Karen Harriet Eley (formerly Memmel) v Lynn & Main Inc

The appellant bound herself as surety and co‑principal debtor in solidum for the overdraft indebtedness of Help Seat It Southern Africa (Pty) Ltd to Nedbank Limited. Judgment by default was obtained against the principal debtor on 21 May 2001. Nedbank later ceded its rights, including the judgment debt and all security, to the respondent. In 2005 the respondent obtained default judgment against the appellant as surety. The appellant applied for rescission, contending that the claim against her had prescribed after three years under section 11(d) of the Prescription Act 68 of 1969, and that the cession did not validly include the judgment debt.

The appeal was dismissed with costs, and the default judgment against the appellant remained in force.

The case confirms authoritatively that where judgment is obtained against a principal debtor, the claim against a surety and co‑principal debtor prescribes after thirty years, not three. It reinforces the accessory nature of suretyship obligations and settles uncertainty created by earlier conflicting authority.