Case Law[2023] ZAGPPHC 1807South Africa
Road Accident Fund v Madiba and Others (2023/088679) [2023] ZAGPPHC 1807 (18 October 2023)
Headnotes
the RAF forms “part of the social security net for all road users and their depend[a]nts”. In addition, the Full Bench of this Court held in RAF v LPC[3] that compensation by the RAF is a vehicle which the state uses to meet its constitutional duty in terms of s 12(1)(c) read with s 7(2) of the Constitution of the Republic of South Africa, 1996, to protect road users against the risk of infringement of the right to freedom and security of their persons.[4]
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: North Gauteng High Court, Pretoria
South Africa: North Gauteng High Court, Pretoria
You are here:
SAFLII
>>
Databases
>>
South Africa: North Gauteng High Court, Pretoria
>>
2023
>>
[2023] ZAGPPHC 1807
|
Noteup
|
LawCite
sino index
## Road Accident Fund v Madiba and Others (2023/088679) [2023] ZAGPPHC 1807 (18 October 2023)
Road Accident Fund v Madiba and Others (2023/088679) [2023] ZAGPPHC 1807 (18 October 2023)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAGPPHC/Data/2023_1807.html
sino date 18 October 2023
FLYNOTES:
RAF – Writ of execution – Interdict –
Fund
seeks to stay operation of writs and to interdict sheriff from
removing or selling its property – Mr Madiba and
his firm
represent plaintiffs claiming from Fund – Alleged that Mr
Madiba is involved in forgery of claimants' signatures,
representation of claimants without those their knowledge and
altering accident reports in order to lodge claims –
Pending
outcome of Part B Mr Madiba and his firm are interdicted from
executing the writs of execution and sheriff is interdicted
from
removing or selling Fund’s movable property.
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
CASE
NO: 2023/088679
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: YES
(3)
REVISED: NO
Date:
18 October 2023
In
the matter between:
THE
ROAD ACCIDENT FUND
Applicant
and
NTSHOSA
PHINEAS MADIBA
First
Respondent
NTSHOSA
PHINEAS MADIBA INCORPORATED
Second
Respondent
THE
SHERIFF, PRETORIA EAST
Third
Respondent
THE
LEGAL PRACTICE COUNCIL
Fourth
Respondent
JUDGMENT
# DE VOS AJ
DE VOS AJ
[1]
The applicant, the Road Accident Fund (“the RAF”) seeks
urgent interim relief to stay the
operation of all the writs issued
at the instance of the first and second respondents. The first
respondent is Mr Madiba, who practices
as an attorney under the style
and name of the second respondent. Mr Madiba is the director of the
second respondent. The first
and second respondents will be referred
to interchangeably as Mr Madiba and Mr Madiba’s firm. Mr Madiba
and his firm represent
plaintiffs who wish to claim damages from the
RAF. The writs are to execute on court orders obtained by Mr Madiba
and his firm,
on behalf of their clients, against the RAF.
[2]
The RAF also seeks to interdict the third respondent (“the
Sheriff”) from removing the RAF’s
movable property or
selling the RAF’s property pursuant to any writ of execution
issued, or which may be issued in future,
at the instance of Mr
Madiba or his firm against the RAF.
[3]
The RAF explains that the present application is another instalment
in a saga which has ensued between
the RAF and Mr Madiba since at
least 2020. In sum, the RAF alleges that Mr Madiba is involved in the
forgery of claimants' signatures,
the representation of claimants
without those claimants' knowledge and the altering of accident
reports in order to lodge claims
with the RAF.
[4]
The RAF's motivation for its approach to this Court is twofold. The
first is that the RAF administers
public funds, which must not be
spent fruitlessly and wastefully. The second is that the RAF seeks to
protect its main function,
which is fundamentally to pay compensation
to victims of road accidents. This means that in the language of the
RAF: "the
money must actually reach those victims".
[5]
The RAF wants to make sure its funds go to the victims and are not
abused by a practitioner facing serious
allegations of misconduct.
