Rowan Tree 1169 CC v Cowsta Bellegings (Pty) Ltd (3637/2007) [2014] ZAECPEHC 41 (19 June 2014)

Rowan Tree 1169 CC v Cowsta Bellegings (Pty) Ltd (3637/2007) [2014] ZAECPEHC 41 (19 June 2014)

The court found that the plaintiff had proved its damages resulting from the defendant's breach of the warranty against eviction. The evidence of the plaintiff's experts, Mr. Hall and Mr. Helm, was accepted as conservative, fair, and reasonable. The projected gross profit margin of 53% was supported by credible evidence, including industry standards and the anticipated improvements from relocation and management upgrades. The defendant's expert was found to be partisan and his evidence was disregarded where it conflicted with the plaintiff's experts. The retrenchment costs were to be calculated based on actual salary paid in the relevant period, not projected remuneration. The court...

Citation
[2014] ZAECPEHC 41
Parties
Plaintiff: Rowan Tree 1169 CC; Defendant: Cowsta Bellegings (Pty) Ltd
Court
Eastern Cape High Court, Port Elizabeth
Jurisdiction
South Africa
Judgment Date
19 June 2014
Case Number
3637/2007
Procedural Posture
Civil Trial / Quantum of Damages After Liability Determined
Outcome
Plaintiff's claim for building costs, retrenchment costs, and loss of profits is upheld, except for the balance of the retrenchment costs claim. Defendant is ordered to pay the agreed amounts, interest, and costs.
Judges
Goosen
Legal Topics
Breach of Contract, Warranty Against Eviction, Quantum of Damages, Loss of Profits, Retrenchment Costs
Commercial and Corporate Civil Procedure Breach of Contract Warranty Against Eviction Quantum of Damages Loss of Profits Retrenchment Costs

Case Brief

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Parties

Rowan Tree 1169 CC

Plaintiff

Cowsta Bellegings (Pty) Ltd

Defendant

Procedural Posture

Civil Trial / Quantum of Damages After Liability Determined

Legal Issues

  1. 1 Whether the plaintiff proved the quantum of damages suffered as a result of the defendant's breach of warranty against eviction.
  2. 2 Whether the plaintiff is entitled to loss of profits for the five-year lease period.
  3. 3 Whether the retrenchment costs claimed by the plaintiff are recoverable and correctly calculated.

Ratio Decidendi

The court found that the plaintiff had proved its damages resulting from the defendant's breach of the warranty against eviction. The evidence of the plaintiff's experts, Mr. Hall and Mr. Helm, was accepted as conservative, fair, and reasonable. The projected gross profit margin of 53% was supported by credible evidence, including industry standards and the anticipated improvements from relocation and management upgrades. The defendant's expert was found to be partisan and his evidence was disregarded where it conflicted with the plaintiff's experts. The retrenchment costs were to be calculated based on actual salary paid in the relevant period, not projected remuneration. The court...

Court Disposition

Plaintiff's claim for building costs, retrenchment costs, and loss of profits is upheld, except for the balance of the retrenchment costs claim. Defendant is ordered to pay the agreed amounts, interest, and costs.

Orders

  • The defendant is ordered to pay the plaintiff R1,257,615.00, being the sum of agreed building costs and admitted retrenchment costs inclusive of interest calculated to 12 June 2014.
  • Interest on the aforesaid sum at the legal rate of 15.5% from 13 June 2014 to date of payment, payable only if not already paid as agreed on 12 June 2014.