Van Heerden and Others v Suidwes Landbou (Edms) Beperk and Another (370/2008) [2008] ZAFSHC 56 (26 June 2008)
- Citation
- [2008] ZAFSHC 56
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Free State High Court, Bloemfontein
- Panel
- Hancke, R
- Case number
- 370/2008
More details
- Court
- Free State High Court, Bloemfontein
- Panel
- Hancke, R
- Case number
- 370/2008
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the settlement agreement and cession established an agency relationship between the first applicant and the first respondent. As agent, the first respondent was obliged to account fully for its dealings with the maize, including providing all supporting documents and allowing inspection of its books. The applicants had established a sufficient basis for requiring access to the documents and information to protect their rights, both under the law of agency and the Constitution. The respondents' refusal to disclose the details and supporting documentation was unjustified. The applicants were therefore entitled to delivery of all documents relating to the sale, disclosure of the purchaser's identity, and inspection of the respondents' books. The writ of execution was suspended to allow the applicants to verify the correctness of the outstanding balance. Costs were awarded against the respondents.
Court disposition
Application granted. Orders for delivery of documents, disclosure, inspection, and suspension of writ issued. Costs awarded against respondents.
Orders
- Respondents are ordered to deliver all documents relating to the sale of 3432.871 metric tons of WM1 maize, including invoices, receipts, cheques, deposit slips, proof of bank deposits, cash book entries, ledger entries, and journal entries, to the applicants within seven days of this order.
- Respondents are ordered to disclose to the applicants, within seven days of this order, the identity of the person or entity to whom the maize was sold.
- Applicants are authorised to inspect all respondents' books in which the sale is recorded.
- Respondents are ordered to allow applicants to inspect the books referred to above and to reconcile accounts based on the entries.
- The writ of execution in case 605/2007 is suspended until 30 days after respondents have complied with orders 1–4 above.
- Respondents are ordered to pay the costs of the application.
02
Material facts
Parties
Adriaan Albertus van Heerden
Applicant Counsel: F.W.A. Danzfuss SCAnel Voerkale BK
Applicant Counsel: F.W.A. Danzfuss SCCanal Square Investments 48 (Edms) Beperk
Applicant Counsel: F.W.A. Danzfuss SCSuidwes Landbou (Edms) Beperk
Respondent Counsel: J.P. de Bruin SCSuidwes Nywerhede (Edms) Beperk
Respondent Counsel: J.P. de Bruin SCAmounts and remedies
- Settlement Amount: ZAR 5,150,000
- Maize Sold (metric Tons): 3,432.87
- Maize Price Per Ton: ZAR 1,508
- Transport Differential Per Ton: ZAR 101
- Premium Per Ton: ZAR 5
03
Procedural history
Posture
Urgent Application / Application for Mandatory and Interdictory Relief
04
Questions and positions
Legal issues
- 01
Whether the applicants are entitled to delivery of documents and information relating to the sale of maize by the first respondent.
- 02
Whether the applicants are entitled to inspect the respondents' books regarding the transaction.
- 03
Whether the applicants are entitled to the suspension of the writ of execution pending compliance with the orders for disclosure.
Party arguments
- Applicant
- The applicants argued that a relationship of trust arose from the settlement agreement and cession, entitling them to delivery of all documents and information relating to the sale of maize, as well as inspection of the respondents' books. They contended that the respondents' refusal to disclose details and supporting documents created suspicion of irregularity and that, as principal, they were entitled to full accounting from their agent. They further submitted that access to these documents was necessary to protect their rights under the Constitution.
- Respondent
- The respondents argued that the relationship was merely that of creditor and debtor, not one of trust or agency, and thus imposed no obligation to account or disclose documents. They relied on case law to support the position that no right to inspection or disclosure existed absent a specific contractual or legal basis. They maintained that sufficient information had already been provided and that further documentation was irrelevant in light of the settlement.
05
Court’s reasoning
Legal principles
- 01
HANSA v DINBRO TRUST (PTY), LTD 1949 (2) SA 513 (T) at 514; Bowstead on Agency (10th ed., p. 76)
An agent is obliged to keep and be ready with correct accounts of all dealings and transactions in the course of agency, and to produce all books and documents relating to the principal's affairs for inspection.
- 02
DAVID TRUST AND OTHERS v AEGIS INSURANCE CO LTD AND OTHERS [2000] ZASCA 108; 2000 (3) SA 289 (SCA) at 298, para [20]
The contract of mandate requires the mandatory to act faithfully, honestly, with care and diligence, and to account to the principal for actions taken.
