Horn v Ovofield (Pty) Ltd (2986/2024) [2025] ZAECQBHC 7 (20 March 2025)

68 Reportability
Land and Property Law

Brief Summary

Execution — Builder's lien — Substitution of lien with security — Applicant sought to substitute respondent's builder's lien over her property by paying security into trust pending resolution of legal proceedings — Respondent claimed a lien for unpaid fees related to construction work — Court found that the respondent was in possession of the property and thus entitled to the lien — However, it was just and equitable to allow substitution of the lien with security, as the applicant had acted in good faith and made reasonable attempts to resolve the dispute — Amount of R47 774.25 tendered as security deemed adequate — Respondent ordered to return keys and allow occupation of the property upon payment of security.

Comprehensive Summary

Case Note


Adele Horn v Ovofield (Pty) Ltd

Case No.: 2986/2024

Judgment delivered on: 20 March 2025


Reportability


This case is reportable due to its significance in clarifying the legal principles surrounding a builder's lien and the conditions under which a court may substitute a lien with security. The judgment addresses the balance between the rights of property owners and contractors, particularly in the context of disputes over construction work and the implications of possession.


Cases Cited



  • United Building Society v Smookler’s Trustees and Golombick’s Trustees 1906 TS 623

  • Reed Bros v Ford 1923 TPD 150

  • Pheiffer v Van Wyk 2015 (5) SA 464 (SCA)

  • McWilliams v First Consolidated Holdings 1982 (2) SA 1 (A)

  • Wightman t/a JW Construction v Headfour (Pty) Ltd 2008 (3) SA 371 (SCA)

  • Cadac (Pty) Ltd v Weber-Stephen Products Company and Others 2011 (3) SA 570 (SCA)

  • Myers v Gearbox Centre (Pty) Ltd [1977] 4 All SA 163 (W)

  • Golden Dividend v Absa Bank (569/2015) [2016] ZASCA 78

  • Limpopo Legal Solutions v Vhembe District Municipality 2017 (9) BCLR 1216 (CC)


Legislation Cited



  • Magistrates’ Court Act 32 of 1944


Rules of Court Cited



  • None cited.


HEADNOTE


Summary


The case involves an application by Adele Horn to substitute a builder's lien held by Ovofield (Pty) Ltd over her property with a payment of security pending the resolution of a dispute regarding alleged construction defects and outstanding payments. The court ultimately ruled in favor of the applicant, allowing her to pay the disputed amount into trust and regain possession of her property.


Key Issues


The key legal issues addressed in this case include:
1. Whether the respondent holds a valid lien over the applicant's property.
2. Whether it is just and equitable to substitute the lien with a payment of security.
3. The adequacy of the amount proposed as security.


Held


The court held that the respondent did not have a valid lien over the property as the applicant was not in possession of it. The court ordered that the lien be substituted with a payment of R47,774.25 into trust, allowing the applicant to regain possession of her property.


THE FACTS


The parties entered into a building contract on 9 February 2022, where the respondent was to construct a residential dwelling for R1,186,847.00. The applicant became dissatisfied with the quality of work and alleged overpayments, leading to a dispute. The respondent claimed a lien for R47,774.25 for additional work done. The applicant sought to substitute this lien with security to regain possession of her property, which the respondent contested.


THE ISSUES


The court had to decide whether the respondent held a valid builder's lien over the property, whether the lien should be substituted with a payment of security, and if so, what the appropriate amount of security should be.


ANALYSIS


The court analyzed the nature of the builder's lien and the requirements for its validity, emphasizing that possession is a critical element. The court found that the respondent had not established a valid lien as the applicant was not in possession of the property. The court also considered the applicant's good faith in seeking to resolve the dispute and her financial burden due to the ongoing litigation.


REMEDY


The court ordered the applicant to pay R47,774.25 into the trust account of her attorney as security. Upon payment, the respondent was directed to return the keys to the property and allow the applicant unhindered occupation. If the respondent failed to comply, the sheriff was authorized to take possession of the property.


LEGAL PRINCIPLES


The judgment established several key legal principles regarding builder's liens, including:
1. A lien requires the lien holder to be in possession of the property.
2. Courts have discretion to substitute a lien with security, considering the equities of each case.
3. The adequacy of the proposed security must be assessed based on the specific circumstances and claims made by the lien holder.

SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document
in compliance with the law and SAFLII Policy

IN THE HIGH COURT OF SOUTH AFRICA
(EASTERN CAPE DIVISION – GQEBERHA )

CASE NO.: 2986/2024
Matter heard on: 28 November 2024
Judgment delivered on: 20 March 2025

In the matter between: -
ADELE HORN Applicant
and
OVOFIELD (PTY) LTD Respondent


JUDGMENT


ROSSI AJ:
[1] This application concerns a builder’s lien exercised by the respondent over the
applicant’s immovable property. The applicant seeks an order substituting the respondent’s lien by way of furnishing security into her attorney’s trust account
pending the determination of an action to be instituted by the respondent . The relief is
formulated as follows:

‘1. That the applicant be ordered to pay into the trust account of JACQUES DU PREEZ
ATTORNEYS the amount of R47 774.25, alternatively any other amount this
2


Honourable Court may direct, to be held as security pending final resolution of any
legal proceedings to be instituted by the respondent within 20 (twenty) days of delivery of this order to claim its alleged fees for site clearing, levelling the ground, fencing,
cutting of large trees and engineering fees;

2. That forthwith upon payment in terms of paragraph 1 above being furnished to the respondent’s attorneys of record, the respondent be directed to deliver to the applicant
all keys of the property situated on Portion 11 of Farm 4[…] , V[…] S[…] R[…] G[…] ,
Gqeberha (the “property”) and allow unhindered occupation of the property to the
applicant;
3. In the event of the respondent failing to comply with paragraph 2 hereof, authorising
and directing the sheriff of this Honourable Court to take all necessary steps, including
utilising the services of a locksmith, to take possession of the property and to deliver same to the applicant and to give unhindered occupation of the property to the
applicant;
4. That, should the respondent fail to institute any legal proceedings as contemplated in paragraph 1 hereof within 20 (twenty) days after delivery of this order, the amount paid into the trust account of JACQUES DU PREEZ ATTORNEYS by the applicant as aforesaid be released;
5. That the respondent be ordered to pay the costs of this application as between attorney and client.’

The application

[2] Despite the prolixity of the papers filed of record, the lis in this application is
limited. A substantial portion of the affidavits, and annexed correspondence, address
issues concerning the quality of the works undertaken by the respondent in the execution of his duties as contractor, delays occasioned in the completion of the project, and remedial works to be undertaken to remedy defective workmanship. These issues are better left to the trial court in the action proceedings .
[3] At this stage w hat this court is called upon to determine are three interlinked
issues:
3



(a) Whether the respondent holds a lien over the property?
(b) If so, would be just and equitable for the respondent’s lien to be substituted by
the payment of security?
(c) And if so, the amount of the security?

[4] Having regard to the issues as I see it, the salient facts which are gleaned from
the founding affidavit are summarised below :

(a) On or about 9 February 2022 t he parties concluded a written building contract
in terms of which it was agreed that the respondent would construct a residential dwelling on the applicant’s property for the contract amount of
R1 186 847.00 including Vat.
(b) The building works were to be completed within 8 months from registration of
the contract with the National Home Builders Registration Council , which
registration took place in November 2022.
(c) To finance the project the applicant obtained a building facility with Nedbank
Ltd. The respondent has drawn an amount of R998 951.48 from this facility –
comprising 84% of the full contract sum.
(d) Prior to completion of the project and disparaged by the quality of the works already undertaken, the applicant instructed Lufeb Construction Services
(‘Lufeb’)
1 to prepare a snag list which took place in March 2023. This snag list
forms part of the papers and lists over the course of two pages works/items
which do not accord with minimum building standards.
(e) The applicant’s former attorneys addressed a letter to the respondent on 4 April
2023 contending an overpayment2 for materials allegedly not used and a
demand for rectification of items on the snag list . Failing compliance, the letter
warned that the contract would be cancelled.
(f) On 2 May 2023 the respondent , through its former attorney s, denied that there
had been defective works or an overpayment and importantly for present
purposes contended that the applicant ‘is indebted to our client in the amount of

1 According to the applicant Lufeb was appointed to facilitate the installation of an electrical connection
and gained access to the site through the respondent’s employees.
2 In the amount of R341 629.00.
4


R47 774.25 for site cleaning, levelling the ground according to the NHBRC, fencing,
cutting the large trees and engineer fees. We hereby demand that your client settle the
outstanding amount within 7 days hereof, failing which my client will proceed to recover
same from your client.’
(g) In May 2023, and in circumstances not readily apparent from the papers, a
second report on the purported defective works was prepared by Independent
Building Consultants (‘IDC’) .
(h) Correspondence ensued between the legal representatives . Ultimately, the
applicant cancelled the agreement on 6 May 2024. Although l iability to the
respondent in the sum of R47 774.25 was denied, th e amount was tendered by
way of substituted security for the respondent’s lien. In the same letter the
applicant’s attorneys convey ed that the applicant required the keys and
occupation of the property forthwith and was being prejudiced by the
respondent’s conduct .3
(i) Time was again expended4 by the legal representatives in an effort to reach
agreement on mediat ion and/or arbitrat ion. No consensus was reached. The
applicant , eager to gain occupation, repeated her tender by way of letter dated
9 July 2024.5 In paragraph 4 of the letter it is stated ‘(U)nless your client’s written
acceptance is received by close of business 16 July 2024, our client will proceed with
the necessary application for occupation of the property and delivery of the keys’. The
response by the respondent’s attorney dated 11 July 2024 does not address
the tender. At no time does the respondent’s attorneys contend that the
respondent does not have possession of her property.6 An important aspect to
which I shall return.
(j) This application was launched in early August 2024.

