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Supreme Court of Appeal of South Africa

The Supreme Court of Appeal is, except in respect of certain labour and competition matters, the second highest court in South Africa. In terms of the Constitution, it is purely an appeal court and may decide only appeals and issues connected with appeals. (Banner image by Ben Bezuidenhout).
Physical address
Cnr Mirriam Makeba & President Brand Streets, Bloemfontein, Free State, 9301
115 judgments
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115 judgments
Citation
Judgment date
November 1998
Reported
Purchaser was not a bona fide purchaser; consignor could not pass good title and owner is entitled to possession.
Property/Movables – possession v title – sale by agent/consignor – bona fide purchaser protection (Morum Bros) inapplicable where purchaser not in good faith. Evidence – affidavit disputes – importance of adequately dealing with contradictory factual allegations. Remedies – claim for recovery of movable and counter-application for possession; limitations on declaring ownership on limited papers.
27 November 1998
Disputes committee decisions of a medical scheme are final and binding; scheme management may not ignore them.
Medical schemes — disputes committee — power to determine disputes arising from administration and interpretation of rules — decision final and binding; management cannot ignore such decision but may appeal or seek review. Membership — continued/"retired" membership — validity of membership and entitlement to reinstatement; interpretation of amended rules (6.3 and 10.2) unnecessary where membership and disputes committee decision dispose of dispute.
27 November 1998
Reported
A prominent ticket-office disclaimer excluding liability, including for negligence, was incorporated and barred the respondents' delictual claim.
Contract law — incorporation of exclusion clauses by notice at ticket offices; Construction of disclaimer — exclusion of liability for negligence (including design/construction); Delict — whether cause of action falls within incorporated exclusion clause; Civil procedure — appealability of dismissal of a substantive defence independent of plaintiff's claim.
27 November 1998
Reported
Whether testamentary annuity payments were respondent's taxable receipts and whether related bond interest was deductible.
• Tax — Income tax — Whether testamentary annuity payments made by legatee are received by him in a fiduciary capacity (and therefore excluded from gross income) or are his own receipts. • Tax — Deductibility — Whether interest on bonds registered under a will to secure legacies is deductible under s11(a) read with s23(g). • Succession law — Distinction between modus and fideicommissum and its tax consequences. • Precedent — Application and limits of Holley v Commissioner.
27 November 1998
Reported
Rule 10 applies to defended and undefended actions and Rule 60(5) can extend and revive a lapsed summons.
Magistrates' Court Rules — Rule 10 (lapse of summons) — applicability to defended as well as undefended actions; Rule 60(5) — extension of 'any time limit prescribed by these rules' — power to extend twelve‑month period in Rule 10 and revive lapsed summons; meaning of 'lapse' as loss of legal efficacy.
27 November 1998
Reported
Vacancies must be filled at the AGM by the whole congregation; "represent" denotes origin, not sectional mandate.
Trust deed interpretation – trustees and vacancies – clauses 4(a), 4(b), 4(e) and 7 – meaning of "represent" – vacancies to be filled at AGM by whole congregation; no separate sectional electoral colleges; interim trustee appointments by remaining trustees valid until next AGM.
27 November 1998
Appellate court upholds trial credibility findings, adverse inference for plaintiff’s non‑testimony, and trial court’s costs discretion.
Delict — causation and negligence — irreconcilable eyewitness accounts — credibility assessment and adverse inference where plaintiff fails to testify despite prior sworn statement; Civil procedure — Rule 34(1) settlement offers and trial court’s discretion on costs — appellate interference only for irregularity or no reasonable basis.
27 November 1998
Reported
Whether a general synod could lawfully amend the church order to dissolve the church and transfer congregations' assets unilaterally.
Church law; constitutional amendment powers of voluntary associations; ultra vires acts by a General Synod; presbyterian governance; autonomy and property rights of local congregations; invalidity of unilateral dissolution and compulsory asset transfer by constitutional amendment.
27 November 1998
Reported
The Master may authorise s 415 examinations after an initial distribution; winding-up is not necessarily ended by payment under a confirmed account.
Companies Act – s 415(1) – examination at creditors’ meetings – "company which is being wound up" descriptive not time-limiting; s 417 comparison; winding-up not necessarily complete upon distribution; post-final accounts and subsequently discovered assets; Master’s powers to investigate preserved.
27 November 1998
Reported
Psychogenic automatism requires an extraordinary trigger; here objective conduct and absence of such trigger negated the defence.
