Nedbank Ltd v CBR Engineering CC and Others (4131/2013) [2017] ZAFSHC 239 (20 December 2017)

Nedbank Ltd v CBR Engineering CC and Others (4131/2013) [2017] ZAFSHC 239 (20 December 2017)

The court held that the enrichment claim, as pleaded in the amended particulars of claim, is unliquidated and not governed by any agreement as to interest or the date from which interest should run. Section 2A(2)(a) of the Prescribed Rate of Interest Act, 55 of 1975, applies, which provides that interest on an unliquidated debt runs from the date of demand or summons, whichever is earlier. In this case, the plaintiff only placed the defendants in mora on 15 June 2016, when the claim for enrichment was incorporated into the particulars of claim. The court rejected the plaintiff's argument that interest should run from the date of the loan, finding that the amendment did not create a new...

Citation
[2017] ZAFSHC 239
Parties
Plaintiff: Nedbank Ltd; Defendant: CBR Engineering CC; Defendant: CA Minnie (SNR); Defendant: CA Minnie (JNR); Defendant: Hester Cornelia Hendrika Slabbert; Defendant: Minirock CC; Defendant: Virarnie CC
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
20 December 2017
Case Number
4131/2013
Procedural Posture
Civil Trial / Stated Case on Interest in Enrichment Claim
Outcome
The defendants are ordered to pay interest on the outstanding liability from 15 June 2016 at the prescribed rate and to pay the plaintiff's costs from that date.
Judges
EA Pike
Legal Topics
Enrichment Claim, Moratory Interest, Prescribed Rate of Interest Act, Liquidated Vs Unliquidated Debt
Civil Procedure Commercial and Corporate Enrichment Claim Moratory Interest Prescribed Rate of Interest Act Liquidated Vs Unliquidated Debt

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Parties

Nedbank Ltd

Plaintiff

CBR Engineering CC

Defendant

CA Minnie (SNR)

Defendant

CA Minnie (JNR)

Defendant

Hester Cornelia Hendrika Slabbert

Defendant

Minirock CC

Defendant

Virarnie CC

Defendant

Procedural Posture

Civil Trial / Stated Case on Interest in Enrichment Claim

Legal Issues

  1. 1 When does interest begin to run on an enrichment claim against the defendants.
  2. 2 Is the enrichment claim liquidated or unliquidated for purposes of interest calculation.
  3. 3 Does the amendment of particulars of claim constitute a new cause of action or debt.

Ratio Decidendi

The court held that the enrichment claim, as pleaded in the amended particulars of claim, is unliquidated and not governed by any agreement as to interest or the date from which interest should run. Section 2A(2)(a) of the Prescribed Rate of Interest Act, 55 of 1975, applies, which provides that interest on an unliquidated debt runs from the date of demand or summons, whichever is earlier. In this case, the plaintiff only placed the defendants in mora on 15 June 2016, when the claim for enrichment was incorporated into the particulars of claim. The court rejected the plaintiff's argument that interest should run from the date of the loan, finding that the amendment did not create a new...

Court Disposition

The defendants are ordered to pay interest on the outstanding liability from 15 June 2016 at the prescribed rate and to pay the plaintiff's costs from that date.

Orders

  • The defendants are ordered to pay interest on the remainder of the defendants' liability from 15 June 2016 to date of payment at a rate of 10.25% per annum.
  • The defendants are ordered, jointly and severally, the one paying the other to be absolved, to pay the plaintiff's costs from 15 June 2016 to date of payment of the outstanding balance.