Bonugli v Standard Bank of South Africa Limited

Standard Bank sued Beulah Evelyn Bonugli and Christopher Stephen Bonugli, in their capacities as trustees of the Rivonia Close Trust (RCT), and Mrs Bonugli also in her personal capacity, based on a general deed of suretyship. The suretyship bound them as sureties and co-principal debtors for the indebtedness of Union Charter Trust (UCT) arising from four aircraft lease agreements. UCT defaulted and was sequestrated. The bank repossessed and sold the aircraft and claimed payment under the suretyship. The defendants raised defences of lack of jurisdiction (as one trustee was permanently resident in Australia), lack of authority to conclude a general guarantee, rectification of the suretyship (alleging it was intended to be limited to a single earlier transaction), and disputes regarding the quantum claimed.

The appeal was upheld with costs. The order of the High Court was set aside and substituted with judgment in favour of Standard Bank for payment of R14 578 143 plus interest at 15.5% per annum from date of service of summons, and costs including the costs of two counsel.

The case clarifies South African law on submission to jurisdiction, confirming that a peregrine defendant who contests the merits without challenging jurisdiction may be taken to have submitted to the court’s competence. It also reaffirms the strict requirements for rectification of contracts and provides guidance on trustees’ authority and liability under deeds of suretyship.