National Stadium South Africa (Pty) Ltd an Others v Firstrand Bank Ltd (2011 (2) SA 157 (SCA); [2011] 3 All SA 29 (SCA)) [2010] ZASCA 164; 670/10 (1 December 2010)

National Stadium South Africa (Pty) Ltd an Others v Firstrand Bank Ltd (2011 (2) SA 157 (SCA); [2011] 3 All SA 29 (SCA)) [2010] ZASCA 164; 670/10 (1 December 2010)

The Supreme Court of Appeal held that the naming rights over the stadium, as registered in favour of Firstrand Bank by personal servitude, constitute a real right enforceable against third parties, including successors in title such as the City and stadium managers. The servitude restricts the owner's right to name the stadium and entitles the Bank to erect naming boards and exclusively use the name 'FNB Stadium' for the duration specified in the servitude agreement. The court rejected the managers' argument that the servitude was void or extinguished by the demolition and reconstruction of the stadium, finding that the servitude agreement and registration contemplated the reconstructed...

Citation
[2010] ZASCA 164
Parties
Appellant: National Stadium South Africa (Pty) Limited; Appellant: Stadium Management South Africa (Pty) Limited; Appellant: City of Johannesburg; Respondent: Firstrand Bank Limited
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
1 December 2010
Case Number
670/10
Procedural Posture
Civil Appeal / Appeal From South Gauteng High Court (johannesburg)
Outcome
Appeal upheld to the extent of amending the order; otherwise dismissed with costs, including costs of two counsel, to be borne by the appellants jointly and severally.
Judges
Harms, Maya, Bertelsmann
Legal Topics
Personal Servitude, Naming Rights, Real Vs Personal Rights, Registration of Servitude, Contractual Obligations, Interdict
Land and Property Commercial and Corporate Personal Servitude Naming Rights Real Vs Personal Rights Registration of Servitude Contractual Obligations Interdict

Case Brief

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Parties

National Stadium South Africa (Pty) Limited

Appellant

Stadium Management South Africa (Pty) Limited

Appellant

City of Johannesburg

Appellant

Firstrand Bank Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From South Gauteng High Court (johannesburg)

Legal Issues

  1. 1 Whether the naming rights over the stadium constitute a real right enforceable against third parties or a personal right arising from contract.
  2. 2 Whether the servitude registered in favour of Firstrand Bank is valid and binds successors in title, including the City and stadium managers.
  3. 3 Whether the destruction and reconstruction of the stadium extinguished the servitude or whether it applies to the new stadium.

Ratio Decidendi

The Supreme Court of Appeal held that the naming rights over the stadium, as registered in favour of Firstrand Bank by personal servitude, constitute a real right enforceable against third parties, including successors in title such as the City and stadium managers. The servitude restricts the owner's right to name the stadium and entitles the Bank to erect naming boards and exclusively use the name 'FNB Stadium' for the duration specified in the servitude agreement. The court rejected the managers' argument that the servitude was void or extinguished by the demolition and reconstruction of the stadium, finding that the servitude agreement and registration contemplated the reconstructed...

Court Disposition

Appeal upheld to the extent of amending the order; otherwise dismissed with costs, including costs of two counsel, to be borne by the appellants jointly and severally.

Orders

  • Paragraphs 2 and 3 of the order of the court below are amended as follows: Until the lapse of the Applicant's servitude rights as set out in the Notarial Deed of Servitude 2529/08 and registered by the Registrar of Deeds, Pretoria, the First, Second and Fourth Respondents are interdicted from naming the soccer...
  • The First, Second and Fourth Respondents are interdicted from purporting to sell or dispose of the right to name the stadium during the period.