Msizi and Another v Watt Energy (RF) (Pty) Ltd and Others (1036/15) [2015] ZAECGHC 19 (16 March 2015)

Msizi and Another v Watt Energy (RF) (Pty) Ltd and Others (1036/15) [2015] ZAECGHC 19 (16 March 2015)

The court found that section 49(1) of the Administration of Estates Act did not apply to the child’s share purchase agreement, as Msizi purchased the rights from the Taskinens in her personal capacity and not from the estate. No property left the estate and no consideration was paid to it, so the conflict of interest regulated by section 49 did not arise. As the agreement was valid, the Taskinens no longer had any right to inherit property from the deceased estate, including shares in Watt Energy. Consequently, they lacked the legal interest required to intervene as respondents in the winding-up applications. The application to intervene was dismissed with costs.

Citation
[2015] ZAECGHC 19
Parties
Applicant: Nomthandazo Florence Msizi; Applicant: Litha Lenin Msizi; Respondent: Watt Energy (RF) (Pty) Ltd; Respondent: Mark Scheepers; Intervening Party: Petrus Mikael Taskinen; Intervening Party: Paulina Monica Taskinen; Applicant: Cennergi (Pty) Ltd; Applicant: Tsitsikamma Community Wind Farm (RF) (Pty) Ltd
Court
Eastern Cape High Court, Grahamstown
Jurisdiction
South Africa
Judgment Date
16 March 2015
Case Number
1036/15
Procedural Posture
Urgent Application / Application to Intervene and Costs Determination
Outcome
The Taskinens’ application to intervene was dismissed with costs, including wasted costs in the Cennergi matter on specified dates, and certain costs were reserved to be costs in the cause.
Judges
C Plasket
Legal Topics
Intervention Application, Standing, Administration of Estates Act, Costs Order
Civil Procedure Intervention Application Standing Administration of Estates Act Costs Order

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Parties

Nomthandazo Florence Msizi

Applicant

Litha Lenin Msizi

Applicant

Watt Energy (RF) (Pty) Ltd

Respondent

Mark Scheepers

Respondent

Petrus Mikael Taskinen

Intervening Party

Paulina Monica Taskinen

Intervening Party

Cennergi (Pty) Ltd

Applicant

Tsitsikamma Community Wind Farm (RF) (Pty) Ltd

Applicant

Procedural Posture

Urgent Application / Application to Intervene and Costs Determination

Legal Issues

  1. 1 Whether the Taskinens have standing to intervene as respondents in the winding-up applications.
  2. 2 Whether the child’s share purchase agreement is invalid for non-compliance with section 49(1) of the Administration of Estates Act.
  3. 3 Whether the Taskinens retain any legal interest in Watt Energy that could be prejudicially affected by the judgment.

Ratio Decidendi

The court found that section 49(1) of the Administration of Estates Act did not apply to the child’s share purchase agreement, as Msizi purchased the rights from the Taskinens in her personal capacity and not from the estate. No property left the estate and no consideration was paid to it, so the conflict of interest regulated by section 49 did not arise. As the agreement was valid, the Taskinens no longer had any right to inherit property from the deceased estate, including shares in Watt Energy. Consequently, they lacked the legal interest required to intervene as respondents in the winding-up applications. The application to intervene was dismissed with costs.

Court Disposition

The Taskinens’ application to intervene was dismissed with costs, including wasted costs in the Cennergi matter on specified dates, and certain costs were reserved to be costs in the cause.

Orders

  • The Taskinens’ application to intervene is dismissed with costs, including the wasted costs in the Cennergi matter on 3 February 2015 and 13 February 2015.
  • The Taskinens’ liability for costs in respect of the postponement of the Cennergi matter on 4 December 2014 and of the Msizi matter on 11 December 2014 shall be costs in the cause.