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South Africa Judgment

Consumer Affairs Court

Kwazulu-Natal Consumer Tribunal And Another v GS Signs (KZNCT04/2022) [2022] ZACONAF 16 (12 September 2022)

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The Tribunal found that the Defendant's services did not meet the standards required under the Consumer Protection Act, as evidenced by the defects in the vehicle wrap and related workmanship. The parties negotiated and agreed to a settlement, which the Tribunal deemed appropriate to confirm as an order. The settlement provides for payment by the Defendant to the Second Plaintiff in specified instalments, with a clause that the full claim becomes due if the Defendant defaults. The Tribunal confirmed the settlement agreement as an order, ensuring compliance and finality to the dispute.

Court disposition

Settlement agreement confirmed and made an order of the KwaZulu-Natal Consumer Tribunal. No order as to costs.

Orders

  • The settlement agreement dated 31 August 2022 is confirmed and made an order of the KwaZulu-Natal Consumer Tribunal under case KZNCT04/2022.
  • The Defendant shall pay the Second Plaintiff R56,822.00 in instalments as specified in the agreement.
  • In the event of default, the full claim becomes immediately due and payable.
  • No order as to costs.

02

Material facts

Parties

Office of the KwaZulu-Natal Consumer Protector

Applicant Counsel: Ryan Moodley

Jordache Govender

Applicant Counsel: Ureshni Govender

GS Signs (Pty) Ltd

Respondent Counsel: Keshlen Naidoo

Amounts and remedies

  • Settlement Amount: ZAR 56,822
  • First Instalment: ZAR 35,000
  • Second Instalment: ZAR 7,274
  • Third Instalment: ZAR 7,274
  • Fourth Instalment: ZAR 7,274

03

Procedural history

  1. Posture

    Settlement Order / Final Hearing and Confirmation of Settlement Agreement

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants argued that the Defendant failed to provide services of acceptable quality as required by the Consumer Protection Act. The Second Plaintiff's vehicle was returned with defects including air bubbles, lifting wrap, scratches, debris under the wrap, and improper reattachment of the badge. The applicants sought a refund of the deposit, costs for removal of the wrap, payment for repairs to the vehicle and its body control unit, and alternative relief.
Respondent
The respondent, GS Signs, initially disputed the extent of liability but ultimately agreed to settle the matter. The respondent consented to pay the Second Plaintiff a total of R56,822.00 in instalments, with the understanding that failure to pay would render the full claim immediately due and payable. The respondent agreed to the settlement terms and their confirmation as a Tribunal order.

05

Court’s reasoning

  1. 01

    Consumer Protection Act, No. 68 of 2008

    Consumers are entitled to fair value, good quality, and safety in terms of services rendered, as provided by Sections 53-61 of the Consumer Protection Act.

  2. 02

    Section 150(d) of the National Credit Act, Act 34 of 2005

    A settlement agreement reached between parties may be made an order of the Tribunal if it is just and equitable.

06

Ratio, limits and disposition

Ratio decidendi

The Tribunal found that the Defendant's services did not meet the standards required under the Consumer Protection Act, as evidenced by the defects in the vehicle wrap and related workmanship. The parties negotiated and agreed to a settlement, which the Tribunal deemed appropriate to confirm as an order. The settlement provides for payment by the Defendant to the Second Plaintiff in specified instalments, with a clause that the full claim becomes due if the Defendant defaults. The Tribunal confirmed the settlement agreement as an order, ensuring compliance and finality to the dispute.

Obiter and limits

  • The Tribunal commended the parties for reaching a settlement, noting that such agreements promote efficient resolution of consumer disputes.
  • The Tribunal emphasized the importance of service providers adhering to statutory standards of quality and fairness.

Court disposition

Settlement agreement confirmed and made an order of the KwaZulu-Natal Consumer Tribunal. No order as to costs.

  • The settlement agreement dated 31 August 2022 is confirmed and made an order of the KwaZulu-Natal Consumer Tribunal under case KZNCT04/2022.
  • The Defendant shall pay the Second Plaintiff R56,822.00 in instalments as specified in the agreement.
  • In the event of default, the full claim becomes immediately due and payable.
  • No order as to costs.

