Case Law[2024] ZAGPPHC 429South Africa
Labuschagne v Farm to Table Meats (Pty) Ltd and Others (041961/22) [2024] ZAGPPHC 429 (29 April 2024)
High Court of South Africa (Gauteng Division, Pretoria)
29 April 2024
Headnotes
under Deed of Transfer T17358/1995, 206,5964 hectares in extent (hereinafter
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Labuschagne v Farm to Table Meats (Pty) Ltd and Others (041961/22) [2024] ZAGPPHC 429 (29 April 2024)
Labuschagne v Farm to Table Meats (Pty) Ltd and Others (041961/22) [2024] ZAGPPHC 429 (29 April 2024)
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sino date 29 April 2024
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IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NUMBER: 041961/22
REPORTABLE:
NO
OF
INTEREST TO OTHERS JUDGES: NO
REVISED
DATE:
29 APRIL 2024
In
the matter between
LEONARDUS
JOHANNES LABUSCHAGNE
APPLICANT
and
FARM
TO TABLE MEATS (PTY) LTD
FIRST RESPONDENT
JOHANNES
FREDERICK VAN DER WALT
SECOND RESPONDENT
CAREL
JOHN VAN HEERDEN
THIRD RESPONDENT
SEAN
LEON LABUSCHAGNE
FOURTH RESPONDENT
STEFAN
GEORGE VAN HEERDEN
FIFTH RESPONDENT
ANDREW
VRELE DU TOIT
SIXTH RESPONDENT
JUDGMENT
BURGER
AJ:
INTRODUCTION:
[1]
This
is an application for leave to appeal against the judgment and order
herein dated 27 September 2023. The application is opposed
and the
Applicant in the eviction application applied for an order in terms
of
Section 18(3)
of the
Superior Courts Act, 10 of 2013
. The latter
application is also opposed. For purposes of this judgment, I will
refer to the parties as they were referred to during
the eviction
application.
[2]
The order sought to be appealed against, provides as
follow:
"[57.1] That the
First, Second, Third, Fifth and Sixth Respondents (hereinafter
collectively referred to as "the Respondents”)
be ordered
to vacate the immovable property known as Portion […] (a
Portion of Portion […]) of the F[…] R[…][…],
Registration Division[…], Gauteng Province, held under Deed of
Transfer T17358/1995, 206,5964 hectares in extent (hereinafter
referred to as "the Property"), within a period of 30 days
from the date upon which this order is served upon the Defendants;
[57.2] That, in the
event that the Respondents fail or omit or refuse to vacate the
property, as provided for and envisaged
in paragraph 48.1 supra, the
Sheriff of this Court and/or his/her Deputy be authorised and
mandated to execute this order and to
evict the Respondents from the
Property and to obtain the assistance of the South African Police
Services to assist him/her in
this regard, if necessary;
[57.3] That the
Respondents be ordered to pay the costs of this application jointly
and severally, the one paying the others
to be absolved pro tanto, on
a scale as between attorney and client, the costs to include the
services of 2 (two) counsel.
[3]
This application is premised on the grounds set out in
the Notice to Appeal dated 24 October 2023. The grounds raised by the
Respondents
are the following:
"1.
The court erred in holding that the First, Second, Third, Fifth
and/or Sixth Respondents (hereinafter
referred to as "the
Respondents") are in unlawful occupation of the immovable
property known as Portion […] (a
portion of portion […])
of the F[…] R[…][…], Registration
Division[…].,Gauteng Province ("the
property").
2.
The court erred in holding that the Second to Sixth Respondents have
direct and substantial interests
in the order that the court might
make.
3.
The court erred in holding that the
contra
proferentem
rule could only be of value if
the parties were
ad idem
as to who the author of the agreement was, under circumstances where
the Respondents, in an opposed motion, alleged that the Applicant
was
the author of the agreement.
4.
The court erred in not accepting, for the purposes of the opposed
motion, the Respondents’ version
that the Applicant was the
author of the contract.
5.
The court erred in holding that the
contra proferentem
rule
might only have had value if it operated in favour of the Applicant.
6.
The court erred in holding that the
contra proferentem
rule
would not have had any effect on the position of the Respondents.
7.
The court erred in holding that the Respondents breached the
agreement between the parties.
8.
The court erred in holding that the allegations made in paragraph 23
of the Respondents answering affidavit
is factually incorrect and
misguided "as the valuation by the registered valuator"
(Annexure "F2") was obtained
by the Applicant before the
valuation by Remax", under circumstances where the Applicant
never made such allegation (that
the registered valuator's valuation
was obtained prior the Remax valuation) and no reliance was placed
thereon by the Applicant,
in its affidavits or during argument. This
should, in addition, be seen in light of the fact that the registered
valuator's valuation
utilised IVS 2022 International Valuation
Standards Council 2022, which standards were only effective from 31
January 2022. The
issue of the timing of the valuations were not
raised during argument.
9.
The court erred in holding that there existed no material factual
dispute.
10. The
court erred in failing to deal, in any way, alternatively by failing
to give sufficient consideration, to the
defence of rectification
raised by the Respondents in their answering affidavit. The court did
not deal with this defence in its
judgement.
11. The
court erred in holding that the dispute between the parties could
have been resolved, in motion proceedings,
in favour of the
Applicant.
