Scoin Trading (Pty) Limited v Bernstein, Gillies Martin NO

The deceased, Gregory John Till, agreed in August 2007 to purchase a rare ZAR Een Pond Overstamp gold coin from Scoin Trading (Pty) Ltd for R1,950,000. He paid a deposit of R200,000 and undertook to pay the balance by the end of December 2007. Till died on 16 November 2007 before the balance became due. The respondent, as executor of the deceased estate, admitted liability for the outstanding capital amount but disputed liability for mora interest. The KwaZulu-Natal High Court granted judgment for the capital sum but refused interest. Scoin Trading appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The respondent was ordered to pay interest on the sum of R1,750,000 at 15.5% per annum from 1 January 2008 to date of payment, and to pay the appellant’s costs of suit.

The case clarifies South African law on mora interest by confirming that liability for contractual mora interest does not depend on fault or culpability and that the death of a debtor does not suspend or extinguish liability for interest on a monetary debt. It affirms the transmissibility of contractual obligations to a deceased estate and corrects a misinterpretation of earlier authority.