Rehau Polymer (Pty) Ltd v Brunettes Electrical (Pty) Ltd and Others

Rehau Polymer (Pty) Ltd entered into a written sub-lease agreement with the Coega Development Corporation (CDC) for the construction and lease of a factory in Uitenhage. After completion, and following the municipality’s requirement, a gas fire suppression system was installed in the low voltage room. The system was properly designed, installed and tested, and an occupation certificate was issued. However, at the time of a fire on 6 February 2010, the gas cylinders had not been armed, rendering the system inoperative and causing extensive damage. Rehau sued multiple parties. The fourth and fifth respondents were found delictually liable. Rehau’s contractual claim against CDC was based on alleged breach of contractual warranties relating to fitness for purpose and compliance with fire and safety laws.

The appeal was dismissed with costs, including the costs of two counsel.

The case clarifies the limits of contractual warranties in construction and lease agreements, distinguishing between compliance in design and construction versus post-completion operational failures. It reinforces principles of contractual interpretation in South African law and confirms that statutory compliance warranties do not necessarily extend to ongoing operational conduct unless expressly provided.