Case Law[2025] ZAGPPHC 530South Africa
Road Accident Fund v Schuurmann Van Den Heever & Slabbert Inc and Others (Appeal) (A300/2024) [2025] ZAGPPHC 530 (28 May 2025)
High Court of South Africa (Gauteng Division, Pretoria)
28 May 2025
Headnotes
and the order is set aside.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Road Accident Fund v Schuurmann Van Den Heever & Slabbert Inc and Others (Appeal) (A300/2024) [2025] ZAGPPHC 530 (28 May 2025)
Road Accident Fund v Schuurmann Van Den Heever & Slabbert Inc and Others (Appeal) (A300/2024) [2025] ZAGPPHC 530 (28 May 2025)
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sino date 28 May 2025
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
Case No. A300/2024
(1) REPORTABLE: YES/NO
(2) OF INTEREST TO OTHER
JUDGES: YES/NO
(3) REVISED: YES
DATE
SIGNATURE
In the matter between:
ROAD
ACCIDENT FUND
Appellant
and
SCHUURMANN
VAN DEN HEEVER & SLABBERT INC
First
Respondent
INNES
MUSERUA COSSA
Second
Respondent
GERHARD
VAN DER MERWE
Third
Respondent
DIANA
SEBOKO
Fourth
Respondent
MELITA
MANGAKA
Fifth
Respondent
STEPHANUS
GERHARDUS JANSE VAN VUUREN
Sixth
Respondent
SHANDUKANI
RODNEY MPHUGANA
Seventh
Respondent
LEBOGANG
SANNA NKE
Eighth
Respondent
JOHN
PETER JORDAAN
Ninth
Respondent
ANNA
NDHLOVU
Tenth
Respondent
SUZANNA
ELIZABETH STEBBING
Eleventh
Respondent
ORDER
1.
The order in respect of the main appeal is as
follows:
1.1
the appeal against paragraphs 3 and 4 of the order
of Kumalo J dated 23 March 2023, is dismissed.
1.2
The appeal against paragraph 5 of the order of
Kumalo J dated 23 March 2023, is upheld and the order is set aside.
1.3
The appellant is ordered to pay the respondents’
costs of appeal, which costs shall include the costs consequent upon
the
employment of a Senior Counsel and a junior, such to be taxed in
accordance with Scale C.
2.
The order in respect of the s18(4) appeal is as
follows:
2.1
The appeal is dismissed with costs, which costs shall include the
costs consequent upon
the employment of a Senior Counsel and a
junior, such to be taxed in accordance with Scale C.
JUDGMENT
NEUKIRCHER J:
1]
On 23 March 2023, Kumalo J granted the following order (the March
2023 order)
against the appellant (the RAF):
a)
that the RAF is to make payment of all orders and/or settlements
reached between
the parties which are older than 180 days within
seven days from date of the order;
[1]
b)
that the RAF is to make payment of the orders and settlements into
the bank account
of the first respondent (the Attorneys);
[2]
c)
that in the event that the RAF alleges that it took an administrative
decision
not to pay the claims, that decision is reviewed and set
aside as irrational, unreasonable, capricious and unlawful.
[3]
2]
Aggrieved by this decision, the RAF filed an application for leave to
appeal.
At the same time, the Attorneys filed an application in terms
of s18(3) of the Superior Courts Act 10 of 2013 (the s18(3)).
Strangely,
the RAF filed neither a notice of intention to oppose nor
an answering affidavit and thus, at the time the application served
before
Kumalo J on 16 August 2023, it was unopposed on the papers. It
bears noting that the application for leave to appeal was opposed
by
the respondents, and it is clear that the RAF made submissions in
respect of that as well as the s18(3) application.
3]
On 16 August 2023, Kumalo J dismissed the RAF’s application for
leave to
appeal and granted the respondents’ s18(3) (the August
2023 order). The effect of the latter order was that the March 2023
order remained enforceable pending any further appeal process.
4]
The RAF then petitioned the SCA for leave to appeal the March 2023
order. That
petition was filed late. It also filed a s18(4) appeal –
this too was filed late.
5]
On 4 July 2024, the SCA granted the RAF condonation for the late
filing of its
petition, and granted it leave to appeal the March 2023
order.
6]
What serves then before this Full Court is the following:
a)
the appeal in respect of the March 2023 order;
b)
the RAF’s s18(4) appeal.
7]
I intend to deal with the main appeal in respect of the March 2023
order first,
and then I will deal with the s18(4) appeal.
8]
It is, perhaps, apposite at this stage already to express the court’s
disquiet
with the manner in which the two appeals were set down to be
heard. It appears that on 24 February 2024, a case management meeting
was held by the parties before the Deputy Judge President (the DJP).
The minute of that meeting reflects the parties’ agreement
that
the two appeals were to be heard at the same time. This decision does
not reflect the intention of
s18(4)
of the
Superior Courts Act at
all.
9]
Section 18
of the
Superior Courts Act states
:
“
(1)
Subject to subsections (2) and (3), and unless the court under
exceptional circumstances orders
otherwise, the operation and
execution of a decision which is the subject of an application for
leave to appeal or of an appeal,
is suspended pending the decision of
the application or appeal.
(2)
Subject to subsection (3), unless the court under exceptional
circumstances orders otherwise,
the operation and execution of a
decision that is an interlocutory order not having the effect of a
final judgment, which is the
subject of an application for leave to
appeal or of an appeal, is not suspended pending the decision of the
application or appeal.
(3)
A court may only order otherwise as contemplated in subsection (1) or
(2), if the party
who applied to the court to order otherwise, in
addition proves on a balance of probabilities that he or she will
suffer irreparable
harm if the court does not so order and that the
other party will not suffer irreparable harm if the court so orders.
