Sishen Hotel (Edms) Bpk. v Suid-Afrikaanse Yster en Staal Industriele Korporasie Bpk. (153/1986) [1987] ZASCA 20 (26 March 1987)

Sishen Hotel (Edms) Bpk. v Suid-Afrikaanse Yster en Staal Industriele Korporasie Bpk. (153/1986) [1987] ZASCA 20 (26 March 1987)

The Supreme Court of Appeal held that the respondent, as lessor, was under a common law obligation to provide the appellant with commodus usus of the hotel premises, which included maintaining the beneficial and practical enjoyment of the property for its intended use as a hotel. The respondent's procurement of the closure of the national road adjacent to the hotel materially diminished the appellant's ability to attract clientele and operate profitably, thereby impairing the commodus usus. The court found that this constituted a breach of the lease agreement, entitling the appellant to terminate the lease and claim damages for loss of profit. The court rejected the respondent's argument...

Citation
[1987] ZASCA 20
Parties
Appellant: Sishen Hotel (Edms) Beperk; Respondent: Suid-Afrikaanse Yster en Staal Industriële Korporasie Beperk
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
26 March 1987
Case Number
153/1986
Procedural Posture
Civil Appeal / Appeal From the Transvaal Provincial Division; Action for Damages for Breach of Contract
Outcome
Appeal upheld. Judgment granted in favour of the appellant for damages.
Judges
Rabie, Jansen, Botha, Nestadt, Steyn
Legal Topics
Commodus Usus, Breach of Lease, Damages for Loss of Profit, Implied Terms, Access to Leased Premises
Land and Property Commercial and Corporate Commodus Usus Breach of Lease Damages for Loss of Profit Implied Terms Access to Leased Premises

Case Brief

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Parties

Sishen Hotel (Edms) Beperk

Appellant

Suid-Afrikaanse Yster en Staal Industriële Korporasie Beperk

Respondent

Procedural Posture

Civil Appeal / Appeal From the Transvaal Provincial Division; Action for Damages for Breach of Contract

Legal Issues

  1. 1 Whether the respondent, as lessor, breached its common law obligation to provide commodus usus to the appellant as lessee.
  2. 2 Whether the closure of the national road adjacent to the hotel constituted a breach of the lease agreement.
  3. 3 Whether the appellant is entitled to damages for loss of profit resulting from the respondent's actions.

Ratio Decidendi

The Supreme Court of Appeal held that the respondent, as lessor, was under a common law obligation to provide the appellant with commodus usus of the hotel premises, which included maintaining the beneficial and practical enjoyment of the property for its intended use as a hotel. The respondent's procurement of the closure of the national road adjacent to the hotel materially diminished the appellant's ability to attract clientele and operate profitably, thereby impairing the commodus usus. The court found that this constituted a breach of the lease agreement, entitling the appellant to terminate the lease and claim damages for loss of profit. The court rejected the respondent's argument...

Court Disposition

Appeal upheld. Judgment granted in favour of the appellant for damages.

Orders

  • The appeal is upheld, with costs, including the costs of two counsel.
  • The order of the court a quo is set aside and replaced with: Judgment is granted in favour of the plaintiff against the defendant for payment of R650,000 together with statutory interest thereon from 6 November 1985 to date of payment, with costs of suit, including the costs consequent upon the employment of two...