Crompton Street Motors CC t/a Wallers Garage Service Station v Bright Idea Projects 66 (Pty) Limited t/a All Fuels

Crompton Street Motors CC operated a Caltex service station under a franchise and lease agreement originally concluded with Chevron in 2003. The agreements were renewed twice and expired by effluxion of time on 28 February 2018. Chevron ceded its rights and obligations to Bright Idea Projects 66 (Pty) Ltd in 2011, which later became owner of the property. In August 2017, Bright Idea notified Crompton that the franchise and lease would terminate on expiry and would not be renewed. Crompton refused to vacate, alleging a verbal undertaking that the franchise would be renewed and indicating it intended to seek arbitration under section 12B of the Petroleum Products Act. Bright Idea instituted eviction proceedings in the High Court. Crompton sought a stay of those proceedings pending referral to statutory arbitration.

Leave to appeal was granted, but the appeal was dismissed. The High Court’s refusal to stay proceedings and its eviction order were upheld. The applicant was ordered to pay the respondent’s costs, including the costs of two counsel.

The case provides authoritative clarification that section 12B of the Petroleum Products Act does not oust or suspend the High Court’s jurisdiction. It resolves conflicting High Court decisions and affirms that parties in the petroleum industry have a choice between statutory arbitration and court litigation, both subject to the same fairness standard. It also clarifies the interaction between section 12B and the Arbitration Act.