Unitrans Motors (Edms) h/a Algoa Motors v Botha NO en Andere (5019/2003) [2005] ZAFSHC 50 (19 May 2005)
- Citation
- [2005] ZAFSHC 50
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Free State High Court, Bloemfontein
- Panel
- Beckley R
- Case number
- 5019/2003
More details
- Court
- Free State High Court, Bloemfontein
- Panel
- Beckley R
- Case number
- 5019/2003
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the applicant, by entrusting the vehicle to Senekal Toyota for display and sale, created a representation that Senekal Toyota was entitled to dispose of the bakkie. This representation was made negligently, as the applicant anticipated the possibility of sale before payment but failed to take adequate precautions. The respondents, acting in good faith, relied on this representation and paid the full purchase price, thereby acting to their detriment. The requirements for estoppel as set out in Oakland Nominees v Gelria Mining Investment were satisfied. Consequently, the applicant is estopped from asserting ownership against the respondents, and the claim for delivery of the vehicle is dismissed.
Court disposition
The applicant's claim is dismissed with costs.
Orders
- The applicant's claim for delivery of the Toyota bakkie is dismissed.
- The applicant is ordered to pay the costs of the respondents.
02
Material facts
Parties
Unitrans Motors (Edms) Bpk h/a Algoa Toyota
Applicant Counsel: A WilliamsHendrik Willem Botha N.O.
Respondent Counsel: A H BurgerWillem Gabriël Botha N.O.
Respondent Counsel: A H BurgerJacomina Susanna Botha N.O.
Respondent Counsel: A H Burger03
Procedural history
Posture
Civil Trial / First Instance
04
Questions and positions
Legal issues
- 01
Whether the applicant is estopped from asserting ownership of the Toyota bakkie against the respondents.
- 02
Whether the conduct of the applicant amounted to a negligent representation enabling Senekal Toyota to dispose of the vehicle.
- 03
Whether the requirements for estoppel as set out in Oakland Nominees v Gelria Mining Investment are satisfied.
Party arguments
- Applicant
- The applicant claims ownership of the Toyota bakkie and seeks its delivery from the respondents, alleging that the respondents are unlawfully in possession. The applicant contends that Senekal Toyota, a dealer, was entrusted with the vehicle for display or sale, but ownership was reserved until payment. The applicant argues that since payment was never received, ownership did not pass and the respondents cannot claim title.
- Respondent
- The respondents, acting as trustees of the Bokkie Besigheidstrust, assert that they purchased the bakkie in good faith from Senekal Toyota and paid the full purchase price. They rely on estoppel, arguing that the applicant's conduct enabled Senekal Toyota to appear as owner or entitled to dispose of the vehicle, and that they acted to their detriment based on this representation.
05
Court’s reasoning
Legal principles
- 01
Oakland Nominees (Pty) Ltd v Gelria Mining Investment Co (Pty) Ltd 1976 (1) SA 441 (A)
Estoppel prevents an owner from asserting rights to property where, by the owner's negligence, a third party is misled into believing the seller is entitled to dispose of the property.
- 02
Oakland Nominees (Pty) Ltd v Gelria Mining Investment Co (Pty) Ltd 1976 (1) SA 441 (A)
For estoppel to apply, there must be a representation by the owner, made negligently, relied upon by the third party, causing detriment.
- 03
Electrolux (Pty) Ltd v Khota and Another 1961 (4) SA 244 (W)
Entrusting possession and indicia of ownership or jus disponendi to a dealer may constitute a representation sufficient for estoppel.
- 04
Konstanz Properties (Pty) Ltd v Wm Spilhaus & Kie (WP) Bpk [1996] ZASCA 28; 1996 (3) SA 273 (A)
Where goods are supplied to a retailer with knowledge that they will be sold to the public, the owner may be estopped from asserting ownership against an innocent purchaser.
- 05
Quenty's Motors (Pty) Ltd v Standard Credit Corporation Ltd [1994] ZASCA 41; 1994 (3) SA 188 (A)
A purchaser who pays the full price in good faith and relies on the dealer's apparent authority may acquire ownership despite the original owner's reservation of title.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the applicant, by entrusting the vehicle to Senekal Toyota for display and sale, created a representation that Senekal Toyota was entitled to dispose of the bakkie. This representation was made negligently, as the applicant anticipated the possibility of sale before payment but failed to take adequate precautions. The respondents, acting in good faith, relied on this representation and paid the full purchase price, thereby acting to their detriment. The requirements for estoppel as set out in Oakland Nominees v Gelria Mining Investment were satisfied. Consequently, the applicant is estopped from asserting ownership against the respondents, and the claim for delivery of the vehicle is dismissed.