12. The
court erred in placing reliance on the judgment of Business Aviation
Corporation (Pty) Ltd and Another v Rand
Airport Holdings (Pty) Ltd
and the authorities referred to therein, relating to the exercise of
lien over farmland, and the court
erred in relying on the Placaeten
of 1658 and 1659, under circumstances where the Applicant never even
raised the issue of possible.
restrictions placed the Respondents
right to exercise a lien. The Applicant would have been required to
affirmatively raise such
restrictions in its replying affidavit
and/or during argument. The Applicant did not content in its
affidavits or during argument,
that the Respondents, in principle,
would not be entitled to exercise a lien over the property due to it
being farm/agricultural
land. The court raised issue,
mero moto
,
for the first time during its judgment. This should, in addition, be
seen in light of the fact that the Applicant has always maintained
that the eviction is a "commercial eviction".
13. The
court erred in holding that the Applicant is entitled to rely on the
contractual provisions that: any improvements
and/or alterations
affected to the property, by the First Respondent, should have been
approved by the Applicant, in writing, prior
to such
improvement/alterations being undertaking. This should be seen under
circumstances that the Applicant was, at the time
of the
improvement/alterations being effected at the property, aware of it
and at least verbally and/or tacitly, consented thereto.
14.
The court erred by failing to give any,
alternatively sufficient, consideration to the Applicant's
knowledge
of the alterations/improvements by the First Respondent, at the time
that it was effected by it, without the Applicant
ever objecting to
it or raising the (contractual) issue of written consent.
15. The
court erred in failing to give any, alternatively sufficient.
consideration to the evidence produced by the
Respondent, and the
contentions made, that the Applicant had approved and consented to
the improvements/alterations, by way of
quasi-mutual assent.
16. The
court erred in failing to give any, alternatively sufficient,
consideration to the judgment of the Supreme
Court of Appeal on the
matter of Pillay and Another v Shaik and Others, in which the court,
inter alia
, held that where there had not been strict
compliance with the prescribed formalities of a contract, and one
party, by its conduct,
induced the other party to the reasonable
belief, that there had been due acceptance according to the
prescribed mode and that
there was consensus, there is binding
consequences despite there not apparent non-compliance with the
formalities of the agreement.
17. The
court erred in failing to give any, alternatively sufficient,
considerations to the contention by the Respondents,
that the
Applicant should be estopped from denouncing his consent to the
construction of the cold room.
18. The
court erred by failing to give any, alternatively sufficient,
consideration to the contentions, and allegations,
by the Respondents
that the Applicant, in dealing with the Respondents, acted
fraudulently and dishonestly, under circumstances
where the Applicant
was clearly, at all relevant times, aware of the improvements and
alterations affected by the Respondents and,
now, seeks to rely on
the provisions of the agreement between the parties requiring written
consent, to deny the Respondents compensation
for the improvements
effected to the property and security relevant thereto [the lien).
19. The
court erred in holding that the fact that the First Respondent is
conducting business from the property, "disqualifies"
the
Respondents from exercising the lien.
20. The
court erred in placing reliance on the matter of Rekdurum (Pty) Ltd v
Weider Gym Athlone (Pty) Ltd4 in which
it was held that a lien, in
general, does not entitled the possessor to use the object. The
considerations, and the judgment, can
only be relevant where an
interdict had been sought to prevent the use of the property. The
Applicant, in this matter, did not
seek an interdict against the
Respondents preventing them from using the property.
21. The
court erred in holding that the fact that a lien holder uses the
property disqualifies/terminates the lien.
22. The
court erred in giving any consideration to the lawfulness of the
utilisation of the property by the First Respondent,
for its own
benefit, where such consideration ought to be irrelevant for the
application. The only consideration was whether the
First Respondent
lawfully possessed the property.
23. The
court erred in holding that the Respondents raised fictitious
disputes of fact.
24. The
court erred in holding that the Respondents' defences, to the
application for eviction, are clearly untenable,
and justified the
court in rejecting it, under circumstances where the Applicant did
not even make such a contention (the contention
that the Respondents
version was clearly untenable and/or far-fetched).
25. The
court erred in ordering that the Respondents pay the cost of the
application, to be taxed on the scale as between
attorney and client.
26. The
court erred in refusing to pronounce on the question whether the cold
storage facility constitutes a permanent
structure or not.
27. The
court erred in not holding that the First Respondent is in lawful
occupation (possession) of the property.
28. The
court erred in not dismissing the application with costs.
CONDONATION:
[4]
The Replying Affidavit by the Applicant was filed on 15
March 2024 whilst, in terms of Rule 6 of the Uniform Rules of Court,
it
had to be filed no later than 12 January 2024. In view of the
compelling reasons advanced by the Applicant to explain the lateness
coupled with no resistance by the Respondents, I am inclined to grant
condonation for the late filing of the Replying Affidavit.
For
reasons noted hereinlater, it is clearly in the interests of justice
to accept the Replying Affidavit into record.
NOTICE
TO STRIKE OUT:
[5]
This matter was scheduled to be heard in open court at
11:30 on 26 March 2024.
[6]
At 10:45 on 26 March 2024, while waiting in the Judge
President’s chambers for the proceedings to commence, my
Registrar furnished
me with a 3-page document which was uploaded onto
CaseLines just before 10:45.
[7]
This document turned out to be an application to strike
out certain portions of the Replying Affidavit filed by the Applicant
with
regards to the applications before me. The notice was not
accompanied by an affidavit.
[8]
I invited the parties to deal with the notice before we
deal with the applications.
