London and Others v Department of Transport Roads and Public Works of Northern Cape and Others (380/2012)
London and Others v Department of Transport Roads and Public Works of Northern Cape and Others (380/2012) [2018] ZANCHC 32 (22 June 2018)
The court found that the plaintiffs' particulars of claim did not establish a cause of action that could stand independently as a delictual claim. The claim was derivative in nature, and the plaintiffs failed to plead wrongfulness or unlawfulness necessary for a delictual claim. Although the Foss v Harbottle rule generally precludes shareholders from suing for losses suffered by the company, the court accepted that the rule is not absolute and may be relaxed where the risk of double recovery is non-existent, as in this case due to the liquidators' express indication not to pursue damages. How…
Source excerpt
- Exception To Particulars Of Claim
- Derivative Action
- Locus Standi
- Rule 33 4
- Wrongfulness
- Foss V Harbottle Rule