UNINCORPORATED HOA: PRESCRIPTION ALERT
Long Beach Owners Association v Miles N.O – Trial (624/2020)  ZAECMKHC 71 (30 May 2023)
When does a debt prescribe that an owner owes to its unincorporated homeowners’ association? Section 13(1)(e) of the Prescription Act provides that the usual term for the running of prescription is interrupted if the debtor is a member of the governing body of a juristic person creditor. The association in this matter argued that it was a juristic person for purposes of this section and that its claim against an owner in the estate did not prescribe after three years. The argument failed and the judgment sounds a warning note to such unincorporated associations to address outstanding debts timeously.
PARTNERSHIP DISSOLUTION: MAY BUSINESS CARRY ON?
De Wet and Another v Gambeno and Another (434/2022)  ZAECELLC 13 (30 May 2023)
This judgment tells the story of two partners of a dissolved three-man-partnership who continued with the partnership business. Partner #3, who had commenced a different business in the meantime, thought it within his rights to instruct the previous suppliers to desist from providing supplies to the old partnership business. The usual position, in terms of the common law, is that no provision of a partnership agreement is binding after dissolution. Are there exceptions?