Vienings v Paint and Ladders (Pty) Ltd (12929/2009) [2012] ZAKZDHC 61 (30 October 2012)

Vienings v Paint and Ladders (Pty) Ltd (12929/2009) [2012] ZAKZDHC 61 (30 October 2012)

The court found that the right to seek security for costs under section 13 of the Companies Act 1973 accrued when summons was served and survived the repeal of the Act by virtue of section 12(2)(c) of the Interpretation Act. The defendant provided credible evidence that the plaintiff had failed to pay a previous costs order, which was ultimately settled by another company in the group, and the plaintiff refused to provide any financial disclosure or explanation. The plaintiff's reliance on its group structure and listed status was insufficient, as only the plaintiff company is liable for costs. The delay in bringing the application was adequately explained and did not prejudice the...

Citation
[2012] ZAKZDHC 61
Parties
Defendant: Bernard Keith Vienings; Plaintiff: Paint and Ladders (Pty) Limited
Court
Kwazulu-Natal High Court, Durban
Jurisdiction
South Africa
Judgment Date
30 October 2012
Case Number
12929/2009
Procedural Posture
Stay Application / Application for Security for Costs and Stay of Proceedings
Outcome
Application granted. Plaintiff ordered to provide security for costs; proceedings stayed until security is given; plaintiff to pay costs of application.
Judges
M Pillemer
Legal Topics
Security for Costs, Companies Act 1973 Section 13, Interpretation Act Section 12, Delay in Application, Group Company Liability
Civil Procedure Commercial and Corporate Security for Costs Companies Act 1973 Section 13 Interpretation Act Section 12 Delay in Application Group Company Liability

Case Brief

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Parties

Bernard Keith Vienings

Defendant

Paint and Ladders (Pty) Limited

Plaintiff

Procedural Posture

Stay Application / Application for Security for Costs and Stay of Proceedings

Legal Issues

  1. 1 Whether the defendant is entitled to an order requiring the plaintiff to furnish security for costs under section 13 of the Companies Act 1973.
  2. 2 Whether the right to seek security for costs survived the repeal of the Companies Act 1973 by virtue of the Interpretation Act.
  3. 3 Whether the delay in bringing the application for security for costs should preclude relief.

Ratio Decidendi

The court found that the right to seek security for costs under section 13 of the Companies Act 1973 accrued when summons was served and survived the repeal of the Act by virtue of section 12(2)(c) of the Interpretation Act. The defendant provided credible evidence that the plaintiff had failed to pay a previous costs order, which was ultimately settled by another company in the group, and the plaintiff refused to provide any financial disclosure or explanation. The plaintiff's reliance on its group structure and listed status was insufficient, as only the plaintiff company is liable for costs. The delay in bringing the application was adequately explained and did not prejudice the...

Court Disposition

Application granted. Plaintiff ordered to provide security for costs; proceedings stayed until security is given; plaintiff to pay costs of application.

Orders

  • The Plaintiff is required to give security for the costs of the Defendant if successful in its defence of the action, in a form and amount as determined by the registrar of this court.
  • The proceedings in the action are stayed till the security is given.