Maqhawe Construction CC v O.R Tambo District Municipality (1946/09) [2018] ZAECMHC 62 (20 November 2018)

Maqhawe Construction CC v O.R Tambo District Municipality (1946/09) [2018] ZAECMHC 62 (20 November 2018)

The court found that the tender contract was awarded to the joint venture comprising Maqhawe Construction CC and Kwakhiwe Construction CC, not to Maqhawe Construction CC individually. The contract stipulated that any alteration to its terms must be in writing, and no written agreement evidencing novation was produced. Payments made to Maqhawe Construction CC were pursuant to deeds of cession and did not constitute a novation or substitution of the joint venture. The evidence did not establish that the defendant authorised Maqhawe Construction CC to take over the obligations of the joint venture or that the contract was novated. Consequently, Maqhawe Construction CC lacked locus standi to...

Citation
[2018] ZAECMHC 62
Parties
Plaintiff: Maqhawe Construction CC; Defendant: O.R Tambo District Municipality
Court
Eastern Cape High Court, Mthatha
Jurisdiction
South Africa
Judgment Date
20 November 2018
Case Number
1946/09
Procedural Posture
Civil Trial / Special Plea on Locus Standi
Outcome
Special plea of lack of locus standi upheld; plaintiff's claim dismissed with costs.
Judges
Z. M. Nhlangulela
Legal Topics
Locus Standi, Novation, Joint Venture Contract, Contractual Damages
Civil Procedure Commercial and Corporate Locus Standi Novation Joint Venture Contract Contractual Damages

Case Brief

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Parties

Maqhawe Construction CC

Plaintiff

O.R Tambo District Municipality

Defendant

Procedural Posture

Civil Trial / Special Plea on Locus Standi

Legal Issues

  1. 1 Whether Maqhawe Construction CC has locus standi to sue the defendant on the tender contract.
  2. 2 Whether the tender contract was novated to permit Maqhawe Construction CC to claim directly against the defendant.
  3. 3 Whether payments made to Maqhawe Construction CC constituted a novation of the original contractual obligations.

Ratio Decidendi

The court found that the tender contract was awarded to the joint venture comprising Maqhawe Construction CC and Kwakhiwe Construction CC, not to Maqhawe Construction CC individually. The contract stipulated that any alteration to its terms must be in writing, and no written agreement evidencing novation was produced. Payments made to Maqhawe Construction CC were pursuant to deeds of cession and did not constitute a novation or substitution of the joint venture. The evidence did not establish that the defendant authorised Maqhawe Construction CC to take over the obligations of the joint venture or that the contract was novated. Consequently, Maqhawe Construction CC lacked locus standi to...

Court Disposition

Special plea of lack of locus standi upheld; plaintiff's claim dismissed with costs.

Orders

  • The defendant’s special plea is upheld with costs.