MultiChoice Support Services (Pty) Ltd v Calvin Electronics t/a Batavia Trading and Another (296/2020; 226/2021) [2021] ZASCA 143 (8 October 2021)

MultiChoice Support Services (Pty) Ltd v Calvin Electronics t/a Batavia Trading and Another (296/2020; 226/2021) [2021] ZASCA 143 (8 October 2021)

The Supreme Court of Appeal held that the cancellation of the agency and installer agreements by MultiChoice was a contractual right exercised in terms of clear provisions allowing termination at its sole discretion for any reason. Such cancellation did not constitute administrative action and was not subject to judicial review under PAJA or the principle of legality. The interdict granted to Calvin, which restored access to MultiChoice's systems pending review, was legally unsustainable as it nullified MultiChoice's contractual remedies and amended the agreements contrary to their terms. The contempt order against MultiChoice was also unsustainable, as Calvin failed to prove...

Citation
[2021] ZASCA 143
Parties
Appellant: MultiChoice Support Services (Pty) Ltd; Respondent: Calvin Electronics t/a Batavia Trading; Respondent: Mudumela Calvin Thitovhelwi
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
8 October 2021
Case Number
296/2020; 226/2021
Procedural Posture
Civil Appeal / Appeal From Limpopo Division of the High Court, Polokwane
Outcome
Appeal upheld; high court orders set aside and replaced with dismissal of Calvin's applications with punitive costs.
Judges
Mbha, Schippers, Potterill, Phatshoane, Molefe
Legal Topics
Contract Cancellation, Interdicts, Contempt of Court, Execution of Orders, Reviewability of Private Contracts
Commercial and Corporate Civil Procedure Contract Cancellation Interdicts Contempt of Court Execution of Orders Reviewability of Private Contracts

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 14 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

MultiChoice Support Services (Pty) Ltd

Appellant

Calvin Electronics t/a Batavia Trading

Respondent

Mudumela Calvin Thitovhelwi

Respondent

Procedural Posture

Civil Appeal / Appeal From Limpopo Division of the High Court, Polokwane

Legal Issues

  1. 1 Whether the cancellation of private contracts by MultiChoice was subject to judicial review as administrative action.
  2. 2 Whether the interdict granted to Calvin to restore access to MultiChoice's systems was legally sustainable.
  3. 3 Whether MultiChoice was in contempt of the Makgoba JP order.

Ratio Decidendi

The Supreme Court of Appeal held that the cancellation of the agency and installer agreements by MultiChoice was a contractual right exercised in terms of clear provisions allowing termination at its sole discretion for any reason. Such cancellation did not constitute administrative action and was not subject to judicial review under PAJA or the principle of legality. The interdict granted to Calvin, which restored access to MultiChoice's systems pending review, was legally unsustainable as it nullified MultiChoice's contractual remedies and amended the agreements contrary to their terms. The contempt order against MultiChoice was also unsustainable, as Calvin failed to prove...

Court Disposition

Appeal upheld; high court orders set aside and replaced with dismissal of Calvin's applications with punitive costs.

Orders

  • The appeal under case no 226/2021 is upheld with costs on the attorney and client scale, including costs of two counsel.
  • The order of the high court is set aside and replaced with: 'The application is dismissed with costs on the scale as between attorney and client, including the costs of two counsel, where so employed.'