Case Law[2024] ZAGPPHC 45South Africa
Road Accident Fund v Ruele and Others (19982/2016) [2024] ZAGPPHC 45; [2024] 2 All SA 199 (GP) (19 January 2024)
High Court of South Africa (Gauteng Division, Pretoria)
19 January 2024
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Road Accident Fund v Ruele and Others (19982/2016) [2024] ZAGPPHC 45; [2024] 2 All SA 199 (GP) (19 January 2024)
Road Accident Fund v Ruele and Others (19982/2016) [2024] ZAGPPHC 45; [2024] 2 All SA 199 (GP) (19 January 2024)
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sino date 19 January 2024
REPUBLIC
OF SOUTH AFRICA
THE
HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NR: 19982/2016
(1)
REPORTABLE:
YES/
NO
(2)
OF INTEREST TO OTHER JUDGES YES/
NO
(3)
REVISED:
NO
DATE:
19 January 2024
SIGNATURE
In
the matter between:
ROAD
ACCIDENT FUND
APPLICANT
and
LISBETH
RUELE
FIRST
RESPONDENT
MALEPE ATTORNEYS
SECOND
RESPONDENT
SHERIFF PRETORIA
EAST
THIRD RESPONDENT
THE LEGAL PRACTICE
COUNCIL
FOURTH 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 19 January 2024.
JUDGMENT
MARUMOAGAE
AJ
A
INTRODUCTION
[1]
This is an application for the rescission of the default judgment
granted by Basson
J on 15 February 2021 against the applicant in its
absence. The rescission application is brought in terms of Rule
31(6)(a) of
the Uniform Rules of Court which gives effect to section
23A of the Superior Courts Act.
[1]
Alternatively, the applicant relies on the common law grounds for
rescission.
[2]
This application is opposed and there is only one answering affidavit
before the court
which appears to have been filed on behalf of the
first respondent. This answering affidavit is accompanied by a
confirmatory affidavit
deposed to by the attorney who practices as
such at the second respondent. However, there is no indication
whether this affidavit
is also submitted on behalf of the second
respondent.
[3]
From the papers that the parties submitted to the court, it is clear
that the first
respondent is not represented by the second
respondent, a firm of attorneys that represented her when she
successfully brought
a claim against the applicant. The first
respondent is represented by Malatji S Legal Practitioners. However,
during the oral argument,
Mr Malepe who is an attorney at the second
respondent argued the matter assisted by Mr Malatji who also made
oral submissions.
The third and fourth respondents did not
participate in these proceedings and there is no order sought against
them. For convenience's
sake, I shall refer to Mr Malepe as the
second respondent throughout the judgment even though the actual
second respondent is his
law firm.
[4]
The issue that calls for determination is whether there was an
agreement concluded
between the applicant and the first respondent
through the second respondent to retry the first respondent’s
claim for loss
of earnings, which agreement forms the basis of the
applicant’s application for rescission. If the court finds that
such
an agreement was concluded, it must then determine whether a
case for rescission has been made and whether the applicant was
obliged
to make an application for condonation in this matter.
B
BACKGROUND
[5]
The first respondent was involved in a motor vehicle accident where
she sustained
injuries. She instituted action against the applicant
for general damages, past medical expenses, future medical expenses,
and
loss of earnings. The applicant conceded 100% liability to pay
the first respondent's proven heads of damages. The issue of general
damages was also settled.
[6]
The applicant was initially represented by one of the firms of
attorneys that was
part of its panel of attorneys. When the applicant
dissolved its panel of attorneys, the mandate of this firm of
attorneys was
terminated on 30 May 2020. Initially, the first and
second respondents engaged the applicant through this firm of
attorneys where
all court processes were served.
[7]
On 15 February 2021, Basson J awarded the first respondent
compensation in the amount
of R 5 368 308.00 for loss of
earnings. This order was granted in the applicant’s absence.
The applicant did not
pay this amount to the first respondent. On 26
August 2021, the warrant of execution was issued against the
applicant and duly
served on the applicant by the third respondent.
The applicant reassessed the first respondent’s total loss of
earnings and
determined that only an amount of R 2 156 050.00
was due to her. This amount was subsequently paid to the second
respondent
on 21 September 2021.
[8]
The applicant launched an urgent application to suspend the operation
of the warrant
of execution and execution of the order granted by
Basson J. The applicant also sought an order interdicting the third
respondent
from proceeding with the execution against its movable
assets. On 30 September 2021, the second respondent obtained a second
warrant
of execution against the applicant.
[9]
The applicant’s urgent application was heard on 6 October 2021
by Davis J who
granted an order that interdicted the second
respondent from proceeding with the execution of the warrants of
execution against
the applicant’s movable assets. In terms of
this order, the warrants of execution granted in favour of the first
respondent
were suspended pending the institution of a rescission
application by the applicant of Basson J’s order within 20 days
of
Davis J’s order.
[10]
On 7 October 2021, the second respondent wrote an email to the
applicant’s attorneys wherein
it was proposed that the matter
should be retried on the condition that the applicant appoints its
own experts. Part of this email
read:
‘
Please
notice that we propose that this matter be retried. On condition that
you appoint your own experts, IP Actuary and others
if necessary.
Then you await for us to supply you with additional medical records
of the claimant. Further, the Plaintiff’s
attorney will appoint
new orthopaedic and physiotherapist. Then do the joint minutes and
restart negotiations. If not possible
of being settled parties, then
go to court to determine final settlement’.
[11]
On 2 November 2021, the second respondent requested the applicant to
pay the balance of the outstanding
amount of awarded damages.
On 22 June 2023, the applicant was notified that the sheriff would
execute the warrant on 25 July
2023. On 6 July 2023, the applicant
instituted an application for rescission, several months after Davis
J’s order. The applicant
also lodged an urgent application to
stay the operation and execution of Basson J’s order, which was
heard on 18 July 2023
by Labuschagne AJ. On 21 July 2023, Labuschagne
AJ granted an order suspending the operation and execution of Basson
J’s
order, pending the finalisation of the applicant’s
rescission application.
C
THE PARTIES CONTENTIONS
i)
Applicant’s
version
[12]
According to the applicant, this matter was first enrolled for trial
on 6 August 2018. On this
date, the applicant conceded the merits and
agreed to pay 100% of the first respondent’s proven damages.
All other heads
of damages were settled, and the only outstanding
issue was the determination of the quantum of the loss of earnings.
The second
respondent approached this court to set the matter down.
On 21 May 2019, the applicant was served with a notice of set down
that
indicated that the matter would be heard on 30 November 2020. On
23 October 2020, a joint submission in support of certification
and/or settlement/consent draft order was filed. This document
indicated that the matter was ready to be heard on 30 November 2020.
[13]
According to the applicant, on 21 May 2019, the first respondent
delivered a further notice of
set down to the applicant’s
attorneys of record at the time, where the applicant was notified
that the matter was set down
for 15 February 2021. The applicant
contends that it is not certain what transpired on 30 November 2020.
The matter was heard on
15 February 2021 on an unopposed basis and
the amount the first respondent claimed for loss of earnings was
awarded by Basson J.
