MAJIEDT J
damages for breach of an implied contractual term that the registration of a bond in
respect of the purchase of property by a share block company would be carried out with
reasonable professional knowledge, care and skill; alternatively, for breach of duty of
care by the applicants for having registered the bond in contravention of the provisions
of section 14(1) of the Share Blocks Control Act.67 The ground on which the applicants
sought to have the action of the bank set aside was that the bank had already obtained
judgment by default on the invalid bond and therefore the action by the bank against
the applicants was an abuse of the process of court and it was vexatious for the bank to
persist with that action.
[66]
In its reasoning, the Court held that it had an inherent power to strike out claims
which were vexatious which, in this context, meant frivolous, improper, instituted
without proper ground, to serve solely as an annoyance to the defendant. The Court
went on to find that while an action that was unsustainable was vexatious, that had to
appear as a certainty and not merely on a preponderance of probabilities. The Court
dismissed the application on the basis that in relying on the default judgment obtained
by the bank rather than seeking to prove facts showing that the bond was valid, the
applicants had failed to show that the action against them was clearly unsustainable on
the basis that the bond validly secured the loan.
[67]
The applicants rely on this judgment only to argue that the inherent common law
power to strike out claims which constitute an abuse of process must be exercised with
great caution and only in a clear case. There can hardly be any quarrel with that
observation.68 But it bears noting that the Court in Bissett appears to favour a merits
assessment within an abuse of process enquiry by stating that an action which is
unsustainable is vexatious. However, the judgment also makes reference to proceedings
instituted “solely as an annoyance to the defendant”.69 This appears to include a
consideration of the motive or purpose behind the institution of the claim.
67
59 of 1980.
68
The same was said in Maphanga above n 15 at para 26.
69
Bissett above n 66 at 604E.
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