Kwazulu-Natal Consumer Protector and Another v Mystic Cars (Pty) Ltd (KZNCT11/2023) [2023] ZACONAF 7 (2 August 2023)

Kwazulu-Natal Consumer Protector and Another v Mystic Cars (Pty) Ltd (KZNCT11/2023) [2023] ZACONAF 7 (2 August 2023)

The Tribunal found that the Defendant engaged in prohibited conduct by selling a vehicle with unresolved mechanical defects and failing to comply with MIOSA's recommendations. The parties reached a settlement in which the Defendant acknowledged liability and undertook to refund the Consumer R20,000.00 by 3 August 2023. Mr Floyd Evan Willis was confirmed as surety and co-principal debtor for the payment. In the event of breach, the full repair cost of R37,051.85 would become immediately payable. The Tribunal confirmed the settlement agreement as an order, granting the Consumer enforceable rights to claim the agreed amounts and interest in case of non-payment.

Citation
[2023] ZACONAF 7
Parties
Applicant: Kwazulu-Natal Consumer Protector; Applicant: Carol Ann Botes; Respondent: Mystic Cars (Pty) Ltd
Court
Consumer Affairs Court
Jurisdiction
South Africa
Judgment Date
2 August 2023
Case Number
KZNCT11/2023
Procedural Posture
Settlement Order / Order Granted Following Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal. Defendant to pay R20,000.00 to the Consumer by 3 August 2023; Mr Floyd Evan Willis confirmed as surety and co-principal debtor. In case of breach, R37,051.85 becomes immediately payable.
Judges
B Dumisa, A Sewpersad, P Dabideen
Legal Topics
Consumer Protection Act, Prohibited Conduct, Settlement Agreement, Refund, Suretyship
Commercial and Corporate Civil Procedure Consumer Protection Act Prohibited Conduct Settlement Agreement Refund Suretyship

Case Brief

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Parties

Kwazulu-Natal Consumer Protector

Applicant

Carol Ann Botes

Applicant

Mystic Cars (Pty) Ltd

Respondent

Procedural Posture

Settlement Order / Order Granted Following Settlement Agreement

Legal Issues

  1. 1 Whether the Defendant engaged in prohibited conduct under the Consumer Protection Act.
  2. 2 Whether the Defendant is liable to refund the Consumer for mechanical defects in the purchased vehicle.
  3. 3 Whether the settlement agreement should be made an order of the Tribunal.

Ratio Decidendi

The Tribunal found that the Defendant engaged in prohibited conduct by selling a vehicle with unresolved mechanical defects and failing to comply with MIOSA's recommendations. The parties reached a settlement in which the Defendant acknowledged liability and undertook to refund the Consumer R20,000.00 by 3 August 2023. Mr Floyd Evan Willis was confirmed as surety and co-principal debtor for the payment. In the event of breach, the full repair cost of R37,051.85 would become immediately payable. The Tribunal confirmed the settlement agreement as an order, granting the Consumer enforceable rights to claim the agreed amounts and interest in case of non-payment.

Court Disposition

Settlement agreement confirmed as an order of the Tribunal. Defendant to pay R20,000.00 to the Consumer by 3 August 2023; Mr Floyd Evan Willis confirmed as surety and co-principal debtor. In case of breach, R37,051.85 becomes immediately payable.

Orders

  • The settlement agreement between the parties is made an order of the KwaZulu-Natal Consumer Tribunal.
  • The Defendant shall pay R20,000.00 to the Second Plaintiff by 3 August 2023.