Malilang and Others v MV Houda Pearl (84/86) [1986] ZASCA 76; [1986] 2 All SA 579 (A) (19 June 1986)

Malilang and Others v MV Houda Pearl (84/86) [1986] ZASCA 76; [1986] 2 All SA 579 (A) (19 June 1986)

The Supreme Court of Appeal held that South African Admiralty Courts must follow the established English admiralty law as it existed in 1890, which required judgments to be expressed in local currency (rand, substituting for sterling). The Court declined to follow the Miliangos decision, which permitted judgments in foreign currency, as it represented a radical change not applicable to the law administered in 1890. The breach-date rule, which would normally require conversion at the date the debt arose, could not be practically applied due to the lack of monthly breakdowns and the complexity of multiple conversions. Therefore, the Court determined that the agreed lump sum for each...

Citation
[1986] ZASCA 76
Parties
Appellant: Roberto R Malilang; Appellant: Rodolfo B Valdecantos; Appellant: Anton A Asaula; Respondent: MV Houda Pearl
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
19 June 1986
Case Number
84/86
Procedural Posture
Admiralty Appeal / Appeal From Judgment of Natal Provincial Division Sitting as a Court of Admiralty
Outcome
Appeal upheld. Judgment for the appellants to be expressed in rand, with conversion from US dollars at the exchange rate on 15 March 1980.
Judges
Corbett, Miller, Botha, Hefer, Nicholas
Legal Topics
Wages of Seamen, Foreign Currency Judgments, Breach Date Rule
Admiralty and Maritime Wages of Seamen Foreign Currency Judgments Breach Date Rule

Case Brief

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Parties

Roberto R Malilang

Appellant

Rodolfo B Valdecantos

Appellant

Anton A Asaula

Appellant

MV Houda Pearl

Respondent

Procedural Posture

Admiralty Appeal / Appeal From Judgment of Natal Provincial Division Sitting as a Court of Admiralty

Legal Issues

  1. 1 Whether a South African Admiralty Court may grant judgment for payment in foreign currency or must express the award in rand.
  2. 2 If conversion to rand is required, what date should be used for the currency conversion.
  3. 3 Who is responsible for determining the applicable exchange rate for conversion.

Ratio Decidendi

The Supreme Court of Appeal held that South African Admiralty Courts must follow the established English admiralty law as it existed in 1890, which required judgments to be expressed in local currency (rand, substituting for sterling). The Court declined to follow the Miliangos decision, which permitted judgments in foreign currency, as it represented a radical change not applicable to the law administered in 1890. The breach-date rule, which would normally require conversion at the date the debt arose, could not be practically applied due to the lack of monthly breakdowns and the complexity of multiple conversions. Therefore, the Court determined that the agreed lump sum for each...

Court Disposition

Appeal upheld. Judgment for the appellants to be expressed in rand, with conversion from US dollars at the exchange rate on 15 March 1980.

Orders

  • Judgment for the appellants in rand, calculated by converting the agreed US dollar amounts at the exchange rate prevailing on 15 March 1980.
  • Costs awarded to the appellants.