Case Law[2024] ZAGPPHC 18South Africa
Z.G v J.G.C.G (77979/2018) [2024] ZAGPPHC 18 (12 January 2024)
High Court of South Africa (Gauteng Division, Pretoria)
12 January 2024
Headnotes
and accrues interest which is available on the respondent’s request. In her founding affidavit, the applicant alleges that the total interest earned by the respondent from the same company is R 186 511.21 whereas in her heads of argument, it is argued that the respondent earned interest in the amount of R 1 861 511.21.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Z.G v J.G.C.G (77979/2018) [2024] ZAGPPHC 18 (12 January 2024)
Z.G v J.G.C.G (77979/2018) [2024] ZAGPPHC 18 (12 January 2024)
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sino date 12 January 2024
FLYNOTES:
FAMILY – Divorce –
Contribution
to costs
–
Financially
weaker spouse seeking further contribution – Claims to have
spent substantial amount on litigation –
Whether material
change in circumstances shown – Full and frank disclosure of
financial position required – Applicant
a businesswoman who
has two businesses which generate income that can be used to pay
for legal fees – Failed to fully
and frankly disclose her
income to demonstrate her need for further contribution –
Application dismissed – Uniform
Rule 43(6).
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
REPUBLIC
OF SOUTH AFRICA
THE
HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NR: 77979/2018
(1)
REPORTABLE:
YES
/NO
(2)
OF INTEREST TO OTHER JUDGES
YES
/NO
(3)
REVISED:
NO
DATE:12
January 2024
SIGNATURE:
In
the matter between:
Z[...]
G[...]
APPLICANT
And
J[...] G[...] C[...]
G[...]
RESPONDENT
Delivered:
This judgment was prepared and authored by the Acting Judge whose
name is 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 of
the judgment is deemed to be 12 January 2024
JUDGMENT
MARUMOAGAE AJ
A
INTRODUCTION
[1]
This case highlights an unfortunate trend by some of the litigants in
matrimonial
matters who are legally represented and appear to have
access to financial resources to litigate various aspects of their
disputes
before their marriages are dissolved by the courts. In this
case, there have been various court processes undertaken by the
parties
since the divorce summons was issued. Some of these court
cases appear to have nothing to do with the parties’ divorce
dispute.
However, on careful consideration, it becomes clear that
these disputes concern the parties’ finances which are central
to
their divorce action.
[2]
This case
demonstrates how expensive family-related disputes can be when
parties do not negotiate in good faith to reach reasonable
and
amicable solutions. Particularly when parties actively attempt to
understate their incomes, hide their assets, and move money
derived
from different sources between different bank accounts, some of which
may not be opened in their names. Inevitably, this
leads to different
court actions and applications where parties pursue avoidable
litigation against each other at great costs.
When parties fail to
sensibly resolve their matrimonial disputes, they will be
unnecessarily stripped of their much-needed financial
resources.
Ultimately, legal representatives become the real financial
beneficiaries of this litigious behaviour.
[3]
Among others, the respondent has already been ordered to pay interim
maintenance and
to contribute towards the applicant’s legal
costs. The court is first called upon to determine whether the
respondent should
be ordered to make a further contribution towards
the applicant's legal costs. If so, to determine the actual legal
proceedings
and the amount for which the applicant is entitled to
claim and receive such contribution from the respondent. The second
issue
that must be determined is whether this court can order the
respondent to contribute towards the applicant’s legal costs
that have already been incurred.
B
BACKGROUND
[4]
The applicant is a businesswoman who is a sole member of a registered
close corporation
(hereafter “ACC”), which conducts
business as a guest house. She is the exclusive owner of the exotic
bird breeding
and alpaca farming activities which she conducts
through a company that she registered (hereafter “CL”).
The respondent
is a businessman, an independent contractor, a
director, and the sole shareholder of a private company (hereafter “M
Company”).
M Company’s business originally included
exotic bird breeding and alpaca farming activities. M Company
currently trades in
agricultural products.
[5]
The parties are married to each other out of community of property
subject to the
accrual system. However, they are engaged in a highly
contested divorce action. On 26 November 2019, the respondent was
ordered
to contribute an amount of R 30 000.00 towards the
applicant’s legal costs. The applicant seeks an order that the
respondent
pay a further contribution towards her legal costs in the
sum of R 2 441 846.91. This is for the legal costs that the
applicant allegedly incurred up to and including the first day of the
divorce trial. The respondent opposed this application.
[6]
The parties' trial for divorce was set down from 30 October 2023 to
10 November 2023.
This application was argued a week before the
commencement of the parties’ divorce trial. While the
affidavits are silent
on the issue of urgency and the matter was not
placed on an urgent court’s roll, there appears to be some
dispute in the
parties’ practice notes whether this matter
should be dealt with on an urgent basis. The issue of urgency was not
developed
during the oral hearing. In any event, the matter was not
placed on an urgent roll and none of the parties is burdened with the
onus of proving urgency. There are no children born of the parties’
marriage, which may have dictated the matter being dealt
with
urgently.
[1]
C
CONTENTIONS OF THE PARTIES
i)
Applicant’s version
[7]
According to the applicant, there is a disparity in the financial
resources between
the parties and the respondent has the means to
contribute towards her legal costs. The applicant alleges that the
respondent is
wealthy and has several sources of income. She claims
that the applicant failed to make full and frank disclosure of all
his financial
circumstances. The applicant contends that her
financial position since the respondent was initially ordered to
contribute towards
her costs has deteriorated.
[8]
The applicant alleges further that she has been forced to borrow
money from her friends
and family members to cover her legal costs
which have increased significantly. Further, she owes her mother an
amount of R 1 972 333.48,
her friend, Steyn an amount of R
371 982.50, and her other friend, Jansen an amount of R
196 465.42. The applicant alleges
further that she entered into
loan agreements with all these individuals with fixed-term repayment
terms.
She alleges further that her mother
who had been her major source of financial assistance lost her
monthly source of income due
to retirement and is not able to render
further financial assistance.
[9]
The applicant alleges that from November 2022 to May 2023, the
respondent’s
bank statements demonstrate that he earned a total
amount of R 9 889 166.28 which averages out to R
1 648 186.05
per month. The applicant further contends that
the respondent failed to disclose an amount of R 220 657.94 that
he earned
between 1 January 2018 and 19 July 2023 from Maizefield
Lime and Logistic CC. Further, due to the respondent’s
understatement
of his income, the applicant caused subpoenas to be
issued against relevant witnesses and obtained information from about
five
companies where the respondent has some financial interest as
well as from the respondent’s accountant.
[10]
The applicant contends that one of these companies found no evidence
of any dealings with the
respondent. However, the other company paid
the respondent a monthly gross profit share of R 45 000.00 in
July 2023. She contends
further that in the same company, there is a
balance of R 582 509.08 that is held and accrues interest which
is available
on the respondent’s request. In her founding
affidavit, the applicant alleges that the total interest earned by
the respondent
from the same company is R 186 511.21 whereas in
her heads of argument, it is argued that the respondent earned
interest in
the amount of R 1 861 511.21.
[11]
The applicant alleges further that the respondent also earned an
amount of R 532 042.00
from a Kynoch Fertilizer Division of
Farmisco (Pty) Ltd in gross employment income which the respondent
failed to disclose to this
court. According to the applicant, the M
Company also received money from other different companies and the
balance on its bank
account is R 780 561.80. M Company also
invoiced another company for February, March, and May 2023 for an
amount totalling
R 46 315.25. The applicant alleges further that all
the amounts listed above are a far cry from the amount that the
respondent
claims he earns per month from his income. The applicant
alleges further that between 1 June 2023 and 1 July 2023, the
respondent
received payment of more than R 4 000 000.00
into his bank account.
[12]
It is alleged further that since the commencement of the divorce
proceedings, the respondent
made several donations to various NPOs
and church organisations. Further, in 2023 the respondent donated
amounts totalling R 1 663 854.00
to these organisations.
