Valodia v Cooper Bezuidenhout Inc and Others (2387/2013) [2013] ZAFSHC 171 (26 September 2013)
- Citation
- [2013] ZAFSHC 171
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Free State High Court, Bloemfontein
- Panel
- P.J.T. De Wet
- Case number
- 2387/2013
More details
- Court
- Free State High Court, Bloemfontein
- Panel
- P.J.T. De Wet
- Case number
- 2387/2013
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found no conduct by the applicant that would justify a departure from the Shifren-principle, and held that the parties were bound by the terms of their written agreement, including the non-variation clause. The respondents' argument that the applicant and the Haripersad Family Trust were acting in concert was unsupported by facts in the affidavits and amounted to speculation. The court did not impose an onus on the respondents but merely found that there was insufficient factual basis for their allegations. After considering the facts, judgment, and arguments, the court concluded that there were no reasonable prospects of success on appeal.
Court disposition
Application for leave to appeal dismissed; costs awarded against the second, third, and fourth respondents.
Orders
- The application for leave to appeal is dismissed.
- The second, third and fourth respondents are ordered to pay the costs of the application.
02
Material facts
Parties
Hassan Mahomed Valodia
Applicant Counsel: Adv P.U. FischerCooper Bezuidenhout Incorporated
RespondentDonovan Theodore Majiedt N.O.
Respondent Counsel: Adv SteynBrian Itumeleng Nakedi N.O.
Respondent Counsel: Adv SteynNorman Klein N.O.
Respondent Counsel: Adv SteynJaichand Haripersad N.O.
RespondentVidhiawathie Haripersad N.O.
RespondentThe Master of the Free State High Court
Respondent03
Procedural history
Posture
Leave to Appeal / Application for Leave to Appeal Following Judgment Dated 29 August 2013.
04
Questions and positions
Legal issues
- 01
Whether the non-variation clause in the written agreement (clause 22) precluded oral amendment or departure from the contract terms.
- 02
Whether public policy justified a departure from the Shifren-principle in the circumstances of the case.
- 03
Whether the court imposed an onus on the respondents to prove that the applicant and the Haripersad Family Trust were acting in concert.
- 04
Whether there are reasonable prospects of success on appeal.
Party arguments
- Applicant
- The applicant argued that the written agreement, including the non-variation clause, was binding and that no conduct justified a departure from the Shifren-principle. The applicant denied any collusion with the Haripersad Family Trust and maintained that the respondents' suspicions were unsupported by facts in the affidavits.
- Respondent
- The respondents focused on the applicability of the non-variation clause, contending that public policy and precedent justified a departure from the Shifren-principle. They argued that the applicant and the Haripersad Family Trust were acting in concert and that the court wrongly imposed an onus on them to prove this allegation.
05
Court’s reasoning
Legal principles
- 01
Brisley v Drotsky 2002 (4) SA 1 (SCA)
A non-variation clause in a written agreement is generally enforceable and precludes oral amendment unless public policy demands otherwise.
- 02
Nyandeni Local Municipality v Hlazo 2010 (4) SA 261 (ECM); GF v SH and Others 2011 (3) SA 25 (GNP); Steyn and Another v Karee Kloof Melkery (Pty) Ltd (unreported) SGJ case number 2009/45448
Departure from the Shifren-principle may be justified only where public policy demands it, as determined by the facts of the case.
- 03
Janit v Van den Heever and Another NNO (No 2) 2001 (1) SA 1062 (WLD)
Leave to appeal should only be granted if there are reasonable prospects that the appeal might succeed.
06
Ratio, limits and disposition
Ratio decidendi
The court found no conduct by the applicant that would justify a departure from the Shifren-principle, and held that the parties were bound by the terms of their written agreement, including the non-variation clause. The respondents' argument that the applicant and the Haripersad Family Trust were acting in concert was unsupported by facts in the affidavits and amounted to speculation. The court did not impose an onus on the respondents but merely found that there was insufficient factual basis for their allegations. After considering the facts, judgment, and arguments, the court concluded that there were no reasonable prospects of success on appeal.
Obiter and limits
- The summary judgment cases cited by respondents are distinguishable as they concern a remedy with unique attributes and do not alter the application of the non-variation clause in this context.
- Good faith is a fundamental principle underlying contract law, but contracts freely and seriously entered into by competent parties are enforced in the public interest.
Court disposition
Application for leave to appeal dismissed; costs awarded against the second, third, and fourth respondents.
- The application for leave to appeal is dismissed.
- The second, third and fourth respondents are ordered to pay the costs of the application.
