Case Law[2022] ZAGPJHC 717South Africa
South African Municipal Workers Union v Imbeu Development and Project Management (PTY) Ltd and Another (30236/2021) [2022] ZAGPJHC 717 (22 September 2022)
High Court of South Africa (Gauteng Division, Johannesburg)
22 September 2022
Headnotes
Summary
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## South African Municipal Workers Union v Imbeu Development and Project Management (PTY) Ltd and Another (30236/2021) [2022] ZAGPJHC 717 (22 September 2022)
South African Municipal Workers Union v Imbeu Development and Project Management (PTY) Ltd and Another (30236/2021) [2022] ZAGPJHC 717 (22 September 2022)
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sino date 22 September 2022
REPUBLIC OF SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
(GAUTENG DIVISION,
JOHANNESBURG)
Case No: 30236/2021
REPORTABLE: NO.
OF INTEREST TO OTHER
JUDGES: NO.
REVISED.
In the matter between:
SOUTH
AFRICAN MUNICIPAL WORKERS UNION
Applicant
And
IMBEU DEVELOPMENT AND
PROJECT
MANAGEMENT
(PTY) LTD
First Respondent
ADV
NASREEN RAJAB-BUDLENDER SC
Second Respondent
JUDGMENT
Todd AJ
Introduction
1.
This is an
application to review and set aside an arbitration award issued by
the second respondent dated 21 May 2021.
2.
The applicant seeks to set aside the award in
part, specifically that part of the award made in relation to claim A
brought in the
arbitration proceedings, and that part made in
relation to the counter claim that had been brought by the applicant
(as defendant
in the arbitration proceedings).
3.
The application is brought under the provisions of
section 33(1)(a) and (b) of the Arbitration Act 42 of 1965 (
the
Act
).
4.
The applicant also seeks ancillary relief,
including the stay of an application brought by the first respondent
separately to make
the arbitration award an order of court, or to
stay the enforcement of that award pending the determination of this
application.
5.
The first respondent opposes the application. In
essence it submits that none of the grounds of complaint brought by
the applicant
bring the matter within the ambit of section 33(1)(a)
or (b) of the Act.
6.
The main issue for determination, then, is whether
the award stands to be reviewed applying the provisions of either
section 33
(1)(a) or (b) of the
Arbitration Act.
Summary
of background facts
7.
The underlying dispute has its origins in a
service level agreement entered into between the first respondent and
the applicant
on 5 September 2018. The agreement was for the
provision of project management services specifically for the purpose
of formulating
a “turnaround strategy” for the applicant.
The turnaround project was initially envisaged to encompass six
distinct
stages at a total projected cost of a little over R9
million, excluding VAT.
8.
Shortly thereafter, on 10 September 2018, the
first respondent submitted an initial invoice in the amount of
R1,050,410 in respect
of stage one of the project. The applicant made
an initial payment against this invoice on 8 October 2018 in an
amount of R250,000.
9.
On 9 January 2019 the applicant made a further
payment in an amount of R250,000. This time the payment was made, for
reasons and
in circumstances that are unclear, into the bank account
not of the first respondent but of its project manager, one Fred van
Rhyneveld.
10.
On 10 January 2019 the first respondent cancelled
the agreement on grounds of its alleged repudiation by the applicant.
The first
respondent sought payment of the balance due under its
invoice in respect of stage one of the project. It also sought
payment for
costs incurred or resources committed in respect of the
second and third stages of the project.
11.
The applicant resisted the first respondent’s
claims for payment of any further amounts, on grounds essentially
that it disputed
the validity of the agreement, contending that it
was a “simulated agreement” whose purpose was to defraud
the applicant
or “to syphon money” from the applicant for
the benefit of signatories of the agreement
12.
On 18 and 19 July 2019 the parties held a meeting
with their respective representatives in an effort to resolve the
dispute. The
parties agreed on a payment plan under which the
applicant would pay an agreed number of monthly instalments of
R67,000 to settle
the amount due in respect of stage one of the
project.
13.
On 9 September 2019 the applicant made an initial
payment to the first respondent under that agreement.
