Theatre Investments (Pty) Ltd v Butcher Brothers Ltd 1978 (3) SA 682 (A)

Theatre Investments (Pty) Ltd v Butcher Brothers Ltd 1978 (3) SA 682 (A)

Facts

Theatre Investments (Pty) Ltd (Theatre Investments) leased land from Butcher Brothers Ltd (Butcher Brothers) for a period of 50 years. The lease agreement contained a clause that stated that all buildings and improvements erected on the land would become the property of Butcher Brothers at the end of the lease period.

Theatre Investments built a cinema on the land, and the cinema was equipped with a number of items of equipment, including a cinema screen, a projector, and a sound system.

At the end of the 50-year lease period, Butcher Brothers took possession of the land and the cinema. Theatre Investments claimed ownership of the cinema equipment, but Butcher Brothers argued that the cinema equipment had become their property through accession.

Issue

The main issue in the case was whether the cinema equipment had become the property of Butcher Brothers through accession.

Reasons

The Appellate Division of the Supreme Court of South Africa held that the cinema equipment had not become the property of Butcher Brothers through accession. The court found that the cinema equipment had been attached to the cinema building in a temporary manner, and that the parties had not intended for the cinema equipment to become part of the cinema building.

The court held that for accession to occur, the movable thing must be attached to the immovable thing in a permanent manner. The court found that the cinema equipment had not been attached to the cinema building in a permanent manner, because it could be easily removed without damaging the building.

The court also held that the intention of the parties is relevant to the question of accession. The court found that the parties did not intend for the cinema equipment to become part of the cinema building. The parties had agreed that Theatre Investments would be entitled to remove the cinema equipment at the end of the lease period.

Conclusion

The court held that the cinema equipment was still the property of Theatre Investments, and that Theatre Investments was entitled to remove it from the cinema.

Summary

The case of Theatre Investments (Pty) Ltd v Butcher Brothers Ltd 1978 (3) SA 682 (A) is a landmark case in South African law. The case is particularly important for its analysis of the following issues:

• The concept of accession;
• The factors that determine whether accession has occurred; and
• The relevance of the intention of the parties to the question of accession.

Concept of accession

Accession is a legal principle that states that a movable thing that is attached to an immovable thing becomes part of the immovable thing.

Factors that determine whether accession has occurred

The factors that determine whether accession has occurred include:

• The nature of the movable thing;
• The manner in which the movable thing is attached to the immovable thing; and
• The intention of the parties.

Relevance of the intention of the parties to the question of accession

The intention of the parties is relevant to the question of accession. If the parties intended for the movable thing to become part of the immovable thing, then accession is more likely to occur.

Impact of the Case

The case of Theatre Investments (Pty) Ltd v Butcher Brothers Ltd 1978 (3) SA 682 (A) has had a significant impact on the law of accession in South Africa. The case has clarified the concept of accession and the factors that determine whether accession has occurred. The case has also established that the intention of the parties is relevant to the question of accession.