TR Eagle Air (Pty) Ltd and Another v Thompson (A206/2018) [2020] ZAGPPHC 801 (13 November 2020)

TR Eagle Air (Pty) Ltd and Another v Thompson (A206/2018) [2020] ZAGPPHC 801 (13 November 2020)

The court held that Rule 49(13)(a) is peremptory and places an obligation on the appellants to provide security for the respondent’s costs on appeal. The appellants failed to comply with this requirement and did not seek condonation or provide an explanation for noncompliance. The respondent did not waive his right to security, nor did the court release the appellants from the obligation. The court found that the failure to provide security was material and prejudicial to the respondent. Although arguments on the merits were heard, the noncompliance with Rule 49(13)(a) could not be condoned. Consequently, the appeal was struck off the roll with costs, including costs of senior counsel.

Citation
[2020] ZAGPPHC 801
Parties
Appellant: TR Eagle Air (Pty) Ltd; Appellant: PRT Rudman; Respondent: RW Thompson
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
13 November 2020
Case Number
A206/2018
Procedural Posture
Civil Appeal / Appeal Against Dismissal of Application for Enforcement of Sale of Shares Agreement Warranties
Outcome
Appeal struck off the roll with costs, including costs of senior counsel.
Judges
Tlhapi V V, Mudau T P, Lenyai M M D
Legal Topics
Sale of Shares Agreement, Contractual Warranties, Security for Costs on Appeal, Rule 49 Noncompliance
Commercial and Corporate Civil Procedure Sale of Shares Agreement Contractual Warranties Security for Costs on Appeal Rule 49 Noncompliance

Case Brief

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Parties

TR Eagle Air (Pty) Ltd

Appellant

PRT Rudman

Appellant

RW Thompson

Respondent

Procedural Posture

Civil Appeal / Appeal Against Dismissal of Application for Enforcement of Sale of Shares Agreement Warranties

Legal Issues

  1. 1 Whether the appellants complied with Rule 49(13)(a) of the Uniform Rules of Court regarding security for costs on appeal.
  2. 2 Whether the respondent waived his right to security for costs or the court released the appellants from that obligation.
  3. 3 Whether the factual disputes regarding the sale of shares agreement and alleged breach of warranties could be resolved on affidavit.

Ratio Decidendi

The court held that Rule 49(13)(a) is peremptory and places an obligation on the appellants to provide security for the respondent’s costs on appeal. The appellants failed to comply with this requirement and did not seek condonation or provide an explanation for noncompliance. The respondent did not waive his right to security, nor did the court release the appellants from the obligation. The court found that the failure to provide security was material and prejudicial to the respondent. Although arguments on the merits were heard, the noncompliance with Rule 49(13)(a) could not be condoned. Consequently, the appeal was struck off the roll with costs, including costs of senior counsel.

Court Disposition

Appeal struck off the roll with costs, including costs of senior counsel.

Orders

  • The appeal is struck off the roll with costs, including costs of senior counsel.