Criminal law – automatism – psychogenic (non‑pathological) automatism requires an extraordinary emotional trigger; onus on State to prove voluntariness beyond reasonable doubt; objective conduct (aiming/firing multiple shots, avoidance behaviour, post‑offence statements) inconsistent with automatism.
27 November 1998
Reported
Appellant absolved after court found plaintiff failed to prove elevator malfunction; demeanour cannot override probabilities.
Delict – negligence – duty to maintain common-property elevator – causation and proof of malfunction. Evidence – credibility: limits of demeanour-based findings; necessity of assessing probabilities and total evidence. Civil procedure – costs between co-defendants where one is absolved and the other succeeds on appeal.
26 November 1998
Reported
Insured’s failure to disclose that a vehicle was stolen and recoverable was material, allowing insurer to repudiate.
Insurance — duty of disclosure — material non-disclosure — reasonable person test — insured’s knowledge that insured vehicle was stolen and subject to recovery material because it may impair insurer’s subrogation and affect acceptance or premium.
26 November 1998
Reported
Private prosecution refused where alleged injury stems from unenforceable illegal gambling debts; no cognisable s 7(1) locus standi.
Criminal Procedure Act s 7(1) – private prosecution – locus standi – whether injury arising from unenforceable gambling debts is cognisable – illegality of contract (gambling) and public policy – ex dolo malo non oritur actio – abuse of process – interest under s 7(1) must derive from a cognisable injury.
26 November 1998
Reported
A costs claim contingent on agreement or taxation is not "due" at settlement; prescription did not commence on acceptance date.
Prescription — when debt "due" under s 12(1) Prescription Act — settlement requiring agreement or taxation to determine quantum — agreement/taxation as condition precedent (not mere procedural step) — Molloy distinguished — onus on party invoking prescription to plead and prove inception date.
26 November 1998
Reported
Claimant failed to prove quantum: valuation evidence did not establish market value on the relevant date.
• Contract/damages – onus to prove quantum – claimant must prove market value at the material date.• Evidence – valuation evidence must be specific to the relevant date; court may not speculate about unasked questions.• Causation – diminution in value caused by subsequent illegal occupation, not plaintiff’s earlier breach.• Procedure – alternative claims inadequately proved and loss of rental not open on appeal without cross-appeal.
26 November 1998
Reported
An application to set aside a members voluntary winding-up must be proved on the ordinary civil onus, not merely prima facie.
Companies Act s 354(1) – application to set aside winding-up – proof "to the satisfaction of the court" requires ordinary civil onus – no lighter standard for members voluntary winding-up; finality protected by ss 355(2), 408(c), and notice requirements of s 359(2); unexplained delay and failure to prove creditor status fatal to relief.
26 November 1998
Reported
Exceptio non adimpleti contractus fails where payment duties are fixed by date/tonnage but rehabilitation duties are flexible and non-reciprocal.
Contract law – locatio conductio operis – composite unitary price for mining, delivery and rehabilitation; exceptio non adimpleti contractus – reciprocity and timing of reciprocal obligations; tacit term – inference of prohibition on leaving walls/pillars in opencast mining; mining regulation requiring concurrent rehabilitation.
23 November 1998
Reported
Whether cheques obtained by false pretences and later appropriated are "stolen" under s 81(1), entitling the payee's cessionary to recover.
Bills of Exchange Act s 81(1) – cheques obtained by false pretences and subsequently appropriated – whether "stolen" for s 81(1). Ownership and possession of negotiable instruments – effect of delivery to a person purporting to act for the payee where payee has not authorised collection. Cession – drawee's ceded claim enforceable by cessionary against later possessor who gave value. Costs – disallowance of costs attributable to unnecessarily voluminous appeal record.
20 November 1998
Reported
Whether interest on loans accrues for tax when funds are advanced or only when payable at maturity.
Tax law – accrual of income – meaning of "accrued to" – lender of money for consumption becomes entitled to interest when funds are made available – contractual stipulations or cession cannot defer legal accrual – section 7(1) deeming unnecessary in this case; note: accrual now addressed by s 24J (inserted 1995).
20 November 1998
Reported
Creditor’s election to sue apparent principal binds it; insolvent principal not liable and claims properly expunged.
Insolvency — claims against liquidated estate — stipulatio alteri and third‑party benefits; undisclosed principal doctrine — election to sue agent binding; Master’s expungement under s45(3) Insolvency Act upheld; costs including two counsel allowed.
