Sonqishe v Willy Black Motors (Pty) Ltd t/a Delmas Nissan (74042/2014) [2015] ZAGPPHC 962 (11 August 2015)
- Citation
- [2015] ZAGPPHC 962
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- North Gauteng High Court, Pretoria
- Panel
- H.J Fabricius
- Case number
- 74042/2014
More details
- Court
- North Gauteng High Court, Pretoria
- Panel
- H.J Fabricius
- Case number
- 74042/2014
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the applicant's evidence of payment via bank guaranteed cheques to the respondent's employees was undisputed and corroborated by documentary evidence. The respondent's defence, based on hearsay and unsupported allegations of fraud involving a third party, was rejected as implausible and inadmissible. The respondent was contractually obliged to deliver the vehicle or, upon cancellation, to repay the deposit. The respondent's failure to do so entitled the applicant to repayment with interest. The court further held that the respondent's conduct warranted a punitive costs order due to the lack of substantiated defence and the improbability of its version.
Court disposition
Application granted in favour of the applicant.
Orders
- Respondent is to repay the applicant the amount of R1.1 million.
- Interest on the sum of R1.1 million at the rate of 15.5% per annum to the date of payment in full, calculated as follows: on R300,000 from 9 April 2014; on R30,000 from 23 April 2014; on R420,000 from 26 June 2014; on R350,000 from 21 July 2014.
- Costs of suit on the scale as between attorney and client.
02
Material facts
Parties
Tando Sonqishe
Applicant Counsel: Adv J. H. LubbeWilly Black Motors (Pty) Ltd t/a Delmas Nissan
Respondent Counsel: Adv P. J. GreylingAmounts and remedies
- Deposit Amount Ordered for Repayment: ZAR 1,100,000
- Interest Rate Per Annum: ZAR 15.5
- Deposit Tranche 1: ZAR 300,000
- Deposit Tranche 2: ZAR 30,000
- Deposit Tranche 3: ZAR 420,000
- Deposit Tranche 4: ZAR 350,000
03
Procedural history
Posture
Civil Application / Opposed Motion for Repayment of Deposit
04
Questions and positions
Legal issues
- 01
Whether the applicant made payment of R1.1 million to the respondent for the purchase of a motor vehicle.
- 02
Whether the respondent is contractually liable to repay the deposit after cancellation of the agreement.
- 03
Whether the respondent's defence based on alleged fraud and hearsay is sustainable.
Party arguments
- Applicant
- The applicant contended that he paid R1.1 million to the respondent via bank guaranteed cheques handed to the respondent's employees, acting within the scope of their employment. The vehicle was not delivered, and the contract was cancelled. He demanded repayment, submitting that the respondent's version was unsupported hearsay and that the cheques were deposited into the respondent's account.
- Respondent
- The respondent argued that no money was received from the applicant, claiming instead that the cheques were deposited by a third party, Mr Mahlangu, who allegedly connived with the respondent's employee, Ms Morereane. The respondent asserted that any actions by Ms Morereane were outside the scope of her employment and amounted to fraud, thus absolving the respondent of liability.
05
Court’s reasoning
Legal principles
- 01
Room Hire Company (Pty) Ltd v Jeppe Street Mansions Ltd 1949 (3) SA 1155 (T) at 116
Where a party's defence is based on inadmissible hearsay and is highly improbable, the court may reject it outright and grant relief without referring the matter to oral evidence.
- 02
K v Minister of Safety and Security 2005 (6) SA 404 (CC)
An employee acting within the course and scope of employment binds the employer, even if the employee subsequently commits a fraud, unless there is clear evidence to the contrary.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the applicant's evidence of payment via bank guaranteed cheques to the respondent's employees was undisputed and corroborated by documentary evidence. The respondent's defence, based on hearsay and unsupported allegations of fraud involving a third party, was rejected as implausible and inadmissible. The respondent was contractually obliged to deliver the vehicle or, upon cancellation, to repay the deposit. The respondent's failure to do so entitled the applicant to repayment with interest. The court further held that the respondent's conduct warranted a punitive costs order due to the lack of substantiated defence and the improbability of its version.
Obiter and limits
- The court expressed strong disapproval of the respondent's defence, noting its reliance on unsubstantiated and implausible allegations.
- The absence of confirmatory affidavits for key aspects of the respondent's version rendered its evidence inadmissible and insufficient to defeat the applicant's claim.
Court disposition
Application granted in favour of the applicant.
- Respondent is to repay the applicant the amount of R1.1 million.
- Interest on the sum of R1.1 million at the rate of 15.5% per annum to the date of payment in full, calculated as follows: on R300,000 from 9 April 2014; on R30,000 from 23 April 2014; on R420,000 from 26 June 2014; on R350,000 from 21 July 2014.
- Costs of suit on the scale as between attorney and client.
Source and reliance status
North Gauteng High Court, Pretoria
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
North Gauteng High Court, Pretoria
Judgment
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG DIVISION, PRETORIA)
Case Number: 74042 / 2014
Date: 11/8/2015
In the matter between:
TANDO
SONQISHE
APPLICANT
And
WILLY BLACK MOTORS (PTY) LTD
RESPONDENT
T
I A DELMAS NISSAN
JUDGMENT
Fabricius J,
1.
In this opposed application the Applicant seeks repayment of R 1.1 million plus
interest plus costs from the Respondent, which amount was paid to the latter as a partial deposit for a motor vehicle. This deposit was paid in four tranches and after a considerable period, when the motor vehicle had not been delivered to him, he cancelled the agreement and demanded return of the money paid. The essence of Respondent's defence is that no moneys were received from the Applicant, and I will elaborate on this defence hereunder.
2.