(4)
(a)
If a court orders otherwise, as contemplated in subsection (1)—
(i)
the court must immediately record its reasons for doing so;
(ii)
the aggrieved party has an automatic right of appeal to the next
highest court;
(iii)
the court hearing such an appeal must deal with it as a matter of
extreme urgency
; and
(iv)
such order will be automatically suspended, pending the outcome of
such appeal…”
10]
Section 18(4)(a)(iii)
thus envisages that these appeals are heard “as
a matter of extreme urgency” – this appeal was certainly
not
treated with the expediency that
s18(4)(a)(iii)
envisages. When
one considers that the
s18(3)
order was granted as far back as 16
August 2023, and that the
s18(4)
appeal took some twenty months to be
adjudicated – this is a far cry from what the legislators
intended, and what the express
intent of the section requires.
[4]
11]
Even were one to accept the RAFs submission that the
s18(4)
appeal
could not be filed until the SCA granted it leave to appeal on the
main merits on 4 July 2024, it still took the RAF another
six weeks
to file its notice of appeal
[5]
and it took another 9 months for the appeal to be heard. This is not
acceptable.
12]
In my view, the
s18(4)
appeal, once instituted, should have been
heard “as a matter of extreme urgency” many months ago.
13]
Nonetheless, as the parties are agreed that the two appeals should be
heard together, this
court has adjudicated both – each on its
own merits.
The Main Appeal
Background
14]
The Attorneys represent all of the remaining respondents,
[6]
before this court. They each instituted claims against the RAF for
patrimonial damages arising out of separate motor vehicle collisions
in which each other them suffered various bodily injuries and the
related
sequelae
.
Lest one gain the impression that those claims are disputed by the
RAF, that notion is to be disabused – they are not. In
fact,
the RAF concedes in all the papers before this court that each of
these claims was finalised and court orders have already
been granted
in terms of which the RAF was ordered to pay specified amounts and
the legal costs of each action,
[7]
within 180 days.
15]
The RAF subsequently brought applications to extend the period of
payment. The result is,
that at the date of the original application
in November 2022, the second to eleventh respondents had been waiting
for payment
as follows:
a)
second respondent: over 713 days;
b)
third respondent: over 485 days;
c)
fourth respondent: over 544 days;
d)
fifth respondent: over 480 days;
e)
sixth respondent: over 1063 days;
f)
seventh respondent over 716 days;
g)
eighth respondent over 692 days;
h)
ninth respondent over 1229 days;
i)
tenth respondent over 586 days; and
j)
eleventh respondent over 810 days.
16]
Of course, this was as at November 2022 – another two and a
half years has passed
since then without payment of any amount
whatsoever being made in compliance with the various orders made.
17]
The RAF does not deny any of the above facts; in fact, it admits
them. However, it argues
that it has a “reasonable suspicion”
that the Attorneys lodged bills of costs in each matter which were
inflated and/or
fraudulent.
18]
It based this on the following:
a)
in March 2020, a former candidate attorney of the Attorney –
one Mr Crichton
- in the Attorney’s RAF litigation department
came forward as a whistle-blower and deposed to an affidavit;
b)
according to him, the Attorneys would inflate its bills of cost and
fail to properly
account to its various clients;
c)
the Attorneys would also, in addition, retain substantial portions of
the client’s
award in addition to the amount claimed in the
bill of costs, and that the costs taxed were not applied to the
client’s benefit;
d)
the bills of cost included amounts charged for fictitious attendances
and disbursements;
[8]
e)
correspondent attorneys bills of costs were a fabrication;
[9]
f)
the money collected, to be paid to the correspondent, would not be
paid
to them, but would be retained by the Attorneys;
g)
after receipt of money from the RAF in respect of the taxed bill of
costs, the
Attorneys would not apply any benefit to the funds to the
client and would, instead, transfer the received funds as “fees”
either into its business account or into its “business savings
account”;
h)
the Attorney used an unaudited banking account called its “business
savings account”,
to pay expenses.
19]
The RAF argues that although its investigation
[10]
uncovered that these infractions were perpetrated by one director
with the Attorneys, a Mr Jakkie Supra (Supra), who was fired
when the
extent of his activities was uncovered, “it is clear that the
other director/directors must have been aware of the
goings-on in
relation to the bank accounts, fees and tax affairs”, and
therefore “that there is a reasonable conclusion
to be drawn
that the entire firm is tainted with the fraudulent operation.”
20]
As a result, a criminal case has been opened and the case allocated
to a dedicated Prosecutor
at the Johannesburg Director of Public
Prosecutions.
21]
In the meantime, the RAF made the following tender
[11]
:
“
16.2
However, in order to show the bona fides of the RAF and to comply
with its obligations to compensate the actual
complainants, the RAF
tenders to make payment of the capital amounts of damages awarded to
the claimants as listed in Annexure
R3
[12]
hereto.
16.3 In
such matters, it is requested with the leave of the court that the
RAF is authorized to make payment directly
to such claimants,
alternatively that payment be made to the Legal Practice Council
(LPC) as an administrator, who can then ensure
that such funds find
its way to the claimants.”
22]
The RAF also denies that it has taken any administrative decision
that gave rise to any
rights in terms of the Promotion of
Administrative Justice Act 3 of 2000 (PAJA). It argues that PAJA, as
a result, cannot be invoked
and that the appeal in respect of that
order must succeed.
23]
The Attorneys’ directors have denied any knowledge of Supra’s
wrongdoings. According
to them, he was fired once his conduct came to
their knowledge and the Attorneys have reported him to the SAPS –
that investigation
is ongoing.