20 November 1998
Convictions upheld on reliable identification and corroboration; sentencing affirmed and concurrency of Count 2 ordered under s 32(2)(a).
Criminal law – Identification evidence – reliability and contamination of identification parades – weight given to witnesses with adequate opportunity to observe. Corroboration – possession of firearm and stolen property shortly after crime. Defence credibility – improbability and false explanations. Sentencing – exercise of judicial discretion; concurrency of sentences under s 32(2)(a) Correctional Services Act. Procedure – duty to prepare appeal record properly; court may refuse to strike appeal in interests of justice.
3 November 1998
September 1998
Reported
Failure to afford a hearing under building regulations invalidated plan approval; matter remitted for reconsideration on property-value derogation.
Administrative law – building-plan approval – audi alteram partem under National Building Regulations – failure to afford hearing renders approval reviewable; remedy by remittal when no bias or foregone outcome; demolition order premature without fuller factual basis.
29 September 1998
Reported
Appellate court upheld finding that respondent delivered the exchange coins; appeal dismissed with costs.
Contract — delivery of goods under partly oral/partly written agreement — dispute whether respondent delivered exchange coins; Evidence — claims against deceased estate — cautionary approach to testimony of surviving party who alone can speak to critical facts; Onus — placement of burden of proof not necessary to decide where delivery proved on facts; Cancellation — right to cancel/time not of essence unnecessary to determine.
29 September 1998
Reported
Media may avoid defamation liability if publication was objectively reasonable and non-negligent; strict liability overruled.
Defamation — media publications — legality of publishing false allegations — qualified privilege/reasonableness test for press publications; overruling of strict liability (Pakendorf) for owners, publishers, editors and printers; media negligent standard; onus on defendant to prove justification; constitutional considerations under s15 and s35(3) of Interim Constitution; pre-constitutional publications unaffected by s15.
29 September 1998
Reported
A widow's remarriage does not extinguish her loss‑of‑support claim; remarriage is a deductible benefit in quantifying damages.
Delict — Wrongful death — Quantum — Widow's remarriage does not extinguish claim; remarriage (or its possibility) is a deductible pecuniary advantage when assessing loss of support. Workmen's Compensation Act s 8(1)(b) — Right of recovery not altered by widow's remarriage. Precedent — Glass v Santam incorrectly treated remarriage as terminating claim; established approach retained. Policy and causation — assessment guided by fairness and policy, not strict causation rules.
29 September 1998
Reported
Foreign statutory survivor's pensions funded by employers are "pensions" under the Assessment of Damages Act and not deductible.
Assessment of Damages Act 9 of 1969 s1(1) – deduction of foreign statutory payments from loss of support – characterization of payments as "pension" or "insurance money"; Statutory survivor's pensions funded by employers qualify as "pensions" even if no employee monetary contribution or lump‑sum option exists; Objective of Act to prevent deduction of pensions and similar benefits from dependants' loss of support claims.
29 September 1998
A contractual insurance clause granting the seller discretion does not import a tacit obligation to insure at replacement value.
Contract – construction of insurance clause – whether ‘shall insure’ imposed obligation to insure at market/replacement value – discretion of seller to determine insured sum – tacit term/officious bystander test – onus to prove common intention.
28 September 1998
Proclamation deemed employees to transitional administration; agreement’s retrenchment benefits not triggered, appeals dismissed with costs.
Local government transition – Proclamation ss 8–10 – Deeming of employees to be in service of transitional administration; Contractual retrenchment provisions – "staff reduction" defined conjunctively (redundancy, dismissal, loss of work due to factors beyond control); Interpretation of clauses providing for alternative post or transfer; Payment taken by employee without valid entitlement; Relief to set aside administrative resolutions and restraint on publication.
28 September 1998
Reported
Whether Prescription Act s13 protects insane non‑detained claimants when the Agreement's Article 56 refers to detained persons.
Prescription — interaction of s 13(1) Prescription Act and Article 56 of the Multilateral Motor Vehicle Accidents Fund Agreement; distinction between "insane" and "detained" persons; statutory construction and presumption against unjust legislative intent; relevance of Mental Health Act reforms; authority considered: Apalamah, Terblanche, Kotze, Van Rhyn.
28 September 1998
Reported
Without‑prejudice settlement offers can suspend prescription, but an already expired statutory prescription cannot be extended by agreement; estoppel not shown.