It was submitted by Applicant's Counsel that the following facts were undisputed:
2.1
Applicant provided the Respondent (at its request) with bank guaranteed cheques totalling the amount claimed. In this context it was Respondent's version that the person to whom the cheques were handed, its salesperson in this transaction. Ms Morereane handed the cheques back to Applicant. No confirmatory affidavit was filed by this salesperson and Applicant's Counsel accordingly submitted that this version constituted inadmissible hearsay evidence. I agree;
2.2
Respondent's employees (the said Ms Morereane, and a Mr Adendorf) accepted the said bank guaranteed cheques and at all relevant times acted within the course and scape of their employment with the Respondent. I may just add at this stage that Respondent's Counsel was of the view that Ms Morereane had committed a fraud on them and upon Applicant, and this could not have been within the scope of her employment. See however: K vs Minister of Safety and Security 2005 (6) SA 404 CC. In any event however, when Ms Morereane accepted the particular cheques, she clearly acted as salesperson of Respondent.
2.3
All the bank guaranteed cheques were paid into the bank account of the Respondent and, conversely, debited against the Applicant's bank account;
2.4
The contract with the Respondent was cancelled.
3.
Issues to be decided:
Applicant's Counsel said that I had to decide the following issues, and could do so on the papers and there was no necessity to refer the matter for the hearing of oral evidence.
3.1
Did Applicant make payment of the amount claimed to the Respondent? In this context the
Applicant's evidence that he handed the various cheques to Respondent's employees (Ms Morereane and Mr Adendorf) was undisputed. Respondent's version in this particular context was that it was paid into the bank account under the name of a certain Mr Mahlangu who apparently connived with the said Ms Morereane. In his answering affidavit it said Mr Mahlangu deposited the cheques into the Respondent's bank account under the pretence that he was the interested person in acquiring certain access from Respondent. Respondent's version in this regard, namely that Ms Morereane handed the cheques back to the Applicant and a certain Mr Mahlangu thereafter convinced Applicant to hand the cheques over to him and that he would handle the deposit on Applicant's behalf was not supported by confirmatory affidavits and constitutes hearsay evidence. The Applicant's evidence that he handed the particular cheques to Respondent's employees is in my view undisputed. Even if the allegation that the cheques were handed back to Applicant was allowed to stand in the absence of any confirmatory affidavit, it is so highly improbable that it stands to be rejected outright. Why would the Applicant transact with a Mr Mahlangu, who was not employed by Respondent and hand him cheques made payable to the Respondent? I agree that this is so unlikely I cannot find that it did occur in the absence of confirmation at least.
Is Respondent liable in contract?:
Applicant's Counsel said that his claim against Respondent was founded on contract. It was concluded between Applicant and Respondent's salespersons, a number of cheques were handed over to those salespersons and as a result Respondent was obliged to perform by handing over within a reasonable period, the particular vehicle. This was not done and it is common cause that Applicant thereafter cancelled the agreement.
4.
Respondent's case, as I have said, is simply that no moneys were received from Applicant, but were received by way of a Mahlangu deposit. A copy of four cheques appears in the founding affidavit as annexures. They indicate that cheques were marked not negotiable, and were made payable to Delmas Nissan, and at the bottom of page 24, which reflects a cheque dated 2 6 June 2014 in the amount of R 2 20 000 made payable to Delmas Nissan, a stamp appears signed by Ms Morereane on the same day "original seen and copied by me". The same stamp and signature by Ms Morereane appears on page 2 5. The stamp of Delmas Nissan also appears thereon. Certain of some of the bank statements of the Applicant also indicate that some of these amounts were debited to his account.
5.
The defence of Respondent is on one hand based on inadmissible hearsay
evidence, and on the other is so implausible that considering Applicant's version and annexures that he has presented in support
thereof, I am able to reject it outright. See: Room Hire Company (Pty) Ltd vs Jeppe Street Mansions Ltd 1949 (3) SA 1155 (T) at 116. There are dozens of decided cases to the same effect and where a litigant's defence is so implausible or unlikely, I am entitled to reject it, and find in favour of an Applicant without referring the matter to oral evidence. The defence is in fact absurd, to put it mildly. Whatever Ms Morereane did together with Mr Mahlangu cannot defeat Applicant's claim in this particular context, but in any event there is also no admissible evidence what they in fact did. Further, it must be accepted that Applicant had never heard of the particular Mahlangu until informed by Respondent's Attorney after the cancellation of the agreement.
Accordingly the following order is made:
1. Respondent is to repay Appl icant the amount of R 1.1 million with interest thereon as follows:
2. Interest on the sum of R 1.1 million at the rate of 15.5% per annum to the date of payment in full, and calculated as follows :-
2.1 On the amount of R 300 000-00 from 9th April 2014;
2.2 On the amount of R 30 000-00 from 23rd April 2014;
2.3 On the amount of R 420 000-00 from 26th June 2014; and
2.4 On the amount of R 350 000-00 from 21 July 2014;
3. Costs of suit on the scale as between Attorney and client.
As far as costs are concerned according to my discretion, I have decided that there is no reason why the Applicant should be out of pocket in this particular context. Respondent's defence is based on unsubstantiated evidence on the one hand, and on implausible allegations on the other. To indicate my strong
disapproval of its defence herein, I am entitled to make a punitive cost order.
_______
JUDGE H.J FABRICIUS
JUDGE OF THE GAUTENG HIGH COURT, PRETORIA DIVISION
Case number: 74042 /14
Counsel for the Applicant:
Adv J. H. Lubbe
Instructed by:
Sarlie & Ismail Inc Attorneys
Counsel for the Respondent:
Adv P. J. Greyling
Instructed by:
Odendaal & Kruger Attorneys
Date of Hearing: 5 August 2015
Date of Judgment: 11 August 2015 at 10:00
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