J.S N.O and Another v P.J.N S Familie Trust and Others (2017/66789) [2020] ZAGPPHC 52 (20 February 2020)

J.S N.O and Another v P.J.N S Familie Trust and Others (2017/66789) [2020] ZAGPPHC 52 (20 February 2020)

The applicants failed to establish that any provision of the trust instrument resulted in unforeseen consequences as contemplated by Section 13 of the Trust Property Control Act. The founding affidavit did not make out a case for termination of the trust, cancellation of the usufruct, or sale of the property. The court accepted the respondents' version that the trust was established to secure the property for the capital beneficiaries and not solely as a family home. The application was not supported by the capital beneficiaries, and the relief sought was not properly pleaded. Accordingly, the application was dismissed with costs.

Citation
[2020] ZAGPPHC 52
Parties
Applicant: J[….] S[…..] N.O.; Applicant: J[….] S[….]; Respondent: THE PJN S[….] FAMILIE TRUST; Respondent: P[….] J[….] N[….] S[….]; Respondent: P[….] [….] S[….]; Respondent: R[….] S[….]; Respondent: THE MASTER OF THE HIGH COURT; Respondent: ESTEABINVESTMENTS(PTY)LTD; Respondent: THE COMPANIES AND INTELLECTUAL PROPERTY COMMISSION
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
20 February 2020
Case Number
2017/66789
Procedural Posture
Civil Application / Opposed Motion; Judgment on Merits
Outcome
Application dismissed with costs.
Judges
Mokose
Legal Topics
Trust Dissolution, Trust Property Control Act, Usufruct, Piercing Corporate Veil, Motion Proceedings, Beneficiary Rights
Land and Property Civil Procedure Commercial and Corporate Trust Dissolution Trust Property Control Act Usufruct Piercing Corporate Veil Motion Proceedings +1 more

Case Brief

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Parties

J[….] S[…..] N.O.

Applicant

J[….] S[….]

Applicant

THE PJN S[….] FAMILIE TRUST

Respondent

P[….] J[….] N[….] S[….]

Respondent

P[….] [….] S[….]

Respondent

R[….] S[….]

Respondent

THE MASTER OF THE HIGH COURT

Respondent

ESTEABINVESTMENTS(PTY)LTD

Respondent

THE COMPANIES AND INTELLECTUAL PROPERTY COMMISSION

Respondent

Procedural Posture

Civil Application / Opposed Motion; Judgment on Merits

Legal Issues

  1. 1 Whether the trust should be terminated under Section 13 of the Trust Property Control Act.
  2. 2 Whether the restrictive condition of the title deed and the usufruct in favour of the second respondent should be cancelled.
  3. 3 Whether the sale and division of the immovable property held by the trust is justified.

Ratio Decidendi

The applicants failed to establish that any provision of the trust instrument resulted in unforeseen consequences as contemplated by Section 13 of the Trust Property Control Act. The founding affidavit did not make out a case for termination of the trust, cancellation of the usufruct, or sale of the property. The court accepted the respondents' version that the trust was established to secure the property for the capital beneficiaries and not solely as a family home. The application was not supported by the capital beneficiaries, and the relief sought was not properly pleaded. Accordingly, the application was dismissed with costs.

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed with costs.
  • The costs of the application for condonation are granted in favour of the respondents.