- 03
The Law of South Africa (First Re-issue Vol 17), para 12
Upon receipt of an account, the mandator is entitled to a reasonable opportunity to examine it and the relevant entries in the books kept by the mandatory, and may make extracts or procure assistance.
- 04
Constitution of the Republic of South Africa, 1996; CLUTCHCO (PTY) LTD v DAVIS 2005 (3) SA 486 (SCA) at 491J – 492A; 493C – F
The right of access to information necessary to protect rights is guaranteed under section 32(b) of the Constitution.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the settlement agreement and cession established an agency relationship between the first applicant and the first respondent. As agent, the first respondent was obliged to account fully for its dealings with the maize, including providing all supporting documents and allowing inspection of its books. The applicants had established a sufficient basis for requiring access to the documents and information to protect their rights, both under the law of agency and the Constitution. The respondents' refusal to disclose the details and supporting documentation was unjustified. The applicants were therefore entitled to delivery of all documents relating to the sale, disclosure of the purchaser's identity, and inspection of the respondents' books. The writ of execution was suspended to allow the applicants to verify the correctness of the outstanding balance. Costs were awarded against the respondents.
Obiter and limits
- The court noted that the provision of the requested information would be consistent with constitutional principles, as the applicants had demonstrated a need to protect their rights.
- The agency relationship in this context includes both representation and mandate, and the mandatory's duty to account is inherent in such contracts.
- The respondents' evasive conduct in withholding documentation justified the applicants' suspicion and supported the need for judicial intervention.
Court disposition
Application granted. Orders for delivery of documents, disclosure, inspection, and suspension of writ issued. Costs awarded against respondents.
- Respondents are ordered to deliver all documents relating to the sale of 3432.871 metric tons of WM1 maize, including invoices, receipts, cheques, deposit slips, proof of bank deposits, cash book entries, ledger entries, and journal entries, to the applicants within seven days of this order.
- Respondents are ordered to disclose to the applicants, within seven days of this order, the identity of the person or entity to whom the maize was sold.
- Applicants are authorised to inspect all respondents' books in which the sale is recorded.
- Respondents are ordered to allow applicants to inspect the books referred to above and to reconcile accounts based on the entries.
- The writ of execution in case 605/2007 is suspended until 30 days after respondents have complied with orders 1–4 above.
- 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
IN DIE HOOGGEREGSHOF VAN SUID-AFRIKA
(ORANJE VRYSTAATSE PROVINSIALE AFDELING)
Saak Nr. : 370/2008
In die saak tussen:-
ADRIAAN ALBERTUS VAN HEERDEN Eerste Applikant
ANEL VOERKRALE BK Tweede Applikant
CANAL SQUARE INVESTMENTS 48 Derde Applikant
(EDMS)
BEPERK
en
SUIDWES LANDBOU (EDMS) BEPERK Eerste Respondent
SUIDWES NYWERHEDE (EDMS) BEPERK Tweede Respondent
_____________
AANGEHOOR OP: 19 JUNIE 2008
UITSPRAAK DEUR: HANCKE,
R
GELEWER OP: 26 JUNIE 2008
[1] Die applikante hierin vra dat die respondente gelas word om sekere dokumente en inligting aan die applikante beskikbaar te stel.
Benewens die voormelde regshulp vra die applikante verder dat ‘n lasbrief wat uitgereik is in saaknommer 605/2007 tersyde gestel word, alternatiewelik dat die uitvoering of implimentering daarvan opgeskort word tot ‘n datum 30 dae na datum waarop die respondente voldoen het aan die bevele wat in die eerste vier smeekbedes gevra word.
[2] Op 9 Februarie 2007 het die partye ‘n ooreenkoms gesluit ingevolge waarvan hulle sekere Hooggeregshofgedinge en arbitrasieverrigtinge geskik het. Die skikkingsakte is beliggaam in twee dokumente waarvan die inhoud dieselfde is, maar wat namens die onderskeie partye op verskillende plekke onderteken is. Op 12 Februarie 2007 is die skikkingsakte op aansoek van die respondente tot ‘n hofbevel verhef.