[13]
They have also, on numerous occasions, requested the RAF to engage
with them on the issue of the bills of costs and have tendered
a
review of the taxation of the bills: all these requests have fallen
on deaf ears.
24]
It also alleges that the RAF’s Forensic Investigation
Department failed to contact
it, failed to allow it an opportunity to
participate in the investigation, and failed to apply the basic
principle of
audi alteram partem
before its report was
finalized. Given that this is not an issue that falls on us to
decide, as a review of the report of the Investigation
Unit is not
sought, it is unnecessary for us to delve into this conduct.
25]
As I have already stated, the RAF does not dispute its liability to
pay the plaintiffs –
it disputes that payment be made to the
Attorneys. Its argument is premised upon s44(1) of the Legal Practice
Act 28 of 2014 (the
LPA) which provides:
“
The
provisions of this Act do not derogate in any way from the power of
the High Court to adjudicate upon and make orders in respect
of
matters concerning the conduct of a legal practitioner, a candidate
legal practitioner of a juristic entity.”
26]
It argues that the Attorneys abdication of its role in the wholesale
and admitted fraud
perpetrated by one of its directors, simply cannot
be countenanced. It relies on the decision of
Limpopo
Provincial Council of the South African Legal Practice Council v
Chueu Incorporated Attorneys and Others
[14]
(Chueu)
for
this stance, in which the SCA stated:
“
[26]
Every director has a fiduciary duty towards the company of which it
is a director. To plead ignorance when
faced with allegations of
misappropriation, does not absolve a director. It has been emphasized
over the years that legal practitioners
cannot escape liability by
contending that they had no responsibility for the keeping of the
books of account or the control and
administration of the trust
account. As this Court stated in Hepple v Law Society of the Northern
Provinces,
[15]
for an attorney
to explain trust deficits on the grounds that he or she had no
involvement in the financial affairs of the firm
is no defence at
all.”
27]
But whilst the principle in
Chueu
is trite, the facts are
distinguishable – the appeal
in casu
does not involve a
trust deficit or the fact that the attorney had failed to pay his/her
client despite receiving payment from
the RAF. This case is about a
single director in charge of the plaintiffs’ claims drawing up
and taxing bills of cost that
did not accurately reflect the
Attorneys’ fees, charges and disbursements.
28]
The point is also that the LPC has, upon investigation, found no
culpability on the part
of the remaining directors of the Attorneys.
29]
Whilst I agree with the RAF’s submission that a court may grant
orders that would
safeguard the interests of claimant and advance the
interests of justice, it cannot do so without cause – in this
case there
is no cause.
30]
I also do not agree that “the RAF as an organ of State cannot
be compelled to make
payments to a law firm that is the subject of
both a criminal and disciplinary process as this is not in the best
interests of
the claimants.” The reason for this is that,
the RAF’s mandate is set out in
s3
of the
Road Accident Fund
Act 56 of 1996
:
“
The
object of the Fund shall be the payment of compensation in accordance
with this Act for loss or damage wrongfully caused by
the driving of
motor vehicles.”
31]
The
Road Accident Fund Amendment Act, 2005
left unaffected this
section of the 1996 Act.
32]
This mandate was fulfilled the moment that the RAF concluded the
settlement agreements with
the plaintiffs and agreed to pay them
compensation for their injuries caused pursuant to “the driving
of motor vehicles”
– at worst it was at the moment that
court orders were granted in their favour. Once the court order was
granted, the RAF
then had an obligation to comply with that order in
terms of s165(5) of the Constitution which states:
“
An
order or decision issued by a court binds all persons to whom and
organs of state to which it applies.”
33]
It is common cause that the orders in question were granted in excess
of three years ago
and that it is only payment of the costs orders
that are contentious. The RAF has not sought to rescind any of the
orders/ the
costs portions; nor has it sought to appeal any of them
either as a whole, or in part. Absent such step taken by the RAF, the
court
orders stand and must be complied with.
34]
In
South
African Association of Personal Injury Lawyers v Heath and Others
[16]
the
Constitutional Court stated:
[55]
The RAF is a State institution and investigation of any fraud on the
RAF would fall within the
scope of the Act. But the matters
referred to the SIU do not deal with this. The allegations in
question relate not
to the RAF, but to dealings between particular
attorneys and their clients. There is no suggestion that
payments made by
the RAF to attorneys, on behalf of their clients,
were in any way improper or unlawful, or that the investigation can
possibly
give rise to the recovery of any money on behalf of the
state. On the face of it, the investigation is not concerned
with
the appropriation or expenditure of public money. It is
concerned with the reasonableness of charges made by particular
attorneys
to particular clients for services rendered by them in
connection with RAF claims, and to the possible over-reaching of
those clients
by their attorneys. It involves an investigation
into what would be “a reasonable and/or taxed amount in respect
of
attorney-client costs”, and whether a particular attorney
has either overcharged his or her client, or failed in some other
way
to account properly to such client for the compensation paid to that
attorney as the client’s agent.”
35]
And in
Road
Accident Fund v MKM obo KM and Another
[17]
the
SCA stated:
“
[26]
The high court also said:
‘
In
short, where there is a [contingency fees agreement] (and this would
rationally be the case in all RAF matters where action is
instituted
using the services of an attorney) the RAF is not empowered to make
an out of court settlement.’
and
‘
[A]s
part of its administrative function, [the RAF] has a duty to see to
it that the provisions of [the Contingency Fees Act] are
strictly
adhered to when it comes to settling claims.’
Also,
‘
The
making of payment without a court order, is incompetent and contrary
to the statutory scheme which binds the RA. Without a valid
settlement it has no basis to pay out on the claim and such payment
is technically made
ultra
vires
.