Prescription — Motor Vehicle Accidents Act — s 14(2)(b) — whether without‑prejudice settlement offers amount to offers of settlement suspending prescription — held yes; but once statutory prescriptive period has run its termination cannot be altered by agreement — extensions after expiry are contractual; tacit term and estoppel not proved.
28 September 1998
Reported
Exceptio available for partial withholding of occupation; BK Tooling limited for continuing obligations; occupational interest reduced 25%.
Exceptio non adimpleti contractus; occupational interest on sale of immovable property; limitations of BK Tooling for continuing obligations; remission of rent analogy; equitable pro rata reduction of occupational interest; costs.
28 September 1998
Dismissal for strike was unfair where employer provoked stoppage and denied reasonable time to consult the union.
Labour law – dismissal for strike action – unfair labour practice – employer provocation, failure to explain dismissal of shop steward and to seek union assistance – requirement to afford reasonable time to consult union before dismissal.
25 September 1998
Reported
Appellate court allows prudent investment in shares/unit trusts, invalidating arbitrary caps, JSE-only restriction and stockbroker/Master supervision.
Trusts — investment powers — trustees may invest in quoted shares and unit trusts where prudence and preservation of real capital require — arbitrary percentage caps, exchange restrictions, mandatory independent stockbroker approval and compulsory quarterly reporting to the Master unjustified absent supporting evidence.
25 September 1998
Reported
A mother informed by phone of her child’s death can recover for reasonably foreseeable psychiatric shock; mere grief is not compensable.
Delict — Psychiatric injury (nervous shock) — Hearsay victims — Foreseeability and legal causation — Duty of care — Policy considerations and floodgates — Distinction between recognisable psychiatric illness and mere grief.
25 September 1998
Reported
Whether crumbed then frozen mutton is frozen meat (Chapter 2) or prepared meat (Chapter 16).
Customs and excise – tariff classification – distinction between Chapter 2 (meat fresh/chilled/frozen) and Chapter 16 (prepared/preserved meat) – meaning of "prepared" – illustrative nature of "including those merely covered with batter or bread crumbs" – breadcrumbing does not necessarily amount to preparation for cooking or preservation.
25 September 1998
Reported
Whether magistrate's court jurisdiction under art 28(1)(g) extends to personal claims causally connected to immovable property.
Landdroshowe – jurisdiksie – art 28(1)(g) – betekenis van "in verband met" – vereiste van direkte/of kousale verband tussen aksie en onroerende eiendom – insluiting van personam-eise en eise in verband met verband op grond – uitleging van "or in connection with a bond thereon".
25 September 1998
Reported
Whether a sudden blackout excuses delictual liability; court found blackout probable and dismissed the appeal with costs.
Delict – road collision – automatism (sudden blackout) as defence; burden of proof in delict – plaintiff must prove defendant's negligence; evidentiary value of contemporaneous statements and medical records; no adverse inference where witness availability not established.
25 September 1998
Whether equipment and bank funds were corporate property and the appeal for their return should be condoned.
Close corporations — ownership of assets — whether equipment and bank funds purchased/maintained in deceased’s name were corporate property; evidence and admissions as proof of transfer of benefit to the corporation; Close Corporations Act s50 — scope and misapplication; condonation for late filing of appeal; property recovery and transfer orders.
25 September 1998
A temporary suspension of advances did not constitute breach or repudiation absent fixed payment dates or demand.
Contract — Financing agreement construction — incorporation of discretionary-advance clause; mora — no default without due date or demand; repudiation — requires unequivocal refusal to perform; mitigation of damages.
25 September 1998
Reported
Appellant failed to prove assignment of obligations or prima facie right; appeal dismissed with costs.
Contract – Assignment – Distinction between transfer of rights and transfer of obligations – factual basis required to show transfer of obligations. Civil procedure – Attachment ad fundandam jurisdicitionem – prerequisite of prima facie cause of action against foreign peregrine. Civil procedure – Attachment ad confirmandam jurisdictionem – limited to claims sounding in money or relating to property; costs orders do not expand this principle. Interim interdict – prima facie right and balance of convenience – speculative future claims insufficient. Mootness (s 21A) raised but appeal decided on merits.
25 September 1998
Reported
Appellant failed to prove respondent exceeded speed limit; claim dismissed and condonation refused with costs.
Evidence – assessment of eyewitness testimony and measurements; expert extrapolation of speed from brake marks; burden of proof in alleging contractual breach by negligent driving; incorporation of contractual terms (not decided); condonation for deficient appeal record refused.