The RAF is concerned this will not be the case if Mr Madiba is
permitted to execute on the writs. The
RAF’s concerns regarding
Mr Madiba is bolstered by different sources of evidence. This
includes an affidavit by an attorney
who states his signature was
falsely attached to three doctored settlement agreements in
litigation against Mr Madiba. One of the
false settlement agreements
was for an amount just shy of R 5 million. The fourth respondent, the
Legal Practice Council (“the
LPC”) has resolved to launch
an application to strike Mr Madiba from the roll of attorneys and the
RAF has laid fifteen complaints
with the South African Police Service
against Mr Madiba. The RAF’s internal investigation unit,
tasked with investigating
corruption, has provided a report of an
investigation of Mr Madiba. The outcome of the report is that Mr
Madiba and his firm represented
at least seven clients at a time when
he was not enrolled as an attorney and his firm was not registered
with the LPC. The RAF
has presented this Court with five separate
orders to stay the execution of writs issued at Mr Madiba’s
instance and evidence
of six rescission applications launched against
orders obtained by Mr Madiba.
[6]
The RAF seeks the relief
on an interim basis pending the outcome of Part B. In Part B, the RAF
asks that the LPC be directed to
launch an application to appoint a
curator
ad
litem
and
a curator
bonis
[1]
to administer claims of persons represented by Mr Madiba and his firm
against the RAF, pending the outcome of the LPC's suspension
application launched against Mr Madiba. Alternatively, the Court is
requested to direct the LPC to launch an application to suspend
or
strike Mr Madiba.
[7]
Whilst the case is
properly brought in terms of the law of interdict and under Rule 45A
of the Uniform Rules of Court, the case
must be considered with an
acknowledgement that the work of the RAF has a constitutional
impetus. This has been recognised by our
courts. The Constitutional
Court in
Law
Society of South Africa and Others v Minister for Transport and
Another
[2]
held that the RAF forms “part of the social security net for
all road users and their depend[a]nts”. In addition, the
Full
Bench of this Court held in
RAF
v LPC
[3]
that compensation by the
RAF is a vehicle which the state uses to meet its constitutional duty
in terms of s 12(1)(c) read with
s 7(2) of the Constitution of the
Republic of South Africa, 1996, to protect road users against the
risk of infringement of the
right to freedom and security of their
persons.
[4]
[8]
The matter came before
the Court on the urgent roll on Thursday 28 September 2023. The
Court’s roll was full and the matter
could only be argued after
hours. Mr Madiba’s counsel disputed urgency and raised four
points in
limine
–
each of which I
will consider carefully. The case also engages the Court’s
obligations with regard to its officers and its
duty to protect its
own procedure. The matter has the distinguishing feature that the RAF
is acting to protect its opponents in
Court – the claimants –
from their representative. The set of facts required calm reflection.
The Court required time
to consider and craft an appropriate order.
The Court reserved judgment and granted an interim holding order on
Sunday, 1 October
2023, to protect the
status
quo
pending
the writing of this judgment and the order provided for in this
judgment.
[5]
The Court now
provides its reasons and a final order, as foreshadowed in its order
of 1 October 2023, in relation to Part A of
this matter.
[9]
The context within which the matter must be considered appears from
the pleaded case. I will spend some
time providing these details
before addressing the requirements for the relief sought by the RAF.
The
pleaded case
[10]
The RAF brings the application in terms of section 38(a) of the
Constitution, in its own interest as custodian of public funds
and in
the proper exercise of its statutory functions. The RAF also brings
the application under section 38(d) of the Constitution
in the
public's interest. The RAF contends that the public interest is
engaged in the matter as the application seeks to guard
against the
abuse of funds obtained from the fuel levy intended for the social
protection of victims of motor accidents.
