THE SUPREME COURT OF APPEAL
REPUBLIC OF SOUTH AFRICA
| Pellow and Another v Club Refrigeration CC | |
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| Supreme Court of Appeal -469/03 | Hearing date: 16 September 2004 |
| Judgment date: 29 September 2004 | |
The effect of a reservation of ownership clause in a contract of locatio conductio operis (lump sum building contract) in favour of the building contractor, where insolvency of the employer has supervened before the works have been completed, discussed. |
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Media Summary
of Judgment |
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From: The Registrar, Supreme Court of Appeal Please note that the media summary is intended for the benefit of the media and does not form part of the judgment of the Supreme Court of Appeal
On 29 September 2004 in A D Pellow NO & Another v Club Refrigeration CC the Supreme Court of Appeal dismissed an appeal from the Pretoria High Court awarding the proceeds of the sale (R1,28m) of refrigeration equipment to Club Refrigeration CC. Club Refrigeration contracted with Fisher Foods South Africa (Pty) Ltd to build a factory in Kempton Park, in the course of which it supplied movable goods. It reserved ownership in the goods until paid. Fisher Foods went insolvent before paying for all of the goods. Club Refrigeration claimed their return. The Industrial Development Corporation claimed that the goods were covered by the notarial bond it had registered over all movable goods belonging to Fisher Foods. The goods were sold. The SCA upheld the order of the High Court awarding the proceeds to Club Refrigeration. The court held that the interim payment certificate provisions in the contract with Fisher Foods provided a mechan ism for determining whether the goods had been paid for. They had not, so Club Refrigeration was the owner of the goods when Fisher Foods went insolvent and was therefore entitled to payment of the proceeds of their sale.
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