[27]
I disagree with these pronouncements and findings. It must be borne
in mind that a contingency
fees agreement is a bilateral agreement
between a legal practitioner and his or her client. It has nothing to
do with a party against
whom the client has a claim – the RAF
in this instance. By its very nature, it is confidential and
privileged between the
client and his or her legal practitioner.
Thus, ordinarily, a third party against whom a claim is prosecuted
(such as the RAF),
would not know about its existence, and has no
right, nor an obligation, to enquire about its existence or its
contents.
[28]
The effect of the high court’s judgment is that in each claim
against it, before it makes
an offer of settlement, and pays in terms
of the subsequent settlement, the RAF must enquire from the
claimant’s legal practitioner
whether there is a contingency
fees agreement. If there is, the RAF must insist that the legal
practitioner must obtain judicial
approval in terms of s 4(1) of the
Contingency Fees Act before it concludes a settlement agreement with
him or her. If it does
not, and it settles the claim, and pays out
the capital amount without the legal practitioner having obtained
judicial approval,
it acts unlawfully.
[29]
That is untenable. There are no textual or contextual indications in
the Contingency Fees Act
that the RAF bears any obligation to insist
on a legal practitioner to obtain judicial oversight before it
concludes a settlement
agreement with such a practitioner. As the
short title of the Contingency Fees Act makes plain, the Act was
enacted:
‘
To
provide for contingency fees agreements between legal practitioners
and their clients; and to provide for matters connected therewith.’
[30]
It is practically not clear how the RAF can force the legal
practitioners, who act on behalf
of its opponents, to comply with s 4
of the Contingency Fees Act. The high court, by a fiat,
impermissibly imposed an obligation
on the RAF not contemplated in
the Contingency Fees Act. It did so, purportedly on the basis of a
‘purposive interpretation’
of the Contingency Fees Act.
This, with respect, is not interpretation, but legislation, which is
not within a court’s remit.
[31]
I therefore conclude that there is no obligation on the RAF to ensure
that the legal practitioner
complies with the provisions of s 4
before it concludes a settlement agreement with him or her
.
It
may well be salutary, where a contingency fees agreement is in place,
for the RAF to enquire whether there has been compliance
with s 4 of
the Contingency Fees Act before it concludes a settlement agreement
with a legal practitioner. But that does not equate
to a statutory or
legal obligation. “
36]
Thus, the clear principle established is that the RAF has no right to
interfere in the contractual
relationship between an attorney and
his/her client. By insisting on paying anyone other than the attorney
of the plaintiff, this
is precisely what it is doing. In any event,
and if there is indeed a valid Contingency Fee agreement between the
plaintiffs and
their attorneys, by paying the plaintiffs directly,
the RAF is impermissibly circumventing that agreement.
37]
Furthermore, it was conceded during argument that an attorney may not
lawfully practice
without a Fidelity Fund certificate in terms of
s82(1) and 84(2)
[18]
of the
LPA. Thus, in the event that the attorney misappropriates any funds,
the plaintiffs will have recourse to the Fidelity Fund.
The RAF
conceded that it is not its case that the attorneys’ firm has
practiced without a Fidelity Fund, or that the plaintiffs
have no
recourse to the Fund in the event of any theft of their funds.
38]
But this aside, this very issue has already been dealt with by this
Division: in
Ehlers
Attorneys v Road Accident Fund
[19]
(Ehlers)
,
Mabuse J stated:
“
[12]
On the other hand, the Respondent, for inexplicable reasons, insists
on paying the claims into the bank accounts
of the Applicant’s
clients. This is a clear indication of the ability of the
Respondent to pay the Applicant’s
clients’ claims.
The only problem with this method of payment, and something that has
never been considered by the
Respondent, is that the method the
Respondent insists on using does not cater for the Applicant’s
fees. The Respondent
does not explain how, in the amounts that
it wants to pay into the First Respondent’s clients’
personal accounts, provision
will be made for the Applicant’s
fees.
[13]
It is not correct, as the Respondent contends, that this appeal
engages significant legal issues that include
what the RAF’s
constitutional and statutory mandates are. This proposition is
farfetched and lacks merit. The
most crucial point in this
matter is simply a statutory body ignoring its constitutional and
statutory mandate and furthermore
ignoring the Court’s orders
and treating the Court orders with disdain.”
39]
The RAF conceded in argument that there is no allegation that there
are any suspension or
removal proceedings contemplated or underway
against the Attorneys’ remaining directors. The RAF then also
conceded that
no
curator bonis
has been appointed by the LPC
to manage the firm, its clients or its funds.
40]
This all being so, there is no basis upon which this court can
interfere with the orders
made or the orders granted by Kumalo J on
23 March 2023 that the RAF is to make payment of the plaintiffs’
claims within
seven days, into the Attorneys’ account. Thus,
the appeal as against paragraphs 3 and 4 of the order granted must
fail.
41]
However, the appeal against paragraph 5 of the March 2023 order must
succeed. The basis
upon which the order was sought was that, insofar
as the RAF may allege that it took an administrative decision not to
pay the
Firm, this decision was taken without notice; the Attorneys
and its clients were denied an opportunity to make representations;
the Attorneys has not been given any statement of the administrative
decision and despite several requests no reasons for “the
decision” have been provided despite several requests.
