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South Africa Judgment

Eastern Cape High Court, Port Elizabeth

J.P. v E.S.P. (790/2011) [2014] ZAECPEHC 25 (8 April 2014)

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Source document

01

Holding and result

The court found that the applicant's need for a forensic audit was justified, as the Receiver's report would not address all relevant financial issues necessary for determining maintenance. The claimed contribution excluded further costs for expert testimony and trial preparation, and the respondent was only required to contribute a portion of the applicant's costs. Based on the evidence and previous judgment, the respondent could afford the contribution. The court therefore ordered the respondent to pay R15,000 towards the applicant's legal costs, to pay for the tertiary studies of the parties' son, and confirmed the continued effect of paragraphs 5 and 6 of the previous order.

Court disposition

Application granted in part; respondent ordered to contribute R15,000 to applicant's costs and pay for son's tertiary studies.

Orders

  • Paragraphs 5 and 6 of the order granted on 17 September 2013 remain in force.
  • The respondent shall pay R15,000 towards the applicant's legal costs within 14 days.
  • The respondent shall pay for the tertiary studies of the parties' son, Andrew, including all costs related to his studies at Images 1 Hair Academy and City and Guild International qualification course, until completion.
  • The costs of this application shall be costs in the divorce action between the parties.

02

Material facts

Parties

J.P.

Applicant Counsel: Potgieter

E.S.P.

Respondent Counsel: Beneke

Amounts and remedies

  • Contribution to Applicant's Legal Costs: ZAR 15,000

03

Procedural history

  1. Posture

    Rule 43 Application / Application for Interim Relief Pending Divorce

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contended that a contribution to costs was necessary to appoint an expert for a forensic audit of the respondent's financial affairs, alleging the respondent was not forthright about his income from property and business interests. The audit would cover banking accounts, disclosed documents, property in Greece, and a disputed family loan, all relevant to determining the respondent's true earning capacity and maintenance obligations. The R15,000 amount was based on an estimate from Grant Thorton Chartered Accountants and excluded expert testimony costs.
Respondent
The respondent argued that a forensic audit was unnecessary, as the Receiver and Liquidator's report would suffice. Alternatively, if the court found the forensic report unnecessary, the respondent submitted he should only pay a portion of the claimed amount, not the full R15,000.

05

Court’s reasoning

  1. 01

    Uniform Rules of Court, Rule 43

    In Rule 43 applications, the court may order a party to contribute to the other party's legal costs if such contribution is necessary for a fair determination of maintenance and related issues.

  2. 02

    Makaula J's prior judgment in this matter

    The report of a Receiver and Liquidator is primarily intended to address the accrual of estates and may not suffice for determining true earning capacity relevant to maintenance claims.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the applicant's need for a forensic audit was justified, as the Receiver's report would not address all relevant financial issues necessary for determining maintenance. The claimed contribution excluded further costs for expert testimony and trial preparation, and the respondent was only required to contribute a portion of the applicant's costs. Based on the evidence and previous judgment, the respondent could afford the contribution. The court therefore ordered the respondent to pay R15,000 towards the applicant's legal costs, to pay for the tertiary studies of the parties' son, and confirmed the continued effect of paragraphs 5 and 6 of the previous order.

Obiter and limits

  • The costs of this application shall be costs in the divorce action between the parties.
  • The respondent's financial capacity was sufficient to meet the contribution claimed by the applicant.

Court disposition

Application granted in part; respondent ordered to contribute R15,000 to applicant's costs and pay for son's tertiary studies.

  • Paragraphs 5 and 6 of the order granted on 17 September 2013 remain in force.
  • The respondent shall pay R15,000 towards the applicant's legal costs within 14 days.
  • The respondent shall pay for the tertiary studies of the parties' son, Andrew, including all costs related to his studies at Images 1 Hair Academy and City and Guild International qualification course, until completion.
  • The costs of this application shall be costs in the divorce action between the parties.