Source and reliance status

Consumer Affairs Court

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Judgment reading view

Judgment text

The complete available source text.

Source document

Consumer Affairs Court

Judgment

[2022] ZACONAF 16

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 KWAZULU-NATAL CONSUMER TRIBUNAL HELD IN DURBAN

Case number: KZNCT04/2022

In the matter between:

KWAZULU-NATAL

CONSUMER TRIBUNAL

FIRST PLAINTIFF

JORDACHEGOVENDER

(Name of the CONSUMER)

SECOND PLAINTIFF

And

GS

SIGNS

DEFENDANT

Coram:

Prof B Dumisa: Chairperson and Presiding Tribunal Member

Ms A Sewpersad: Tribunal Member

Ms P Ndlovu: Tribunal Member

Date of Hearing: 31 August 2022

Date of Judgment: 12 September 2022

JUDGEMENT

AND SETTLEMENT ORDER

PLAINTIFF

FIRST

PLAINTIFF

1. The First Plaintiff in this matter is the OFFICE OF THE KWAZULU-NATAL CONSUMER PROTECTOR, established in terms of Section 5 of the KwaZulu-Natal Consumer Protector Act (the "Act")(hereinafter referred to as "the First Plaintiff', with head Offices at 270 Jabu Street, Pietermaritzburg, in the Prof of KwaZulu-Natal.

1.1 The Office of the KwaZulu-Natal Consumer Protector falls under the Department of Economic Development, Tourism and Environmental Affairs (EDTEA) in the Province of KwaZulu-Natal.

1.2 At the Hearings, the First Plaintiff was represented by Mr Ryan Moodley, a Deputy Director in the Office of the KwaZulu-Natal Consumer Protector, in the employ of the First Plaintiff.

1.3 The First Plaintiff's Investigation Report was deposed by Ms Vanessa Shabangu, an Investigator appointed within Consumer Protection Services, in the employ of the First Plaintiff.

SECOND

PLAINTIFF

2. The Second Plaintiff, the Consumer, in this matter is Mr Jordache Govender, a major male who is a resident of Durban, in the Province of KwaZulu-Natal.

2.1 He is the owner of an Audi S6, 2013 model, with registration number [....], which is the subject of dispute in this case.

2.2 He had taken his car to the Defendant for "Wrapping". But, upon collection, he noticed that the work conducted on his vehicle was of poor standard and quality. Concerns that he had on the work conducted on his vehicle, included the following:

2.2.1 the vehicle had air bubbles under the wrap;

2.2.2 the wrap on the vehicle was lifting at the corners;

2.2.3 the vehicle had scratches on certain parts;

2.2.4 there was sand and debris under the surface of the vehicle wrap; and

2.2.5 his vehicle's original badge had been poorly attached back on the vehicle using a two-way tape and q-bond glue, instead of professionally reinstating the badge as originally attached.

2.3 He lodged a complaint against the Defendant in terms of Part Hof the Consumer Protection Act, No. 68 of 2008, as amended ("the CPA"), which guarantees consumers "Right to fair value, good quality and safety" through Sections 53-61 of the Act.

2.4 At the Hearing, the Second Plaintiff was represented by an Attorney, Ms Ureshni Govender.

DEFENDANT

3. The Defendant is GS SIGNS (Pty) Ltd, with registration number K2018312975, a company and service provider, with its principal place of business situated at 26 Crassula Road, Micropark Unit 55, Cornubia, KwaZulu-Natal, 4339 and whose full and further particulars are unknown to the Second Plaintiff.

4. At the Hearing, the Defendant was represented by an Attorney, Mr Keshlen Naidoo of K&N Attorneys.

THE

HEARING

5. This matter was set down for hearings at least twice before this third hearing on the 31st of August 2022.

5.1 At the first hearing, the parties requested that the hearing be postponed in order to allow the paties time to negotiate a Settlement Agreement.

5.2 At the second hearing, the parties had not yet agreed on any Settlement Agreement.

5.3 At the third and final hearing, the parties had not yet agreed on any Settlement Agreement; but the KZN Consumer Tribunal made it clear it intended concluding the matter that day, 31 August 2022.

