Blue IQ Investment Holdings (Pty) Ltd v Southgate (JA28/13) [2014] ZALAC 21 ; (2014) ILJ 3326 (LAC) (30 May 2014)
Coram: Waglay JP, Ndlovu JA, Coppin AJA
Heard: 11 March 2014 Delivered: 30 May 2014
LAC Summary:
Contract- existing contract of employment has ‘no variation/ no cancellation clause’ restricting variations and cancellations thereof to writing signed by or on behalf of the parties-
Held: new alleged oral contract was to cancel and /or vary the existing contract- new contract not completely negotiated- and in any event not valid in light of the no variation clause in the existing contract. Authority to contract-
Held: CEO had no authority to conclude new contract of employment with person on a management level without consulting the Board- intended position was at management level-Turquand rule of no assistance to alleged appointee.
[1] This is an appeal against the judgment of the Labour Court (A C Basson J) ordering the appellant to pay the respondent “contractual damages in the amount of R5 576 500” as well as party and party costs. Leave to appeal was granted on petition by this Court. The case is about whether a three year employment contract was concluded between the parties and whether the appellant had repudiated that contract, resulting in the respondent suffering damages.
[2] In the Labour Court, the respondent’s claim against the appellant, in terms of his statement of claim, was for reinstatement, an order directing the appellant to pay him the remuneration he would have earned between 15 February 2009 and the date the contractual relationship between them is restored, as well as costs of suit on the scale as between attorney and own client. The respondent claimed, alternatively, an order directing the appellant to pay him the remuneration he would have earned between 15 February 2009 and 15 October 2011, as well as costs on an attorney-client scale.