Nel v Tsai and Others (40185/09) [2010] ZAGPPHC 83 (30 July 2010)
- Citation
- [2010] ZAGPPHC 83
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- North Gauteng High Court, Pretoria
- Panel
- Goodey
- Case number
- 40185/09
More details
- Court
- North Gauteng High Court, Pretoria
- Panel
- Goodey
- Case number
- 40185/09
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court held that the 'Letter of Appointment' is not totally unambiguous and that questions of interpretation should not be settled at the exception stage. The court found that the particulars of claim are not so vague or embarrassing as to prevent the defendants from pleading, especially given the concessions made by the plaintiff. The exception was therefore dismissed, and costs were ordered to be costs in the cause, as both parties were partly successful.
Court disposition
Exception dismissed; costs to be costs in the cause.
Orders
- The exception is dismissed.
- Costs are costs in the cause.
02
Material facts
Parties
Petrus Jacobus Nel
Plaintiff Counsel: Mr Arnoldi SCSteven Martin Tsai
DefendantIrene Margaret Tsai
DefendantM & T Development (Pty) Ltd
DefendantSunrise Moreletapark Properties (Pty) Ltd
DefendantWing Tai Development (Pty) Ltd
DefendantErf 68 Erasmus Kloof Extension 3 (Pty) Ltd
DefendantErf 105 Erasmus Kloof Extension 3 (Pty) Ltd
DefendantJR 209 Investments (Pty) Ltd
DefendantFaerie Glen Waterpark (Pty) Ltd
DefendantCenturion Vision Development (Pty) Ltd
DefendantErf 1836 Garsfontein Extension 8 CC
DefendantFaerie Glen Extension 28 CC
DefendantErf 87 Erasmus Kloof Extension 3 (Pty) Ltd
DefendantMoreleta Park Property 3 (Pty) Ltd
DefendantM & T Development - Property Marketing (Pty) Ltd
DefendantSteven Martin Tsai N.O.
DefendantIrene Margaret Tsai N.O.
DefendantJames Barry Munnik Hertzog N.O.
Defendant03
Procedural history
Posture
Civil Procedure / Exception to Particulars of Claim
04
Questions and positions
Legal issues
- 01
Whether the plaintiff's particulars of claim disclose a cause of action against the defendants.
- 02
Whether the particulars of claim are vague and embarrassing to the extent that the defendants cannot plead thereto.
- 03
Whether the 'Letter of Appointment' is susceptible to more than one interpretation and whether evidence of implied terms may be admitted.
Party arguments
- Applicant
- The plaintiff contends that the 'Letter of Appointment' is open to more than one interpretation and that a trial court should allow evidence regarding implied terms. The plaintiff concedes certain paragraphs of the particulars of claim but maintains that the remaining claims are not unambiguous and should proceed to trial.
- Respondent
- The defendants argue that the particulars of claim lack necessary averments to sustain a cause of action and are vague and embarrassing. They submit that the relief sought contradicts the express terms of the employment agreement and that the plaintiff's claims are based on misinterpretations of the contract. They request the court to interpret the 'Letter of Appointment' as only susceptible to one meaning at this stage.
05
Court’s reasoning
Legal principles
- 01
Murray & Roberts Construction Ltd v Finat Properties (Pty) Ltd [1991] 1 All SA 382 (A), 1991 (1) SA 508 (A)
An exception is generally not the appropriate procedure to settle questions of interpretation, as evidence may be admissible at trial to clarify surrounding circumstances.
- 02
Lewis v Oneanate (Pty) Ltd [1992] ZASCA 174; [1992] 2 All SA 498 (A), 1992 (4) SA 811 (A)
Whether a contract is void for vagueness does not readily fall to be decided by way of exception.
- 03
Herbstein and Van Winsen, Civil Practice (Fifth Edition), p636
An exception that a pleading is vague and embarrassing ought not to be allowed unless the excipient would be seriously prejudiced if the offending allegations were not expunged.
- 04
Herbstein and Van Winsen, Civil Practice (Fifth Edition), p637
The excipient must persuade the court that upon every reasonable interpretation of the pleading, no cause of action or defence is disclosed. Courts are reluctant to decide upon exception questions concerning contract interpretation where meaning is uncertain.
06
Ratio, limits and disposition
Ratio decidendi
The court held that the 'Letter of Appointment' is not totally unambiguous and that questions of interpretation should not be settled at the exception stage. The court found that the particulars of claim are not so vague or embarrassing as to prevent the defendants from pleading, especially given the concessions made by the plaintiff. The exception was therefore dismissed, and costs were ordered to be costs in the cause, as both parties were partly successful.
Obiter and limits
- Courts are generally reluctant to decide questions of contract interpretation at the exception stage, especially where the meaning is uncertain.
- The fact that both parties made concessions during argument influenced the decision on costs.
Court disposition
Exception dismissed; costs to be costs in the cause.
- The exception is dismissed.
- Costs are costs in the cause.
