Case Law[2022] ZAGPJHC 970South Africa
Dohne Construction (PTY) Limited v Lane NO and Another (2943/2022) [2022] ZAGPJHC 970 (7 December 2022)
High Court of South Africa (Gauteng Division, Johannesburg)
7 December 2022
Headnotes
Summary: Opposed application – Arbitration Act 42 of 1965 – removal of arbitrator in terms of s 13(2)(a) – on the basis of perceived basis – reasonable perception of bias on the part of the arbitrator to be proven –
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Dohne Construction (PTY) Limited v Lane NO and Another (2943/2022) [2022] ZAGPJHC 970 (7 December 2022)
Dohne Construction (PTY) Limited v Lane NO and Another (2943/2022) [2022] ZAGPJHC 970 (7 December 2022)
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sino date 7 December 2022
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
JOHANNESBURG
(1)
reportable:
NO
(2)
Of interest to other judges: NO
(3)
Revised:
Signature:
CASE
NO
:
2943/2022
DATE
:
7
th
december 2022
In
the matter between:
DOHNE
CONSTRUCTION (PTY) LIMITED
Applicant
and
ADV
LANE SC
, PATRICK M M
NO
First Respondent
UNKI
MINES (PTY)
LIMITED
Second Respondent
Coram:
Adams
J
Heard
:
16 August 2022
Delivered:
07 December 2022 – This judgment was handed down
electronically by circulation to the parties' representatives by
email, by
being uploaded to
CaseLines
and by release to
SAFLII. The date and time for hand-down is deemed to be 12:00 on 07
December 2022.
Summary:
Opposed application –
Arbitration Act 42
of 1965
– removal of arbitrator in terms of
s 13(2)(a)
–
on the basis of perceived basis – reasonable perception of bias
on the part of the arbitrator to be proven
–
Whether
s 13(2)
application to set aside Arbitrator’s appointment
improper – if issue already dealt with in terms of AFSA Rules –
the relevant rule 14.4 procedure not mandatory, nor exclusive –
it is permitting of a party availing itself of the remedy
provided
for in s 13(2) – the Court is nevertheless justified in
exercising its residual jurisdiction to entertain removal
application
on good cause shown –
Applicant
failed to prove that ‘a reasonable, objective and informed
person would reasonably apprehend’ that the Arbitrator
will not
bring an impartial mind to bear on the adjudication of the case –
therefore,
application refused.
ORDER
(1)
The applicant’s application for leave
to file a supplementary affidavit is refused with costs.
(2)
The applicant’s application is
dismissed with costs, such costs to include the second respondent’s
costs consequent
upon the employment of Senior Counsel.
JUDGMENT
Adams J:
[1].
The applicant
(‘Dohne Construction’ or ‘Dohne’) and the
second respondent (‘Unki Mines’ or ‘Unki’)
are both companies registered and conducting business in the Republic
of Zimbabwe. They are embroiled in a protracted dispute in
relation
to a multimillion US Dollar construction contract, concluded between
them during 2013. The dispute is at present and has
since about 2016
been subject to arbitration before the first respondent (the
Arbitrator) – a Senior Counsel and a practising
member of the
Johannesburg Bar – who was appointed as the arbitrator by the
Arbitration Foundation of Southern Africa (‘AFSA’)
as per
the agreement between the parties and as provided for in the
construction contract between them. It is common cause between
the
parties that the AFSA Rules, as well as the
Arbitration Act, Act
42
of 1965 (‘the
Arbitration Act&rsquo
;), apply to the
arbitration.
[2].
The first case
management meeting between the Arbitrator, Dohne Construction and
Unki Mines was held on 18 April 2016 and by 13
March 2017, the
arbitration was ready for hearing. By that date the parties had
exchanged pleadings, witness statements and expert
reports, and all
interlocutory issues had been dealt with and adjudicated upon by the
Arbitrator. The arbitration had in fact been
set down for the hearing
to commence on 13 March 2017 and to run for five days to 17 March
2017. The hearing did however not proceed
on 13 March 2017. It was
postponed at the request of Dohne Construction, which was ordered by
the Arbitrator to pay the wasted
costs occasioned by the
postponement. At the subsequent case management conference on 16
August 2017, Dohne Construction was not
legally represented, as its
attorneys of record withdrew as such on the day of the said meeting.