[14]
The applicant is of the view that the first respondent is not
entitled to the amount of compensation
awarded by Basson J. It
submits that it reassessed the first respondent’s total loss of
earnings and determined that the
amount that the first respondent
should receive is R 2 156 050.00. This amount was arrived
at with the assistance of
actuarial valuation which was obtained on
02 September 2021. Based on this reassessment, the applicant paid
this amount into the
second respondent’s bank account.
[15]
The applicant contends that after efforts to enforce the order
granted by Basson J and two urgent
applications it successfully
brought, the second respondent proposed that the matter should be
retried. According to the applicant,
this proposal was accepted. In
this proposal, the second respondent required the applicant to
appoint experts, if necessary, which
the applicant claims it did not
find necessary to do. Further, the first respondent failed to inform
the applicant that, according
to her, there was no agreement or that
the applicant had breached the agreement because of its failure to
brief experts. Further,
to demonstrate that an agreement was reached,
the first respondent waited for a period of eight months from
November 2022 before
executing her warrant.
[16]
The applicant requested the second respondent to file a notice in
terms of section 42 to abandon
the order granted by Basson J. The
applicant contends further that because of the agreement reached by
the parties to retry the
matter after the suspension of the default
judgment and the stay of the warrant of execution, it did not proceed
to launch its
rescission judgment. First, on 21 July 2023, Davis J
ordered that the warrant of execution be stayed and the applicant
launch its
rescission application within 20 days of that order.
Secondly, Labuschagne J on 6 October 2023 ordered that warrants of
execution
should not be enforced pending the finalisation of the
applicant’s rescission application. According to the applicant,
Labuschagne
J also found that there was an agreement concluded
between the applicant and the first respondent.
[17]
The applicant contends further that the first respondent failed to
enrol the matter for purposes
of trial. The applicant is pursuing
this rescission application on the strength of its agreement with the
second respondent that
the matter will be retried. The applicant
argues that the proposal made by the second respondent for the
retrial is tantamount
to consenting to the rescission of the default
judgment by agreement. The applicant submitted that it accepted this
proposal.
[18]
According to the applicant, it was not in wilful default because its
attorney of record at the
time was served with two different notices
of set down with two different trial dates on the same day. The first
respondent’s
counsel at the time also confirmed 30 November
2020 as the date of trial to the court. The applicant contends
further that it did
not know that the matter was proceeding to trial
on 15 February 2021 due to the confusion and uncertainty created.
[19]
The applicant claims that it has a
bona fide
defence. Further,
the first respondent failed to serve a notice of set down upon the
applicant or its representatives. The applicant
also argues that it
is not clear why the second respondent would brief counsel to prepare
a practice note and joint submission
for 30 November 2020, when they
knew on 21 May 2019 that the matter was not enrolled for 30 November
2020.
[20]
The applicant contends further that the first respondent failed to
inform the applicant that
the date of set down was 15 February 2021.
The applicant alleges that it would seem that the first respondent
and/or the second
respondent copied the acknowledgment of receipt by
the applicant’s erstwhile attorneys of record from the notice
of set down
for 30 November 2020 to create an impression that the
notice that set the matter down for 15 February 2021 was duly and
properly
served. Further, the first and/or second respondent
unlawfully and inappropriately obtained a trial date, an allocation
for a hearing,
and a judgment against the applicant. To ‘support’
this allegation, the applicant stated that:
[20.1] it would seem that
the stamp and signature on the second notice of set down were
uplifted and copied from the first notice
of set down;
[20.2] the last
page of each notice of set down, containing the signatures of the
applicant’s attorney of record at
the time, looks decidedly
like a copy. This is an extremely serious allegation which I shall
return to below.
[21]
The applicant contends further that it is highly improbable that the
second respondent would
have obtained two different trial dates.
Further, the Registrar would not have enrolled the matter for another
date after providing
30 November 2020 as the date of the trial. It
was argued further that once the first respondent had been allocated
30 November
2021 as the date of the trial, there was no need to
acquire another trial date on the same day. Further, this
demonstrates that
the applicant was not informed or properly informed
of the trial date of 15 February 2021.
[22]
As part of the defence that it claims it has, the applicant submits
that the sum of the first
respondent’s loss of earnings awarded
by Basson J is not supported by the facts. According to the
applicant, the educational
psychologist used by the first respondent
concluded that the first respondent would have passed Grade 12 and
obtained a higher
certificate. The applicant submits that the
findings of this expert do not support the amount awarded by Basson
J.
[23]
Further, the quantum court order is vague, ambiguous, patently
erroneous, and in conflict with
the facts of the first respondent’s
case. The applicant also states that the quantum court order is
contradictory in certain
respects. On the one hand, it orders the
creation of a trust because the first respondent cannot manage her
own financial affairs.
On the other hand, it directs the applicant to
pay a portion of the award into an account nominated by the first
respondent.
[24]
The applicant argues that the formulation of Basson J’s order
is prejudicial to the first
respondent. Further, there is a
discrepancy between the amount claimed in the particulars of the
claim, which is R 5 020 000.00,
and the amount awarded by
Basson J, which is R 5 368 308.00, and that necessary
amendments were not effected. The applicant
contends that the first
respondent did not serve any notice to amend her particulars of claim
in terms of Rule 28 of the Uniform
Rules of Court. Further, amended
pages purporting to amend the first respondent’s claim are
defective and fatally flawed.
[25]
The applicant noted that the first respondent failed to reply to its
founding affidavit
ad seriatim
and also did not indicate that
any specific allegation not responded to should be regarded as
denied. As such, any specific allegation
not addressed in the
answering affidavit should be regarded as being admitted. According
to the applicant, this application was
not launched initially because
the parties had reached an agreement to have the first respondent’s
claim for loss of earnings
retried.
[26]
The applicant also pointed out that the first respondent when
replying to the concerns raised
regarding the notices of set down,
pointed out that she was unable to proceed with the matter on 30
November 2020 because the compliance
affidavit was not timeously
uploaded on caselines. This led to the first respondent to forfeit
the trial date and apply for another
date. According to the
applicant, the requirement for the compliance affidavit was not a
requirement on 21 May 2019. It only became
a requirement on 18
September 2020. Based on this, the applicant submits that the first
respondent’s allegation is false.
As such the matter was
improperly set down for 15 February 2021.
The
applicant maintains that there was no need to make an application for
condonation in this matter.
ii)
First Respondent’s version
[27]
A point
in limine
was raised from the bar on behalf of the
first respondent. This point was not raised in her answering
affidavit. It was argued
that the court does not have jurisdiction to
entertain this application because the applicant did not make an
application to be
condoned to file its rescission application outside
the 20 days from 15 February 2021 or soon after it became aware of
Basson J’s
order. According to the first respondent, the
applicant’s application must be dismissed on this basis alone.
[28]
In her answering affidavit, the first respondent states that she
instructed Adv S Malatji to
represent her in all post Basson J’s
order litigation. The first respondent alleges that the applicant
terminated its panel
of attorneys without putting in place sufficient
measures to cater to the ongoing litigations that the firms of
attorneys that
were in its panel handled. The mandate of the firm of
attorneys that represented the applicant against the first respondent
was
terminated. However, the second respondent served a notice of set
down on that firm before the termination of its mandate.
