Case Comments: The Evergreen Topic of Locus Standi and Security Cessions: Thekweni Properties (Pty) Ltd v Picardi Hotels Ltd and Picardi Hotels Ltd v Thekwini Properties (Pty) Ltd

• Jurisdiction: South Africa
• Author: Susan Scott
• Date: 25 May 2019
• Pages: 405-419
• Published date: 25 May 2019

The Evergreen Topic of Locus Standi and

Security Cessions: Thekweni Properties (Pty)

Ltd v Picardi Hotels Ltd and Picardi Hotels Ltd v

Thekwini Properties (Pty) Ltd

SUSAN SCOTT

University of South Africa

1 Introduction

Should Levinsohn DJP and Boruchowitz AJA stoop to read this discussion

of their respective judgments in Thekweni Properties (Pty) Ltd v Picardi

Hotels Ltd (and Others as Third Parties) (2008 (2) SA 156 (D)) and

Picardi Hotels Ltd v Thekwini Properties (Pty) Ltd (2009 (1) SA 493 (SCA)),

the former would, I hope, say that I am a clever academic, and the latter

probably: ‘well, [s]he’s a pampoen’ (cf PM Nienaber & Ellison Kahn (eds)

‘Reminiscences of Bench and Bar Mainly of the Free State’ (2002) 119 SALJ

561 at 576). More likely, however, they will not read it. In these two reported

judgments the evergreen topic of locus standi in security cessions reared its

ugly head again with, to my mind, disastrous consequences in the Supreme

Court of Appeal.

I have discussed the issue of locus standi in security cessions in numerous

publications. See ‘The Question of Locus Standi in Revolving Security

Cessions’ (1991) 54 Tydskrif vir Hedendaagse Romeins-Hollandse Reg 837;

‘Cession in Securitatem Debiti Once Again’ (1993) 56 Tydskrif vir

Hedendaagse Romeins-Hollandse Reg 478; ‘Evaluation of Security by Means

of Claims: Problems and Possible Solutions’ (1997) 60 Tydskrif vir

Hedendaagse Romeins-Hollandse Reg 179, (1997) 60 Tydskrif

vir Hedendaagse Romeins-Hollandse Reg 434; ‘Object of Cession Rand

Building Contractors v Homes for South Africa (Pty) Ltd 1999 4 SA 77 (W)’

2000 Tydskrif vir die Suid-Afrikaanse Reg 765; ‘Regsf‌igure, Regsdogmatiek,

Regsgeskiedenis, Regsvergelyking en die Bedoeling van Regsubjekte’ in: Eric

Dirix, Patrick Senaeve, Walter Pintens & Sophie Stijns (eds) Liber Amicorum:

Jacques Herbots (2002) 351; ‘Security Cession – Locus Standi – Homes for

South Africa (Pty) Ltd v Rand Building Contractors 2004 6 SA 373 (W)’

(2005) 67 Tydskrif vir Hedendaagse Romeins-Hollandse Reg 691.

The uncertainty surrounding locus standi can be directly attributed to a lack

of understanding of security cessions in general, which is quite understand-

able in the light of the complexity of the topic. Issues that cause confusion and

that have not been thoroughly investigated by the courts are the nature of

f‌iduciary acts and the legal institution in terms of which a mandatary acts in

her own name in enforcing another person’s claim (Scott Liber Amicorum op

405

(2009) 21 SA Merc LJ 405

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