[9]
Adv Botes SC, for the Applicant, submitted that the
Court should not entertain the notice because the allegations in the
replying
affidavit of the Applicant were neither scandalous,
irrelevant nor vexatious. In addition, the application to strike out
should
show prejudice to the party who sought the striking out. In
the absence of an affidavit to substantiate such prejudice, the
notice
should be regarded as a matter
ex
abudanti cautela.
[10]
For the Respondents, Adv Raubenheimer argued that the
Replying Affidavit contains paragraphs and documents which constitute
a new
case that is sought to be made out in reply and allegations
that ought to have been made in the founding affidavit. He submitted
that paragraphs 4.11 to 4.18, 5.1 to 5.13 and 6.11 should be struck
out.
[11]
In
Mostert and Others v Firstrand
Bank t/a RMB Private Bank and Another
2018
(4) SA 443
(SCA)
at paragraph 13, Van der
Merwe JA stated the following:
“
It
is trite that in motion proceedings the affidavits constitute both
the pleadings and the evidence. As a respondent has a right
to know
what case he or she has to meet and to respond thereto, the general
rule is that an applicant will not be permitted to
make or supplement
his or her case in the replying affidavit. This, however, is not an
absolute rule. A court may in the exercise
of its discretion in
exceptional cases allow new matter in a replying affidavit. . . .In
the exercise of this discretion a court
should in particular have
regard to: (i) whether all the facts necessary to determine the new
matter raised in the replying affidavit
were placed before the court;
(ii) whether the determination of the new matter will prejudice the
respondent in a manner that could
not be put right by orders in
respect of postponement and costs; (iii) whether the new matter was
known to the applicant when the
application was launched; and (iv)
whether the disallowance of the new matter would result in
unnecessary waste of costs.”
[12]
It is common cause that the Replying Affidavit was filed
by the Applicant only on 15 March 2024, 11 days prior to the session
in
court. The Applicant submitted that the reason for the late filing
of the Replying Affidavit was the fact that the parties were
in
continuous settlement discussions since December 2023 and it was only
settled and filed when the discussions seemed to be utterly
fruitless. The Respondents did not traverse the aforementioned
submission but rather complained about the little time available
for
the Respondents to settle their Heads of Argument.
[13]
The Respondents, in addition, did not object to the
lateness of the Replying Affidavit nor did the Respondents apply for
a postponement
of the matter in order to prepare an affidavit to
accompany the application to strike out. In view of the importance of
the matter
to both parties as well as the complexity thereof, I would
have considered such an application.
[14]
Paragraphs 4.11 to 4.18 of the Replying Affidavit deals
in detail with the dire financial situation the Applicant finds
himself
in as a direct result of the Respondents who resist eviction
at all cost whilst not paying any rent and continuing business as
usual on the property of the Applicant. The Applicant averred
in the Founding Affidavit that he already utilized a substantial
part
of his life savings in order to restore his property rights and,
unless the Applicant is able to regain possession and control
of his
property and find an alternative tenant, he will be left with no
funds. The Respondents reacted to the latter in the Opposing
Affidavit as follow:
“
12.
It is simply not correct that the Applicant is unable to sustain
himself pending the finalisation of the appeal process in this
matter.
He is a very wealthy person.
”
(Emphasis added)
and
“
13.
He has failed, in his affidavit, to take this Honourable Court into
his confidence. He says that he has been required to withdraw
millions from his investments, yet he fails to make any allegations
as to how much he has left by way of financial or other investment
and other holdings.
The Applicant is an
extremely wealthy person.
”
(Emphasis added)
[15]
I am satisfied that paragraphs 4.11 to 4.18 in the
Replying Affidavit were necessitated by the nonchalant and
lackadaisical attitude
of the Respondents in the Opposing Affidavit
averring that the Applicant is “extremely wealthy” and
will be able to
afford his legal and living expenses to the very end
of the appeal process. It must be borne in mind that the Respondents
made
such statements from a position where they were conducting an
extremely profitable business from the property of the Applicant
whilst depriving the Applicant from rent which is legally due to the
Applicant.
[16]
I have no doubt that the Supreme Court of Appeal, as
pronounced in Mostert
supra
,
would have regarded the above scenario as exceptional.
[17]
Paragraphs 5.1 to 5.13 of the Replying Affidavit deals
with a completely new matter which goes to the core of the question
whether
the Respondents stand to suffer irreparable harm should this
Court grant the Section 18(3) application in favour of the Applicant.
The Applicant was not obviously aware of such facts when deposing of
the Founding Affidavit.
[18]
In brief, the Applicant avers that the Respondents were
not complying with various requirements in order to conduct the
business
of a commercial abattoir and on 28 September 2023 and 31
October 2023, the Department of Agriculture and Rural Development
issued
directives to the Respondents to comply with said
requirements.
[19]
The Respondents seemingly did not rectify their
wrongdoing and, as a result, the Department of Agriculture and Rural
Development
issued a stop order on 14 February 2024. This entails
that the Respondents are legally barred from conducting the business
of a
commercial abattoir.
[20]
During argument before me, Adv Raubenheimer averred that
he was not aware of the recent developments at his clients’
business.
I invited Adv Raubenheimer to take instructions in this
regard as I regarded it to be of importance in the matter I was
called
to adjudicate and his instructing attorney and client were
sitting in court. Despite my invitation, Adv Raubenheimer bluntly
refused
to obtain instructions in this regard.
[21]
I therefor find that all the relevant facts necessary to
determine the new matter referred to in paragraphs 5.1 to 5.13 in the
Replying
Affidavit were placed before me, that the Applicant was not
aware of such facts when the Section 18(3) Application was launched
and that the matter is inherently extraordinary in nature.
