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South Africa Judgment

South Gauteng High Court, Johannesburg

Sunbird Estate Body Corporate v Homeprop Property Group (22529/2018) [2019] ZAGPJHC 49 (22 February 2019)

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Source document

01

Holding and result

The court found that the applicant did not need to approach the court to obtain the outcome it ultimately achieved, as a simple request for an affidavit from the respondent would have resolved the matter without litigation. The applicant's dissatisfaction with the respondent's initial response did not justify launching the application, especially since the respondent complied with the request for an affidavit when it was eventually made. Accordingly, the applicant was responsible for unnecessarily incurring legal costs and should bear them.

Court disposition

Application for costs determined against the applicant.

Orders

  • The applicant shall pay the costs of the application.

02

Material facts

Parties

Sunbird Estate Body Corporate

Applicant Counsel: C Van der Linde

Homeprop Property Group

Respondent Counsel: J M Bezuidenhout

03

Procedural history

  1. Posture

    Civil Application / Costs Determination After Settlement

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that the respondent failed to furnish all requested accounting records and accused the respondent of financial impropriety. The applicant maintained that only two boxes of documents were delivered and that the respondent had not provided an affidavit confirming it did not possess the outstanding documents. The applicant sought to recover costs, asserting its actions were justified by the respondent's alleged lack of cooperation.
Respondent
The respondent contended that it had delivered all documents belonging to the applicant, both during and at the end of the contractual relationship, and supported this with photographic evidence. The respondent argued that the applicant's request for an affidavit was only made on the day of the hearing and that it complied promptly. The respondent maintained that the application was unnecessary and that the applicant should bear the costs.

05

Court’s reasoning

  1. 01

    General South African costs jurisprudence

    Ordinarily, costs follow the result, but where the merits are not adjudicated, the conduct of the parties and necessity of litigation are decisive.

  2. 02

    General South African civil procedure

    A party should not approach the court unnecessarily when a simple request could resolve the dispute.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the applicant did not need to approach the court to obtain the outcome it ultimately achieved, as a simple request for an affidavit from the respondent would have resolved the matter without litigation. The applicant's dissatisfaction with the respondent's initial response did not justify launching the application, especially since the respondent complied with the request for an affidavit when it was eventually made. Accordingly, the applicant was responsible for unnecessarily incurring legal costs and should bear them.

Obiter and limits

  • The court was not privy to the settlement discussions between the parties and did not participate in them.
  • The applicant shifted its stance regarding the documents sought after the respondent provided photographic evidence of delivery.

Court disposition

Application for costs determined against the applicant.

  • The applicant shall pay the costs of the application.

Source and reliance status

South Gauteng High Court, Johannesburg

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Judgment text

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Source document

South Gauteng High Court, Johannesburg

Judgment

[2019] ZAGPJHC 49

REPUBLIC OF SOUTH AFRICA

IN THE HIGH COURT OF SOUTH AFRICA

GAUTENG LOCAL DIVISION,

JOHANNESBURG

CASE NO: 22529/2018

In the matter between:

SUNBIRD

ESTATE BODY CORPORATE Applicant

and

HOMEPROP

PROPERTY GROUP Respondent

J U D G M E N T

MODIBA J:

[1] The applicant sought an order compelling the respondent to furnish certain accounting records to it. The only issue the court is required to rule on is that of costs, the main dispute having been settled between the parties.

[2] The dispute between the parties germinates from the breakdown of a contractual relationship in terms of which the respondent provided property management services to the applicant, a sectional title scheme.

[3] Ordinarily in legal disputes, costs follow the course. This matter is peculiar in that the court did not rule on the merits. When addressing the court on costs, the parties resorted to the issues that arose in the main dispute. It is on that basis that the court will determine liability for costs.

[4] Although the applicant came to court to compel the respondent to furnish documents, in its papers, it accused the respondent of financial impropriety. This became the central dispute between the parties. The respondent’s basis for opposition is that it has furnished to the applicant, all documents belonging to the applicant. The applicant contends that only two boxes containing documents were delivered to it. When the respondent furnished evidence in its answering affidavit in the form of pictures, that it delivered more than two boxes of documents to the applicant, the applicant shifted stance to say the documents it seeks were not part of the documents delivered to it by the respondent.

[5] In chambers when I discussed the prospects of settlement with the parties, counsel for the applicant expressed the applicant’s

discontentment with the respondent’s grounds of opposition, and complained that the respondent has not filed an affidavit that it does not have the documents that the applicant seeks. The matter stood down for two days while the parties attempted to settle. It is pertinent to mention that I was not part of these discussion and am not privy to them. The subsequently respondent furnished the said affidavit. Counsel for the parties then approached the court to rule on the question of costs.

[6] It was pertinent from the respondent’s response in correspondence exchanged between the parties prior to the application being launched, that the respondent has furnished the applicant with all its documents, during the course of their contractual relationship in the form of management packs, and at the end of their relationship when the respondent caused documents to be delivered to the applicant. The applicant did not find the respondent’s response satisfactory but never requested it to depose to an affidavit that it does not have the requested documents. It only advanced this request on the day of hearing. The respondent duly complied with the request.

[7] On the evidence before me, it appeared that the applicant did not have to come to court for the outcome it achieved in the end. A simple request to the respondent to depose to an affidavit as aforesaid, would have quashed the dispute.

[8] Under these circumstances, it is appropriate that the applicant bears the costs.

[9] I therefore make the following order:

1. The applicant shall pay the costs of the application.

________

MADAM

JUSTICE L

T MODIBA

JUDGE OF THE

HIGH COURT

GAUTENG LOCAL DIVISION, JOHANNESBURG

Counsel for applicant: Advocate C Van der Linde

Attorney for applicant: Knowles Hussain Lindsay Inc.

Counsel for respondent: Advocate J M Bezuidenhout

Attorney for respondent: Nicholas Malherbe Attorneys

Date heard:

7 February 2019

Date of judgment: 22 February 2019

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