Raubex Construction (Pty) Ltd v Phumelela Local Municipality and Another (4204/2019) [2019] ZAFSHC 230 (28 November 2019)

Raubex Construction (Pty) Ltd v Phumelela Local Municipality and Another (4204/2019) [2019] ZAFSHC 230 (28 November 2019)

The court found that the applicant was entitled to payment of the retention monies as reflected in payment certificates 29 and 30. The respondent's defences based on the Division of Revenue Act and lack of National Treasury approval were rejected as irrelevant to the claim for retention monies, which were deducted from the contract price and held by the respondent. The respondent failed to provide a genuine dispute of fact or proper calculations to support its position. The court held that payment certificates are liquid documents and the respondent's conduct in opposing the application was grossly unreasonable, warranting a punitive costs order. Condonation for the late filing of...

Citation
[2019] ZAFSHC 230
Parties
Applicant: Raubex Construction (Pty) Ltd; Respondent: Phumelela Local Municipality; Respondent: The Minister of the Department of Water and Sanitation
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
28 November 2019
Case Number
4204/2019
Procedural Posture
Civil Application / Final Judgment
Outcome
Application granted in favour of the applicant.
Judges
JP Daffue
Legal Topics
Construction Contracts, Payment Certificates, Liquid Documents, Condonation, Interest on Late Payments
Commercial and Corporate Civil Procedure Construction Contracts Payment Certificates Liquid Documents Condonation Interest on Late Payments

Case Brief

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Parties

Raubex Construction (Pty) Ltd

Applicant

Phumelela Local Municipality

Respondent

The Minister of the Department of Water and Sanitation

Respondent

Procedural Posture

Civil Application / Final Judgment

Legal Issues

  1. 1 Whether the applicant is entitled to payment of retention monies reflected in payment certificates 29 and 30.
  2. 2 Whether the respondent's defences based on the Division of Revenue Act and lack of National Treasury approval are valid.
  3. 3 Whether the respondent's conduct warrants a punitive costs order.

Ratio Decidendi

The court found that the applicant was entitled to payment of the retention monies as reflected in payment certificates 29 and 30. The respondent's defences based on the Division of Revenue Act and lack of National Treasury approval were rejected as irrelevant to the claim for retention monies, which were deducted from the contract price and held by the respondent. The respondent failed to provide a genuine dispute of fact or proper calculations to support its position. The court held that payment certificates are liquid documents and the respondent's conduct in opposing the application was grossly unreasonable, warranting a punitive costs order. Condonation for the late filing of...

Court Disposition

Application granted in favour of the applicant.

Orders

  • Condonation is granted to respondent for the late filing of its answering affidavit.
  • Respondent is liable for the costs of the condonation application, including applicant's costs in opposing the application.