Sandlundlu (Pty) Ltd v Shapsone and Wylie Inc. (8965/05) [2009] ZAKZDHC 44 (15 October 2009)

Sandlundlu (Pty) Ltd v Shapsone and Wylie Inc. (8965/05) [2009] ZAKZDHC 44 (15 October 2009)

The court found that the defendant, through its partner Breytenbach, breached its contractual duty to the plaintiff by failing to amend the lease agreement as instructed, resulting in the rental amount and escalation being incorrectly reflected. This negligence was a significant cause of the plaintiff's loss, and the damages claimed, including lost rentals and legal fees, flowed naturally and foreseeably from the breach. The court rejected the defendant's argument for apportionment, holding that in contract, a defendant is fully liable if its breach is a cause of the loss, regardless of other contributing factors. The court limited the period of damages to sixteen months, from December...

Citation
[2009] ZAKZDHC 44
Parties
Plaintiff: Sandlundlu (Pty) Ltd; Defendant: Shepstone & Wylie Inc
Court
Kwazulu-Natal High Court, Durban
Jurisdiction
South Africa
Judgment Date
15 October 2009
Case Number
8965/05
Procedural Posture
Civil Trial / Final Judgment
Outcome
Plaintiff's claim for damages arising from breach of contract is upheld.
Judges
Nicholson
Legal Topics
Professional Negligence, Breach of Contract, Damages Quantification, Lease Rectification, Attorney Client Duties
Commercial and Corporate Land and Property Professional Negligence Breach of Contract Damages Quantification Lease Rectification Attorney Client Duties

Case Brief

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Parties

Sandlundlu (Pty) Ltd

Plaintiff

Shepstone & Wylie Inc

Defendant

Procedural Posture

Civil Trial / Final Judgment

Legal Issues

  1. 1 Whether the defendant, as attorney, breached its contractual duty of skill and care by failing to amend the lease agreement as instructed.
  2. 2 Whether the defendant's negligence was the cause of the plaintiff's financial loss.
  3. 3 Whether damages claimed by the plaintiff were foreseeable and flowed naturally from the breach.

Ratio Decidendi

The court found that the defendant, through its partner Breytenbach, breached its contractual duty to the plaintiff by failing to amend the lease agreement as instructed, resulting in the rental amount and escalation being incorrectly reflected. This negligence was a significant cause of the plaintiff's loss, and the damages claimed, including lost rentals and legal fees, flowed naturally and foreseeably from the breach. The court rejected the defendant's argument for apportionment, holding that in contract, a defendant is fully liable if its breach is a cause of the loss, regardless of other contributing factors. The court limited the period of damages to sixteen months, from December...

Court Disposition

Plaintiff's claim for damages arising from breach of contract is upheld.

Orders

  • The defendant is ordered to pay the plaintiff damages in the sum of R824,000.00.
  • The defendant is ordered to pay interest on the above amount at the rate of 15.5% per annum from the date of service of summons to date of payment.