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South Africa Judgment

Eastern Cape High Court, Port Elizabeth

Joycor Enterprises (Pty) Ltd v Draai and Others (2178/18) [2020] ZAECPEHC 15 (28 May 2020)

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01

Holding and result

The court found that the applicant had provided sufficient evidence to prove fulfilment of the suspensive conditions in the sale agreement, including confirmatory affidavits, a detailed letter from Mr Bester, and the founding affidavit of the first and second respondents in the eviction application. The court accepted that Mr Bester, as agent, attorney, and conveyancer for the first and second respondents, was in a position to confirm fulfilment of the conditions. The validity of the sale agreement had already been confirmed in previous proceedings by Mageza AJ, and that finding stands. The respondents' reliance on hearsay and absence of a bank affidavit was not persuasive, given the weight of the evidence presented by the applicant. The court concluded that there were no reasonable prospects of success in an appeal and dismissed the application for leave to appeal with costs.

Court disposition

Application for leave to appeal dismissed with costs.

Orders

  • The application for leave to appeal is dismissed with costs.

02

Material facts

Parties

Joycor Enterprises (Pty) Ltd

Applicant Counsel: R. G. Buchanan SC

Benjamin Paul Draai

Respondent

Karen Ann Draai

Respondent

Raynard Vicarto Brass

Respondent Counsel: A. Beyleveld SC and Mr Bands

Shereez Gwendolene Brass

Respondent Counsel: A. Beyleveld SC and Mr Bands

The Registrar of Deeds, King Williams Town

Respondent

Raynard Vicarto Brass N.O.

Respondent Counsel: A. Beyleveld SC and Mr Bands

Shereez Gwendolene Brass N.O.

Respondent Counsel: A. Beyleveld SC and Mr Bands

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal Following Judgment and Order Handed Down on 3 March 2020.

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that all suspensive conditions in the sale agreement were fulfilled, supported by confirmatory affidavits from Mr Bester, his detailed letter, and the founding affidavit of the first and second respondents in the eviction application. The applicant maintained that the prior sale agreement was valid and that all parties, including the Trust, were aware of it. The applicant contended that the respondents' reliance on advice from erstwhile attorneys did not alter the factual position regarding the prior sale agreement.
Respondent
The respondents, represented by Mr Beyleveld SC, argued that the suspensive conditions in the sale agreement were not fulfilled, and therefore, there was no valid contract between the applicant and the first and second respondents. They contended that the applicant had not discharged the onus, as there were no objective facts to support Mr Bester's evidence, which was alleged to be hearsay. The respondents argued that, absent an affidavit from the bank, the applicant failed to prove fulfilment of the conditions. They also claimed that the Trust was a bona fide purchaser of the property.

05

Court’s reasoning

  1. 01

    Superior Courts Act 10 of 2013, s 17(1)

    Leave to appeal may only be granted where the judge is of the opinion that the appeal would have reasonable prospects of success. The test under section 17(1) of the Superior Courts Act 10 of 2013 is more stringent than the previous test under the repealed Supreme Court Act 59 of 1959.

  2. 02

    Rees v Harris 2012 (1) SA 583 (GSJ) at 596

    The principle that hearsay evidence is insufficient to discharge the onus unless supported by objective facts.

  3. 03

    Mageza AJ judgment in eviction application

    Findings made in previous related proceedings regarding the validity of a sale agreement are binding unless set aside.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the applicant had provided sufficient evidence to prove fulfilment of the suspensive conditions in the sale agreement, including confirmatory affidavits, a detailed letter from Mr Bester, and the founding affidavit of the first and second respondents in the eviction application. The court accepted that Mr Bester, as agent, attorney, and conveyancer for the first and second respondents, was in a position to confirm fulfilment of the conditions. The validity of the sale agreement had already been confirmed in previous proceedings by Mageza AJ, and that finding stands. The respondents' reliance on hearsay and absence of a bank affidavit was not persuasive, given the weight of the evidence presented by the applicant. The court concluded that there were no reasonable prospects of success in an appeal and dismissed the application for leave to appeal with costs.

Obiter and limits

  • The bar for granting leave to appeal under section 17(1) of the Superior Courts Act is higher and more stringent than under the repealed Supreme Court Act.
  • Reliance on advice from erstwhile attorneys does not alter the factual position regarding knowledge of the prior sale agreement.

Court disposition

Application for leave to appeal dismissed with costs.

  • The application for leave to appeal is dismissed with costs.