The Arbitrator directed that the
opening statements were to be filed
by 25 August 2017 and, as agreed to between the parties, the hearing
of the arbitration was
to commence for a period of five days from 4
September 2017. However, on the aforesaid date, Dohne Construction,
who by then was
still not legally represented, yet again applied for
a postponement of the hearing, which application was granted with –
understandably so – Dohne Construction to pay the wasted costs
occasioned by the further postponement. The Arbitrator also
ordered
Dohne to put up security for costs relative to its counterclaim which
it had preferred against Unki Mines.
[3].
Fast forward
to 4 March 2021, on which date Unki Mines, in response to a demand by
Dohne Construction that they comply with two
decisions by
Adjudicators dating back to 2015, indicated that they will be
pursuing the arbitration proceedings against Dohne Construction.
Unki
thereafter, on 11 May 2021, addressed a communiqué to the
Arbitrator, enquiring about dates for the hearing. The 11
th
to 13
th
October 2021 were allocated by the Arbitrator as hearing dates and on
26 May 2021 Unki Mines delivered notice of set down of the
hearing on
those dates, in response to which, the present attorneys of record of
Dohne Construction, advised that their Counsel
was not available on
the dates allocated for the hearing. Additionally, the said attorneys
indicated that their client was concerned
that it would not be
receiving a fair trial before the Arbitrator and requested him to
recuse himself.
[4].
This, the
arbitrator was not prepared to do. And in this opposed application
Dohne Construction applies for an order setting aside
his appointment
as the arbitrator in the pending
arbitration. The Arbitrator does not oppose the application, but, by
the filing of a formal notice
of intention to abide, he has indicated
that he will abide the decision of this Court.
[5].
In issue in this application is whether
Dohne Construction has made out a case for the appointment of the
Arbitrator to be set aside
on the basis that there is a reasonable
believe that he is biased against it in favour of the Unki Mines. The
relief sought by
Dohne Construction is in terms of
s 13(2)
of the
Arbitration Act, which
provides as follows: -
‘
(2)
(a)
The court may at any time on the application
of any party to the
reference, on good cause shown, set aside the appointment of an
arbitrator or umpire or remove him from office.
(b)
For the purposes of this subsection, the expression “good
cause”, includes failure on the part of the arbitrator or
umpire to use all reasonable dispatch in entering on and proceeding
with the reference and making an award or, in a case where two
arbitrators are unable to agree, in giving notice of that fact to
the
parties or to the umpire.’
[6].
The grounds on which the relief is sought
are the following: The relationship between the Arbitrator and the
expert witness of Unki
Mines, one Ms Bridget Kelly (Ms Kelly),
and her employer, Kingsbourne (Pty) Ltd, and the fact that the
Arbitrator failed to
make disclosure of the existence of this
relationship at the time of his appointment or during the conduct of
the arbitration;
the handing down of an award without affording the
applicant an opportunity of securing legal advice; granting an
informal application
for security for costs without providing reasons
and despite having dismissed a similar application, earlier in the
same year;
being blindly led by the attorneys of Unki Mines as to the
content of the award dated 4 September 2017 and allocating hearing
dates,
and excluding the applicant’s counter-claim; and being
coy (intentionally or unintentionally) regarding notes in his
possession,
as to what these notes indicate and/or whether they
exist.
[7].
