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South Africa Judgment

North Gauteng High Court, Pretoria

Siyaya DB Consulting Engineers (Pty) Ltd v Passanger Rail Agency of South Africa (7394/2015) [2015] ZAGPPHC 961 (1 December 2015)

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Source document

01

Holding and result

The court found that the respondent had raised a bona fide defence, specifically regarding the payment structure and the correlation between invoices and the payment schedule under the consultancy agreement. The dispute over the payment structure was central to the defence and required interpretation at trial. The applicant conceded that a triable issue existed regarding the interest claimed. Accordingly, the court held that summary judgment was not appropriate and granted the defendant leave to defend the action.

Court disposition

Defendant granted leave to defend the action. Costs are to be in the cause.

Orders

  • The defendant is granted leave to defend the action instituted by the plaintiff.
  • Costs are to be in the cause of action.

02

Material facts

Parties

Siyaya DB Consulting Engineers (Pty) Ltd

Applicant Counsel: T Mathopo

Passanger Rail Agency of South Africa

Respondent Counsel: M Maritz SC

Amounts and remedies

  • Claimed Amount: ZAR 7,098,481.66
  • Interest Rate Per Annum: ZAR 9
  • Invoice Amount 1: ZAR 883,500
  • Invoice Amount 2: ZAR 1,270,196
  • Invoice Amount 3: ZAR 1,007,056.05
  • Invoice Amount 4: ZAR 343,101.55
  • Invoice Amount 5: ZAR 410,400
  • Invoice Amount 6: ZAR 883,500
  • Invoice Amount 7: ZAR 792,072
  • Invoice Amount 8: ZAR 1,007,056.05
  • Invoice Amount 9: ZAR 501,600

03

Procedural history

  1. Posture

    Summary Judgment Application / Application for Summary Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contended that it had pleaded with sufficient particularity, and that every invoice correlated with the amended payment schedule. Counsel demonstrated the process for reconciling claims to invoices and argued that the defendant could calculate the amounts claimed using the annexures. The applicant maintained that the claim was liquidated and suitable for summary judgment.
Respondent
The respondent argued that it had a bona fide defence and a triable case. It asserted that the invoices relied upon by the applicant did not correspond with the payment schedule in the consultancy agreement. The respondent further argued that the particulars of claim did not disclose a cause of action, were vague and embarrassing, and that the matter should have been referred to arbitration under the agreement.

05

Court’s reasoning

  1. 01

    Maharaj v Barclays National Bank 1976 (1) SA 418

    A defendant may successfully oppose a summary judgment by satisfying the court by affidavit that he has a bona fide defence to the claim. The court does not decide disputed facts or probabilities but enquires whether the defence is fully disclosed and bona fide.

  2. 02

    Oos Randse Bantosake Administrasie v Santam (1978)(1) SA 164

    A money claim is liquidated if the amount has been fixed by agreement or by the judgment of a court.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the respondent had raised a bona fide defence, specifically regarding the payment structure and the correlation between invoices and the payment schedule under the consultancy agreement. The dispute over the payment structure was central to the defence and required interpretation at trial. The applicant conceded that a triable issue existed regarding the interest claimed. Accordingly, the court held that summary judgment was not appropriate and granted the defendant leave to defend the action.

Obiter and limits

  • The drastic procedure of summary judgment should only be granted if the claim is liquidated and the defence is not bona fide.
  • The calculations required to reconcile the claim are not mere mathematical calculations and require further examination at trial.

Court disposition

Defendant granted leave to defend the action. Costs are to be in the cause.

  • The defendant is granted leave to defend the action instituted by the plaintiff.
  • Costs are to be in the cause of action.

Source and reliance status

North Gauteng High Court, Pretoria

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Judgment reading view

Judgment text

The complete available source text.

Source document

North Gauteng High Court, Pretoria

Judgment

[2015] ZAGPPHC 961

REPUBLIC

OF SOUTH AFRICA

IN

THE HIGH COURT OF SOUTH AFRICA

GAUTENG DIVISION, PRETORIA

In the matter between:

SIYAYA DB CONSULTING ENGINEERS (PTY) LTD

APPLICANT

And

PASSANGER

RAIL AGENCY OF SOUTH

AFRICA RESPONDENT

J

U D G M E N T

MALI AJ

1. The plaintiff applies for summary judgment against the defendants for payment of the amount of R7 098 481.66. The payment of the said amount should be together with interest of 9% per annum on the amount of :-

1.1. R883 500.00 from 23 April 2015 to date of payment.

1.2. On the amount of R1 270 196.00 from 23 April 2015 to date of payment.

1.3. On the amount of R1 007 056.05 from 23 April 2015 to date of payment.

1.4. On the amount of R343 101.55 from 23

April 2015 to date of payment.

1.5. On the amount of R410 400.00 from 30

July 2015 to date of payment.