14.
The applicant made no further payments under the
payment plan, and again contested the legality of the service level
agreement and
disputed that services had been performed to justify
the invoice that had been rendered.
15.
In approximately May 2020 the parties agreed to
submit the dispute that had arisen to arbitration under the AFSA
rules. On 13 May
2020 the second respondent was appointed as
arbitrator. In pre-arbitration meetings held on 21 May 2020 and 4
June 2020 the parties
agreed to a timetable for the delivery of
pleadings. This resulted in the first respondent delivering a
statement of claim on 12
June 2020, and the applicant delivering a
statement of defence and counterclaim on 22 June 2020.
16.
In its statement of claim the first respondent
brought two separate claims. Claim A was for an amount of R738 840.00
inclusive
of VAT in respect of work performed and invoiced for stage
one of the project. Claim B was for an amount of R2,557,520 excluding
VAT in respect of damages arising from the alleged repudiation of the
agreement, encompassing work done and resources committed
for the
second and third stages of the project.
17.
In response the applicant contended that the
conclusion of the agreement had not been properly authorised by the
applicant and that
the agreement represented a simulated transaction
fraudulently entered into by representatives of the first respondent
with unauthorised
representatives of the applicant. The applicant
brought a counter claim for repayment of the amount of R561,570 that
had been paid
by it in respect of the first stage of the project, on
the grounds of unjustified enrichment.
18.
Various further pleadings were filed in
consequence of this, and at a further pre-arbitration meeting held on
2 October 2020 the
parties agreed to deliver expert reports.
19.
The arbitration proceedings took place on 16 and
17 February 2021, with oral submissions made on 15 March 2021. The
second respondent
delivered her award on 21 May 2021.
The
second respondent’s award
20.
In her award, the second respondent identified the
issues that she was required to decide as being the following:
1.
Whether the service level agreement was validly
concluded.
2.
If valid, whether [the first respondent] is
entitled to the amounts claimed under Claims A and B; and
3.
Whether [the applicant] is entitled to the amount
claimed in its counter claim for unjustified enrichment.
21.
In the proceedings in this court the parties were
in agreement that this correctly identified the issues that the
second respondent
was required to decide in the arbitration.
22.
In her award the second respondent summarised the
terms of the service level agreement and the essential contentions of
the parties
regarding its validity, including the evidence of the
witness led by each party in relation to that issue.
23.
That evidence traversed the content and minute of
the meeting held between the parties and their representatives on 18
and 19 July
2021 “when the amounts outstanding were discussed
and a payment plan was negotiated”.
24.
The second respondent found the minutes of that
meeting to show that the applicant had, at that stage, despite the
existing contention
that the terms of the contract were irregular,
negotiated the terms of the payment plan under which the applicant
would pay R67,000
per month until the amount due in respect of stage
one had been paid. The applicant refused, however, to pay for any
part of the
work ostensibly performed in respect of stages two and
three, which formed the subject matter of Claim B in the arbitration.
25.
The second respondent also referred to
confirmation of that payment plan reflected in an email sent on
behalf of the applicant to
the first respondent’s attorneys on
6 December 2019. She dealt with this in the following passages in her
award:
“
30.
The fact that [the applicant] continued to accept that it owed [the
first respondent] payment for invoices rendered
long after it was
concerned that the contract was irregular, is further clear from the
email from Ms Kekane to [first respondent’s]
attorney as late
as 6 December 2019 – in which she accepted that [applicant]
owed [first respondent] R431,000 which she stated
that it would pay
in instalments over 7 months – and that it had already paid
[first respondent] R569,000. The dispute at
this point according to
Ms Kekane’s email, appeared to concern only whether [applicant]
owed [first respondent] for payment
of the second and third stages
–
where no work was done.”
31. It is only later
that [applicant] adopted the approach that the invalidity of the SLA
precluded [first respondent]
from being compensated for work done
under the SLA.
32. Ms Kekane also
testified that there was no proof that any work was done in respect
of any of the stages. She
requested this documentation several times
and was not provided with any of the necessary reports of work done.
