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The appeal is dismissed with costs. The premises were let to the first respondent, Mr C B Watson Watsonwho conducted a print finishing business from the premises under the name and style of Canterbury Coaters.
Renasa, however, repudiated the claims with the result that Watson and Flashcor instituted action against Renasa in the Western Cape High Court, Cape Town, for payment of the amounts claimed under the insurance policy.
The trial then proceeded before Savage AJ. After hearing evidence the Case analysis watson company judge held in favour of Watson and Flashcor, declaring Renasa to be liable for such loss as they may prove they have suffered as a consequence of the damage caused by the fire.
Renasa now appeals, with the leave of the court a quo, against the whole of this order. These are clauses 8 and 5, respectively. Fraud If any claim under this policy is in any respect fraudulent or if any fraudulent means or devices are used by the insured or anyone acting on their behalf or with their knowledge or consent to obtain any benefit under this policy or if any event is occasioned by the wilful act or with the connivance of the insured, the benefit afforded under this policy in respect of any such claims shall be forfeited.
Prevention of Loss The insured shall take all reasonable steps and precautions to prevent accidents or losses. Therefore, Renasa as the insurer bore the onus of establishing its right to repudiate their claims for the reasons pleaded by it. Renasa contends that, in so finding, the trial judge misdirected herself in material respects.
Watson, who resided on a farm in the Piketberg district, kilometres from the premises, left his residence in the early hours of the morning of 10 January The reason for his early departure was to ensure that he would be at the premises when the workforce arrived for the new work year after the end of year holidays.
It was established by means of a tracking device in the vehicle driven by Watson that he had arrived at the premises at 06h He had a set of keys which allowed him entry to the premises. He says that he experienced some difficulty in unlocking and opening the outer perimeter gate whereafter he found the main door to the premises unlocked.
Upon entering he immediately smelt petrol and when he entered the factory area of the premises, there was a strong odour of petrol everywhere. He was met by a carefully constructed arson scene with a number of plastic drums filled with petrol strategically suspended from the cable trays above the printing and other machines in the factory area.
Mr Leon Niemand, a specialist fire investigator who testified on behalf of Renasa, described the modus operandi employed as one where the tops and doors of the machines were left open and the hanging drums were positioned more or less horizontally by stringing them together with fishing gut fed through holes drilled in the bottom of the drums.
This prevented the fuel in the drums from spilling, but once the gut would part the drums would swing into a vertical position and spill the fuel onto the fire thereby destroying or damaging the printing and other valuable machines.
On closer examination he found a fuel-drenched cloth in the boot of the car. I should add that this sports car was less than a year old and was clearly a prized possession of his. He established that the electricity supply to the machines had been cut by switching off the electrical circuit breakers.
He then decided to alert the police and found their emergency number in the telephone directory. His telephone records confirm that he phoned the emergency number at 06h32 and members of the Elsies River Police Station were despatched to the scene.
Watson went outside to await the police who arrived at the premises at 06h Constables Sampson and Petersen were the police members who attended the scene after they had received notice of the complaint at 06h They entered the premises with Watson and surveyed the well-constructed arson scene in the factory.Renasa Insurance Company Limited v Watson and Another (32/)  ZASCA 13 (11 March ).
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