There is also a preliminary legal point
raised by Unki Mines to the effect that this Court lacks the
necessary jurisdiction to decide
the suitability of the Arbitrator to
remain appointed. The point, in sum, is that the parties are bound by
and subject to the AFSA
rules. In terms of those rules, a tribunal
was appointed by AFSA for the purpose of deciding whether the
Arbitrator should be removed
and be replaced with someone else –
the exact same issue presently before this Court. The tribunal,
during 2021, considered
the said issue and determined that there is
no reason for the Arbitrator to be removed and for his appointment to
be set aside.
That, according to the point
in
limine
by Unki Mines, spells the end of
the matter and Dohne’s application, which should be dismissed.
[8].
In that regard, it is common cause that on
26 July 2021, Dohne Construction made an application to the AFSA
Secretariat for the
termination of the Arbitrator’s appointment
under
Rule 14.4
of the AFSA rules. AFSA appointed a four-member
tribunal (or panel) to determine the challenge, who unanimously
rejected and dismissed
the challenge. In the process, identical
complaints and contentions as those advanced by Dohne Construction in
this application
were considered.
[9].
The issue to be decided relative to the
point
in limine
raised by Unki Mines is whether the arbitration agreement between the
parties, which incorporated by reference AFSA Rules 14.3
and 14.4, on
a proper construction, intended to lay down an exclusive procedure
for the removal of the arbitrator. The aforesaid
sub-rules read as
follows: -
‘
14.3
An arbitrator shall recuse himself when, due to physical, mental, or
other disability, he becomes incapable properly to perform
his
duties, and in circumstances which would require a judicial officer
to recuse himself.
14.4 The
Secretariat shall be entitled, after a written or oral hearing (as
directed by the Secretariat) of the parties
and the arbitrator, to
terminate the appointment of an arbitrator on the grounds that he has
become disqualified from acting or
continuing to act in terms of
these Rules, or his inability or refusal to act, or that he has
failed timeously and effectively
to perform any of his functions as
arbitrator.’
[10].
As
was held by the Full Court (per Rogers J) in
Hyde
Construction CC v Deuchar Family Trust and Another
[1]
,
‘in relation to the main dispute and matters truly
interlocutory to the proper adjudication of the main dispute, it will
almost always be the intention of the parties to exclude recourse to
the courts, whether they say so expressly or not. Furthermore,
where
parties have agreed to refer a question of law for decision by an
arbitrator, it will generally be inconsistent with that
agreement to
permit one of the parties to apply to court in terms of
s 20(1)
of
the
Arbitration Act to
state the same question of law for opinion by
the court’. In that regard, see
Telcordia
Technologies Inc v Telkom SA Ltd
[2]
.
However, in relation to the removal of the arbitrator, so the Full
Court held, the inference that a removal procedure provided
for in
the arbitration agreement is intended (in the absence of clear
language) to be to the exclusion of the statutory right conferred
by
s 13(2)
is less compelling.
[11].
Section 13(2)
should be considered, as was
done in
Hyde Construction
,
in the context of an argument as to whether, because parties had
agreed to include a different procedure relating to the removal
of an
arbitrator, it remained open to approach the court, under
section
13(2).
And formulated with reference to the principles of waiver, the
question is whether
rule 14.4
unequivocally manifests an intention to
oust
s 13(2)
and that such an interpretation is consistent with no
other hypothesis.
Rule 14.4
does not state that it operates to the
exclusion of
s 13(2).
It ‘entitles’ AFSA, after a written
or oral hearing of the parties and the arbitrator, to terminate the
appointment
of an arbitrator on the grounds that he has become
disqualified from acting or continuing to act in terms of the Rules,
or his
inability or refusal to act, or that he has failed timeously
and effectively to perform any of his functions as arbitrator. It
appears to me that those grounds are not as wide as those which a
court could take into consideration in an application in terms
of
s
13(2).
This, in my view, gives rise to the inference that the
rule
14.4
procedure is not mandatory, nor exclusive, but rather permitting
of a party availing itself of the remedy provided for in
s 13(2).
