Loch Logan Waterfront (Pty) Limited and The Trustees of the N Georgiou Trust v Bentel Associates International (Pty) Limited

Bentel Associates International (Pty) Ltd, an architectural firm, was appointed by the N Georgiou Trust to design extensions to the Loch Logan Waterfront shopping centre in Bloemfontein. The contractual relationship was governed by written letters incorporating the standard Institute of South African Architects’ terms, which required written consent for any delegation or variation. During the project, the Trust sold the property as a going concern to Loch Logan Waterfront (Pty) Ltd. Bentel completed the work and claimed outstanding professional fees and disbursements. The Trust and the company disputed liability and counterclaimed for alleged breaches. The High Court found for Bentel but made errors in calculating the amount and interest, and held only the company liable. The appellants’ appeal lapsed due to excessive delays in filing the record, while Bentel pursued a cross appeal on calculation, interest, costs, and which entity was contractually bound.

The application for condonation and reinstatement of the appeal was dismissed with costs of two counsel. The cross appeal was upheld with costs of two counsel. The N Georgiou Trust was ordered to pay Bentel Associates International (Pty) Ltd the sum of R2 496 265.30 plus interest at 15.5% per annum from 19 May 2009 to date of payment, together with costs including those of two counsel.

The case reinforces strict compliance with appellate procedural rules and confirms that condonation will be refused where delays are excessive and unexplained, regardless of prospects of success. Substantively, it affirms South African contract law principles that delegation or substitution of parties requires clear written consent where the contract so provides, and that conduct such as invoicing alone does not effect a delegation.