Obiter and limits
- The court noted that it is common practice for motor dealers to display vehicles for sale and that ownership is often reserved until payment, but such reservation does not protect the owner against innocent third parties where estoppel applies.
- The court emphasized that the failure to take precautions against foreseeable risks, such as sale before payment, constitutes negligence sufficient to ground estoppel.
Court disposition
The applicant's claim is dismissed with costs.
- The applicant's claim for delivery of the Toyota bakkie is dismissed.
- The applicant is ordered to pay the costs of the respondents.
Source and reliance status
Free State High Court, Bloemfontein
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Free State High Court, Bloemfontein
Judgment
IN DIE HOOGGEREGSHOF VAN SUID-AFRIKA
(ORANJE VRYSTAATSE PROVINSIALE AFDELING)
Saak Nr. : 5019/2003
In die saak tussen:
UNITRANS MOTORS (EDMS) BPK h/a Eiser
ALGOA
TOYOTA
en
HENDRIK WILLEM BOTHA N.O. 1ste Verweerder
WILLEM GABRIëL BOTHA N.O. 2de Verweerder
JACOMINA SUSANNA BOTHA N.O. 3de Verweerder
_____________
CORAM: BECKLEY
R
AANGEHOOR OP: 10, 11, 13 MEI 2005
UITSPRAAK: BECKLEY
R
GELEWER OP: 19 MEI 2005
[1] In hierdie aangeleentheid vorder die eiser lewering van ân Toyota bakkie vanaf die verweerder, aangesien die eiser beweer dat hy die eienaar van die betrokke bakkie is en die verweerders onregmatiglik in besit daarvan is. Die verweer wat deur die verweerders geopper is, is een van estoppel.
[2] Die getuienis, namens die eiser, was slegs die van Mev. Botes, die eiser se verkoopsbestuurderes. Haar getuienis is tot die effek dat ene Venter, die eienaar of bestuurder van Senekal Toyota, haar aan die begin van Oktober 2003 geskakel het en navraag gedoen het oor die beskikbaarheid van ân wit Toyota bakkie. Nadat sy hom meegedeel het dat die eiser wel ân bakkie in voorraad het wat voldoen aan die beskrywing van die bakkie waarna hy gesoek het, is ooreengekom dat die betrokke bakkie na Bloemfontein geneem sou word, dat Venter dit aldaar in besit sou neem en dat hy dan wanneer hy in besit daarvan geplaas word, ân tjek oorhandig vir die koopprys van die betrokke bakkie. Nadat die bakkie in Bloemfontein arriveer het, is sy telefonies meegedeel deur Venter dat hy nie sy tjekboek byderhand het nie, maar dat hy die volgende werksdag, d.w.s Maandag 6 Oktober 2003, die koopprys aan die eiser sal oorbetaal. Aangesien sy tevore met Senekal Toyota transaksies gehad het en Senekal Toyota ân goedgekeurde Toyota handelaar was, het sy nie probleme gehad om toe te stem dat die koopprys eers die eerskomende Maandag oorbetaal sou word nie en dat hy intussen die betrokke bakkie vanaf Bloemfontein na Senekal mag neem. Die betrokke Maandag het Venter nagelaat om die koopsom oor te betaal, en, ondanks die feit dat Botes driemaal met hom telefonies in verbinding getree het m.b.t
betaling, en Venter by elke geleentheid een of ander verskoning gehad het, is die koopprys nooit aan die eiser oorbetaal nie en is Senekal Toyota gedurende Julie 2004 gelikwideer. Volgens Botha mag Senekal Toyota nie die bakkie verkoop het alvorens dit betaal is nie, aangesien eiendomsreg voorbehou is volgens ân algemene praktyksreël totdat die koopprys betaal is. Tydens kruisondervraging het Mev. Botes toegegee dat sy geweet het dat Venter en/of Senekal Toyota die betrokke bakkie in sy vertoonlokaal sal tentoonstel of dat hy dit aan ân koper sal lewer sodra dit gekoop is.