The
point is simply that the removal of an arbitrator is not concerned in
any direct way with the arbitral dispute and matters
truly
interlocutory to the determination of the dispute, and therefore the
natural inference that the parties intended to exclude
the court's
jurisdiction is not present.
[12].
Accordingly, I am of the view that
rule
14.4
is not inconsistent with the parallel operation of the
Arbitration Act and
that it does not serve to exclude the operation
of
s 13(2).
Even though the parties’ agreed to the AFSA Rules,
including Article 14, that particular Rule does not and cannot modify
or exclude the Court’s jurisdiction as provided for in
Section
13(2)
of the
Arbitration Act. In
any event, I am, in my view,
nevertheless justified in exercising my residual jurisdiction to
entertain the removal application
on good cause shown. In assessing
the question of good cause, I regard as an important consideration
that the matter which Dohne
Construction requires the court to
adjudicate is not the main dispute or a procedural matter truly
ancillary to the determination
of the main dispute, but a more
fundamental question as to the propriety of the Arbitrator’s
continued role as the Arbitrator.
This is a legal question going to
the fairness of the arbitration.
[13].
In the circumstances of this case,
therefore, I think the entertaining of the
s 13(2)
application is
permissible. Unki Mines’ legal point
in
limine
therefore should be dismissed.
[14].
I
now turn to the merits of the application and proceed to consider the
question of a reasonable apprehension of bias on the part
of the
Arbitrator. The applicable test in this regard is set out by the
Constitutional Court in the following passage in
President
of the RSA v South African Rugby Football Union
[3]
:
-
‘
The
question is whether a reasonable, objective and informed person would
on the correct facts reasonably apprehend that the Judge
has not
[brought] or will not bring an impartial mind to bear on the
adjudication of the case, that is a mind open to persuasion
by the
evidence and the submissions of counsel.'
[15].
In
some cases, this apprehension of bias is referred to as perceived
bias, a perception of bias or objective bias. Perceived bias
is to be
differentiated from actual bias. In
Umgeni
Water v Hollis NO and Another
[4]
,
and
in regard to a perception of bias, the Court held as follows: -
‘
In
other words, whether a reasonable, objectively informed person would,
on the facts demonstrated and relied upon by the applicant,
reasonably apprehend that the first respondent has not brought, or
will not bring, an unbiased mind to bear upon the adjudication
of the
arbitration. Put differently, that he is not likely to approach such
proceedings with a mind open to persuasion by the facts
and
submissions to be placed before him in due course.’
[16].
On the facts, Dohne Construction tells the
Court that it has a reasonable apprehension and fears that it will
not get a fair hearing
before the Arbitrator. It is of the view that
he is not able to continue with the pending arbitration impartially
or independently.
And in that regard, Dohne relies not on one
incident but rather on an accumulation of events and actions by the
Arbitrator over
a period of time which, so it avers, have given rise
to a reasonable apprehension of bias.
[17].
The first event, which, according to Dohne
Construction, gave rise to its reasonable apprehension of bias, is
the failure by the
Arbitrator to make disclosure, at the time of his
appointment and during the conduct of the arbitration, of his
‘apparent
relationship’ with Ms Kelly (who is the expert
witness of Unki Mines) and her employer, Kingsbourne (Pty) Ltd. The
very first
difficulty with Dohne’s Case on this score is that
there is a concession by it that they do not know, precisely, what
this
relationship is. This is evidenced by the manner in which the
submission was formulated in her written Heads of Argument by
Ms Humphries,
who appeared on behalf of Dohne, when she makes
reference to the ‘apparent relationship’ between the
Arbitrator and
Ms Kelly.
[18].
That being the case, it cannot possibly be
suggested that the Arbitrator ought to have disclosed the
relationship, the details of
which are unknown, because by failing to
do so, he would have been unable to be unbiased or to bring an
independent judgment to
bear on the merits of the dispute that he has
been mandated to determine.
[19].
