Case Law[2024] ZAGPPHC 1184South Africa
Black Royalty Minerals Koornfontein (Pty) Ltd v Sheriff, Middelburg and Another (2024/008520) [2024] ZAGPPHC 1184 (22 November 2024)
High Court of South Africa (Gauteng Division, Pretoria)
22 November 2024
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form;
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Black Royalty Minerals Koornfontein (Pty) Ltd v Sheriff, Middelburg and Another (2024/008520) [2024] ZAGPPHC 1184 (22 November 2024)
Black Royalty Minerals Koornfontein (Pty) Ltd v Sheriff, Middelburg and Another (2024/008520) [2024] ZAGPPHC 1184 (22 November 2024)
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sino date 22 November 2024
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE NO: 2024-008520
(1)
REPORTABLE:
NO
(2)
OF INTEREST TO OTHER JUDGES:
NO
(3)
REVISED:
✔️
22
November 2024
In
the matter between:
BLACK
ROYALTY MINERALS KOORNFONTEIN (PTY) LTD.
APPLICANT
And
THE
SHERIFF, MIDDELBURG
FIRST
RESPONDENT
KWIKSPACE
MODULAR BUILDINGS (PTY) LTD.
SECOND
RESPONDENT
JUDGMENT
THOBANE AJ,
Introduction
[1] On
24 October 2023 in this court the second respondent obtained an order
before Dlamini J, (the Dlamini J
order), having commenced proceedings
in July 2023, against an entity called Black Royalty Minerals (PTY)
LTD, different to Black
Royalty Minerals Koornfontein (PTY) LTD (the
applicant in this matter), under Case Number: 047548-2023. The
Dlamini J order directed
the following in summary form;
1.1.
that the respondent and all persons holding under it, is ordered to
vacate modular buildings, situated at Koornfontein Mines,
‘
which
modular buildings were described in detail in the order and which I
have come to know are simply prefabricated buildings or
structures’
(the italics are my emphasis);
1.2.
that the respondent and all persons occupying the modular buildings,
vacate on or about 1 November 2023 failing which the Sheriff
for the
area within which the modular buildings are situated be authorised to
evict the respondent and all persons holding occupation
under it;
1.3. that the respondent
is directed to disconnect all active and inactive services connected
to the modular buildings;
1.4. that the respondents
return the modular buildings to the applicant;
1.5. that the respondent
pays the costs on attorney and client scale.
[2]
Having obtained the Dlamini J order, the applicant in that matter and
the second respondent in this one, through
the sheriff, served the
order on the party or entity against whom the order was obtained, who
happen to share the same registered
address as the applicant in this
matter, on 25 November 2023.
[3] On
25 January 2024, representatives of the second respondent, the
Sheriff of Middelburg as well as the SAPS
went to Koornfontein Mine,
where the modular buildings are situated, most importantly, where the
court order directed them to go,
for purposes of executing the order.
It is the visitation of the aforementioned persons at the mine that
jostled the applicants
into action, that of launching an urgent court
application.
[4]
The urgent application was not without challenges. On 6 February 2024
it was removed from the urgent roll
by Davis J as it was not loaded
onto the digital platform, CaseLines. On 14 February 2024 the urgent
application was struck from
the urgent court roll by Mkhabela AJ for
want of urgency and costs were awarded against the applicant on
attorney and client scale.
[5] The
fact that the matter was struck from the roll for want of urgency,
meant that the applicant could have
another bite at the proverbial
cherry. Inevitably, the matter served again in the urgent court and
came before Nyathi J, who having
heard the parties prepared a
detailed written judgment setting out the history of the matter,
briefly the facts, but most importantly
the reasons for his order.
Nyathi J, dismissed the matter for want of urgency and directed the
applicant to pay costs on attorney
and client scale. The applicant
realised that a third bite at the cherry was in the offing, in that
dismissal on urgency meant
the matter could be re-enrolled on the
normal opposed roll, hence the current application.
Facts
[6] In
the joint practice note the parties identify the following issues as
common cause and they also identify
issues for determination;
Common cause
•
The
second respondent obtained judgment and order against Black Royalty
Minerals (Pty) Ltd on 24 October 2023.
•
The
applicant and Black Royalty Minerals (Pty) Ltd are two separate legal
entities.
•
The
applicant was not party or joined in the proceedings instituted by
the second respondent.
Issues for
determination
Whether
the first and second respondents are authorised and empowered to
execute a judgment and order against a party not mentioned
in the
said judgment nor a party who is neither party to legal proceedings.
As well as costs of the proceedings.
