Court Finds In Favour Of La Group Ltd For Security
Court Finds In Favour Of La Group Ltd For Security Of Costs And Exception Claim
LA Group Ltd ("LA Group" or "the company")
ISIN: ZAE0000028676
Share code: LAR / LAN
Reg. no. 1936/008786/06
LA Group wishes to announce that the High Court ruled in favour of the company
this week, ordering Platinum Holdings ("Platinum") to provide security to LA
Group, as well as to pay its legal costs arising from the security application.
The High Court also ruled in the company`s favour on complaints raised by it in
an exception claim. The Hon Mr Justice Cleaver gave judgment dealing with
certain aspects of the dispute between LA Group and Platinum on Monday, December
2.
LA Group regard this as a significant victory in the protracted litigation
between the company and Platinum.
The Court`s decision follows after LA Group brought an application against
Platinum to furnish security for the legal costs incurred by the company in the
event that Platinum was unsuccessful in its damages claim. LA Group applied for
the security application on the grounds that Platinum`s financial position was
weak and that it was poorly administered. In its application LA Group said it
feared that if Platinum was unsuccessful in its damages claim, and a costs award
made in favour of LA Group, Platinum would be unable to pay such costs.
The company also took "exception" to Platinum`s damages claim. LA Group
complained that Platinum`s attempts to justify its damages were simply
inadequate - and that it was therefore impossible for LA Group to deliver a
plea. The Court once again found in favour of the company, and the Hon Mr.
Justice Cleaver struck out those portions of Platinum`s claim that had dealt
with the quantification of its alleged damages.
LA Group also objected that Platinum`s attempts to claim damages from LA Jean
Company (Pty) Ltd ("LA Jean") was unfounded. LA Jean is a subsidiary company of
LA Group and was cited as second defendant by Platinum in its damages claim. The
Court upheld the company`s complaint in this regard. The Hon Mr. Justice Cleaver
dismissed Platinum`s claim against LA Jean and Platinum was ordered to pay LA
Group`s costs in this regard as well. Platinum may therefore no longer pursue
any claim against LA Jean.
Cape Town
4 December 2002
For further information, contact: Showkat Mukadam, 083 261-6745
The LA Group
(021) 683-1786
Issued by: Nicola Nel, 082 459 2288
Atmosphere PR
(021) 461-2117
Date: 05/12/2002 09:30:18 AM Produced by the JSE SENS Department
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