South Africa Judgment

North Gauteng High Court, Pretoria

Rigney v BMW Financial Services (96247/15) [2017] ZAGPPHC 330 (5 June 2017)

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Source document

01

Holding and result

The application for rescission was dismissed due to multiple procedural defects, including failure to comply with the Uniform Rules of Court regarding notice of motion and affidavit requirements. The founding and supporting affidavits did not meet statutory standards, and the relief sought was inconsistent and unclear, with the application notice at variance with the prayers in the affidavits. The applicant failed to specify the legal basis for rescission, instead referencing reconsideration under Rule 31(5)(d), which conflicted with the relief sought. The court found the application reckless and granted punitive costs on an attorney and client scale, as justified by the applicant's conduct and the contractual provision for such costs.

Court disposition

Application for rescission dismissed with costs on an attorney and client scale.

Orders

  • The application for rescission is dismissed with costs.
  • Costs are ordered on an attorney and client scale.

02

Material facts

Parties

Cecilia Sandra Rigney

Applicant

BMW Financial Services

Respondent

03

Procedural history

  1. Posture

    Rescission Application / Opposed Motion Court

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant sought rescission of a judgment, alleging fraud, and requested review and setting aside of the judgment. The grounds for rescission were only incorporated in the prayer for relief, and the application was brought under Rule 31(5)(d) for reconsideration, but did not specify the legal basis for rescission.
Respondent
The respondent opposed the application, raising points in limine regarding non-compliance with Rule 6(5)(a) and defective affidavits that failed to meet Regulation 4 of the Justice of the Peace and Commissioners Oaths Act. The respondent argued the application was procedurally flawed, the relief sought was inconsistent, and requested punitive costs due to the applicant's reckless conduct.

05

Court’s reasoning

  1. 01

    Uniform Rule 6(5)(a)

    Every application other than one brought ex parte must be brought on notice of motion in accordance with Form 2(a) and served with all annexures.

  2. 02

    Justice of the Peace and Commissioners Oaths Act 16 of 1963, Regulation 4

    Supporting affidavits must comply with Regulation 4, including certification of acknowledgment, signature, full name, business address, designation, and area of appointment.

  3. 03

    Uniform Rule 31(5)(d)

    A party dissatisfied with a judgment granted by the registrar may, within 20 days, set the matter down for reconsideration by the court.

  4. 04

    Herbstein and Van Winsen The Civil Practice of the High Courts of South Africa (5th Ed) pp 971-973

    Punitive costs orders are granted only in extraordinary circumstances, such as dishonest, fraudulent, vexatious, reckless, or malicious conduct.

06

Ratio, limits and disposition

Ratio decidendi

The application for rescission was dismissed due to multiple procedural defects, including failure to comply with the Uniform Rules of Court regarding notice of motion and affidavit requirements. The founding and supporting affidavits did not meet statutory standards, and the relief sought was inconsistent and unclear, with the application notice at variance with the prayers in the affidavits. The applicant failed to specify the legal basis for rescission, instead referencing reconsideration under Rule 31(5)(d), which conflicted with the relief sought. The court found the application reckless and granted punitive costs on an attorney and client scale, as justified by the applicant's conduct and the contractual provision for such costs.

Obiter and limits

  • The application papers were described as a 'royal mess', highlighting the importance of procedural compliance in motion proceedings.
  • Punitive costs orders should not be granted lightly and require special circumstances arising from the conduct of the parties.

Court disposition

Application for rescission dismissed with costs on an attorney and client scale.

  • The application for rescission is dismissed with costs.
  • Costs are ordered on an attorney and client scale.

Source and reliance status

North Gauteng High Court, Pretoria

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Judgment reading view

Judgment text

The complete available source text.

Source document

North Gauteng High Court, Pretoria

Judgment

[2017] ZAGPPHC 330

IN

THE HIGH COURT OF SOUTH AFRICA

GAUTENG DIVISION, PRETORIA

REPORTABLE:

NO

OF

INTERESTTO OTHERJUDGES: NO.

Case Number: 96247/15

Date: 29/5/17

In the matter between:

RIGNEY: CECILIA

SANDRA

Applicant

and

BMW

FINANCIAL

SERVICES

Respondent

Coram:

HUGHES J

REASONS

FOR DISMISSING RESCISSION APPLICATION

HUGHES J

[1] This rescission application was before me on the opposed motion court roll on 29

May 2017.

[2] From the outset of these proceeding, I must highlight, that the respondent opposed the rescission application initiated by the applicant.

[3] In doing so, the respondent raised, in my view, two pertinent points in limine and in addition, took the applicant to task as regards the basis upon which the rescission application is sought.

