While working through question 12 on page 345 of the tutorial pack, I was asked why, given the notes on page 55 of the course notes, was the answer to the question "B" and not "C"? The relevant portion of the notes states as follows:
"Where the defendant is a foreign peregrinus, the arrest of the foreign peregrinus or the attachment of the foreigner’s property is essential. Where the plaintiff is an incola of the court’s area of jurisdiction, the existence or absence of a ratio jurisdictionis is irrelevant and there must be an arrest or attachment to either found jurisdiction (where no ratio jurisdictionis happens to exist) or to confirm jurisdiction (where a ratio jurisdictionis happens to exist). It can be seen that in an action against a foreign peregrinus, an incola is accorded a favourable position in that the incola is entitled to institute action against the foreigner in the incola’s court regardless of the presence or absence of a ratio jurisdictionis. The attachment alone will create jurisdiction. The reason for this is based on the public policy consideration that South African courts should come to the assistance of South African subjects." (emphasis added)
The relevant provision of the Supreme Court Act is section 19 which is a little too long to reproduce here. Of particular interest is section 19(1)(c)(i) which empowers a High Court to –
"issue an order for attachment of property or arrest of a person to confirm jurisdiction or order the arrest suspectus de fuga also where the property or person concerned is outside its area of jurisdiction but within the Republic: Provided the cause of action arose within its area of jurisdiction …" (emphasis added)
Section 19(1)(c)(ii) goes on to provide that a High Court may –
"where a the plaintiff is resident or domiciled within its area of jurisdiction, but the cause of action arose outside its area of jurisdiction and the property or person concerned is outside its area of jurisdiction, issue and order for attachment of property or arrest of a person to found jurisdiction regardless of where in the Republic the property or person is situated." (emphasis added)
The commentary to section 19 in Erasmus’ Superior Court Practice is most instructive and runs from page A1-21 to page A1-38. As a starting point, I see that the case of Joseph v Air Tanzania Corporation 1997 (3) SA 34 at 38G to 39C is actually authority for the proposition that an external or foreign company, although required by section 322 of the Companies Act 61 of 1973 (as read with section 170(1)(b)) to have a registered office in South Africa, cannot be said to be resident at its registered office in terms of those provisions of the Companies Act. This would seem to fly in the face of the notes dealing with this issue at section 4.3 on page 41. So what now? Well, the first leg of the enquiry is to determine "whether there is a ground upon which the court can entertain the matter in issue" (page A1-27). These jurisdictional connecting factors or rationes jurisdictionis include the conclusion or performance of a contract. In this example the jurisdictional connecting factor would be the conclusion of the contract between the parties in Cape Town. Unfortunately this is not enough given that the defendant is a foreign peregrinus so an attachment becomes necessary in this example (page A1-29). The commentary has the following to say at the bottom of page A1-29:
"Where the plaintiff (or applicant) is an incola and the defendant (or respondent) is a foreign peregrinus (i e a peregrinus of the country as a whole) the arrest of the defendant or attachment of his or her property is essential. The corollary of this rule is that the arrest of a peregrinus or the attachment of his or her property at the suit of an incola establishes jurisdiction even if no other ground to exercise jurisdiction exists."
In order to attach the property of this foreign defendant, it is necessary to make an application to the High Court and a further clue as to the correct answer to the question can be found in the allegations which must be made in such an application. The first allegation that must be made is that there is a prima facie cause of action against the defendant. This links back to the requirement that there be a ratio jurisdictionis. The next allegation is that the defendant is a foreign peregrinus. Finally, the plaintiff must, in the alternative to an allegation that the defendant or his or her property is within the jurisdiction of the court hearing the application, show one of the following:
"where attachment ad confirmandam jurisdictionem is sought, that the defendant or the property concerned is outside the area of jurisdiction of the court but within the Republic and that the cause of action arose within the area of jurisdiction of the court" (refer to section 19(1)(c)(i), emphasis added)
or
"where attachment ad fundandam jurisdictionem is sought, that the defendant or the property concerned is outside the area of jurisdiction of the court but within the Republic and that although the cause of action arose outside the area of jurisdiction of the court, the plaintiff (applicant) is resident or domiciled within its area of jurisdiction" (refer to section 19(1)(c)(ii), emphasis added).
What is also interesting is that although such attachments are exceptional remedies, once the plaintiff or applicant has satisfied all the requirements for an attachment, the court has no discretion to refuse the application. See also the commentary on pages A1-37 and A1-38. Having regard to the aforegoing, it would seem that the correct answers are "A" and "B"! The notes are not entirely correct as it appears clear from the commentary quoted above that a ratio jurisdictionis is a necessary starting point. The difference in approach depends more on where the cause of action is, the plaintiff is domiciled/resident and where the defendant or his or her property is.
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