National Scrap Metal v Murray & Roberts (809/2011) [2012] ZASCA 47; 2012 (5) SA 300 (SCA) (29 March 2012)

National Scrap Metal v Murray & Roberts (809/2011) [2012] ZASCA 47; 2012 (5) SA 300 (SCA) (29 March 2012)

The Supreme Court of Appeal held that the appellants' allegations regarding the oral lease agreement could not be rejected on the papers as palpably false or untenable. The court found that there was a genuine and bona fide dispute of fact concerning the existence and authority for the oral lease, and that the respondents failed to provide sufficient evidence to demonstrate Noonan's lack of authority or the improbability of the agreement. The court emphasized that in motion proceedings, disputed facts must be accepted unless they are so far-fetched as to be rejected without oral evidence, a stringent test not met in this case. The appeal was upheld, the eviction order set aside, and the...

Citation
[2012] ZASCA 47
Parties
Appellant: National Scrap Metal (Cape Town) (Pty) Ltd; Appellant: Murec Crushing and Milling (Pty) Ltd; Respondent: Murray & Roberts Ltd; Respondent: Murray & Roberts Steel (Pty) Ltd; Respondent: Cape Town Iron and Steel Works (Pty) Ltd
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
29 March 2012
Case Number
809/2011
Procedural Posture
Civil Appeal / Appeal From Western Cape High Court Eviction Order
Outcome
Appeal upheld; eviction order set aside; application dismissed; costs awarded to appellants.
Judges
Mthiyane, Cloete, Leach, Tshiqi, Wallis
Legal Topics
Eviction, Oral Lease Agreement, Authority of Agent, Motion Proceedings, Disputed Facts, Costs Award
Land and Property Civil Procedure Commercial and Corporate Eviction Oral Lease Agreement Authority of Agent Motion Proceedings Disputed Facts +1 more

Case Brief

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Parties

National Scrap Metal (Cape Town) (Pty) Ltd

Appellant

Murec Crushing and Milling (Pty) Ltd

Appellant

Murray & Roberts Ltd

Respondent

Murray & Roberts Steel (Pty) Ltd

Respondent

Cape Town Iron and Steel Works (Pty) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From Western Cape High Court Eviction Order

Legal Issues

  1. 1 Whether disputed allegations of fact regarding the existence of an oral lease agreement could be rejected on the papers.
  2. 2 Whether Noonan had authority to bind Murray & Roberts to a ten-year lease.
  3. 3 Whether the appellants' version was so improbable as to be rejected without oral evidence.

Ratio Decidendi

The Supreme Court of Appeal held that the appellants' allegations regarding the oral lease agreement could not be rejected on the papers as palpably false or untenable. The court found that there was a genuine and bona fide dispute of fact concerning the existence and authority for the oral lease, and that the respondents failed to provide sufficient evidence to demonstrate Noonan's lack of authority or the improbability of the agreement. The court emphasized that in motion proceedings, disputed facts must be accepted unless they are so far-fetched as to be rejected without oral evidence, a stringent test not met in this case. The appeal was upheld, the eviction order set aside, and the...

Court Disposition

Appeal upheld; eviction order set aside; application dismissed; costs awarded to appellants.

Orders

  • The appeal succeeds, and the order of the high court is set aside and replaced with: (a) The application is dismissed. (b) The applicants are to pay the respondents' costs, jointly and severally, the one paying the others to be absolved. (c) The respondents are to pay the applicant's costs of the interlocutory...
  • The respondents are to pay the appellants' costs of the appeal, including the costs of two counsel, jointly and severally, the one paying the others to be absolved.