Joob Joob Investments (Pty) Ltd v Stocks Mavundla Zek Joint Venture

The parties concluded a JBCC standard-form building contract in terms of which the respondent contractor agreed to build a resort hotel for the appellant employer. The contract appointed a principal agent with authority to issue interim and final payment certificates. Due to the employer’s non-performance, including failure to make payments and provide guarantees, the contractor validly cancelled the contract. After cancellation, the principal agent issued several interim certificates (certificates 10, 11 and 12) certifying amounts due for work executed, materials on site, and damages arising from cancellation. The employer refused to pay, and the contractor instituted action and applied for summary judgment based on the certificates.

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

The case is a leading authority on the legal status of interim payment certificates under JBCC building contracts, confirming that they are liquid documents capable of enforcement by summary judgment. It also clarifies the authority of a principal agent to certify damages after cancellation and provides important guidance on the proper application of summary judgment in South African civil procedure.