[20]
42]
But the respondents’ bald allegations are simply insufficient
for purposes of a review
application:
a)
firstly, the “review” (such as it was) was not properly
motivated
in the founding affidavit and was not supported by any
documentation demonstrating that such a decision was either
contemplated
or taken by the RAF;
b)
secondly, the RAF resoundingly denied that any such decision existed;
c)
thirdly, the manner in which the application is framed does not
support a review
application, and any such application would have
been brought outside of the 180-day period stipulated in s7(1) of
PAJA. The application
contains no attempt to explain the delay, nor
does it ask for condonation for the late institution of the purported
review. This
would be fatal to such a review
[21]
;
d)
lastly, given the lack of any cogent evidence that such a decision
was taken
by the RAF, its response is not untenable or so far-fetched
that it should be rejected.
[22]
43]
Thus, the appeal against paragraph 5 of the March 2023 order must
succeed.
44]
Given that the RAF has not succeeded on the main merits of the
appeal, it must bear the
costs of the appeal. Both parties employed
both Senior and junior counsel, the issues are quite complex and the
record not insignificant.
In my view, costs of two counsel, of which
one is a Senior Counsel, to be taxed in accordance with Scale C, are
justified.
The Section 18(4)
appeal
45]
The relevant provisions of
s18
of the
Superior Courts Act 10 of 2013
state:
“
(1)
Subject to subsections (2) and (3), and unless the court under
exceptional circumstances orders
otherwise, the operation and
execution of a decision which is the subject of an application for
leave to appeal or of an appeal,
is suspended pending the decision of
the application or appeal.
(2)
Subject to subsection (3), unless the court under exceptional
circumstances orders otherwise,
the operation and execution of a
decision that is an interlocutory order not having the effect of a
final judgment, which is the
subject of an application for leave to
appeal or of an appeal, is not suspended pending the decision of the
application or appeal.
(3)
A court may only order otherwise as contemplated in subsection (1) or
(2), if the party
who applied to the court to order otherwise, in
addition proves on a balance of probabilities that he or she will
suffer irreparable
harm if the court does not so order and that the
other party will not suffer irreparable harm if the court so orders.
(4)
(a)
If a court orders otherwise, as contemplated in subsection (1)—
(i)
the court must immediately record its reasons for doing so;
(ii)
the aggrieved party has an automatic right of appeal to the next
highest court;
(iii)
the court hearing such an appeal must deal with it as a matter of
extreme urgency; and
(iv)
such order will be automatically suspended, pending the outcome of
such appeal…”
46]
The RAF’s notice of appeal in the
S18(4)
was only filed on 20
August 2024: this is a year after the
s18(3)
order was granted and
about six weeks after the SCA granted it condonation to appeal the
merits of the March 2023 order. The RAF
also filed an application for
condonation for the late filing of this notice of appeal. Including
the citation of the parties,
the founding affidavit is 18 paragraphs
(or 3 pages) long and its high-water mark is that the notice of
appeal is “only”
a few days late and there is no
prejudice to any party.
47]
In argument, Mr Motepe
[23]
submitted that the notice of appeal could not be filed until such
time as the SCA had granted it condonation in respect of the
main
appeal. Had it not done so, the
s18(4)
appeal would have been
premature.
[24]
Whilst this may
be so, it is very clear that the RAF did not treat the
s18(4)
with
the urgency with which that section envisages and indeed demands. In
fact, it is clear from its conduct that it has, throughout
all the
proceedings simply taken a
laissez-faire
stance
[25]
in the hope that the court will take up the cudgels on its behalf.
This dissatisfactory manner of conducting litigation is strongly
deprecated and is to be resoundingly discouraged.
48]
However, I do intend to deal with the
s18(4)
as there are issues
which require an adjudication by this court. Had it not been for
this, the outcome may well have been considered
differently.
49]
It is, by now, trite that when considering a
s18(3)
application, the
court is constrained to consider and pronounce on three main issues.
Those are:
a)
are there exceptional circumstances which would warrant the court
departing from
the automatic suspension of the original order?
b)
did the party
who applied to the court to order otherwise, prove on a balance of
probabilities that he or she will suffer irreparable
harm if the
court does not so order?
c)
did the party who applied to the court to order otherwise, prove that
the other
party will not suffer irreparable harm if the court so
orders?
[26]
50]
It is clear from the judgment of Kumalo J, that the application for
leave to appeal and
the
s18(3)
were heard at the same time, and it
appears that the judgment on the two applications contain the same
ratio for both. This
ratio
appears to be the following:
a)
that it is difficult to understand the RAF’s objection to
granting the
respondents’ request that it make payment of the
court orders as
“
[5]
…this is nothing more than the confirmation of the principle
established in the full
court of this division of prior matters
involving the appellant and a host of other partners involved
including the Legal Practice
Council, Personal injury Plaintiff’s
Lawyers Association, etc”;
b)
the RAF has given an undertaking to make payment of the plaintiff’s
orders;
c)
the order to pay the Attorneys is also not a novel issue and has been
decided
by several courts
[27]
against the same objections by the RAF against the RAF;
d)
“Even if this court were to grant leave to appeal on it, it
certainly will
not advance the cause of the appellant in this matter
and would simply delay the payment of the claim of the individual
respondents
who need the matter to be finally settled.”
[28]
51]
Whilst the reasoning of the court demonstrates why it granted the
orders it did, what it
failed to do is set out the three requirements
upon which the
s18(3)
order was based. The respondents argue that
paragraph 10 of the judgment is quite clearly the
ratio
upon
which this order was based and that it contains the necessary basis
upon which one can conclude that exceptional circumstances
were
present and that irreparable harm would ensure to them were the order
not to be granted.
52]
The question is whether this court can, in these circumstances,
consider all the evidence
before it to determine whether the order
should have been granted in the absence of the court
a quo’s
clear intention on each of the relevant issues?
