Rossouw NO and Another v Land and Agricultural Development Bank of South Africa (794/12) [2013] ZASCA 106; [2013] 4 All SA 318 (SCA) (13 September 2013)

Rossouw NO and Another v Land and Agricultural Development Bank of South Africa (794/12) [2013] ZASCA 106; [2013] 4 All SA 318 (SCA) (13 September 2013)

The Supreme Court of Appeal found that the Bank had acquired ownership of the six pivots delivered to the Trust through a valid instalment sale agreement, as the requirements for transfer of ownership were met. The Trust, acting with mala fides and full knowledge of the Bank's ownership, disposed of the pivots to a third party. The Bank proved all elements of the actio ad exhibendum, including delictual damages calculated at the market value of the pivots at the time of alienation. The court rejected the Trust's arguments regarding set-off for storage costs and the use of estoppel as a cause of action. The appeal succeeded to the extent that the Bank was only entitled to damages for six...

Citation
[2013] ZASCA 106
Parties
Appellant: Gerhardus Francois Rossouw NO; Appellant: Estelle Kathleen van der Merwe NO; Respondent: Land and Agricultural Development Bank of South Africa
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
13 September 2013
Case Number
794/12
Procedural Posture
Civil Appeal / Appeal From North Gauteng High Court, Pretoria
Outcome
Appeal upheld; order of the court below set aside and replaced.
Judges
Brand, Leach, Majiedt, Van der Merwe, Meyer
Legal Topics
Instalment Sale Agreement, Actio Ad Exhibendum, Ownership Transfer, Delictual Damages, Estoppel, Fraudulent Misrepresentation
Commercial and Corporate Civil Procedure Delict Instalment Sale Agreement Actio Ad Exhibendum Ownership Transfer Delictual Damages Estoppel +1 more

Case Brief

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Parties

Gerhardus Francois Rossouw NO

Appellant

Estelle Kathleen van der Merwe NO

Appellant

Land and Agricultural Development Bank of South Africa

Respondent

Procedural Posture

Civil Appeal / Appeal From North Gauteng High Court, Pretoria

Legal Issues

  1. 1 Whether the Bank acquired ownership of the six pivots delivered to the Trust.
  2. 2 Whether the requirements for the actio ad exhibendum were satisfied.
  3. 3 Whether estoppel can be used as a cause of action to claim damages for undelivered pivots.

Ratio Decidendi

The Supreme Court of Appeal found that the Bank had acquired ownership of the six pivots delivered to the Trust through a valid instalment sale agreement, as the requirements for transfer of ownership were met. The Trust, acting with mala fides and full knowledge of the Bank's ownership, disposed of the pivots to a third party. The Bank proved all elements of the actio ad exhibendum, including delictual damages calculated at the market value of the pivots at the time of alienation. The court rejected the Trust's arguments regarding set-off for storage costs and the use of estoppel as a cause of action. The appeal succeeded to the extent that the Bank was only entitled to damages for six...

Court Disposition

Appeal upheld; order of the court below set aside and replaced.

Orders

  • The respondents are ordered to pay the sum of R1 026 000.00 to the applicant.
  • Interest on the sum of R1 026 000.00 at 15.5% per annum from 22 June 2010 to date of payment.