[4] The first point in limine raised by the respondent is the applicant's failure to comply with the Uniform Rules of this Court, in application proceedings, specifically so, Rule 6(5) (a) which reads:

"Every application other than one brought ex parte must be brought on notice of motion as near as may be in accordance with form 2 (a) of the first schedule and true copies of the notice and all annexures thereto, must be served upon every party to whom notice thereof is to be given".

[5] The respondent submitted that, the application before this court is defective as it is not set out in the format of Form 2(a), as is required by Rule 6(5) (a) set out above. In addition, it was pointed out that the costs orders sought by the respondent are conflicting, to which I concur. Further, that the grounds for the application, that being that the judgement was fraudulent, are only incorporated in the prayer portion for the relief sought.

[6] I glean from the prayers sought in the application, the applicant no longer seek a rescission of the judgment but rather a review and setting aside of the judgement. This is contrary to application for rescission launched and set out in the notice of the application.

[7] In short, the relief sought in the application notice is at variance with that relief reflected at the end of the applicant's so called founding affidavit. The founding affidavit does not conform to that which constitutes an affidavit. It is likewise with the supporting affidavits of both Cedric Rigney and that of Eldrid Maheppy. With regards to the latter's supporting affidavit, it is noted, that he deposed to the supporting affidavit prior to the founding affidavit being deposed to. How is that possible? In addition, the supporting affidavits do not abide by the prescripts of Regulation 4 of the Justice of the Peace and Commissioners Oaths Act 16 of 1963. Regulation 4 reads as follows:

" (1) below the deponent's signature or mark the commissioner of oath shall certify that the deponent has acknowledged that he knows and understand the contents of the declaration and he shall state the manner, place and date of taking the declaration.

(2) The commissioner of oath shall-

a) Sign the declaration and print his full name and business address below his signature: and

b) State his designation and the area for which he holds his appointment or the office held by him if holds his appointment ex officio"

None of the peremptory requisites set out above have been adhered to in respect of the founding affidavit and the supporting affidavits of both Cedrick Rigney and Eldrid Maheppy.

[8] Lastly, the application is brought in terms of Rule 31 (5) (d) which states as follows:

"Any party dissatisfied with a judgement granted or direction given by registrar may, within 20 days after such party acquired knowledge of such judgement or direction, set the matter down for reconsideration by the court."

[9] The respondent correctly points out in its heads of argument, that nowhere in the application of the applicant does she state the basis upon which the rescission application is sought.

[10] I concur with the respondent, that this application does not set out whether the rescission is based on either the Common Law, Rule 31 (2) (b) or Rule 42 (1), but for setting out the rule for a reconsideration, which is in conflict with the rescission sought in the founding affidavit. The reconsideration and the rescission are both, in further conflict with the prayers for a review sought in the founding affidavit.

[11] These papers are just in royal mess. On the points in limine raised above the application falls to be dismissed.

[12] In the prevailing circumstances, the respondent seek costs on an attorney and client scale. They make out a case that the applicant has not taken this court into its confidence and has either not been candid with the court or has bent the truth on numerous occasions.

[13] It is trite, that only in extra-ordinary circumstances and if special considerations arise out of the conduct of the parties or the circumstances that gave rise to this application, may a punitive costs order be granted. This would ensure that the party seeking such an order is not put out of pocket and is thus not to be granted lightly.

[14] The special circumstances above include but are not limited to, where a party acts dishonestly, fraudulently, in a vexatious manner, recklessly, maliciously and had frivolous motives or committed a grave misconduct in the conduct of the case itself. See Herbstein and Van Winsen The Civil Practice of the High Courts of South Africa (5 Ed) at pages 971 to 973.

[15] In the context of the preceding paragraph it is evident to me, that at the least, I find that this application was instituted by the applicant in a in a reckless manner. The respondent, in my view, is thus entitled to the punitive costs order sought on an attorney and client basis. This is besides the fact that the contract entered into by the applicant makes provision for costs to be granted on that specific scale.

[16] Consequently I make the following order;

[16.1] The application for rescission is dismissed with costs.

[16.2] The scale of the aforesaid costs is ordered to be on an attorney and client scale.

________

W. Hughes

Judge of the High Court, Gauteng

Pretoria

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Uniform Rules of Court Rule 6(5)(a)

Legislation

Legislation referenced in the available case record.

Uniform Rules of Court Rule 31(5)(d)

Legislation

Legislation referenced in the available case record.

Justice of the Peace and Commissioners Oaths Act 16 of 1963, Regulation 4

Legislation

Legislation referenced in the available case record.

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