[22]
Paragraph 6.11 is a repetition of an averment in the
Founding Affidavit by the Applicant in that the Respondents will
suffer no
harm should the Section 18(3) Application be granted save
for the alleged improvements which were erected by the Respondents on
the property of the Applicant. In this regard, the Applicant, in his
Founding Affidavit, submitted that the Respondents can approach
a
court to recover the expenses related to the improvements and that
the value of the property of the Applicant provides more than
adequate security for such claim. In essence, the Applicant averred
in the Founding Affidavit that the Respondents will suffer
no harm
should the Court decide in favour of the Applicant in re the Section
18(3) Application.
[23]
The content of the Replying Affidavit as a whole will
thus be considered by this Court in reaching a conclusion herein.
APPLICATION
FOR LEAVE TO APPEAL:
Legal
principles:
[24]
Applications for leave to appeal are governed by
Section
17
of the
Superior
Courts Act, number 10 of 2013
.
Section 17
(1) provides as follows:
"(1)
Leave to appeal may only be given where the judge or judges concerned
are of the opinion that:
(a)
(i)
the appeal would have reasonable prospect of success; or
(ii)
there is some other compelling reason why the appeal should be heard,
including conflicting
judgments on the matter under consideration;
[25]
The traditional test that was applied by the
Courts in considering leave to appeal applications have been whether
there is a reasonable
prospect that another Court may come to a
different conclusion to the one reached by the Court
a
quo
[
Commissioner of
Inland Revenue v Tuck
1989 (4) SA 888
(T)
].
With the enactment of
section 17
, the test obtained statutory force.
In terms of
section 17
(1)(a)(i), leave to appeal may now only be
granted where the Judge or Judges concerned is of the view that the
appeal would have
a reasonable prospect of success, which made it
clear that the threshold to grant leave to appeal has been raised. In
Mont Chevaux Trust v Tina Goosen and 18 Others
decision [2014] JDR 2325 (LCC)
at para 6, it
was held that:
"It
is clear that the threshold or granting leave to appeal against a
judgment of a High Court has been raised in the new Act.
The former
test whether leave to appeal should be granted was a reasonable
prospect that another Court might come at a different
conclusion, see
Van Heerden v Cronwright & Others
1985 (2) SA 342
(T) at 342H
.
The use of the word "would" in the new statute indicates a
measure of certainty that another Court will differ from
the Court
whose judgment is sought to be appealed against." In
Notshokuvu
v S
(2016) ZASCA 112
at para 2, it was indicated that an
Appellant faces a "higher and stringent" threshold under
the
Superior Courts Act. Thus
, in relation to said
section 17
, the
test for leave to appeal is not whether another Court "may"
come to a different conclusion, but "would"
indeed come to
a different conclusion.”
[26]
With regard to the meaning of reasonable prospects of
success, it was held in
S v Smith
2012 (1)
SACR 567
(SCA) 570
, at para 7, as follows:
"What the test of
reasonable prospects of success postulates is a dispassionate
decision, based on the fact and the law, that
a court of appeal could
reasonably arrive at a conclusion different to that of the trial
court. In order to succeed, therefore,
the appellant must convince
this court on proper grounds that he has prospects of success on
appeal and that those prospects are
not remote but have a realistic
chance of succeeding. More is required to be established than that
there is a mere possibility
of success, that the case is arguable on
appeal or that the case cannot be categorised as hopeless.
There
must, in other words, be a sound, rational basis for the conclusion
that there are prospects of success on appeal
."
(Emphasis added)
Discussion:
[27]
I have already comprehensively dealt with all relevant
issues in my judgment dated 27 September 2023.
[28]
The simple facts of this matter can be summarised as
follow:
-
It is common cause that the Applicant is the owner of the property
in
dispute.
-
It is further common cause that a verbal lease agreement existed
between
the Applicant and the First and Second Respondents in terms
whereof the Respondents would lease the commercial abattoir situated
on the property of the Applicant and a certain amount of money will
be paid to the Applicant on a monthly basis.
-
At the end of August 2022, the Respondents failed to pay the rent and
this was met with a letter of demand from the attorneys for the
Applicant calling on the Respondents to rectify their breach.
-
The Respondents failed to rectify the breach and the Applicant duly
cancelled the agreement.
-
From such time the Respondents were not lawful in their occupation
of
the Applicant’s property.
[29]
During argument before me, the Respondents
persisted that they did not breach the lease agreement, but rather
the Applicant did.
The aforementioned view is premised on the
averment that the Applicant offered the property for sale to a third
party. I already
found in my judgment that such submission is bad in
law and in fact and still stands to be rejected.
[30]
The position regarding an improvement/enrichment lien on
rural property in our law has been dealt with in my judgment and I am
not
going to repeat same here. The Respondents criticized me for
researching the aforementioned and submitted that, at the very least,
I should have invited the parties to make further submissions with
regards to the
dicta
I
referred to from
Business Aviation Corporation
v Rand Airport Holdings [2006] SCA 72 (RSA)
.
[31]
It is correct that I did not invite the parties to make
further submissions in this regard. However, no amount of argument
could
have altered the cold, hard facts present in this matter. No
amount of argument could have changed the geographical location of
the property in dispute from rural to urban. The property in dispute
is, without a shadow of a doubt, situated on agricultural
land and
the Respondents are therefor barred from relying on the protection of
an improvement/enrichment lien.
