Strydom and Kroqwana Construction CC v MEC for Human Settlements Eastern Cape and Another (3010/2016) [2017] ZAECGHC 11 (9 February 2017)

Strydom and Kroqwana Construction CC v MEC for Human Settlements Eastern Cape and Another (3010/2016) [2017] ZAECGHC 11 (9 February 2017)

The court found that the plaintiff, as a bona fide third party, was entitled to rely on the Turquand rule and presume that the internal requirements of the municipality had been properly observed. The first defendant's defence, based on alleged lack of authorisation for the Deed of Cession, was not bona fide or good in law because such internal matters could not prejudice the plaintiff, who had performed under the contract and was not privy to the internal arrangements between the defendants. The court held that the plaintiff cannot be expected to ascertain whether the signatory to the Deed of Cession was authorised, as that knowledge is peculiar to the defendants. The summary judgment...

Citation
[2017] ZAECGHC 11
Parties
Applicant: Strydom and Kroqwana Construction CC; Respondent: MEC for Human Settlements Eastern Cape; Respondent: Koukamma Local Municipality
Court
Eastern Cape High Court, Grahamstown
Jurisdiction
South Africa
Judgment Date
9 February 2017
Case Number
3010/2016
Procedural Posture
Summary Judgment Application / Application for Summary Judgment Following Defended Summons
Outcome
Summary judgment granted in favour of the plaintiff against the first defendant for payment of the claimed amount.
Judges
M Makaula
Legal Topics
Summary Judgment, Turquand Rule, Deed of Cession, Municipal Contracts
Civil Procedure Commercial and Corporate Summary Judgment Turquand Rule Deed of Cession Municipal Contracts

Case Brief

Summary, issues, holding and outcome

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Parties

Strydom and Kroqwana Construction CC

Applicant

MEC for Human Settlements Eastern Cape

Respondent

Koukamma Local Municipality

Respondent

Procedural Posture

Summary Judgment Application / Application for Summary Judgment Following Defended Summons

Legal Issues

  1. 1 Whether the Deed of Cession signed between the plaintiff and the second defendant is valid and enforceable against the first defendant.
  2. 2 Whether the first defendant has disclosed a bona fide defence that is good in law to resist summary judgment.
  3. 3 Whether the Turquand rule applies to the internal authorisation issues raised by the first defendant.

Ratio Decidendi

The court found that the plaintiff, as a bona fide third party, was entitled to rely on the Turquand rule and presume that the internal requirements of the municipality had been properly observed. The first defendant's defence, based on alleged lack of authorisation for the Deed of Cession, was not bona fide or good in law because such internal matters could not prejudice the plaintiff, who had performed under the contract and was not privy to the internal arrangements between the defendants. The court held that the plaintiff cannot be expected to ascertain whether the signatory to the Deed of Cession was authorised, as that knowledge is peculiar to the defendants. The summary judgment...

Court Disposition

Summary judgment granted in favour of the plaintiff against the first defendant for payment of the claimed amount.

Orders

  • Summary judgment is granted in favour of the plaintiff against the first defendant for payment of R1 105 772.50.
  • Interest on the aforesaid amount at a rate of 10.25% per annum from the date of judgment until the date of payment.