Mercedes Benz South Africa v Buffalo City Municipality (EL1123/2011, ECD1956/2011) [2015] ZAECELLC 17 (11 December 2015)

Mercedes Benz South Africa v Buffalo City Municipality (EL1123/2011, ECD1956/2011) [2015] ZAECELLC 17 (11 December 2015)

The court found that the defendant breached the contract by allowing the supply of electricity to exceed the agreed voltage parameters for a sustained period, which directly caused damage to the plaintiff's equipment and consequential losses. The evidence established that the over-voltage endured for hours, far exceeding the ten-minute allowance in the contract, and that the damage was not caused by any event specifically listed in the protective measures clauses. The court accepted the expert evidence that the capacitor banks were not in operation and that the abnormal over-voltage was unprecedented. The obligation on the plaintiff to take 'adequate measures' did not extend to...

Citation
[2015] ZAECELLC 17
Parties
Plaintiff: Mercedes Benz South Africa; Defendant: Buffalo City Municipality
Court
Eastern Cape High Court, East London Local Court
Jurisdiction
South Africa
Judgment Date
11 December 2015
Case Number
EL1123/2011
Procedural Posture
Civil Trial / Liability Separated and Determined; Damages to Be Proved in Due Course
Outcome
Defendant found liable for damages caused by over-supply of voltage; quantum of damages to be determined in due course.
Judges
Pickering
Legal Topics
Breach of Contract, Supply of Electricity, Causation, Remoteness of Damage, Contractual Interpretation, Protective Measures
Commercial and Corporate Land and Property Delict Breach of Contract Supply of Electricity Causation Remoteness of Damage Contractual Interpretation +1 more

Case Brief

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Parties

Mercedes Benz South Africa

Plaintiff

Buffalo City Municipality

Defendant

Procedural Posture

Civil Trial / Liability Separated and Determined; Damages to Be Proved in Due Course

Legal Issues

  1. 1 Whether the defendant breached the agreement by supplying electricity outside the stipulated voltage parameters for longer than ten minutes.
  2. 2 Whether the breach caused damage to the plaintiff's equipment and consequential losses.
  3. 3 Whether the plaintiff was required to take additional protective measures under the contract and if failure to do so affects liability.

Ratio Decidendi

The court found that the defendant breached the contract by allowing the supply of electricity to exceed the agreed voltage parameters for a sustained period, which directly caused damage to the plaintiff's equipment and consequential losses. The evidence established that the over-voltage endured for hours, far exceeding the ten-minute allowance in the contract, and that the damage was not caused by any event specifically listed in the protective measures clauses. The court accepted the expert evidence that the capacitor banks were not in operation and that the abnormal over-voltage was unprecedented. The obligation on the plaintiff to take 'adequate measures' did not extend to...

Court Disposition

Defendant found liable for damages caused by over-supply of voltage; quantum of damages to be determined in due course.

Orders

  • It is declared that defendant is liable to plaintiff for such damages as plaintiff may in due course prove it has suffered in consequence of the over supply of voltage to it by defendant on 26 September 2009.
  • Defendant is ordered to pay the costs of the action to date, such costs to include the qualifying expenses of Mr Ansell and the cost of two counsel.