Ukuboniswa Logistics And Engineering CC v Johnson Controls Automotives SA (Pty) Ltd (1183/2013) [2016] ZAECPEHC 41 (25 August 2016)

Ukuboniswa Logistics And Engineering CC v Johnson Controls Automotives SA (Pty) Ltd (1183/2013) [2016] ZAECPEHC 41 (25 August 2016)

The court found that the deed of cession executed by the plaintiff in favour of ECDC constituted a complete cession of all rights to claim against the defendant. Clause 2.3 of the deed merely authorised the plaintiff to collect payments as ECDC's representative, not to institute legal proceedings in its own name. Written consent from ECDC did not alter this position, as the plaintiff could only act as agent for ECDC and not as principal. The legal standing to sue upon the contract resided solely with ECDC, and the plaintiff had divested itself of any right to claim from the defendant. Accordingly, the defendant's second special plea was upheld and the plaintiff's claim dismissed.

Citation
[2016] ZAECPEHC 41
Parties
Plaintiff: Ukuboniswa Logistics And Engineering CC; Defendant: Johnson Controls Automotives SA (Pty) Ltd
Court
Eastern Cape High Court, Port Elizabeth
Jurisdiction
South Africa
Judgment Date
25 August 2016
Case Number
1183/2013
Procedural Posture
Civil Trial / Special Plea (separation of Issues; Adjudication of Second Special Plea)
Outcome
Defendant's second special plea is upheld; plaintiff's claim is dismissed with costs.
Judges
N G Beshe
Legal Topics
Cession of Claims, Locus Standi, Agency, Breach of Contract
Commercial and Corporate Cession of Claims Locus Standi Agency Breach of Contract

Case Brief

Summary, issues, holding and outcome

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Parties

Ukuboniswa Logistics And Engineering CC

Plaintiff

Johnson Controls Automotives SA (Pty) Ltd

Defendant

Procedural Posture

Civil Trial / Special Plea (separation of Issues; Adjudication of Second Special Plea)

Legal Issues

  1. 1 Whether the plaintiff has legal standing to institute action against the defendant after ceding its rights to the Eastern Cape Development Corporation.
  2. 2 Whether clause 2.3 of the deed of cession and written consent from ECDC confer locus standi on the plaintiff to sue in its own name.
  3. 3 Whether the plaintiff can sue as agent for the cessionary or only in its own name.

Ratio Decidendi

The court found that the deed of cession executed by the plaintiff in favour of ECDC constituted a complete cession of all rights to claim against the defendant. Clause 2.3 of the deed merely authorised the plaintiff to collect payments as ECDC's representative, not to institute legal proceedings in its own name. Written consent from ECDC did not alter this position, as the plaintiff could only act as agent for ECDC and not as principal. The legal standing to sue upon the contract resided solely with ECDC, and the plaintiff had divested itself of any right to claim from the defendant. Accordingly, the defendant's second special plea was upheld and the plaintiff's claim dismissed.

Court Disposition

Defendant's second special plea is upheld; plaintiff's claim is dismissed with costs.

Orders

  • Defendant's second special plea is upheld.
  • Plaintiff's claim against the defendant is dismissed with costs.