 August 2012
Case Number
11800/07
Procedural Posture
Civil Trial / Final Judgment
Outcome
Judgment for the plaintiff. The defendant is ordered to pay the plaintiff the agreed damages for plant and labour standing time, interest, and costs.
Judges
Lopes
Legal Topics
Breach of Contract, Damages for Standing Time, Corporate Veil, Quantum of Damages
Commercial and Corporate Civil Procedure Breach of Contract Damages for Standing Time Corporate Veil Quantum of Damages

Case Brief

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Parties

Inkunzi Civils CC

Plaintiff

Greater Kokstad Municipality

Respondent

Procedural Posture

Civil Trial / Final Judgment

Legal Issues

  1. 1 Whether the plaintiff is entitled to damages for plant and labour standing time following the defendant's breach and cancellation of the contract.
  2. 2 Whether the plaintiff, rather than Bladecon CC, suffered the damages for labour standing time and is entitled to recover them.
  3. 3 Whether the defendant's request to keep the site established after cancellation affects liability for standing time damages.

Ratio Decidendi

The court found that the plaintiff performed its obligations under the contract and that the defendant breached the contract by failing to make timeous payments. The plaintiff cancelled the contract and, at the defendant's request, kept its plant and labour on site, incurring standing time costs. The evidence established that the plaintiff used and paid the labour in the course of the contract, and thus suffered the damages for labour standing time. The damages for plant and labour standing time arose directly from the defendant's breach and were within the contemplation of the parties. The quantum of damages was agreed between the parties. The court rejected the defendant's argument that...

Court Disposition

Judgment for the plaintiff. The defendant is ordered to pay the plaintiff the agreed damages for plant and labour standing time, interest, and costs.

Orders

  • The defendant is to pay the plaintiff the sum of R458 984.
  • Interest on that sum calculated at the rate of 15.5% per annum from 26 April 2007 to date of payment.