Transnet Ltd v Sechaba Photoscan (Pty) Ltd (98/03) [2004] ZASCA 24; 2005 (1) SA 299 (SCA) (1 April 2004)

Transnet Ltd v Sechaba Photoscan (Pty) Ltd (98/03) [2004] ZASCA 24; 2005 (1) SA 299 (SCA) (1 April 2004)

The Supreme Court of Appeal held that, in cases of fraudulent deprivation of a contract, loss of prospective profits is a compensable patrimonial loss in delict. The court rejected the appellant's reliance on the distinction between positive and negative interesse, finding that the comparative method of assessing damages encompasses loss of profits where the claimant's patrimony is impaired. The court found no legal or factual bar to awarding damages for loss of profits in this context. Oral evidence regarding service level agreements was properly admitted and uncontested at trial, and the purchase price was a capital item not to be deducted from the damages, as the evidence showed the...

Citation
[2004] ZASCA 24
Parties
Appellant: Transnet Limited; Respondent: Sechaba Photoscan (Pty) Ltd
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
1 April 2004
Case Number
98/03
Procedural Posture
Civil Appeal / Appeal From High Court (johannesburg) on Quantum of Damages
Outcome
Appeal dismissed with costs, including costs of two counsel where employed.
Judges
Howie, Zulman, Farlam, Lewis, Van Heerden
Legal Topics
Fraudulent Tender Process, Loss of Profits, Quantification of Damages, Negative and Positive Interesse, Public Procurement, Patrimonial Loss
Delict Civil Procedure Commercial and Corporate Fraudulent Tender Process Loss of Profits Quantification of Damages Negative and Positive Interesse Public Procurement +1 more

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Parties

Transnet Limited

Appellant

Sechaba Photoscan (Pty) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court (johannesburg) on Quantum of Damages

Legal Issues

  1. 1 Whether loss of prospective profits is compensable as delictual damages in the context of a fraudulent public tender process.
  2. 2 Whether oral evidence regarding service level agreements was admissible for quantifying damages.
  3. 3 Whether the purchase price of the business should be deducted from the damages awarded.

Ratio Decidendi

The Supreme Court of Appeal held that, in cases of fraudulent deprivation of a contract, loss of prospective profits is a compensable patrimonial loss in delict. The court rejected the appellant's reliance on the distinction between positive and negative interesse, finding that the comparative method of assessing damages encompasses loss of profits where the claimant's patrimony is impaired. The court found no legal or factual bar to awarding damages for loss of profits in this context. Oral evidence regarding service level agreements was properly admitted and uncontested at trial, and the purchase price was a capital item not to be deducted from the damages, as the evidence showed the...

Court Disposition

Appeal dismissed with costs, including costs of two counsel where employed.

Orders

  • The appeal is dismissed.
  • The respondent is awarded costs, including the costs of two counsel where applicable.