Source and reliance status

Eastern Cape High Court, Port Elizabeth

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Judgment text

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Source document

Eastern Cape High Court, Port Elizabeth

Judgment

[2020] ZAECPEHC 15

IN

THE HIGH COURT OF SOUTH AFRICA

(EASTERN CAPE LOCAL DIVISION, PORT ELIZABETH)

CASE NO.: 2178/18

Heard on: 19 May 2020

Delivered on: 28 May 2020

In the matter between:

JOYCOR ENTERPRISES (PTY)

LTD APPLICANT

and

BENJAMIN PAUL DRAAI First

Respondent

KAREN ANN DRAAI Second

Respondent

RAYNARD VICARTO BRASS Third

Respondent

SHEREEZ GWENDOLENE

BRASS

Fourth Respondent

THE REGISTRAT OF DEEDS

KING WILLIAMS TOWN Fifth

Respondent

RAYNARD VICARTO BRASS N.O. Sixth

Respondent

SHEREEZ GWENDOLENE BRASS N.O.

Seventh Respondent

JUDGMENT

GQAMANA J

[1] This is an application for leave to appeal against my Order and judgment which was handed down on 3 March 2020. Only the third, fourth sixth and seventh respondents are contesting my judgment. The first and second respondents, the previous owners of the property in question have not participated in the present application.

[2] The factual matrix relevant hereto are well set out in the judgment. In brief, the applicant and the first and second respondents entered into an agreement of sale on 17 February 2017 in terms of which, the applicant purchased from them the property relevant hereto. Such agreement contained some suspensive conditions. It is those suspensive conditions which Mr Beyleveld argued that they were not fulfilled hence his submissions that there was no valid contract

between the applicant and first and second respondents. The argument to a greater extent was a recitation of their defence in the main application.

[3] It was ardently argued by Mr Beyleveld SC that the applicant has not discharged the onus and there were no objective facts to support Mr Bester’s view and that his evidence was hearsay. The argument was advanced that, absent an affidavit from the bank the applicant has not discharged the onus. Reliance was placed in Rees v Haris 2012 (1) SA 583 (GSJ) at 596, for the above argument. The principle enunciated therein is accepted. However in the instant matter, as correctly pointed out by Mr Buchanan SC that, it was not only Mr Bester’s say so that there was fulfilment of the conditions but the first and second respondents unequivocally in their founding affidavit in the eviction application confirmed that the applicant (“Joycor”) had complied fully with its obligations. In addition thereto it is also important not to lose sight on the fact that Mr Bester was the agent, the attorney and the conveyancer for the first and second respondents. It was his obligation and responsibility to ensure that the conditions had been fulfilled and on more than one occasion he confirmed under oath that all the suspensive conditions were fulfilled. Coupled with that, his letter (at page 70 of the index) sets out in detailed how the applicant complied with those conditions. There is no more evidence stronger than what is already presented by the applicant in the form of the confirmatory affidavits from Mr Bester, his letter, the first and second respondents founding affidavit in the eviction application which all supports the Applicant’s contention that all the suspensive conditions were fulfilled is required.

[4] Another fundamental point is that the validity of the first sale agreement was confirmed by Mageza AJ in his judgment in the eviction application. Again as correctly pointed out by Mr Buchanan SC that, the same sale agreement was in dispute in the eviction application and Mageza AJ made the finding in that regard and that finding stands.

[5] In relation to the contention that the Trust was a bona fide purchaser of the property, Mr Buchanan SC, correctly in my view argued that all the parties had knowledge of the sale agreement between the applicant and first and second respondents. Reliance on the advice from the first and second respondents erstwhile attorneys that such sale fell through does not alter the factual position that they were aware of the prior sale agreement.

[6] In terms of s 17 (1) of the Superior Courts Act 10 of 2013, leave to appeal may only be granted where the Judge concern is of the opinion that the appeal would have a reasonable prospects of success. The bar of the test that has now to be applied to the merits of the proposed appeal before leave should be granted is higher and stringent compared to the previous test under the now repealed Supreme Court Act 59 of 1959[1].

[7] Having considered all the submissions and the grounds upon which the present respondents seek to rely upon in this application for leave to appeal, I am not persuaded that there are reasonable prospects of success in an appeal.

[8] In the circumstances, I made the following order:

1. The application for leave to appeal is dismissed with costs.

_________

N. GQAMANA

JUDGE

OF THE HIGH COURT

REPRESENTATIVES

For the Applicant

: ADV R. G. BUCHANAN SC

Instructed by

: Greyvensteins Attorneys

For the 3rd, 4th, 6th and 7th Respondents : ADV A. BEYLEVELD SC and MR BANDS

Instructed by

: Swarts Attorneys

[1] See Notshokovu v S Unreported Case 157/15 dated 7 September 2016 at para2 and also The Mont Chevaux Trust (IT 2012/2018) v Tina Goosen, Unreported LCC Case No.: LCC14R/2014 dated 3 November 2014).

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Rees v Harris 2012 (1) SA 583 (GSJ) at 596

Case cited

Notshokovu v S Unreported Case 157/15 dated 7 September 2016

Case cited

The Mont Chevaux Trust (IT 2012/2018) v Tina Goosen, Unreported LCC Case No.: LCC14R/2014 dated 3 November 2014

Case cited

Superior Courts Act 10 of 2013

Legislation

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