[32]
In addition, the Respondents argued that this Court is
bound to the cases presented and arguments delivered before court by
the
respective parties. This position is normally accepted. It is
however not acceptable to expect from a judicial officer to choose
the “more correct” argument to the “lesser correct”
one. This Court is duty bound to pronounce the legally
correct
position and not something in between. The argument of the
Respondents, in this regard, stands to be rejected.
[33]
The Respondents also argued that this Court
erred in not entertaining the submissions relating to verbal and/or
tacit consent by
the Applicant – in relation to the erecting of
the cold storage facility – and the question of
estoppel
.
In view of my finding
i.e.
that the Respondents cannot rely on the protection of a lien, I did
not deem it necessary to pronounce on said issues.
[34]
It needs to be noted that, when engaged during argument
before me with the question as to when, where and how did the
Applicant
verbally consent to the erection of the improvements, Adv
Raubenheimer was at a loss of words. When prompted as to how the
Third
Respondent can make such allegation in his Answering Affidavit
if his representative is unable to substantiate same, Adv
Raubenheimer
merely submitted that he could not take the matter any
further.
[35]
The Respondents, as part of their arsenal of legal
challenges, submitted throughout the proceedings that the Respondents
always
intended to apply for rectification of the initial agreement
between the parties. According to the Respondents and in light of the
“defence” of rectification, the Respondent did not intend
to agree that any improvements or alterations to the property
of the
Applicant should be preceded by written consent by the Applicant. If
one has to entertain such contention as serious, the
question remains
as to why did the Respondent not apply for such rectification much
earlier? I regard the rectification “defence”
as merely
an afterthought to be utilized by the Respondent if everything else
fails.
[36]
Adv Botes SC, for the Applicant, submitted that the
matter before me was an eviction application, no more, no less. I
agree with
the contention and have already noted the simple facts of
the matter in paragraph 28
supra
.
[37]
In addition, the Applicant agued that the Respondents
reverted to a shotgun approach when settling their application for
leave to
appeal. Simple reading of the grounds of appeal reveals that
the Respondents contest in essence every finding I made in my
judgment.
Adv Raubenheimer echoed the aforementioned during argument
before me by submitting that, even if I find that a court of appeal
would come to a different conclusion on only one ground of appeal, I
would be obliged to grant leave to appeal. Such an approach
needs to
be discouraged as it creates the impression that the party who acts
as such, does not have real and specific grounds of
appeal but still
continues on its path in the hope that the presiding Judge doubts at
least one of his/her findings. This is nothing
less than an abuse of
process.
[38]
The Applicant argued that my judgment was, with regards
to the material aspects, properly reasoned and correctly decided.
[39]
In conclusion, the Respondents must convince this court
on proper grounds that they have prospects of success on appeal and
that
those prospects are not remote but have a realistic chance of
succeeding. Having taken the submissions by the parties, on paper
and
viva voce, into consideration, I am of the opinion that a court of
appeal would not come to a different conclusion. The application
for
leave to appeal must therefore fail.
APPLICATION
IN TERMS OF SECTION 18(3) Act 10 of 2013:
Legal
principles:
[40]
Section 18(3)
of the
Superior
Courts Act
reads as follow:
"(I)
Subject to subsections (2) and (3), and unless the court under
exceptional circumstances
orders otherwise, the operation and
execution of a decision which is the subject of an application for
leave to appeal or of an
appeal, is suspended pending the decision of
the application or appeal.
(2)
Subject to subsection (3), unless the court under exceptional
circumstances orders otherwise,
the operation and execution of a
decision that is an interlocutory order not having the effect of a
final judgment, which is the
subject of an application for leave to
appeal or of an appeal, is not suspended pending the decision of the
application or appeal.
(3)
A court may only order otherwise as contemplated in subsection (I) or
(2), if the party
who applied to the court to order otherwise, in
addition proves on a balance of probabilities that he or she will
suffer irreparable
harm if the court does not so order and that the
other party will not suffer irreparable harm if the court so orders.
(4)
If a court orders otherwise, as contemplated in subsection (1) —
(i)
the court must immediately record its reasons for doing so;
(ii)
the aggrieved party has an automatic right of appeal to the next
highest court;
(iii)
the court hearing such an appeal must deal with it as a matter of
extreme urgency: and
(iv)
such order will be automatically suspended, pending the outcome of
such appeal.
(5)
For the purposes of subsections (I) and (2), a decision becomes the
subject of an application
for leave to appeal or of an appeal, as
soon as an application for leave to appeal or a notice of appeal is
lodged with the registrar
in terms of the rules."
[41]
In
MV Ais Mamas
Seatrans Maritime v Owners MV Ais Mamas & Another
2002 (6) SA 150
(C
), a decision often quoted
by this Division and the Supreme Court of Appeal, Thring J dealt with
the phrase “exceptional circumstances”
and a summation of
the meaning of the phrase is given at 156I – 157C:
“
What
does emerge from an examination of the authorities, however, seems to
be the following:
1.
What is ordinarily contemplated by the words 'exceptional
circumstances' is something out of the ordinary and of an unusual
nature; something which is accepted in the sense that the general
rule does not apply to it; something uncommon, rare or different;
'besonder', 'seldsaam', 'uitsonderlik', or 'in hoë mate
ongewoon'.
2.
To be exceptional the circumstances concerned must arise out of, or
be incidental to, the particular case.
3.
Whether or not exceptional circumstances exist is not a decision
which depends upon the exercise of a judicial discretion: their
existence or otherwise is a matter of fact which the Court must
decide accordingly.
4.