Despite this, she
negotiated a payment plan as described above with
[first respondent], and [applicant] made a payment of R61, 570.”
26.
The second respondent went on to consider the
implications of the Turquand Rule and the doctrine of ostensible
authority, and ultimately
concluded that the service level agreement
had been validly concluded.
27.
This disposed of the first issue that she was
required to decide.
28.
The second respondent then continued by concluding
that the agreement or payment plan reflected in the July 2019
minutes, referred
to above, and recorded in subsequent emails between
the parties, was binding on the parties. She therefore resolved the
second
issue that she was required to decide, insofar as it concerned
Claim A, on the basis that the first respondent was entitled to an
order for payment of the amount agreed by the applicant in July 2019,
as reflected in the minutes of those meetings.
29.
Her reasoning in this regard was essentially as
follows:
“
48.
In the present matter, absent [applicant’s] agreement of July
2019 that it was obliged to pay [first respondent]
for the amounts
outstanding under the contract, an argument may validly have been
made that [first respondent
[1]
]
failed to provide sufficient services to justify payment under the
contract. [Applicant’s] conduct in negotiating a payment
agreement with [first respondent] notwithstanding its knowledge of
other irregular conduct on the part of its office bearers and
the
possibility that the present contract was concluded in the absence of
CEC approval, precludes it from now claiming that the
SLA was
fraudulent.”
30.
The second respondent went on to make an award in
respect of Claim A in the outstanding amount due under the payment
plan agreed
in July 2019, being an amount of R677,270. She dismissed
Claim B in its entirety. This was how she disposed of the second
issue
that she was required to decide.
31.
As regards the counterclaim, for repayment of the
amounts already paid by the applicant, the second respondent
concluded that in
light of her finding that the applicant had
accepted an obligation to pay the first respondent the amount found
to be due under
Claim A, it followed that no counterclaim could lie
for unjustified enrichment in respect of the amounts claimed. She
dismissed
the counterclaim, so deciding the third issue in the
proceedings.
Summary
of applicable legal principles
32.
Section 33(1)(a) of the Act provides for the
review and setting aside of an award where the arbitrator has
misconducted herself
in relation to her duties as arbitrator.
33.
Section 33(1)(b) of the Act provides for an award
to be reviewed and set aside where an arbitrator has committed any
gross irregularity
in the conduct of the arbitration proceedings or
has exceeded her powers.
34.
In
Lufuno Mphaphuli and
Associates (Pty) Ltd v Andrews and another
[2]
the Constitutional Court considered whether the
relatively narrow grounds of review provided for in
section 33(1)
of
the
Arbitration Act were
consistent with the constitution. It
concluded that they were:
“
[235] To return then to the
question of the proper interpretation of
section 33(1)
of the
Arbitration Act in
the light of the Constitution. Given the approach
not only in the United Kingdom (an open and democratic society within
the contemplation
of section 39(2) of our Constitution), but also the
international law approach as evinced in the New York Convention (to
which
South Africa is a party) and the UNCITRAL Model Law, it seems
to me that the values of our Constitution will not necessarily best
be served by interpreting section 33(1) in a manner that enhances the
power of courts to set aside private arbitration awards.
Indeed, the
contrary seems to be the case. The international and comparative law
considered in this judgment suggests that courts
should be careful
not to undermine the achievement of the goals of private arbitration
by enlarging their powers of scrutiny imprudently.
Section 33(1)
provides three grounds for setting aside an arbitration award:
misconduct by an arbitrator; gross irregularity in
the conduct of the
proceedings; and the fact that an award has been improperly obtained.
In my view, and in the light of the reasoning
in the previous
paragraphs, the Constitution would require a court to construe these
grounds reasonably strictly in relation to
private arbitration.”
35.