53]
The RAF did not raise the failure of the court to deal with the three
requirements as a
ground of appeal in its Notice of Appeal. Its heads
of argument however, focused almost exclusively on this issue. This
is hardly
surprising given the RAF’s conduct in this matter
thus far. Its original grounds overlap the grounds of the main
appeal.
The
s18(4)
heads of argument focus on the court a quo’s
failure to deal with the three requirements set out in
s18(3)
, and
more especially, its failure to find that there were any exceptional
circumstances present.
54]
The argument is that an order in terms of
s18(3)
is an extraordinary
remedy which the statute envisages will only be deployed in
exceptional circumstances. The reason for this
is self-evident:
[1]
The immediate execution of a court order, when an appeal is pending
and the outcome
of the case may change as a result of the appeal, has
the potential to cause enormous harm to the party that is ultimately
successful.”
[29]
55]
The RAF argues that findings on exceptional circumstances and
irreparable harm are the very
foundations upon which any order in
terms of
s18(3)
are grounded.
[30]
Without those, it is impossible for the court hearing a
s18(4)
appeal
to know why the order was granted, or whether these grounds were even
considered and the test properly applied. It argues
that the high
water mark of the court
a
quo’s
judgment
being found in paragraph 10 of the judgment, it is in any event clear
that no exceptional circumstances were present justifying
the order
granted. It lastly argues:
a)
that there were sufficient prospects of success on appeal for the SCA
to grant
its petition on the merits;
b)
that, this being so, there are no exceptional circumstances present;
c)
that the RAF would suffer irreparable harm were payment to be made to
the Attorneys
as it would render any appeal moot and that payment
would not be able to be reversed in the event that an appeal is
successful.
56]
The respondents argue that the import of paragraph 10 of the judgment
a quo
directly affords insight into the ground upon which
Kumalo J found exceptional circumstances to be present. They argue
that it
is an important consideration that the RAF does not seek to
overturn the court orders upon which its liability to the plaintiffs
is based – what it does is seek authorization to pay the funds
to someone other than the attorneys. Thus, even were the appeal
to be
successful, the RAF’s liability to the plaintiffs would remain
extant. This, they argue is, partly, the basis of the
exceptional
circumstances and also founds the irreparable harm findings.
57]
The respondents also argue that the issue is whether the outcome of
the
s18(3)
is justified on the record before this court, to which
this court is bound.
58]
In my view, the respondents’ argument must prevail. In
Knoop
the
SCA was faced with a
s18(3)
judgment which failed to properly set out
one of the most important factors to be considered when granting such
an order: that
is the “exceptional circumstances”
ground
[31]
. Furthermore, the
SCA was also quite critical of the manner in which the court a quo
had considered the “irreparable harm”
requirements. The
court then proceeded to consider the affidavits as well as the heads
of argument before it
[32]
before finding that the
s18(4)
appeal should be upheld.
59]
The SCA also had the benefit of the appeal on the merits before it
and in this regard stated:
[50] We had the full
record in the main appeal before us and had read it in anticipation
of dealing with the main appeal, but the
argument on the urgent
appeal did not include any debate over prospects of success in the
main appeal. Our finding that the three
requirements for making an
execution order were not established means that we did not have to
consider whether there is a discretion
once they are present and, if
so, whether the prospects of success should affect its exercise.
There may be difficulties if the
high court takes the prospects of
success into account in granting an execution order, because it is
not clear that the court hearing
an urgent appeal under
s 18(4)
will
always be in a position to assess the weight of this factor. As I
have noted, in both
UFS v Afriforum
and
Ntlemeza
the
court disposed of the appeal by disregarding the prospects of success
on appeal. The urgency of the appeal almost inevitably
dictates that
in this court and possibly in a full court, the appeal court will not
have the record before it and will be confined
to assessing the
prospects of success in the main appeal from the judgment alone. The
usual principle that an appeal court decides
the appeal on the record
before the high court cannot apply in those circumstances. If the
language of
s 18(4)
confers a discretion, is that a full discretion
or a power, combined with a duty to exercise that power on proof of
the requirements
for its exercise? These issues may warrant a
reconsideration of the approach in
Justice Alliance
on an
appropriate occasion.”
60]
It is thus clear, that when considering the outcome of the
s18(4)
,
this court must have regard not just to the judgment in respect of
the
s18(3)
application – which I emphasize was not opposed by
the RAF – but to the entirety of the appeal record before it.
Given
that we are seized with the appeal on the merits, insofar as
prospects of success are to be considered when considering the issue
of exceptional circumstances, this court is in a position to consider
that as well.
Exceptional
circumstances
61]
In this case, I have already stated on several occasions that the
merits of the plaintiffs’
claims and the issue of the RAF’s
liability were not in issue; the quantum was settled and the RAF
concedes on several occasions
that it owes the plaintiffs’
payment.
62]
It is difficult to conceive on what basis the RAF claims an
entitlement not to pay the Attorneys
given the outcome of the appeal
on the merits. The RAF has no right to retain the payments and its
argument has already been rejected
by several courts. It is also
bound by s165(5) of the Constitution.
63]
The fact remains that the RAF has failed to pay court orders, validly
granted, for (in some
cases) over 6 years. This, in the absence of an
appeal on those matters, in and of itself, gives rise to the
exceptional circumstances
requirement.