Further, the respondent is a wealthy businessman and sales
representative of agricultural products which
he conducts in his
personal capacity and through M Company. He sells seeds and
chemicals. According to the applicant, the
respondent lives
rent-free from property owned by ACC. In 2023, the respondent
purchased a luxurious Toyota Hilux bakkie worth
approximately R
700 000.00 and Mahindra bakkie worth approximately R 250 000.00
[13]
The applicant claims not to have the financial means to litigate at
the same level as the respondent.
She claims to have spent an amount
of R 2 218 924.26 on her current attorneys of record which
includes the costs of the
eviction application brought by ACC against
the respondent. However, it is alleged that this amount does not
include legal fees
paid to the applicant’s erstwhile attorneys.
The applicant alleges further that she is liable to repay loans of
approximately
R 2 546 921.40 to her family and friends.
[14]
The applicant contends that she needs a substantial contribution from
the respondent for her
to prepare for the divorce trial which has
been set down for ten days. This includes the divorce action and loan
action which covers
substantial documentation. It was submitted on
behalf of the applicant that these matters will require substantial
preparation
by her legal team, which includes two attorneys, one
candidate attorney, and a senior counsel. These professionals each
have specific
charge-out rates based on their level of experience.
Further, the applicant is liable to pay R 2 441 846.91
worth of
legal fees, which includes the costs of expert witnesses.
The applicant alleges that her counsel fees are on a much lower scale
than the fees of the respondent’s senior counsel.
[15]
The applicant alleges further that the parties are engaged in several
legal disputes that require
financial resources. She contends that as
the sole member of ACC, she was forced to bring eviction proceedings
against the respondent
for his unlawful occupation of the property
owned by ACC, where both parties reside. Further, the respondent
instituted legal proceedings
against ACC which she was also forced to
defend at great costs. The applicant also brought an application for
the separation of
issues that she also had to oppose at a further
cost to herself. The applicant further alleges that there had been
over fifteen
other ancillary legal proceedings between the parties.
It was submitted that some of these proceedings were aimed at forcing
the
respondent to comply with the rules of court because he adopted a
strategy that was aimed at litigating the applicant into submission
by wearing her down emotionally and financially by ignoring his
obligations in terms of the Rules.
[16]
Concerning her income, the applicant contends that she does not draw
regular income from CL.
However, she can derive income depending on
the breeding season and the number of chicks that are successfully
reared or if she
sells mature birds or breeding pairs. She alleges
that last season, she only sold one chick for a period of eight
months for approximately
R 215 000.00. The applicant alleges that as
the 100% shareholder of CL, her business interest in this company
amounts to R 1 347
500.00. Further, she rears birds for various
breeders from which she receives
ad hoc
income. She alleges
that since January 2023, the total income derived from this activity
is R 958 900.00 which was used to pay
for her legal fees and food for
the birds. Some of these birds have an expensive diet that comprises
nuts, fresh fruit, oat hay,
and vegetables.
[17]
According to the applicant, her guest house derives a monthly income
of between R 50 000.00
and R 70 000.00. Most of this income
is consumed by the expenses of the guesthouse and she is not able to
derive an income
therefrom. Further, the income derived from the
guesthouse is also utilized to pay for rates and taxes, relevant
insurance, internet,
and domestic staff. She claims that,
unlike the respondent, she does not have a pension interest. The
applicant alleges that
her monthly expenses amount to approximately R
20 299.00 and she pays between R 10 000 and R 20 000.00
monthly from
CL to ACC.
[18]
The applicant contends that she is entitled to prepare and present
her case which entitlement
is rendered meaningless if she is unable
to prosecute or oppose interlocutory applications due to lack of
financial resources.
She is of the view that the contribution sought
from the respondent will enable her to adequately prosecute her
claims against
him. While this is not a separate prayer in her notice
of motion, the applicant in her founding affidavit also sought a
contribution
towards her maintenance in the form of medical costs for
a period of three months and a resettlement allowance in the form of
a
replacement vehicle.
[19]
According to the applicant, given the fact that the divorce action
and loan action have been
consolidated, the estimated bill of costs
drawn by her tax consultant includes the loan and divorce actions
because these disputes
and their evidence are intertwined, and
overlap. She alleges that the respondent’s claim in the loan
action relates to the
parties’ personal expenses which form
part of his maintenance obligations towards her.
[20]
The applicant denies that she has hidden excessive amounts of income
in her mother’s Investec
Call Account. She alleges that she
decided against opening a separate account but to utilise her
mother’s Investec Call Account
where she deposited funds from
CL. She contends that the money deposited into her mother’
Investec Call Account does not
belong to her but belongs to CL. The
applicant stated in her replying affidavit that everything that was
paid into this account
originated solely from the exotic bird
breeding and alpaca farming activities which were part of the
universal partnership between
the parties and is excluded.
ii.
Respondent’s version
[21]
According to the respondent, this application constitutes an abuse of
the court process. This
is because despite being duly legally
represented throughout the divorce proceedings that were instituted
in 2018, the applicant
decided to lodge this application shortly
before the divorce trial commenced. The respondent alleges that the
applicant is seeking
to obtain an inflated, punitive, unaffordable,
and exaggerated further contribution towards her legal costs from
him.
[22]
The respondent contends further that there is no indication that the
applicant’s legal
representatives will no longer be
representing her if the court does not order that he should
contribute towards her legal costs.
According to the respondent,
should he be ordered to contribute to the applicant’s legal
costs in this application, that
will be the same as being ordered to
pay costs for the divorce trial upfront, where a non-matrimonial
action that has been consolidated
with the divorce issue will also be
heard. While these two matters are consolidated, the respondent
contends that the disputes
and evidence are neither intertwined nor
do the two actions overlap. Further, the applicant is only a party to
the divorce action
and not the loan action while the respondent is a
party in both actions.
[23]
The respondent contends that the applicant failed to fully disclose
all material information
regarding her financial affairs. Further,
the applicant failed to completely disclose her financial affairs and
income as well
as the benefits she obtained from CL. She did not
provide full disclosure of the breeding records of the lucrative
exotic bird
breeding business that she conducted since 2018. Further,
she also did not provide particulars regarding the breeding records
of
the alpaca breeding business in which the applicant has been
involved since 2018. The respondent further alleges that the
applicant
failed to disclose that the income of the guest house has
also been used towards paying her legal fees.
[24]
The respondent further alleges that the applicant failed to fully
disclose statements of her
mother’s Investec Call Account.
According to the respondent, between February 2020 and May 2021, the
gross income of the
bird farming enterprise received in the various
accounts managed by the applicant was over R 3.5 million. Further,
the applicant’s
First National Bank account received an amount
of R 187 316.04. During the same period, CL received a total of
R 106 000.00
in its bank account. This means that the bird
farming business received a total of R 3 874 074.23.
[25]
The respondent alleges further that there has been a constant
unwillingness by the applicant
to reveal the annual financial
statements, tax returns, VAT retains of CL. Further, the applicant’s
mother and four other
people who were subpoenaed to produce their
bank statements and financial documents relating to the monies lent
and advanced to
the applicant failed to do so.
[26]
The respondent believes that the applicant’s mother is equally
guilty of hiding assets
under her name or possibly other accounts.
According to the respondent, if the applicant was acting honestly,
she would have opened
an account in her name or that of CL where the
income derived from the operations of CL would be deposited. She
would not have
kept quiet about the existence of her mother’s
account and the fact that the income derived from CL was deposited
into that
account.
[27]
The respondent suspects that the applicant’s mother made
payments from her First National
Bank credit card for the applicant’s
legal fees. Then she would be refunded to her discovery account which
is an indication
that the applicant pays for her legal fees. The
respondent alleges that this payment was not always affected by a
real debtor.
It was a circle payment to create the impression that
the expenses were paid to the applicant. The applicant did not pay
the purported
creditor. Further, the extent of these circle payments
can only be confirmed once the applicant’s mother’s bank
account
statements and other people who allegedly advanced funds
toward the applicant have been disclosed. The respondent suspects
that
those who allegedly advanced funds for the payment of fees to
the applicant were reimbursed a long time ago from the secret
Investec
Call Account or another account belonging to the applicant’s
mother.