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
FREE STATE HIGH COURT, BLOEMFONTEIN
REPUBLIC OF SOUTH
AFRICA
Case No. : 2387/2013
In the matter between:-
HASSAN MAHOMED
VALODIA ...................................................Applicant
and
COOPER BEZUIDENHOUT INCORPORATED ...............First Respondent
DONOVAN THEODORE MAJIEDT N.O. .....................Second Respondent
BRIAN ITUMELENG NAKEDI N.O. .................................Third Respondent
NORMAN KLEIN N.O. ...................................................Fourth Respondent
JAICHAND HARIPERSAD N.O. .......................................Fifth Respondent
VIDHIAWATHIE HARIPERSAD N.O. ..............................Sixth Respondent
THE MASTER OF THE
FREE STATE
HIGH COURT ..............................................................Seventh Respondent
___________
HEARD ON: 20 SEPTEMBER 2013
JUDGMENT BY: DE WET, AJ
DELIVERED: 26 SEPTEMBER 2013
[1] The second, third and fourth respondents apply for leave to appeal against the judgment dated 29 August 2013 on numerous grounds as set out in their notice of application for leave to appeal dated 3 September 2013.
[2] I considered each and every one of the grounds, but deals only with the ones explicitly relied on by respondents’ counsel during argument.
[3] In argument respondents’ counsel without abandoning any of the grounds of appeal concentrated mainly on the applicability of the non-variation clause in the written agreement between the parties (clause 22) and referred the court inter alia to the cases of Nyandeni Local Municipality v Hlazo 2010 (4) SA 261 (ECM), GF v SH and Others 2011 (3) SA 25 (GNP), Steyn and Another v Karee Kloof Melkery (Pty) Ltd (unreported) SGJ case number 2009/45448, Nedbank Bpk v Pickor Thirty One Bk and Others (unreported) FSB case number 6137/2009 and Absa Bank Ltd v Malherbe (unreported) FSB case number 5077/2012.
[4] The Free State High Court cases above are distinguishable from the present matter as both deal with summary judgment which is a remedy with its own unique attributes. Van Zyl J states in the Nedbank Bpk matter, supra, that the oral amendment of the written agreement has to be accepted as a defence “for purposes of summary judgment procedure”.
[5] The cases of Nyandeni Local Municipality, heavily relied on by counsel for respondents and the cases of GF v SH and Others and Steyn and Another, supra, all dealt with circumstances where the demands and the requirements of public policy justified a departure from the Shifren-principle (according to the judges).
[6] In Brisley v Drotsky 2002 (4) SA 1 (HHA) the majority of judges dealt fully with an argument that the Shifren-principle could not be enforced “omdat dit in die omstandighede onredelik, onbillik en in stryd met die beginsels van bona fides (goeie trou) is”.
[7] The learned judges dealt fully with good faith and came to the conclusion “goeie trou is ‘n grondbeginsel wat in die algemeen onderliggend is aan die Kontraktereg en wat uiting vind in die besondere reëls en beginsels daarvan”. The learned judges then proceed to point out that “’n ander waarde onderliggend aan die Kontraktereg is dat kontrakte wat vrylik en in alle erns deur bevoegde partye aangegaan is, in die openbare belang afgedwing word. Die taak van die howe is om hierdie waardes wat soms met mekaar in botsing kom teen mekaar op te weeg en om by geleentheid wanneer dit nodig blyk te wees… aanpassings te maak”. See also De Villies v McKay NO and Another [2008] ZASCA 16; 2008 (4) SA 161 (SCA) 163 C – D.
[8] I found on the evidence no conduct by the applicant that justify a departure from the firmly entrenched Shifren-principle and I am satisfied that the parties were bound by the terms of their written agreement.
[9] The judgment was further criticised by counsel for respondents stating that the court’s finding that the evidence relied on by respondents, namely that applicant and the Haripersad Family Trust were in cahoots, was not sufficient to allow the court to make such a finding, was wrong and that it in fact imposed an onus on the respondents to prove the allegations.
[10] The argument is not correct. The court placed no onus whatsoever on the respondents. What the court tried to convey in the judgment was only that there were no facts in the opposing affidavits on which the court could find that applicant was in cahoots with the respondents. The suspicion referred to is a deduction from the facts made by counsel for respondents in argument not supported by facts in the opposing affidavit and nothing more than speculation at its best.
[11] I carefully considered the facts in the affidavits, the judgment and the arguments of counsel and I also bear in the mind the remarks of Cloete J in Janit v Van den Heever and Another NNO (No 2) 2001 (1) SA 1062 (WLD) 1065:
“If the decision against which leave to appeal is sought is wrong, leave to appeal can be granted on petition; but it is not for a lower Court to sanction appeal proceedings unless there are reasonable prospects that the appeal might succeed.”
[12] I came to the conclusion that there are no reasonable prospects of success on appeal and I according make the following order:
1. The application for leave to appeal is dismissed.
2. The second, third and fourth respondents are ordered to pay the costs of the application.
____
P.J.T. DE WET, AJ
On behalf of applicant: Adv P.U. Fischer
Instructed by:
Lovius Block Attorneys
BLOEMFONTEIN
On behalf of second, third
and fourth respondents: Adv Steyn
Christo Dippenaar Attorneys
/spieterse
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