[5] The crux of the respondent’s defence is the following:


3 The applicant was paying the bond and paying a rental expense.
4 During the period late -May until mid -July 2024.
5 The applicant’s attorneys also addressed correspondence dated 10 June 2024 indicating that they
require d an answer to the applicant request for occupation and the tender (annexure K ). This issue is
again canvassed in her attorney’s letters dated 21 June 2024 (annexure M) and 28 June 2024
(annexure N).
6 The respondent’s attorney ’s letters of 15 May 2024 (annexure J), 12 June 2024 (annexure L) and 11
July 2024 (annexure P) are silent on these issues.
5


(a) A denial that the works undertaken did not comply with minimum building
standards . The respondent contended that a material dispute of fact arose as
early as 2 May 2023.7 The respondent further admit ted its attorney’s demand
for the sum of R47 774.25.8
(b) The respondent queried the non-joinder of the Bondholder (Nedbank) to the
proceedings.9
(c) The applicant repudiated the contract, which repudiation was accepted by the
respondent and entitled it to claim damages against the applicant, i.e., the
balance of the purchase price as well as special damages.10
(d) The respondent contended that the applicant has had possession of her
property (albeit unlawfully) since 3 February 2024 when the respondent’s
deponent and his employee were chased off site by the applicant .11 To bolster
this allegation, the respondent referenced the two experts instructed by the
applicant to prepare reports.12
(e) The respondent assert ed that it holds a builder’s lien over the property stating,
‘(T)he mere fact that the applicant has repudiated and subsequently purported to
cancel the agreement does not release the property from the builder’s lien which the
respondent exercises over the property .’13
(f) The tendered security in the amount of R47 774.25 is inadequate.
(g) Given the material disputes in the matter, the matter should be determined in
action proceedings or expedited arbitration.

[6] In reply, the applicant denie d that she has possession of the property and
further explained ‘I have access to the property itself as the exterior gate to the

7 This date ties in with the respondent’s former attorney’s letter of 2 May 2023, which I have discussed
in paragraph [4](f) above.
8 Conveyed in the same letter of 2 May 2023.
9 This argument was not advanced by the respondent’s counsel in argument before me.
10 In this regard the respondent obliquely alludes to a claim of over R9 million which it intends to institute
by way of counter -claim against the applica nt which is premised on its inability to meet its financial
commitments.
11 The respondent’s deponent referred to an altercation where he arrived on site to undertake a site
inspection. The applicant arrived at the property and set her dog on the deponent and his employee
and demanded that they leave the premises. They did so in order to avoid further conflict. Pictures of
the applicant’s ‘large, fierce dog’ form part of the papers. In reply , the applicant denie d that she set her
dog on the respondent’s deponent and contended that he approached her in an aggressive manner
and threatened to shoot her dog. She asked him to leave the property.
12 In regard to the second report dated 31 May 2023, the respondent postulates that the applicant gained
access by changing the locks on the property.
13 My own emphasis is added.
6


property does not lock but I do not have keys to the house itself. I submit that if I was
in possession of the site, the entire application would be a waste of the court’s time as the respondent would not have a lien.’


General legal principles

[7] Before I advert to the argument before me, it would be convenient to refer to
certain applicable legal principles. A lien ( also known as a right of retention or ius
retentionis ) arises when a person in possession of another’s property performs work
or expends money with reference to that thing.14 The basic idea is that the person in
possession (the lien holder or the retentor) can retain possession of the property until
he or she is reimbursed for the relevant work or expenditure.15 Therefore, the lien
serves as security for the payment of the debt owed to the retentor.16 A lien is
fundamentally a weapon of defence against a rei vindicatio or similar remedy of the
person who tries to retrieve it from the retentor, hence it does not, as a general rule, give rise to a cause of action.
17
[8] A debtor and creditor lien
18 or lien ex contractu secures the amount owing to a
creditor in terms of a contract.19 This personal right extends to cover all the expenses
incurred by the retentor upon the property in pursuance of the contract.20

[9] The so- called builder’s lien, such as in the present instance, is a common
example of a debtor and creditor lien encountered by our courts . The lien holder may
retain the property as against the contracting party until he has been compensated for the work and costs incurred.
21


