Practical four

2567372
Sthandiwe Ndlovu
4.1

Section 28(1)(a) of the Magistrate Courts Act grants jurisdiction over "any person who resides, carries on
business, or is employed within the district or regional district" with respect to territory. On the other
hand, proceedings before district courts range in value from R0 to R200 000, while those before regional
magistrate courts range from R200 000 to R400 000. Since R419 000 is at issue in this case, it is both
above and beyond the Regional Magistrate Court's jurisdiction.

4.2

Gauteng local division, Johannesburg High Court: The plumbing services performed at the Big Buildings
Johannesburg office by Pipe Dream Plumber CC gave rise to the cause of action in Johannesburg.

4.3

Pipe Dream Plumber CC would find the Regional Magistrate Court in Randburg to be more convenient
due to its proximity to Pipe Dream's registered office in Randburd. Additionally, compared to High Court,
the Regional Magistrate Court's legal procedure is simpler and faster. The High Court must be the next in
line of convenience because it has no maximum or lower limit, even though the Regional Court cannot
handle the amount in question in this case.

4.4

For an action to be filed at the Regional Magistrate Court, the sum in question must be between R200 000
and R400 000. The Regional Magistrate Court, a court with territorial jurisdiction, would have handled
this case if the disputed amount had not been R419 000.

4.5

o We are aware that the Regional Magistrate Court can handle disputes worth between R200 000 and
R400 000.

o Big Buildings owes Pipe Dream Plumber CC R419 000 at the beginning.

o Pipe Dream Plumber CC's additional contract owing Big Buildings R21 000.

o The R21 000 must be deducted from the R419 000, giving us an equivalent of R398 000.

o As a result, Pipe Dream may now file a lawsuit in Regional Magistrate Court against Big Buildings
because the sum at issue has decreased to less than R400 000 following the deduction.

o They are claiming R398 000 from Big Buildings (Pty) Ltd.