[29]
On 21 May 2019, the second respondent applied for a trial date and
was allocated 15 February
2021. When the second respondent went to
serve the notice of set down, he erroneously served a document that
depicted an incorrect
date of 30 November 2020. The first respondent
also referred the court to the roll of 30 November 2020 which
indicates that the
matter between the parties was not on the roll.
When the second respondent arrived at his office, he noted the
mistake and immediately
prepared a notice of withdrawal to withdraw
the erroneous notice of set down. He went to the firm of attorneys
that was representing
the applicant at the time to serve both the
notice of withdrawal and the ‘revised’ notice of set down
which indicated
the date of trial to be 15 February 2019.
[30]
The first respondent alleges that the second respondent provided one
of the applicant’s
claim handlers access to court online, which
is a demonstration of her intention to notify the applicant of the
proceedings in
the matter and that the prosecution of the action was
above board. The applicant elected not to obtain or file any expert
report.
The only evidence before the court was that provided by the
first respondent. On the strength of this evidence, Basson J granted
an order in favour of the first respondent. The applicant did not
attend the proceedings. Basson J’s order was emailed to
the
claims handler on 16 February 2021.
[31]
Failure to make payment led to the first respondent obtaining a writ
of execution against the
applicant. The applicant successfully
applied to have this writ stayed by an urgent court. According to the
first respondent, this
application was fatally defective on the basis
that the application was launched on 20 September 2021 but the
founding affidavit
was commissioned on 21 September 2021.
[32]
The second respondent proposed a retrial on 7 October 2021. The
applicant failed to communicate
whether the proposal was accepted or
not. Instead, the first respondent informed the second respondent to
file a notice to abandon
Basson J’s order. According to the
first respondent, this was a counterproposal and not an acceptance to
have the matter
retried. The first respondent alleges that in the
absence of an agreement between the parties, the position before the
proposal
for a retrial was made still stands. A retrial was proposed
on the condition that the applicant will appoint its own experts.
This
proposal was neither explicitly nor tacitly accepted. In its
request for Basson J’s order to be abandoned, the applicant did
not indicate whether the condition stated in the proposal was
accepted.
[33]
The second respondent refused to file a notice to abandon Basson J’s
order. The first respondent
contends that if the applicant was under
the impression that the proposal constituted consent to the
rescission application, it
would have set up an appointment and
invited the first respondent for assessment. According to the first
respondent, on 25 November
202, the second respondent indicated to
the applicant’s current attorneys that there was no agreement
between the first respondent
and the applicant.
[34]
It is contended further that the applicant also failed to apply for
rescission of Basson J’s
order within 20 days of Davis J’s
order. Further, while this order allowed the applicant to bring its
rescission application,
it did not excuse it from explaining why it
had not brought such an application within 20 days from 16 February
2021.
[35]
The first respondent contends that the applicant must explain why it
failed to attend court despite
receiving the notice of set down
through its attorneys at the time. Further, there is no merit to the
allegation that the second
respondent copied an acknowledgment of the
erroneous notice of set down. According to the first respondent, the
applicant is out
of time and its attack on the compensation order is
without merit. Further, the applicant failed to appoint its own
experts from
the date the first respondent instituted her action to
the day Basson J granted his order, to quantify each claim.
[36]
The applicant contends further that because the second respondent
served and filed a notice of
withdrawal together with her revised
notice of set down, the applicant was in wilful default. Further, the
applicant does not have
a
bona fide
defence as to why it did
not attend court on 15 February 2021 and its failure to institute its
rescission application within 20
days after being alerted of Basson
J’s order. According to the first respondent, the applicant
cannot criticize the report
of her educational psychologist without
producing a contradictory report. Further, the applicant had ample
opportunity to file
any report before the date of trial by its own
experts. The report of its actuary is dated 2 September 2021, and was
never served
on the second respondent.
[37]
The first respondent contends that the applicant ought to have
applied for the rescission of
Basson J’s order timeously.
Further, the applicant’s attack on Basson J’s order is
without merit because the
applicant has already paid over R
2 000 000.00 into the second respondent’s bank
account. According to the first
respondent, there is no merit to the
applicant’s contention that there is a discrepancy between what
was claimed in the pleadings
and what was ordered because necessary
amendments were effected.
D
APPLICABLE LAW AND ITS DEVELOPMENT
i)
Common law
[38]
Rescission of judgment is a common law remedy that empowers a court
to cancel the order that
was granted against the party that was not
present in court when the order was made on a previous occasion to
allow such a party
to defend/oppose the matter. At common law, the
court could only rescind the judgment when such a party demonstrates
that there
is sufficient cause for the judgment to be rescinded.
[2]
To establish sufficient cause, the party that sought to rescind the
judgment had to first, offer the court a reasonable and acceptable
explanation for its failure to either defend/oppose the matter or
attend in court.
[3]
[39]
Secondly, as the Constitutional Court confirmed in
Barnard
Labuschagne Incorporated v South African Revenue Service and Another,
the
party seeking rescission must also demonstrate ‘…
that
on the merits it has a bona fide defence which prima facie carries
some prospect of success’
.
[4]
In
Chetty
v Law Society, Transvaal,
the Appellate Division (as it then was) held that the application for
rescission runs the risk of being refused if the party against
whom
the order was made fails to meet one of these requirements.
[5]
[40]
When considering whether to rescind any judgment, the court is
exercising its discretion which
must certainly be exercised
judiciously. In
Van Heerden v Bronkhorst
, Molemela JA (as she
then was) emphasised that the
‘
court’s
discretion whether or not to grant rescission of judgment must be
influenced by considerations of justice and fairness,
having regard
to all the facts and circumstances of the particular case’
.
[6]
ii)
Codification
[41]
The law that regulates the rescission of judgments is duly codified
in South Africa. The empowering
statutes that regulate both the
Magistrates Court and the High Court duly empower these courts to
rescind their judgments when
it is justified to do so. In the High
Court, rescission applications are generally brought in terms of
either Rule 42(1)
[7]
or Rule
31(2)(b).
[8]
Unlike in the
former Rule, there are no explicit periods within which to bring
rescission application in terms of the latter Rule.
Nonetheless, it
was held in
Mathebula
and Another v Standard Bank of South Africa Limited and Others,
that:
‘
[i]n
terms of Rule 42(1)(a) of the Uniform Rules of Court an order or
judgement erroneously granted may be rescinded or varied on
application. If the judgment or order was not erroneously granted it
is trite that the applicants must show good cause and must
not have
been in wilful default. They must also have a bona fide defence’.
[9]
iii)
Rescission by consent
[42]
While both the Magistrates Courts and the High Court could rescind
their judgments, initially,
only the Magistrates Court could do so
when the judgment creditor had consented to such an application being
brought by the judgment
debtor. In terms of section 36(1) of the
Magistrates’ Court Act,
[10]
this court may upon application by an affected person rescind any
judgment it has granted. The procedure that must be followed
to
implement the remedy provided for in this section is laid out in Rule
49 of the Magistrates Court Rules. This rule also provides
the
content that must be alleged for the court to exercise its
discretion.
[11]
[43]
Most interestingly, Rule 49(5) of the Magistrates Court Rules makes
provision for the person
in whose favour a default judgment was
granted to consent in writing for that judgment to be rescinded.
