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South Africa Judgment

North Gauteng High Court, Pretoria

Thompson and Another v Heinsen and Another (A691/2016) [2019] ZAGPPHC 359 (10 July 2019)

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Source document

01

Holding and result

The court found that the issues raised by the applicants had already been addressed in the initial judgment, which clearly distinguished between the claims against each respondent and explained the absence of liability for the first respondent. The respondents' arguments were found to have merit, particularly regarding the lack of pleading for breach of mandate and the first respondent's non-involvement in the settlement agreement. However, the court accepted that the ground relating to the ostensible existence of a dispute of fact justified the granting of leave to appeal, as it met the threshold set out in section 17(1) of the Superior Courts Act.

Court disposition

Application for leave to appeal granted on the ground relating to the ostensible existence of a dispute of fact.

Orders

  • Leave to appeal is granted on the ground raised in paragraph 11 of the application for leave to appeal.

02

Material facts

Parties

Catherine Helen Thompson

Applicant Counsel: T P Kruger

Couples Investment CC

Applicant Counsel: T P Kruger

Krugel Heinsen

Respondent Counsel: J S Griesel

First Rand Bank Limited

Respondent Counsel: G Van Den Burg

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal Following Dismissal of Initial Application

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants argued that the court failed to consider two separate claims and dismissed the entire application instead of dealing with each claim individually. They contended that the first respondent was not a party to the agreement between the applicants and the second respondent, and thus should not have been dismissed on that basis. The applicants further argued that the first respondent breached the mandate by negligently paying out money on demand of the second respondent's attorneys. They asserted that the second respondent's failure to immediately reinstate the contract upon realising its mistake amounted to resiling from the contract. Finally, they submitted that the court erred in finding a dispute of fact and dismissing the claim based on its ostensible existence.
Respondent
The respondents opposed the application for leave to appeal, arguing that the court had properly delineated between the claims against each respondent and explained why no liability accrued to the first respondent. They maintained that the first respondent was not a party to the settlement agreement and that the cause of action for breach of mandate was not properly pleaded. The respondents asserted that the grounds raised by the applicants did not meet the threshold for granting leave to appeal under section 17(1) of the Superior Courts Act.

05

Court’s reasoning

  1. 01

    Section 17(1) of the Superior Courts Act 10 of 2013

    Leave to appeal may only be granted where the judge is of the opinion that the appeal would have a reasonable prospect of success or there is some other compelling reason for the appeal to be heard.

  2. 02

    The Mont Chevaux Trust v Tina Goosen & 18 Others 2014 JDR 2325 (LCC)

    The threshold for granting leave to appeal has been raised; it is now only granted in the circumstances set out in section 17(1), requiring a measure of certainty that another court will differ from the court whose judgment is sought to be appealed.

  3. 03

    Commissioner of Inland Revenue v Tuck 1989 (4) SA 888 (T)

    Previously, the test for leave to appeal was whether there were reasonable prospects that another court may come to a different conclusion.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the issues raised by the applicants had already been addressed in the initial judgment, which clearly distinguished between the claims against each respondent and explained the absence of liability for the first respondent. The respondents' arguments were found to have merit, particularly regarding the lack of pleading for breach of mandate and the first respondent's non-involvement in the settlement agreement. However, the court accepted that the ground relating to the ostensible existence of a dispute of fact justified the granting of leave to appeal, as it met the threshold set out in section 17(1) of the Superior Courts Act.

Obiter and limits

  • The threshold for granting leave to appeal under the Superior Courts Act is higher than under previous legislation.
  • The court must be satisfied that there is a reasonable prospect of success or another compelling reason for the appeal to be heard.

Court disposition

Application for leave to appeal granted on the ground relating to the ostensible existence of a dispute of fact.

  • Leave to appeal is granted on the ground raised in paragraph 11 of the application for leave to appeal.

Source and reliance status

North Gauteng High Court, Pretoria

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Judgment reading view

Judgment text

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Source document

North Gauteng High Court, Pretoria

Judgment

[2019] ZAGPPHC 359

REPUBLIC

OF SOUTH AFRICA

IN

THE HIGH COURT OF SOUTH AFRICA

GAUTENG LOCAL DIVISION, PRETORIA

(1) REPORTABLE: YES/NO

(2) OF INTEREST TO OTHER JUDGES: YES/NO

(3) REVISED.

CASE NO: A 691/2016

10/7/2019

In the matter between:

CATHERINE HELEN THOMPSON

1st APPLICANT

COUPLES

INVESTMENT CC

2ND APPLICANT

And

KRUGEL

HEINSEN

1st

RESPONDENTFIRST

RAND BANK LIMITED

2ND

RESPONDENT

JUDGMENT

NAIR AJ

[1] The applicant applies for leave to appeal following the dismissal of the application on 4 January 2019.

[2] Section 17 of the Superior Courts Act 10 of 2013 stipulates:

17. (1) Leave to appeal may only be given where the judge or judges concerned are of the opinion that -

(a) (i) the appeal would have a reasonable prospect of success; or

(ii) There is some other compelling reason why the appeal should be heard, including conflicting judgements on the matter under consideration;

(b) the decision sought on appeal does not fall within the ambit of section16(2)(a); and. The section which deals with circumstances in which leave to appeal may be granted is section 17 (1) of the Superior Courts Act 10 of 2013 (the Superior Courts Act).

