Szabo v Star Contractors (Pty) Ltd (2009/52823) [2013] ZAGPJHC 147 (13 June 2013)

Szabo v Star Contractors (Pty) Ltd (2009/52823) [2013] ZAGPJHC 147 (13 June 2013)

The court found that the applicant, as the former sole member of the deregistered close corporation, was the only person with a legal interest sufficient to apply for rescission of the judgment. The Foss v Harbottle rule does not bar such intervention where the company no longer exists and no other remedy is available, as recognized by South African law. The judgment was erroneously granted against the wrong close corporation, as the contract underlying the claim predated the CC's existence and the summons was not properly served. The applicant's legal interest was more than merely financial, and the requirements of Rule 42 for rescission were met. Accordingly, the applicant had locus...

Citation
[2013] ZAGPJHC 147
Parties
Applicant: Istvan Szabo; Respondent: Star Contractors (Pty) Ltd
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
13 June 2013
Case Number
2009/52823
Procedural Posture
Rescission Application / Application for Rescission of Default Judgment Under Rule 42
Outcome
Application for rescission granted; default judgment rescinded.
Judges
T.V. Ratshibvumo
Legal Topics
Rescission of Judgment, Locus Standi, Close Corporation Liability, Rule 42 Uniform Rules, Foss V Harbottle Exception
Civil Procedure Commercial and Corporate Rescission of Judgment Locus Standi Close Corporation Liability Rule 42 Uniform Rules Foss V Harbottle Exception

Case Brief

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Parties

Istvan Szabo

Applicant

Star Contractors (Pty) Ltd

Respondent

Procedural Posture

Rescission Application / Application for Rescission of Default Judgment Under Rule 42

Legal Issues

  1. 1 Whether the applicant has locus standi to apply for rescission of the default judgment granted against the close corporation.
  2. 2 Whether the judgment was erroneously granted in terms of Rule 42 of the Uniform Rules of Court.

Ratio Decidendi

The court found that the applicant, as the former sole member of the deregistered close corporation, was the only person with a legal interest sufficient to apply for rescission of the judgment. The Foss v Harbottle rule does not bar such intervention where the company no longer exists and no other remedy is available, as recognized by South African law. The judgment was erroneously granted against the wrong close corporation, as the contract underlying the claim predated the CC's existence and the summons was not properly served. The applicant's legal interest was more than merely financial, and the requirements of Rule 42 for rescission were met. Accordingly, the applicant had locus...

Court Disposition

Application for rescission granted; default judgment rescinded.

Orders

  • The judgment granted on 3 May 2010 (case no. 2009/52823) is rescinded.
  • The respondent is ordered to pay the costs of this application.