Ruwacon (Edms) Bpk v Departement van Openbare Werke (7382/08) [2009] ZAFSHC 25 (5 March 2009)

Ruwacon (Edms) Bpk v Departement van Openbare Werke (7382/08) [2009] ZAFSHC 25 (5 March 2009)

The court found that, although the contract was concluded in Pretoria and the services were performed in KwaZulu Natal, the parties agreed that payment for services would be made into the applicant’s bank account in Bloemfontein. The applicant’s uncontested evidence established that all payments under the contract were made to its Bloemfontein account. The court held that the locus solutionis, being Bloemfontein, was sufficient to confer jurisdiction on the Free State High Court. The breach of the payment obligation in Bloemfontein constituted the cause of action, and thus the court had jurisdiction to hear the matter.

Citation
[2009] ZAFSHC 25
Parties
Applicant: Ruwacon (Edms) Bpk; Respondent: Departement van Openbare Werke
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
5 March 2009
Case Number
7382/08
Procedural Posture
Civil Application / Motion Proceedings; Jurisdictional Ruling
Outcome
The court held that it had jurisdiction over the matter and confirmed the orders previously granted in favour of the applicant.
Judges
H.M. Musi
Legal Topics
Jurisdiction, Forum Contractus, Breach of Contract, Payment of Debt
Civil Procedure Commercial and Corporate Jurisdiction Forum Contractus Breach of Contract Payment of Debt

Case Brief

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Parties

Ruwacon (Edms) Bpk

Applicant

Departement van Openbare Werke

Respondent

Procedural Posture

Civil Application / Motion Proceedings; Jurisdictional Ruling

Legal Issues

  1. 1 Does the Free State High Court have jurisdiction over a claim for payment arising from a contract where payment was to be made in Bloemfontein?
  2. 2 Is the fact that the respondent is a peregrinus sufficient to confer jurisdiction?
  3. 3 Does the locus solutionis (place of performance) found jurisdiction in this matter?

Ratio Decidendi

The court found that, although the contract was concluded in Pretoria and the services were performed in KwaZulu Natal, the parties agreed that payment for services would be made into the applicant’s bank account in Bloemfontein. The applicant’s uncontested evidence established that all payments under the contract were made to its Bloemfontein account. The court held that the locus solutionis, being Bloemfontein, was sufficient to confer jurisdiction on the Free State High Court. The breach of the payment obligation in Bloemfontein constituted the cause of action, and thus the court had jurisdiction to hear the matter.

Court Disposition

The court held that it had jurisdiction over the matter and confirmed the orders previously granted in favour of the applicant.

Orders

  • It is declared that the Free State High Court has jurisdiction over the claim for payment arising from the contract.
  • The orders previously granted in favour of the applicant are confirmed.