1.6. On the amount of R883 500.00 from 30 July 2015 to date of payment.

1.7. On the amount of R792 072.00 from 30 July 2015 to date of payment.

1.8. On the amount of R1 007 056.05 from 30 July 2015 to date of payment.

1.9. On the amount of R501 600.00 from 30 July 2015 to date of payment.

2. In terms of rule 32(3), a defendant may either furnish security for any judgment that may be given or satisfy the court by affidavit or with the leave of the court, by oral evidence given by himself or by any other person who can swear positively to the facts that he shall disclose fully the nature and grounds of the defence and the material facts relied upon by him.

3. The approach of the court in deciding an opposition to a summary judgment application is set out by CORBETT JA in Maharaj v Barclays National Bank 1976 (1) SA 418

"Accordingly, one of the ways in which a defendant may successfully oppose a claim for summary judgment is by satisfying the court by affidavit that he has a bona fide defence to that claim. Where the defence is based upon facts, in the sense that material facts alleged by the plaintiff in his summons, or combined summons are disputed or new facts are alleged constituting a defence, the court does not attempt to decide these issues or to determine whether or not there is a balance of probabilities in favour of the one party or the other. All that the court enquires into is: (a) whether the defendant has 'fully' disclosed the nature and grounds of his defence and the material facts upon which it is founded, and (b) whether on the facts so disclosed the defendant appears to have, as to either the whole or part of the claim, a defence which is both bona fide and good in law. If satisfied on these matters the court must refuse summary judgment, either wholly or in part, as the case may be. The word 'fully' as used in the context of the Rule (and its predecessors), has been the cause of some judicial controversy in the past. It connotes, in my view, that while the defendant need not deal exhaustively with the facts and the evidence relied upon to substantiate them, he must at least disclose his defence and the material facts upon which it is based with sufficient particularity and completeness to enable the court to decide whether the affidavit discloses a bona fide defence."

4. In Maharaj at 4268 it was further held, that in determining whether a respondent in a summary judgment application should succeed -

"Alf that the Court enquires into is ... whether on the facts so disclosed the defendant appears (my underlining) to have, as to either the whole or part of the claim, a defence which is bona fide and good in law. If satisfied on these matters the Court must refuse summary judgment, either wholly or in part ..."

5. What is apparent from Maharaj is that a respondent does not have to prove a defence. All that is required is that a respondent must only advance facts from which it must appear that the respondent has a defence to the claim. It is at the trial where the defence must be proved.

6. In opposing the summary the respondent's argument is that it has an answer to the applicant's case because it has a bona fide defence and a triable case. One of the respondent's defences is that the invoices upon which the applicant relies on do not correspond with the payment schedule as contemplated in the consultancy agreement. The respondent further stated that the applicant/ plaintiff's particulars of claim do not disclose a cause of action, alternatively that they are vague and embarrassing; and further that the applicant should have referred the matter to arbitration as per the agreement between the parties.

7. The plaintiff concedes that the defendant raised a triable issue. This is in respect of the morae interest claimed from the respective dates specified in the summons, and grants the defendant leave to defend on the issue of interest, but only insofar as such interest precedes the date of service of summons.

8. On behalf of the applicant it was contended it had pleaded with sufficient particularity in that every single invoice correlates with the amended payment schedule. Counsel for the applicant went into great effort demonstrating to the court the process to be followed in reconciling a certain claim to a particular invoice.

9. The applicant's Counsel further submitted that if the defendant would take a calculator and add percentages referred to in the annexures the defendant would be in a position to plead. The applicant expects the court to follow mathematical formulas and calculations to arrive at the total amount claimed and grant a summary decision. In casu the calculations suggested by the applicant are not mere mathematical calculations.

10. It is trite that the drastic procedure of summary judgment providing the plaintiff with a quick remedy should be granted if the claim is liquidated. In OOS RANDSE BANTOSAKE

ADMINISTRAISIE V SANTAM (1978)(1) page 164 ("OOS RANDSE") at page 168 G it was stated

"A money claim is liquidated if the amount thereof has been fixed by agreement or by the judgment of a Court". In the present matter it appears to me that the agreement intended to fix the money claim requires interpretation in the trial court.

11. Having regard to the above my view is that the dispute over the payment structure of the claim goes to the heart of the defence. I find that a bona fide defence exists.

12. The following order is therefore made:

1. The defendant is hereby granted leave to defend the action instituted by the plaintiff.

2. Costs are to be in the cause of action.

____

NP

MALI

ACTING

JUDGE OF

THE

HIGH COURT

APPEARANCES

For the Applicant:T MATHOPO

Instructed by: MATHOPO ATTORNEYS

C/O

PHATSHWANE ATTORNEYS

For the Respondent:M MARITZ SC

Instructed by:DIALE MOGASHOA ATTORNEYS

Date of hearing: 20 November 2015

Date of judgment: 1 December 2015

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Maharaj v Barclays National Bank 1976 (1) SA 418

Case cited

Oos Randse Bantosake Administrasie v Santam (1978)(1) SA 164

Case cited

Uniform Rules of Court, Rule 32

Legislation

Legislation referenced in the available case record.

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