Depending on the context in which it is used, the word 'exceptional'
has two shades of meaning: the primary meaning is unusual
or
different; the secondary meaning is markedly unusual or especially
different.
5.
Where, in a statute, it is directed that a fixed rule shall be
departed from only under exceptional circumstances, effect will,
generally speaking, best be given to the intention of the Legislature
by applying a strict rather than a liberal meaning to the
phrase, and
by carefully examining any circumstances relied on as allegedly being
exceptional.”
[42]
The court in the matter of
Incubeta
Holding (Pty) Ltd and Another v Ellis and Another
2014 (3) SA 189
(GJ)
at paragraph 24 the court considered
irreparable harm and held:
“
(24] The second
leg of the
s 18
test, in my view, does introduce a novel dimension.
On the South Cape test, No 4 (cited
supra
),
an even-handed balance is aimed for, best expressed as a balance of
convenience or of hardship. In blunt terms, it is asked:
who will be
worse off if the order is put into operation or is stayed. But
s
18(3)
seems to require a different approach. The proper meaning of
that subsection is that if the loser, who seeks leave to appeal, will
suffer irreparable harm, the order must remain stayed, even if the
stay will cause the victor irreparable harm too. In addition,
if the
loser will not suffer irreparable harm, the victor must nevertheless
show irreparable harm to itself. A hierarchy of entitlement
has been
created, absent from the South Cape test. Two distinct findings of
fact must now be made, rather than a weighing-up to
discern a
'preponderance of equities'. The discretion is indeed absent, in the
sense articulated in South Cape. What remains intriguing,
however, is
the extent to which even a finding of fact as to irreparable harm is
a qualitative decision admitting of some scope
for reasonable people
to disagree about the presence of the so-called 'fact' of
‘irreparability'.”
[43]
The Supreme Court of Appeal, in the matter of
Ntlemeza
v Helen Suzman Foundation and Another
2017
(5) SA 402
(SCA)
, said the following at
paragraphs [19] to [21] thereof:
"(19)
In South
Cape Corporation (Pty) Ltd v Engineering Management Services (Pty)
Ltd
1977 (3) SA 534
(A]
at 544H — 545G this court set out
the common-law position as follows: 'Whatever the true position may
have been in the Dutch
Courts, and more particularly the Court of
Holland ... it is today the accepted common law rule of practice ...
that generally
the execution of a judgment is automatically suspended
upon the noting of an appeal, with the result that, pending the
appeal,
the judgment cannot be carried out and no effect can be given
thereto, except with the leave of the court which granted the
judgment.
To obtain such leave the party in whose favour the judgment
was given must make special application ... The purpose of this rule
as to the suspension of a judgment on the noting of an appeal is to
prevent irreparable damage from being done to the intending
appellant, either by levy under a writ of execution or by execution
of the judgment in any other manner appropriate to the nature
of the
judgment appealed from ... The Court to which application for leave
to execute is made has a wide general discretion to
grant or refuse
leave and, if leave be granted, to determine the conditions upon
which the right to execute shall be exercised
... In exercising this
discretion the Court should, in my view, determine what is just and
equitable in all the circumstances,
and, in doing so, would normally
have regard, inter alia, to the following factors: (1) the
potentiality of irreparable harm or
prejudice being sustained by the
appellant on appeal (respondent in the application) if leave to
execute were to be granted; (2)
the potentiality of irreparable harm
or prejudice being sustained by the respondent on appeal (applicant
in the application) if
leave to execute were to be refused; (3) the
prospects of success on appeal, including more particularly the
question as to whether
the appeal is frivolous or vexatious or has
been noted not with the
bona fide
intention of seeking to
reverse the judgment but for some indirect purpose, eg. to gain time
or harass the other party; and (4)
where there is the potentiality of
irreparable harm or prejudice to both appellant and respondent, the
balance of hardship or convenience,
as the case may be. (Authorities
omitted)
(20) In South Cape this
court held that in an application for leave to execute the onus rests
on the applicant to show that he or
she is entitled to such an order.
The court went on to hold that an order granting leave to execute
pending an appeal was one that
had to be classified as being purely
interlocutory and was thus not appealable. There were exceptions to
the rule that purely interlocutory
orders were not appealable. It is
necessary to point out that a number of judgments of this court
relaxed this rule on the basis
that an appeal may be heard in the
exercise of the court's inherent jurisdiction in extraordinary cases
where grave injustice was
not otherwise preventable. In
Philani-Ma-Afrika and Others v Mailula and
Others
2010 2 SA 573
SCA ((2009)
ZASCA
115
) this court considered the position where
a High Court had granted leave to execute an eviction order despite
having granted leave
to appeal. It held the execution order to be
appealable in the interests of justice. It must also be borne in mind
that before
the advent of
s 18
, the position at common law was that
the court had a wide general discretion to grant or refuse an
execution order on the basis
of what was just and equitable whilst
appreciating that the remedy was one beyond the norm.
(21) Until its repeal on
22 May 2015,
rule 49(I
I) of the Uniform Rules read as follows:
'Where an appeal has been noted or an application for leave to appeal
against or to rescind,
correct, review or vary an order of a court
has been made, the operation and execution of the order in question
shall be suspended,
pending the decision of such appeal or
application, unless the court which gave such order, on the
application of a party, otherwise
directs. This was a restatement of
the common law and formed the basis on which applications of this
kind were determined."