Irreparable harm
64]
The RAF argues that it will suffer irreparable harm were this court
to refuse the s18(4)
as the funds would be paid to the Attorneys and
they would have no recourse. But that statement is not correct:
a)
it is obliged to pay the plaintiffs’ duly authorized
representative in
terms of the court order;
b)
the plaintiffs’ support the Attorneys in its endeavours –
this is
evident from the fact that they have supported the Attorneys
in the initial application
[33]
and in all the subsequent proceedings;
c)
there is no indication anywhere on the record that any of the
plaintiffs have
terminated the Attorneys’ mandate and appointed
different legal representatives;
d)
in the event that the RAF pays out the claims and the Attorneys fail
to pay their
clients, the RAF’s obligations have been fulfilled
towards the plaintiffs and the plaintiffs must then exercise their
individual
rights against the attorneys;
e)
in the event that the RAF succeeds in proving that the costs paid out
to the
Attorneys were not due or payable (for whatever reason), the
RAF has recourse against the firm and/or its directors via, for
example,
a claim for repayment or damages or any other legally
competent cause of action.
65]
The respondents however, have indeed suffered and will continue to
suffer irreparable harm
were the s18(4) appeal to succeed:
a)
the attorneys firm has already incurred substantial costs on behalf
of the plaintiffs
in their claims against the RAF for which they have
yet to be reimbursed despite costs orders being granted and taxed:
“
44.
The matter is urgent because experts such as Industrial
psychologists, Actuaries, Medical Practitioners
are owed money and
they are starting to threaten litigation against the first Applicant.
These professionals no longer believe
the 1
st
Applicant
who has informed them that the 1
st
Applicant’s
claimants have not yet been paid and therefore [their] bills can not
yet be paid at this juncture.
45.
The matter is urgent because the first Applicant is a law firm which
primarily practices
third party litigation and as the Road Accident
Fund refuses to make payment to the first Applicant the First
Applicant may be
compelled to close its doors.”(sic)
b)
the Attorneys states:
“
15.
I place on record that some of the claimants that we represent are
unemployed and/or severely injured
and due to the fact that they have
not been paid for reasons which only the Respondents can state, they
have not been able to go
for the treatment/s which they desperately
need. Many of the claimants have been compelled to take loans against
their awards in
order to attempt to survive due to the Road Accident
Fund’s failure and/or refusal to make payment in terms of court
orders
or settlements which the claimants have obtained, and which
are not challenged or disputed…”
[34]
And
“
43.
The claimants urgently require payment so that they can continue with
their required medical treatment,
use their compensation for the
daily living expenses, utilse the money for wheelchairs and
infrastructure to adapt to their injury-stricken
lives.”
66]
It bears noting that the RAF denied the
content of this paragraph and callously stated that, in the event
that the claimants were
given undertakings in terms of s17(4) of the
Act, they could have sought medical treatment. They also repeat the
tender to pay
either plaintiffs directly or the LPC. Firstly, the
in
vacuo
denial, especially in the face of
the confirmatory affidavits put up by each of the plaintiffs which
are part of the record, certainly
does nothing to disturb the finding
that the plaintiffs will indeed suffer irreparable harm were the
s18(4) appeal to succeed.
Secondly, the tender was correctly rejected
for the reasons set out
supra
.
67]
Thus, in my view, there is no merit in the s18(4) appeal, and it must
be dismissed with
costs.
Costs
68]
The respondents have sought costs on a punitive scale. They argue
that the RAF’s continued
delays in the prosecution of both the
main appeal and the s18(4) appeal and the lack of merits of the
s18(4) appeal strongly suggest
that the RAF was not
bona fides
.
69]
Whilst the RAF’s conduct has lacked the impetus envisaged by
s18, this court cannot
lose sight of the other factors that brought
about the delay in the finalization of this appeal:
a)
the petition was only granted on 4 July 2024 – this was some 11
months
after the application for leave to appeal was originally
refused;
b)
the finalization of both appeals was delayed: despite the s18(4)
Notice of Appeal
being filed on 20 August 2024, it took another 8
months for this appeal to be heard which is not acceptable. The
latter was the
result of an agreement between the parties that the
two would be heard together.
70]
Thus, in my view, both parties ultimately delayed the hearing of the
s18(4) and the costs
should follow the result on the same basis as
the main appeal. There is no case made out for a punitive order
against the RAF.
The order
1.
The order in respect of the main appeal is as
follows:
1.1
the appeal against paragraphs 3 and 4 of the order
of Kumalo J dated 23 March 2023, is dismissed.
1.2
The appeal against paragraph 1 of the order of
Kumalo J dated 23 March 2023, is upheld.
1.3
The appellant is ordered to pay the respondents’
costs of appeal, which costs shall include the costs consequent upon
the
employment of a Senior Counsel and a junior, and to be taxed in
accordance with Scale C.
2.
The order in respect of the s18(4) appeal is as
follows:
2.1
The appeal is dismissed with costs, which costs
shall include the costs consequent upon the employment of a Senior
Counsel and a
junior, and to be taxed in accordance with Scale C.
B NEUKIRCHER
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
PRETORIA
I agree and it is so
ordered
C COLLIS
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
PRETORIA
I agree
KF PHAHLAMOHLAKA
ACTING JUDGE OF THE
HIGH COURT
GAUTENG DIVISION,
PRETORIA
This judgment was
prepared and authored by the judges whose names are reflected, and is
handed down electronically by circulation
to the parties/their legal
representatives by email and by uploading it to the electronic file
of this matter on CaseLines.