Initially, there was no
similar rule in the rules that regulates
proceedings in the High Court. This rule raised several interesting
questions relating
to whether it created a new regime, different from
that created under the common law, to the extent that the person
against whom
a default judgment was granted did not have to comply
with the codified requirements of the common law such as to
demonstrate good
cause for the court to rescind its judgment. In
Venter v Standard Bank of South Africa
, it was held that:
‘
[w]hilst
good cause or good reason is required in the first situation, in
neither the second nor the third situation is good cause
a
requirement. The express wording of Rule 49(4) is quite inconsistent
with the requirement of good cause, insofar as an element
thereof is
the existence of a bona fide defence. From the aforegoing it is
apparent that Rule 49(4) and 49(5) constitute a departure
from the
previous requirement of “good cause” as embodied in Rule
49 prior to its amendment on 13 June 1997 and likewise
constitutes a
departure from the common law’.
[12]
[44]
Following the
Venter
decision, the legislature reacted by
inserting subsection (2) in section 36 of the Magistrates Court Act,
which provides that:
‘
[i]f
a plaintiff in whose favour a default judgment has been granted has
consented in writing that the judgment be rescinded or
varied, a
court may rescind or vary such judgment on application by any person
affected by it’.
[13]
[45]
A different approach was adopted in
RFS Catering Supplies v
Bernard Bigara Enterprises CC,
where it was stated that:
‘
[w]ith
due respect to the learned Judge in Venter's case, I do not agree
that the relevant provisions of the Magistrates' Courts
Rules are not
consonant with the common law. On the contrary, the wide discretion
conferred on the courts in respect of rescinding
judgments,
recognised in Roman-Dutch law and interpreted by our Courts, is amply
sufficient to accommodate this development. It
is also preferable for
the common law to accommodate such a development rather than to
resort to legislation to do so’.
[14]
Further
that
‘
Rule
49(1) retains the requirement of good cause, adding the requirement
of good reason as an alternative, and is clearly intended
to cover
the situation where the application for rescission of judgment is
opposed. This is amplified by Rules 49(2) and 49(3).
Rule 49(4) deals
with the situation where the defendant against whom judgment was
granted does not wish to defend the proceedings
but has satisfied the
judgment within a reasonable time after it came to his knowledge. All
that is required is that the defendant
must show that he or she was
not in wilful default. This does not envisage the consent of the
plaintiff as does Rule 49(5) which
has been analysed above’.
[15]
[46]
This case was followed in
Damon & another v Nedcor Bank Ltd
,
where it was held that
‘
[t]here
is no equivalent of rule 49(5) in the High Court rules of procedure,
but it seems to me that if I am bound by the judgment
in RFS Catering
Supplies to accept that there is no inconsonance between the remedy
which was held to be available in terms of
rule 49(5) and the common
law, I am equally bound to recognise the existence of an equivalent
remedy in this jurisdiction notwithstanding
the absence of any
equivalent rule of court’.
[16]
[46.1]
However, despite following
RFS Catering
Supplies,
the court expressed some
reservations about the correctness of this decision as follows:
‘
I
have considerable reservation about accepting that the judgment
creditor's consent should by itself be determinative of the question.
On the contrary, if the need for relief is established by the
applicants' need not to unreasonably be denied
access
to credit, it is readily conceivable that a more compelling case
might be made out in fairness and justice in a matter where
the
judgment creditor was unwilling, for no good reason, to furnish
written consent of the sort referred to in Magistrate's Court
rule
49(5). It also appears to me that fairness and justice in this
context must entail having regard not only to the interests
of the
applicant for rescission, but also to the economic and societal
functions of accurate debt and credit records in modern
commercial
life. A further consideration must be whether the particular remedy
sought is the appropriate one in the context of
other potentially
available common-law remedies, including remedies against the credit
bureaux. The latter consideration did not
enjoy consideration in RFS
Catering Supplies because of the focus of the enquiry in that matter;
viz whether rule 49(5) was consistent
with the common law’.
[17]
[47]
The full court of the Western Cape Division in
Vilvanathan
& another v Louw NO,
[18]
held that
RFS
Catering Supplies
was wrongly decided. The court reasoned that the well-established
essential requirements of ‘sufficient cause’, reasonable
and acceptable explanation for the default, and
bona
fide
defence which,
prima
facie
,
carries some prospects of success are applicable even to Rule 49(5)
rescission applications. Most significantly, the court held
that
these:
‘…
principles
expounded … are still, of course, binding on any judge of a
Provincial or Local Division: the territory onto which
this Court
ventured in the RFS Catering Supplies case, supra, was therefore not
terra nova, and the court was not at liberty to
depart in that case
from the above-mentioned principles, which had long since been
settled by the Appellate Division and the Supreme
Court of Appeal.
However, it seems to me, with respect, that the judgment in the RFS
Catering Supplies is not compatible with those
principles’.
[19]
[47.1] The court
concluded by stating that:
‘
[a]n
application for rescission brought under rule 31 is doomed to failure
unless the applicant can show "good cause"
or "sufficient
cause", and that means that he must establish, inter alia, that
he has a bona fide defence to the plaintiff's
claim against him. As I
have said, the applicants in the present matter have not even
attempted to satisfy this requirement. Consequently,
in my judgment,
their application must fail on this basis, too’.
[20]
[48]
The lack of a similar provision in both the Superior Courts Act and
the Uniform Rules of Court
that empowered various divisions of the
High Court to rescind their judgments based on the judgment
creditors’ consent was
highlighted in
Lazarus
and another v Absa Bank LTD
.
[21]
In this case, the judgment debtors applied for the rescission of two
default judgments granted against them. The judgment creditor
did not
oppose these applications and provided them written consent to bring
these applications. The judgment debtors brought to
the attention of
the court the provisions of Rule 49(5) of the Magistrate Court Rules,
in respect of which the court held:
‘
If
rescission can be granted in the magistrate's court with the consent
of the judgment creditor and without more … there
would be an
anomaly as the rights of a party in the magistrate's court would be
greater than the rights of a party in the High
Court. But any such
anomaly would be due to the provisions of the Magistrates' Courts
Rule and, in the absence of any similar provision
in the High Court
Rules, consent by the creditor cannot, without more, justify
rescission in the High Court’.
[22]
[49]
In
Anoj
Kalikhan t/a Tri-Star Logistics v Firstrand Bank Limited,
[23]
the applicant brought an application to rescind the judgment. The
respondent did not oppose the application and went on to provide
consent in writing for the judgment to be rescinded. It was conceded
on behalf of the applicant that the order sought was incompetent
in
the High Court, but an argument was made that the court should
develop the common law ‘…
to
include the situation such as arises in this matter when the judgment
debt is discharged and the judgment creditor consents to
the
rescission of the judgment concerned’.
[49.1]
Among others, it was argued on behalf of the applicant that because
rule 49(5) of the Magistrates' Courts Rules allows
for the rescission
of a judgment in the Magistrate's Court by consent, this rendered the
law relating to rescission of judgments
discriminatory to the extent
that rescission of judgments by consent was not allowed in the High
Court.
[24]
The applicant
contended that ‘…
the
Court should develop the common law to include consent by the
judgment creditor thereto as a ground constituting good cause
to
rescind a default judgment’.