[44]
In the
University of Free State v
Afriforum and Another
2018 (3) SA 428
(SCA),
at paragraph 9, the Supreme Court of
Appeal held:
"(9) What is
immediately discernible upon perusing ss 18(1) and (3), is that the
legislature has proceeded from the
well-established premise of the
common law that the granting of relief of this nature constitutes an
extraordinary deviation from
the norm that, pending an appeal, a
judgment and its attendant orders are suspended. Section 18(1) thus
states that an order implementing
a judgment pending appeal shall
only be granted "under exceptional circumstances". The
exceptionality of an order to
this effect is underscored by s 18(4I),
which provides that a court granting the order must immediately
record its reasons: that
the aggrieved party has an automatic right
of appeal; that the appeal must be dealt with as a matter of extreme
urgency and that
pending the outcome of the appeal the order is
automatically suspended. (10) It is further apparent that the
requirements introduced
by ss 18(1) and (3) are more onerous than
those of the common law. Apart from the requirement of "exceptional
circumstances"
in s 18(1), s 18(3) requires the applicant "in
addition" to prove on a balance of probabilities that he or she
"will"
suffer irreparable harm if the order is not made,
and that the other party "will not" suffer irreparable harm
if the
order is made. The application of rule 49(11) required a
weighing-up of the potentiality of irreparable harm or prejudice
being
sustained by the respective parties and where there was a
potentiality of harm or prejudice to both of the parties, a
weighing-up
of the balance of hardship or convenience, as the case
may be, was required. Section 18(3), however, has introduced a higher
threshold,
namely proof on a balance of probabilities that the
applicant will suffer irreparable harm if the order is not granted
and conversely
that the respondent will not, if the order is
granted."
[45]
It is expected from me to consider:
[45.1]
whether or not "exceptional
circumstances" exist; and
[45.2]
whether the Applicant proofed, on a balance of
probabilities:
-
the presence of irreparable harm to the
Applicant; and
-
the absence of irreparable harm to the
Respondents.
Discussion:
[46]
I am guided by the authorities referred to
above and which were provided by the Parties in their Heads of
Argument.
[47]
During his argument before me, Adv Botes, for the
Applicant, argued that the Applicant will suffer irreparable harm if
the order
is not executed while the Respondents will not suffer
irreparable harm, if any. This argument was based on the personal
circumstances
of the Applicant, the unlikeliness of an appeal hearing
in the near future, the value of the farm presenting more than
adequate
security for the Respondents claim and the fact that the
Respondents, at their own hand, were stopped by the Government to
continue
with operations.
[48]
The Respondents argued that the Applicant did not make
out a case on paper that exceptional circumstances exist and that the
Respondents
will not suffer irreparable harm if the order is
executed. The fact that the Respondent will lose their lien and 100
employees
will lose their employment is adequate proof that the
Respondents will suffer irreparable harm.
[49]
I am not going to repeat the arguments of the parties in
this regard as it is scrupulously noted in their respective Heads of
Argument.
[50]
I find the following to be exceptional in this
application:
[50.1]
The Applicant is 79 years of age. It is rare that a man
of his age has to fight a lengthy and expensive legal battle in an
attempt
to retrieve what legally belongs to him;
[50.2]
The Applicant is on the brink of exhausting his life
savings whilst the Respondents present a laid-back attitude claiming
that the
Applicant is “wealthy” and he can afford the
legal battle;
[50.3]
At his age and absent any significant monthly income,
the Applicant will surely not be able to secure a loan at any
financial institution
in order for him to provide security to the
Respondents for the improvement lien they endeavour to enforce
against him. The security
referred to above, was in essence the
condition set by the Respondents to vacate the property of the
Applicant;
[50.4]
The current
status quo
of the Respondent presents an extraordinary situation
i.e.
the Respondents is continuing their daily activities and trades on
the property of the Applicant and in the process earning a
significant income to foot their legal bill. In the same breath, the
Respondents inexplicably refuse to pay rent depriving the Applicant
a
much-needed income. To amplify the situation, the Respondents refuse
ad nauseam
to disclose
whether the rent is indeed held in the trust account of their
attorney and what amount is held; and
[50.5]
The real possibility exists that, if leave to appeal is
granted on petition, the matter will be referred to a Full Court in
this
Division and, if not satisfied with the decision of the Full
Court, the Respondents will in all probability pursue the matter to
the Supreme Court of Appeal. This will take years to conclude. In
view of the Respondents proven track record displaying their
lack of
urgency in dealing with this matter, it can be expected that the
finalisation of the matter will rather be prolonged than
expedited by
the Respondents.
[51]
The matter before me is a typical example where a
litigant, who clearly can afford the litigation, does its utmost best
to exhaust
its opponent to such an extent that his opponent is either
financially ruined or succumbs to the unreasonable and unlawful
demands
of the litigant. Such behaviour is at odds with the values
entrenched in our Constitution and creates an injustice which should
be discouraged by our courts in the strongest terms.
[52]
I further find that the Applicant will suffer
irreparable harm should I refuse to grant the order in terms of
Section 18(3). The
Applicant will, in all probability, loose
everything he acquired through hard work during his entire life.
[53]
I also find that the Respondents will not suffer
irreparable harm should my order be executed. My conclusion is based
on the following:
[53.1]
The
Respondents is not in lawful possession of the property as the lease
agreement was lawfully terminated;
[53.2]
The Respondents are still operating the abattoir
business on the premises of the Applicant undeterred even though our
law prohibits
such actions. To claim that the employees of the
Respondents stand to lose their employment, holds no water. If any
harm is suffered
in this regard, same will be self-inflicted;
[53.3]
The current illegal operations of the Respondents were
in any case stopped by the Department of Agriculture and Rural
Development
due to their own actions or rather lack thereof. This
situation is also self-inflicted;
[53.4]
The Respondents were willing to pay R 20 million for the
property of the Applicant. I agree with the contention by the
Applicant
that the Respondent will have more than adequate security
to execute their claim for unjust enrichment against the Applicant
should
the Respondents be able to proof their claim.
