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South Africa decisions
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Investec Ltd v ERF 436 Elandspoort (Pty)Ltd (2517/2011) [2016] ZAGPPHC 505 (25 May 2016)
The High Court held that a debt once secured by a mortgage bond was nevertheless subject to three-year prescription after the bond had been cancelled before the debt became due.
Group Five Construction (Pty) Ltd v Minister of Water Affairs and Forestry (379/2010) [2011] ZASCA 17 (14 March 2011)
The Supreme Court of Appeal held that the appellant's claims for additional payment under the building contract became due when written notice was given to refer the unresolved matters to court, following the dispute review board's recommendation. This interpretation was based on the contract's dispute resolution mechanism and the Prescription Act. The court found that the claims were ripe and complete at the time the notices were given, and prescription commenced from that point. The appellant's argument that the claims were merely estimates and not immediately due was rejected. The court af…
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Ramdin v Pillay and others (2291/2007) [2007] ZAKZHC 14; 2008 (3) SA 19 (D); (28 November 2007)
The court found that the defendants were not mere stakeholders but acted as agents under a mandate to invest the plaintiff's funds. Upon the plaintiff's demand for repayment in April 2002, the mandate was terminated and the debt became due. From that moment, prescription began to run under the Prescription Act. As the summons was served more than three years after the debt became due, the plaintiff's claim had prescribed. The admission in the stated case that the plaintiff remained the owner of the funds was a mistake of law and did not bind the court. The legal relationship was one of agency…
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