[25]
Further, ‘…
the
effect of the amendment to the relevant rule of the Magistrate's
Court placed litigants in that forum on a better footing when
applying for rescission of judgment than those in the High
Court’
.
[26]
[49.2] In declining
the invitation to develop the common law as requested, the court held
that the:
‘…
discrimination
that arises is not caused by the Rules of the High Court per se and
the common law pertaining thereto at all. The
discrimination is due
entirely to the Legislature having amended the Rules of the
Magistrates' Courts to enable default judgments
in the Magistrate's
Court to be rescinded by consent’.
[27]
[49.3]
The court held further that:
‘
[i]n
amending the Rules of the Magistrates' Courts, the Legislature
enacted laws in accordance with its legislature objectives.
Where the
development of the common law goes beyond what is required to give
full effect to the Bill of Rights in the Constitution,
the Court may
well be found to have usurped the constitutionally mandated powers of
the Legislature unreasonably. This may amount
to a breach of the
doctrine of separation of powers’.
[28]
[50]
Given the obvious difference relating to how the Magistrates’
Courts and the High Court
dealt with applications for rescission by
consent, there was a need for the legislature to intervene. In 2014,
the Legislature
inserted section 23A into the Superior Courts
Act.
[29]
This provision
specifically provides that:
‘
[i]f
a plaintiff in whose favour a default judgment has been granted has
agreed in writing that the judgment be rescinded or varied,
a court
may rescind or vary such judgment on application by any person
affected by it’.
[51]
This legislative intervention was followed by the amendment of the
Uniform Rules of Court where
Rule 31(6)(a) was inserted into these
rules.
[30]
This Rule provides
the procedural framework within which judgment debtors can apply for
rescission of judgments in the High Court
when they have received
written consent to bring such applications from their judgment
creditors. In terms of Rule 31(6)(a):
‘
[a]ny person
affected by a default judgment which has been granted, may, if the
plaintiff has consented in writing to the judgment
being rescinded,
apply to court in accordance with Form 2B of the First Schedule to
rescind the judgment, and the court may upon
such application rescind
the judgment’.
E
EVALUATION AND ANALYSIS
i)
Point in limine
[52]
Before dealing with the main issue of rescission by consent, it is
perhaps necessary to first
address the
point in limine
raised
by the first respondent. According to the first respondent, the court
does not have jurisdiction to entertain this matter
because the
applicant failed to apply for condonation to lodge its rescission
applicant as it was required to do by the Rules.
This point
in
limine
was neither made in the first respondent’s answering
affidavit nor raised in the heads of argument submitted on her
behalf.
It was raised for the first time during oral hearing directly
from the bar. This point
in limine
was based on Rule 31(2)(b)
which prescribes that an application for rescission must be brought
within 20 days as indicated above.
[53]
The applicant did not receive notice from the first respondent that
any point
in limine
would be raised. The applicant correctly
objected to this point being raised. In any event, the applicant’s
application for
rescission was not brought in terms of Rule
31(2)(b). This application is brought primarily in terms of
Rule 31(6)(a) which
does not prescribe any period for the lodging of
the rescission application. Apart from this, there is no basis for
courts to allow
points
in limine
to be raised from the bar
when such points should have been raised in the parties' affidavits.
To do so will be to seriously prejudice
the parties against whom
these points
in limine
are raised who are now expected to
think on their feet and deal with such points for the first time in
court. To the extent that
certain courts have allowed points
in
limine
to be raised from the bar, I am of the view that such an
approach amounts to an ambush, is not in the interest of justice, and
is wholly inappropriate.
[54]
In my view, any party that intends to raise any point
in limine
after its affidavit has already been served and filed should consider
filing a supplementary affidavit to raise that point and
give the
other party sufficient time to respond thereto. Raising points
in
limine
will lead to objections that may result in unnecessary
postponements of matters that ought to be finalised. In this matter,
none
of the parties requested a postponement.
[55]
I allowed the first respondent to argue the point
in limine
.
However, her point
in limine
was based on the rule which was
not part of the applicant’s case. It was insisted on behalf of
the first respondent that
it was not compulsory to raise a point
in
limine
in writing and that this point could competently be raised
from the bar. Quite shockingly, it was argued that the applicant
ought
to have applied in writing for condonation for the late filing
of its rescission application.
[56]
Further, such an application cannot be made from the bar.
[31]
It was a bit surprising for a party that sought to make an
application from the bar to prevent the other party from bringing its
application from the bar, even though the latter did not indicate
that they wished to bring any application from the bar. I am
of the
view that there is no merit in this point
in
limine
and it should be dismissed.
ii)
Rescission by consent
[57]
The crux of the first respondent’s argument is that, in
bringing this application, the
applicant ought to have fully complied
with the well-established requirements for rescission applications.
Further, to the extent
to which the applicant failed to do so, the
applicant should have applied in writing for condonation. It is clear
from the authorities
referred to above that there are now different
avenues provided for in the Rules that can be followed to bring
rescission applications
in the High Court in addition to the common
law.
[58]
The first respondent’s approach appears to be in line with the
decision of
Vilvanathan
& another v Louw NO.
[32]
This is a decision of the full bench of the Western Cape division and
is not directly binding on this court. At best its reasoning
may be
of a persuasive value. However, it does not appear as if the full
court fully appreciated, at least in the context of the
rescission by
consent in the Magistrates’ Court Rules, that Rule 49(5)
provided a further avenue upon which rescission applications
can be
brought in a democratic state where the state of the economy demands
that some relief should be provided to those who have
satisfied their
obligations to their judgment creditors. This rule was intended to
serve a different purpose.
[59]
Similarly, section 23A of the Superior Courts Act which is given
effect by Rule 31(6)(a) of the
Uniform Rules of Court provides a
different avenue that can be used to bring rescission applications
which avenue is completely
different from those provided by
Rule 31(2)(b), Rule 42(1) and the common law. As
is already the case in the Magistrates’ Courts, judgment
debtors in the High
Court can now also apply to have judgments
granted against them in default to be rescinded after obtaining their
judgment creditors’
written consent to do so. This means that
the applicants are well within their right to reflect on the
different avenues and decide
the most appropriate route to bring
their rescission applications.
[60]
The Rules Board did not make Rule 31(2)(b) and Rule 42(1) subject to
the common law. These Rules
remain independent from each other and
the common law. They provide further avenues for which rescission of
judgments can be applied.
Most parties rely on either of these Rules
and plead the common law in the alternative. Similarly, Rule 31(6)(a)
is independent
of the common law principles dealing with rescission
of judgments and provides a further avenue for judgment debtors to
have judgments
granted against them rescinded. In my view, an
applicant who applies for rescission of judgment under Rule 31(6)(a)
does not need
to comply with the requirements provided in
Rule
31(2)(b), Rule 42(1), or the common law for that matter.
[61]
There is no requirement at common law to bring a rescission
application within a specific period.
To prevent a situation where
judgment debtors wait for unreasonably long periods before they
approach courts with their rescission
applications, Rule 31(2)(b)
prescribes a period within which rescission applications should be
made.
[33]
If a judgment debtor
brings a rescission application under this rule outside the
prescribed period, then an application for condonation
must be made
to seek the court’s indulgence.
