Mwelase Korffie (Pty) Ltd v Free State Development Corporation (5020/2022) [2025] ZAFSHC 123 (11 April 2025)

Mwelase Korffie (Pty) Ltd v Free State Development Corporation (5020/2022) [2025] ZAFSHC 123 (11 April 2025)

The court found that the plaintiff's claim for retainer fees became due in August 2016, when the plaintiff was substituted and ceased providing services. The agreement, properly interpreted using the unitary approach and considering the parties' conduct, provided for monthly retainer fees to be paid upon submission of invoices or progress reports. The plaintiff failed to issue invoices for several months and did not take steps to enforce its rights timeously. Prescription commenced running from the date the debt became due, and the plaintiff could not postpone prescription by its own inaction. The defendant's acknowledgment of liability for R1.8 million in its books occurred after the...

Citation
[2025] ZAFSHC 123
Parties
Plaintiff: Mwelase Korffie (Pty) Ltd; Defendant: Free State Development Corporation
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
11 April 2025
Case Number
5020/2022
Procedural Posture
Civil Trial / Final Judgment
Outcome
Plaintiff partially successful; judgment for R1.8 million plus interest and costs.
Judges
JP Daffue
Legal Topics
Prescription Act, Consultancy Agreement, Retainer Fees, Interruption of Prescription, Contractual Interpretation
Commercial and Corporate Civil Procedure Prescription Act Consultancy Agreement Retainer Fees Interruption of Prescription Contractual Interpretation

Case Brief

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Parties

Mwelase Korffie (Pty) Ltd

Plaintiff

Free State Development Corporation

Defendant

Procedural Posture

Civil Trial / Final Judgment

Legal Issues

  1. 1 When did the debt under the consultancy agreement become due and claimable by the plaintiff.
  2. 2 Did the defendant's conduct or admissions interrupt prescription under section 14 of the Prescription Act.
  3. 3 Can a prescribed debt be revived by subsequent admission of liability under section 10 of the Prescription Act.

Ratio Decidendi

The court found that the plaintiff's claim for retainer fees became due in August 2016, when the plaintiff was substituted and ceased providing services. The agreement, properly interpreted using the unitary approach and considering the parties' conduct, provided for monthly retainer fees to be paid upon submission of invoices or progress reports. The plaintiff failed to issue invoices for several months and did not take steps to enforce its rights timeously. Prescription commenced running from the date the debt became due, and the plaintiff could not postpone prescription by its own inaction. The defendant's acknowledgment of liability for R1.8 million in its books occurred after the...

Court Disposition

Plaintiff partially successful; judgment for R1.8 million plus interest and costs.

Orders

  • Defendant to pay the plaintiff R1.8 million.
  • Defendant to pay interest on R1.8 million a tempore morae from date of service of summons until date of final payment.