Case Law[2024] ZAGPPHC 1243South Africa
B.M and Another v M.P and Another (78652/2015) [2024] ZAGPPHC 1243 (25 November 2024)
High Court of South Africa (Gauteng Division, Pretoria)
25 November 2024
Headnotes
Summary: Rescission of judgment. Attorney entered into a “compromise” without a knowledge and consent of the affected client. Such an agreement is invalid and unenforceable against the client. The unknown settlement agreement was made an order of Court. Had the Court known that the agreement is invalid and unenforceable as against the affected parties, it would not have made the said alleged agreement an order of Court. Accordingly, the impugned order was erroneously sought and granted within the contemplation of Rule 42(1)(a) of the Uniform Rules of Court. Held: (1) The order of Fourie J is hereby rescinded. Held: (2) There is no order as to costs.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## B.M and Another v M.P and Another (78652/2015) [2024] ZAGPPHC 1243 (25 November 2024)
B.M and Another v M.P and Another (78652/2015) [2024] ZAGPPHC 1243 (25 November 2024)
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sino date 25 November 2024
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REPUBLIC OF SOUTH
AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
Case
Number: 78652/2015
(1) REPORTABLE: NO
(2) OF INTEREST TO OTHER
JUDGES: NO
(3) REVISED: NO
DATE: 25/11/24
SIGNATURE
In the matter between:
B[...]
N[...] M[...]
First Applicant
K[...]
J[...] M[...]
Second Applicant
and
M[...]
B[...] P[...]
First Respondent
H[...]
S[...] P[...]
Second Respondent
Delivered:
This judgment was prepared and
authored by the Judge whose name is reflected and is handed down
electronically by circulation to
the parties/their legal
representatives by e-mail and by uploading it to the electronic file
of this matter on Caselines. The date
for hand-down is deemed to be
25 November 2024.
Summary: Rescission of
judgment. Attorney entered into a “compromise” without a
knowledge and consent of the affected
client. Such an agreement is
invalid and unenforceable against the client. The unknown settlement
agreement was made an order of
Court. Had the Court known that the
agreement is invalid and unenforceable as against the affected
parties, it would not have made
the said alleged agreement an order
of Court. Accordingly, the impugned order was erroneously sought and
granted within the contemplation
of Rule 42(1)(a) of the Uniform
Rules of Court. Held: (1) The order of Fourie J is hereby rescinded.
Held: (2) There is no order
as to costs.
JUDGMENT
MOSHOANA, J
Introduction
[1]
Before me is an application in terms of
which, Mr B[...] N[...] M[...] and his wife, Mrs K[...] J[...] M[...]
(hereafter “the
applicants”) seek to have an order
obtained on 25 February 2020 in their absence rescinded. The
application was launched
on 27 July 2020. It is with considerable
regret to acknowledge that the present application was heard in Court
after four years
of its launch. The impugned order made by Fourie J,
which affects the applicants, was to the following effect: -
“
As
the parties have come to an agreement
,
the following order is made:
i.
The Applicants claim is dismissed;
ii.
The Applicants are ordered to pay the
Respondents an amount of R155 827.39 in full and final
settlement of the counter claim
as instituted by the Respondents;
iii.
The Applicants will pay the amount of
R155 827.39 within 90 days from the date of this order.
iv.
The Respondents will vacate the property
currently registered in the names of the Applicants within 7 days
upon receiving payment
of the capital amount of R155 827.39
together with the Respondents taxed and or agreed costs;
v.
The Applicants is (sic) ordered to pay the
Respondents taxed and or agreed costs.
[2]
The present application is opposed by the
respondents. The legal representative of the applicants withdrew on 3
February 2023. Whereafter,
the applicants were without legal
representation. When the application emerged before me, after having
been enrolled by respondents,
the applicants appeared in person. The
services of a Court interpreter were enlisted to ensure that they
present their case to
Court as
dominis
litis
.
