Joshek Foto Enterprises t/a Kameraz v Blueprint Strategic Marketing Communications CC (25340/2013) [2013] ZAGPJHC 288 (8 November 2013)
The court held that the applicant's acceptance of the defendant's proposal to pay the debt in instalments did not extinguish the original cause of action based on goods sold and delivered. The payment of R100,000.00 was made in response to the summons and formed part of the proposed instalment plan, not a separate...
Source-derived case information.
- Citation
- [2013] ZAGPJHC 288
- Parties
- Plaintiff: Joshek Foto Enterprises t/a Kameraz; Defendant: Blueprint Strategic Marketing Communications CC
- Court
- South Gauteng High Court, Johannesburg
- Jurisdiction
- South Africa
- Case Number
- 25340/2013
- Procedural Posture
- Summary Judgment Application / Application for Summary Judgment Following Part Payment and Opposition
- Outcome
- Summary judgment granted in favour of the plaintiff for the outstanding amount. Amendment of defendant's name allowed. Costs awarded against the defendant.
- Judges
- Mashile
- Legal Topics
- Summary Judgment, Goods Sold and Delivered, Settlement Agreement, Amendment of Citation
Source-derived case record
Summary, issues, holding and outcome
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Parties
Joshek Foto Enterprises t/a Kameraz
Plaintiff
Blueprint Strategic Marketing Communications CC
Defendant
Procedural Posture
Summary Judgment Application / Application for Summary Judgment Following Part Payment and Opposition
Legal Issues
- 1 Whether the plaintiff is entitled to summary judgment for the outstanding amount after part payment by the defendant.
- 2 Whether acceptance of a settlement offer alters the original cause of action based on goods sold and delivered.
- 3 Whether a technical error in the citation of the defendant's name constitutes a valid defence.
Ratio Decidendi
The court held that the applicant's acceptance of the defendant's proposal to pay the debt in instalments did not extinguish the original cause of action based on goods sold and delivered. The payment of R100,000.00 was made in response to the summons and formed part of the proposed instalment plan, not a separate settlement agreement. The applicant was entitled to seek summary judgment for the outstanding balance. The technical error in the defendant's name was deemed cosmetic and was permitted to be amended. The respondent's defences were found to be without merit and summary judgment was granted for the remaining amount.
Court Disposition
Summary judgment granted in favour of the plaintiff for the outstanding amount. Amendment of defendant's name allowed. Costs awarded against the defendant.
Orders
- Summary judgment is granted.
- The letters CC in the name of the Respondent are removed and substituted with (Pty) Ltd.
Full Case Text
Judgment text and source record
55 paragraphs
REPORTABLE
REPUBLIC OF SOUTH AFRICA
IN THE SOUTH GAUTENG HIGH COURT
JOHANNESBURG
CASE NO: 25340/2013
08 November 2013
In the matter between:
JOSHEK FOTO ENTERPRISES t/a KAMERAZ................................... Plaintiff
and
BLUEPRINT STRATEGIC MARKETING
COMMUNICATIONS CC.................................................................. Defendant
J U D G M E N T
MASHILE, J:
[1] This is an application for summary judgment by which the Applicant seeks payment of an amount of R312 220.00
[2] The background facts are that on or about 27 November 2012 to 11 February 2013 the parties concluded a verbal agreement for the sale and delivery of goods at the special instance and request of the Respondent.
[3] In compliance with the agreement the Applicant delivered goods to the value of R312 220.00 to the Respondent. It rendered three discrete invoices amounting in all to R312 220.00.
[4] Formal demand notwithstanding the Respondent failed to make payment of the amount of R312 220.00 and the Applicant issued and served summons upon the Respondent claiming the amount.
[5] The Respondent reacted to the summons by making an offer to settle the amount in three instalments and made the first payment of R100 000.00. The Applicant responded thereto as follows:
“Good Morning Brendan
Thank you very much for you letter and proof of first payment. We herewith wish to advise that it is our instruction to accept your proposal for 3 payments, for the capital amount. Our client however is only prepared to accept same if legal costs and interest in inclusive thereof.
