From: The Registrar, Supreme Court of Appeal

DAVID LEIBOWITZ t/a LEE FINANCE v A T MHLANA AND OTHERS

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

Today the Supreme Court of Appeal upheld an appeal by Mr David Leibowitz against an order of the full court (Transkei High Court) which had held that that court had jurisdiction over Leibowitz. The latter resides and carried on a business of moneylending in Durban.

The application against Leibowitz was brought by eight teachers residing in the Transkei who had applied and obtained small loans from him in Durban. They had handed their insurance policy contracts to him as security for the loans. In these proceedings their complaint was that he dealt with the policies on the basis that they had been ceded to him and surrendered some to three insurance companies which were also cited in the application. The companies did not oppose the matter. In his opposition Leibowitz objected to the jurisdiction of the Transkei High Court by reason that he resided and the cause action arose outside its jurisdiction.

The court of first instance upheld that contention and dismissed the application with costs. On appeal the full court reversed that order and referred the matter back to the court below for it to deal with the merits.