[7] The
framing of the case for determination, by the applicant is not so
accurate. The second respondent approached
the court as per the above
summary and obtained an order before Dlamini J. The order obtained
was not against the applicant in
this matter. The applicant laments
the fact that they were not joined or cited in those proceedings and
that as a party with a
direct and substantial interest in the matter,
they ought to have been. The applicant seeks to argue that there is
no reason why
a party who was not part of the proceedings should be
at the receiving end of the order of Dlamini J. Counsel submitted
that vigilantism
should not be permitted and that the rule of law
should be permitted to prevail. He argued that there ought to be a
stay of proceedings
until a joinder is permitted. He argued that
allowing that process, that of joinder, to eventuate would be
permitting due process
to take place.
[8]
Counsel for the second respondent submitted that there is no
vigilantism to speak of as alleged by the applicant.
The second
respondents went to court and obtained an order. When the second
respondent and the sheriff went to the property it
was not even to
remove the pre-fabricated buildings. They firstly wanted to confirm
that the structures were still there at Koornfontein
Mine, even
though the order obtained was wide enough and says the structures
could be removed wherever found. He pointed out that
the applicant
was vague about whether the pre-fabricated material was in their
possession. He also argued that one cannot in legal
proceedings join
a party they do not know. He submitted that the applicant does not
have
locus standi
and in addition did not deal with the facts
of the case specifically. Many paragraphs in the second respondents
opposing affidavit
went unanswered and the applicant failed to give
clear particularity when it was required.
[9]
Nyathi J made damning findings in his judgment. Among others the
following findings were made;
“
[20]
The applicant's emphasis of a distinct legal persona between the two
companies and the director is obviously contrived as a
stratagem to
evade obligations arising from the court order.
[21] Whilst the applicant
submitted that there is no subsidiary relationship between the two
entities under discussion, it is undeniable
that there is a very
proximate corporate consanguinity between them. When two companies
share premises and where board members
serve on both entities, the
potential for a conflict of interest becomes unavoidable; in this
particular case, even deliberate.
[22] The court order
itself or its validity is not challenged by the applicant. Nothing is
said about the subject matter of the
court order, namely, the modular
units and their whereabouts by the applicant. As the court order
remains valid, it should be carried
out by the respondents without
any hindrance by the applicant or the so called third party.
[23] This court shall not
allow itself to be utilized for the advancement of technical and
peculiar defences which are by apparent
design or effect aimed at
defeating the ends of justice…”
[10] The insistence
by the applicant that they should have been joined to the court
proceedings while not admitting to being
in possession of the modular
units and at the same time stating that they have a direct interest
in the subject matter of the Dlamini
J order is indeed odd. Equally
odd is the decision to leave the order in place and not challenge it,
while disagreeing with it.
The reality though is that until
challenged and set aside, the order will stand and can be executed.
[11] The facts of
the case are very briefly set out above and are not as framed by the
applicant in the notice of motion and
the founding affidavit. The
applicant frames the matter from the time they became aware of the
judgment that was obtained before
Dlamini J. That however is not the
correct historical perspective. The correct one, begins when the
second respondent entered into
an agreement for the lease of the
modular unit with Black Royalty Minerals (Pty) (Ltd) (not the
applicant in this matter) who thereafter
defaulted on that agreement.
The second respondent then instituted legal action, motion
proceedings, against that entity to vindicate
its rights and to get
back the modular units that belonged to it. As I understand things,
the application before Dlamini J, which
was not opposed was precisely
about vindication. In any event it needs no repeating for the order
speaks for itself.
[12] Very early
during argument counsel for the applicant posed two questions,
namely; whether a party who is not mentioned
in an order can be
executed against and secondly, whether can an attachment be made
without an order. The propositions mentioned
by counsel are detached
from and not consistent with the facts of the matter as well as to
the order of Dlamini J. The order of
vindication is directed at Black
Royalty Minerals (Pty) (Ltd), as the possessor of the modular units
as well as any other person
or entity who possess them through Black
Royalty Minerals. It seems to me self-evident that if the applicant
came into possession
of the modular units through Black Royalty
Minerals (Pty) (Ltd), something they have deftly avoided to mention,
the reach of the
order will engulf them. Therefore, the answer to the
first question is in the affirmative. Even if not specifically
mentioned by
name in the order, provided they possess the modular
units through Black Royalty Minerals, they can be executed against.
This the
applicant knows, which is why he was noncommittal about
being in possession of the modular units, choosing instead to make
vague
allegation such as the following;
“
The
Applicant seeks an order to interdict and restrain both the First and
Second Respondents and all their representatives, officials,
employees, agents, and/or personnel from acting and executing,
wrongfully on the Applicant, an order granted by the Honorable
Dlamini J on 24 October 2023 against a third party who is not the
Applicant, and/or unlawfully entering the premises of the Applicant
and/or unlawfully intimidating and harassing the Applicants'
representatives, agents, personnel and employees within and/or around
the premises of the Applicant situated at Koornfontein Mines on
Hendrina Road R542, Middleburg, Mpumalanga Province.”
