Rumdel Cape and Others v South African National Roads Agency Soc Ltd (7312/2014) [2014] ZAKZDHC 68 (25 September 2014)

Rumdel Cape and Others v South African National Roads Agency Soc Ltd (7312/2014) [2014] ZAKZDHC 68 (25 September 2014)

The court found that the contract placed the primary obligation for site security and risk management on the applicant, including the duty to insure against risks such as riot and disorder. The violent incidents and labour unrest were foreseeable and arose from the applicant's own workforce and management decisions, not from external forces beyond its control. The applicant failed to demonstrate that the events constituted force majeure as defined in the contract, nor that performance had become impossible or unlawful. The additional security costs were not recoverable from the respondent, as the contract required the applicant to provide for such risks in its tender and insurance...

Citation
[2014] ZAKZDHC 68
Parties
Applicant: Rumdel Cape/EXR Holdings/Mazcon Joint Venture; Respondent: South African National Roads Agency Soc Ltd
Court
Kwazulu-Natal High Court, Durban
Jurisdiction
South Africa
Judgment Date
25 September 2014
Case Number
7312/2014
Procedural Posture
Urgent Application / Application for Declaratory and Monetary Relief Under Construction Contract
Outcome
Application dismissed with costs, including costs of senior counsel.
Judges
Lopes
Legal Topics
Force Majeure, Impossibility of Performance, Contractual Risk Allocation, Construction Contracts, Security Costs, Interpretation of Contracts
Commercial and Corporate Civil Procedure Force Majeure Impossibility of Performance Contractual Risk Allocation Construction Contracts Security Costs Interpretation of Contracts

Case Brief

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Parties

Rumdel Cape/EXR Holdings/Mazcon Joint Venture

Applicant

South African National Roads Agency Soc Ltd

Respondent

Procedural Posture

Urgent Application / Application for Declaratory and Monetary Relief Under Construction Contract

Legal Issues

  1. 1 Whether the violent events at the construction site constitute force majeure under the contract.
  2. 2 Whether the applicant is entitled to recover additional security costs from the respondent.
  3. 3 Whether the applicant is entitled to be released from further contractual performance due to impossibility or unlawfulness.

Ratio Decidendi

The court found that the contract placed the primary obligation for site security and risk management on the applicant, including the duty to insure against risks such as riot and disorder. The violent incidents and labour unrest were foreseeable and arose from the applicant's own workforce and management decisions, not from external forces beyond its control. The applicant failed to demonstrate that the events constituted force majeure as defined in the contract, nor that performance had become impossible or unlawful. The additional security costs were not recoverable from the respondent, as the contract required the applicant to provide for such risks in its tender and insurance...

Court Disposition

Application dismissed with costs, including costs of senior counsel.

Orders

  • The application is dismissed with costs, such costs to include those consequent upon the employment of senior counsel.