Mottel and Others v Altmarr Properties and Others (19749/12) [2013] ZAWCHC 115 (20 June 2013)

Mottel and Others v Altmarr Properties and Others (19749/12) [2013] ZAWCHC 115 (20 June 2013)

The court found that the scheme orchestrated by Skei, with the participation of the Hagans, preyed on economically vulnerable individuals by inducing them to sell their homes under the guise of debt consolidation. The sale and lease agreements, as well as the subsequent transfers, were held to be contrary to public policy, undermining the constitutional right to access to adequate housing. Furthermore, Skei's fraudulent misrepresentations induced the applicants to enter into the agreements in ignorance of their true nature and effect. The Hagans were not innocent purchasers, having knowingly participated in the scheme and received incentives. The contracts were declared void ab initio,...

Citation
[2013] ZAWCHC 115
Parties
Applicant: Willem Mottel; Applicant: Betta Mottel; Applicant: Calvin April; Applicant: Juliana April; Respondent: Altmarr Properties; Respondent: Marshall Skei; Respondent: James Jacobus Hagan; Respondent: Levona Theresa Hagan; Respondent: Standard Bank Limited; Respondent: ABSA Bank Limited; Respondent: Registrar of Deeds
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
20 June 2013
Case Number
19749/12
Procedural Posture
Review Application / Judgment After Opposed Application
Outcome
Application granted. Sale and lease agreements declared void ab initio. Properties to be restored to applicants. Costs awarded against first to fourth respondents.
Judges
KM Savage
Legal Topics
Alienation of Land Act, Public Policy, Fraudulent Misrepresentation, Rei Vindicatio, Unjust Enrichment, Mortgage Bond Enforcement
Land and Property Commercial and Corporate Civil Procedure Alienation of Land Act Public Policy Fraudulent Misrepresentation Rei Vindicatio Unjust Enrichment +1 more

Case Brief

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Parties

Willem Mottel

Applicant

Betta Mottel

Applicant

Calvin April

Applicant

Juliana April

Applicant

Altmarr Properties

Respondent

Marshall Skei

Respondent

James Jacobus Hagan

Respondent

Levona Theresa Hagan

Respondent

Standard Bank Limited

Respondent

ABSA Bank Limited

Respondent

Registrar of Deeds

Respondent

Procedural Posture

Review Application / Judgment After Opposed Application

Legal Issues

  1. 1 Whether the sale and lease agreements and subsequent transfers of immovable property are void ab initio due to being contrary to public policy.
  2. 2 Whether fraudulent misrepresentation induced the applicants to enter into the agreements.
  3. 3 Whether the applicants are entitled to restitution of their properties and the setting aside of the transfers.

Ratio Decidendi

The court found that the scheme orchestrated by Skei, with the participation of the Hagans, preyed on economically vulnerable individuals by inducing them to sell their homes under the guise of debt consolidation. The sale and lease agreements, as well as the subsequent transfers, were held to be contrary to public policy, undermining the constitutional right to access to adequate housing. Furthermore, Skei's fraudulent misrepresentations induced the applicants to enter into the agreements in ignorance of their true nature and effect. The Hagans were not innocent purchasers, having knowingly participated in the scheme and received incentives. The contracts were declared void ab initio,...

Court Disposition

Application granted. Sale and lease agreements declared void ab initio. Properties to be restored to applicants. Costs awarded against first to fourth respondents.

Orders

  • The sale agreement between the first and second applicants and the third and fourth respondents in respect of erf 4180 Kleinvlei, 23 Cupido Cloete East Street, Eersterivier, is declared void ab initio and set aside.
  • The sale agreement between the third and fourth applicants and the third and fourth respondents in respect of erf 2329 Macassar, 19 Swawel Road, Macassar, is declared void ab initio and set aside.