Mamli Projects Corporation v Ekurhuleni Metropolitan Municipality (011751/17) [2018] ZAGPJHC 85 (2 February 2018)

Mamli Projects Corporation v Ekurhuleni Metropolitan Municipality (011751/17) [2018] ZAGPJHC 85 (2 February 2018)

The court found that the principal agent did not exceed its mandate in issuing payment certificates 19 and 20. The amounts claimed were predetermined and agreed upon, and there was no requirement for further approval from the respondent regarding the valuation of the Community Liaison Officer and Security Adjustments. The respondent's defence based on lack of authority was rejected, as the contract provided for payment upon certification and for default interest in case of delayed payment. The applicant was entitled to judgment for the certified amounts and contractual interest as stipulated in the agreement.

Citation
[2018] ZAGPJHC 85
Parties
Applicant: Mamli Projects Corporation; Respondent: Ekurhuleni Metropolitan Municipality
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
2 February 2018
Case Number
011751/17
Procedural Posture
Civil Application / Judgment
Outcome
Judgment entered in favour of the applicant.
Judges
E Molahlehi
Legal Topics
Specific Performance, Contractual Interest, Payment Certificates, Principal Agent Authority
Commercial and Corporate Civil Procedure Specific Performance Contractual Interest Payment Certificates Principal Agent Authority

Case Brief

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Parties

Mamli Projects Corporation

Applicant

Ekurhuleni Metropolitan Municipality

Respondent

Procedural Posture

Civil Application / Judgment

Legal Issues

  1. 1 Whether the respondent is liable to pay the amounts certified in payment certificates 19 and 20.
  2. 2 Whether the principal agent exceeded its mandate in issuing the payment certificates without prior approval from the respondent.
  3. 3 Whether the applicant is entitled to contractual interest as claimed.

Ratio Decidendi

The court found that the principal agent did not exceed its mandate in issuing payment certificates 19 and 20. The amounts claimed were predetermined and agreed upon, and there was no requirement for further approval from the respondent regarding the valuation of the Community Liaison Officer and Security Adjustments. The respondent's defence based on lack of authority was rejected, as the contract provided for payment upon certification and for default interest in case of delayed payment. The applicant was entitled to judgment for the certified amounts and contractual interest as stipulated in the agreement.

Court Disposition

Judgment entered in favour of the applicant.

Orders

  • The respondent is ordered to pay the applicant R283,214.75 in terms of certificate number 19 issued on 4 April 2016.
  • The respondent is ordered to pay the applicant R121,668.46 in terms of certificate number 20 issued on 14 April 2016.