22 September 1998
Reported
Conversion of creditors' claims into redeemable preference shares constitutes a concession benefitting the respondent; respondent bears the burden to prove set-off.
Income Tax Act s 20(1)(a)(ii) – assessed loss reduction where taxpayer receives benefit from concession or compromise by creditors – conversion of debt into redeemable preference shares constitutes such a concession/compromise. Redeemable preference shares – substitution of debt with contingent/shareholder rights effects reduction/extinction of liabilities and thereby confers a benefit to the debtor. Burden of proof – s 82 places onus on taxpayer to prove set-off; Special Court erred in requiring Commissioner to quantify benefit. Procedural – s 83(7)(c) confines grounds at appeal; valuation issue not decided because not properly raised in notice of objection.
21 September 1998
Reported
A broad claim for a sandwich‑type shock tube was held obvious and the patent revoked; prior use not proved.
Patent law – claim construction – claims must be read by their language; cannot import limitations from specification examples. Patent law – novelty – prior commercial use must be proven by cogent contemporaneous evidence. Patent law – inventive step/obviousness – application of s 25 and structured inquiry (state of the art, difference, obviousness to skilled person). Patent law – secondary evidence (commercial success) relevant but not decisive; must be probative. Amendment – amendment to introduce new matter precluded; expiry of patent may render amendment impracticable. Costs – successful appellant awarded costs including two counsel.
21 September 1998
Reported
Delivery of an MMF claim form to an unauthorised agent does not extend prescription; claim prescribed after three years.
Prescription – Multilateral Motor Vehicle Accidents Fund Act/Agreement – Articles 55, 57 and 62 – delivery of prescribed claim form to wrong appointed agent does not extend prescription; substantial compliance and deeming under Article 62(e) inapplicable where agent lacked authority.
21 September 1998
Reported
Applicant failed to prove abuse under s 56; importation constituted working and 6% royalty was not shown reasonable.
Patents Act s 56 — compulsory licence; abuse of patent rights — non-working and refusal to licence; importation/local formulation as “working”; burden of proof in founding affidavit; reasonableness of royalty (R&D, promotion, capital recovery).
21 September 1998
Reported
Pleadings between defendant and a joined third party count as "in the action" for Rule 13(3)(a), so the third‑party notice was valid.
Civil procedure – Rule 13 third‑party notices – interpretation of "pleadings in the action in connection with which it is issued" – pleadings between defendant and a joined third party constitute pleadings in the action – leave to serve after close of pleadings unnecessary where served before close of pleadings in the overall action.
18 September 1998
Reported
The appellant failed to prove a tripartite or Administrator-bound bilateral land availability contract; Rule 33(4) issues answered negatively.
Public/statutory land – Black Communities Development Act s 34(9) – distinction between land vesting in State (Administrator) and in local authority – competence to make land available. Land availability agreements – Regulation 4 – requirement for written agreement and its interplay with s 34(9). Contract formation – animus contrahendi – whether administrative approval constitutes contractual undertaking by Administrator. Civil procedure – separation of issues under Rule 33(4) – limits on trial court when answering narrowed issues and effect of exceeding that scope. Costs – appellate costs where limited success and effect of substituted orders.
18 September 1998
Reported
Whether a contract silent on VAT can be read to oblige the buyer to pay VAT — court holds no tacit term; VAT liability rests on seller.
VAT — supply of immovable property — seller registered as entrepreneur — s 7(1)(a) and s 7(2) VAT Act — legal obligation to pay VAT rests on seller; Contract — silence as to VAT — implication of tacit term — bystander/business efficacy test — not satisfied; Rectification/counterclaim dismissed.
18 September 1998
Reported
Bribery by supplier principals of a buyer's agents tainted ensuing contracts, allowing the innocent buyer to rescind without prior restitution.
Commercial bribery — elements and proof of bribery; secret payments to agents; imputation of agent's knowledge to principal — limits; effect of bribery on ensuing contracts — voidable at instance of innocent principal; rescission without prior tender of restitution where restoration impossible.
17 September 1998
Reported
A handwritten "valid until" clause does not extinguish a surety's accrued liabilities; clauses must be read together.
Suretyship – construction of continuing guarantee – handwritten clause fixing "valid until" date – does not discharge accrued liabilities; clause read with notice clause to fix latest termination date; commercial efficacy and need for clear words to extinguish accrued debt; no ambiguity meriting parol evidence.
17 September 1998