The
RAF’s efforts to halt writs issued by Mr Madiba and his firm
[11]
The RAF has had to approach the Court on several occasions to halt
the execution of writs. The RAF has presented the Court
with six
rescission applications, four court orders interdicting Mr Madiba
from executing on writs and six applications to stay,
launched in the
past year. These includes the following six examples:
a)
One, the matter of Kgaogelo Mercy Sehlako// RAF (1697/2020). In this
matter, the RAF issued a rescission
application against the order
granted in this matter and the rescission application is enrolled for
a hearing on 8 May 2024. The
order is for R 1.6 million.
b)
Two, the matter of Nakedi Thomas Moitsi//RAF (5079/2019). On 26 July
2022, Bam J ordered a stay
of execution in relation to a previous
sale. The RAF issued a rescission application, which was enrolled for
hearing on 29 August
2023 and was postponed on the day as it became
opposed. It is yet to be heard. The order is for R 3.4 million.
c)
Three, the matter of Johanna Raisibe Kgodumo//RAF (2672/2019). The
RAF has issued a rescission
application and the application is
enrolled for hearing on 22 May 2024. The amount involved is R 2.6
million.
d)
Four, the matter of Simpyane Phineas Kgole//RAF (4658/2019), in which
an order interdicting a previous
sale in execution, was granted by
this Court on 26 July 2022. In addition, the RAF has issued a
rescission application in this
matter which is enrolled for hearing
on 20 May 2024. The matter involves a judgment debt of R 6.4 million.
e)
Five, the matter of Gloria Moloko Matlala//RAF (4759/2019) in which
the RAF instituted an application
to stay the execution of the
warrant of execution pending a rescission application.
f)
Six, the matter of Prudence Tshiamo Ketsi//RAF (83684/2018), in which
Lenyai J granted
an order interdicting the sale in execution
scheduled for 25 July 2023.
[12]
The RAF requests the Court to suspend the operation of all writs
issued at Mr Madiba and his firms’ instance, not only
because
of the pending rescission applications but also because of its
general concerns regarding paying public funds over to Mr
Madiba. The
RAF has provided the Court with what it calls five red flags that
underpin its concerns.
The
red flags
[13]
First, the RAF has pleaded that it is in possession of witness
statements, under oath, from (a) claimants who were represented
by
the first and second respondents, (b) claimants that the first and
second respondents purported to represent; and (c) employees
of the
RAF. The witness statements contain allegations that once the RAF had
paid their claims through Mr Madiba’s firm,
some of Mr Madiba’s
clients did not receive the amounts they were supposed to receive. In
addition, there is an allegation
that Mr Madiba attempted to bribe an
employee of the RAF and then, threatened when the employee would not
to change a particular
report of one of Mr Madiba’s clients. Mr
Madiba has referred to this complaint as the basis of a defamation
claim he has
lodged against the RAF and attached the particulars of
claim repeating this allegation.
[14]
Second, the RAF has laid 15 charges against Mr Madiba with the South
African Police Service (“SAPS”) for, among
other things,
forgery, and impersonation of an attorney. Those cases are still
pending and remain under investigation.
[15]
Third, the LPC resolved, in July 2023, to bring proceedings against
Mr Madiba to have his name struck off the roll of attorneys.
The LPC
has prepared such an application which, once it is deposed to, will
be issued against the first respondent. The Court has
a letter from
the LPC’s attorneys indicating that it is awaiting a signature
to the founding affidavit and will then launch
the proceedings. There
is an imminent application from the LPC to suspend/strike Mr Madiba
from the roll of attorneys.
[16]
Fourth, is the final
report by the RAF's external investigations, "Report On
Impersonation by Ntshosa Madiba". The investigation
forms part
of the RAF’s measures to detect, prevent and report irregular
claims, as well as cases where there is potential
corruption and
fraudulent and unlawful conduct – both on the part of the RAF's
officials and external stakeholders (or both
acting jointly). The
report makes the factual finding that Mr Madiba signed powers of
attorney/obtained mandates from clients in
seven claims prior to
being admitted as an attorney and prior to his firm being registered
with the LPC. Mr Madiba's firm was registered
on 6 August 2018, and
he was admitted as an attorney on 24 July 2018. The Court has
external confirmation of these dates from the
LPC’s records.
