Van Rooyen v Trinamic Consulting Engineers (Pty) Ltd and Others (84775/2014) [2016] ZAGPPHC 19 (25 January 2016)
- Citation
- [2016] ZAGPPHC 19
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- North Gauteng High Court, Pretoria
- Panel
- Kganyago
- Case number
- 84775/2014
More details
- Court
- North Gauteng High Court, Pretoria
- Panel
- Kganyago
- Case number
- 84775/2014
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the plaintiff's claim against the second defendant is based on pure economic loss and that there was no contractual relationship between the plaintiff and the second defendant. The contract between the plaintiff and Riverspray defined their respective obligations, and the second defendant was only a subcontractor to Riverspray. The court held that policy considerations do not require the extension of delictual liability to the second defendant in these circumstances. The principles established in Lillicrap and Country Cloud Trading dictate a conservative approach to extending Aquilian liability, especially where a contractual matrix exists. Accordingly, the exception was upheld and the claim against the second defendant was struck out.
Court disposition
Exception upheld; claim against the second defendant struck out; costs awarded to the second defendant.
Orders
- The second defendant's exception is upheld.
- The claim against the second defendant is struck out.
- Plaintiff to pay the second defendant's costs, including the costs of employment of senior counsel.
02
Material facts
Parties
Vincent Van Rooyen
Plaintiff Counsel: TA LL Potgieter SCTrinamic Consulting Engineers (Pty) Ltd
DefendantSolid Building Contracting CC
Defendant Counsel: L J van der Linde SCDashdot Architects
Defendant03
Procedural history
Posture
Exception Application / Exception to Particulars of Claim Under Rule 23(1)
04
Questions and positions
Legal issues
- 01
Does the plaintiff's particulars of claim disclose a cause of action against the second defendant?
- 02
Can a subcontractor be held delictually liable to the plaintiff for pure economic loss in the absence of a direct contractual relationship?
- 03
Should the Aquilian remedy be extended to impose liability on the second defendant in these circumstances?
Party arguments
- Applicant
- The second defendant argued that as a subcontractor, it had no direct contract with the plaintiff and therefore cannot be held liable for damages arising from alleged defective work. It contended that only Riverspray, the main contractor, could exercise contractual remedies against it. The second defendant submitted that recognizing delictual liability in this context would improperly extend warranties to remote parties where a contractual chain exists to regulate rights and obligations.
- Respondent
- The plaintiff conceded there was no contract with the second defendant and that the claim is delictual. He argued that the existence of a contractual matrix does not preclude a delictual claim and that the second defendant, as a joint wrongdoer, should remain a defendant. The plaintiff asserted that excluding the second defendant would allow other defendants to shift blame and that the second defendant's failure to comply with designs and instructions caused the structural defects. He further argued that the plaintiff falls within a foreseeable class of victims and that public policy supports liability for wrongful conduct by builders.
05
Court’s reasoning
Legal principles
- 01
Sun Packing (Pty) Ltd v Vreulink [1996] ZASCA 73; 1996 (4) SA 176 (A)
An excipient must show that, on every reasonable interpretation of the pleading, no cause of action is disclosed.
- 02
Lillicrap, Wassenaar & Partners v Pilkington Brothers 1985 (1) SA 475 (A)
To succeed in a claim for pure economic loss in delict, the plaintiff must allege and prove wrongful and culpable conduct causing patrimonial damage. South African law is conservative in extending Aquilian liability, especially where a contractual relationship exists.
- 03
Country Cloud Trading v MFC, Department of Infrastructure Development 2015 (1) SA 1 (CC)
The law is generally reluctant to recognize pure economic loss claims, particularly where it would extend the law of delict.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the plaintiff's claim against the second defendant is based on pure economic loss and that there was no contractual relationship between the plaintiff and the second defendant. The contract between the plaintiff and Riverspray defined their respective obligations, and the second defendant was only a subcontractor to Riverspray. The court held that policy considerations do not require the extension of delictual liability to the second defendant in these circumstances. The principles established in Lillicrap and Country Cloud Trading dictate a conservative approach to extending Aquilian liability, especially where a contractual matrix exists. Accordingly, the exception was upheld and the claim against the second defendant was struck out.
