Ritz Plaza (Proprietary) Limited v Ritz Hotel Management Company (Proprietary) Limited (20753/17) [2018] ZAWCHC 60; [2018] 3 All SA 583 (WCC) (28 May 2018)

Ritz Plaza (Proprietary) Limited v Ritz Hotel Management Company (Proprietary) Limited (20753/17) [2018] ZAWCHC 60; [2018] 3 All SA 583 (WCC) (28 May 2018)

The court found that the respondent was in breach of its rental obligations under the lease, having failed to pay rent for several months and not remedied the breach after notice. The respondent's reliance on a tacit term in the term sheet was rejected, as both the term sheet and the lease expressly excluded any tacit or implied terms not recorded therein. The Academy of Learning defence was inapplicable because the alleged breach related to a separate agreement (the term sheet) and not the lease itself. The respondent failed to plead or establish the existence of a tacit term in its affidavits or correspondence, and its argument was deemed an afterthought. The plea of lis pendens was...

Citation
[2018] ZAWCHC 60
Parties
Applicant: Ritz Plaza (Proprietary) Limited; Respondent: Ritz Hotel Management Company (Proprietary) Limited
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
28 May 2018
Case Number
20753/17
Procedural Posture
Urgent Application / Judgment on Urgent Application for Ejectment
Outcome
Application granted; respondent and all persons occupying under it are ordered to be ejected from the premises.
Judges
Gamble
Legal Topics
Ejectment, Lease Cancellation, Tacit Terms, Lis Pendens, Abuse of Process, Breach of Contract
Land and Property Commercial and Corporate Civil Procedure Ejectment Lease Cancellation Tacit Terms Lis Pendens Abuse of Process +1 more

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Parties

Ritz Plaza (Proprietary) Limited

Applicant

Ritz Hotel Management Company (Proprietary) Limited

Respondent

Procedural Posture

Urgent Application / Judgment on Urgent Application for Ejectment

Legal Issues

  1. 1 Whether the applicant lawfully cancelled the lease agreement due to non-payment of rental by the respondent.
  2. 2 Whether the respondent may rely on a tacit term or the Academy of Learning defence to excuse its non-payment.
  3. 3 Whether the application for ejectment should be stayed on the basis of lis pendens or abuse of process.

Ratio Decidendi

The court found that the respondent was in breach of its rental obligations under the lease, having failed to pay rent for several months and not remedied the breach after notice. The respondent's reliance on a tacit term in the term sheet was rejected, as both the term sheet and the lease expressly excluded any tacit or implied terms not recorded therein. The Academy of Learning defence was inapplicable because the alleged breach related to a separate agreement (the term sheet) and not the lease itself. The respondent failed to plead or establish the existence of a tacit term in its affidavits or correspondence, and its argument was deemed an afterthought. The plea of lis pendens was...

Court Disposition

Application granted; respondent and all persons occupying under it are ordered to be ejected from the premises.

Orders

  • The respondent and all persons occupying the premises at Erf 1419, Sea Point East, Cape Town, also known as The Ritz Hotel, are ejected from the premises with effect from midnight on Friday 22 June 2018.
  • If the respondent and all persons occupying under it refuse to vacate voluntarily, the Sheriff is authorised to enter the premises on Friday 29 June 2018 and eject the occupants.