[3] Die getuienis van ene Botha, ân trustee van die Bokkie Besigheidstrust, is tot die effek dat hy en twee van sy familie die enigste trustees is van die Bokkie Besigheidstrust. Hy en sy familielede het reeds voorheen bakkies by Senekal Toyota aangekoop, en gedurende September 2003 het hy weereens navraag gedoen oor ân nuwe wit Toyota bakkie. Aangesien hy en sy eggenote kort daarna na die Kaap moes vertrek, wou hy graag dringend die bakkie in ontvangs neem. Venter het hom meegedeel dat hy ân bakkie vir hom sal vind wat voldoen aan die beskrywing wat hy aan Venter verskaf het. Tydens ân latere geleentheid, terwyl hy, Botha, nog steeds in die Kaap was, het hy ân telefoonoproep vanaf Venter ontvang waartydens hy meegedeel is dat laasgenoemde inderdaad ân bakkie gekry het. Daar was ân gesprek rakende bykomstighede en, na sy terugkeer, het hy dit op 16 Oktober 2003 in ontvangs geneem. Die dag nadat hy dit in ontvangs geneem het, is die koopprys ten volle betaal aan Senekal Toyota. Hy het aanvaar dat die Bokkie Besigheidstrust na betaling van die koopprys inderdaad die eienaar van die bakkie geword het.
[4] Op ân latere stadium, vermoedelik in November 2003, het hy ân telefoonoproep ontvang van ân persoon wat hom meegedeel het dat hy ân prokureur is in die Kaap en dat die Bokkie Trust nie die eienaar van die betrokke Toyota voertuig is nie. Hy het Venter daarmee gekonfronteer, waarop Venter onderneem het om dit âuit te sorteerâ. Botha het voorts getuig dat hy aanvaar het dat Senekal Toyota die eienaar van die betrokke bakkie was en het volhard dat die eienaar nie die eienaar daarvan was nie toe hy dit in Oktober 2003 vanaf Senekal Toyota aangekoop het.
[5] Die enigste vraag wat beslis moet word, is of die eiser se aksie afgeweer kan word met estoppel. Die regsposisie is uiteengesit deur Holmes AR in OAKLAND NOMINEES (PTY) LTD v GELRIA MINING INVESTMENT CO (PTY) LTD 1976 (1) SA 441 (A) te 452 A en verder waar dit as volg uiteengesit is:
âOur law jealously protects the right of ownership and the correlative right of the owner in regard to his property, unless, of course, the possessor has some enforceable right against the owner. Consistent with this, it has been authoritatively laid down by this Court that an owner is estopped from asserting his rights to his property only â
(a) where the person who acquired his property did so because, by the culpa of the owner, he was misled into the belief that the person, from whom acquired it, was the owner or was entitled to dispose of it; â¦â¦
As to (a), supra, it may be stated that the owner will be frustrated by estoppel upon proof of the following requirements â
There must be a representation by the owner, by conduct or otherwise, that the person who disposed of his property was the owner of it or was entitled to dispose of itâ¦â¦..
The representation must have been made negligently in the circumstances.
The representation must have been relied upon by the person raising the estoppel.
Such person reliance upon the representation must be the cause of his acting to his detriment.â
[6] Wat die eerste vereiste betref, nl. die voorstelling, het Trollip R dit in
ELECTROLUX (PTY) LTD v KHOTA AND ANOTHER 1961 (4) SA 244 (W) as volg uiteengesit:
âTo give rise to the representation of dominium or jus disponendi, the ownerâs conduct must be not only the entrusting of possession to the possessor but also the entrusting of it with the indicia of the dominium or jus disponendi â¦â¦.. Such indicia may be the actual manner or circumstances in which the owner allows the possessor to possess the articles, as for example, the owner/wholesaler allowing the retailer to exhibit the articles in question for sale with his other stock in trade.â
Vergelyk ook die benadering van Nicholas WAR, soos hy destyds was, in QUENTYâS MOTORS (PTY) LTD v STANDARD CREDIT CORPORATION LTD [1994] ZASCA 41; 1994 (3) SA 188 (A) te 199 G â 200 C en die benadering van Cloete AR in CONCOR HOLDINGS (PTY) LTD t/a CONCOR TECHNICRETE v POTGIETER 2004 (6) SA 491 (A).
