MCG Express Proprietary Limited v South African Express Airways SOC Limited (12144/2019) [2019] ZAGPJHC 501 (9 December 2019)

MCG Express Proprietary Limited v South African Express Airways SOC Limited (12144/2019) [2019] ZAGPJHC 501 (9 December 2019)

The court found that the respondent's reliance on the arbitration clause was without merit, as no genuine dispute had been raised prior to litigation and the respondent had repeatedly acknowledged its indebtedness in correspondence. The arbitration clause did not bar the applicant from approaching the court, and the respondent failed to invoke the dispute resolution mechanism before proceedings commenced. The correspondence marked 'without prejudice' was admissible, as it did not relate to settlement of a dispute but constituted admissions of debt. However, the court determined that there was a genuine dispute of fact regarding the existence and terms of any oral agreement for the...

Citation
[2019] ZAGPJHC 501
Parties
Applicant: MCG Express Proprietary Limited; Respondent: South African Express Airways SOC Limited
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
9 December 2019
Case Number
12144/2019
Procedural Posture
Money Judgment Application / Opposed Motion; Referral to Trial
Outcome
Application referred to trial; costs reserved for determination by the trial court.
Judges
N. Skibi
Legal Topics
Lease Agreement, Arbitration Clause, Dispute of Fact, Admissibility of Evidence, Oral Agreement
Commercial and Corporate Civil Procedure Lease Agreement Arbitration Clause Dispute of Fact Admissibility of Evidence Oral Agreement

Case Brief

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Parties

MCG Express Proprietary Limited

Applicant

South African Express Airways SOC Limited

Respondent

Procedural Posture

Money Judgment Application / Opposed Motion; Referral to Trial

Legal Issues

  1. 1 Whether the respondent is liable to pay the amount claimed under the ad-hoc lease agreements.
  2. 2 Whether the High Court's jurisdiction is ousted by the arbitration clause in the lease agreements.
  3. 3 Whether correspondence marked 'without prejudice' is admissible as evidence of indebtedness.

Ratio Decidendi

The court found that the respondent's reliance on the arbitration clause was without merit, as no genuine dispute had been raised prior to litigation and the respondent had repeatedly acknowledged its indebtedness in correspondence. The arbitration clause did not bar the applicant from approaching the court, and the respondent failed to invoke the dispute resolution mechanism before proceedings commenced. The correspondence marked 'without prejudice' was admissible, as it did not relate to settlement of a dispute but constituted admissions of debt. However, the court determined that there was a genuine dispute of fact regarding the existence and terms of any oral agreement for the...

Court Disposition

Application referred to trial; costs reserved for determination by the trial court.

Orders

  • The application is referred to trial.
  • The notice of motion shall stand as a simple summons.