[6]
The conclusion reached in
the report is that:
“
Mr Madiba received
mandates from the claimants before he was admitted as an attorney and
lodged claims against the RAF and therefore
impersonated an attorney
(fraud by misrepresenting to RAF and client that he was admitted
attorney) in contravention of the Legal
Practice Act.”
[17]
The RAF’s fifth red flag is that the signature page of a valid
offer in one letter was attached to three other offers,
creating a
false settlement offer. This red flag is set out in detail in a
letter with attached affidavits from Hammann Moosa Inc.
I will spend
some time setting out the contents of this letter and its annexures.
[18]
The letter is authored by Mr C Strydom to Ms TJ Chikana, a Road
Accident Fund Investigator. Mr Strydom writes that Hammann
Moosa
represented the RAF in litigation against Mr Madiba. In this
litigation, the RAF (as the client) sent Hamman Moosa Inc. an
offer
of settlement in the matter of Lizzy Mapaila//RAF with case number
453/2017. The settlement offer in 453/2017 is therefore
a valid
settlement offer. Its last page contains the signature of an attorney
of Hamman Moosa. The last page contains no terms
of the settlement
and only the signature of the attorney on the matter, Mr Radzuma.
[19]
However, the last page of this valid offer (containing Mr Radzuma’s
signature) was used in three other matters. In other
words, the last
page of the valid offer for settlement in 453/2017 was attached to
three other “settlement” offers
from Hamman Moosa made to
Mr Madiba’s clients. Hamman Moosa denies that it ever received
a settlement instruction from the
RAF in these three matters and
never presented such a settlement offer to Mr Madiba. The three
matters are set out in detail in
the letter.
[20]
The first is dated September 2020, has case number 461/2017 and
involves Ramaesele Daphney Khuto//RAF. Mr Strydom explains
that –
“
It is confirmed
that during September 2020 we were approached by Marloe from the RAF
regarding an offer and settlement made. The
enquiry related to
whether our firm received the offer of R 4 823 894.00 from the RAF
and relayed same by way of an offer of settlement
to the plaintiff’s
Attorneys, Nthosa Madiba Attorneys. We perused the file and found
that we did not receive any offer from
the RAF and also did not send
any offer to the plaintiff’s Attorneys and consequently
responded to the RAF with an affidavit
by the attorney who attended
to the matter at the time the so-called offer was made. It seems that
the last page of the offer that
we made on another matter were
attached to the offer in this matter and served and filed.”
[21]
The second relates to a query of April 2021 with case number 452/2017
and Raesetja Octavia Madubanya//RAF:
“
During April 2021
we received a query from Tlou for another matter, with similar
circumstances. We perused our file contents and
found that we have no
record of any offer received from the RAF, neither did we have any
offer on the file which was relayed to
the Plaintiff Attorney, Nthosa
Madiba Attorneys.”
[22]
After these two matters were reported to Hamman Moosa, it proceeded
with an internal investigation and searched its database
for all
matters wherein Nthosa Madiba Attorneys was acting as attorneys for
the plaintiff. During this investigation, Hamman Moosa
Inc.
discovered a third matter with case number 3229/2016 in the matter of
Zandile Nomhle Skhosana//RAF:
“
We
perused our file contents and found that there was an acceptance of
an offer on our fie served by [Nthosa Madiba Attorneys] but
have had
no record of an offer received from the RAF or any offer hat was
relayed to these attorneys via our offices. We proceeded
to request
our correspondent attorney to check on the court file and obtain a
copy of the offer of settlement, if same was on the
file. Our
correspondent attorney provided us with a copy of the offer uplifted
from the court file and we found that the offer
of settlement was the
same as per [the two other matters] above. The last page of the offer
on [453/2017] was attached to the offer
of matter [3229] and then
filed at court”.
[23]
The conclusion reached is that:
“
The only
legitimate offer was received from the RAF and made by our firm to
Nthosa Madiba Attorneys was on matter [453/2017]. Take
note that the
offers [in the other three matters] were not done by our firm."
