Momentum Group v Dynasty Financia [2008] ZAGPHC 444; 70/08/01 (4 November 2008)

Momentum Group v Dynasty Financia [2008] ZAGPHC 444; 70/08/01 (4 November 2008)

The court held that the ongoing commission claimed by the defendant clearly relates to the historic situation governed by the written agreement between the parties, which was terminated. Clause 6.7 unambiguously bars any further commission or advice fees after termination, and the alleged oral agreement cannot revive rights extinguished by the written contract. The counterclaim based on cession of rights to ongoing commission is similarly unsustainable, as those rights ceased upon termination. The exception to the plea and counterclaim was therefore upheld.

Citation
[2008] ZAGPHC 444
Parties
Plaintiff: Momentum Group; Defendant: Dynasty Financia
Court
High Courts - Gauteng
Jurisdiction
South Africa
Judgment Date
4 November 2008
Case Number
4170/08
Procedural Posture
Civil Procedure / Exception to Plea and Counterclaim
Outcome
Exception upheld; allegations in paragraphs 11.1 to 11.7 of the defendants' plea and the second and third respondents' counterclaim are struck out.
Judges
Willis
Legal Topics
Contract Interpretation, Exception to Plea, Ongoing Commission, Cession of Rights
Commercial and Corporate Civil Procedure Contract Interpretation Exception to Plea Ongoing Commission Cession of Rights

Case Brief

Summary, issues, holding and outcome

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Parties

Momentum Group

Plaintiff

Dynasty Financia

Defendant

Procedural Posture

Civil Procedure / Exception to Plea and Counterclaim

Legal Issues

  1. 1 Whether clause 6.7 of the written agreement bars the defendant from claiming ongoing commission after termination of the agreement.
  2. 2 Whether the alleged oral agreement regarding ongoing commission is valid and enforceable in light of the written agreement.
  3. 3 Whether the counterclaim based on cession of rights to ongoing commission is sustainable given the termination of the written agreement.

Ratio Decidendi

The court held that the ongoing commission claimed by the defendant clearly relates to the historic situation governed by the written agreement between the parties, which was terminated. Clause 6.7 unambiguously bars any further commission or advice fees after termination, and the alleged oral agreement cannot revive rights extinguished by the written contract. The counterclaim based on cession of rights to ongoing commission is similarly unsustainable, as those rights ceased upon termination. The exception to the plea and counterclaim was therefore upheld.

Court Disposition

Exception upheld; allegations in paragraphs 11.1 to 11.7 of the defendants' plea and the second and third respondents' counterclaim are struck out.

Orders

  • The exception is upheld.
  • The allegations in paragraph 11.1 to 11.7 of the defendants' plea are struck out.