Paulsen and Another v Slip Knot Investments 777 (Pty) Ltd

Case No. Lower Court Judgments Hearing Date Judgment Date Majority Author  Vote
CCT 61/14 Western Cape Division, Cape Town, 24 Feb. 2012 and 12 Feb. 2013
SCA, 24 Mar. 2014
16 Sep. 2014 24 Mar. 2015 Madlanga J  8-1

By Duncan Wild on 27 March 2015

In this case, the Constitutional Court held that entities that engage in lending that falls outside the scope of the National Credit Act 34 of 2005 (“NCA“) (e.g. to entities which exceed the value thresholds set out in the Act) do not need to be registered as credit providers under the NCA, and a failure to register does not invalidate credit agreements outside the scope of the Act.  In addition, the Court reversed the current position regarding how the common law in duplum rule applies when litigation commences. The position before this case being that interest may start running again if the creditor institutes action. The Court, however, found that commencing proceedings will not have an effect on the in duplum rule, and interest may not run again. Interest will only run again on a judgment, which effectively is a new debt which restarts any in duplum calculation. Continue reading

Chevron SA (Pty) Ltd v Dennis Wilson t/a Wilson’s Transport and Others

Case No. Lower Court Judgments Hearing Date
CCT 88/14 Western Cape Division, Cape Town, 5 Jun. 2014 13 Nov. 2014

By Duncan Wild on 2 November 2014

This matter concerns the constitutionality of section 89(5)(b) of the National Credit Act 34 of 2005 (“NCA“).  This section of the NCA deals with how unlawful credit agreements must be treated. In particular, providing that the credit agreement be declared void and that the consumer must be refunded any money paid under the agreement.  Continue reading