After hearing counsel in this matter, we allowed the appeal
with costs and issued an order in the following terms:“IT IS ORDERED THAT:-1. The appeal succeeds with costs.2. The judgment of the court a quo is set aside and substituted
with the following:“The application is hereby granted in terms of the draft
order.”We ...
After hearing counsel in this matter, we allowed the appeal
with costs and issued an order in the following terms:
“IT IS ORDERED THAT:-
1. The appeal succeeds with costs.
2. The judgment of the court a quo is set aside and substituted
with the following:
“The application is hereby granted in terms of the draft
order.”
We intimated that our reasons would follow in due course.
These are they.
The appellant, hereinafter referred to as (“Portland”) and
the second respondent hereinafter referred to as (“Bak Logistics”) are private
companies duly registered as such under the laws of this country. Portland is a
producer of cement which is sold both locally and externally. Bak Logistics
provides warehousing and bulk storage services to the general public.
The first respondent, hereinafter referred to as
(“Tupelostep”) is a company registered under the laws of South Africa. It has
its headquarters in that country. It provides extensive haulage freight
services throughout Southern Africa.
At the beginning of 2012, Portland obtained orders for the
export of cement to Mozambique. Sometime in February or March 2012, Portland
engaged Tupelostep to arrange the transportation of cement into Mozambique on
its behalf. The terms of the contract obliged Portland to convey the cement to
Tupelostep by rail. In turn, Tupelostep would arrange for the storage of the
cement pending receipt of export documents from Portland. In order to comply
with its obligations under this contract, Tupelostep entered into an agreement
with Bak Logistics for storage and warehousing of the cement pending its
conveyance to Mozambique. On receipt of clearance documents from Portland,
Tupelostep would then arrange for the transportation of the cement by road. The
process would, on occasion, entail the hire of vehicles from third parties.
There was, however, no contract between Portland and Bak Logistics, and
Portland was not privy to the contract between Tupelostep and Bak Logistics.
In September 2012, Portland transported a consignment of 1,270
tons of cement to Tupelostep by rail. It was stored with Bak Logistics. A
dispute then arose between Portland and Tupelostep regarding charges claimed by
the latter in the discharge of its obligations and services under the contract.
The parties attempted to settle the dispute but failed. In December 2012,
Tupelostep advised Portland that it would no longer allow movement of stock
from the warehouse unless it was paid certain sums of money being claimed by it
for demurrage and transportation costs.
On 16 January 2013, Portland gave notice to Tupelostep of
its intention to terminate the mandate for storage and transportation of the
cement. On 29 January 2013, Portland addressed an email to Tupelostep demanding
the release to it of documentation availed to Tupelostep in respect of the
consignment of cement under its control and in the possession of Bak Logistics.
In turn, Tupelostep responded by refusing to release the documents in its
custody for a number of reasons which are not germane to the resolution of this
dispute. On 4 February 2013, Portland filed an urgent application with the High
Court in respect of which it sought relief expressed as follows:-
“INTERIM RELIEF
GRANTED
1. Pending determination of this matter, the Applicant is
granted the following relief;
1) That 1st and 2nd Respondent be and
are hereby ordered to release to applicant the applicant's cement being 1,270
tons of cement held by 1st and 2nd respondent at 2nd
respondent's premises at 106 Dartford Road, Willowvale Industrial Area, Harare.
2) That the proceeds of sale of the cement be held at a
trust account in the law firm of Messrs Gill, Godlonton & Gerrans of 7th
Floor, Beverly Court 100 Nelson Mandela Avenue.
TERMS OF THE FINAL
ORDER SOUGHT
That you show cause to this Honourable Court, if any, why a
final order should not be made in the following terms:
1. That the proceeds of the cement held by Messers Gill,
Godlonton & Gerrans in their trust account be disbursed in terms of an
order of this Honourable Court confirming the entitlement of either party to
such proceeds.
2. That the costs of this application be borne by the party
succeeding in the anticipated litigation between the parties. (sic)”
The application was opposed by both respondents.
The High Court heard the parties on the question of urgency
and decided that the application was not urgent. The court then dismissed the
application with costs on the basis of lack of urgency.
This appeal is against that decision.
It was contended that the High Court erred in the exercise
of its discretion and that, to that extent, it had misdirected itself.
Portland approached the High Court for urgent relief on the
premise that Tupelostep was holding onto cement which belonged to the former
and that its actions were illegal and unjustified. It was also alleged, in the
certificate of urgency, that cement, by virtue of its hygroscopic nature, had a
limited lifespan and that any continued delay in its release to Portland would
result in financial loss to Portland.
Whilst accepting that commercial interests can be advanced
as a basis for urgency, the learned judge in the court a quo found that the
urgency in the matter before him was self-created. This is what the learned
judge stated:-
“I am, however, persuaded by counsel for respondents'
argument that the urgency pleaded by the applicant is self-created. In the
first place, it was not denied that the cement has been with the respondents since
September 2012. If, therefore, cement has a short shelf life why did the
applicant not seek its release much earlier? Secondly, the argument that it
tends to attract moisture is as relevant now as it was from the onset of the
rainy season. The need to act was ever present from the onset, taking into
account the nature of the product that is in dispute. In other words, the
matter cannot assume more urgency towards the end of the shelf life of a
product whose delicacy has never been in doubt.”
It seems to me that the court a quo determined the matter
on facts which were not before it.
The consignment of cement was sent to the warehouse in
September 2012, but the record shows that there was movement of stocks from the
warehouse without hindrance. The problem arose on 16 January 2013 when
Tupelostep wrote an email to Portland advising that a halt had been placed on
the movement of the product from the warehouse on its instructions. That is
when, in fact, the need to act arose and not in September 2012 as stated by the
learned judge in the court a quo. This fact is confirmed by the opposing
affidavit filed on behalf of Tupelostep in which the statement is made that:
“Up until 15 January 2013, the first respondent never
prevented the removal of cement.”
It is therefore accepted by Tupelostep that cement was
being moved up until that date. If Portland had the right to remove cement up
until that date, it follows that the need to act cannot, by any stretch of the
imagination, have arisen prior to that date.
In its judgment, the court accepted that what triggered the
application was the negation, on 31 January 2013, of an agreement by the
parties allowing the removal of the cement by Portland. The application was
filed on 4 February 2013, a mere four days after the agreement was negated by
Tupelostep. The suggestion that the cement should have been removed in
September 2012 is therefore not supported by the record as the storage in
September was for purposes of facilitating its transportation. The storage was part
and parcel of the modus operandi of the contract by the parties.
I am satisfied that the matter ought to have
been dealt with on the basis of urgency. No delay had been established on the
respondents' papers.