Mighty Solutions CC t/a Orlando Service Station v Engen Petroleum Ltd and Another (CCT211/14) [2015] ZACC 34; 2016 (1) SA 621 (CC); 2016 (1) BCLR 28 (CC) (19 November 2015)

Mighty Solutions CC t/a Orlando Service Station v Engen Petroleum Ltd and Another (CCT211/14) [2015] ZACC 34; 2016 (1) SA 621 (CC); 2016 (1) BCLR 28 (CC) (19 November 2015)

The Constitutional Court held that under South African common law, a lessee or sub-lessee may not dispute the lessor's title as a defence to eviction after the valid termination of the lease. The rule is entrenched as a natural incident of lease contracts and does not offend constitutional values or require...

Source-derived case information.

Citation
[2015] ZACC 34
Parties
Applicant: Mighty Solutions CC t/a Orlando Service Station; Respondent: Engen Petroleum Limited; Respondent: Controller of Petroleum Products
Court
Constitutional Court
Jurisdiction
South Africa
Judgment Date
19 November 2015
Case Number
CCT211/14
Procedural Posture
Leave to Appeal / Application for Leave to Appeal to the Constitutional Court After Dismissal by the Supreme Court of Appeal.
Outcome
Leave to appeal refused; costs awarded against the applicant.
Judges
Mogoeng, Moseneke, Cameron, Jafta, Khampepe, Madlanga, Matojane, Nkabinde, Van der Westhuizen, Wallis, Zondo
Legal Topics
Eviction, Common Law Lease Principles, Standing to Evict, Development of Common Law, Possessory Rights, Enrichment Lien
Commercial and Corporate Land and Property Civil Procedure Eviction Common Law Lease Principles Standing to Evict Development of Common Law Possessory Rights +1 more

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Summary, issues, holding and outcome

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Parties

Mighty Solutions CC t/a Orlando Service Station

Applicant

Engen Petroleum Limited

Respondent

Controller of Petroleum Products

Respondent

Procedural Posture

Leave to Appeal / Application for Leave to Appeal to the Constitutional Court After Dismissal by the Supreme Court of Appeal.

Legal Issues

  1. 1 Whether a sub-lessee may raise the sub-lessor's lack of title as a defence to eviction proceedings.
  2. 2 Whether the common law rule preventing a lessee from disputing the lessor's title should be developed in light of constitutional values.
  3. 3 Whether Mighty Solutions acquired possessory rights under the Petroleum Products Act or an enrichment lien entitling it to remain in occupation.

Ratio Decidendi

The Constitutional Court held that under South African common law, a lessee or sub-lessee may not dispute the lessor's title as a defence to eviction after the valid termination of the lease. The rule is entrenched as a natural incident of lease contracts and does not offend constitutional values or require development in this commercial context. Mighty Solutions failed to establish any independent title or possessory right under statute or enrichment lien. The enrichment argument was not properly raised before the lower courts and could not be entertained for the first time on appeal. The application for leave to appeal bore no prospects of success and was dismissed. Costs were awarded...

Court Disposition

Leave to appeal refused; costs awarded against the applicant.

Orders

  • Condonation for the late filing of the statement of facts and record is granted.
  • Leave to appeal is refused.