Southern Sun Hotel Corporation (Pty) Ltd v G and W Leases CC (71/97) [1998] ZASCA 100; ; [1999] 1 All SA 497 (A) (26 November 1998)

Southern Sun Hotel Corporation (Pty) Ltd v G and W Leases CC (71/97) [1998] ZASCA 100; ; [1999] 1 All SA 497 (A) (26 November 1998)

The Supreme Court of Appeal found that the respondent failed to discharge the onus of proving the quantum of damages suffered as a result of the appellant's breach. The expert evidence presented did not establish the market value of the leasehold rights on the relevant date, and the reduction in value was primarily due to subsequent occupation by illegal squatters, not the appellant's breach. The court held that it was not entitled to speculate on what the expert's answer might have been had the correct question been asked, and that the respondent did not prove, on a balance of probabilities, the value of the property on 17 January 1994. Accordingly, the respondent's claim for damages...

Citation
[1998] ZASCA 100
Parties
Appellant: Southern Sun Hotel Corporation (Pty) Ltd; Respondent: G and W Leases CC
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
26 November 1998
Case Number
71/97
Procedural Posture
Civil Appeal / Appeal From Cape Provincial Division; Judgment Delivered
Outcome
Appeal upheld with costs; order of absolution from the instance with costs substituted for the order of the court a quo.
Judges
Smalberger, Hoexter, Harms, Schutz, Zulman
Legal Topics
Quantification of Damages, Breach of Lease, Onus of Proof, Loss of Rental
Land and Property Civil Procedure Quantification of Damages Breach of Lease Onus of Proof Loss of Rental

Case Brief

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Parties

Southern Sun Hotel Corporation (Pty) Ltd

Appellant

G and W Leases CC

Respondent

Procedural Posture

Civil Appeal / Appeal From Cape Provincial Division; Judgment Delivered

Legal Issues

  1. 1 Whether the respondent discharged the onus of proving the quantum of damages allegedly suffered due to the appellant's failure to vacate the leased premises on the agreed date.
  2. 2 Whether the respondent proved the market value of the leasehold rights as at 17 January 1994.
  3. 3 Whether the reduction in value of the property was caused by the appellant's breach.

Ratio Decidendi

The Supreme Court of Appeal found that the respondent failed to discharge the onus of proving the quantum of damages suffered as a result of the appellant's breach. The expert evidence presented did not establish the market value of the leasehold rights on the relevant date, and the reduction in value was primarily due to subsequent occupation by illegal squatters, not the appellant's breach. The court held that it was not entitled to speculate on what the expert's answer might have been had the correct question been asked, and that the respondent did not prove, on a balance of probabilities, the value of the property on 17 January 1994. Accordingly, the respondent's claim for damages...

Court Disposition

Appeal upheld with costs; order of absolution from the instance with costs substituted for the order of the court a quo.

Orders

  • The appeal is upheld with costs.
  • The order of the court a quo is set aside and substituted with an order of absolution from the instance with costs.