Rudnat Projects v Nketoane Local Municipality and Others (2870/2013) [2021] ZAFSHC 338 (22 October 2021)

Rudnat Projects v Nketoane Local Municipality and Others (2870/2013) [2021] ZAFSHC 338 (22 October 2021)

The court found that the plaintiff established a tacit agreement with the first defendant for the provision of professional services in the implementation of the water infrastructure project. The conduct of the first defendant, including participation in meetings, acceptance of reports, and payment for previous...

Source-derived case information.

Citation
[2021] ZAFSHC 338
Parties
Plaintiff: Rudnat Projects; Defendant: Nketoane Local Municipality; Defendant: Phumelela Local Municipality; Defendant: Setsoto Local Municipality; Defendant: Dihlabeng Local Municipality
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
22 October 2021
Case Number
2870/2013
Procedural Posture
Civil Trial / Judgment After Trial on Merits and Quantum
Outcome
Plaintiff's claim against the first defendant succeeds; costs awarded as specified.
Judges
Naidoo
Legal Topics
Tacit Contract, Municipal Liability, Professional Services Fees, Prescription Act, Unjust Enrichment, Delictual Claim
Commercial and Corporate Civil Procedure Tacit Contract Municipal Liability Professional Services Fees Prescription Act Unjust Enrichment Delictual Claim

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Summary, issues, holding and outcome

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Parties

Rudnat Projects

Plaintiff

Nketoane Local Municipality

Defendant

Phumelela Local Municipality

Defendant

Setsoto Local Municipality

Defendant

Dihlabeng Local Municipality

Defendant

Procedural Posture

Civil Trial / Judgment After Trial on Merits and Quantum

Legal Issues

  1. 1 Whether a contract existed between the plaintiff and the first defendant.
  2. 2 Whether the plaintiff rendered professional services to the first defendant.
  3. 3 Whether the plaintiff is entitled to payment for services rendered and the quantum thereof.

Ratio Decidendi

The court found that the plaintiff established a tacit agreement with the first defendant for the provision of professional services in the implementation of the water infrastructure project. The conduct of the first defendant, including participation in meetings, acceptance of reports, and payment for previous work, indicated an intention to contract with the plaintiff. The absence of a written agreement or council resolution did not negate the existence of a tacit contract, especially given the context of the funding agreement with the Department of Water Affairs. The quantum claimed was supported by evidence and calculated according to prescribed ECSA tariffs, which had been accepted...

Court Disposition

Plaintiff's claim against the first defendant succeeds; costs awarded as specified.

Orders

  • The first defendant is ordered to pay the plaintiff R5,287,036.43, together with costs of the action on a party and party scale.
  • The first defendant is ordered to pay interest on the aforesaid amount at 15.5% per annum, a tempore morae from 13 April 2013 to date of payment.