[34]
[62]
At common law, there is also no requirement that the judgment
creditor can bring a rescission
judgment with the judgment creditor’s
consent. The Supreme Court of Appeal and the Constitutional Court
have not pronounced
themselves on this issue. Contrary to what was
stated in
Vilvanathan & another v Louw NO
, none of the
divisions of the High Court are bound to insist on the common law
requirements being complied with when judgment debtors
approach them
in terms of a Rule that allows judgment creditors to consent in
writing to default judgments being rescinded.
[63]
Rule 31(6)(a) of the Uniform Rules of Court is independent of all the
Rules upon which rescission
applications can be brought and the
common law. Had the drafted of this Rule desired to make it subject
to any of these rules and
the common law they would have explicitly
done so. In terms of this Rule, there is no requirement for the
applicant to first bring
rescission within any specified period.
Secondly, there is no requirement for the applicant to demonstrate
either good or sufficient
cause. The only requirement in terms of
this Rule is the judgment creditor’s written consent. There is
no need to import
the requirements of other rules and the common law
into this Rule.
[64]
At best, courts can only insist as they have done when applying Rule
42(1) which does not specify
the period within which rescission
applications should be brought, that rescission applications in terms
of Rule 31(6)(a) of the
Uniform Rules of Court should also be brought
within a reasonable time. In my view, the court does not have
jurisdiction to refuse
to implement Rule 31(6)(a) as it has been
drafted given the fact that it informs section 23A of the Superior
Courts Act that is
directly binding on the courts.
[35]
[65]
The reason the legislature saw it fit to make provision for
rescission by consent was, among
others, to make it easier for
judgment debtors who desire to expunge their negative credit records
after satisfying their obligations
to their judgment creditors to
bring these applications so that these judgments can no longer impact
their credit scores.
[36]
I am
of the view that it is not justifiable for these categories of
judgment debtors whose judgment creditors have duly consented
in
writing to the rescission of default judgments against them to be
required to comply with the common law requirements for rescission.
Rescission of judgments by consent has received academic attention.
Bekker poses an important question:
‘
[w]ill the
consent of a plaintiff to the rescission of a judgment granted in
their favour automatically satisfy the requirement
of “good
cause”, or will it be only one of the factors that a court will
consider in deciding whether there is compliance
with the “good
cause” requirement?
[37]
[66]
Given the intended purpose of Rule 31(6)(a) of the Uniform Rules of
Court which, in my view,
is to come to the rescue of judgment debtors
who satisfied their obligations to their creditors, the issue of good
cause does not
arise in the context of this rule. Had the Rules Board
intended for this requirement to be part of this rule it would have
explicitly
done so as it did in Rule 31(2)(b). The fact that the
Rules Board did not make good cause a requirement in Rule 31(6)(a)
demonstrates
that these two Rules were intended to serve two
different purposes.
[67]
According to Bekker ‘
[t]he
High Court will therefore still have the discretion to refuse an
application for the rescission of judgment by consent, even
if the
plaintiff consents thereto’
.
[38]
While one cannot doubt the fact that the court retains its
discretion, it is difficult to understand why the court would refuse
to grant a rescission judgment when the judgment creditor consents in
writing to such a judgment being granted and where no prejudice
will
be suffered by any party.
[68]
The fundamental question that arises is whether any judgment debtor
at any time can bring a rescission
application
in
terms of Rule 31(6)(a) of the Uniform Rules of Court even when such a
judgment debtor has not fulfilled all its obligations to
the judgment
creditor and intends to raise a defence against the judgment
creditor? Unfortunately, none of the authorities referred
to above
considered this question, at least in terms of Rule 49(5) of the
Magistrates Court Rules which has been in operation for
some time and
interpreted by the courts.
[69]
The wording of both section 23A of the Superior Courts Act and Rule
31(6)(a) of the Uniform Rules
of Court suggest that rescission
applications can only be brought in terms of these provisions where
there is no possibility of
judgment creditors opposing these
applications. Where written consent has been granted there will
generally be no need for these
matters to go back to trial or to be
reconsidered by the courts. There will also be no need for judgment
debtors to demonstrate
that they have
bona fide
defenses.
Surely, judgment creditors who are likely to consent in writing to
these applications are those who are no longer pursuing
claims
against judgment debtors.
[70]
It is clear to me that not every judgment debtor can rely on Rule
31(6)(a) of the Uniform Rules
of Court. To allow every judgment
debtor to rely on this rule will render Rule 31(2)(b), Rule 42(1),
and the common law redundant
by allowing judgment debtors to
unreasonably delay bringing their rescission applications and excuse
themselves from explaining
to the court why they brought their
applications late. This will make a mockery of rescission
applications and lead to abuse of
untold proportions.
[71]
This will create a situation where judgment debtors who did not fully
comply with their obligations
to their judgment creditors and desire
to have their matters retried or reconsidered not to satisfy the
court that they have
bona fide
defences that can successfully
be raised should they be allowed to oppose or defend their matters.
Most importantly, this will
incorrectly empower these judgment
debtors not to apply for condonation when they eventually decide to
bring their rescission applications
to court. This cannot be allowed.
[72]
In my view, judgment debtors who desire to have their matters retried
or reconsidered are not
entitled to approach the court in terms of
this rule. They should approach the court in terms of Rule 31(2)(b),
Rule 42(1), or
the common law. In this case, given the fact that the
applicant has not fully satisfied its obligations to the first
respondent
and claims to have a
bona fide
defense against the
first respondent, the applicant cannot rely on Rule 31(6)(a) of the
Uniform Rules of Court. If it was competent
for the applicant to
utilise this Rule, why did Davis J order the applicant to bring its
rescission application within 20 days
of his order? In my view, Davis
J’s order implies that the applicant ought to have relied on
Rule 31(2)(b). It is important
to note that the applicant failed to
comply with this order.
iii)
Written Consent
[73]
If I am wrong, and the applicant can validly approach the court based
on Rule 31(6)(a) of the
Uniform Rules of Court, I am not convinced
that the consent to bring a rescission application in terms of
section 23A of the Superior
Courts Act as informed by Rule 31(6)(a)
can be granted tacitly or can be implied from surrounding
circumstances. In this case,
on the one hand, the applicant argues
that the second applicant’s proposal for the matter to be
retried is indicative of
the first respondent’s consent to this
rescission application. On the other hand, the second respondent is
of the view that
the applicant failed to respond to his proposal by
indicating whether the proposal was accepted.
[74]
To establish the first respondent’s consent, the applicant
relies on the email written
to it by the second respondent dated 7
October 2021. In this email, there is no indication that the second
respondent is acting
on the instructions of the first respondent. It
is the second respondent, without indicating the authority upon which
he is acting,
who proposed that the matter should be retried. It is
not clear whether the first respondent was aware of this proposal and
that
she authorized it.
[75]
It seems like the applicant’s officials simply assumed that
because the second respondent
was representing the first respondent
at the time, the email communicated the instructions of the first
respondent. From the plain
reading of the email, it is clear to me
that the first respondent did not instruct the second respondent to
make this proposal
and cannot be bound to a ‘tacit’
agreement that she did not conclude, assuming such agreement was
concluded. The applicant
ought to have replied to this letter, first
seeking clarity on the content of the proposal and most
significantly, whether this
proposal meant that it needed not to
bring a rescission application.