Source and reliance status

Eastern Cape High Court, Port Elizabeth

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Judgment text

The complete available source text.

Source document

Eastern Cape High Court, Port Elizabeth

Judgment

[2014] ZAECPEHC 25

SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document in compliance with the law and SAFLII Policy

IN

THE HIGH COURT OF SOUTH AFRICA

EASTERN CAPE DIVISION – PORT ELIZABETH

Case no: 790/2011

Date Heard: 01/04/2014

Date Delivered: 08/04/2014

In the matter between:

J.P.

APPLICANT

AND

E.S.P. RESPONDENT

JUDGMENT

SMITH J:

[1] This is an application in terms of Rule 43 of the Uniform Rules of Court for an order: declaring that certain paragraphs of an order granted by Makaula J shall remain in force; compelling the respondent to contribute the sum of R15 000 towards the applicant’s costs; and ordering the respondent to pay for the tertiary studies of the parties’ minor son.

[2] The parties have subsequently reached substantial agreement on the form and substance of the order, and the only issue that remained for decision is the prayer for contribution towards costs.

[3] The applicant has averred that she required the contribution to enable her to appoint an appropriate expert to do a forensic audit in respect of the respondent’s financial affairs. She has asserted that the respondent had not been forthright with regard to the income that he derives from a block of flats and business premises owned by him. The audit will also cover his banking accounts, certain documents disclosed by him, property in Greece as well as a disputed loan from family members. The applicant contends that these issues impact upon the determination of the respondent’s true earning capacity and are thus germane to her claim for maintenance for herself and the minor child.

[4] The amount of R15 000 is based on an estimate provided by the accounting firm, Grant Thorton Chartered Accountants, and excludes the costs of the expert’s testimony,

[5] Ms Beneke, who appeared for the respondent, submitted that the forensic audit is unnecessary, and that the report of the Receiver and Liquidator will suffice. She has submitted, in the alternative, that in the event of the Court finding that the forensic report is unnecessary, the respondent should not be required to pay the full amount, but only a portion thereof.

[6] I agree, however, with Mrs Potgieter, who appeared for the applicant, that the report of the Receiver is intended to deal essentially with the issue of the accrual of the parties’ respective estates, and will thus not suffice for the purposes required by the applicant. Furthermore, the contribution claimed by the applicant excludes further costs in respect of expert testimony and preparation for trial. The respondent is thus only required to contribute a portion of the applicant’s costs.

[7] Having regard to the papers before me, as well as Makaula J’s judgment, I am satisfied that the respondent can afford the contribution claimed by the applicant.

[8] In the result the following order issues:

1. Paragraphs 5 and 6 of the order of this Court granted in this matter on 17 September 2013 remain of force and effect;

2. The respondent shall make a contribution to the applicant’s legal costs in the sum of R15 000, which amount is payable within 14 days of the date of this order;

3. The respondent shall pay for the tertiary studies of the parties’ son, Andrew, until such time he has completed his tertiary studies, which includes, but is not limited to, his City and Guild International qualification course as well as all further costs relating to his studies at Images 1 Hair Academy;

4. The costs of this application shall be costs in the divorce action between the parties.

_______

J.

E SMITH

JUDGE

OF THE HIGH COURT

Appearances

Counsel for the Applicant

: Advocate Potgieter

Attorneys for the Applicant

: Anthony Inc

9 Bird Street

Central

Port Elizabeth

Tel: 041 582 5150

REF: J Anthony

Counsel for the Respondent : Advocate Beneke

Attorneys for the Respondent : Steve Ioulianou

17 Chaucer Street

Bedfordview

Tel: 011 453 8131

Ref: S Ioulianou/sm/p444

Date Heard

: 01 April 2014

Date Delivered

: 08 April 2014

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

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

Makaula J's prior judgment in this matter

Case cited

Uniform Rules of Court, Rule 43

Legislation

Legislation referenced in the available case record.

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