RF Gevers (Pty) Limited abd Others v Land and Agricultural Development Bank of South Africa (56611/12) [2015] ZAGPPHC 1032 (14 October 2015)

RF Gevers (Pty) Limited abd Others v Land and Agricultural Development Bank of South Africa (56611/12) [2015] ZAGPPHC 1032 (14 October 2015)

The court found that the Land Bank's contractual right to vary interest encompassed both the rate and the method of calculation. The variation decision, which changed the interest regime from annual simple interest at 19% to monthly compound interest at 17.52%, was valid and properly communicated to the plaintiffs....

Source-derived case information.

Citation
[2015] ZAGPPHC 1032
Parties
Plaintiff: RF Gevers (Pty) Limited; Plaintiff: Wood Basket (Pty) Limited; Plaintiff: Trustees of Robert Gevers Family Trust, Hogard Gevers Family Trust and Jurgen Gevers Family Trust; Plaintiff: Robert Friederich Gevers; Defendant: Land and Agricultural Development Bank of South Africa
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
14 October 2015
Case Number
56611/12
Procedural Posture
Civil Trial / Judgment After Trial
Outcome
Plaintiffs' action dismissed with costs, including costs of senior and junior counsel.
Judges
Tuchten
Legal Topics
Mortgage Bond Interest, Variation of Contract Terms, Compound Interest, Condictio Indebiti
Banking and Finance Civil Procedure Mortgage Bond Interest Variation of Contract Terms Compound Interest Condictio Indebiti

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Parties

RF Gevers (Pty) Limited

Plaintiff

Wood Basket (Pty) Limited

Plaintiff

Trustees of Robert Gevers Family Trust, Hogard Gevers Family Trust and Jurgen Gevers Family Trust

Plaintiff

Robert Friederich Gevers

Plaintiff

Land and Agricultural Development Bank of South Africa

Defendant

Procedural Posture

Civil Trial / Judgment After Trial

Legal Issues

  1. 1 Was the interest charged by the Land Bank on the outstanding loan amounts lawfully levied under the agreements?
  2. 2 Did the Land Bank validly change the interest regime from simple to compound interest after 1 July 1999?
  3. 3 Are the plaintiffs entitled to recover alleged overpayments made under protest due to the Land Bank's interest calculations?

Ratio Decidendi

The court found that the Land Bank's contractual right to vary interest encompassed both the rate and the method of calculation. The variation decision, which changed the interest regime from annual simple interest at 19% to monthly compound interest at 17.52%, was valid and properly communicated to the plaintiffs. The evidence established that the mortgage bonds allowed for such variation, and the plaintiffs did not challenge the validity of the notices. Severability was not possible, as the reduction in rate and change in calculation method were inextricably linked. Therefore, the plaintiffs were not entitled to recover any alleged overpayments, as the interest regime was lawfully...

Court Disposition

Plaintiffs' action dismissed with costs, including costs of senior and junior counsel.

Orders

  • Judgment for the defendant.
  • Plaintiffs to pay the costs of suit, including costs consequent upon the employment of both senior and junior counsel.