Rabson v Lance Real Estate CC and Another (3762/2008) [2011] ZAWCHC 258 (8 June 2011)

Rabson v Lance Real Estate CC and Another (3762/2008) [2011] ZAWCHC 258 (8 June 2011)

The court found that the agent made material and fraudulent misrepresentations to the plaintiff regarding the price and status of unit 703, inducing the plaintiff to contract at a higher price. The agent concealed the prior sale to Dr Lazard and the true developer price of R3.1 million, instead representing the price as R3.9 million. The developer was held vicariously liable for the agent's misrepresentations, in line with established authority. The appropriate measure of damages was the difference between the price paid and the true price, plus increased transfer costs. The claim for additional mortgage interest was rejected as not reasonably foreseeable. Judgment was granted in favour...

Citation
[2011] ZAWCHC 258
Parties
Plaintiff: Kenneth Steven Rabson; Defendant: Lance Real Estate CC; Defendant: Phindana Properties 143 (Pty) Ltd
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
8 June 2011
Case Number
3762/2008
Procedural Posture
Civil Trial / Final Judgment
Outcome
Judgment granted in favour of the plaintiff against both defendants, jointly and severally, for payment of R803,200, interest from 31 December 2007, and costs.
Judges
Koen AJ
Legal Topics
Fraudulent Misrepresentation, Vicarious Liability, Estate Agent Liability, Damages Calculation, Sectional Title Sale
Delict Land and Property Commercial and Corporate Fraudulent Misrepresentation Vicarious Liability Estate Agent Liability Damages Calculation Sectional Title Sale

Case Brief

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Parties

Kenneth Steven Rabson

Plaintiff

Lance Real Estate CC

Defendant

Phindana Properties 143 (Pty) Ltd

Defendant

Procedural Posture

Civil Trial / Final Judgment

Legal Issues

  1. 1 Whether the agent made fraudulent misrepresentations to the plaintiff regarding the sale of unit 703.
  2. 2 Whether the developer is vicariously liable for the agent's fraudulent misrepresentations.
  3. 3 What is the appropriate measure of damages for the plaintiff's loss.

Ratio Decidendi

The court found that the agent made material and fraudulent misrepresentations to the plaintiff regarding the price and status of unit 703, inducing the plaintiff to contract at a higher price. The agent concealed the prior sale to Dr Lazard and the true developer price of R3.1 million, instead representing the price as R3.9 million. The developer was held vicariously liable for the agent's misrepresentations, in line with established authority. The appropriate measure of damages was the difference between the price paid and the true price, plus increased transfer costs. The claim for additional mortgage interest was rejected as not reasonably foreseeable. Judgment was granted in favour...

Court Disposition

Judgment granted in favour of the plaintiff against both defendants, jointly and severally, for payment of R803,200, interest from 31 December 2007, and costs.

Orders

  • Payment of the sum of R803,200 by the defendants, jointly and severally.
  • Interest at the prescribed legal rate on R803,200 from 31 December 2007 to date of payment.