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South Africa Judgment

South Gauteng High Court, Johannesburg

Joshek Foto Enterprises t/a Kameraz v Blueprint Strategic Marketing Communications CC (25340/2013) [2013] ZAGPJHC 288 (8 November 2013)

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Source document

01

Holding and result

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.
  • Respondent is to pay the costs.

02

Material facts

Parties

Joshek Foto Enterprises t/a Kameraz

Plaintiff Counsel: Adv. Robert Scholtz

Blueprint Strategic Marketing Communications CC

Defendant Counsel: Adv. A. Scott

Amounts and remedies

  • Outstanding Amount Claimed: ZAR 212,220
  • Initial Amount Invoiced: ZAR 312,220
  • First Instalment Paid: ZAR 100,000

03

Procedural history

  1. Posture

    Summary Judgment Application / Application for Summary Judgment Following Part Payment and Opposition

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contends that the defendant purchased goods under a verbal agreement and failed to pay the full invoiced amount of R312,220.00. After summons was issued, the defendant proposed to settle in three instalments and paid R100,000.00. The applicant accepted the proposal, subject to legal costs and interest, and now seeks summary judgment for the outstanding balance. The applicant argues that part payment does not extinguish the original cause of action and that the technical error in the defendant's name is cosmetic and amendable.
Respondent
The respondent argues that the applicant's acceptance of the settlement offer replaced the original cause of action, requiring the applicant to sue under the settlement agreement rather than for goods sold and delivered. The respondent also raises a technical defence regarding the incorrect citation of its name as a close corporation instead of a company, but concedes this point as a mere typographical error.

05

Court’s reasoning

  1. 01

    Mashile J, para 16-17

    Part payment of a debt after summons does not alter the original cause of action; the plaintiff may seek summary judgment for the outstanding balance.

  2. 02

    Mashile J, para 11

    Technical errors in the citation of a party's name, where all other identifying information is correct, may be amended and do not constitute a substantive defence.

06

Ratio, limits and disposition

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.

Obiter and limits

  • It is common for a party opposing summary judgment to have partially paid the debt, and the applicant may then seek judgment for the reduced amount.
  • A defence based solely on part payment, claiming that the cause of action has changed, is untenable and must be rejected.

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.

  • Summary judgment is granted.
  • The letters CC in the name of the Respondent are removed and substituted with (Pty) Ltd.
  • Respondent is to pay the costs.

Source and reliance status

South Gauteng High Court, Johannesburg

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Judgment reading view

Judgment text

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Source document

South Gauteng High Court, Johannesburg

Judgment

[2013] ZAGPJHC 288

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

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