[28]
According to the respondent, there are two amounts that the applicant
disclosed as payments made
by her mother to her erstwhile attorneys.
However, on a proper assessment, these amounts were paid to her
mother’s employer.
An amount of R 60 000.00 was paid on 12
December 2019 and R 240 000.00 was paid on 25 March 2020. The
respondent contends
further that these amounts raise questions
regarding the veracity of the applicant’s version of loans and
payments received
from friends and family. The respondent alleges
further that the applicant’s claim regarding the funding of her
litigation
is false, and she failed to reveal her true financial
position. Further, should the applicant make a proper disclosure, it
would
be clear that she does not need financial assistance from her
family members and friends.
[29]
The respondent claims that the applicant has hidden excessive amounts
of money derived from the
bird-breeding enterprise. Only selected
statements were made available. According to the respondent, this
raises the question of
whether there are accounts in the names of
family and friends where the applicant has hidden her income.
Further, the applicant
neither received financial assistance nor
obtained loans from her mother and friends. The respondent denied
that the applicant
had truly funded her legal costs with personal
loans from family and friends.
[30]
The respondent alleges that birds cost between R 10 000.00 and R
220 000.00 each and
their sale is done through cash payments.
Further, the applicant, and possibly those who purchased these birds,
paid cash into
the applicant’s mother’s bank account. The
respondent pointed out that a total amount of R 400 000.00 was
disclosed
by the applicant as an amount advanced to the applicant by
her mother in the form of loans. An amount of R 200 000.00 was
also disclosed as an amount advanced by one of the applicant’s
friends as a loan. The other friend was noted as having advanced
a
loan of R 100 000.00. Further, the legal fees paid by CL was
disclosed as a total of R 480 000.00. This makes the total
amount paid to the applicant’s attorneys to be R 1 180 000.00
and not the requested amount.
[31]
The respondent alleges further that an amount of R 323 181.00 is
reflected in the annual
financial statement of ACC dated 28 February
2022, as an amount used to pay the applicant’s legal fees, but
no such entry
could be found on ACC bank statements. Further, an
amount of R 365 927.00 is reflected as an amount used to pay the
applicant’s
legal fees
in the annual
financial statement of ACC dated 28 February 2023, but no such entry
could be found on ACC bank statements. The respondent
alleges that
the applicant did not include these amounts in her calculation of the
fees that she already incurred. This means that
the deficit on the
fees is the amount of R 1 038 924.00. The respondent
further alleges that the amount of R 243 750.00
that the
applicant claims has been used to pay for legal fees, birds, and
alpacas is not reflected on the bank statements of CL
for March 2023.
[32]
The respondent contends that the applicant is either not telling the
truth regarding the amount
paid to her attorneys or she is simply not
disclosing other hidden income from the bird and alpaca farming
business which she used
to pay for her legal fees. The respondent
challenges the reasonableness of the legal fees that the applicant
claims she incurred.
In particular, he argues that there is no reason
for the applicant to have two attorneys and one candidate attorney
working on
the matter.
[33]
The respondent contends that he is not liable to pay for the costs of
the amendments to the particulars
of claim that the applicant brought
to date. Further, the applicant is liable for the costs of the
amendments, and it is disingenuous
to make these costs part of her
request for a contribution towards her costs.
[34]
The respondent alleges that he is also struggling to pay his legal
costs and thus, cannot be
expected to pay those of the applicant. He
alleges that he owes his erstwhile attorney an amount of R
331 616.29. The respondent
alleges that because the legal fees
that the applicant incurred have decreased her estate which reduced
her accrual which effectively
decreased what he would have been
entitled to when the accrual is divided, this means that he has
already indirectly contributed
to the applicant’s legal costs.
The respondent contends that if the court were to find that he is
liable to contribute towards
the applicant’s legal costs, then
the amount awarded must be deducted from any amount he may be found
to be liable to pay
to the applicant after the accrual has been
calculated.
[35]
The respondent claims that he receives a monthly salary of R
28 000.00 from M Company. Further,
despite receiving additional
payments based on additional needs, it is M Company that earns the
commission. This money is moved
from M Company’s one bank
account to the other. The respondent states that only one of the
disclosed M Company’s bank
accounts is in his name. He insists
that he is M Company’s employee and income generated by this
company does not belong
to him. There are no cash transactions in the
operations of the M Company. The respondent contends further that
there must be a
distinction between his income and that of M Company.
He denies that he earns R 256 206.23 per month.
[36]
The Respondent denies that he failed to disclose the amount received
from Maizefield Lime &
Logistic CC and Kynoch Fertilizer Division
of Farmisco (Pty) Ltd. He contends that these amounts are reflected
on the disclosed
bank statements and invoices. Further, the applicant
is creating a false impression that an income of R 4 000 000.00
was received in June 2023. The amount of R 1 165 992.09
received from M Company’s FNB account was from inter-account
transfers from the respondent’s FNB credit card account.
According to the respondent, the actual income received was an amount
of R 2 935 741.00 which was the annual commission payment
from Bayer for services rendered for 2022/2023 season. This
is not
additional income but an inter-account transaction.
[37]
According to the respondent, the bird breeding and alpaca farming
enterprise is an extremely
lucrative business. Further, the applicant
should pay her legal fees using the income that she derives from this
business.
The respondent alleges that the
applicant is litigating on a much more luxurious standard than he is
because she has highly skilled
legal representatives who are
representing her. The respondent alleges further that
the
applicant stole R 80 000.00 from M Company’s
First
National Bank account and paid into her sister’s bank account
to ensure that the transaction could not be reversed.
The
respondent contends further that it is not reasonably required for
him to deplete his estate to fund the applicant’s
malicious,
vexatious, and litigious approach.
[38]
The respondent admitted that he donated funds to the church and
charities but alleges that he
has been doing so all his life. He
further contends that some of the money was donated to tertiary
institutions to pay for underprivileged
people.
[39]
The respondent further alleges that the costs incurred in some of the
court cases between the
parties are not incurred in the matrimonial
proceedings and ought not to have been included in this application.
Furthermore, the
vast majority of documentation in the consolidated
trial matters relates to the loan action rather than the divorce
action.
D
APPLICABLE LEGAL PRINCIPLES
i)
Further contribution
[40]
It is a well-established principle of South African family law that
financially weaker spouses,
irrespective of the parties’
matrimonial property regime, are entitled to sue their financially
stronger spouses for contribution
towards their legal costs in
matrimonial matters and that such suits are
sui
generis
.
[2]
This entitlement arises from the Roman-Dutch law duty of support that
spouses owe each other.
[3]
It is
trite that ‘
[t]
he
applicant is entitled, if the respondent has the means and she does
not have them, to be placed in the position adequately to
present her
case …’
[4]
through the respondent’s means.
[41]
It has been held that ‘
[t]he
quantum of the contribution to costs which a spouse may be ordered to
pay lies within the discretion of the presiding judge’.
[5]
This is not an
unfettered discretion where the presiding judge thump-sack the amount
of contribution that should be made. It is
a discretion that must be
exercised judiciously and with care having regard to among others,
the proven facts, evidence led, parties'
financial positions, the
need for such contribution, the scale the parties are litigating,
reasonable litigation needs of both
parties, and the ability of the
person who is requested to contribute towards legal costs to make
such contribution.
[6]
[42]
Rule 43(6) of the Uniform Rules of Court provides that:
‘
[t]he
court may, on the same procedure, vary its decision in the event of a
material change occurring in the circumstances of either
party or a
child, or the contribution towards costs proving inadequate’.
[7]
[43]
In 1988, the Cape Division (as it then was) in
Micklem v
Micklem
convincingly opined that:
‘…
Rule
43(6) should be strictly interpreted to deal with matters which it
says has to be dealt with, that is, a material change taking
place in
the circumstances of either party or child. That relates to a change
subsequent to the hearing of the original Rule 43
application’.
[8]
[44]
It is important to note that there is a test that must be satisfied.
