Pheiffer and Others v About it Pretoria (Pty) Ltd and Others (65188/2014) [2016] ZAGPPHC 1232 (10 November 2016)

Pheiffer and Others v About it Pretoria (Pty) Ltd and Others (65188/2014) [2016] ZAGPPHC 1232 (10 November 2016)

The court held that the agreement relied upon by the plaintiffs was ab initio null and void because it was signed by unauthorised trustees, in contravention of section 6(1) of the Trust Property Control Act. The statutory requirement for written authorisation from the Master is absolute, and any contract entered into before such authority is obtained is void and incapable of ratification. The court rejected the plaintiffs' argument that a peculiar factual matrix or subsequent ratification could validate the agreement. The declaration failed to plead sufficient facta probanda, and the plaintiffs lacked locus standi to seek relief under section 162 of the Companies Act, as their shareholder...

Citation
[2016] ZAGPPHC 1232
Parties
Plaintiff: Rudi Pheiffer; Plaintiff: Rudi Pheiffer N.O.; Plaintiff: Cornelia Maria Pheiffer N.O.; Defendant: About It Pretoria (Pty) Ltd; Defendant: Gerhardus Marthinus Olivier; Defendant: Gerhardus Marthinus Olivier N.O.; Defendant: Madelein Olivier N.O.
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
10 November 2016
Case Number
65188/2014
Procedural Posture
Civil Trial / Exception to Declaration; Interlocutory Judgment
Outcome
Defendants' exception upheld; paragraphs of the declaration struck out; costs awarded against plaintiffs; leave granted to amend declaration.
Judges
Brenner AJ
Legal Topics
Trustee Authority, Contract Nullity, Stipulatio Alteri, Condonation, Locus Standi, Pleading Requirements
Civil Procedure Commercial and Corporate Trustee Authority Contract Nullity Stipulatio Alteri Condonation Locus Standi Pleading Requirements

Case Brief

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Parties

Rudi Pheiffer

Plaintiff

Rudi Pheiffer N.O.

Plaintiff

Cornelia Maria Pheiffer N.O.

Plaintiff

About It Pretoria (Pty) Ltd

Defendant

Gerhardus Marthinus Olivier

Defendant

Gerhardus Marthinus Olivier N.O.

Defendant

Madelein Olivier N.O.

Defendant

Procedural Posture

Civil Trial / Exception to Declaration; Interlocutory Judgment

Legal Issues

  1. 1 Whether the agreement signed by unauthorised trustees is ab initio null and void under section 6(1) of the Trust Property Control Act.
  2. 2 Whether the declaration pleads sufficient facta probanda to sustain the causes of action.
  3. 3 Whether the plaintiffs have locus standi to seek relief under section 162 of the Companies Act.

Ratio Decidendi

The court held that the agreement relied upon by the plaintiffs was ab initio null and void because it was signed by unauthorised trustees, in contravention of section 6(1) of the Trust Property Control Act. The statutory requirement for written authorisation from the Master is absolute, and any contract entered into before such authority is obtained is void and incapable of ratification. The court rejected the plaintiffs' argument that a peculiar factual matrix or subsequent ratification could validate the agreement. The declaration failed to plead sufficient facta probanda, and the plaintiffs lacked locus standi to seek relief under section 162 of the Companies Act, as their shareholder...

Court Disposition

Defendants' exception upheld; paragraphs of the declaration struck out; costs awarded against plaintiffs; leave granted to amend declaration.

Orders

  • Defendants are granted condonation for the late service of their heads of argument.
  • Defendants are directed, jointly and severally, to pay the costs of the condonation application on the opposed party and party scale, confined to the costs of one Junior Counsel.