South Africa Case Law

Scate Solar SA 163 (Pty) Ltd and Another v Terrafix Suedafrika (Pty) Ltd and Another (499/2014)

Scate Solar SA 163 (Pty) Ltd and Another v Terrafix Suedafrika (Pty) Ltd and Another (499/2014) [2014] ZAWCHC 24 (5 March 2014)

Court

Western Cape High Court, Cape Town

Case number

499/2014

Judge

J Cloete

The court found that the probabilities regarding fraud in Terrafix's certification of demands under the letters of credit are evenly balanced and the issue remains open. Terrafix failed to provide cogent evidence of Reisch's state of mind when certifying the demands, and the applicants established a prima facie right to interim relief. The material non-disclosure of insolvency proceedings by Terrafix further justified apprehension of irreparable harm. Accordingly, the matter was referred to oral evidence, specifically for the cross-examination of Reisch on the fraud issue, and interim interdi…

Source excerpt

• Letters Of Credit
• Fraud Exception
• Interim Interdict
• Referral To Oral Evidence
• Balance Of Convenience

Guardrisk Insurance Company Ltd and Others v Kentz (Pty) Ltd (94/2013)

Guardrisk Insurance Company Ltd and Others v Kentz (Pty) Ltd (94/2013) [2013] ZASCA 182; [2014] 1 All SA 307 (SCA) (14 November 2013)

Court

Supreme Court of Appeal

Case number

94/2013

Judges

Navsa, Shongwe, Theron, Saldulker, Meyer

The Supreme Court of Appeal held that the guarantees issued by Guardrisk were unconditional 'on demand' guarantees, not conditional payment guarantees. The terms of the guarantees created an absolute and independent obligation on Guardrisk to pay Kentz upon valid written demand, regardless of disputes between Kentz and Brokrew under the construction contract. The only exception to payment is proof of fraud by the beneficiary. The appellants failed to establish fraud, as Kentz acted in good faith and believed it was entitled to payment under the guarantees. The court rejected arguments that un…

Source excerpt

• Performance Guarantee
• Fraud Exception
• Construction Contracts
• Letters Of Credit
• Independent Bank Guarantee

Casey and Another v First National Bank (2011/07680)

Casey and Another v First National Bank (2011/07680) [2011] ZAGPJHC 225; 2013 (4) SA 370 (GSJ) (8 August 2011)

Court

South Gauteng High Court, Johannesburg

Case number

2011/07680

Judge

Spilg

The court held that FNB could call up a standby letter of credit despite prescription arguments, because the credit was autonomous and triggered by non-performance.

• Letters Of Credit
• Prescription
• In Duplum Rule
• Security For Debt
• Letters-of-credit
• In-duplum-rule

OK Bazaars 1929 Limited v Standard Bank of South Africa Limited (278/2000)

OK Bazaars 1929 Limited v Standard Bank of South Africa Limited (278/2000) [2002] ZASCA 5; 2002 (3) SA 688 (SCA) (12 March 2002)

Court

Supreme Court of Appeal

Case number

278/2000

Judges

Nienaber, Zulman, Cameron, Navsa, Nugent

The Supreme Court of Appeal held that a negligent misstatement by Hyperama’s employee caused Standard Bank’s loss and that later acceptance of discrepant documents did not break causation.

• Negligent Misstatement
• Economic Loss
• Letters Of Credit
• Causation
• Novus Actus Interveniens
• Negligent-misstatement

EBN Trading (Pty) Ltd v Commissioner for Customs and Excise and Another (653/98)

EBN Trading (Pty) Ltd v Commissioner for Customs and Excise and Another (653/98) [2001] ZASCA 6; [2001] 3 All SA 117 (A); 2001 (2) SA 1210 (SCA) (2 March 2001)

Court

Supreme Court of Appeal

Case number

653/98

Judges

Schutz, Melunsky, Nugent

The Supreme Court of Appeal held that EBN Trading was an importer under the Customs and Excise Act because it had a beneficial interest in the goods.

• Customs And Excise Act
• Definition Of Importer
• Beneficial Interest
• Letters Of Credit
• Document Of Title
• Onus Of Proof

Loomcraft Fabrics CC v Nedbank Ltd and Another (70/94)

Loomcraft Fabrics CC v Nedbank Ltd and Another (70/94) [1995] ZASCA 127; 1996 (1) SA 812 (SCA); [1996] 1 All SA 51 (A); [1996] 1 All SA 51 (A) (17 November 1995)

Court

Supreme Court of Appeal

Case number

70/94

Judges

Scott, Corbett, Hefer, Nestadt, Harms

The court refused to restrain payment under a letter of credit, finding no clearly proved fraud in the bills of lading and dismissing the appeal with costs.

• Letters Of Credit
• Fraud Exception
• International Trade
• Documentary Credits
• Final Interdict
• Uniform Customs And Practice