The Cape Division of the
High Court further correctly held in
Greenspan
v Greenspan
that
when the court is considering an application in terms of Rule 43(6),
‘…
to
succeed the applicant must show a material change in circumstances
since the date when the last order was made’.
[9]
The Orange Free State
Division (as it then was) in
Andrade
v Andrade
also
convincingly held that ‘
Rule
43(6) requires a brief statement indicating the material change that
is alleged to have taken place and not a long-winded account
as to
the circumstances under which the change has come about’.
[10]
In
P.E.O.I
v W.A.H,
this
court correctly held that:
‘…
to
succeed in that endeavour, an applicant must demonstrate, not only
that a change or even a significant change in circumstances
has
occurred but must place sufficient facts before the court to enable
it to determine the materiality of that change in the context
of the
applicant’s broader financial circumstances. This would, at the
very least, entail a detailed exposition of all available
sources of
income and would not merely be limited to the income earned from his
(now reduced) salary.
[11]
Further that
‘
[a]
considered reading of Rule 43(6) suggests to me that, in order to
succeed in demonstrating a material change in circumstances,
one must
make a full and frank disclosure in regard to
all
of
the numerous and varied elements which make up the broad overview of
the applicant’s financial situation’.
[12]
[45]
Without any reference to previously decided cases on this point or
any authority to justify its
conclusion, the Free State Division in
Du
Plessis v Du Plessis
[13]
appears
to have taken a different approach from that correctly taken by
previous decisions. The court held that:
‘
[i]t
is clear that an application for a further contribution to costs is
not dependent on changed circumstances having to be demonstrated.
In
my view, the same test that applies to an original application for a
contribution to costs is also applicable to an application
for a
further contribution to costs in terms of Court Rule 43(6)’.
[14]
[46]
The Constitutional Court in
S v S and Another
held that:
‘…
there
is no reason why rule 43 should not be expansively interpreted as
some courts have already done. Rule 43(6) provides litigants
with an
avenue to approach a court for a variation of its decision, on the
same procedure, when there is “material change
occurring in the
circumstances of either party or a child, or the contribution towards
costs proving inadequate”. As
already indicated, it is
incumbent on High Courts to hear on the urgent roll any matter
adversely affecting the best interests
of the child.
Accordingly, any other injustices occasioned will relate purely to
monetary matters. Past financial injustices
can often be
righted when the final reckoning is done at the divorce’.
[15]
[47]
The Constitutional Court further held that:
‘
[t]here may be
exceptional cases where there is a need to remedy a patently unjust
and erroneous order and no changed circumstances
exist, however
expansively interpreted. In those instances, where strict
adherence to the rules is at variance with the interests
of justice,
a court may exercise its inherent power in terms of section 173 of
the Constitution to regulate its own process in
the interests of
justice’.
[16]
[48]
I was referred to various authorities in the heads of argument that
were submitted on behalf
of the respective parties as well as during
oral arguments. While all these authorities are certainly relevant
concerning contribution
to costs generally and litigation parity
between the parties, some of them were not of particular assistance
in the interpretation
of Rule 43(6) of the Uniform Rules of Court
under these circumstances.
ii)
Interim Relief
[49]
The procedure in Rule 43 of the Uniform Rules of Court is intended to
provide interim relief
in matrimonial matters. The division of the
High Court can be approached in terms of Rule 43 only for an order
for interim maintenance,
a contribution towards costs of a
matrimonial action, pending or about to be instituted, interim care
of any child, and interim
contact with any child.
[17]
In
Gunston
v Gunston
,
the court held that ‘…
there
can be no doubt that the whole sub-section concerns interim orders
made in connection with a matrimonial action which is pending
or
about to be instituted’
.
[18]
iii)
Costs already incurred
[50]
The Natal Provincial Division (as it then was) in
Lourens v Lourens,
[19]
refused to order the
husband to pay legal costs that had already been incurred by the
wife. It held that ‘…
such
an order should have been applied for in advance, otherwise there
would be, or might be, no control over the costs to be incurred’.
[20]
The court was of the view
that it did not have the power to retrospectively award already
incurred costs.
[21]
Costs that
were already incurred were excluded in the order towards the
contribution of the applicant’s costs by the Witwatersrand
Local Division (as it then was) in
Nicholson v Nicholson
.
[22]
Without
any justification or reliance on any authority, the court merely
stated that these costs ‘…
cannot
be covered by a contribution towards the costs’
.
[23]
[51]
This division in
Petty v Petty,
[24]
had an opportunity to
consider whether already incurred legal costs can be included when
the court orders contribution towards the
financially weaker spouse’s
legal costs. In
Petty
,
it was argued on behalf of the respondent that the contribution that
was sought was excessive, and that the applicant had been
patently
dishonest and failed to make full disclosure of all the facts. In
particular, it was ‘…
submitted
that the past attorney/client costs may not be considered as they do
not fall within the purview of Rule 43’.
[25]
The court agreed with
this submission and excluded past attorney/client costs when
determining the sum to be awarded to the applicant
as a contribution
towards her legal costs.
[52]
A different approach was adopted in
Cary
v Cary
.
[26]
In this case, the Cape of Good Hope Provincial Division (as it then
was) looked at the issue of already incurred legal costs from
a
broader contribution point of view. In this regard, the court held
that the applicant was ‘…
entitled
to a contribution towards her costs which would ensure equality of
arms in the divorce action against her’
.
[27]
Without considering whether failure to consider past legal costs
would impact the applicant’s ability to litigate at the
same
scale as the respondent, the court simply stated that:
‘
[t]he applicant
would not be able to present her case fairly unless she is empowered
to investigate respondent’s financial
affairs through the
forensic accountant appointed by her. That is applicant will not
enjoy equal protection unless she is equally
empowered with “the
sinews of war”’.
[28]
[53]
Without providing some reasoning why already incurred legal costs
should be considered when the
court awards contribution towards legal
costs, the court in
Cary
v Cary
rejected
the respondent’s argument that the costs that had already been
incurred in matrimonial disputes ‘…
fall
to be disregarded as an application for a contribution to costs must
be made in advance and the court has no power to make
a retroactive
award’.
[29]
It is not clear from the
judgment why this proposition is wrong and equally so, why already
incurred costs should be considered
when a court orders one spouse to
contribute towards the other’s legal costs in terms of Rule
43(1) of the Uniform Rules
of Court. With respect and while certainly
important, the constitutional approach adopted by the court in this
case does not assist
in answering this question.
[54]
In line with
Cary
and
without
any analysis and an attempt to illustrate why previous decisions are
wrong, in
Du
Plessis v Du Plessis
,
[30]
it was held that the view that costs that have already been incurred
should not be considered when an application for a contribution
to
costs is determined is wrong and artificial in principle.
[31]
This approach was endorsed by the Western Cape Division in
AF
v MF
,
where the court held that this approach ‘…
accords
with the injunction in s 39(3) of the Constitution to promote the
spirit, purport and objects of the Bill of Rights when
developing the
common law’
.
[32]
Without dealing with why the previous decisions wrongly held that
already incurred legal costs should not be part of the contribution
that the wealthier spouse should make to the poorer spouse, the court
held that:
‘
[t]he
importance of equality of arms in divorce litigation should not be
underestimated. Where there is a marked imbalance in the
financial
resources available to the parties to litigate, there is a real
danger that the poorer spouse - usually the wife - will
be forced to
settle for less than that to which she is legally entitled simply
because she cannot afford to go to trial. On the
other hand the
husband, who controls the purse strings, is well able to deploy
financial resources in the service of his cause.
That situation
strikes me as inherently unfair. In my view the obligation on courts
to promote the constitutional rights to equal
protection and benefit
of the law, and access to courts requires that courts come
to the aid of spouses who are without
means to ensure that they are
equipped with the necessary resources to come to court to fight for
what is rightfully theirs’.