Moreover, the thrust of the complaint
appears to be that the Arbitrator has presided – as arbitrator
– in cases where
Ms Kelly has been involved as an expert, and
further that the Arbitrator has been on brief in cases where Ms Kelly
has been retained
as an expert (and Ms Kelly is employed by
Kingsbourne). The point is however that it is a fact that the
Arbitrator and Ms Kelly
do not have a business relationship. The
Arbitrator is not and has never been employed by the same employer as
Ms Kelly and their
commercial or business interests have never
aligned. The Arbitrator also had no say in the appointment of Ms
Kelly to act as expert
for Unki Mines, who also did not ask for the
appointment of the Arbitrator. What is more is the Arbitrator
disclosed and confirmed
that he is not (and has never been) on brief
in any matter for the attorneys of record for Unki Mines and that he
does not (and
has never) acted for them or presided over a dispute in
which it was involved.
[20].
Mr Daniels SC, Counsel for Unki Mines,
submitted that the fact that the Arbitrator and Ms Kelly have worked
together, for the same
client(s) before and the fact that the
Arbitrator may have presided over disputes where Ms Kelly was
involved as an expert, cannot,
on any conceivable basis, support a
reasonable apprehension of bias. I find myself in agreement with this
submission. On what basis,
I ask rhetorically, is the quantum leap
made from the Arbitrator working with Ms Kelly to the him being
biased in favour of Unki
Mines. The point is that it is hardly
unusual for an arbitrator, who is also an advocate, to work with
different experts from time
to time (and to work with different
counsel from time to time) and thereafter be required to sit as an
arbitrator in matters where
such counsel or expert appears. This in
itself cannot possibly be a ground for any reasonable apprehension of
bias or justified
doubt on the impartiality of the Arbitrator.
[21].
The first ground on which Dohne
Construction contends for perceived bias is therefore, in my view,
bereft of any merit. Whilst a
layperson may feel uncomfortable about
such a situation, this will inevitably be a result of not being
properly informed and, once
the lay-client has been well informed (by
his or her legal representatives) that such a situation is not
unusual and not sufficient
to disturb the presumption of impartiality
in respect of a judge or an arbitrator, reasonableness would dictate
that any instinctive
apprehension of bias would then dissipate.
[22].
The Arbitrator, in my view, was correct in
considering the issue of his relationship with Ms Kelly and her
employer as irrelevant.
It can on no reasonable basis support a case
for bias on the part of the Arbitrator, who cannot be faulted for not
making the disclosure
contended for.
[23].
The second ground on which Dohne claims
bias relates to the handing down of ‘an award’ during
September 2017 without
affording it the opportunity of obtaining
legal advice. This ground can and should be considered together with
the remaining grounds
on which it is alleged by Dohne Construction
that the Arbitrator is reasonably perceived to be bias, those being:
(1) the granting
of an informal application for security for costs
without providing reasons notwithstanding having previously dismissed
such an
application earlier in the same year; (2) allegedly ‘blindly
being’ led by Unki Mines’ attorneys of record as
to the
content of the award of 4 September 2017 and allocating hearing
dates, excluding the Dohne’s counterclaim; and (3)
being coy,
whether intentionally or unintentionally, regarding the existence of
notes or records in his possession as to what they
indicate and/or
whether they exist.
[24].
As correctly contended by Unki Mines, all
of these grounds for removal should be considered in context and with
reference to all
the facts and relevant circumstances, which are
briefly set out in the paragraphs which follow. In that regard, sight
should not
be lost of the crucial fact that it was because of Dohne’s
unreadiness to proceed to trial on two occasions during 2017, that
the arbitration proceedings have to date not been finalised. It is
therefore misguided for them to attempt to place the blame on
Unki
Mines for the fact that the arbitration proceedings stalled for
approximately three years.
[25].
During 2017 the Arbitrator dismissed an
application by Unki Mines for security for its costs in the sum of
R500 000 primarily
because it (Dohne) had been placed under
provisional judicial management on 4 September 2015. This is one
example of the Arbitrator
ruling or finding against Unki, despite his
alleged bias against Dohne.
