The respondent, Briti BK, operated a tile manufacturing business and sourced clay from an open-cast clay pit (groef C) on the same property. The appellant, the Stadsraad van Alberton, allegedly negligently diverted stormwater onto the respondent’s property, causing repeated flooding of groef C between 1995 and 2001. As a result, clay stored in the pit became inaccessible, forcing the respondent to purchase lower-quality clay to maintain production. The respondent also alleged that elevated groundwater levels caused excessive moisture and steam in kilns, reducing production efficiency. The respondent claimed damages for loss of profits for the years 1998–2001. By agreement under Uniform Rule 33(4), certain preliminary issues were separated for decision, namely whether the respondent would have mined clay from groef C but for the flooding, whether such mining would have been unlawful without authorisation under the Minerals Act 50 of 1991, and whether alleged unlawful mining would bar a claim for damages.