London and Others v Department of Transport, Roads and Public Works, Northern Cape and Others (1035/2018) [2019] ZASCA 144 (30 October 2019)

London and Others v Department of Transport, Roads and Public Works, Northern Cape and Others (1035/2018) [2019] ZASCA 144 (30 October 2019)

The Supreme Court of Appeal held that the appellants' particulars of claim did not disclose a cause of action. The court found that the loss alleged by the appellants was not separate and distinct from the loss suffered by Canton Trading 159 (Pty) Ltd, and there was no allegation of a breach of a legal duty...

Source-derived case information.

Citation
[2019] ZASCA 144
Parties
Appellant: Frances Obakeng London; Appellant: Motsami Petrus Rantho; Appellant: Malebogo Louis Mokwena; Appellant: Nthabiseng Constance Kemane; Respondent: Department of Transport, Roads and Public Works, Northern Cape; Respondent: Premier of the Northern Cape; Respondent: Member of the Executive Council of the Northern Cape for Transport, Roads and Public Works
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
30 October 2019
Case Number
1035/2018
Procedural Posture
Civil Appeal / Appeal From Exception Upheld by High Court; Supreme Court of Appeal Judgment
Outcome
Appeal dismissed with costs; exception to particulars of claim upheld.
Judges
Petse, Cachalia, Tshiqi, Mokgohloa, Tsoka
Legal Topics
Pure Economic Loss, Shareholder Claims, Exception Procedure, Locus Standi, Non Joinder, Duty of Care
Delict Civil Procedure Commercial and Corporate Pure Economic Loss Shareholder Claims Exception Procedure Locus Standi Non Joinder +1 more

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Summary, issues, holding and outcome

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Parties

Frances Obakeng London

Appellant

Motsami Petrus Rantho

Appellant

Malebogo Louis Mokwena

Appellant

Nthabiseng Constance Kemane

Appellant

Department of Transport, Roads and Public Works, Northern Cape

Respondent

Premier of the Northern Cape

Respondent

Member of the Executive Council of the Northern Cape for Transport, Roads and Public Works

Respondent

Procedural Posture

Civil Appeal / Appeal From Exception Upheld by High Court; Supreme Court of Appeal Judgment

Legal Issues

  1. 1 Whether the appellants' particulars of claim disclose a cause of action against the respondents for pure economic loss as shareholders.
  2. 2 Whether the High Court was precluded from considering the exception due to res judicata or issue estoppel.
  3. 3 Whether the Department owed a legal duty to the appellants independently of its contractual duty to the company.

Ratio Decidendi

The Supreme Court of Appeal held that the appellants' particulars of claim did not disclose a cause of action. The court found that the loss alleged by the appellants was not separate and distinct from the loss suffered by Canton Trading 159 (Pty) Ltd, and there was no allegation of a breach of a legal duty independently owed to the shareholders by the Department. The contractual relationship and any duty arising from it existed between the Department and Canton, not the shareholders. The court further held that the High Court's earlier judgment had only determined locus standi and non-joinder, not the existence of a cause of action, so res judicata did not apply. Accordingly, the...

Court Disposition

Appeal dismissed with costs; exception to particulars of claim upheld.

Orders

  • The appeal is dismissed with costs.
  • The period of 20 days allowed by the High Court for the amendment of the plaintiffs’ particulars of claim, if so advised, will run from the date of this judgment.