Relevant factual
matrix
[3]
The engrossing feature of the factual
matrix of the present application is that two families agreed to
literally swop residential
places. At the one residential place
building improvements were to be effected. The improvements were not
done in full. Failure
to do so drove a wedge in the relationship of
the two families. The applicants and the P[...]s (Mr M[...] B[...]
P[...] and H[...]
S[...] P[...]) are the involved families.
[4]
Owing to collapse of a relationship between
the two families, the applicants demanded that the P[...]s must
vacate their property
occupied by them on account of the informal
swop. The P[...]s contended that, having made improvements on the
property, the applicants
must pay them some money before they could
vacate. A stalemate was reached, which prompted the applicants to
launch eviction proceedings
against the P[...]s. The P[...]s in
return launched a counter-claim seeking to be recompensed for the
improvements effected on
the property registered in the name of the
applicants. The eviction application was instituted on 13 October
2015.
[5]
Litigation over the eviction and the
counterclaim proceeded on a snail’s pace since 2015.
Ultimately, pertinent to the present
application, on or about 26
February 2018, one Mr M E Matolo of Matolo Makgele & Partners,
purporting to act on the instructions
of the applicants, wrote
amongst others the following:
“
3
For the sake of progress and a speedy closure of the matter,
we
choose to accept 99.9% of your counter proposal set out in your
letter dated 5
th
February 2018. That is to say; payment of your preferred R52 490.30
for the roofing is accepted in order to bring the total
amount due to
R155 827.39
as set out on
paragraph 8 of your letter of your 5 February 2018 letter.
4
We also accept
4.1
to pay for the fees to be incurred for reinstatement of the
municipality’s water and
lights as suggested on paragraph 9 of
your 5 February 2018; and
4.2
to clean the respondents’ yard as suggested on paragraph 10 of
your 5 February 2018
letter.
5
As a compromise on your clients’ part, we plead with them,
with
your advice, to abandon any claim pertaining to the kitchen sink and
water pump. The reasons being that those items do not
feature on the
pleadings and our clients had already stated that the items were not
left with them.
6
In conclusion, we have made the compromises highlighted above
as a
‘negotiating in good faith gesture’ that all the parties
should demonstrate in order to reach finality. It is
a ‘give
and take’ type of scenario that all the parties should do for
the matter to be resolved amicably.
We
will await your reply urgently so that a settlement agreement could
be drafted and signed before the end of February 2018.”
[6]
This Court interpose to remark that the
letter is replete with the royal “we”. This Court can
only surmise that it references
the applicants. However, it is
unclear whether the royal “we” was the applicants. On 28
February 2018 at 12;40 PM,
one Mr Jacques Viljoen (Mr Viljoen) of
Bhika Calitz Inc, dispatched an email, to m[…] and recorded
the following:
“
Good
day,
We refer to the
abovementioned matter.
We confirm that it is our
instruction to
accept the settlement agreement.
Regards.”
[7]
This Court must interpose again to remark
that the letter of 26 February 2018 stated that a settlement
agreement would be drafted
and signed. The above email refers to
accepting the settlement agreement. It is common cause that no
settlement agreement was ever
drafted and signed as proposed. There
was a lull of over a period of two years. On 7 February 2020, Mr
Viljoen forwarded an e mail
to a[….] enclosing; a filing
sheet; practice note; notice of set down, setting the matter on the
roll for 24 February 2020.
Of particular interest, the practice
notice filed by Mr Kruger, counsel for the P[...]s, mentions nothing
about an agreement to
settle the matter. It only indicated that what
will serve before the opposed motion Court is the eviction and the
counterclaim.