14 United Building Society v Smookler’s Trustees and Golombick’s Trustees 1906 TS 623 at 627- 628.
15 G Muller et al, Silberberg and Schoeman’s The Law of Property, 6ed (‘Silberberg’) , 487.
16 Ibid.
17 Reed Bros v Ford 1923 TPD 150 at 154.
18 The distinction between enrichment and debtor -and-creditor liens has been subject to academic
scrutiny and debate – see Silberberg supra 488. This debate, although interesting, plays no role in this
matter as the enforcement of a debtor -and-creditor liens has been uniformly applied by our courts – see
generally Pheiffer v Van Wyk 2015 (5) SA 464 (SCA).
19 TJ Scott, The Law of South Africa (‘LAWSA’), Vol 26(1), 3ed, para 311.
20 Ibid.
21 Pheiffer v Van Wyk 2015 (5) SA 464 (SCA) para 11.
7


[10] A lien exists only if the lien holder is in possession of the thing to which his or
her claim relates for as long as he or she retains possession thereof.22 The concept of
possession, as an essential element, was elucidated by Innes CJ more than a century
ago in Scholtz v Faifer23 ‘(H)ere the p ossession which must be proved in the ordinary sense
of the term – that is, possession by a man who holds pro domino, and to assert his rights as
owner. It is enough if the holding is with the intention of securing some benefit for himself as
against the owner… But to this natural possession, as to all possession, two elements are
essential, one physical, and the other mental. First there must be physical control or occupation – the detentio of the thing; and there must be the animus possidendi – the intention
of holding and exercising that possession.’


Discussion

a) Does the respondent hold a lien over the property?

[11] With these principles in mind, I now approach the issues as defined in
paragraph [3] above.

[12] The applicant contends that she does not have possession of her property and
is currently being prejudiced in that she is paying for the bond over the property24 as
well as rental for alternative accommodation. The applicant attached to her founding
affidavit her bond statement as at end of May 2024 and a month -to-month lease
agreement which commenced on 1 June 2024.25

[13] The applicant’s attorneys have on several occasions called for the applicant’s
possession to be restored and for the keys to the property. This is coupled with the tender for security . At no stage did the respondent contend that it was not in
possession of the property or did not have the keys to the property. At a time when
the threat of litigation was looming, the failure to correct the applicant’s misconception
(if one were to accept the respondent’s version) is, to my mind, inexplicable. In this

22 Scholtz v Faifer 1910 TPD 243. The case retains judicial favour and was quoted with approval in
Wightman t/a JW Construction v Headfour (Pty) Ltd 2008 (3) SA 371 (SCA) par a 26.
23 Scholtz v Faifer supra 246.
24 A monthly instalment of R15 856.30 being payable.
25 The lease agreement attached to the papers is unsigned.
8


regard I find the dictum expressed in McWilliams v First Consolidated Holdings26
apposite.

[14] To reinforce the respondent’s contention that the applicant is in possession, the
respondent refer red to her appointment of Lufeb and IDC , who had access to the
property to prepare their reports . The Lufeb snag list can be disposed of easily. Lufeb,
who was meant to work in conjunction with the respondent, gained access to the site
through the respondent’s staff. Although t he respondent complain ed that the snag list
was prepared surreptitiously it does not disput e Lufeb’s method of access . In fact, the
respondent admit ted that the site was under its control at the time. The appointment
of Lufeb is thus a non- starter.

[15] The circumstances under which IDC came to inspect the property and prepare
its report dated 31 May 202327 is slightly more cumbersome are not addressed in
founding. In reply the applicant explained that although she has access to the property
(the erf as I understand it) as the exterior gate does not lock, she does not have keys
to the house itself. In the IDC report it is not expressly stated whether its agent entered
the house or not . The report does refer to the interior in meticulous detai l. The author
of the report commented that he was unable to inspect the garage as it was locked.
One would not have expected this distinction to be made if he did not have access to
the inside of the property. On this issue, I shall assume that IDC accessed the inside
of the property in May 2023. But does this mean that the applicant had possession of
the property from such date? I find that it does not. I say so for f ive reasons.

[16] Firstly, I have already mentioned that the respondent failed to repudiate the
applicant’s contention that she did not have possession of her property . This to me is
inexplicable, and more consistent with an a dmission by it of the truth of such
assertion.28

26 McWilliams v First Consolidated Holdings (‘McWilliams’) 1982 (2) SA 1 (A) 10E -H: ‘But in general
where according to ordinary commercial practice and human expectation firm repudiation of such an
assertion would be the norm if it was not accepted as correct , such party’s silence and inaction, unless
satisfactorily explained may be taken to constituting an admission by him of the truth of the assertion or
at least will be an important factor telling against him in the assessment of the probabilities and in the
final determination of the dispute. ’
27 Some 2 months after the Lufeb snag list.
28 The fact that the letter contains the statement that the failure to deal with an y issue should not be
construed as an admission is, to my mind, insufficient to dispel the application of the McWilliams