[33]
[55]
Nonetheless, in
AF v MF
, it was further correctly held that:
‘
[t]he
right to dignity is also impacted when a spouse is deprived of
the necessary means to litigate. A person’s dignity
is impaired
when she has to go cap in hand to family or friends to borrow funds
for legal costs, or forced to be beholden to an
attorney who is
willing to wait for payment of fees - in effect to act as her
“banker”. The primary duty of support
is owed between
spouses, and a wife who is without means should be entitled to look
to the husband, if he has sufficient means,
to fund her reasonable
litigation costs. … And where an impecunious spouse has
already incurred debts in order to litigate,
whether to family or to
an attorney, I consider that a court should protect the dignity of
that spouse by ordering a contribution
to costs sufficient to repay
those debts (at least to the extent that the court considers the
expenditure reasonable)’.
[34]
[56]
AF v
MF
’
s
approach was followed in
HSH
v MH
,
[35]
where it was held that
‘
Davis AJ
clearly rejected any arbitrary notion of limiting the extent of the
contribution to costs made by one spouse to another.
Importantly, he
did so on the basis of constitutional imperatives. In practice then,
what AF v MF achieved was the conclusion that
there is no reason why
an applicant may not be entitled to all of his or her costs, because
what matters most is that the parties
are able to place their case
before the court on an equal footing’.
[36]
[57]
The view that already incurred legal costs should not be considered
when the court determines
the amount that the wealthier spouse should
contribute toward the poorer spouse’s legal costs in terms of
Rule 43 was expressed
by earlier decisions. The current, and
prevailing view, appears to be that the ‘…
law
does not preclude costs already incurred from being taken into
account in determining a contribution to costs’
.
[37]
While the Western Cape Division recognised that there is a need to
consider and apply constitutional ideals when interpreting Rule
43,
it correctly cautioned that:
‘
[i]t is an
approach that recognises that a contribution towards costs is not the
same as a warrant to litigate at any scale of the
applicant’s
choosing if that is disproportionate to the apparent reasonable
requirements of the case or the means of the
parties and the scale
upon which the respondent is litigating. An entitlement to a
contribution towards costs should also
not be seen as equating to a
licence to risk-free litigation’.
[38]
D
EVALUATION AND ANALYSIS
[58]
Both parties in this matter submitted their main affidavits and
supplementary affidavits. The
indulgence to serve and upload
supplementary affidavits is granted.
i)
Changed circumstances
[59]
In my view, where the court has already ordered a wealthier spouse to
contribute to the poorer
spouse’s legal costs in pending
matrimonial disputes as is the case in this matter, the need for
financial support and the
ability to provide such support has already
been established. Unless a change of circumstances can be
established, the position
remains the same when further contribution
is sought.
[60]
Contrary to what was stated in
Du Plessis v Du Plessis,
the
court when considering an application in terms of Rule 43(6) should
apply a different test than that which was applicable when
the
original contribution application was considered. First, with the
application for further contribution, the court is requested
to amend
its previously granted order. Secondly, for such an order to be
amended, the person seeking such an amendment must satisfy
the court
that such an amendment of the court order is warranted.
[61]
The applicant has the onus of satisfying the court that her current
circumstances, which were
not prevailing circumstances at the time
the initial contribution order was made, necessitates the court
ordering the respondent
to make a further contribution towards her
legal costs. Rule 43(6) refers to ‘material change’ in
circumstances, which
appears to be the test that the applicant must
satisfy before a court can order the respondent to contribute further
to her legal
costs.
[62]
In my view, the correct approach to be followed when considering
whether a wealthier spouse should
be ordered to pay more than ‘he’
was earlier ordered to pay as ‘his’ contribution towards
the poorer spouse’s
legal costs should be that crafted by this
court in
P.E.O.I v W.A.H.
Indeed, the applicant must
demonstrate that there is a change in her financial circumstances by
placing sufficient facts before
the court to empower the court to
determine the materiality of that change in the context of her
broader financial circumstance.
This necessitates the applicant, not
only to zoom in on the respondent’s income but also to provide
a full and frank exposition
of her all-available financial resources
or indicate that she lacks such resources.
[63]
The applicant, as the financially weaker spouse who is allegedly
struggling to pay for her legal
fees, must demonstrate her lack of
means by
fully and frankly disclosing all elements
that make up the broad overview of her financial situation. By so
doing, the applicant
will be demonstrating the need for financial
support. While the Constitutional Court in
S
v S and another
held that Rule 43
should be interpreted expansively, it did not outlaw the requirement
that applicants who approach the court in
terms of R 43(6) should
demonstrate the change in their circumstances. Perhaps courts are
required not to be unnecessarily rigid
when determining the
materiality of such changed circumstances.
[64]
From all her affidavits, it does not appear as if the applicant made
an effort to demonstrate
how her circumstances have changed since she
was awarded the initial contribution. This is the test that she must
meet, failing
which she cannot succeed. This is the information that
should empower the court to determine the need for further
contribution.
While the parties’ marriage creates an obligation
for the wealthier spouse, as part of the reciprocal duty of support
that
the parties owe each other in terms of their marriage, the
obligation to contribute is dependent on the need of the poorer
spouse
and the capacity of the richer spouse to provide such support.
Before the capacity of the wealthier spouse could be assessed, the
poorer spouse must first demonstrate the need for support. In the
context of further contribution, the spouse who alleges to be
poorer
must indicate ‘her’ financial circumstances to the court.
I am not convinced that the applicant in this case
has demonstrated
her changed circumstances.
ii)
Full and frank disclosure
[65]
Both parties accuse each other of not fully and frankly disclosing
their true financial positions.
It appears that the main issue is the
parties’ financial interests in their respective businesses. It
seems to me that, on
the one hand, both parties are of the view that
the income earned by their respective businesses belongs to those
businesses and
they should not be forced to use such income for their
legal costs in their matrimonial dispute. On the other hand, each
party
appears to be of the view that the other’s financial
interests in their own business should be used for this purpose.
[66]
These views seem to be fortified by the fact that each party is a
sole member/director and 100%
shareholder in their respective
businesses. In other words, the parties see each other as extensions
of their businesses and do
not distinguish their respective financial
interests and the income they derived therefrom from such businesses.
In terms of part
three of the financial disclosure form, parties are
required to disclose the annual financial statements for the last two
financial
years for the businesses in which they have an interest.
They are also required to disclose any documentation in their
possession
that can provide the court with a sense of the value of
their interest in the disclosed businesses.
[39]
[67]
In these proceedings, the applicant attached a financial disclosure
form that was certified on
30 May 2023. In this form, the applicant
starts by disclosing the matrimonial property owned by ACC. She
states that this property
is worth R 5 8 000 000 and that
the value of her interest therein is nil. She discloses only two bank
accounts held by
FNB and indicates that the value of her total
interest therein is R -7 680.00. One of these accounts is a
credit card. She
states that she does not have any investments or
policies.
[68]
The applicant disclosed further that the value of all her personal
belongings amounted to R 110 000.00.
She also disclosed that she
is owed an amount of R 1 020 280.00 by ACC but the value of
her interest in this business
is R -232 257.00. Further, the
total value of her interest in CL is R 1 330 500.00. She
disclosed further that she
received personal loans from three people
to the combined value of R
2 195 790.96. These creditors
comprise her mother and two friends. She further disclosed that her
monthly expenses amount to
R 22 000.00.
[69]
The respondent correctly questioned the applicant’s financial
disclosure. First, the applicant
in her founding affidavit did not
indicate that she uses her mother’s Investec Call Account to
deposit the money generated
by CL, a company in which she is the sole
director and shareholder. She clearly stated in her replying
affidavit after being confronted
with this issue in the answering
affidavit that everything deposited into this account originated
solely from the activities of
CL’s business. Why did the
applicant not disclose this account and provide its bank statements
for the court to determine
the status of the funds deposited therein?
The applicant failed to make full and frank disclosure in this
respect.
[70]
Secondly, at this stage, it is not clear who the real ‘owner’
of the money deposited
into the applicant’s mother’s
Investment Call Account is. It is also not clear how much money had
been deposited into
this account at least for the past two years. The
applicant’s failure to disclose the information relating to
this account
in her financial disclosure form and to provide the bank
statements for this account gives credence to the respondent’s
allegation
that this account was opened to hide financial resources.