Source and reliance status
North Gauteng High Court, Pretoria
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
North Gauteng High Court, Pretoria
Judgment
IN THE NORTH GAUTENG HIGH COURT,
PRETORIA (REPUBLIC OF SOUTH AFRICA)
CASE NUMBER: 40185/09
DATE: 30/07/2010
In the matter between:
PETRUS
JACOBUS NEL
and
STEVEN MARTIN TSAI 1st
DEFENDANT
IRENE MARGARET TSAI 2nd
DEFENDANT
M & T DEVELOPMENT (PTY) LTD 3rd
DEFENDANT
SUNRISE MORELETAPARK PROPERTIES (PTY) LTD 4™ DEFENDANT
WING TAI DEVELOPMENT (PTY) LTD 5th
DEFENDANT
ERF 68 ERASMUS KLOOF EXTENSION 3 (PTY) LTD 6th
DEFENDANT
ERF 105 ERASMUS KLOOF EXTENSION 3 (PTY) LTD 7™ DEFENDANT
JR 209 INVESTMENTS (PTY) LTD 8th
DEFENDANT
FAERIE GLEN WATERPARK (PTY) LTD 9™ DEFENDANT
CENTURION VISION DEVELOPMENT (PTY) LTD 10th
DEFENDANT
ERF 1836 GARSFONTEIN EXTENSION 8 CC 11th
DEFENDANT
FAERIE GLEN EXTENSION 28 CC 12th
DEFENDANT
ERF 87 ERASMUSKLOOF EXTENSION 3(PTY) LTD 13™ DEFENDANT
MORELETA PARK PROPERTY 3 (PTY) LTD 14th DEFENDANT M & T DEVELOPMENT - PROPERTY MARKETING (PTY) LTD 15™
DEFENDANT
STEVEN MARTIN TSAI N.O. 16™ DEFENDANT
IRENE MARGARET TSAI N.O. 17™ DEFENDANT
JAMES BARRY MUNNIK HERTZOG N.O. 18™ DEFENDANT
JUDGEMENT
GOODEY AJ:
[1] INTRODUCTION:
1.1 This matter concerns two exceptions raised by the
Defendants to the Plaintiff's particulars of claim in that, first, it lacks the necessary averments to sustain a cause of action against the Defendants and secondly, that it is vague and embarrassing tc the extent that the Defendants are unable to properly plead thereto.
The Defendants set out six basises upon which the exceptions are founded. These (according to the Defendants) can be summarized as follows:
1.2.1 First Basis:
Paragraphs 29.1 to 29.6 of the particulars of claim list the express terms of the employment agreement as they appear in clauses 1 to 9 (excluding clauses 6 and 7) thereof. Although clauses 1 to 5 and 8 and 9 of the letter of appointment are paraphrased in paragraphs 29.1 to 29.6 of the particulars of ciaim they clearly denote, in no uncertain terms, the express terms of the employment agreement.
1.2.2 Second Basis:
The relief which the Plaintiff seeks in regard to the alternative claim is the delivery of accounts, the debatement of such accounts and payment to the Plaintiff of any amounts found to be owing to the Plaintiff. The Defendant further submit that in total contradistinction to the clear terms of paragraph 5 the Plaintiff alleges in paragraph 30 that the obligation there pleaded is a once-off obligation and not a continuous obligation as provided for in clause 5 of the letter of appointment.
1.2.3 Third Basis:
The Plaintiff's allegations that he is entitled to 10% of the nett asset value of each of the Third to Fifteenth Defendants are obviously predicated upon the allegations made in paragraph 30 of the particulars of claim. The argument continues that this in
contradiction with paragraph 30 of the particulars of claim.
1.2.4 Fourth Basis:
This pertains to paragraph 32 of the particulars of claim which was conceded during argument and therefore needs not further consideration.
1.2.5
Fifth and Sixth Bases:
These pertain to paragraph 34 of the particulars of claim which was also conceded by the Plaintiff during argument and does not need further consideration.
WHAT REMAINS?:
2.1 After various concessions made during argument by Mr Arnoldi SC; what remains is in essence that the Plaintiff persists that the so-called ''Letter of Appointment" is susceptible for more than one interpretation. It is therefore argued that a trial Court will allow and accept evidence pertaining to an impfied term.
2.2 The nett result is that the Defendants expect this Court at this stage to interpret the "Letter of Appointment" as only susceptible to one interpretation only.
LEGAL PRINCIPLES IN RESPECT OF AN EXCEPTION:
3.1 It is trite law that a Court will not easily settle questions of
interpretation at the exception stage.
In this regard the following is said.
3.1.1 An exception is generally not the appropriate procedure to settle questions of interpretation because, in cases of doubt, evidence may be admissible at the trial stage relating to surrounding circumstances, which evidence may clear up the difficulties.
Murray & Roberts Construction Ltd v Finat Properties (Pty) Ltd [1991] 1 All SA 382 (A), 1991 (1) SA 508 (A)
Sun Packaging (Pty) Ltd v Vreulink [1996] ZASCA 73; 1996 (4) SA 176 (SCA)
Similarly, whether a contract is void for vagueness does not readily fall to be decided by way of exception.
Lewis v Oneanate (Pty) Ltd [1992] ZASCA 174; [1992] 2 All SA 498 (A), 1992 (4) SA 811 (A) 817-818
SEE: Amier's Precedents of Pleadings (7th Edition)
3.1.2 Also see: Herbstein and Van Winsen [Civil Practise] (Fifth Edition)
On p636:
"An exception that a pleading is vague and embarrassing ought not to be allowed unless the excipient would be seriously prejudiced if the offending allegations were not expunged. A pleading will not cease to be prejudicial merely because it is possible to draft an unexcipiable."
On p637:
The excipient has the duty to persuade the court that upon every interpretation which the pleading
can reasonably bear, no cause of action or defence is disclosed. Courts are reluctant to decide upon exception questions concerning the interpretation of a contract where its meaning is uncertain. When the exception is based upon an interpretation of a contract, it is necessary for the excipieni to demonstrate that the contract is unambiguous."(my underlining) "
3.1.3 I have been referred to various authorities by both counsel which do not detract from the aforesaid principles.
[4] CONCLUSION:
In view of the aforegoing, I am not convinced that the "Letter of Appointment" is totally unambiguous.
[5] COSTS:
As I have indicated various concessions were made on behalf of the Plaintiff. The nett result is that both parties were partly successful.
In the result I am of the opinion that costs should be costs in the cause. I therefore make the following order:
1. The exception is dismissed;
2. Costs are costs in the cause.
GOODEY AJ.
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