In
Telcordia
Technologies Inc. v Telkom SA Ltd
[3]
the SCA emphasized that errors of law, like errors
of fact, do not render an arbitrator’s award liable to be set
aside on
review:
“
[85] The fact that the
arbitrator may have either misinterpreted the agreement, failed to
apply South African law correctly,
or had regard to inadmissible
evidence does not mean that he misconceived the nature of the inquiry
or his duties in connection
therewith. It only means that he erred in
the performance of his duties. An arbitrator ‘has the right to
be wrong’
on the merits of the case, and it is a perversion of
language and logic to label mistakes of this kind as a misconception
of the
nature of the inquiry – they may be misconceptions about
meaning, law or the admissibility of evidence but that is a far cry
from saying that they constitute a misconception of the nature of the
inquiry. To adapt the quoted words of Hoexter JA: It cannot
be said
that the wrong interpretation of the Integrated Agreement prevented
the arbitrator from fulfilling his agreed function
or from
considering the matter left to him for decision. On the contrary, in
interpreting the Integrated Agreement the arbitrator
was actually
fulfilling the function assigned to him by the parties, and it
follows that the wrong interpretation of the Integrated
Agreement
could not afford any ground for review by a court.
[86] Likewise, it is a
fallacy to label a wrong interpretation of a contract, a wrong
perception or application of South
African law, or an incorrect
reliance on inadmissible evidence by the arbitrator as a
transgression of the limits of his power.
The power given to the
arbitrator was to interpret the agreement, rightly or wrongly; to
determine the applicable law, rightly
or wrongly; and to determine
what evidence was admissible, rightly or wrongly. Errors of the kind
mentioned have nothing to do
with him exceeding his powers; they are
errors committed within the scope of his mandate. To illustrate, an
arbitrator in a ‘normal’
local arbitration has to apply
South African law but if he errs in his understanding or application
of local law the parties have
to live with it. If such an error
amounted to a transgression of his powers it would mean that all
errors of law are reviewable,
which is absurd.” (footnotes
excluded)
36.
The scope of an arbitrator’s powers are
determined by the issues that the parties have agreed to submit to
her, in what are
usually described as the arbitrator’s terms of
reference. An arbitrator who exceeds the scope of what has been
submitted
to her exceeds her powers and her award is susceptible to
review under the provisions of
section 33(1)(b)
of the
Arbitration
Act. In
Telcordia
(supra)
the SCA referred with approval to the decision of the UK House of
Lords in
Lesotho Highlands Development
Authority v Impregilo SpA
[4]
:
“
[52] The term ‘exceeding
its powers’ requires little by way of elucidation and this
statement by Lord Steyn says
it all:[5]
‘
But the
issue was whether the tribunal “exceeded its powers”
within the meaning of
section 68(2)(b)
[of the English Act]. This
required the courts below to address the question whether the
tribunal purported to exercise a power
which it did not have or
whether it erroneously exercised a power that it did have
.
If it is merely a case of erroneous exercise of power vesting in the
tribunal no excess of power under section 68(2)(b) is involved.
Once the matter is approached correctly, it is
clear that at the highest in the present case, on the currency point,
there was no
more than an erroneous exercise of the power available
under section 48(4). The jurisdictional challenge must therefore
fail.’”
37.
And in
Palabora Copper
(Pty) Ltd v Motlokwa Transport and Construction (Pty) Ltd
[6]
the SCA summarized the ambit of section 33(1)(b)
as follows:
“
[8] This
provision was the subject of detailed consideration by this Court
in
Telcordia
.
It suffices to say that where an arbitrator for some reason
misconceives the nature of the enquiry in the arbitration proceedings
with the result that a party is denied a fair hearing or a fair trial
of the issues that constitutes a gross irregularity. The
party
alleging the gross irregularity must establish it. Where an
arbitrator engages in the correct enquiry, but errs either on
the
facts or the law, that is not an irregularity and is not a basis for
setting aside an award. If parties choose arbitration,
courts
endeavour to uphold their choice and do not lightly disturb it. The
attack on the award must be measured against these
standards
.”
(footnotes omitted)
38.
Restating these legal principles is, of course,
more straightforward than applying them to the facts in any
particular case. I turn
now to consider the parties’ respective
submission in the present matter.
The
parties’ submissions
39.