This also makes it difficult not to agree with the respondent that if
indeed there were loans advanced to the applicant by the persons
disclosed in the financial disclosure form, such loans have been
paid
by the money that was deposited into this account. The applicant
failed to provide the bank statements of this account to
counter
these allegations.
[71]
Thirdly, the respondent alleges that the CL received a total revenue
of R 3 874 074.23
and most of the transactions of this
business are cash transactions that were probably deposited either by
the applicant herself
or CL customers into her mother’s bank
account, which allegation the applicant denies. It was not enough for
the applicant
to merely deny this allegation. The applicant ought to
have disclosed her mother’s Investec Call Account’s
statements
from 2020 as annexures to her financial disclosure form
referred to above. Failure to fully disclose these statements creates
an
impression that the applicant is hiding assets.
[72]
Fourth, the respondent requested records of the activities of CL. The
applicant should have disclosed
the income derived by CL since 2018
from the sale of both the birds and alcapa. In her founding affidavit
the applicant stated
that during the last season she was only able to
sell one chick for approximately R 215 000.00. There is no proof
of that
transaction that was provided. The actual date and the method
of the transaction were also not provided. If this money was paid
into a bank account, it is not clear which bank account it was paid
into. In this application, no bank statement was provided where
this
money was recorded. This gives credence to the respondent’s
speculation that money was regularly deposited into the
applicant’s
mother’s bank account.
[73]
Equally so and without providing corresponding bank statements to
illustrate these entries, the
applicant stated that the income
received from the business activities of CL was R 101 700.00 in
January 2023, R 21 600
in February 2023, R 243 750.00 in
March 2023, R 245 000.00 in April 2023, R 38 600.00 May
2023, R 115 000.00
in June 2023, and R 193 250.00 in July
2023. In these proceedings, the applicant did not provide bank
statements that indicate
these entries. The respondent also made a
point that there was no indication in the CL bank statement that an
amount of R 243 750.00
was spent in legal fees in March 2023.
The applicant claims that these funds were used for operations needs
of her business and
to also pay her legal fees. There is no breakdown
of how much was utilised for the payment of fees. Surely, the
respondent cannot
be expected to reimburse the applicant through Rule
43(6) for the money that she used from her business to pay her legal
fees.
This is not part of the debt that the applicant alleges she
incurred from family and friends. Since part of this money was used
to pay legal fees, that portion ought to have been quantified to
deduct it from what the applicant claims she owes her legal
representatives.
[74]
The breakdown of the amount that may have been used to pay the legal
fees is provided by the
respondent in his answering affidavit. The
respondent seems to accept that a total of R 480 000.00 was paid
to the applicant’s
attorneys by CL. While accepting that a
combined amount of R 700 000.00 was also paid to the applicant’s
attorneys,
he disputes that this amount was due to loans from the
applicant’s mother and friends, by referring to the sources of
this
amount as ‘purported loans’. Since I could not
locate invoices and bank statements which indicate how these monies
were paid to the applicant’s attorneys, I am also sceptical
that there were loans. I note that the applicant’s mother
deposed to a confirmatory affidavit. In my view this confirmatory
affidavit does not assist the applicant in light of the concerns
highlighted above regarding the Investec Call Account statements. I
think full disclosure of these statements were important in
this
application. The applicant’s friends who are alleged to have
advanced loans to the applicant neither deposed to confirmatory
affidavits nor provided bank statements recording the money lent to
the applicant.
[75]
The respondent also noted that in two financial statements of ACC for
2022 and 2023, it was indicated
that amounts of R 323 181.00 and
R 365 927 were used to pay the applicant’s legal fees even
though these entries
cannot be found in ACC’s bank statements.
The applicant does not deal with this contention in her
supplementary affidavit.
Surely the respondent cannot be expected to
reimburse the applicant for these amounts because they were not part
of any loan taken
from anyone. It is thus, surprising that they were
not included in the computation of the amounts paid to the
applicant’s
legal representations. Failure to include these
amounts exaggerated the alleged loan amounts that the applicant
argues were derived
from her mother and friends.
[76]
In her supplementary affidavit, the applicant attached a report
compiled by what the applicant
referred to as an ‘expert’.
This report appears to have been procured to counter the respondent’s
allegation
that the applicant failed to make full and frank
disclosure of her financial position. This record is intended to deal
with the
applicant’s income. I found it very strange that the
applicant would go to the extent of procuring a report rather than
simply
providing the required bank account statements of or any
acceptable proof from the people that she claims advanced her loans.
This
report is problematic in many respects. First, it is not clear
what qualifies the person who compiled it as an ‘expert’.
Secondly, it is not clear from the report what is the expertise of
this ‘expert’.
[77]
It is not clear whether it was brought to the attention of this
expert that the respondent was
interested in establishing the
applicant’s income from 2018. It does not appear that this
expert was informed further that
the respondent was particularly
interested in the breeding records of the exotic birds and alpaca
business. The respondent sought
to be provided the record of the sale
transactions that occurred since 2018 with relevant dates. One would
have expected that this
report would have included how payment was
made and details of where the money that was received ended.
[78]
Instead, in compiling this report, the ‘expert’ relied on
limited documentation,
information, and explanations obtained from
the applicant. Most importantly, the ‘expert’ states in
the report that
he relied on these ‘…
without
independent verification and without performing audit procedures that
would enable me to express an opinion on the information
included
therein albeit that I determine such to be reasonable in the
circumstances in which such was received’
. The ‘expert’
further stated that ‘…
[r]eliance is placed on fair
representations made by parties involved, and in most cases accepted
without procedures to verify such
representation’
.
[79]
Surely, the court cannot be expected to rely on such a report where
the so-called expert admits
upfront that what is contained in his
report is not verified. It is concerning that while the ‘expert’
indicates that
he was provided the applicant’s mother’s
Investec Call Account, he did not indicate when this account was
opened. It
is not clear from the report whether the expert requested
and was furnished with the bank statements of this account to verify
some of the transactions performed therein. In my view, this report
does not indicate the applicant’s income. It strengthens
the
view that the applicant did not make a full and frank disclosure.
[80]
Finally, since the applicant claims that she has spent an amount of R
2 218 924.26 on her attorneys and
she is liable to repay
loans of about R 2 546 921.40, does this mean that the
applicant paid her attorneys exclusively
from loans received from her
friends and mother? This appears to be contrary to the claim that
part of the proceeds of CL in 2023
were used to pay for her legal
fees. Most worryingly, there are no records of the sale activities
and income earned by CL from
2018. Notwithstanding the Covid-19
challenges that none of the parties raised, it is highly unlikely
that a business that was able
to derive R 958 900.00 income in
2023, was not able to make any money in the previous years, from
which the applicant could
comfortably pay her legal fees. I am
inclined to agree with the respondent that no evidence demonstrates
that the applicant genuinely
borrowed money from her mother and
friends.
[81]
In my view, the evidence before the court points to the fact that the
applicant was and can pay
for her legal fees from her business
operations. In fairness, it is also adequate to assess whether the
respondent made a full
and frank disclosure. In these proceedings,
the applicant attached a financial disclosure form that was certified
on 8 May 2023.
In this form, the respondent started by indicating
that he is an employee at M Company, where he is the sole director
and shareholder.
He stated that he has three personal bank accounts
with a collective balance of R 1 517 522.00.
[82]
The respondent also disclosed that he has an investment with Stanlib
Unit Trust worth R 1 694 210.00
and personal belongings
worth R 17 500.00. He valued his liabilities to R 331 616.29
and her shareholding in M Company
to R 1 155 019.00. The
respondent also noted on his financial disclosure form that the
applicant unlawfully took R 80 000.00
from him. In this form,
the respondent further stated that he earns a net salary of R 324 970
and indicated that it will increase
to R 371 964,00 in the next
twelve months. Further, his personal monthly expenses amount to R
38 142.00. He further indicated
that his financial interest in
the immovable property owned by ACC is R 6 760 342.00.
[83]
While the respondent questioned the way the applicant paid her legal
fees, he did not provide
information relating to how he is financing
his legal fees on the alleged annual net salary of R 324 970.00.