[76]
The applicant also relied on the judgment of Labuschagne AJ relating
to the parties in this case.
[39]
Labuschagne AJ held that the second respondent proposed that the
matter should be retried. Nothing was said about the first respondent
who was rendered completely invisible despite being the person who
was injured and at the centre of this dispute. Labuschagne AJ
held
further that the applicant accepted the second respondent’s
proposal in a communication where the applicant requested
the
applicant to abandon its judgment. Further, it was on the strength of
this alleged agreement that the applicant proceeded to
apply to
rescind the order of Basson J.
[40]
I do not agree with the view expressed by Labuschagne AJ. In my view,
these views are not supported by the evidence.
[77]
With respect, a closer look at the letter dated 1 November 2021 that
Labuschagne JA held demonstrated
the applicant’s acceptance of
the second respondent’s proposal for the retrial does not
suggest what Labuschagne JA
concluded. This letter reads:
‘
Dear
sir
Please
file a Rule 42 notice abandoning the previous judgment so we can
start from a clean slate. Kindly indicate whether you have
sent the
plaintiff for additional expert reports yet? The RAF is arranging for
its own expert, they should have contacted you by
now. Regards’
[78]
First, there is no indication that this email is responding to the
second respondent’s
email dated 7 October 2023. Secondly, there
is no reference to the second respondent’s proposal to retry
the matter. In my
view, and contrary to what Labuschagne AJ found,
this email does not constitute an acceptance of the second
respondent’s
proposal. Even if it did, it certainly did not
create an agreement between the applicant and the first respondent
for the matter
to be retried, let alone induce the first respondent’s
consent for the applicant’s rescission application.
[79]
The consent that was sought was that of the first respondent, not the
second respondent. This
is not consent that can be inferred from the
conduct of the first respondent’s legal representative. To
constitute written
consent in the context of Rule 31(6)(a), the
judgment creditor’s consent must be clearly and unequivocally
made by the judgment
creditor herself. In my view, consent that is
required in this Rule is express and meaningful consent that must be
duly completed
and signed by both the judgment debtor and judgment
creditor. If such consent is made through an agent, it must clearly
be demonstrated
that the judgment creditor duly authorised such
consent.
[80]
Judgment creditors must clearly indicate in writing that they consent
to the judgment debtors
bringing rescission applications. This will
prevent any doubt as to whether the judgment creditor consented to
the rescission application.
I am of the view that in this case, the
first respondent did not provide consent for the applicant to bring a
rescission application.
v)
Alternative relief
[81]
While the applicant’s application is primarily based on Rule
31(6)(a), the applicant also
in the alternative relies on the common
law. The heads of argument submitted on behalf of the applicant deal
with the common law
requirements for the rescission of default
judgments. First, in an attempt to demonstrate that it was not in
wilful default, the
applicant argues that it was served with a notice
of set down that indicated that the matter was to be heard on 30
November 2020.
[82]
Further, this date was confirmed by the first respondent’s
counsel at the time. The applicant
rejects the second respondent’s
explanation that this was an incorrect date that was duly rectified
through a notice of withdrawal
and service of the new notice of set
down on the same day. The applicant makes a serious allegation
against the second respondent
of tempering with notices.
[83]
Even though the second respondent’s explanation can be
criticised to some respects, the
applicant does not at all deal with
the notice of withdrawal of the first court date. The applicant does
not indicate whether its
erstwhile attorneys did receive the notice
of withdrawal together with the new notice of set down. Surely, this
is not the most
difficult factual position to establish. This could
have simply been established by contacting the applicant’s
erstwhile
attorneys to make a confirmatory affidavit explaining
whether he received the two notices of set down and the notice of
withdrawal.
From the totality of the evidence before the court, it is
difficult not to conclude that the applicant’s erstwhile legal
representatives did receive all these notices. Receipt of these
documents makes it clear that the only court date that was alive
was
15 February 2021.
[84]
In my view, the applicant’s attack on the notices of set down
is not genuine. Every day
this court hears matters where the
applicant is duly served with notices of set down and decides not to
brief any person to appear
on its behalf. At times, lawyers are
briefed on the eleventh hour and do not have full instructions to
proceed. There is also a
concerning trend where the applicant merely
defends the matter, files a general plea, and fails to appoint its
own experts to contradict
those appointed by claimants as is the
position in this case. The applicant only sought to appoint its
experts after Basson J’s
order was granted. There is no
explanation for why these experts were not engaged before this order
was granted. In my view, the
applicant was aware that the matter was
going to be heard on 15 February 2021 because the corresponding
notice of set down was
duly served on its erstwhile attorneys.
[85]
The applicant also claims to have a
bona
fide
defence. If this is true, then the
applicant ought to have brought its application within
either
20 days or at the very least a reasonable time. An application for
condonation would have allowed the applicant to provide
reasons to
the court why the application was either brought late or within a
reasonable time. The applicant’s rescission
application was
only brought on 6 July 2023, after various court processes between
the parties referred to above.
[86]
This was contrary to Davis J’s order where the applicant was
directed to bring its rescission
application within 20 days of that
order. Davis J did not grant the parties leeway to negotiate anything
contrary to his order
that would lead to his order not being
implemented. The applicant ought to have brought its rescission
application and in the process
engaged the second respondent on any
aspect where the parties could reach an agreement. The second
respondent’s consent to
bring this application was allegedly
granted on 7 October 2021 after Davis J’s order was granted.
When the alleged consent
was granted, the applicant was armed with
Davis J’s order and did not need any consent from the first
respondent to bring
its application.
[87]
There is no explanation none whatsoever as to why the rescission
application was not brought
in terms of Rule 31(2)(b), Rule 42(1) of
the common law between 16 February 2021 when the applicant was
alerted of Basson J’s
order and 27 August 2021 when the first
writ of execution was issued against the applicant. Much of the
explanation that is offered
covers events that unfolded from 27
August 2021. I am not convinced that the applicant has even met the
common law requirements
for the rescission of judgment.
v)
Serious allegations against the second respondent
[88]
Regrettably, the applicant decided to make serious allegations
against the second respondent,
who is an officer of this court. As
demonstrated above, the allegations are that the second respondent
tempered with court notices
to suit his narrative that the matter was
duly set down for 15 February 2021. In making these unfortunate
allegations, the applicant
did not bother to obtain a confirmatory
affidavit from its erstwhile attorneys who received these documents
to confirm or deny
these allegations. There is also no report of a
relevant expert that substantiates the applicant’s allegations.
All that
the applicant did was to draw inferences based on the naked
eye of some of its officials. This is unacceptable given the gravity
of the allegations. Allegations of this nature should only be made
with the necessary proof because they run a risk of damaging
the
reputation of officers of this court.
F
CONCLUSION
[89]
I am of the view that the applicant relied on an incorrect rule in
this application. In my view,
by not applying for condonation, the
applicant denied itself a golden opportunity to explain to the court
why it could not file
its rescission application from 16 February
2021. The applicant should have used a rule that would have
allowed it to duly
apply for condonation and ask the court’s
indulgence to bring this application. Basson J’s order was
granted on 15
February 2021. The applicant became aware of this order
on 16 February 2021. On this basis, the applicant cannot succeed.
