Dobsa Services CC v Dlamini Advisory Services (Pty) Ltd and Another; Dlamini Advisory Services (Pty) Ltd and Another v Dobsa Services CC

Dobsa Services CC rendered forensic investigation services under contract to Bakubung Ba‑Ratheo Traditional Community through Dlamini Advisory Services (Pty) Ltd and its managing director. A payment dispute arose, leading Dobsa to sue the company for outstanding fees and alleged loss of profit. Although summons was served, the company failed to defend due to an inadvertent error in emailing the summons to an incorrect attorney address. Default judgment was granted in Dobsa’s favour. The company then applied for rescission of the default judgment and sought an urgent interdict to stay execution after Dobsa issued a writ and proceeded with attachment. The High Court granted the interdict, later rescinded the default judgment, ordered the company to pay the costs of the rescission application, and ordered Dobsa to pay the costs of the interdict application. Both parties appealed only against the adverse costs orders.

Both appeals were dismissed with costs.

The case reaffirms the narrow grounds on which appellate courts may interfere with costs orders and underscores that rescission of default judgment is an indulgence for which applicants usually bear costs. It also illustrates that a judgment creditor who unreasonably insists on execution in the face of a bona fide rescission application risks an adverse costs order.