Roux and Another v Magnolia Ridge Properties 197 (Pty) Ltd (EL556/2012, ECD1256/2012) [2015] ZAECELLC 1 (3 February 2015)

Roux and Another v Magnolia Ridge Properties 197 (Pty) Ltd (EL556/2012, ECD1256/2012) [2015] ZAECELLC 1 (3 February 2015)

The court found, on a balance of probabilities, that the plaintiff was given a mandate by the defendant to find a purchaser for the property and that the plaintiff was the effective cause of the sale to Zambli 216 (Pty) Ltd. The plaintiff's name and entitlement to commission were reflected in multiple agreements and correspondence, and no other estate agent was involved in the transaction. The defendant's denial of the mandate and claim of intervening events were not supported by credible evidence. The court held that the plaintiff is entitled to the agreed commission of R1,000,000 plus VAT, together with interest from the date of transfer, and ordered the defendant to pay the plaintiff's...

Citation
[2015] ZAECELLC 1
Parties
Plaintiff: Kevin Glynn Roux and Elizabeth Johanna Van Nierop; Defendant: Magnolia Ridge Properties 197 (Pty) Ltd; Respondent: Zambli 216 (Pty) Ltd
Court
Eastern Cape High Court, East London Local Court
Jurisdiction
South Africa
Judgment Date
3 February 2015
Case Number
EL556/2012, ECD1256/2012
Procedural Posture
Civil Trial / Judgment After Trial
Outcome
Judgment granted in favour of the plaintiff for payment of commission plus VAT and interest; defendant ordered to pay costs.
Judges
P.W. Tshiki
Legal Topics
Estate Agents Act, Commission Entitlement, Effective Cause, Contractual Mandate, Sale of Immovable Property
Commercial and Corporate Land and Property Estate Agents Act Commission Entitlement Effective Cause Contractual Mandate Sale of Immovable Property

Case Brief

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Parties

Kevin Glynn Roux and Elizabeth Johanna Van Nierop

Plaintiff

Magnolia Ridge Properties 197 (Pty) Ltd

Defendant

Zambli 216 (Pty) Ltd

Respondent

Procedural Posture

Civil Trial / Judgment After Trial

Legal Issues

  1. 1 Whether the plaintiff estate agent partnership received a mandate from the defendant to find a purchaser for the property.
  2. 2 Whether the plaintiff was the effective cause of the sale of the property to Zambli 216 (Pty) Ltd.
  3. 3 Whether the plaintiff is entitled to commission and VAT as claimed.

Ratio Decidendi

The court found, on a balance of probabilities, that the plaintiff was given a mandate by the defendant to find a purchaser for the property and that the plaintiff was the effective cause of the sale to Zambli 216 (Pty) Ltd. The plaintiff's name and entitlement to commission were reflected in multiple agreements and correspondence, and no other estate agent was involved in the transaction. The defendant's denial of the mandate and claim of intervening events were not supported by credible evidence. The court held that the plaintiff is entitled to the agreed commission of R1,000,000 plus VAT, together with interest from the date of transfer, and ordered the defendant to pay the plaintiff's...

Court Disposition

Judgment granted in favour of the plaintiff for payment of commission plus VAT and interest; defendant ordered to pay costs.

Orders

  • Defendant is ordered to pay the plaintiff R1,000,000.00 plus Value Added Tax together with interest at the legal rate per annum from 11 May 2012 to date of payment.
  • Defendant is ordered to pay the plaintiff's costs of suit together with interest at the legal rate per annum from allocatur to date of payment, including costs for preparation of heads of argument by plaintiff's counsel.