South Africa Case Law

Intengo Imoto (Pty) Ltd t/a Northcliff Nissan v Zoutpansberg Motor Wholesalers CC t/a Hyundai Louis Trichardt (474/2024)

Intengo Imoto (Pty) Ltd t/a Northcliff Nissan v Zoutpansberg Motor Wholesalers CC t/a Hyundai Louis Trichardt (474/2024) [2025] ZASCA 93 (20 June 2025)

Court

Supreme Court of Appeal

Case number

474/2024

Judges

Zondi, Mothle, Weiner, Kathree-Setiloane, Coppin

The Supreme Court of Appeal held that a purchaser who paid into a fraudulent account after failing to verify bank details had not discharged its payment obligation.

• Payment Obligation
• Electronic Funds Transfer
• Business Email Compromise
• Risk Of Loss
• Contract Breach
• Electronic-funds-transfer

Ross and Another v Nedbank Limited (10029/2020)

Ross and Another v Nedbank Limited (10029/2020) [2024] ZAGPJHC 1146 (8 November 2024)

Court

South Gauteng High Court, Johannesburg

Case number

10029/2020

Judge

Moosajee

The court found that while Nedbank is subject to statutory obligations under FICA, these do not translate into private law duties owed to third parties such as the plaintiffs. Imposing such a duty would expose banks to indeterminate liability, which is contrary to established legal principles regarding pure economic loss. The plaintiffs failed to discharge the onus of proving wrongfulness, as FICA is intended for the public good and does not create actionable rights for victims of fraud. Furthermore, the plaintiffs did not lead sufficient evidence to prove that they suffered a loss directly a…

Source excerpt

• Pure Economic Loss
• Business Email Compromise
• Fic Act Obligations
• Wrongfulness
• Negligence
• Risk Of Indeterminate Liability

Movienet Networks (Pty) Ltd and Another v Motus Ford Culemborg and Others (13781/2024)

Movienet Networks (Pty) Ltd and Another v Motus Ford Culemborg and Others (13781/2024) [2024] ZAWCHC 231 (2 September 2024)

Court

Western Cape High Court, Cape Town

Case number

13781/2024

Judge

A Bhoopchand

The High Court dismissed an application for release of a vehicle after a business email compromise dispute, finding the requested interdict was not competent.

• Business Email Compromise
• Interim Interdict
• Ownership Of Movable Property
• Contractual Rights
• Cybercrime Liability
• Specific Performance

Edward Nathan Sonnenberg Inc v Judith Mary Hawarden (421/2023)

Edward Nathan Sonnenberg Inc v Judith Mary Hawarden (421/2023) [2024] ZASCA 90; 2024 (5) SA 9 (SCA) (10 June 2024)

Court

Supreme Court of Appeal

Case number

421/2023

Judges

Ponnan, Dambuza, Goosen, Tlaletsi, Dawood

The Supreme Court of Appeal held that ENS owed no delictual duty to protect Hawarden from business email compromise losses and upheld the appeal.

• Pure Economic Loss
• Wrongfulness
• Business Email Compromise
• Cybercrime
• Vulnerability To Risk
• Pure-economic-loss

Fortein N.O. v Iprop Trading CC (A70/2023)

Fortein N.O. v Iprop Trading CC (A70/2023) [2024] ZAFSHC 170 (17 May 2024)

Court

Free State High Court, Bloemfontein

Case number

A70/2023

Judges

C. Van Zyl, N.M. Mbhele

The court held that payment into a fraudulent bank account, resulting from business email compromise, does not extinguish the purchaser's obligation to pay the seller. The duty to verify the correctness of banking details before making payment rests on the debtor, not the creditor. The respondent failed to take reasonable steps to confirm the banking details, acting at its own peril. The appellant was not proven to have owed a higher duty of care due to professional status, and the evidence did not establish that the contractual term requiring payment into the Standard Bank account was common…

Source excerpt

• Business Email Compromise
• Duty Of Care
• Payment Verification
• Cybercrime Liability
• Contractual Performance
• Negligence

Zoutpansberg Motor Wholesalers CC t/a Hyundai Louis Trichardt v Intengo Imoto (Pty) Ltd t/a Northcliff Nissan (MCA 06/2023)

Zoutpansberg Motor Wholesalers CC t/a Hyundai Louis Trichardt v Intengo Imoto (Pty) Ltd t/a Northcliff Nissan (MCA 06/2023) [2024] ZALMPTHC 9 (30 January 2024)

Court

Limpopo High Court, Thohoyandou

Case number

MCA 06/2023

Judges

IM Khosa, TC Tshidada

The High Court upheld an appeal in a cyber-fraud payment dispute, finding the respondent pleaded contract but proved negligence, outside the pleadings.