[8]
On 20 February 2020, Matolo Makgele &
Partners withdrew as attorneys of record for the applicants. On 24
February 2020, the
applicants were not present in Court. On the
version of the P[...]s, the following transpired in the absence of
the applicants:
“
18.2
Counsel for the second respondent argued the matter and specifically
pointed the settlement agreement (referred
to above and constituted
by “MBP1” and “MBP2”) out to his Honourable
Justice Fourie J;
18.3
The Honourable Justice Fourie was
not
entirely satisfied with the letter
from
Matolo Makgele and Partners and requested a signed copy of the letter
be handed up. For this purpose, the matter was stood
down until 25
February 2020;
18.4 On
25 February 2020, a signed copy of the letter of Matolo Makgele and
Partners, dated 26 February 2018 was
handed up and the order made,
which the applicants seek to set aside.”
[9]
This Court interposes to remark that, the
P[...]s do not indicate whether an unsigned letter was handed up for
Fourie J’s
attention, hence a request for a signed copy.
Nevertheless, when the letter was allegedly handed up on 25 February
2020, the applicants
were not present in Court and clearly unaware of
the date of 25 February 2020.
Evaluation
[10]
As the Court order indicates, it was
allegedly taken by agreement between the parties. This is what Fourie
J was told by counsel
for the P[...]s. It is not an order granted by
the Court upon consideration of the merits and the demerits of the
eviction and
the counter-application. Rule 42(1)(a) of the Uniform
Rules of this Court empowers this Court, on application, to rescind
an order
that was erroneously sought and granted in the absence of
the affected party.
[11]
It is common cause that on 24 and 25
February 2020, the applicants were absent. The attorney of record had
withdrawn five days ago.
There is no evidence that after the
withdrawal, an attempt was made to notify the applicants of the date
of 24 February and most
importantly the 25 February 2020.
Had Fourie J been told
that the order is not by agreement would the order have been made?
[12]
Certainly, had Fourie J been told that the
order is not by agreement, he would not have made the impugned order.
Thus, the order
was firstly sought in error and secondly granted in
error. Before this Court considers the question whether there was a
settlement
agreement or not, it is apposite to state that, on the
assumption that the letter of 26 February 2018 was written with a
mandate
or consent of the applicants, nothing in that letter is
stated that the applicants agreed that their claim be dismissed nor
that
they will bear the costs of litigation. What remains perturbing
is that on the version of the P[...]s by 28 February 2018 the
eviction
and the counterclaim were settled. In law a compromise or
settlement extinguishes a claim. That being the case, why would the
P[...]s
proceed to enrol an extinguished claim on the opposed roll?
Their own counsel does not in the practice note state that the claims
were extinguished through a compromise. Where a claim is extinguished
by a compromise, the only competent matter that may be brought
to
Court is to make such a compromise an order of Court if the settled
lis
was
pending before Court.
[13]
To my mind, the conduct of the P[...]s and
their legal team is indicative of the fact that the
lis
was not settled. If it was, the practice note of counsel would have
indicated that on 24 February 2020, what would be happening
was to
make the compromise an order of Court. These concerns makes the
version of the P[...]s that the
lis
was settled far-fetched and this Court is in a position to reject it
on the papers, this being motion proceedings.
Was Matolo Makgele and
Partners (Matolo) mandated to settle?
[14]
The
applicants deny having mandated Matolo to settle the case on their
behalf. It is strange for a party in a normal litigation
to agree to
have its claim dismissed. Ordinarily, a party may instead agree to
withdraw a claim, in which event a notice of withdrawal
accompanied
by a tender of wasted costs is served and filed. As already
indicated, nowhere is it indicated that Matolo was mandated
to have
the claim of the applicants dismissed better still to pay litigation
costs. In
MEC
for Economic Affairs, Environment & Tourism, Eastern Cape v
Kruizenga and Another
(
Kruizenga
)
[1]
,
the learned Cachalia JA writing for the majority stated the
following:
“
[7]
It is settled law that a client’s instruction to an attorney to
sue or to defend a
claim does not generally
include
the authority to settle or compromise a claim
or
defence
without the client’s
approval
.