9



[17] Secondly , the respondent seeks to rely in its answer to a spoliation which
occurred on 3 February 2024, not that it was dispossessed several months earlier (as
of May 2023) .29

[18] Thirdly, the reason for the respondent’s attendance on the site on 3 February
2024 was to conduct a ‘site follow up check’. It would not be necessary, or required of
it, to conduct a site check if it had already been dispossessed in Ma y 2023 . To my
mind this is consistent with what is conveyed by the respondent’s attorney in her letter
of 12 June 2024, ‘our client has previously recorded interference [by] your client when they
visited the site to ensure that it was safe and had not been vandalised. Please note that any
interference with the appointed engineer or quantity surveyor in carrying out their task30 will
not be tolerated and will be met with interdictory proceedings at which time this letter will be
disclosed to the court’. As I read this paragraph, if the respondent did not have
possession of the site and the applicant had indeed changed the locks, it would have
asked for access to the property. It would have asked for the property to be opened.
It does not, presumably because it can enter the property . It has possession – the
physical possession and the intention. It simply asks th at the applicant not to interfere
with the inspection.

[19] Fourthly, there are contradictions on the respondent’s own version regarding
the existence of a builder’s lien. I have already mentioned that it alleged that the
applicant has possession. However, elsewhere in its affidavit, the respondent’s deponent states:



principle. The positive assertion is raised on several occasions by the applicant’s attorneys. Litigation
was repeatedly being threatened. A prudent attorney would grapple with the issues at stake, take proper
instructions, and communicate its client’s stance in response to such communication. If the respondent
was not possessed of the property, why not say so. After all it is an accepted principle of in our law that
litigation is not a game – see for example Cadac (Pty) Ltd v Weber -Stephen Products Company and
Others 2011 (3) SA 570 (SCA) para 10.
29 At the time when IDC prepared its report.
30 The task here is the assessment of works in relation to the following clause in the building contract –
‘In respect of progress draws where a dispute arises in respect of the amount that the builder is entitled
to draw, or payment is not made timeously, a certificate by an engineer or quantity surveyor to the effect
that the building construction works to the value indicated on the said certificate have been erected on
the property shall be final and binding on both parties. The cost of issuing such certificate shall be for
the owner’s account and shall be payable on demand.’
10


‘42.1 The mere fact that the applicant has repudiated and subsequently purported to cancel
the agreement does not release the property from the builder’s lien which the respondent
exercises over the property .

43.4 In the circumstances, the lien attaches , and the mere fact of a repudiation and
subsequently a purported cancellation the applicant does not extinguish a lien. There is
damages claim which the applicant conveniently overlooks which damages claim arises as a
result of the precipitous conduct.’ 31

[20] On the respondent’s own version, it is exercising a lien over the property , which
it would not be able to do so if it did not have possession of the property .

[21] Lastly, I find it particularly implausible that the applicant would go to the
expense of bringing this application, and if successful, pay an amount of R47 774.2532
into trust in anticipation of an action being instituted against her, if she had possession
of her property.

[22] Accordingly, I am inclined to reject the version of the respondent and adopt the
robust approach advanced in Wightman t/a JW Construction v Headfour (Pty) Ltd and
Another33 which incidentally also concerned a spoliation by an owner against a
contractor :

‘[12] Recognising that the truth almost always lies beyond mere linguistic determination the
courts have said that an applicant who seeks final relief on motion must in the event of conflict,
accept the version set up by his opponent unless the latter’s allegations are, in the opinion of
the court, not such as to raise a real, genuine or bona fide dispute of fact or are so far -fetched
or clearly untenable that the court is justified in rejecting them merely on the papers : Plascon -
Evans Paints Ltd v Van Riebeeck Paints (Pty) Ltd [1984] ZASCA 51; 1984 (3) SA 623 (A) at
634E-635C. See also the analysis by Davis J in Ripoll -Dausa v Middleton NO [2005]
ZAWCHC 6 ; 2005 (3) SA 141 (C) at 151A -153C with which I respectfully agree…34

[13] A real, genuine and bona fide dispute of fact can exist only where the court is satisfied
that the party who purports to raise the dispute has in his affidavit seriously and unambiguously