[26].
As alluded to above, on 7 March 2017 the
Arbitrator granted an application by Dohne to postpone the hearing
scheduled to take place
from 13 to 17 March 2017, and issued ‘a
procedural order’ in terms of which the hearing was postponed
to 4 September
2017 (a delay of approximately 6 months). The
procedural order also dealt with related issues, including that the
applicant should
pay the wasted costs occasioned by the postponement.
This is a further example of the Arbitrator – despite the
opposition
by Unki Mines – ruling in favour of Dohne on the
requested postponement and making – as is commonplace in
applications
of that nature – an award for costs.
[27].
On 16 August 2017, with the arbitration
hearing less than three weeks away, Dohne’s previous attorneys
of record withdrew
because of concerns about its ability to pay their
fees. A Mr Maphosa represented Dohne at the pre-arbitration meeting.
As reflected
by the minutes, there was no suggestion that Mr Maphosa
intended seeking a (further) postponement pending the appointment of
new
legal representation. On the contrary, various issues regarding
the upcoming hearing were debated and discussed. So, for of example,
Unki argued that Dohne bore the onus and ought to begin. Mr Maphosa
contested this and the Arbitrator ruled in favour of Dohne.
Also, the
parties agreed that they would exchange their lists of issues by 1
September 2017 for it to be in time for the hearing
scheduled to
commence on 4 September 2017. And on 29 August 2017, Mr Maphosa
delivered Dohne’s opening submissions (which
he authored).
[28].
However, on 1 September 2017, Mr Maphosa
confirmed, in an email, that Dohne had failed to pay the required
deposit for the Arbitrator’s
fees and that the arbitration was
thus, as he put it, ‘cancelled’. In the same e-mail, he
confirmed that Dohne had
been preparing for the arbitration scheduled
to proceed on 4 September 2017. He also separately provided a
power of attorney
indicating that he (along with a Mr Mukaro) were
authorised to represent Dohne.
[29].
It is against this factual backdrop that
the other grounds on which the perceived bias is claimed, should be
considered. And from
which, in my view, it is clear that there is no
merit in any of these bases on which bias is claimed. It is clear
from the aforegoing
that the scheduled hearing could not proceed
because of Dohne’s failure to pay its share of the deposit
required by AFSA.
The parties nevertheless convened on 4 September
2017 to consider issues relating to costs. Mr Maphosa attended this
meeting. Unki
Mines sought its wasted costs and made an application
for security for costs in relation to Dohne’s counter-claim.
This application
for security for costs was not the same as the one
instituted on 6 November 2016. The circumstances under which it was
brought,
were clearly different and there is, in the circumstances,
nothing to be made of the fact that the Arbitrator granted an
application
for security for costs, despite previously dismissing an
application for security for costs. Importantly, Dohne’s
previous
attorneys of record withdrew (on 16 August 2017) because
they were not paid for their services and it failed to pay the
required
AFSA deposit by 31 August 2017. All of this justified the
application for security for costs and the Arbitrator granting such
application.
[30].
As submitted on behalf of Unki Mines, there
was nothing untoward about a costs order against the party that was
seeking the postponement.
There is absolutely no merit in the
submission by Dohne that, whilst the Arbitrator should have
entertained the request for a postponement,
all other matters ought
to have been held over pending the appointment of legal
representation. Similarly, there was nothing untoward
about the order
directing Dohne to set security for costs, given the circumstances of
the second postponement as set out above.
Simply put, the Arbitrator
was not constrained to consider the interests of one party (Dohne
Construction) only and the fact that
measures were put in place –
the security for costs – at the behest of Unki Mines, does not
indicate bias against the
applicant.
[31].