The date for hand-down is deemed
to be
28 May 2025.
For
the appellant
:
Adv Motepe
SC, with him Adv Rip
Instructed
by
:
Bornman Duma Zitha Attorneys
For
the respondent and
Intervening
Applicants :
Adv
Ngcukaitobi SC, with him, Adv Thompson and Adv Dewey
Instructed
by
: Shapiro &
Ledwaba Inc
Matter
heard on
:
15 April
2025
Judgment
date
: 28 May 2025
[1]
Par
3 of the March order
[2]
Par
4 of the March order
[3]
Par
5 of the March order
[4]
Jai
Hind EMCC CC t/a Emmarentia Convenience Centre v Engen Petroleum Ltd
South Africa
2023
(2) SA 252
(GJ)
[5]
The
s18(4) Notice of Appeal is dated 20 August 2024
[6]
In
this judgment they are collectively referred to as “the
plaintiffs”
[7]
This
upon taxation of the bill of costs
[8]
Eg
consultations, telephone calls, letters and emails
[9]
Because
a correspondent was no more than a “post-box” and would
invoice the Firm for a flat fee of R1 500 but
a bill of costs
would be taxed for an amount of R35 000
[10]
Via
its Forensic Investigation Department
[11]
In
its answering affidavit in the main application
[12]
Annexure
R3 lists 69 plaintiffs, and includes the respondents before this
court. The total amount due by the RAF as at date of
its answering
affidavit on 3 November 2022 was R52 950 914-63. This
amount would, of course, have attracted further
interest due to the
non-payment over the past twenty-nine months
[13]
The
matter is being investigated by the Germiston Commercial Crimes Unit
[14]
(459/22)
[2023] ZASCA 112
(26 July 2023) par 26;
General
Counci of the Bar of South Africa v Geach and Others
2013
(2) SA 52
(SCA) para 87: “It therefore stands to reason that
absolute integrity and scrupulous honesty are demanded of each of
them.”
[15]
[2014]
ZASCA 75
para 21
[16]
[2000] ZACC 22
;
2001
(1) SA 883
(CC) para 59
[17]
2023
(4) SA 516
(SCA) para 27 - 31
[18]
(1) Every
attorney or any advocate referred to in section 34(2)(b), other than
a legal practitioner in the full-time employ of the South African
Human Rights Commission or the State as a state attorney or state
advocate and who practises or is deemed to practise—
(a) for
his or her own account either alone or in partnership; or
(b) as
a director of a practice which is a juristic entity,
must
be in possession of a Fidelity Fund certificate.
(2) No
legal practitioner referred to in subsection (1) or
person employed
or supervised by that legal practitioner may receive
or hold funds or property belonging to any person unless the legal
practitioner
concerned is in possession of a Fidelity Fund
certificate.
## [19](32968/21)
[2021] ZAGPPHC 563 (1 September 2021)
[19]
(
32968/21)
[2021] ZAGPPHC 563 (1 September 2021)
[20]
PAJA:
s3(1)(a), s3(1)(b) and s3(1)(c)
[21]
Asla
Construction (Pty) Ltd v Buffalo City Metropolitan Municipality
2017
(6) SA 360 (SCA)
[22]
Plascon-Evans
Paints Ltd v Van Riebeek Paints (Pty) Ltd
1984
(3) SA 623 (A)
[23]
Counsel
for the RAF
## [24]Myeni
v Organisation Undoing Tax Abuse and Another(15996/2017)
[2021] ZAGPPHC 56 (15 February 2021):
[24]
Myeni
v Organisation Undoing Tax Abuse and Another
(15996/2017)
[2021] ZAGPPHC 56 (15 February 2021):
## “[26]The
application for leave to appeal in the present matter has lapsed.
In order for the application for leave to appeal to
be
revived, condonation will have to be granted by the SCA. Until such
time, there is no application as contemplated by section
18(5) of
the Superior Courts Act, and the ineluctable consequence is that the
section 18(4) appeal is not competent. We
further hold the
view that, although the length of the delay in filing the
application for leave to appeal to the SCA is negligible,
having
read the principal judgment of the courta
quoand
the judgment in the application for leave to appeal, the prospects
of the appellant succeeding with her condonation application
to the
SCA are rather slim.”
“
[26]
The
application for leave to appeal in the present matter has lapsed.
In order for the application for leave to appeal to
be
revived, condonation will have to be granted by the SCA. Until such
time, there is no application as contemplated by section
18(5) of
the Superior Courts Act, and the ineluctable consequence is that the
section 18(4) appeal is not competent. We
further hold the
view that, although the length of the delay in filing the
application for leave to appeal to the SCA is negligible,
having
read the principal judgment of the court
a
quo
and
the judgment in the application for leave to appeal, the prospects
of the appellant succeeding with her condonation application
to the
SCA are rather slim.”
[25]
To
be seen in the late filing of the petition, its failure to file any
affidavits in the s18(3) application and the late filing
of its
notice of appeal in the s18(4)
## [26]Incubeta
Holdings and Another v Ellis and Another(2013/
30879) [2013] ZAGPJHC 274; 2014 (3) SA 189 (GSJ) (16 October 2013)
[26]
Incubeta
Holdings and Another v Ellis and Another
(2013/
30879) [2013] ZAGPJHC 274; 2014 (3) SA 189 (GSJ) (16 October 2013)
[27]
Heath
supra and Ehlers supra
[28]
Paragraph
10 of the judgment of the court
a
quo
[29]
Knoop
v Gupta(115/2020)
[2020] ZASCA 149
(19 November 2020) (Knoop)
[30]
UFS v
Afriforum & Another
[2015] ZASCA 165
(17 November 2016) para 9;
Road Accident Fund and Others v Mabunda and Others (15876/2020);
17518/2020; 182389/2020) [2020] ZAGPPHC
386; [20201]
1 All SA 255
(GP) (18 August 2020); University og Free State v Afriforum and
Another 2018 (3) SA 428 (SCA)
[31]
Knoop
para 55
[32]
Knoop
para 60
[33]
And
all have filed confirmatory affidavits
sino noindex
make_database footer start
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