PCL Consulting (Pty) Ltd t/a Phillips Consulting SA v Tresso Trading 119 (Pty) Ltd

Tresso Trading 119 (Pty) Ltd, as lessor, sued PCL Consulting (Pty) Ltd for payment of rental arrears totalling R396 188,35 allegedly due under a written lease. The written lease described the leased premises as offices on the 6th floor of Fedsure Towers, Sandton. The plaintiff alleged that this description was incorrect due to a common error and that the parties’ true and continuing intention was that the lease related to offices on the 4th floor, which the defendant in fact occupied. The defendant entered appearance to defend and opposed summary judgment, not by disputing the true agreement or the identity of the premises, but by contending that rectification could not be sought in summary judgment proceedings and that the dispute should be referred to arbitration under an arbitration clause in the lease.

The appeal was dismissed with costs. The summary judgment granted by the court of first instance, and confirmed by the full court, was upheld.

The case clarifies that rectification does not, by itself, bar summary judgment and that summary judgment is competent where the facts justifying rectification are undisputed. It also reinforces the strict requirements placed on defendants opposing summary judgment and clarifies the relationship between arbitration clauses and court proceedings, particularly that an arbitrable dispute must actually exist.