van Blommestein and Another v East Cape Game Properties (Pty) Ltd and Others (3911/2017) [2018] ZAECGHC 41 (3 April 2018)

van Blommestein and Another v East Cape Game Properties (Pty) Ltd and Others (3911/2017) [2018] ZAECGHC 41 (3 April 2018)

The court found that the second and third defendants raised a bona fide defence based on the requirements of the National Credit Act, specifically the need for the plaintiffs to register as credit providers and to conduct a credit assessment. The defence that the loan may constitute reckless credit under the Act is not without merit and warrants consideration at trial. Accordingly, summary judgment against the second and third defendants is not appropriate. The parties agreed that leave to defend should be granted to the first defendant with costs, and the matter should proceed to trial to determine the issues raised under the National Credit Act.

Citation
[2018] ZAECGHC 41
Parties
Plaintiff: Canzius van Blommestein; Plaintiff: Carol Ann van Blommestein; Defendant: East Cape Game Properties (Pty) Ltd; Defendant: Kevin Eke; Defendant: Beverley Sharon Eke
Court
Eastern Cape High Court, Grahamstown
Jurisdiction
South Africa
Judgment Date
3 April 2018
Case Number
3911/2017
Procedural Posture
Summary Judgment Application / Application for Summary Judgment; Opposition by Defendants; Partial Agreement Reached Regarding First Defendant
Outcome
Summary judgment is refused against the second and third defendants. Leave to defend is granted to all defendants. Costs in respect of the first defendant are to be borne by the plaintiffs for the specified period.
Judges
Bodlani
Legal Topics
Summary Judgment, Acknowledgment of Debt, Suretyship, National Credit Act, Reckless Credit
Civil Procedure Banking and Finance Summary Judgment Acknowledgment of Debt Suretyship National Credit Act Reckless Credit

Case Brief

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Parties

Canzius van Blommestein

Plaintiff

Carol Ann van Blommestein

Plaintiff

East Cape Game Properties (Pty) Ltd

Defendant

Kevin Eke

Defendant

Beverley Sharon Eke

Defendant

Procedural Posture

Summary Judgment Application / Application for Summary Judgment; Opposition by Defendants; Partial Agreement Reached Regarding First Defendant

Legal Issues

  1. 1 Whether summary judgment should be granted against the second and third defendants as co-principal debtors.
  2. 2 Whether the plaintiffs were required to register as credit providers under the National Credit Act.
  3. 3 Whether the loan constituted reckless credit under the National Credit Act and if so, what consequences should follow.

Ratio Decidendi

The court found that the second and third defendants raised a bona fide defence based on the requirements of the National Credit Act, specifically the need for the plaintiffs to register as credit providers and to conduct a credit assessment. The defence that the loan may constitute reckless credit under the Act is not without merit and warrants consideration at trial. Accordingly, summary judgment against the second and third defendants is not appropriate. The parties agreed that leave to defend should be granted to the first defendant with costs, and the matter should proceed to trial to determine the issues raised under the National Credit Act.

Court Disposition

Summary judgment is refused against the second and third defendants. Leave to defend is granted to all defendants. Costs in respect of the first defendant are to be borne by the plaintiffs for the specified period.

Orders

  • Summary judgment is refused against the second and third defendants.
  • Leave to defend is granted to all defendants.