31 My own emphasis.
32 Or such amount to be determined by the court.
33 Wightman t/a JW Construction v Headfour (Pty) Ltd 2008 (3) SA 371 (SCA).
34 My own emphasis.
11


addressed the fact said to be disputed. There will of course be instances where a bare denial
meets the requirement because there is no other way open to the disputing party and nothing
more can therefore be expected of him. But even that may not be sufficient if the fact averred
lies purely w ithin the knowledge of the averring party and no basis is laid for disputing the
veracity or accuracy of the averment. When the facts averred are such that the disputing party
must necessarily possess knowledge of them and be able to provide an answer (or
countervailing evidence) if they be not true or accurate but, instead of doing so, rests his case
on a bare or ambiguous denial the court will generally have difficulty in finding that the test is
satisfied. I say ‘generally’ because factual averments seldom stand apart from a broader
matrix of circumstances all of which needs to be borne in mind when arriving at a decision. A
litigant may not necessarily recognise or understand the nuances of a bare or general denial
as against a real attempt to grapple with all relevant factual allegations made by the other
party. But when he signs the answering affidavit, he commits himself to its contents,
inadequate as they may be, and will only in exceptional circumstances be permitted to disavow
them. There is thus a serious duty imposed upon a legal adviser who settles an answering
affidavit to ascertain and engage with facts which his client disputes and to reflect such
disputes fully and accurately in the answering affidavit. If that does not happen it should come
as no surprise that the court takes a robust view of the matter.’35

[23] Lastly on the issue of possession Mr Lambrechts for the respondent place d
reliance on Scholtz v Faifer36 where the court remarked that it not easy to define what
constitutes possession (or physical control) where a building is in complete or partly
completed, and that where the works are suspended for a considerable time ‘then it
seems to me that if the builder desires to preserve the possession he must take some special
step, such as placing a representative in charge or the work or putting a hoarding round it, or
doing something to enforce his right to its physical contr ol.’37 Mr Lambrechts argued that no
special steps have been taken by the respondent .

[24] I agree, however, such rationale is distinguishable in instances where the
property (albeit incomplete) is capable of being locked.38 On the papers before me, it

35 My own emphasis.
36 Scholtz v Faifer 1910 TS 243 at 247.
37 Ibid 248.
38 Ibid at 247 it is stated ‘When the house has advanced so far as to completion that the doors are
placed in position it may be locked up, and possession of the key would be equivalent to possession of
the building.’
12


is common cause that the property can be locked as both parties talk of the keys to
the property .

[25] For the aforesaid reasons, I find that the respondent is in possession of the
keys.

b) S hould the respondent’s lien be substituted by the payment of security?

[26] In light of my finding, the second question now falls to be answered.

[27] Whether a court will exercise its discretion to order restoration of the property
to its owner depends on the particular facts of each case.39 In Spitz v Kesting ,40 after
considering the authorities , Tindall J stated the law as follows:

‘The weight of the authority seems to me to be in favour of the view that even where the claim
in respect of which the jus retentionis is asserted is made in good faith, the court has the power
to order delivery to the owner against adequate security. Each case will depend on its
particular facts and the court, in exercising its discretion, will have regard to what is equitable
under all the circumstances, bearing in mind that the owner should not be left out of his property unreasonably and on the other hand should not be given possession if his object is,
after getting possession, to delay the claimant’s recovery of expenses. In the present case it
is clear to me that the applicant is acting in good faith. His attitude has been reasonable throughout and shows that he has no intention of keeping the respondent out of any money that may be due to him. The circumstances set out above show, I think, that the equitable
course for the court to adopt is to come to the assistance of the applicant.’

[28] The dictum by Tindall J has been described as the generally accepted view of
our courts.41 It is open to a court to order the return of the owner’s property against
the provision of security . This relief is grant ed, not as a right, but as a matter of
discretion,42 although our courts have persistently followed the approach of releasing

39 Silberberg supra pp 494 -495.
40 1923 WLD 45 at 49.
41 Peter Cooper & Company v De Vos; Peter Cooper & Company v Magistrate for the District of
Humansdorp and another [1998] JOL 2016 (E) at 12.
42 Ibid – and the authorities cited therein.
13


goods under attachment against payment of a sum claimed by a third party or the
furnishing of an adequate and proper guarantee.43

[29] I have had regard to the authorities cited above, and those referred to me by
counsel . In my view the court should exercise its discretion in favour of the applicant
and accordingly does so. I have arrive d at my conclusion based on inter alia the
following :

(a) The parties agreed that the building works would be completed within 8 months from registration of the building contract (i.e., completion during or about July
2023).
(b) The applicant has not had possession of her property for an extended period.
(c) Building works ha ve ceased due to the impasse between the parties.
(d) The applicant has had to lease alternative accommodation while the dispute is ongoing. She is having to pay her bond instalment and rental expenses.
(e) The applicant has endeavoured, through her attorneys, to resolve the dispute.
44
Security in respect of the respondent’s lien was tendered on several occasions ;
the earliest tender being on 6 May 2024.
(f) The respondent has not proffered any acceptable explanation in law why he
has not accepted the tender. The respondent does not contend that the method
of security45 is not proper . The only attack is that the amount is insufficient,
which will be addressed below.
(g) Contrary to the respondent’s contention, I do not believe that the applicant has
unnecessarily protracted this matter. To my mind the applicant’s bona fides ,
and attempts at resolution, are evident from her attorney ’s letters . She has
acted reasonably throughout. On what is before me, t he altercation on 3
February 2024 (the nature of which is disputed ),46 although undesirable, is
insufficient to tarnish the applicant as coming to court with ‘dirty hands ’.47

[30] Accordingly, I answer the second question in the affirmative.

