Ocean Diners (Pty) Ltd v Golden Hill Construction CC (436/91) [1993] ZASCA 41; 1993 (3) SA 331 (AD); [1993] 2 All SA 260 (A) (26 March 1993)

Ocean Diners (Pty) Ltd v Golden Hill Construction CC (436/91) [1993] ZASCA 41; 1993 (3) SA 331 (AD); [1993] 2 All SA 260 (A) (26 March 1993)

The Supreme Court of Appeal held that the final certificate issued by the architect in terms of the building contract was conclusive evidence of the value of the works and the amount due to the respondent. The architect, having issued the certificate, was functus officio and lacked authority to withdraw or cancel it. Clause 25.7, which confers finality on the certificate, is not contrary to public policy, as it is a standard provision in building contracts and does not oust the court's jurisdiction in cases of fraud or manifest injustice. The errors and duplications identified by the appellant did not materially affect the valuation, which was the product of a compromise between the...

Citation
[1993] ZASCA 41
Parties
Appellant: Ocean Diners (Pty) Ltd; Respondent: Golden Hill Construction CC
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
26 March 1993
Case Number
436/91
Procedural Posture
Civil Appeal / Appeal From Judgment of Cape of Good Hope Provincial Division
Outcome
Appeal dismissed with costs.
Judges
E M Grosskopf, Smalberger, Nienaber, Nicholas, Howie
Legal Topics
Building Contracts, Final Certificate, Public Policy, Contractual Defences, Acknowledgement of Debt
Commercial and Corporate Civil Procedure Building Contracts Final Certificate Public Policy Contractual Defences Acknowledgement of Debt

Case Brief

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Parties

Ocean Diners (Pty) Ltd

Appellant

Golden Hill Construction CC

Respondent

Procedural Posture

Civil Appeal / Appeal From Judgment of Cape of Good Hope Provincial Division

Legal Issues

  1. 1 Whether a final certificate issued under a building contract is conclusive evidence of the value of works and amount due.
  2. 2 Whether the architect had authority to cancel or withdraw a final certificate after its issuance.
  3. 3 Whether clause 25.7 of the contract is contrary to public policy by ousting the court's jurisdiction.

Ratio Decidendi

The Supreme Court of Appeal held that the final certificate issued by the architect in terms of the building contract was conclusive evidence of the value of the works and the amount due to the respondent. The architect, having issued the certificate, was functus officio and lacked authority to withdraw or cancel it. Clause 25.7, which confers finality on the certificate, is not contrary to public policy, as it is a standard provision in building contracts and does not oust the court's jurisdiction in cases of fraud or manifest injustice. The errors and duplications identified by the appellant did not materially affect the valuation, which was the product of a compromise between the...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.