THE SUPREME COURT OF APPEAL
REPUBLIC OF SOUTH AFRICA
MEDIA STATEMENT – CASE HEARING IN SUPREME COURT OF APPEAL
 
 
South African Tourism v PASIS (Pty) Ltd

Supreme Court of Appeal - 102/06 Hearing date: 10 November 2006
Judgment date: 29 November 2006

Prescription – Special Plea- Plaintiff’s claim not in respect of an obligation which had to be performed more than three years before service of the summons – Special plea dismissed

Media Summary of Judgement

In a judgment today the Supreme Court of Appeal (Theron AJA, with Streicher and Brand JJA) concurring, has dismissed an appeal against a special plea of prescription.

The appellant is a state funded organisation which promotes tourism in and to South Africa. The respondent is the developer and owner of a comprehensive tourism and business information system available in both the printed and electronic media. On 31 January 2000 the parties concluded an agreement which was to endure for one year until 30 January 2001. In terms of the agreement the respondent undertook to make available to the appellant its information data base for use in promoting tourism to South Africa. Furthermore, in terms of the agreement, the appellant was obliged to have marketed and promoted the respondent’s product range, which included a website and a printed publication called Xplore.

On 27 January 2004 the respondent caused summons to be issued against the appellant out of the Pretoria High Court. In it the respondent alleges that the appellant breached the agreement by failing to market and promote its product range. The respondent further alleges that in consequence of such breach it sustained damages in the sum of R23 222 321,31. The summons was met with a special plea of prescription.

The SCA held that whatever had to be done by the appellant, had to be done before 31 January 2001. The time during which the appellant had to market and promote in terms of the agreement therefore only expired at the end of January 2001. Not having alleged that the obligation to promote and advertise entailed an obligation which had to be performed before 27 January 2001 it cannot, on the pleadings as they stand, be found that the appellant breached its obligation more than three years before the summons was served on the respondent. The appeal was dismissed, with costs.