It is not clear
whether he is paying for these fees himself or
through M Company. The applicant stated that this amount is not
representative of
the respondent’s total income. In support of
this allegation, the applicant provided a spreadsheet that indicates
that the
respondent received a total of R 9 889 116.00 in
both his personal bank accounts that that held by M Company.
[84]
While this amount may be exaggerated because the respondent moves
money between different accounts,
it cannot be denied that
substantial income was derived by M Company. In my view, it is not
accurate to conclude that the respondent’s
annual income is R
324 970.00. The respondent is a sole director and shareholder of M
Company. He decides how the money made by
this company is spent. It
is unlikely that from all the income made by this company, the
respondent only derives a salary since
he alleges that it is this
company that also earns a commission. In this respect, the respondent
also did not fully and frankly
disclose his financial position.
[85]
Nonetheless, some of the amounts that the applicant claimed were not
disclosed are reflected
on some of the bank statements that the
respondent provided. It is unnecessary to itemise these amounts. It
suffices to mention
that the evidence before the court makes it clear
that the respondent’s M Company is in a much better financial
position
than the applicant’s CL. However, this does not mean
that the respondent is obliged to pay for the applicant’s past
legal fees that have clearly been settled through the Investec Call
Account which contained funds from CL.
iii)
Pending matrimonial disputes
[86]
Rule 43 is titled ‘interim relief in matrimonial matters’.
In my view, there can
be no confusion as to what types of matters
warrant the court’s attention based on Rule 43. This title
clearly indicates
that there should be a main matrimonial action or
application and any party to such proceedings may approach the court
to be granted
interim relief pending the finalisation of the main
matrimonial application. It follows therefore that the interim matter
must
also be of a matrimonial nature. In other words, this should be
a matrimonial issue that cannot await the finalisation of the main
action and the court is empowered to provide a provisional order. In
simple terms, this must be an interlocutory application to
the main
matrimonial action or application.
[87]
As was stated in
Gunston
v Gunston
,
[40]
I agree that Rule 43 in
its entirety relates to provisional orders that are made in
connection with pending matrimonial matters.
It follows therefore
that the costs envisaged in Rule 43(1)(b) and Rule 43(6) relate only
to matrimonial actions or applications.
Rule 43 (1)(b) clearly
requires the court to order contributions to costs for matrimonial
actions that are either pending or about
to be instituted. This in my
view includes all the interlocutory applications that are matrimonial
in nature that arise from the
main action or application.
[88]
Interlocutory applications are usually about to be instituted or
pending. In my view, the court
cannot order contribution or further
contribution in terms of Rule 43(1)(b) and Rule 43(6) for any other
form of action or application
that does not fall within the
description provided for in Rules 43(1)(b). The costs relating to the
applicant’s application
for further contribution can be granted
under Rule 43. However, I doubt that the position is the same
concerning the loan action
and eviction action that was instituted by
ACC against the respondent. The latter two cases are not matrimonial
by their very nature.
[89]
The loan action may be pending but it is not matrimonial by its
nature. This is a dispute between
a juristic person and the
respondent. Similarly, the eviction matter may not be pending but it
was also a dispute between a juristic
person and the respondent. The
respondent cannot be held liable to pay the legal costs associated
with these applications because,
in terms of Rule 43, these matters
are not matrimonial matters. The legal costs that ACC incurred
concerning the eviction matter
and will incur in respect of the loan
action cannot be included in the costs that should form the basis of
the required further
contribution. These matters are simply brought
against the respondent by ACC as a juristic person and not the
applicant.
[90]
The applicant did not separate the amounts that have been incurred or
will be incurred in these
two matters by ACC from the costs that she
personally has or will incur in respect of the legal costs relating
to the pending and
or to be instituted matrimonial matters. The
respondent does not have a duty to reimburse the applicant for any
money that she
may have spent in pursuing ACC’s claims against
nim.
iv)
Amendments Costs
[91]
In
terms of Rule 28(1) of the Uniform Rules of Court, any party can
amend their pleadings by notifying their opponent of their intention
to amend. If there is no objection to the amendment from the opponent
within ten days, the amendment will be effected.
[41]
Rule 28(9) of the Uniform Rules of Court clearly states that ‘
[a]
party giving notice of amendment in terms of subrule (1) shall,
unless the court otherwise directs, be liable for the costs
thereby
occasioned to any other party’
.
Generally, the party seeking to amend the pleadings will be ordered
to pay the costs of the amendment unless the other party objects
and
such objection is unmeritorious, frivolous, or vexatious.
[42]
In my view, this rule applies the same in matrimonial matters as it
would in all other matters.
[92]
Once lawyers have consulted with their clients, it can be assumed
that they understand their
clients’ cases to such an extent
that they will adequately draft the relevant documents that will
assist their clients in
getting their desired outcomes. Should such
lawyers realize potholes in their clients’ cases along the way,
surely their
clients’ opponents cannot be expected to foot the
bill for any amendments that are brought, unless of course such
opponents
unreasonably oppose the contemplated amendments. In my
view, there is no justification to burden the respondent with the
costs
of amendments in this matter.
v) Litigating at
the same level
[93]
It cannot be denied that in a society such as South Africa with
established income disparities
and discrimination between men and
women within marriages, the requirement to demonstrate a material
change in circumstances is
gendered by its very nature and courts
should protect financially vulnerable women when so required.
[43]
The gender realities must be confronted through constitutional ideals
as was the case in both
Cary
v Cary
and
AF
v MF.
It
cannot be doubted that financially weaker spouses are usually women
who are confronted by financially stronger spouses, usually
men, who
use their financial muscle to financially disadvantage them in
matrimonial litigation.
[44]
It
is equally true that historically the ability of women to generate
their own income is generally reduced by their commitment
and service
to their marriage where they bear more responsibility for housework
and caring labour.
[45]
[94]
However, in recent times and with the advancement of women in various
workplaces and sectors,
there are exceptions to the general rule that
necessitate courts reflecting on the actual woman before the court to
assess whether
her financial circumstances fit into the general
position. The facts of this case appear to be totally different from
those in
cases like
Cary v Cary
, and
AF v AF
. The
applicant in this case does not seem to be as economically
disadvantaged as the women in these cases, which in my view, is
an
important factor that must be taken into account. Failure to do so
will lead to the general disadvantage that women experience
being
used to benefit women who are not as economically disadvantaged. In
my view, this is something that ought to be avoided.
[95]
In
Cary
v Cary
,
the parties agreed during the marriage that the wife should devote
herself to the full-time care of their children. The wife was
unemployed with no income.
[46]
In
AF
v MF
,
the husband was the joint chief executive officer of a family
business, earning a salary of R 7 000 000.00 per annum.
In
addition to this salary, he received
ad
hoc
payments
and substantial distributions from a family trust of which he was a
beneficiary. His net asset was R 20 000 000.
While the wife
had a degree, she stopped working when she gave birth to the parties’
first child. She later obtained a part-time
job when she separated
from her husband where she earned a monthly salary of R
17 677.00.
[47]
[96]
These and other similarly situated women must be protected by
ensuring that they not only receive
what is due to them from their
marriages on divorce but are also empowered to litigate against their
wealthy husbands at the same
level through adequate contribution or
where the need arises further contribution to their legal costs.
[97]
While there is a tendency, and for good reason, to generalise the
vulnerability experienced by
women during divorce proceedings, there
are exceptions to this norm which courts are also constitutionally
obliged not to turn
a blind eye. In my view, the applicant in this
case fits into that exception and ought not to be considered in terms
of the general
vulnerability described above. The applicant is a
businesswoman who is a sole member of a trading close corporation and
a sole
director of a trading company. Both these businesses generate
money from which the applicant derives income that can be used to
pay
for her legal fees. The applicant failed to fully and frankly
disclose her income to the court to demonstrate her need for
further
contribution.
E
CONCLUSION
[98]
Both parties are represented by reputable firms of attorneys with
competent lawyers as well as
senior counsel on both sides with
exceptional family law experience and expertise. Both teams of
lawyers are ready to represent
the parties in all these proceedings
including the divorce trial. There is no indication that any of these
lawyers would withdraw
their services in this case.