Mr Ndou, who appeared for the applicant, submitted
in the first instance that the second respondent’s treatment of
the matter
amounted to a gross irregularity of the kind contemplated
by s33(1)(a) of the Act. He submitted that a mistake that prevented
the
aggrieved party from having its case fully and fairly determined
constituted a gross irregularity, and that ultimately the crucial
question is whether a mistake perpetrated by the arbitrator prevented
a fair trial of the issues[7].
40.
Mr Ndou accepted that where an arbitrator engages
in the correct inquiry but errs either on the facts or the law, that
is not an
irregularity and is not a basis for setting aside an award.
41.
He submitted, however, that an arbitration award
may be set aside if the arbitrator has determined matters that have
not been pleaded
or agreed upon. In this regard he referred to
Hos+Med Medical Aid Scheme v Thebe ya Pelo
Healthcare
[8]
,
where the SCA stated the following:
“
[30] In my
view it is clear that the only source of an arbitrator’s power
is the arbitration agreement between the parties
and an arbitrator
cannot stray beyond their submission where the parties have expressly
defined and limited the issues, as the
parties have done in this
case, to the matters pleaded. Thus, the arbitrator, therefore also
the appeal tribunal, had no jurisdiction
to decide a matter not
pleaded.”
42.
Referring to
Total
Support Management (Pty) Ltd v Diversified Health Systems (South
Africa) (Pty) Ltd
[9]
Mr
Ndou submitted that while even a “gross or manifest mistake”
does not constitute misconduct, it may constitute evidence
of
misconduct which may in turn justify an inference of “wrongful
and improper conduct”.
43.
Applying these authorities, Nr Ndou focused his
submissions on the contention that the second respondent had, in the
first instance,
failed to determine the quantum of Claim A by
reference to the case as pleaded by the parties, and had failed to
resolve the dispute
over the quantum of that claim by reference to
the expert evidence introduced by the parties. Instead, the second
respondent had
relied on an acknowledgement of indebtedness by
representatives of the applicant in a meeting held during July 2019,
in respect
of which a minute had been introduced and oral evidence
led.
44.
By deciding the quantum of Claim A in this way, Mr
Ndou submitted, the second respondent failed to determine the real
issue that
had been submitted to her, which was the quantification of
the claim as determined by the evidence of experts introduced by each
side and narrowed in an agreed joint minute.
45.
In further support of this submission Mr Ndou
relied on the decisions in
Future Rustic
Construction (Pty) Ltd v Spillers Waterfront (Pty) Ltd,
[10]
in which the court set aside an award and remitted the matter to the
arbitrator after he had failed to determine separate amounts
awarded
in respect of each of a number of separate claims; in
Hos+Med
[11]
,
in which the court set aside the decision of an arbitration appeal
panel on grounds that they had determined the matter on the
basis of
an issue not submitted to them; and in
Rand
Water v Zuikerbosch Biocal Products CC and Taroline (Pty) Ltd Joint
Venture
[12]
,
in
which the court similarly held that the arbitrator had no
jurisdiction to decide an aspect of the matter before him that had
not been pleaded.
46.
The second main focus of Mr Ndou’s attack on
the award concerned the manner in which the second respondent dealt
with the
applicant’s counterclaim. He submitted that by
resolving the counterclaim in the manner which she did the second
respondent
simply failed to deal properly or at all with an issue
that fell squarely within her terms of reference.
47.
Mr Sibuyi, who appeared for the first respondent,
referred to the cautionary admonition in
Lufuno
Mphaphuli
in the extract referred to above,
at paragraph [235] of that judgment.
48.
He submitted that compelling reasons were required
to interfere with an arbitration award in terms of
section 33
of the
Arbitration Act, and
he referred to the recent trend of decided cases
on this topic which supported his argument that deference should be
shown to an
arbitration award properly made.
49.
Mr Sibuyi submitted that the applicant had adopted
a broad scattergun approach in seeking to challenge the award for a
wide range
of reasons that ultimately simply expressed
dissatisfaction or disagreement with the reasoning and outcome of the
award. None of
these contentions, he submitted, fell within the ambit
of an attack under section 33 of the Act.