ORDER
[90]
In the result, I make the following order:
1.
The applicant’s application for rescission is dismissed.
2.
The first respondent’s point
in limine
is dismissed.
3.
The applicant is ordered to pay the first respondent’s costs of
this application.
C MARUMOAGAE
ACTING JUDGE OF THE
HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION
PRETORIA
COUNSEL
FOR THE APPLICANT:
Adv CM
Rip with Adv Jozana
INSTRUCTED
BY:
Malatji
& Co
COUNSEL
FOR THE FIRST RESPONDENT:
Adv
Malatji
INSTRUCTED
BY:
Malatji
S Legal Practitioners
DATE
OF THE HEARING:
11 &
12 October 2023
DATE
OF JUDGMENT:
19
January 2024
[1]
10 of 2013.
[2]
See
De
Wet and others v Western Bank Ltd
1979 (2) SA 1031 (A) 1042.
[3]
See
Chetty
v Law Society, Transvaal
1985 (2) SA 756 (A) 765.
[4]
2022 (5) SA 1
(CC);
2022 (10) BCLR 1185
(CC) para 46. See also
Zuma
v Secretary of the Judicial Commission of Inquiry into Allegations
of State Capture, Corruption and Fraud in the Public Sector
Including Organs of State
2021 (5) SA 327
(CC);
2021 (11) BCLR 1263
(CC) para 71.
[5]
1985 (2) SA 756 (A) 765.
[6]
[2020] JOL 48938
(SCA) para 50
[7]
This rule reads as follows ‘The court may, in addition to any
other powers it may have,
mero
motu
or upon the application of any party affected, rescind or vary—
(a) an order or judgment erroneously sought or erroneously
granted
in the absence of any party affected thereby; (b) an order or
judgment in which there is an ambiguity, or a patent error
or
omission, but only to the extent of such ambiguity, error or
omission; (c) an order or judgment granted as the result of a
mistake common to the parties’.
[8]
This rule reads as follows ‘[a] defendant may within 20 days
after acquiring knowledge of such judgment apply to court
upon
notice to the plaintiff to set aside such judgment and the court
may, upon
good
cause shown, set aside the default judgment on such terms as it
deems fit’.
[9]
(2012/9223) [2018] ZAGPPHC 306 (26 April 2018) para 19. See also
T.A.M v M.F.M (1275/2021)
[2022] ZAFSHC 129
(12 May 2022) where it
was stated that ‘[a]lthough rule 42(1) does not specify a
time-limit, it is a discretionary remedy.
Like all discretionary
remedies, rescission under rule 42(1) must be sought within a
reasonable period of time. The same applies
to rescission at common
law’ (footnotes omitted). See further
Ledwaba
N.O v Mthembu and Others
(25312/2016) [2021] ZAGPJHC 640 (4 November 2021) para 11, where it
was correctly held that ‘[u]nlike rule 31(2)(b), rule
42,
similar to the common law, does not specify a period within which a
rescission application in terms thereof should be launched.
However, a rescission application in terms of rule 42 or the common
law must be launched within a reasonable period. What
is a
reasonable period depends upon the facts of each case.[9] The
purpose of rule 42 is to correct expeditiously an obviously
wrong
judgement or order’.
[10]
32 of 1944
[11]
Minister
of Police v Nongwejane
(CA&R63/2015) [2015] ZAECMHC 80 (20 November 2015) para 5.
[12]
[1999] 3 All SA 278
(W) 283.
[13]
Judicial Matters Amendment Act 55 of 2002
.
[14]
2002 (1) SA 896 (C) 903.
[15]
2002 (1) SA 896 (C) 903.
[16]
[2006] JOL 18550
(C) para 8.
[17]
Damon &
another v Nedcor Bank Ltd
supra para 9.
[18]
[2010] JOL 25198 (WCC).
[19]
Vilvanathan
& another v Louw NO
supra 24. The court further reasoned that ‘…
it
is my respectful view that where, as here, certain principles have
been clearly laid down by the Appellate Division or the
Supreme
Court of Appeal it is not for a Provincial or Local Division of this
Court to depart from them in the name of development
or adaptation
of the law so as to meet altered social circumstances, no matter how
unpalatable or outdated such a Division may
find those principles:
in such circumstances, it seems
to
me, with respect, to be the exclusive prerogative of the Supreme
Court of Appeal or, perhaps, of the Constitutional Court,
to bring
about any development or adaptation of the law which may be called
for. Otherwise, in my respectful view, the time-honoured
rules and
conventions pertaining to the hierarchy of courts in South Africa
and the principles of stare decisis would be at risk
of being eroded
with a resultant detrimental dilution of certainty in the law’.
[20]
Ibid 34.
[21]
1999 (2) SA 782 (W).
[22]
Ibid 787.
[23]
[2013] JOL 30450 (GSJ).
[24]
Ibid para 4.2.
[25]
Ibid para 4.3.
[26]
Ibid para 5.
[27]
Ibid para 8.
[28]
Ibid para 9.
[29]
Superior Courts Amendment Bill [B-2014].
[30]
Gazette No. 36743, Notice No. 615 dated 12 August 2013.
[31]
C.V v
Commissioner for the South African Revenue Service
(A322/2019)
[2020] ZAWCHC 140
(30 October 2020) para 25.
[32]
[2010] JOL 25198
(WCC).
[33]
In
terms of
section 6(1)(a)
of the Rules Board for Courts of Law Act
107 OF 1985, ‘The Board may, with a view to the efficient,
expeditious and uniform
administration of justice in the Supreme
Court of Appeal, the High Court of South Africa and the Lower
Courts, from time to time
on a regular basis review existing rules
of court and, subject to the approval of the Minister, make, amend
or repeal rules for
the Supreme Court of Appeal, the High Court of
South Africa and the Lower Courts regulating the practice and
procedure in connection
with litigation, including the time within
which and the manner in which appeal shall be noted’. The
board is duly empowered
by Parliament to amend the rule and some of
the amendments will deviate from the principles of the common law.
[34]
Renwick
v Botha
(35217/2019)
[2023] ZAGPJHC 305 (8 March 2023) para 27.
[35]
I
am aware as was stated in
Collatz
and Another v Alexander Forbes Financial Services (Pty) Ltd and
Others
(A5067/2020; 43327/2012) [2022] ZAGPJHC 93 (10 February 2022) para
23 that ‘the rules are meant for the court, not the
court for
the rules’.
[36]
See
Smith ‘Skaakmat? Tersydestelling van vonnisse en “skoonmaak”
van kredietrekords in die
landdroshowe?”
(2000) Dec
De Rebus
26 - 27.
[37]
‘Rescission of Judgments by Consent – Recent
Developments and Lessons from England and Wales’ (2023) 37 (1)
Speculum
Juris
118 at
128.
[38]
‘Rescission of Judgments by Consent – Recent
Developments and Lessons from England and Wales’ (2023) 37 (1)
Speculum
Juris
118 at 128.
[39]
Road
Accident Fund v Ruele and Others
(2016/19982) [2023] ZAGPPHC 602 (21 July 2023).
[40]
Road
Accident Fund v Ruele and Others
(2016/19982) [2023] ZAGPPHC 602 (21 July 2023) paras 7 and 8.
sino noindex
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