43 Myers v Gearbox Centre (Pty) Ltd [1977] 4 All SA 163 (W) 166.
44 Several attempts at resolving the matter by way of mediation and/or arbitration were made.
45 By way of payment into the trust account of the applicant’s attorney.
46 Referred to in paragraph [5](c) above.
47 This is raised by the respondent in its heads of argument.
14



c) The amount of the security

[31] I have already mentioned that the respondent does not take issue with the form
of security. The formulation of precise wording contained in paragraph [1] of the notice
of motion is derived from what was conveyed to the applicant by the respondent’s
attorney in the letter of 2 May 2023 concerning the nature of the respondent’s lien and
the amount (being R47 774.25).48 This is the amount tendered.

[32] The question which now falls to be answered is whether this amount is
sufficient?

[33] At no point after the letter of 2 May 2023 does the respondent ’s attorney
contend that th e amount is no longer sufficient. Based on what is before me, the
respondent did not take steps to appoint an engineer or quantity surveyor to undertake
a valuation of its works. I shall return to this shortly.

[34] It is only in the respondent’s answer ing affidavit that it is contended that the
amount of R47 774.25 is insufficient and that it is entitled to security in the amount
R237 669.77. I presume that this amount comprises the balance of the contract price
plus R47 774.25. U nfortunately , I am left to speculate as the respondent does not
expressly explain how it arrived at this figure.49 The cogency of its evidence is
therefore inadequate.

[35] I have further difficulties with this contention. The respondent ’s lien
encompasses all the expenses actually incurred by it in pursuance of the contract.50
The balance of the contract price is not an expense incurred by the respondent. This would be in respect of future works or works not yet undertaken. On the respondent’s
own version, the construction is not complete and a further 16% construction effort is
required on the project
. It may well have a damages claim for this amount but that is
altogether a different issue.


48 Additionally, the respondent demands this amount by way of letter dated 20 June 2023 (annexure F).
49 On my calculation these amounts do not add up to R237 669.77.
50 United Building Society v Smookler’s Trustees and Golombick’s Trustees 1906 TS 623 at 628
15


[36] Had the valuation been undertaken, and the amount of works certified to be in
excess of the amount initially conveyed by the respondent, the argument of
inadequacy would be more persuasive. But a valuation is not before me. What is
before me is the figure of R47 774.25 which emanates from the respondent.

[37] The respondent’s bona fides are not assisted by its bland manner of dealing
with factual matter, such as the amount of its lien, which lies within its peculiar
knowledge. It proffers no explanation why it initially asserted th e initial amount and
now seeks to rely on a significantly higher figure. Lest it not be forgotten that prior to
the institution of these proceedings, lengthy correspondence was exchanged between
the attorneys. At no point did the respondent disavow the figure of R47 774.25. It is
only raised for the first time in its answering affidavit without explanation.

[38] Accordingly, and for the aforesaid reasons, I find the amount of R47 774.25 to
comprise of adequate security. I exercise my discretion, based on what I have set out
above, in awarding security in this amount.

[39] Lastly, although reversed in sequence, and applying the now well- known test
formulated by the Supreme Court of Appeal concerning the issue of non- joinder,51 I
do not find that Nedbank has a direct or substantial interest in the subject matter n or
this order .

Costs

[40] The applicant has been successful in her application and is entitled to her
costs.52 At the hearing of the application, I raised with counsel whether the
Magistrate’s Court scale should be applicable, if the applicant were to succeed, given
the amount of the security . Counsel requested an opportunity to present further
submissions to me on this issue, which I acceded to.


51 Golden Dividend v Absa Bank (569/2015) [2016] ZASCA 78 (30 May 2016) par a 10.
52 The general rule is that the successful party ought to be awarded his or her costs. See Ferreira v
Levin N.O.; Vryenhoek v Powell N.O . 1996 (2) SA 621 (CC); 1996 (4) BCLR 441 (CC) para 3; Abbott v
Von Theleman 1997 (2) SA 848 (C) 854B; and Mahlangu v De Jager 1996 (3) SA 235 (LCC) 246C -E.
16


[41] Ms Morris on behalf of the applicant filed additional submissions.53 Counsel for
the respondent opted not to file additional submissions .

