Masetlha v Subzero Construction And Project (GCC/03/2021) [2022] ZACONAF 25 (3 May 2022)
- Citation
- [2022] ZACONAF 25
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Consumer Affairs Court
- Panel
- Zandile Mpungose, M. Phukubje, P Samuels
- Case number
- GCC/03/2021
More details
- Court
- Consumer Affairs Court
- Panel
- Zandile Mpungose, M. Phukubje, P Samuels
- Case number
- GCC/03/2021
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the Respondent failed to comply with the terms of the settlement agreement, which had been confirmed and made an order of court. The Respondent's failure to pay the agreed refund constituted prohibited conduct under the Consumer Protection Act and an unfair business practice under the Consumer Affairs (Unfair Business Practices) Act. The absence of any explanation or participation by the Respondent further justified the enforcement of the settlement agreement. The court ordered the Respondent to pay the applicant the agreed amount, together with interest at the prescribed rate, within 20 days of the order.
Court disposition
Judgment granted in favour of the applicant. Settlement agreement enforced as a court order.
Orders
- The Respondent shall pay the applicant the amount of R12,600.00 within 20 days of this order.
- The Respondent shall pay interest on the amount of R12,600.00 at the prescribed rate from the date of this order until payment.
02
Material facts
Parties
Elsie Salome Masetlha
Applicant Counsel: Consumer ProtectorSubzero Construction And Project
RespondentAmounts and remedies
- Refund Amount Ordered: ZAR 12,600
03
Procedural history
Posture
Civil Application / Final Judgment
04
Questions and positions
Legal issues
- 01
Whether the Respondent engaged in prohibited conduct under the Consumer Protection Act, No 68 of 2008.
- 02
Whether the Respondent engaged in unfair business practices under the Consumer Affairs (Unfair Business Practices) Act, No 7 of 1996.
- 03
Whether the settlement agreement between the parties should be enforced as an order of court.
Party arguments
- Applicant
- The applicant, represented by the Consumer Protector, argued that the Respondent failed to honour the terms of the settlement agreement dated 9 March 2021, which required payment of R12,600.00 in three instalments as a refund for a deposit paid for paving installation. The applicant contended that the Respondent's conduct constituted prohibited conduct and unfair business practice under the relevant statutes, and sought enforcement of the settlement agreement as a court order.
- Respondent
- The Respondent did not attend the proceedings and did not provide any reasons for non-attendance. No argument was submitted on behalf of the Respondent.
05
Court’s reasoning
Legal principles
- 01
Consumer Protection Act, No 68 of 2008
Prohibited conduct under the Consumer Protection Act includes failure to honour contractual obligations and settlement agreements.
- 02
Consumer Affairs (Unfair Business Practices) Act, No 7 of 1996
Unfair business practices include conduct where a party fails to refund monies owed under a settlement agreement.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the Respondent failed to comply with the terms of the settlement agreement, which had been confirmed and made an order of court. The Respondent's failure to pay the agreed refund constituted prohibited conduct under the Consumer Protection Act and an unfair business practice under the Consumer Affairs (Unfair Business Practices) Act. The absence of any explanation or participation by the Respondent further justified the enforcement of the settlement agreement. The court ordered the Respondent to pay the applicant the agreed amount, together with interest at the prescribed rate, within 20 days of the order.
Obiter and limits
- The court noted the importance of compliance with settlement agreements to uphold consumer rights and maintain trust in dispute resolution processes.
- Non-attendance by respondents after proper notice undermines the effectiveness of consumer protection mechanisms.
Court disposition
Judgment granted in favour of the applicant. Settlement agreement enforced as a court order.
- The Respondent shall pay the applicant the amount of R12,600.00 within 20 days of this order.
- The Respondent shall pay interest on the amount of R12,600.00 at the prescribed rate from the date of this order until payment.
Source and reliance status
Consumer Affairs Court
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.
