Joob Joob Invetments (Pty) Ltd v Stocks Mavundla Zek Joint Venture (161/08) [2009] ZASCA 23; 2009 (5) SA 1 (SCA) ; [2009] 3 All SA 407 (SCA) (27 March 2009)

Joob Joob Invetments (Pty) Ltd v Stocks Mavundla Zek Joint Venture (161/08) [2009] ZASCA 23; 2009 (5) SA 1 (SCA) ; [2009] 3 All SA 407 (SCA) (27 March 2009)

The Supreme Court of Appeal held that the principal agent was authorised under the JBCC contract to certify damages following cancellation, and that such certificates, including interim certificates, constituted liquid documents suitable for summary judgment. The appellant's defences regarding the authority of the principal agent, the format and timing of tax invoices, and the arbitration clause were found to be without merit. The court emphasised that summary judgment is appropriate where the defendant fails to disclose a bona fide and legally sustainable defence. In this case, the appellant's opposition was vague, lacked substantive challenge to the valuation or calculation of damages,...

Citation
[2009] ZASCA 23
Parties
Appellant: Joob Joob Investments (Pty) Ltd; Respondent: Stocks Mavundla Zek Joint Venture
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
27 March 2009
Case Number
161/08
Procedural Posture
Civil Appeal / Appeal From Summary Judgment in the High Court
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Harms, Navsa, Brand, Mhlantla, Bosielo
Legal Topics
Building Contracts, Summary Judgment, Liquid Documents, Arbitration Clauses, Certification of Damages
Commercial and Corporate Civil Procedure Building Contracts Summary Judgment Liquid Documents Arbitration Clauses Certification of Damages

Case Brief

Summary, issues, holding and outcome

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Parties

Joob Joob Investments (Pty) Ltd

Appellant

Stocks Mavundla Zek Joint Venture

Respondent

Procedural Posture

Civil Appeal / Appeal From Summary Judgment in the High Court

Legal Issues

  1. 1 Whether the principal agent had authority to certify damages under the building contract.
  2. 2 Whether the interim certificates issued constituted liquid documents for summary judgment purposes.
  3. 3 Whether the arbitration clause precluded the institution of action by the contractor.

Ratio Decidendi

The Supreme Court of Appeal held that the principal agent was authorised under the JBCC contract to certify damages following cancellation, and that such certificates, including interim certificates, constituted liquid documents suitable for summary judgment. The appellant's defences regarding the authority of the principal agent, the format and timing of tax invoices, and the arbitration clause were found to be without merit. The court emphasised that summary judgment is appropriate where the defendant fails to disclose a bona fide and legally sustainable defence. In this case, the appellant's opposition was vague, lacked substantive challenge to the valuation or calculation of damages,...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs consequent upon the employment of two counsel.