Unki Mines submitted that the directive
issued by the Arbitrator on 4 September 2017 illustrated an
even-handed and balanced
approach on his part. I find myself in
agreement with this submission. On the one hand, the Arbitrator was
being sensitive to Dohne’s
position (being legally
unrepresented), and who was the one seeking an indulgence in the form
of a postponement, and on the other
hand, protecting the legitimate
interests of Unki Mines, who was ready to proceed with the hearing of
the arbitration. Importantly,
Mr Maphosa (at the time) had no
difficulty with the 4 September 2017 directive, as is demonstrated by
his 5 September 2017 response
to Unki Mines’ e-mail regarding
the taxation process (as directed by the Arbitrator in the 4
September 2017 directive).
[32].
As regards the averment that the
Arbitrator, in formulating and issuing his ‘procedural
directive’ of 4 September 2017,
was being ‘blindly led’
by the legal representatives of Unki Mines, I am of the view that
this complaint has no merit.
By all accounts, when it was pointed out
to the Arbitrator that Dohne’s counter-claim should also be set
down, he agreed
and as a fact, neither Dohne nor its counter-claim
have been excluded. The actions of the Arbitrator cannot possibly be
those of
a biased adjudicator. The same applies to the nonsensical
suggestion by Dohne Construction – on the basis of flimsy
inferences
– that the Arbitrator was ‘being coy’
about his notes.
[33].
For
all of these reasons, and applying the above principles relating to
perceived bias on the part of an Arbitrator, I am of the
view that
Dohne Construction failed to demonstrate good cause to have set aside
the appointment of the Arbitrator. It failed to
make out a case for a
reasonable apprehension of bias – far from it. The case of
Dohne amounts to nothing more than mere
conjecture, speculation and
allegations dealt with in vague terms, when clear evidence was
required. It brings to mind what was
held, as follows, by Nugent JA
in
AllPay
Consolidated Investment Holdings (Pty) Ltd & others v CEO, South
African Social Security Agency & Others
[5]
:
-
‘
Whatever
place mere suspicion of malfeasance or moral turpitude might have in
other discourse, it has no place in the courts –
neither in the
evidence, nor in the atmosphere in which cases are conducted. It is
unfair, if not improper, to impute malfeasance
or moral turpitude by
innuendo and suggestion. A litigant who alleges such conduct must do
so openly and forthrightly so as to
allow the person accused a fair
opportunity to respond. It is also prejudicial to the judicial
process if cases are adjudicated
with innuendo and suggestion
hovering in the air without the allegations being clearly
articulated. Confidence in the process is
built on transparency and
that calls for the grounds upon which cases are argued and decided to
be openly ventilated.’
[34].
One more issue remains, which requires my
attention. That relates to a supplementary affidavit filed by Dohne
Construction literally
at the eleventh hour, on 12 August 2022 –
one business day prior to the date on which the opposed application
was to be heard.
At the hearing of the application on 16 August 2022,
Dohne applied for leave to file the said affidavit, which, so it
alleges,
has as its purpose the setting out of additional facts,
which had only recently come to their attention, regarding the
‘intimate
association’ between the Arbitrator and the
legal representatives of the Unki Mines.
[35].
In Unki’s ‘supplementary
affidavit’, deposed to by their attorney of record, it is
pointed out that the so called
‘additional facts’ could
not possibly have come to the attention of Dohne only ‘recently’.
Firstly, so
Unki averred, the supposed new facts related to a Webinar
invitation in respect of an event, which was to be co-hosted by AFSA
and the legal representatives on 16 November 2021, which probably
would have come to the attention of Dohne long before August 2022.
Secondly, and more tellingly is the fact that in her written Heads of
Argument, which were filed on or about 20 April 2022, Ms
Humphries
states the following: -
‘
The
Applicant also relies on a subsequent event that took place in
November 2021 in terms of which the Second Respondent’s
legal
team did a presentation for the International Division of AFSA, of
which the First Respondent is the head. Argument on this
issue is not
included herein but will be addressed in supplementary heads and a
supplementary affidavit to the extent that same
is allowed by the
Honourable Court.’
[36].