[54]
In view of the above, the application in terms of
Section 18(3)
of the
Superior Courts Act should
therefor succeed.
COSTS:
The
obstructive and abusive demeanour of the Respondents:
[55]
When considering a just cost order, this Court is guided
by caselaw in general and specifically the matter of
Public
Protector v South African Reserve Bank
[2019] ZACC 29
where
the Constitutional Court dealt with punitive cost orders.
[56]
I already dealt with the delaying actions by the
Respondents leading up to the initial application in my judgment in
paragraphs
25 and 54.
[57]
On 5 October 2023, the Applicant forwarded a letter to
the Respondents requesting a site inspection and that the retained
funds
for the lease of the property be transferred to the trust
account of the Applicant’s attorneys of record.
[58]
No response was forthcoming which prompted the
Applicant’s attorneys to forward a second letter on 9 October
2023 requesting
a response to the letter of 5 October 2023.
[59]
Only then, on 9 October 2023, the Respondents’
attorneys reacted informing the Applicant that a meeting with the
Respondents
was scheduled for the 10th of October 2023.
[60]
On 11 October 2023 the Applicant’s attorneys had
to enquire once again with regards to the outcome of the meeting on
10 October
2023 before receiving a reaction from the Respondents’
attorneys. The response was
inter alia
as follow:
“
. .
.
After
careful consideration and deliberation have we have been instructed
to proceed with a formal Appeal as provided for by
Rule 49.
(
sic
)
.
. .
In
conclusion, confirm that
our clients appeal will follow
imminently, well within the prescribed time period.
”
(My emphasis)
[61]
The Respondents filed the application for leave to
appeal on the very last day allowed by the Rules of this Court.
[62]
When the date was arranged for the applications to be
heard (26 March 2024), this Court issued two directives to the
parties
i.e.
that all
the relevant documents regarding the applications should be uploaded
onto CaseLines by 16 March 2024 and the Heads of
Argument by 23 March
2023.
[63]
The parties adhered to the 16 March deadline but the
Respondents, once again, did not adhere to the 23 March deadline. The
Heads
of Argument of the Respondents was only settled and uploaded
onto Caselines on 25 March 2024.
[64]
Although Adv Raubenheimer, for the Respondents,
apologised for the late filing of the Heads as he was not aware of my
directives,
I find the apology insincere as the Respondents must have
been aware of the deadlines because the Respondents adhered to the
first
deadline.
[65]
The Respondents tendency to stall proceedings is
unacceptable and borderline contemptuous.
[66]
I regard the behaviour of the Respondents, prior and
throughout the proceedings before me, as obstructive, vexatious,
mala
fide
and an abuse of process. This Court’s
displeasure will be reflected in the order to follow.
ORDER
:
[67]
Having considered the affidavits by the parties, the
heads of argument, arguments by the parties in court, the relevant
caselaw
and after having applied my mind, I make the following order:
[67.1]
Condonation for the late filing of the replying
affidavit by the Applicant is granted;
[67.2]
The First, Second, Third, Fifth and Sixth Respondents'
application for leave to appeal is dismissed;
[67.3]
The operation and execution of the order granted by this
Court on 27 September 2023 in terms whereof the First, Second, Third,
Fifth
and Sixth Respondents were ordered to vacate the immovable
property known as Portion [...] (a Portion of Portion [...]) of the
F[...] R[...] [...], Registration Division [...], Gauteng Province,
held under Deed of Transfer T17358/1995, 206,5964 hectares
(hereinafter referred to as "the property"), shall not be
suspended pending the finalisation of the application for leave
to
appeal and subsequent applications/petitions for leave to appeal;
[67.4]
The order granted by this Court on 27 September 2023
shall be implemented and the First, Second Third, Fifth and Sixth
Respondents
are ordered to vacate the property within 30 days from
date of granting of this order;
[67.5]
In the event that the First, Second Third, Fifth and
Sixth Respondents fail to vacate the premises in terms of paragraph
67.4
supra
, the
Sheriff of this Court and/or his/her Deputy is authorised and
mandated to execute this order and to evict the First, Second
Third,
Fifth and Sixth Respondents from the property and to obtain the
assistance of the South African Police Services to assist
him/her in
this regard, if necessary;
[67.6]
The
First, Second Third, Fifth and Sixth Respondents, are ordered to pay
the costs of the application for leave to appeal and the
Applicants'
application in terms of
section 18(3)
of the
Superior Courts Act, 10
of 2013
, on an attorney and client scale jointly and severally,
the one paying the others to be absolved
pro
tanto
, on a scale as between attorney and
client, including the costs consequent upon the employment of 2 (two)
counsel.
BURGER AJ
ACTING
JUDGE OF THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
FOR THE
APPLICANT: ADV FW BOTES SC
ASSISTED
BY:
ADV R DE LEEUW
INSTRUCTED
BY:
VDT ATTORNEYS
FOR THE
RESPONDENTS: ADV R RAUBENHEIMER
INSTRUCTED
BY:
CJ WILLEMSE & BABINSKY
ATTORNEYS
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