Kwazulu-Natal Consumer Protector and Another v Allen Street Motors and Others (KZNCT13/2023) [2024] ZACONAF 1 (12 March 2024)

Kwazulu-Natal Consumer Protector and Another v Allen Street Motors and Others (KZNCT13/2023) [2024] ZACONAF 1 (12 March 2024)

The Tribunal confirmed the parties' settlement agreement as an order, noting that the Defendants acknowledged prohibited conduct under the Consumer Protection Act and undertook to refund the Consumer R60,000 in two instalments. Dr A Jamooldeen was confirmed as surety and co-principal debtor for the full amount. The Tribunal expressed regret that the settlement prevented a full adjudication of the Defendants' breaches but respected the parties' wishes. The order provides that failure to pay the instalments will render the full R90,000 immediately due and payable, and the Consumer may enforce the agreement in a competent court with interest at the prescribed rate.

Citation
[2024] ZACONAF 1
Parties
Applicant: Kwazulu-Natal Consumer Protector; Applicant: Jerry Sihle Sangweni; Respondent: Allen Street Motors; Respondent: Tommys Auto Parts; Respondent: Dr A Jamooldeen
Court
Consumer Affairs Court
Jurisdiction
South Africa
Judgment Date
12 March 2024
Case Number
KZNCT13/2023
Procedural Posture
Settlement Order / Settlement Confirmed by Tribunal
Outcome
Settlement agreement confirmed as an order of the Tribunal; Defendants to refund Consumer R60,000 in two instalments, with suretyship and escalation to R90,000 upon default.
Judges
B Dumisa, P Dabideen, N Nursoo
Legal Topics
Consumer Protection Act, Settlement Agreement, Prohibited Conduct, Refund Claim, Suretyship
Commercial and Corporate Civil Procedure Consumer Protection Act Settlement Agreement Prohibited Conduct Refund Claim Suretyship

Case Brief

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Parties

Kwazulu-Natal Consumer Protector

Applicant

Jerry Sihle Sangweni

Applicant

Allen Street Motors

Respondent

Tommys Auto Parts

Respondent

Dr A Jamooldeen

Respondent

Procedural Posture

Settlement Order / Settlement Confirmed by Tribunal

Legal Issues

  1. 1 Whether the conduct of the Defendants constituted prohibited conduct under the Consumer Protection Act.
  2. 2 Whether the Defendants are liable to refund the Consumer for the purchase price of the defective vehicle.
  3. 3 Whether the settlement agreement should be made an order of the Tribunal.

Ratio Decidendi

The Tribunal confirmed the parties' settlement agreement as an order, noting that the Defendants acknowledged prohibited conduct under the Consumer Protection Act and undertook to refund the Consumer R60,000 in two instalments. Dr A Jamooldeen was confirmed as surety and co-principal debtor for the full amount. The Tribunal expressed regret that the settlement prevented a full adjudication of the Defendants' breaches but respected the parties' wishes. The order provides that failure to pay the instalments will render the full R90,000 immediately due and payable, and the Consumer may enforce the agreement in a competent court with interest at the prescribed rate.

Court Disposition

Settlement agreement confirmed as an order of the Tribunal; Defendants to refund Consumer R60,000 in two instalments, with suretyship and escalation to R90,000 upon default.

Orders

  • The settlement agreement between the parties is made an order of the KwaZulu-Natal Consumer Tribunal.
  • The First and Third Defendants shall refund the Second Plaintiff R60,000 in two equal instalments of R30,000, payable on or before 1 April 2024 and 1 May 2024.