[13] The second
question is even more bizarre because in this matter there is an
order, that of Dlamini J. Therefore, to pose
the question whether one
can attach without an order when one exists, is strange. The fact
that the order does not mention the
applicant does not mean that no
order exists. If both questions were posed to drive the point home
that there was some vigilantism
taking place, then they fail dismally
in doing so.
Costs
[14]
The general rule in costs matters is that the successful party gets
costs awarded in his/her favour. It is usually couched
along the
terms that ‘
costs
follow the result’
.
Counsel for the second respondent asked the court to award costs
against the applicant on Scale C on the one hand and on the other
counsel for the applicant asked that costs be awarded in applicant’s
favour. The issue of costs is a matter for the discretion
of a trial
court. Smalberger JA elaborated on the nature of this discretion as
follows (in different context,) in
Intercontinental
Exports (Pty) Ltd v Fowles
[1]
at
para 25:
“
The
court’s discretion is a wide, unfettered and equitable one. It
is a facet of the court’s control over the proceedings
before
it. It is to be exercised judicially with due regard to all relevant
consideration. These would include the nature of the
litigation being
conducted before it and the conduct before it and the conduct of the
parties (or their representatives). A court
may wish, in certain
circumstances, to deprive a party of costs, or a portion thereof, or
order lesser costs than it might otherwise
have done as a mark of its
displeasure at such party’s conduct in relation to the
litigation.”
[15]
It is trite that the awarding of punitive costs on the scale as
between attorney and client, is more than mere punishment
of the
losing party. Tindall JA explained it as follows in
Nel
v Waterberg Landbouwers v Ko-operatiewe Vereeniging
[2]
:
“
[t]he
true explanation of awards of attorney and client costs not expressly
authorised by Statute seems to be that, by reason of
special
consideration arising either from the circumstances which give rise
to the action or from the conduct of the losing party,
the court in a
particular case considers it just, by means of such an order, to
ensure more effectually than it can do by means
of a judgment for
party and party costs that the successful party will not be out of
pocket in respect of the expense caused to
him by the litigation.”
[16] In the
exercise of my discretion on costs, I have taken the following into
account;
16.1. Firstly, the
applicant in this matter went to the urgent court three times and
each time the outcomes were not in its favour.
The first time it was
before Davis J on 06 February 2024, when the matter was removed by
notice as it was not on CaseLines. No
costs order was made. The
second time the matter came before Dlamini J on 14 February 2024 when
it was struck from the roll for
want of urgency. The applicant was
mulcted with costs on attorney and client scale for two days, the
13th and the 14
th
February 2024. The third time the matter
came before Nyathi J on 27 February 2024 who dismissed it for want of
urgency and awarded
punitive costs against the applicant in favour of
the second respondent;
16.2. Secondly, the
applicant relied on vague and at times unsubstantiated statements and
allegations in its application;
16.3. Thirdly, the
applicant skirted the most important issue in the proceedings,
namely; whether the modular units were in fact
in its possession so
that the second respondent could execute the order it obtained;
16.4. Fourthly, the court
(Nyathi J) made the following damning findings;
16.4.1. that the
applicant used contrived arguments as a stratagem to evade
obligations arising from the order of Dlamini J;
16.4.2. that the
applicant deliberately hid behind a conflict of interest;
16.4.3.
that the applicant utilised, to advance its case, technical and
peculiar defences which are by apparent design or effect
aimed at
defeating the ends of justice.
[17] This court
must express its displeasure at the manner in which the applicant
went about in handling this matter. I am
of the view that a punitive
costs order is warranted.
Order
[18] The following
order is made;
1. The application is
dismissed;
2. The
applicant is directed to pay the second respondent
’
s
costs on Scale C.
SA
THOBANE
ACTING
JUDGE OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
APPEARANCES:
For
Applicant:
Adv
M C Ntshangase
Instructed
by:
Mavhungu-Masibigiri
Inc
Pretoria
For
Respondent:
Adv
S Mulligan
Instructed
by:
Nixon
and Collins Attorneys
Pretoria.
Date
of the hearing:
10
June 2024
Date
of judgment:
22
November 2024
This
judgment was handed down electronically by circulating to the
parties’ legal representatives by e-mail, by being uploaded
to
the CaseLines platform of the Gauteng Division and by release to
SAFLII. The date and time of hand down is deemed to be 10:00
on 22
November 2024.
[1]
Intercontinental Exports (Pty) Ltd v Fowles
1999 (2) SA 1045
(SCA)
.
[2]
Nel
v Waterberg Landbouwers v Ko-operatiewe Vereeniging
1946 (1) AD 597
at 607
.
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