[42] The amount of the security falls within the jurisdiction of the Magistrate’s Court .
Counsel for the applicant submit ted that as the value of the property exceeds the
jurisdictional limits of the Magistrate’s Court, costs on the High Court tariff should be
awarded. In this regard reliance was placed on the local decision of Goosen J in
Andries v Mango Moon Trading 1122 CC54 where High Court costs were awarded
despite that security f ell within the district court’s jurisdiction . Unfortunately, as this
aspect was not squarely addressed in the judgment, I do not find it to be authorit y.

[43] I do, however, find merit in Ms Morris’ submission concerning the value of the
property . The applicant’s relief is framed in terms of a mandament van spolie. The
applicant seeks an order directing the respondent to hand over ‘all keys of the
property…and allow unhindered occupation of the property.’

[44] Section 30(1) of the Magistrates’ Court Act55 reads ‘(S)ubject to the limits of
jurisdiction prescribed by this Act, the court may grant against person s and things orders for
attachments, interdicts and mandament van spolie.’ The ‘limits of jurisdiction’ referred to in
this subsection are those contained in ss 28 and 29 of the Magistrates’ Court Act. As
the value of property indeed exceeds the current threshold promulgated in terms of s
29, the Magistrates’ Court would not have had jurisdiction.

[45] It is so that the application could have been shorter given the issues for
determination. However, I do not believe that this, in and of itself, is sufficient to deprive the applicant of 30% of her costs, as suggested by the respondent. Accordingly, costs on the High Court S cale B are awarded.

[46] The applicant seeks an attorney and client cost against the respondent . The
award of costs is a matter in respect of which courts exercise a true discretion.56 A
true discretion exists where the court has a number of equally permissible options

53 Dated 3 December 2024.
54 Andries v Mango Moon Trading 1122 CC t/a V & R Auto Collision Repair Specialists [2014]
ZAECPEHC 42 (18 June 2014).
55 Act No. 32 of 1944.
56 Public Protector v South African Reserve Bank 2019 (6) SA 253 (CC) para 144.
17


available to it.57 The imposition of costs on an attorney and client scale is a punitive
measure.58 In Public Protector v South African Reserve Bank , the Constitutional Court
cited with approval the explanation adopted by the Labour Appeal Court in Limpopo
Legal Solutions v Vhembe District Municipality:59

“[t]he scale of attorney and client is an extraordinary one which should be reserved for cases
where it can be found that a litigant conducted itself in a clear and indubitably vexatious and
reprehensible conduct. Such an award is exceptional and is intended to be very punitive and
indicative of extreme opprobrium.”

[47] Put differently, where the conduct concerned is ‘ extraordinary ’ and worthy of a
court’s rebuke.60 Applying these principles to the matter at hand, I am not persuaded
that the respondent’s conduct, albeit open to criticism, warrants a punitive cost order .

[48] In the result , the following order is issued:

1. The applicant is ordered to pay into the trust account of JACQUES DU
PREEZ ATTORNEYS the amount of R47 774.25 to be held as security
pending final resolution of any legal proceedings to be instituted by the respondent within 20 (twenty) days of delivery of this order to claim its alleged fees for site clearing, levelling the ground, fencing, cutting of large trees and engineering fees.
2. The respondent shall, w ithin a period of 7 (seven) days of proof of
payment in terms of paragraph 1 above having been furnished to its
attorneys of record, deliver to the applicant all keys of the property
situated on Portion 11 of Farm 4[…] , V[…] S[…] R[…] G[…] , Gqeberha (the
“property”) and allow unhindered occupation of the property to the applicant .


57 Ibid.
58 Ibid par a 220.
59 Limpopo Legal Solutions v Vhembe District Municipality 2017 (9) BCLR 1216 (CC) para 17.
60 SS v VV-S 2018 (6) BCLR 671 (CC) para 41.
18


3. In the event of the respondent failing to comply with paragraph 2 above ,
the sheriff of this Honourable Court shall be authorised and directed to
take all necessary steps, including utilising the services of a locksmith,
to take possession of the property and to deliver same to the applicant and to give unhindered occupation of the property to the applicant .
4. Should the respondent fail to timeously institute the legal proceedings
contemplated in paragraph 1 above, the amount paid into the trust account of JACQUES DU PREEZ ATTORNEYS by the applicant as aforesaid shall be released.

5. The respondent is ordered to pay the costs of this application on the High
Court Scale B.
T ROSSI
ACTING JUDGE OF THE HIGH COURT
Appearances:
For the applicant : Ms Morris
Counsel for the applicant
Instructed by: Jacques Du Preez Attorneys
96 Mangold Street
Newton Park
Gqeberha
Ref: Mr J Du Preez

For the respondent : Mr I Lambrechts
(Heads of argument prepared by Mr B Dyke SC)
Counsel for the respondent
Instructed by:
D Gouws Inc.
19


136 Cape Road
Mill Park
Gqeberha
Ref: Mr D Gouws