50.
Mr Sibuyi pointed out that the larger of the first
respondent’s claims in the arbitration, Claim B, had been
dismissed by
the second respondent, and submitted that there were no
grounds to contend that the arbitrator had not independently assessed
each
parties’ arguments and applied her mind to the appropriate
determination of the issues that had been referred to her.
51.
Telcordia,
Mr Sibuyi
submitted, establishes that a litigant cannot complain about the
outcome or results of the arbitration. He submitted that
in the
present matter the Applicant had no genuine grievance about the
arbitration process or method, but was clearly simply aggrieved
by
the outcome.
52.
Mr Sibuyi submitted that the decisions in
Palabora
,
Hos+med
,
Rand
Water
and
Future
Rustic Construction
could all be
distinguished on their facts - different issues had arisen in those
cases.
Evaluation
53.
I have carefully considered the grounds on which
the applicant seeks to attack the award, and the authorities referred
to by Mr
Ndou.
54.
It is indeed so that the second respondent
determined the matter on a basis that was not contended for or dealt
with by the parties
in their pleadings. The award might reasonably be
criticized on grounds that it resolved Claim A, and consequently the
counterclaim,
by way of a short cut. The arbitrator concluded in
effect that the applicant had previously acknowledged and accepted
liability
in a certain amount in respect of Claim A, and made an
award in that amount. Having done so it followed, in her view, that
the
applicant could not succeed with its counterclaim for unjustified
enrichment in respect of amounts for which it had accepted liability.
55.
The fact that the arbitrator’s reasoning was
different to the case pleaded by the first respondent in the
arbitration does
not, however, by itself take the matter outside the
ambit of the arbitrator’s terms of reference.
56.
In
Hos+Med
the
arbitration agreement had expressly restricted the arbitrator’s
terms of reference to what was contained in the pleadings.
This fact
was at the heart of the decision in that matter. The same was not the
case here.
57.
Although the court in
Rand
Water
referred to
Hos+Med
before concluding that the arbitrator in that
matter had no jurisdiction to decide something not pleaded, and as a
result set aside
part of the award in that matter, the reason for
this in
Rand Water
was
that the arbitrator had made an award for payment of certain costs
incurred for the removal of sludge in respect of a period
for which
no claim had been made in the proceedings at all.
58.
In
Future Rustic
Construction
the arbitrator had made a
composite award in respect of multiple separate claims without
determining amounts payable in respect
of the different claims, and
the matter was remitted to the arbitrator for reconsideration and a
requirement that the arbitrator
furnish the separate amounts awarded
in respect of each claim.
59.
In my view each of these situations is
distinguishable from the facts in the present matter. None of these
matters establishes a
general principle that an arbitrator exceeds
her powers if she determines an issue that has been placed before her
on a basis different
from that contended for by the parties. There is
no evidence before me that the terms of reference or any agreement by
the parties
expressly curtailed the second respondent’s powers
by reference to the contentions raised in the pleadings. Although the
second respondent decided the matter on a different basis from that
contended for by the first respondent, she determined and made
an
award in respect of each of the two Claims that had been submitted to
her, and also decided the counterclaim.
60.
As indicated, there was no express limitation on
the second respondent’s powers that restricted her to
determining the claims
on the basis contended for by the parties in
their respective pleadings. Having regard to the terms of the
arbitration clause in
the agreement between the parties, and the
timing and content of the pleadings, which were fairly rudimentary
and were delivered
after an initial pre-arbitration meeting had been
held regarding the conduct of the proceedings, it seems to me that
these were
pleadings intended to assist the arbitrator rather than to
define her powers. That means that even if the second respondent
erred,
by misunderstanding the pleadings or by deciding the matter on
a basis that neither party had thought of, this did not take her
outside the ambit of the powers entrusted to her.
61.