[3] In SOUTH AFRICAN BREWERIES (PTY) LTD ("SAB") and THE

COMMISSIONER OF THE SOUTH AFRICAN REVENUE SERVICES ("SARS (3234/15) [2017] ZAGPPHC 340 ...) Hughes J states as follows

"What specifically relevant in this case, is section 17 (1) (a). For easy reference I set out section 17 (1) in its entirety below: "( 1) Leave to appeal may only be given where the judge or judges concerned are of the opinion that- (a) (i) the appeal would have a reasonable prospect of success; or (ii) there is some other compelling reason why the appeal should be heard, including conflicting judgments on the matter under consideration; (b) the decision sought on appeal does not fall within the ambit of section 16 (2) (a); and (c) where the decision sought to be appealed does not dispose of all the issues in the case, the appeal would lead to a just and prompt resolution of the real issues between the parties." [My emphasis] 2 [5] The test which was applied previously in applications of this nature was whether there were reasonable prospects that another court may come to a different conclusion. See Commissioner of Inland Revenue v Tuck 1989 (4) SA 888 (T) at 8908. What emerges from section 17 (1) is that the threshold to grant a party leave to appeal has been raised. It is now

only granted in the circumstances set out and is deduced from the words 'only' used in the said section. See The Mont Chevaux Trust v Tina Goosen & 18 Others 2014 JDR 2325 (LCC) at para [6], Bertelsmann J held as follow: "It is clear that the threshold

for granting leave to appeal against a judgment of a High Court has been raised in the new Act. The former test whether leave to appeal should be granted was a reasonable prospect that another court might come to a different conclusion, see Van Heerden v Cronwright & Others 1985 (2) SA 342 (T) at 343H. The use of the word "would" in the new statute indicates a measure of certainty that another court will differ from the court whose iudgment is sought to be appealed against." [My emphasis} [6] The entire argument of SARS is centred upon the first ground

[4] The main grounds of appeal as set out in the application for leave to appeal are:

4.1 The court failed to consider that there were two separate claims and dismissed the entire application instead of dealing with the claims individually.

4.2 The court erred in dismissing the applicants claim against the first respondent because the first respondent was not a party to the agreement between the applicants and second respondent.

4.3 The court erred in not funding that the first respondent had breached the mandate by negligently paying out the money on demand of the second respondents attorneys.

4.4 The court lost sight of the fact that the proceedings were instituted against the second respondent.

4.5 The court should have found that the failure by the second respondent to immediately reinstate the contract upon realising its mistake

amounted to resiling from the contract.

4.6 The court also erred in conducting there was a dispute of fact in respect of the question whether the second respondent had acted intentionally and erroneously and then dismissing the claim based on the istensible existence of a dispute of fact.

[5] The court indeed dealt with the issues raised in the application for leave to appeal during the judgment and explained why no liability

accrued to the first respondent. The judgment also clearly delineates between the two respondents and the claim against each party.

[6] The application for leave to appeal was opposed by the first and second respondent and I find merit in both respondents' counsel arguments. Of importance is the fact that there were two agreements in issue. The order sought for breach of the settlement agreement is indeed sought against both respondents. From the settlement agreement it is clear that the first respondent was not party to same. In respect of the mandate between the applicant and the first respondent, the cause has not been pleaded that he breached this agreement was not negligence pleaded.

[7] I am however of the view that the ground mentioned in paragraph 11 of the application for leave to appeal being that the court erred in dismissing the claim based on the ostensible existence of a dispute of fact justifies the granting of the application based on the test set out above.

ORDER

[7.1] Having heard the argument presented by both counsel, the application for leave to appeal is granted on the ground raised in paragraph 11 of the application for leave to appeal.

DESMOND

NAIR

ACTING JUDGE : HIGH COURT

PRETORIA

CASE: : A 691/2016

APPEARANCES

COUNSEL

FOR THE APPLICANT

: T P

KRUGER

INSTRUCTED BY

: JACO ROOS

ATTORNEYS

COUNSEL

FOR FIRST RESPONDENT : J S GRIESEL

INSTRUCTED BY

: SAVAGE JOOSTE AND ADAMS

COUNSEL FOR SECOND RESPONDENT : G VAN DEN

BURG

INSTRUCTED BY

: RORICH

WOLMARANS

DATE

OF HEARING

DATE

OF JUDGMENT

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

South African Breweries (Pty) Ltd v Commissioner of the South African Revenue Services (3234/15) [2017] ZAGPPHC 340

Case cited

The Mont Chevaux Trust v Tina Goosen & 18 Others 2014 JDR 2325 (LCC)

Case cited

Commissioner of Inland Revenue v Tuck 1989 (4) SA 888 (T)

Case cited

Van Heerden v Cronwright & Others 1985 (2) SA 342 (T)

Case cited

Superior Courts Act 10 of 2013

Legislation

Legislation referenced in the available case record.

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