Obiter and limits
- The mere liquidation of Riverspray does not absolve it from its liabilities to the plaintiff.
- The court should be loath to extend the law of delict in situations where parties have defined their relationships contractually.
- The bonis mores of the community may regard certain conduct as wrongful, but this does not automatically translate into legal liability in the absence of a direct relationship.
Court disposition
Exception upheld; claim against the second defendant struck out; costs awarded to the second defendant.
- The second defendant's exception is upheld.
- The claim against the second defendant is struck out.
- Plaintiff to pay the second defendant's costs, including the costs of employment of senior counsel.
Source and reliance status
North Gauteng High Court, Pretoria
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.
North Gauteng High Court, Pretoria
Judgment
IN THE HIGH COURT OF
SOUTH AFRICA
(GAUTENG DIVISION, PRETORIA)
25/1/16
CASE N0:84775/2014
NOT REPORTABLE
NOT OF INTEREST TO
OTHER JUDGES
REVISED
In the matter between:
VINCENT VAN ROOYEN Plaintiff
And
TRINAMIC CONSULTING ENGINEERS (PTY) LTD 1ST Defendant
SOLID BUILDING
CONTRACTING CC 2ND Defendant
DASHDOT ARCHITECTS 3RD Defendant
JUDGMENT
KGANYAGO, AJ:
[1] This is an exception in terms of s23( 1) of the Uniform Rules of Court, in terms of which the second defendant complains that the plaintiff's claim do not disclose the cause of action. The facts are briefly as follows:- The plaintiff contracted Riverpray Lifestyle Estate (Pty) Ltd ("Riverspray") to construct a house for him. Riverspray in turn subcontracted the three defendants. The first defendant was subcontracted as a structural engineer, the second defendant as a builder, and the third defendant as an architects for designing the house. Riverspray has now been liquidated, and is not a party to the action. The plaintiff alleges that the house built is so defective, and structurally unsound, that it will be demolished and rebuilt. The plaintiff sues the three defendants jointly and severally, alleging that each of them was either individually or jointly and materially responsible for the alleged defects on the house.
[2] On the 6th February 2015, the second defendant served the plaintiff with a notice in terms of rule 23(1) of the Uniform Rules of Court in which it is claimed that the plaintiff's particulars of claim lacks averments necessary to sustain a cause of action. The plaintiff delivered a notice to oppose the second defendant's exception.
[3] The plaintiff does not allege that there was any contractual relationship between him and any of the defendants. He contends, however, that each of the defendants, had a legal duty in respect of all of aspects involved in the construction of the house towards whomsoever would become the owner of the house. Accordingly, the plaintiff's claim against the defendants is a delictual one.
[4] The second defendant contends that as a subcontractor, it had no direct contract with the plaintiff. Accordingly, so asserts the second defendant that the plaintiff cannot recover damages, for alleged defective work directly from it. According to the second defendant, it is only Riverspray which can exercise its contractual remedies against it.
[5] It is trite that in order to succeed, an excipient must persuade the court that upon every interpretation with the pleading in question and, in particular the document on which it is based, can reasonable bear, no cause of action is disclosed, failing this, the exception ought not be upheld. (See Sun Packing (Pty) Ltd v Vreulink [1996] ZASCA 73; 1996 (4) SA 176 (A) at 183 E and Living Hands (Pty) Ltd No and Another v Ditz and Others 2013 (2) SA 368 (GSJ).