[3] In die skikkingsakte onderneem die applikante, gesamentlik en afsonderlik, om die bedrag van R5 150 000,00 aan die eerste respondent te betaal. In die skikkingsakte word eerste respondent gemagtig om sekere mielies te verkoop en die opbrengs daarvan in berekening te bring teen betaling van die bedrag van R5 150 000,00.
[4] Eerste respondent beweer dat dit die mielies verkoop het, maar weier om enige besonderhede van die verkoping aan die applikante bekend te maak. Dit blyk dat selfs die verkoopprys aanvanklik geheim gehou is en van die applikante weerhou is. Op 15 Februarie 2007 word die koopprys vir die eerste keer openbaar, maar weier die respondente steeds om die identiteit van die koper te openbaar of om enige dokumentêre stawing van die koopprys of die datum te verskaf. Ondanks ‘n skrywe van mnr Maree, prokureur van die applikante, dat afskrifte van die brondokumente wat handel met die transaksie, verskaf moet word, is dit die houding van die respondente
“... dat daar reeds voldoende inligting aan u verskaf was en dat die verdere dokumentasie, veral in die lig van die skikking wat hierin aangegaan is, irrelevant is.”
[5] Op 7 Mei 2007 openbaar die respondente se prokureurs vir die eerste keer dat die mielies nie “op SAFEX” verkoop is nie asook dat daar geen skriftelike koopkontrak bestaan nie.
[6] Volgens ‘n skrywe van 15 Februarie 2007 vermeld respondente se prokureur dat 3432,871 metrieke ton WM1 mielies verkoop is volgens SAFEX-prys 12/02/07 vir R1 508,00 per ton minus vervoer differensiaal per ton van R101,00 waarby ‘n premie van R5,00 per ton gevoeg moet word.
[7] Die vraag hierin is of applikante geregtig is op eerstens die brondokumente waarop die opbrengs en uitgawes betrekking het, en tweedens om insae te kry in respondente se boeke, waarin die verkoping aangeteken is. Dit is die applikante se saak dat daar ‘n vertrouensverhouding tussen eerste applikant en eerste respondent tot stand gekom het op grond waarvan hulle bogemelde reg verkry het.
[8] Mnr De Bruin, namens die respondente, het betoog dat die verhouding tussen die partye ‘n gewone skuldeiser/skuldenaars verhouding is en dat daar dus geen vertrouensverhouding bestaan het wat enige verpligting op die respondente geplaas het om rekenskap van die transaksies te gee nie. In hierdie verband het hy gesteun op VICTOR PRODUCTS (S A) (PTY) LTD v LATEULERE MANUFACTURING (PTY) LTD 1975 (1) SA 961 (W) te 963; ABSA BANK BPK v JANSE VAN RENSBURG 2002 (3) SA 701 (HHA) te par. [16]. Hy het verder betoog dat daar nêrens ‘n bewering op die stukke gemaak is hoekom applikante geregtig is om insae in die dokumentasie te hê nie. Dit blyk egter uit die applikante se stukke dat hulle nie tevrede was met die besonderhede van die transaksie wat geopenbaar was nie, dat die respondente se ontwykende houding voldoende was om applikante agterdogtig te maak, asook dat uit die feit dat die respondente die begeleidende dokumentasie geheim gehou het, die applikante die afleiding gemaak het dat die mielies op onreëlmatige wyse verkoop is.
[9] Die verhouding tussen die partye word bepaal deur twee dokumente. Eerstens, die skikkingsakte waarvan die tersaaklike klousule soos volg lui:
“1.
Die verweerders onderneem om gesamentlik en afsonderlik die bedrag van R5 150 000,00 (VYF MILJOEN EEN HONDERD EN VYFTIG DUISEND RAND) aan Suidwes Landbou (Edms) Bpk h/a Suidwesfin (Suidwes) te betaal op die wyse en tye hierna uiteengesit.
2.
Adriaan Albertus van Heerden (“Van Heerden”), die eerste verweerder in saaknommer 177/2005 magtig hiermee vir Suidwes om, in terme van die hierna genoemde sessie, alle mielies wat tans in die silos van Suidwes gehou word in die naam van Van Heerden, sonder enige versuim te verkoop teen die SAFEX prys wat vir sodanige mielies verkry kan word asof Van Heerden dit self op SAFEX verkoop het.
3.
Die verkoopprys van die mielies soos hierintevore bedoel, word in berekening gebring teen die bedrag van R5 150 000.00 ooreenkomstig die sessie wat Van Heerden op 30 Augustus 2004 ten gunste van Suidwes verly het.”