Please confirm.
Kind Regards”
[6] The Respondent did not reply to the letter but having paid the first amount of the three instalments, R100 000.00, subsequently served and filed its Notice of Intention to Defend the action.
[7] The Applicant launched an application for summary judgment. In addition to the affidavit in support of summary judgment containing
the standard averments, the Applicant inserted the following paragraphs which read:
“3. I hereby advice the above Honourable court that on 19 July 2013, after the Defendant/Respondent received the Summons, they paid the amount of R100 000.00 towards settlement of the amount claimed in the Summons. Attached herewith and marked as Annexure A is a copy of such proof of payment received from the Defendant/Respondent.
4. I furthermore confirm that I accepted the settlement offer made by the Respondent/Defendant on 22 July 2013, in which I will accept the capital amount in three instalments, and the interest and legal costs in settlement. I also confirmed receipt of payment in the amount of R100 000.00. Attached herewith and marked as Annexure “B” is a copy of the letter accepting payment
5. I therefore confirm that the amount outstanding and claimed as per the Summary judgment is now only R212 220.00.”
[8] The Respondent opposed the summary judgment application and the reasons for its opposition are firstly, that the Applicant’s
initial cause of action was based on goods sold and delivered at the special instance and request of the Respondent. The Applicant’s
acceptance of the offer of settlement meant that the first cause of action was no longer available to it. The Respondent argues that the Applicant was obliged to sue in terms of the settlement agreement.
[9] Secondly, the Applicant cited the Respondent as a close corporation instead of a company albeit that all other information such as address, contact particulars, registration number and other information was correct and proved that the close corporation was in fact the company.
[10] These two defences, which the Respondent believed to be bona fide, constituted the basis of what the Respondent maintained would render the claim of the Applicant against it assailable.
[11] With regard to the defence that the wrong party has been sued, the Respondent conceded that it was technical and for that reason it was prepared to withdraw it. The court having been satisfied that it was indeed a cosmetic typing error, it allowed an amendment. Close corporation was as a result substituted for proprietary limited
[12] It is now convenient to turn squarely to the Respondent’s main defence being that the claim of the Applicant became settled and the Applicant’s claim ought to have been based thereon.
[13] The Respondent’s offer was prompted by the claim of the Applicant as captured in the summons. It is plain that the Applicant
also accepted the offer directly induced by the contents of its summons. Being for goods sold and delivered at the special instance
and request of the Respondent.
[14] At the time when the offer was made an action for a claim based on goods sold and delivered had been instituted. It follows that the payment of R100 000.00 could not have been made in respect of the so-called settlement agreement. It was instead, part of the three instalments proposed by the Respondent.
[15] The fact that the Applicant chose to introduce three paragraphs explaining the discrepancy of the amount in the summons and the one for which he was praying in the summary judgment application is of no consequence.
[16] In fact, it happens all the time that a party would come to court opposing a summary judgment having partly liquidated part of the debt. In that event the Applicant would normally acknowledge receipt of payment and accordingly pray for a lesser amount at the time of the hearing.
[17] I am still to hear a party raising as a defence the fact that it has made part payment and that in consequence the cause of action has changed. That argument is untenable and devoid of any merit and stands to be rejected.
[18] In the premises the application for summary judgment succeeds and I make the following order:
1. Summary judgment is granted.
2. The letters CC in the name of the Respondent are removed and substituted therefor with (Pty) Ltd; and
3. Respondent is to pay the costs.
B MASHILE
JUDGE OF THE SOUTH GAUTENG
HIGH COURT, JOHANNESBURG
Date of Hearing: 25/10/2023
Date of Judgment: 08/11/2013
Counsel for Applicant: Adv. Robert Scholtz
Instructed by: Meijers Attorneys
Counsel For Respondent: Adv. A. Scott
Instructed by: De Kooker Attorneys