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South Africa Judgment

North Gauteng High Court, Pretoria

Willis v Mahadevy and Others (94037/19) [2021] ZAGPPHC 601 (17 September 2021)

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Source document

01

Holding and result

The court found that there are reasonable prospects of success on appeal regarding the issues raised, particularly the personal liability of the first defendant and the nature of the agreement for payment of fees. The documentary evidence and the role of ERMR, as well as the procedural aspects concerning the law firm acting as a correspondent, warrant further interrogation by another court. The requirements of section 17(1) of the Superior Courts Act have been met, and leave to appeal should be granted.

Court disposition

Leave to appeal to the Full Court of this Division is granted; costs shall be costs in the appeal.

Orders

  • Leave to appeal to the Full Court of this Division is granted.
  • Costs shall be costs in the appeal.

02

Material facts

Parties

Willis RS

Plaintiff Counsel: J J Fryer Attorneys

Mahadevy, R

Defendant Counsel: MR AS Seedat

DMA Inc

Defendant Counsel: MR AS Seedat

Maharaj, D

Defendant Counsel: MR AS Seedat

Amounts and remedies

  • Amount Held in Trust: ZAR 1,850,000

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal to the Full Court

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contends that the court erred by not considering the defence that he was not personally liable for the debt, as documentary evidence shows the third defendant acted on behalf of Eden Rose Mining Resources (Pty) Ltd. The applicant was a shareholder and director of ERMR, and fees were always directed to the second and third defendants, not to him personally. The agreement regarding fees was not disclosed to him, and the payment of R1,850,000.00 held in trust for him was paid over to his attorney when fees were due, which would not have occurred if he was personally liable. The court also ignored the role of the law firm Mahadev and Maharaj, which acted only as a correspondent to comply with court rules, and thus he was denied a fair trial.
Respondent
The respondents maintain that summary judgment was correctly granted against the first defendant, who was personally liable for the fees. They argue that the documentary evidence and the role of ERMR do not absolve the first defendant of liability. The respondents assert that the procedural requirements were met and that the first defendant's arguments do not raise reasonable prospects of success on appeal.

05

Court’s reasoning

  1. 01

    Section 17(1)(a)(i) of the Superior Courts Act 10 of 2013

    The threshold for granting leave to appeal has been raised; there must be certainty that another court would come to a different conclusion.

  2. 02

    Mont Chevaux Trust v Goosen 2014 JDR 2325 (LCC)

    Reasonable prospects of success must be demonstrated for leave to appeal to be granted.

  3. 03

    Nontshokuvu v S [2016] ZASCA 112 (7 September 2016)

    The test for leave to appeal is no longer the same as previously applied; the new standard is stricter.

06

Ratio, limits and disposition

Ratio decidendi

The court found that there are reasonable prospects of success on appeal regarding the issues raised, particularly the personal liability of the first defendant and the nature of the agreement for payment of fees. The documentary evidence and the role of ERMR, as well as the procedural aspects concerning the law firm acting as a correspondent, warrant further interrogation by another court. The requirements of section 17(1) of the Superior Courts Act have been met, and leave to appeal should be granted.

Obiter and limits

  • The agreement for the payment of fees and the instructions given to the plaintiff in relation to ERMR require further scrutiny on appeal.
  • The role of the law firm Mahadev and Maharaj as a correspondent firm was not adequately considered in the initial judgment.

Court disposition

Leave to appeal to the Full Court of this Division is granted; costs shall be costs in the appeal.

  • Leave to appeal to the Full Court of this Division is granted.
  • Costs shall be costs in the appeal.

Source and reliance status

North Gauteng High Court, Pretoria

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Judgment reading view

Judgment text

The complete available source text.

Source document

North Gauteng High Court, Pretoria

Judgment

[2021] ZAGPPHC 601

IN

THE HIGH COURT OF SOUTH AFRICA

(GAUTENG DIVISION, PRETORIA)

CASE NUMBER: 94037/19

17/9/2021

In the matter between:

WILLIS

RS

PLAINTIFF

And

MAHADEVY,

R

FIRST DEFENDANT

DMA

INC

SECOND DEFENDANT

MAHARAJ,

D

THIRD DEFENDANT

JUDGMENT

APPLICATION FOR LEAVE TO APPEAL

TLHAPI J

[1] This is an application for leave to appeal to the Full Court of the above Honourable Court against an order granting summary judgment against the applicant ("first defendant"} with costs. I have taken into account submissions and arguments by both counsel in this application and these shall not be repeated.

[2] The applicants raise the issue that the court erred in not taking into account the defence of the first defendant that he was not personally liable for the amount owed to the plaintiff, there being documentary evidence, being an admission by the third defendant that he represented a company called Eden Rose Mining Resources (Pty) Ltd (ERMR). Further, that the court failed to take cognizance of the fact the first defendant was a shareholder and director of ERMR a fact not denied by the plaintiff, second and third defendant and, that the plaintiffs fees in respect of ERMR had been directed at all times to the second and third defendants and not to the first defendant in his personal capacity. The basis of the agreement of fees was entered into between the plaintiff and the third respondent was not disclosed to the first defendant.

[3] It was also contended that the court failed to take cognizance of the fact that The R1 850 000,00 which was held by the third defendant in trust for the first defendant and later paid over to the attorney of the first defendant at a time when fees were due to the plaintiff, that if the first defendant was personally liable for the fees of the plaintiff the third defendant would have withheld payment of the amount or part thereof to secure payment of plaintiff's fees

[4] It was contended that the grant of judgment against the first defendant for the amount of fees that had not prescribed on the basis that the first defendant held a Fidelity Fund certificate in respect of a law firm called Mahadev and Maharaj in Pietermaritzburg, ignored the fact that the said firm served as a correspondent in order to comply with the Supreme Court Rules of Court of a 15 kilometres requirement from the court, and that for these reasons the first defendant was denied an opportunity to a fair trial.

[5] It is trite now that the test previously applied to similar applications is no longer applicable and that the threshold for reasonable prospect has now been raised as provided in Section 17(1)(a)(i) of the Superior Courts Act 10 of 2013 . There should be some certainty that another court would come to a different conclusion. Mont Chevaux Trust v Goosen 2014 JDR 2325 (LCC)'; Nontshokuvu v S [2016] ZASCA 112 (7 September 2016)

[6] Having heard both counsel I do find that there are reasonable prospects of Success on appeal in respect of the issues raised in the application for leave to appeal, especially regarding the second and third defendant in respect of instructions given to the plaintiff in the matter of ERMR and, the fact that the agreement for the payment of fees is an issue to be interrogated in relation to the role of the first defendant. The requirements of section 17(1) above have been met and the application should succeed.

[7] In the result the following order is made:

1. Leave to appeal to the Full Court of this Division is granted and costs shall be costs in the appeal.

TLHAPI VV

(JUDGE OF THE HIGH COURT)

MATTER

HEARD ON

: 11 JUNE 2021

JUDGMENT

RESERVED ON

: 11 JUNE 2021

ATTORNEYS

FOR THE APPLICANT :

J J

FRYER ATTORNEYS

ATTORNEYS

FOR THE RESPONDENTS :

MR AS

SEEDAT

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Mont Chevaux Trust v Goosen 2014 JDR 2325 (LCC)

Case cited

Nontshokuvu v S [2016] ZASCA 112 (7 September 2016)

Case cited

Superior Courts Act 10 of 2013

Legislation

Legislation referenced in the available case record.

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