In summary, in my view, the arbitrator’s
powers were not constrained in a manner that restricted her to
deciding the matters
referred to her on a basis pleaded by either
party. The second respondent was called upon to determine whether the
agreement was
validly concluded, whether amounts claimed under Claim
A and Claim B were due and payable, and whether the amount claimed in
the
counterclaim was payable. She did those things. She did so on the
basis of evidence introduced at the arbitration. If her decision
was
incorrect, or wrongly explained, or a result of an error of law, or
based on reasoning different from what was contended by
either party
in their pleadings, that did not take her outside the ambit of what
she was appointed to do.
62.
As regards the counterclaim, the approach of the
arbitrator was that having concluded that the relevant agreement had
been validly
concluded (a conclusion not challenged in these review
proceedings), and that an amount was indeed due and payable under it
in
respect of Claim A, over and above the amount that had already
been paid (which was the subject of the counterclaim) it necessarily
followed that the counterclaim should fail.
63.
Even if that decision was not correct it was a
decision reached, rightly or wrongly, on a matter that had been
referred to her.
This is quite different, it seems to me, from the
position in
Palabora
where,
in respect of the counterclaim in that matter, the court concluded
that the effect of certain rulings of the arbitrator effectively
prevented the party raising the counterclaim from pursing its claim
and so prevented a fair trial of that issue.
64.
I am satisfied, in short, that the complaints
advanced by Mr Ndou are complaints about how the arbitrator reasoned
her conclusion
and reached her decision within the ambit of powers
that were indeed entrusted to her, and that they do not establish
that she
strayed outside the powers entrusted to her. Put
differently, the complaints raised concern the process of reasoning
adopted by
the arbitrator in determining matters that were within her
powers to decide.
65.
To the extent that the second respondent erred,
this constituted the mistaken exercise of a power conferred on her
(adopting the
words of the House of Lords in
Lesotho
Highlands Development Authority
supra).
The
conclusions that the applicant attacks, whether rightly or wrongly
reached by the second respondent, were conclusions reached
within the
exercise of the powers and functions entrusted to her.
66.
In those circumstances, the application stands to
be dismissed.
67.
Although the both parties had initially sought
punitive costs, both agreed that there were no grounds for persisting
with an order
to that effect. Both submitted, however, that costs
should follow the result. I agree.
Order
68.
In the circumstances I make the following order:
The
application is dismissed, with costs.
C Todd
Acting Judge of the
High Court of South Africa
REFERENCES
For
the Applicant:
Mr P Ndou.
Instructed
by:
Ndou Attorneys
For
the First Respondent:
Mr D Sibuyi
Instructed
by:
DMS Attorneys
For
the Second Respondent:
Adv. T Mhlanga
Instructed
by:
Harris Nupen Molebatsi
Hearing
date:
06 September 2022
Judgment
delivered:
22 September 2022
[1]
erroneously
referred
to in the award as applicant
[2]
2
009
(6) BCLR 527 (CC)
[3]
2007
(3) SA 266 (SCA)
[4]
[
2005]
UKHL 43
paragraph 24
[5]
[footnote included as in the extract cited] “
Lesotho
Highlands Development Authority v Impregilo SpA
[2005]
UKHL 43
para 24. Emphasis added. Cf
Bull
HN Information Systems Inc v Hutson
229
F 3d (1st Cir 2000) 321 at 330: ‘To determine whether an
arbitrator has exceeded his authority . . . courts “do
not sit
to hear claims of factual or legal error . . .” . . .
and “[e]ven where such error is painfully clear,
courts are
not authorized to reconsider the merits of arbitration awards”
. . .’”
## [6]2018
(5) SA 462 (SCA)
[6]
2018
(5) SA 462 (SCA)
[7]
as
contemplated in
Goldfields
Investments Limited v City Council of Johannesburg
1938
TPD 551
, referred to in
Telcordia
at
paragraph [73]
[8]
2008
(2) SA 608 (SCA)
[9]
[2002] ZASCA 14
;
2002 (4) SA 661
(SCA) at paragraph
[21]
[10]
2011
(5) SA 506 (KZD)
[11]
supra
[12]
[2018]
ZA GPPHC 679, see paragraphs [19] and [20]
sino noindex
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