Jonroux Builders & Contractors (Edms) Beperk v Pty Props 16 (Edms) Beperk (63394/12) [2012] ZAGPPHC 295 (19 November 2012)

Jonroux Builders & Contractors (Edms) Beperk v Pty Props 16 (Edms) Beperk (63394/12) [2012] ZAGPPHC 295 (19 November 2012)

The court held that the parties were bound by the dispute resolution mechanism in clause 40 of their written agreement, which required disputes to be referred first to adjudication and, if dissatisfied, to arbitration. The plaintiff, after referring the matter to adjudication and noting dissatisfaction, attempted to revert to court proceedings, which was contrary to the contract and the principle of pacta sunt servanda. The adjudicator's decision is binding between the parties until an arbitrator makes a final determination. The court found that the defendant was entitled to raise the special plea and seek a stay of proceedings pending arbitration, even without a formal application for a...

Citation
[2012] ZAGPPHC 295
Parties
Plaintiff: Jonroux Builders & Contractors (Edms) Beperk; Defendant: Pty Props 16 (Edms) Beperk
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
19 November 2012
Case Number
63394/12
Procedural Posture
Civil Trial / Special Plea Argued and Decided; Action Stayed Pending Arbitration
Outcome
Defendant's special plea upheld; action stayed pending finalization of dispute resolution process; plaintiff to bear wasted costs.
Judges
Potterill
Legal Topics
Arbitration Clause, Stay of Proceedings, Pacta Sunt Servanda, Adjudication, Jbcc Contract, Wasted Costs
Commercial and Corporate Civil Procedure Arbitration Clause Stay of Proceedings Pacta Sunt Servanda Adjudication Jbcc Contract Wasted Costs

Case Brief

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Parties

Jonroux Builders & Contractors (Edms) Beperk

Plaintiff

Pty Props 16 (Edms) Beperk

Defendant

Procedural Posture

Civil Trial / Special Plea Argued and Decided; Action Stayed Pending Arbitration

Legal Issues

  1. 1 Whether the plaintiff may proceed with the action in court after referring the dispute to adjudication under the contract.
  2. 2 Whether the defendant's special plea based on the dispute resolution clause should result in a stay or dismissal of the action.
  3. 3 Whether the adjudicator's decision is binding pending arbitration.

Ratio Decidendi

The court held that the parties were bound by the dispute resolution mechanism in clause 40 of their written agreement, which required disputes to be referred first to adjudication and, if dissatisfied, to arbitration. The plaintiff, after referring the matter to adjudication and noting dissatisfaction, attempted to revert to court proceedings, which was contrary to the contract and the principle of pacta sunt servanda. The adjudicator's decision is binding between the parties until an arbitrator makes a final determination. The court found that the defendant was entitled to raise the special plea and seek a stay of proceedings pending arbitration, even without a formal application for a...

Court Disposition

Defendant's special plea upheld; action stayed pending finalization of dispute resolution process; plaintiff to bear wasted costs.

Orders

  • The defendant's special plea is upheld.
  • This action is stayed pending the finalization of the dispute resolution process.