[7] Wat die tweede vereiste betref, naamlik, dat die voorstelling op ân skuldige (nalatige) wyse gemaak is, is die benadering van Nienaber AR in
KONSTANZ PROPERTIES (PTY) LTD v Wm SPILHAUS & KIE (WP) BPK [1996] ZASCA 28; 1996 (3) SA 273 (A) insiggewend, ondanks die feit dat die goedere in daardie saak teen krediet aan die kleinhandelaar verskaf is, en dat die bakkie in casu nie deur ân groothandelaar aan ân kleinhandelaar verskaf is nie, maar deur kleinhandelaars onderling. Laasgenoemde verskil is, vir doeleindes van die onderhawige saak, irrelevant, soos Mnr. Williams, namens die eiser, tereg toegegee het. Op bladsy 286 E tot 286 G behandel Nienaber AR dit as volg:
âDit is wel so dat ân eienaar nie sy eiendomsreg in gedrang bring bloot deur dit aan ân ander se sorg of besit toe te vertrou nie........
Heelwat meer word verlang alvorens daar van estoppel sprake kan wees. Hier was daar juis iets meer. ân Groothandelaar verskaf goedere teen krediet aan ân kleinhandelaar terwyl hy weet dat dit laasgenoemde se bedryf is om die goedere op sy beurt aan lede van die publiek te verkoop. Myns insiens, is dit analoog met die geval waar ân eienaar toelaat dat sy saak deel word van die handelsware van ân openbare verkoper wat dit na verwagting en in die gewone loop van sake aan lede van die publiek van die hand sit. Onder daardie omstandighede is meermale in ons reg beslis dat die eienaar verhinder word om hom teenoor ân onskuldige derde wat die saak van die handelaar koop, op sy eiendomsreg te beroep.â
Dieselfde beginsel is ook van toepassing in die onderhawige saak wat deur Nienaber AR geopper word te p. 288 B â D:
âDeur die goedere aan Pumps for Africa, ân kleinhandelaar, te verskaf in die wete dat dit van laasgenoemde se handelsvoorraad deel word, en as sodanig vryelik en in die gewone loop van sake vervreembaar sou wees, maak die respondent deur sy gedrag, myns insiens, die voorstelling aan enige klant van die kleinhandelaar wat die goed koop dat die handelaar oor die bevoegdheid beskik om eiendomsreg daarin aan die koper oor te dra.â
[8] Dit moet natuurlik in gedagte gehou word dat Botes se onbetwiste getuienis was dat sy aanvaar het dat Venter namens Senekal Toyota die voertuig gaan vertoon of aan ân koper oorhandig en dat die eiser nie voorsorg tref dat die voertuig nie intussen (m.a.w voordat die eiser betaal is) verkoop word nie, desondanks die feit dat eiser voorsien het dat dit kan gebeur. Dit is immers vanselfsprekend dat ân motorhandelaar nie ân voertuig aankoop om weg te steek of nie te koop aan te bied nie. Dit pas in by die benadering van Nienaber AR in die KONSTANZ saak, supra, te p. 288 G â I:
âPumps for Africa was geregtig om die artikels in die gewone loop van sy sake te vervreem selfs voordat betaling daarvan nog deur hom aan die respondent gemaak is. Die respondent was bewus van die moontlikheid dat Pumps for Africa dalk nie sy skuld sou vereffen nie. Juis daarom is eiendomsreg voorbehou. Maar die voorbehoud van eiendomsreg skep die verdere voorsienbare moontlikheid waarteen nie gewaak is nie, dat 'n niksvermoedende klant van Pumps for Africa soos die appellant die betrokke artikels koop en daarvoor betaal menende dat hy deur lewering eienaar sou word. Vandaar die nalatigheid en vandaar die estoppel.â
[9] Rakende die twee laaste vereistes gestel deur Holmes, AR, in die OAKLAND saak, supra, meen ek dat dit vanselfsprekend is dat Botha, handelende namens die verweerder, tot die verweerder se nadeel gehandel het deur die bakkie vanaf Senekal Toyota te koop, terwyl dit steeds die eiendom van die eiser was. Vergelyk in hierdie verband ABSA BANK BEPERK v RAMAKATANE AND ANOTHER 2001 (1) ALL SA p. 559 te p. 567 b â c.
[10] Ek is bygevolg oortuig dat die vereistes in die OAKLAND saak, supra, vir die suksesvolle beroep op estoppel, bewys is en dat, soos gepleit, die eiser estop moet word om hom op sy eiendomsreg te beroep.
Bygevolg word die eiser se vordering afgewys met koste.
___
A.P. BECKLEY, R
Namens die eiser: Adv A Williams
In opdrag van:
Webbers
BLOEMFONTEIN
Namens die verweerders: Adv A H Burger
In opdrag van:
Callis Prokureurs
/sp
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