• Breach Of Contract
• Specific Performance
• Business Email Compromise
• Onus Of Proof
• Pleadings And Material Facts
• Business-email-compromise

Lester Connock Commemoration Fund v Brough Capital (Pty) Ltd and Another (28646/2020)

Lester Connock Commemoration Fund v Brough Capital (Pty) Ltd and Another (28646/2020) [2023] ZAGPJHC 1329; 2024 (2) SA 486 (GJ) (16 November 2023)

Court

South Gauteng High Court, Johannesburg

Case number

28646/2020

Judge

MA Makume

The court found that Brough Capital and Mr Chris Botha, as financial service providers, owed a duty of care to the plaintiff to verify withdrawal instructions and bank account changes, especially in light of the prevalence of business email compromise and the unusual withdrawal patterns. The defendants' reliance on Momentum for verification was rejected, as there was no contractual nexus between the plaintiff and Momentum, and the mandate imposed the duty on the defendants. The indemnity clause did not exempt the defendants from liability for gross negligence, which was established by their f…

Source excerpt

• Business Email Compromise
• Gross Negligence
• Financial Services Provider Duties
• Contractual Indemnity
• Cybercrime Liability
• Fiduciary Duty

Gerber v PSG Wealth Financial Planning (Pty) Ltd (36447/2021)

Gerber v PSG Wealth Financial Planning (Pty) Ltd (36447/2021) [2023] ZAGPJHC 270 (23 March 2023)

Court

South Gauteng High Court, Johannesburg

Case number

36447/2021

Judge

Fisher

The court found that the defendant was contractually obliged to protect the plaintiff against fraud, including cybercrime, by employing effective procedures and technological systems. The defendant failed to establish a tacit term excluding liability where the plaintiff's system was hacked, as such a term would undermine the express contractual protections. The defendant ignored its own verification protocols and proceeded with payments despite clear indications of risk and anomalies in the account verification process. The plaintiff had no duty to prevent hacking, and there was no evidence o…

Source excerpt

• Contractual Liability
• Cybercrime
• Business Email Compromise
• Fraud Prevention
• Tacit Terms
• Estoppel

Hartog v Daly and Others (A5012/2022)

Hartog v Daly and Others (A5012/2022) [2023] ZAGPJHC 40; [2023] 2 All SA 156 (GJ) (24 January 2023)

Court

South Gauteng High Court, Johannesburg

Case number

A5012/2022

Judges

Strydom, M M Mabesele, J J Strijdom

The Full Court found that the appellant breached the mandate by paying the sale proceeds into an account not nominated by the respondents, resulting in loss due to fraud. The alleged tacit term requiring respondents to ensure data/email security was not established on the facts or by inference; the probabilities did not support its existence. All relevant facts were common cause, and no genuine factual dispute existed requiring referral to trial. The appellant's claims against Standard Bank for delictual liability failed due to lack of evidence of wrongfulness or negligence, as Standard Bank…

Source excerpt

• Mandate Liability
• Business Email Compromise
• Payment Instructions
• Delictual Liability
• Contractual Terms
• Electronic Fund Transfer

Hawarden v Edward Nathan Sonnenbergs Inc (13849/2020)

Hawarden v Edward Nathan Sonnenbergs Inc (13849/2020) [2023] ZAGPJHC 14; [2023] 1 All SA 675 (GJ); 2023 (4) SA 152 (GJ) (16 January 2023)

Court

South Gauteng High Court, Johannesburg

Case number

13849/2020

Judge

Mudau

The court held a conveyancer liable in delict for pure economic loss after emailing bank details that were intercepted in a business email compromise fraud.

• Pure Economic Loss
• Duty Of Care
• Business Email Compromise
• Conveyancing Liability
• Negligent Omission
• Cyber Fraud