The appellant (plaintiff) was a motor vehicle dealer. In August 2000, the respondent (defendant) purchased a 1995 Mitsubishi 2.8 Pajero from the appellant's Sinoville branch for R122,798.25. On 18 December 2000, the respondent resold the same vehicle to the appellant's Vermeulen Street branch for R120,000.00. The appellant discovered that the vehicle sold to it was actually a 2.5 model Pajero, not a 2.8 model as represented in the Purchase Agreement signed by the respondent. The written agreement stated that the seller declared and swore that all particulars were true and correct, including the vehicle description '95 Mitsubishi Pajero 2800 TDI'. Evidence showed the respondent had earlier complained to the Sinoville branch that the vehicle he purchased was a 2.5 model, not a 2.8 as represented to him, meaning he knew the true specification before reselling it. The appellant sued for R20,000.00 on several alternative bases including fraudulent misrepresentation. The magistrate's court granted absolution from the instance at the close of the plaintiff's case, which decision was upheld by the Transvaal Provincial Division.
The appeal succeeded with costs. The order of the Transvaal Provincial Division was set aside. The magistrate's order granting absolution from the instance was substituted with an order refusing the application with costs. The case was remitted to the magistrate for continuation of the trial. The respondent was ordered to pay the costs of the appeal.
At the close of the plaintiff's case on an application for absolution from the instance, the test is not whether the evidence establishes what would finally be required to be established on a balance of probabilities, but whether there is evidence upon which a court, applying its mind reasonably to such evidence, could or might find for the plaintiff. To survive absolution, a plaintiff must make out a prima facie case in the sense that there is evidence relating to all elements of the claim. For fraudulent misrepresentation, the plaintiff must adduce prima facie evidence of: (1) a false representation; (2) knowledge of its falsity; (3) an intention that it be acted upon; and (4) reliance causing loss. Where a plaintiff has established prima facie proof of damages using a consistent valuation methodology, this is sufficient in the absence of countervailing evidence from the defendant. The court must be concerned with its own judgment on whether the plaintiff has established a prima facie case, not what another reasonable person might think.
Heher JA observed that absolution from the instance, in the ordinary course of events, should be granted sparingly but when the occasion arises, a court should order it in the interests of justice. The Court noted that it was unnecessary to express an opinion on the other alternative causes of action pleaded by the appellant (breach of express or implied contract terms, breach of warranty, or loss of profits) since the prima facie case of fraudulent misrepresentation was sufficient to require the defendant to answer. The Court also commented that subsequent events (the profitable resale of the vehicle to Monsan Trading) were irrelevant to establishing the initial loss suffered at the time of the delict.
This case is significant in South African civil procedure for reaffirming and clarifying the test for absolution from the instance at the close of the plaintiff's case. It reinforces that the test is not proof on a balance of probabilities but whether there is evidence upon which a court might reasonably find for the plaintiff. The case provides guidance on what constitutes prima facie proof of fraudulent misrepresentation and demonstrates that absolution should be granted sparingly. It also clarifies that in delictual claims for damages, the plaintiff need only establish prima facie loss at the close of its case - the defendant bears the burden of leading countervailing evidence if the application is refused. The judgment illustrates the proper application of the test formulated in Claude Neon Lights (SA) Ltd v Daniel and refined in Gordon Lloyd Page and Associates v Rivera.
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