[10] Tweedens, is die sessie van belang, waar die tersaaklike klousule soos volg lui:
“5. Uit hoofde van sodanige sessie, magtig ek hiermee die maatskappy om die opbrengs of ander teenprestasie in die naam van die maatskappy op te vorder, om enige sodanige teenprestasie te gelde te maak en om alle gelde aldus verhaal nadat alle onkostes verbonde aan die verhaal daarvan daarteen in verrekening gebring is, teen my bogenoemde rekening te krediteer ter vermindering van my aanspreeklikheid
teenoor die maatskappy.”
[11] Die vraag ontstaan nou of eerste respondent as agent opgetree het toe dit die mielies verkoop het. Ten opsigte van die omskrywing van agent verklaar Wille’s Principles of South African Law (8ste Uitgawe) op p. 592 die volgende:
“An agent is a person who, by performing juristic acts for and on behalf of another person, known as his principal, places the latter in legal relations with third persons. A juristic act is one whereby a legal relationship is created, altered or discharged. Hence, to put it more fully, an agent is a person who for and on behalf of a principal performs one or more of the following acts: he acquires, enforces, or extinguishes rights against third persons, or incurs, performs, or discharges obligations in favour of third persons.”
[12] Ten opsigte van die verskillende soorte agente, verklaar Wille a.w. p. 594 die volgende:
“The term ‘agent’ is often applied indiscriminately to denote any person who performs some act on behalf of another, and who thus in a sense ‘represents’
the other. These ‘agents’ are then classified according to the nature of the acts which they perform. In fact, however, many of these ‘agents’ are not strictly agents at all since they lack the power to bind their principals, which is the hallmark of agency.”
[13] Dit is van belang om daarop te let dat die skikkingsooreenkoms magtiging verleen aan die eerste respondent om die mielies te verkoop. Wat die sessie betref, magtig dit die eerste respondent om die opbrengs van die mielies te verhaal en die applikante se rekening daarmee te krediteer. Die kooptransaksie kom dus tot stand tussen eerste applikant en die koper en die eerste respondent verkry die reg om die koopprys in die plek van die eerste applikant vanaf die koper te vorder. Die eerste respondent se optrede voldoen dus aan die omskrywing van agent, soos hierbo vermeld.
[14] Die resultaat daarvan is dat die eerste respondent as agent van die eerste applikant sekere verpligtinge opdoen wat onder andere insluit die verpligting om die prinsipaal toe te laat om sy boeke en alle bewysstukke, wat ter saaklik is, te inspekteer. In HANSA v DINBRO TRUST (PTY), LTD 1949 (2) SA 513 (T) verklaar Millin, R op 514 die volgende:
“... the plaintiff insists that he has a legal right to get the relief that I have mentioned. That he has that right is very clear from the authorities. I believe the law as it prevails both here and in England is correctly set out in Article 46 of Bowstead on Agency (10th ed., p. 76). It is there said - I shall only read what is material -
'It is the duty of every agent (b) to preserve and be constantly ready with correct accounts of all his dealings and transactions in the course of his agency; (c) to produce to the principal, or to a proper person appointed by the principal, all books and documents in his hands relating to the principal's affairs.'
That is what the applicant is asking and what prima facie he is entitled to.”
Vergelyk ook JACOBSOHN v SIMON AND PIENAAR 1938 TPD 116 te 120; DOYLE AND ANOTHER v FLEET MOTORS PE (PTY) LTD 1971 (3) SA 760 (A) te 762E – H; RELLAMS (PTY) LTD v JAMES BROWN & HAMER LTD 1983 (1) SA 556 (N) te 560H – 561A; Amler’s Precedents of Pleadings (6de Uitgawe) deur L T C Harms, p. 4 – 5.
[15] Agentskap sluit beide verteenwoordiging en lasgewing in. Wille a.w. p.
592. Die huidige kontrak kan ook as ‘n lasgewingskontrak of ‘n mandatum beskryf word. In hierdie verband verklaar Nienaber, A.R. in DAVID TRUST AND OTHERS v AEGIS INSURANCE CO LTD AND OTHERS [2000] ZASCA 108; 2000 (3) SA 289 (HHA) te 298, par. [20] die volgende:
“The contract is one of mandate. The mandate given by each plaintiff to Katz Salber was to invest and administer funds entrusted to it by the plaintiff concerned and collected by it from the plaintiff’s debtors. These funds were to be invested in a bank, in this case Investec and Trust Bank respectively. It is one of the naturalia of each such contract, as it is of contracts of mandate in general, that the mandatory is obliged, first, to perform his functions
faithfully, honestly, and with care and diligence and secondly, to account to his principals for his actions.”
