Lemmer v Borngraber N.O and Others (3842/09) [2011] ZAWCHC 308 (18 February 2011)

Lemmer v Borngraber N.O and Others (3842/09) [2011] ZAWCHC 308 (18 February 2011)

The applicant established a prima facie liquidated claim against the trust for R600,000, which was admitted by the second respondent. The trust's inability to repay upon demand, as evidenced by the second respondent's letter, constitutes an act of insolvency. The respondents' arguments regarding authority and responsibility for the debt are unsubstantiated and contradicted by the facts. The requirements of section 10 of the Insolvency Act are satisfied on the balance of probabilities. Therefore, a provisional order of sequestration is warranted.

Citation
[2011] ZAWCHC 308
Parties
Applicant: Riana Lemmer; Respondent: Klaus Dieter Borngraber NO; Respondent: Heindre Keith Rademan NO; Respondent: Melissa Rademan NO
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
18 February 2011
Case Number
3842/09
Procedural Posture
Urgent Application / Provisional Sequestration Application
Outcome
Provisional sequestration of the Klaus en Laureen Trust granted.
Judges
S J Koen
Legal Topics
Provisional Sequestration, Trust Property Control Act, Liquidated Claim, Act of Insolvency
Civil Procedure Land and Property Provisional Sequestration Trust Property Control Act Liquidated Claim Act of Insolvency

Case Brief

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Parties

Riana Lemmer

Applicant

Klaus Dieter Borngraber NO

Respondent

Heindre Keith Rademan NO

Respondent

Melissa Rademan NO

Respondent

Procedural Posture

Urgent Application / Provisional Sequestration Application

Legal Issues

  1. 1 Whether the applicant has a liquidated claim against the trust.
  2. 2 Whether the trust has committed an act of insolvency or is insolvent.
  3. 3 Whether it is to the advantage of creditors that the trust be sequestrated.

Ratio Decidendi

The applicant established a prima facie liquidated claim against the trust for R600,000, which was admitted by the second respondent. The trust's inability to repay upon demand, as evidenced by the second respondent's letter, constitutes an act of insolvency. The respondents' arguments regarding authority and responsibility for the debt are unsubstantiated and contradicted by the facts. The requirements of section 10 of the Insolvency Act are satisfied on the balance of probabilities. Therefore, a provisional order of sequestration is warranted.

Court Disposition

Provisional sequestration of the Klaus en Laureen Trust granted.

Orders

  • The Klaus en Laureen Trust [Registration No: IT4023/2007] is placed under provisional sequestration in the hands of the Master of the High Court.
  • A rule nisi is issued calling upon the Trust and all interested parties to appear before the Court on 14 April 2010 to show cause why a final order of sequestration should not be granted.