Terminus Centre CC v Henry Mansell (Pty) Ltd and Others (2141/04) [2006] ZAWCHC 1; [2007] 3 All SA 668 (C) (16 January 2006)

Terminus Centre CC v Henry Mansell (Pty) Ltd and Others (2141/04) [2006] ZAWCHC 1; [2007] 3 All SA 668 (C) (16 January 2006)

The court found that the plaintiff had taken reasonable steps to mitigate its damages by entering into a new lease at a market-related rental and that the defendants failed to discharge the onus of proving otherwise. The calculation of damages was accepted as agreed between the parties. Interest on the damages awarded was to accrue from the date of judgment, in accordance with section 2A(3) of the Prescribed Rate of Interest Act, as the claim was prospective in nature. The claim for value-added tax on the damages was reserved pending a ruling from the South African Revenue Services, as the court was not satisfied that VAT was necessarily payable on the award. The plaintiff was entitled to...

Citation
[2006] ZAWCHC 1
Parties
Plaintiff: Terminus Centre CC; Defendant: Henry Mansell (Pty) Ltd; Defendant: Henry Rosser Mansel; Defendant: Garry Mitchell Price; Defendant: Michael Anthony Airey
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
16 January 2006
Case Number
2141/04
Procedural Posture
Civil Trial / Final Judgment
Outcome
Judgment for the plaintiff on the main claim for damages, with interest and costs as specified; judgment reserved on the VAT claim; defendants awarded wasted costs for postponement; defendants' counterclaim for deposit partially granted.
Judges
Van Reenen
Legal Topics
Lease Agreement, Damages for Breach of Contract, Mitigation of Loss, Suretyship, Prescribed Rate of Interest, Value Added Tax Liability
Land and Property Commercial and Corporate Civil Procedure Lease Agreement Damages for Breach of Contract Mitigation of Loss Suretyship Prescribed Rate of Interest +1 more

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Parties

Terminus Centre CC

Plaintiff

Henry Mansell (Pty) Ltd

Defendant

Henry Rosser Mansel

Defendant

Garry Mitchell Price

Defendant

Michael Anthony Airey

Defendant

Procedural Posture

Civil Trial / Final Judgment

Legal Issues

  1. 1 Did the plaintiff take reasonable steps to mitigate its damages resulting from the breach of the lease agreement?
  2. 2 Is the plaintiff entitled to interest on the damages awarded, and from what date should interest accrue?
  3. 3 Is the plaintiff entitled to claim value-added tax on the damages awarded?

Ratio Decidendi

The court found that the plaintiff had taken reasonable steps to mitigate its damages by entering into a new lease at a market-related rental and that the defendants failed to discharge the onus of proving otherwise. The calculation of damages was accepted as agreed between the parties. Interest on the damages awarded was to accrue from the date of judgment, in accordance with section 2A(3) of the Prescribed Rate of Interest Act, as the claim was prospective in nature. The claim for value-added tax on the damages was reserved pending a ruling from the South African Revenue Services, as the court was not satisfied that VAT was necessarily payable on the award. The plaintiff was entitled to...

Court Disposition

Judgment for the plaintiff on the main claim for damages, with interest and costs as specified; judgment reserved on the VAT claim; defendants awarded wasted costs for postponement; defendants' counterclaim for deposit partially granted.

Orders

  • An order rectifying the deed of suretyship in favour of the fourth defendant.
  • Payment of damages in the amount of R204,165.58 by the first, second, third, and fourth defendants jointly and severally, the one paying the other to be absolved.