From the
aforegoing, it is clear that the facts contained in the supplementary
affidavit undoubtedly did not come to the attention
of Dohne shortly
before the said affidavit was filed, but at least some three months
prior. Dohne was therefore being disingenuous
in claiming that they
received the information belatedly. I agree with the submission made
on behalf of Unki Mines that the deponent
to Dohne’s
supplementary affidavit was plainly being dishonest as far as this
aspect is concerned. For this reason alone,
the application for leave
to file the supplementary affidavit should be refused.
[37].
Even if Dohne
was to be granted leave to file the said supplementary affidavit
rather belatedly, it would make little difference
to the outcome of
this application for the simple reason that, even on their own
version contained in the said affidavit, the so
called ‘intimate
association’ between the Arbitrator and the legal
representatives of Unki is not demonstrated. As
rightly contended by
Unki, the basis of Dohne's complaint amounts entirely to misguided
conjecture to the effect that – simply
because the Arbitrator
is head of AFSA's international division – he necessarily had
several ‘interactions’ and
‘discussions’ with
the legal representatives of Unki. This, to my mind, appears to be a
continuation by Dohne in that
vein of its litigation by innuendoes
and vague suggestions with very little, if any, concrete evidence in
support of its allegations.
[38].
In any event,
Unki denies these allegations and state that they ‘are simply
wrong as a matter of fact, and the assumptions
are misguided’.
Their attorney confirms that she did not have a single invitation,
‘discussion’ or ‘interaction’
with the
Arbitrator in the lead up to, or in the conduct of the relevant
webinar, whether during September 2021, October 2021,
November 2021
or at any other time.
[39].
That sounded
the death knell for the point that the Arbitrator is reasonably
perceived to be biased in favour of Unki against Dohne
because of his
‘intimate association’ with Unki’s legal
representatives.
[40].
For all of
these reasons, I am of the view that the applicant’s
application falls to be dismissed.
Costs
[41].
The general rule in matters of costs is
that the successful party should be given his costs, and this rule
should not be departed
from except where there are good grounds for
doing so.
[42].
In casu
, I
can think of no reason why I should deviate from this general rule
and I therefore intend awarding costs in favour of Unki Mines
against
Dohne Construction. In that regard, Mr Daniels urged me to grant
punitive costs on the attorney and client scale. I am
not persuaded
that a case was made out for such a punitive costs order.
Order
Accordingly, I make the
following order: -
(1)
The applicant’s application for leave
to file a supplementary affidavit is refused with costs.
(2)
The applicant’s application is
dismissed with costs, such costs to include the second respondent’s
costs consequent
upon the employment of Senior Counsel.
________________________________
L R ADAMS
Judge of the High
Court
Gauteng Division,
Johannesburg
Heard On:16
th
August 2022
Judgment Date: 7
th
December 2022 – judgment handed down electronically.
For the Applicant:
Advocate Chantelle Humpries
Instructed by: Nourse
Incorporated
Randpark Ridge, Randburg
For the First Respondent:
No appearance
Instructed by: No
appearance
For the Second
Respondent: Advocte A J Daniels SC
Instructed by: Allen &
Overy LLP, Sandton
[1]
Hyde
Construction CC v Deuchar Family Trust and Another
2015 (5) SA 388 (WCC);
[2]
Telcordia
Technologies Inc v Telkom SA Ltd
[2006] ZASCA 112
;
2007 (3) SA 266
(SCA)
(2007 (5) BCLR 503
;
[2007] 2 All SA 243)
para
154);
[3]
President
of the RSA v South African Rugby Football Union
[1999] ZACC 9
;
1999 (4) SA 147
(CC) para 48;
[4]
Umgeni
Water v Hollis NO and Another
2012 (3) SA 475 (KZD);
[5]
AllPay
Consolidated Investment Holdings (Pty) Ltd & others v CEO, South
African Social Security Agency & Others
2013 (4) SA 557
(SCA) at [4];
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