Leopard's Lair Development Company (Pty) Ltd v V & V Consulting Engineers (Pty) Pty (21572/2007) [2009] ZAGPPHC 198 (3 June 2009)
- Citation
- [2009] ZAGPPHC 198
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- North Gauteng High Court, Pretoria
- Panel
- JCW van Rooyen
- Case number
- 21572/2007
More details
- Court
- North Gauteng High Court, Pretoria
- Panel
- JCW van Rooyen
- Case number
- 21572/2007
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that there were no reasonable prospects that another court would reach a different conclusion. The correspondence and circumstances indicated that a contractual relationship existed between the parties. The division of the claim was justified in light of the repeated acknowledgements of the R500,000, and the applicant failed to demonstrate a bona fide defence regarding this amount. The argument that less than R500,000 might be owing was unsupported by any bona fide defence. Accordingly, the application for leave to appeal was dismissed with costs.
Court disposition
Application for leave to appeal dismissed with costs.
Orders
- The application for leave to appeal is dismissed.
- The applicant is ordered to pay the costs of the application.
02
Material facts
Parties
Leopard's Lair Development Company (Pty) Ltd
Applicant Counsel: UN De WetV & V Consulting Engineers (Pty) Ltd
Respondent Counsel: WJ RoosAmounts and remedies
- Amount in Dispute (acknowledged): ZAR 500,000
03
Procedural history
Posture
Leave to Appeal / Application for Leave to Appeal
04
Questions and positions
Legal issues
- 01
Whether there are reasonable prospects that another court might reach a different conclusion regarding the existence of a contract.
- 02
Whether the correspondence referring to R500,000 constituted a binding contract.
- 03
Whether the claim was indivisible and the court was justified in referring only part of the claim to trial.
- 04
Whether the applicant demonstrated a bona fide defence as to the R500,000.
Party arguments
- Applicant
- The applicant argued that there were reasonable prospects of success on appeal because it could show a bona fide defence, namely that no contract existed and that the correspondence referencing R500,000 did not constitute a contract. The applicant further contended that the contract to be proved was the one pleaded, not mere promises to pay later. Additionally, the applicant submitted that the claim was indivisible and the court erred in referring only part of the claim to trial.
- Respondent
- The respondent maintained that the correspondence and circumstances clearly established a contractual relationship and that the division of the claim was reasonable given the acknowledgements made. The respondent argued that the applicant failed to show a bona fide defence regarding the R500,000, which was repeatedly acknowledged as owing, and that there was no reasonable prospect that another court would reach a different conclusion.
05
Court’s reasoning
Legal principles
- 01
Section 17(1) of the Superior Courts Act
Leave to appeal should only be granted if there are reasonable prospects that another court might come to a different conclusion.
- 02
Maharaj v Barclays National Bank Ltd 1976 (1) SA 418 (A)
A bona fide defence must be established to justify leave to appeal against summary judgment.
06
Ratio, limits and disposition
Ratio decidendi
The court found that there were no reasonable prospects that another court would reach a different conclusion. The correspondence and circumstances indicated that a contractual relationship existed between the parties. The division of the claim was justified in light of the repeated acknowledgements of the R500,000, and the applicant failed to demonstrate a bona fide defence regarding this amount. The argument that less than R500,000 might be owing was unsupported by any bona fide defence. Accordingly, the application for leave to appeal was dismissed with costs.
Obiter and limits
- The trial court remains in a position to determine whether more than R500,000 is owing, but the applicant's inability to show a bona fide defence as to the acknowledged amount is decisive.
- Repeated acknowledgements of debt in correspondence strengthen the inference of a contractual relationship.
Court disposition
Application for leave to appeal dismissed with costs.
- The application for leave to appeal is dismissed.
- The applicant is ordered to pay the costs of the application.
Source and reliance status
North Gauteng High Court, Pretoria
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
North Gauteng High Court, Pretoria
Judgment
IN
THE HIGH COURT OF SOUTH AFRICA
(NORTH GAUTENG HIGH COURT)
Dates: 25 May 2009, 3 June 2009
Case no.: 21572/2007
In the matter between:
LEOPARD’S
LAIR DEVELOPMENT
COMPANY (PTY) LTD Applicant
and
V & V CONSULTING ENGINEERS (PTY) LTD Respondent
JUDGMENT ON APPLICATION FOR LEAVE
TO APPEAL BY APPLICANT
Van Rooyen AJ
[1] An application for leave to appeal was filed against my judgment in favour of the Respondent in this matter.
[2] The main argument put forward by Mr De Wet on behalf of the applicant, was that I here were reasonable prospects that Applicant
would be able to show a bona fide defence in that there had never been a contract and that correspondence which referred to the R500 000 did not constitute such a contract. The contract which had to he proved was the contract as pleaded, not promises to pay later. Secondly he argued that the claim was indivisible and that the Court had not been justified in ordering that only a part of the claim should he referred to trial.
[3] I have considered the matter on the basis whether there are reasonable prospects that another court might tome to a different
conclusion. My conclusion is that there are no such reasonable prospects. The reasonable inference from the correspondence and the circumstances taken as a whole is that a contractual relationship existed. The division of the matter is reasonable in the light of the acknowledgements and there is no reason why a trial court could not be placed in a position to decide whether more than the R500 000 is owing. The core of the matter is that the Applicant was unable to show that there is u bona fide defence as to the R500 000. The amount of R500 000 was acknowledged lime and again. Any argument that the result of the trial could be that less than R500 000 is owing is not supported by a bona tide defence.
[4] The application for leave to appeal is dismissed with costs.
3 June 2009
JCW van Rooyen
Acting Judge of the High Court
For the Applicant : UN De Wet instructed by Cilliers and Reynders Attorneys c/o Potgieter.
For the Respondent: WJ Roos instructed by Von Reiche Inc. Pretoria
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