Consumer Affairs Court
Judgment
IN
THE CONSUMER AFFAIRS COURT FOR THE PROVINCE OF GAUTENG
HELD
AT JOHANNESBURG
CASE NO: GCC/03/2021
In the matter between:
ELSIE SALOME MASETLHA Complainant
and
SUBZERO CONSTRUCTION AND PROJECT Respondent
JUDGMENT
The matter was heard online through MS Teams on the 29th April 2022. The Complainant was represented by the Consumer Protector. The Respondent was not in attendance at the proceedings, despite prior notice of the scheduled Court sitting. The Respondent's reasons for non-attendance were not communicated to the Consumer Affairs Court and the Consumer Protector confirmed that the Respondent also did not furnish them with reasons for non- attendance.
The parties had entered into a settlement agreement on the 9th March 2021 in terms of which the Respondent was to pay the Complainant an amount of R12 600,00 (twelve thousand six hundred rands only) which was a refund of part of the moneys that had been paid by the Complainant as a deposit to the Respondent for installation of paving. The Respondent was meant to pay the Complainant in three instalments of R4 200,00 (four thousand two hundred rands only), but failed to honour the terms of the settlement.
The Settlement Agreement dated 09 March 2021 was thus confirmed by the Gauteng Consumer Affairs Court and was made an order of the Gauteng Consumer Affairs Court.
FINDING:
The Respondent engaged in prohibited conduct as defined in terms of section 1 of the Consumer Protection Act, No 68 of 2008, The Respondent engaged in an unfair business practice as defined in terms of section 1 of the Consumer Affairs (Unfair Business Practices) Act, No 7 of 1996.
IT IS HEREBY ORDERED THAT:
1. The Respondent shall pay the Complainant the amount of R12 600,00 (Twelve Thousand and Six Hundred Rands only) within 20 (twenty) days of this order.
2. The Respondent shall pay the Complainant interest on the amount of R12 600,00 (Twelve thousand and Six Hundred Rands Only) at the prescribed rate of interest, calculated from the date of this order to the date of payment.
ORDERED as such at JOHANNESBURG on 03 May 2022.
Zandile Mpungose
CHAIRPERSON (Alternate)
MEMBERS M. Phukubje and P Samuels concur
CASE NO: GCC/02/2022
TSHOKOLO EPHRAIM SEMATLA Complainant
And
GIANT
AUTO SPARES
therefore Respondent
The matter was heard online through MS Teams on the 29th of April 2022. The Complainant was represented by the Consumer Protector. The Respondent was not in attendance at the proceedings, despite prior notice of the scheduled Court sitting, which was served on 06 April 2022. The Respondent's reasons for non-attendance were not communicated to the Court and the Consumer Protector confirmed that the Respondent also did not furnish them with reasons for its non-attendance.
The parties had entered into a Settlement Agreement concluded on the 21st October 2021 in terms of which the Respondent was to pay the Complainant an amount of R2 000,00 (two thousand rands only) as a refund for moneys that had been paid by the Complainant in respect of purchasing and fitment of a vehicle bumper. The Respondent was required to pay the Complainant in four instalments of R500,OO (five hundred rands only), but failed to honour the terms of the said settlement.
The Consumer Protector requested that default judgment be granted against the Respondent. The Complainant was in attendance at the Court sitting and confirmed, under oath, that the moneys owed remain unpaid by the Respondent.
The Settlement Agreement concluded on the 21st October 2021 was thus confirmed by the Gauteng Consumer Affairs Court and was made an order of the Gauteng Consumer Affairs Court.
The Respondent engaged in prohibited conduct as defined in terms of section 1 of the Consumer Protection Act, No 68 of 2008.
The Respondent engaged in an unfair business practice as defined in terms of section 1 of the Consumer Affairs (Unfair Business Practices) Act, No 7 of 1996.
1. The Respondent shall pay the Plaintiff the amount of R2 000,00 (Two Thousand Rands only) within 20 (twenty) days of this order.
2. The Respondent shall pay the Complainant interest on the amount of R2 000,00 (Two Thousand Rands Only) at the prescribed rate of interest, calculated from the date of this order to the date of payment.
MEMBERS M. Phukubje and P Samuels concur.
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