5.4 It is against this background that the parties finally agreed on this Settlement Agreement attached, as agreed to by all parties.

6. The following witnesses had been summoned to come and testify at this hearing, and did attend though not used due to the finalization of this Settlement Agreement:

6.1 Ms Madelein Pretorious

6.2 Jan Nortje

6.3 Avirnd Coarpersadh

6.4 Jean Pirrie Smith

CONCLUSION

7. Consequently, the Tribunal is persuaded that it is appropriate to grant the request of the parties that their Settlement Agreement be made an Order of the KZN Consumer Tribunal.

ORDER

8. Accordingly, the Tribunal makes the following order:

The Settlement Agreement, dated the 3P1 of August 2022, concluded between the First Plaintiff, Second Plaintiff, and The Defendant, which is attached as "Annexure A", under case KZNCT04/2022, is confirmed and made an order of the KwaZulu-Natal Consumer Tribunal in terms of Section 150(d) of the National Credit Act, Act 34 of 2005.

9. There is no order as to costs.

Thus, done and signed in Durban on this 12th Day of September 2022.

Prof. B. Dumisa

Chairperson and Presiding Tribunal Member

Ms. A Sewpersad (Tribunal Member) and Ms. P Ndlovu (Tribunal Member) concurring.

ANNEXURE A

In the KwaZulu-Natal Consumer Tribunal

Case no: KZNCT04/2022

KwaZulu Natal Consumer Protector

First Plaintiff

Jordache Govender

Second Plaintiff

GS

SIGNS

Defendant

SETTLEMENT

AGREEMENT

WHEREAS the Second Plaintiff sought an order against the Defendant for, inter alia,

i) Refund of full deposit R9600-00;

ii) Costs to remove to remove the wrap in the amount of R5750.00

iii) Payment of R76 658.28 for the repair to the motor vehicle;

iv) Payment of R13 594.73 for costs to repair the damages to the motor vehicle caused to the body control unit;

v) Alternative relief.

WHEREAS the parties deem it necessary to settle the matter.

NOW THEREFORE IT IS AGREED AS FOLLOWS:-

1.

The Defendant will pay the Second Plaintiff in sum of R56 822.00 in settlement of the claim payable as follows:-

1.1 Payment in the amount of R35 000.00 on or before the 7th September 2022;

1.2 Payment in the amount of R7 274.00 on or before the 30th September 2022;

1.3 Payment in the amount of R7 274.00 on or before the 30th October 2022; and

1.4 Payment in the amount of R7274.00 on or before the 30th November 2022.

2.

2.1 The Defendant is to pay the amounts stipulated in paragraph 1above directly into the Second Plaintiffs bank account, details of which are as follows:-

Account Holder: Jordache Govender

Bank name:

ASSA

Type:

Savings

Account number: [....]

Branch code: 632005

Ref:

KZNTC04/2022

2.2 The Defendant is to quote the reference KZNTC04/2022 when making payment.

3.

In the event that the Defendant fails to make payment in terms of agreement one above of defaults in any payment as agreed above, then the full claim in respect of

i) Refund of full deposit R9600-00;

ii) Costs to remove to remove the wrap in the amount of R5750.00

iii) Payment of R76 658.28 for the repair to the motor vehicle;

iv) Payment of R13 594.73 for costs to repair the damages to the motor vehicle caused to the body control unit;

Becomes, immediately due owing and payable.

4.

Any variation will only be of force if it is reduced in writing and signed by both parties.

5.

The First Plaintiff agrees to the above.

6.

The parties consent to the terms and conditions of this settlement agreement being made an order of the KwaZulu Natal Consumer Tribunal.

Dated at Durban on this 31st day of August 2022.

First Plaintiff

Ryan Moodley

Deputy Director : Consumer Protection

Second Plaintiff

Jordache Govender

Defendant

Duly authorised

Keshlen Naidoo

Attorney for Defendant

K&N Attorneys

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.

Consumer Protection Act, No. 68 of 2008

Legislation

Legislation referenced in the available case record.

KwaZulu-Natal Consumer Protector Act

Legislation

Legislation referenced in the available case record.

National Credit Act, Act 34 of 2005

Legislation

Legislation referenced in the available case record.

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