[6] In Lillicrap, Wassenaar & Partners v Pilkington Brothers 1985 (1) SA 475(A) the court was faced with a similar situation. The court held that the fundamental question is whether the respondent has alleged sufficient facts to constitute a cause of action for damages in delict. The court held further that in order to succeed on a claim for pecuniary loss the plaintiff must allege and prove that the defendant has been guilty of conduct which is both wrongful and culpable, and which caused a patrimonial damage to the plaintiff. The court also held that our law adopts a conservative approach to the extension of remedies under the lex Acqulia. The court held that it did not consider that policy considerations, require that delictual liability be imposed for negligent breach of a contract of professional employment like in that case, and that it is undesirable to extend the Aquilian action to the duties subsisting between the parties to a contract of a professional service. The relationship of the three parties is still one which has its origin in a contract and their wishes must be respected. (See also Country Cloud Trading v MFC, Department of Infrastructure Development 2015 (1) SA 1 (CC).
[7] In his argument counsel for the second defendant submitted that the recognition of dilictual liability by the second defendant to the plaintiff is not called for in the present case. To do so, argued cousel, would amount to the imposition of dilictual warranties on remote parties under circumstances where there is a contractual chain in existence designed by the parties to regulate their rights and obligations in the context of a contractual chain in existence designed by the parties to regulate their rights and obligations in the context of a contruction project.
[8] Counsel for the plaintiff conceding that there was never a contract between the plaintiff and second defendant, and that the plaintiff's claim is a delictual one, nevertheless argued that the contention by the second defendant that the existence of a "contractual matrix" prevents or disallows a delictual claim is not in accordance with the prevailing law.
[9] According to the plaintiff, the second defendant is sued as a joint wrongdoer with two other defendants who have not taken any exception to the particulars of claim. Therefore, the contention is that for the mere fact of the second defendant being held jointly and severally, the second defendant should remain as a defendant.
[10] The plaintiff further contends that there will be dire consequences should the second defendant be released from the present proceedings on the basis that no such claim is recognizable in our law and that other defendants will merely blame the second defendant for failing to have executed their plans and/or designs and/or instructions as a result of which the house was structurally unsound. According to the plaintiff, in their particulars of claim, they are contending that the second defendant has failed to comply with designs and has constructed the house incorrectly.
[11] It is common cause that the plaintiff's claim is based on pure economic loss. The principle developed in the Lillicrap's case was restated by the Constitutional Court in Country Cloud Trading supra when it held that our law is generally reluctant to recognize pure economic loss claims, especially where it would constitute an extension of the law of delict.
[12] The plaintiff had a contractual relationship with Riverspray. The mere fact that Riverspray has been liquidated, does not automatically absolve it from its liabilities. In my view, the plaintiff's case is not distinguishable from the Lilliscrap's case. It is common cause that the plaintiff's claim is based on pure economic loss, and there was no countractual relationship between him and the second defendant.
[13] Cousel for the plaintiff in his heard of arguments has argued that the plaintiff falls within a foreseeable class of victims. According to the counsel for the plaintiff, the bonis mores of the community will always regard the conduct of a builder who fails to build according to design and instructions of a professional team as a wrongful conduct which should lead to liability where damages should flow from.
[14] Now I have to determine whether I should extend the Aquilian remedy in the present situation. It determining whether to extend liability in the present case it necessary to determine whether there is a need for that. In Lillicrap's case it was held that the court should be loath to extend the law of delict in a situation like the present case and thereby eliminate provisions which the parties considered necessary or desirable for their own protection.
[15] It is common cause that the second defendant had neither direct dealings, nor any contractual relationship with the plaintiff, but was contracted to Riverspray. The contract between the plaintiff and Riverspray has defined the nature of their relationship and what performance was required from each party. Therefore, in my view, I do not consider that policy considerations, require that delictual liability be extended in the present situation.
[16] In the result I make the following order.
16.1. The second defendant's exception is upheld.
16.2. The claim against the second defendant is struck out.
16.3. Plaintiff to pay defendant's costs including the costs of employment of the senior counsel.
Date of hearing: 03 November 2015
Judgment delivered:
Appearences:
For the Plaintiff: Adv TA LL Potgieter SC
Pieter Moolman Attorneys
C/O Gouzy Hertzog & Horak, Pretoria.
For the second defendant: Adv L J van der Linde SC
Instructed by: Tim du Tait Co Inc, Pretoria
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