South Africa Case Law

KLD Residential CC v Empire Earth Investments 17 (Pty) Ltd (1135/2016)

KLD Residential CC v Empire Earth Investments 17 (Pty) Ltd (1135/2016) [2017] ZASCA 98; [2017] 3 All SA 739 (SCA); 2017 (6) SA 55 (SCA) (6 July 2017)

Court

Supreme Court of Appeal

Case number

1135/2016

Judges

Lewis, Tshiqi, Mbha, Fourie, Schippers

The Supreme Court of Appeal held that an acknowledgment of liability made in a without prejudice settlement communication cannot be admitted in evidence for the purpose of interrupting prescription under section 14 of the Prescription Act. The court reasoned that the without prejudice rule is founded on public policy and contractual principles, encouraging parties to negotiate freely without fear that admissions will be used against them. Recognizing an exception for prescription would undermine the rule's effectiveness and create legal and practical uncertainty. The court found that the Pres…

Source excerpt

• Prescription Act Section 14
• Without Prejudice Rule
• Acknowledgment Of Liability
• Settlement Negotiations
• Admissibility Of Evidence

KLD Residential CC v Empire Earth Investments 17 (Pty) Ltd (9861/13, 16844/07)

KLD Residential CC v Empire Earth Investments 17 (Pty) Ltd (9861/13, 16844/07) [2016] ZAWCHC 83; [2016] 3 All SA 832 (WCC); 2016 (5) SA 485 (WCC) (24 June 2016)

Court

Western Cape High Court, Cape Town

Case number

9861/13, 16844/07

Judge

Rogers

The court held that the Webber Wentzel letter was written without prejudice as part of settlement negotiations and thus protected by the without prejudice rule. The law does not recognize an exception allowing such communications to be used as acknowledgments interrupting prescription, either under South African or English law as at 31 May 1961. The acknowledgment of liability in the letter was not wholly unconnected to the settlement proposal and cannot be isolated from the protected communication. Therefore, the letter is inadmissible for the purpose of interrupting prescription, and KLD's…

Source excerpt

• Prescription Act Section 14
• Without Prejudice Rule
• Commission Claims
• Interruption Of Prescription
• Settlement Negotiations

Iveco South Africa (Pty) Ltd v Botha (5972/2008)

Iveco South Africa (Pty) Ltd v Botha (5972/2008) [2011] ZAFSHC 81 (2 June 2011)

Court

Free State High Court, Bloemfontein

Case number

5972/2008

Judge

Rampai

Application for leave to appeal in a prescription dispute over a municipal debt tied to a share sale agreement and alleged acknowledgement of liability.

• Prescription Act Section 14
• Acknowledgement Of Liability
• Interruption Of Prescription
• Share Sale Agreement
• Contractual Warranty
• Prescription