[99]
The applicant’s failure to provide a detailed breakdown of the
activities of CL and how
monies received from these activities are
handled gives an impression that there was an effort on her part to
conceal the actual
income made by this company. The income that the
applicant disclosed for 2023, clearly illustrates that this is a
profitable company,
the proceeds of which can be used to assist her
with the payment of her legal costs.
[100]
Concerning the costs of this application, the parties have been
litigating extensively against each other. I am
of the view that
there is no need to order the applicant to pay the costs of this
application and that each party should pay his
or her own costs.
ORDER
[101] In the
results, I make the following order:
1.
The applicant’s application is dismissed.
2.
Each party to pay his or her own costs.
C MARUMOAGAE
ACTING JUDGE OF THE
HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION
PRETORIA
Counsel
for the applicant:
Adv
LC Haupt SC
Instructed
by:
Clarks
Attorneys
Counsel
for the respondent:
Adv
ML Haskins SC
Instructed
by:
Couzyn
Hertzog & Horak Incorporated
Date
of the hearing:
26
October 2023
Date
of judgment:
12
January 2024
[1]
See
S v
S and Another
2019
(8) BCLR 989
(CC);
2019 (6) SA 1
(CC) para 56, where the
Constitutional Court held that ‘… it is incumbent on
High Courts to hear on the urgent roll
any matter adversely
affecting the best interests of the child’.
[2]
See generally
Van
Rippin v Van Rippin
1949
(4) SALR 634
(C) and
Taute
v Taute
1974
(2) SA 675 (E) 676.
[3]
Chamani
v Chamani
1979
(4) SA 804
(W) at 806F–H
[4]
Nicholson
v Nicholson
1998
(1) 48 (WLD) at 50
[5]
AF v MF
[2020] 1 All SA 79
(WCC)
para 28
[6]
Van
Rippen v Van Rippen
1949 (4) SA 634 (C)
639
[7]
See
Du
Toit v Du Toit
[2019]
JOL 45336
(GP) para 31 where it was stated that in terms of ‘…
Rule 43(6) in relation to costs contribution, a party can approach
court if the contribution towards costs proves to be inadequate’.
[8]
[1988] 4 All SA 372 (C) 374.
[9]
[1999] JOL 5300
(C) para 6.
[10]
[1982] 4 All SA 639 (O) 639.
[11]
(97132/16) [2021] ZAGPPHC 60 (3 February 2021) para 16.
[12]
P.E.O.I
v W.A.H
para
14.
[13]
(3568/2005)
[2005] ZAFSHC 105
(16 September 2005).
[14]
(3568/2005)
[2005] ZAFSHC 105
(16 September 2005) para 7. The
judgment is written in Afrikaans and the original text reads: ‘
Dit
is gevolg
lik
duidelik dat ‘n aansoek vir ‘n verdere bydrae tot koste
nie daarvan afhanklik is dat veranderde omstandighede
aangetoon moet
word nie. Dit volg na my oordeel dat by aansoek om ‘n verdere
bydrae tot koste ingevolge Hofreël 43(6)
in essensie dieselfde
toets dan by ‘n oorspronklike aansoek van toepassing is’.
[15]
2019 (8) BCLR 989
(CC);
2019 (6) SA 1
(CC) para 56.
[16]
S v S
and Another
para
58.
[17]
Rule 43(1) of the Uniform Rules of Court.
[18]
[1976] 1 All SA 19
(W) 22. See also
Zaphiriou
v.
Zaphiriou
,
1967 (1) SA 342
(W) 345 where it was held that ‘Rule 43 was
merely designed to provide a streamlined and inexpensive procedure
for procuring
the same interim relief in matrimonial actions as was
previously available under the common law in regard to maintenance
and
costs . . .’.
[19]
(1928) 49 NPD 412.
[20]
Ibid at 413.
[21]
Ibid.
[22]
[1998] JOL 1325 (W)
[23]
Ibid at 8. The court tried to justify its approach by stating that
I[i]t
is not the practice in Rule 43 applications to give detailed reasons
for arriving at the quantum of relief granted to an
applicant’.
This approach was also followed in
Senior
v Senior
[1999]
JOL 4779 (W) 23.
[24]
[2002] 2 All SA 193
(T).
[25]
[2002] 2 All SA 193 (T) 196.
[26]
1999 (8) BCLR 877 (C).
[27]
Ibid at 881.
[28]
Ibid at 882.
[29]
Ibid.
[30]
(3568/2005)
[2005] ZAFSHC 105
(16 September 2005).
[31]
Ibid at para 8.
[32]
2019 (6) SA 422
(WCC);
[2020] 1 All SA 79
(WCC) para 39
[33]
Ibid at para 41
[34]
2019 (6) SA 422
(WCC);
[2020] 1 All SA 79
(WCC) para 42.
[35]
[2023] 1 All SA 413
(GJ) .
[36]
Ibid at para 96, the court further held that ‘AF v MF
noticeably departed from the status quo, and embarked on a more
constitutionally compliant path. And it is plain from the passages
above that the court in AF v MF spelled out the proper approach
to
the application of rule 43: rule 43 must be interpreted and applied
through the prism of the Constitution, which requires
the court to
interpret the rule in a manner that accords with the fundamental
constitutional tenet of equality’.
[37]
A.V.R v
J.V.R and Others
(4366/2016)
[2020] ZAWCHC 134
(23 October 2020) para 2.
[38]
A.L.G v
L.L.G
(9207/2020)
[2020] ZAWCHC 83
(25 August 2020) para 19. See also
KF
v MF
[2023]
JOL 61240
(WCC) para 45.
[39]
See generally
RTS
v TTS
[2017]
JOL 38763 (GJ) 23.
[40]
[1976] 1 All SA 19
(W) 22. See also
Zaphiriou
v.
Zaphiriou
,
1967 (1) SA 342
(W) 345 where it was held that ‘Rule 43 was
merely designed to provide a streamlined and inexpensive procedure
for procuring
the same interim relief in matrimonial actions as was
previously available under the common law in regard to maintenance
and
costs . . .’.
[41]
Rule 28(2) of the Unform Rules of Court.
[42]
See
Dimension
Data Middle East and Africa (PTY) Limited and Others v Ngcaba: In
re: Ngcaba v Dimension Data Middle East and Africa
(PTY) Limited and
Others
(2016/22545)
[2022] ZAGPJHC 993 (6 December 2022) para 41.
[43]
See generally
EB
(born S) v ER (born B) and Others; KG v Minister of Home Affairs and
Others
(CCT
364/21; CCT 158/22)
[2023] ZACC 32
(10 October 2023) para 121
accepted that ‘… there is a large body of scholarship
showing that apartheid not only
institutionalised racial
discrimination but also hinged on and entrenched gender inequality.
A 2016 study reported that
South African women are significantly
more likely to be “multidimensionally poor” (that is,
lacking adequate access
to nutrition, health, education and basic
services) than men, with this burden of poverty falling more
heavily on black
women than white women. Women in South Africa are
typically less securely employed than men, and employed women are
concentrated
in sectors which are typically less advantageous when
it comes to remuneration and terms of employment – retail,
catering
and accommodation. South Africa has among the highest
mean and median gender income gaps, and the disparity increases
with age’.
[44]
See
H v
H
[2023]
1 All SA 413
(GJ);
2023 (6) SA 279
(GJ) para 73, where it is
correctly stated that ‘[m]ost often, these applications are
brought by economically disadvantaged
spouses who are unable to meet
the costs of litigation or who are forced to enter debt to pay hefty
legal fees’.
[45]
G v
Minister of Home Affairs and Others
[2022]
3 All SA 58
(GP);
2022 (5) SA 478
(GP) para 13. This decision was
subsequently confirmed by the Constitutional Court.
[46]
[1999] JOL 4575 (C) 2
[47]
2019 (6) SA 422
(WCC);
[2020] 1 All SA 79
(WCC) para 8 & 9.
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