[15]
It is common cause that the applicants did
not approve the offers made on their behalf by Matolo on 26 February
2018. In the letter,
Matolo expressly stated that a settlement
agreement will still be drafted and signed. This clearly meant that
the validity of offers
made is dependent on a written and signed
agreement. What Viljoen accepted as a settlement agreement must be
referring to agreeing
to have a settlement agreement drafted and
signed by the parties. Since no written agreement was drafted and
signed in law there
is no valid agreement to settle.
[16]
On 22 July 2020, Matolo in a letter
addressed to Hedrik Grobbler Attorneys, who withdrew as an attorney
of record for the applicants
in 2023, only suggested that he informed
the applicants about the date of 24 February 2020 and he says nothing
about the mandate
or authority for him to settle the matter one way
or another. Instead he recorded the following:
“
(f)
The idea of selling the property was to do that in consultation with
the respondent’s
attorneys to circumvent a court process which
will enable the clients to
make
settlement to the respondents
.”
[17]
Regard
being had to the facts of this case, it cannot be said that Matolo
had an ostensible authority from the applicants to settle
the case.
What he allegedly agreed to on their behalf, is clearly outside the
“aura of authority”. An attorney does
not act in the best
interest of his or her client to agree that a client’s claim be
dismissed and also be ordered to pay
legal costs and money
[2]
.
[18]
Accordingly,
this Court concludes that, as contended by the applicants, Matolo was
not mandated and or authorised to settle on behalf
of the applicants.
As to what happened in Court on 25 February 2020 is not clear. It
must be so, that counsel for the P[...]s informed
Fourie J that the
signed letter, produced later, represented that Matolo, as mandated,
settled the case on behalf of the applicants.
Regard being had to the
facts of this case, as well as the contents of the letter in
question, it cannot be so that Matolo was
mandated or authorised to
settle. In that letter, at various places Matolo uses the royal “we”
when making offers.
Nowhere, does the letter specifically state that
the applicants mandated him to do what he was doing. In
Minister
of Police v Van der Watt and Another
(
Van
der Watt
)
[3]
the
following was stated:
“
[16]
…Here it is common cause that the Minister was
legally
represented by the State Attorney when the impugned orders were
granted by Ledwaba DJP and Louw J…”
[19]
In
casu
,
when the order was obtained, Matolo was not even there to confirm
that the letter was drafted and signed by him and most importantly
that he had the necessary authority to settle on behalf of the
applicants. It can only follow that the order was made on the
strength
of the say-so of the P[...]s’ counsel
Conclusions
[20]
As held in
Van
der
Watt
,
Rule 42(1)(a) is available only to a party in whose absence the order
sought to be rescinded was either erroneously sought or
erroneously
granted. In this matter, it is beyond question that the applicants
were not present on 25 February 2020 when the order
suggesting an
agreement on their part was taken. Had Fourie J known that there is
no agreement as alleged, an order would not have
been made.
Accordingly, the impugned order was sought and granted erroneously.
As a result the application must succeed.
[21]
With regard to costs, this Court retains a
wide discretion. The appropriate order to make is that of each party
paying its own costs.
[22]
For all the above reasons, I make the
following order:
Order
1.
The order made by Fourie J on 25 February
2020 is hereby rescinded.
2.
Each party must pay its own costs.
GN MOSHOANA
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
PRETORIA
APPEARANCES:
For the
Applicants:
In Person
For the
Respondents:
Mr JHF le Roux
Instructed
by:
Bhika Calitz Inc, Randfontein.
Date of the
hearing:
18 November 2024
Date of
judgment:
25 November 2024
[1]
[2010]
4 All SA 23
(SCA) at para 7
[2]
See
Kunene
and others v Minister of Police
(260/2020)
[2021] ZASCA 76
(10 June 2021)
[3]
(1009/2021)
[2022] ZASCA 114
(21 July 2021)
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