Zelenyuk v Avnit (10125/2008) [2009] ZAGPPHC 86 (10 June 2009)

Zelenyuk v Avnit (10125/2008) [2009] ZAGPPHC 86 (10 June 2009)

The court found that the parties did not agree on any specific exchange rate for conversion of the USD judgment debt to Rand. South Africa has no official exchange rate, and the Reserve Bank's indicative rate is merely a reflection of the average rates quoted by major authorized dealers, not a prescriptive rate. ABSA, being one of the four largest authorized dealers, provided a public rate which was used for the conversion. The applicant did not allege that the Rand amount paid was insufficient to acquire the agreed USD amount, only that the respondent benefited from a lower rate. The court held that, in the absence of express agreement or trade usage, the respondent acted reasonably and...

Citation
[2009] ZAGPPHC 86
Parties
Applicant: Victor Nicolay Zelenyuk; Respondent: David Sameul Avnit
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
10 June 2009
Case Number
10125/2008
Procedural Posture
Civil Application / First Instance
Outcome
Application dismissed with costs.
Judges
Potterill
Legal Topics
Foreign Currency Judgment, Exchange Rate Conversion, Payment in Rands, Contract Interpretation
Banking and Finance Civil Procedure Foreign Currency Judgment Exchange Rate Conversion Payment in Rands Contract Interpretation

Case Brief

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Parties

Victor Nicolay Zelenyuk

Applicant

David Sameul Avnit

Respondent

Procedural Posture

Civil Application / First Instance

Legal Issues

  1. 1 Whether the respondent was entitled to use ABSA's exchange rate to convert the USD liability to South African Rand.
  2. 2 What is the correct exchange rate to apply when converting a judgment debt in foreign currency to Rand, in the absence of express agreement.
  3. 3 Whether the respondent discharged the obligation to pay the agreed USD amount by payment in Rand at the chosen rate.

Ratio Decidendi

The court found that the parties did not agree on any specific exchange rate for conversion of the USD judgment debt to Rand. South Africa has no official exchange rate, and the Reserve Bank's indicative rate is merely a reflection of the average rates quoted by major authorized dealers, not a prescriptive rate. ABSA, being one of the four largest authorized dealers, provided a public rate which was used for the conversion. The applicant did not allege that the Rand amount paid was insufficient to acquire the agreed USD amount, only that the respondent benefited from a lower rate. The court held that, in the absence of express agreement or trade usage, the respondent acted reasonably and...

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed with costs.