Mutero v Pikitup Johannesburg (SOC) Ltd (J713/21) [2021] ZALCJHB 373 (22 October 2021)

Mutero v Pikitup Johannesburg (SOC) Ltd (J713/21) [2021] ZALCJHB 373 (22 October 2021)

The court held that the applicant's claim for contractual damages is extinguished by prescription. Prescription began to run on 31 July 2017, the date of termination of the employment contract, as the debt became due and claimable at that time. The review proceedings did not interrupt prescription because no competent prayer for damages was made and the claim was not successfully prosecuted under that process. The Labour Appeal Court judgment in December 2018 was irrelevant to the running of prescription, as it related to the fairness of dismissal and not the contractual damages claim. Claims for leave pay prescribed after three years from termination. The court upheld the special plea of...

Citation
[2021] ZALCJHB 373
Parties
Applicant: Neighbour Edward Mutero; Respondent: Pikitup Johannesburg (SOC) Ltd
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
22 October 2021
Case Number
J713/21
Procedural Posture
Special Plea / Interlocutory Application on Prescription
Outcome
Special plea of prescription upheld; applicant's claims for contractual damages are extinguished by prescription.
Judges
Graham Nasious Moshoana
Legal Topics
Prescription Act, Contractual Damages, Section 77 3 Bcea, Employment Contract Termination
Civil Procedure Labour Law Prescription Act Contractual Damages Section 77 3 Bcea Employment Contract Termination

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Parties

Neighbour Edward Mutero

Applicant

Pikitup Johannesburg (SOC) Ltd

Respondent

Procedural Posture

Special Plea / Interlocutory Application on Prescription

Legal Issues

  1. 1 Whether the applicant's contractual damages claim is extinguished by prescription.
  2. 2 Whether the review application interrupted prescription under the Prescription Act.
  3. 3 When prescription began to run for the contractual damages claim.

Ratio Decidendi

The court held that the applicant's claim for contractual damages is extinguished by prescription. Prescription began to run on 31 July 2017, the date of termination of the employment contract, as the debt became due and claimable at that time. The review proceedings did not interrupt prescription because no competent prayer for damages was made and the claim was not successfully prosecuted under that process. The Labour Appeal Court judgment in December 2018 was irrelevant to the running of prescription, as it related to the fairness of dismissal and not the contractual damages claim. Claims for leave pay prescribed after three years from termination. The court upheld the special plea of...

Court Disposition

Special plea of prescription upheld; applicant's claims for contractual damages are extinguished by prescription.

Orders

  • The special plea of prescription is upheld. The claims for contractual damages are extinguished by prescription.
  • The applicant must pay the costs of the opposition of the special plea.