(My beklemtoning.)
[16] Wat die regte van die mandator betref, word in The Law of South Africa, (First Re-issue Vol 17) onder redaksie van Joubert) teenoor par. 12 die volgende verklaar:
“Upon receipt of the account the madator is entitled to a reasonable opportunity to examine it for purposes of ascertaining its correctness. He may also examine the relevant entries in the books kept by the mandatory insofar as they contain information relating to the execution of the mandate. In addition he may make extracts and, if he deems it necessary, procure the services of an accountant or other qualified person to assist him.
Once the mandator has ratified the account, he is entitled to receive whatever is reflected as being due to him; by the same token he is obliged to give the mandatory whatever is shown to be due to him.”
[17] Die beskikbaarstelling van die aangevraagde inligting sal in ooreenstemming wees met die Grondwet, aangesien die applikante ‘n voldoende basis gelê het dat hierdie inligting benodig word om hulle regte te beskerm. Artikel 32(b) van die Grondwet 108 van 1996;
CLUTCHCO (PTY) LTD v DAVIS 2005 (3) SA 486 (HHA) te 491J – 492A; 493C – F; The Bill of Rights Handbook (5de Uitgawe) deur I Currie en J de Waal, p. 688 e.v.
[18] Dit volg dus uit hoofde van die voorgaande dat applikante geregtig is op beide lewering van die aangevraagde dokumentasie, asook insae in die tersake boeke, uit hoofde van die feit dat eerste respondent as agent of lashebber opgetree het van die applikante.
[19] Wat smeekbede 5 betref naamlik die regshulp dat die lasbrief tersyde gestel word, het mnr Danzfuss, namens die applikante, gevra vir die alternatiewe gedeelte van die smeekbede, naamlik dat die uitvoering en implimentering daarvan opgeskort word vir ‘n sekere tydperk. Na my mening is dit reg en billik dat gehoor gegee word aan hierdie versoek ten einde applikante in staat te stel om hulle te vergewis omtrent die korrektheid van die uitstaande balans aan die hand van die betrokke bewysstukke en ander dokumentasie. Hofreël 45(A); LE ROUX v YSKOR LANDGOED (EDMS) BPK EN ANDERE 1984 (4) SA 252(T) te 257B – D; WHITFIELD v VAN AARDE 1993 (1) SA 332 (OK) te 337G - H; ROAD ACCIDENT FUND v STRYDOM 2001 (1) SA 292 (K) te 300B.
[20] Bygevolg word die volgende bevele verleen:
1. Die respondente word gelas om alle dokumente wat betrekking het op die verkoping van die eerste applikant se 3432,871 metrieke ton WM1 mielies gereflekteer word, insluitende tersaaklike fakture, kwitansies, tjeks, depositostrokies, bewyse van bankinbetalings, kasboekinskrywings, grootboek- inskrywings,
joernaal-inskrywings, aan die applikant te lewer binne sewe dae vanaf datum van hierdie bevel.
2. Dat die respondent gelas word om binne sewe dae vanaf datum van hierdie bevel aan applikante te openbaar die identiteit van die persoon of instansie aan wie die mielies in die voorafgaande paragraaf vermeld, verkoop is.
3. Dat applikant gemagtig word om vir doeleindes van inspeksie, insae te neem in al respondente se boeke waarin die gemelde verkoping aangeteken is.
4. Dat respondent gelas word om applikante toe te laat om vir inspeksie insae te neem in die boeke waarna in die voorafgaande paragraaf
verwys word en om na aanleiding van die inskrywings in die boeke aan applikante te verreken.
5. Dat die lasbrief tot uitwinning in saak 605/2007 opgeskort word tot ‘n datum 30 dae na die datum waarop respondente voldoen het aan die bevele 1 – 4 hierbo.
6. Die respondente word gelas om die koste van die aansoek te betaal.
____
S.P.B. HANCKE, R
Namens die applikante: Adv. F.W.A. Danzfuss SC
In opdrag van:
Schoeman Maree Ingelyf
BLOEMFONTEIN
Namens die respondente: Adv. J.P. de Bruin SC
Symington & De Kok
/sp
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