[24]
Attached to the letter is an affidavit from the candidate attorney,
who had been working on the matter:
“
I confirm that no
offer was made to the plaintiff’s attorneys and I truly believe
that the offer of settlement dated 18 March
2020 has been forged.”
[25]
The affidavit states that Nthosa Madiba Attorneys was the plaintiff's
attorney in two matters, case number 453/2017 and 461/2017.
The
affidavit reads further:
“
It seems the last
page of the offer of settlement for case no: 453/2017 which was
signed by Mr Radzuma, was attached on the forged
offer for case no:
461/2017.”
[26]
The deponent then attaches the offers of settlement in both matters.
It is clear that the last page, with the signatures ostensibly
from
the RAF's attorneys, is identical. The photo below on the left is the
signature page in the original valid offer 453/2017,
and the one on
the right is attached to the offer of 461/2017.
[27]
They are clearly identical and even have the same file and reference
numbers. The only difference is the stamp which appears
on the
documents. The page on the right, alarmingly, was attached to a false
settlement agreement in matter 461/2017 for an amount
of R 4 823
894.00.
[28]
The letter from Hamman Moosa also has an attachment in the form of a
second affidavit deposed by the attorney whose signature
appears on
the valid offer - with case number 453/2017. The attorney, Mr
Radzuma, states that –
“
The said offer was
sent via email. I wish to indicate that on this matter, the offer
sent was a valid offer from the RAF.
During the course of last
year (2020) I was made aware of a fraudulent offer. … I then
realised that the offer was forged
and that the person who formed the
offer had attached the second page from the matter of Lizzy Mapaila.
I wish to indicate that
the second page on the matter of Lizzy
Mapaila is exactly the same as the second page on the matter of
Ramasele Dapheny Khuto….
I wish to indicate that I
did not make an offer on the matter of Ramaesele Daphney Khuto. I
verily believe that the offer was forged.
Again during the course of
a year (2020), I was also made aware of the notice of acceptance of
settlement on the matter of Raesetja
Octovia Madubanya. I was
surprised to see the acceptance of the offer on the matter of Rasetja
since we did not prepare an offer
on this matter.
I wish to indicate
further that whatever that was done amounted to forgery or alteration
of documents.”
[29]
Mr Radzuma states, under oath, that he did not sign the three
subsequent “settlement offers” and that his signature
was
attached – without his knowledge - to the three subsequent
settlement agreements presented to Court by Mr Madiba’s
firm.
[30]
The RAF points to these red flags and asks the Court to halt the
execution of the writs until the LPC either removes him from
the
roll, or the Court directs that the LPC launch an application to
place Mr Madiba under curatorship.
Mr
Madiba’s response
[31]
Mr Madiba’s answering affidavit states that the “entire
founding affidavit is riddled with
falsehoods, defamatory statements, vexatious material, scandalous material,
irrelevant considerations which [are] ultimately designed to impute
improper conduct on my part without any good faith basis for
the
allegations made by the RAF”.
[32]
Mr Madiba complains that the case made out against him lacks a
factual foundation and that the RAF has not provided this Court
with
evidence that the seven writs at play in this matter suffer a defect
and that the RAF has sought to paint him, unjustifiably
so, as an
unscrupulous lawyer. Mr Madiba pleads that the LPC has not called him
in for a disciplinary hearing and that the SAPS
have not questioned
him in relation to the charges. In argument, this position was
presented in stronger terms: the submission
was that this Court must
not interfere with the investigations and jurisdiction of the LPC and
the SAPS.
[33]
I carefully read and re-read Mr Madiba's answering affidavit and the
annexures attached. Mr Madiba does not provide any allegation
that
addresses the concerns raised by the five red flags and the RAF’s
concerns that these writs, or any others in Mr Madiba’s
possession, are riddled with the same irregularities raised by the
five red flags.
[34]
Mr Madiba fails, in his 70-page affidavit, to deal with the five red
flags and the facts that underpin these red flags. Mr
Madiba does not
address the contents of the letter from Hammann Moosa or the FID’s
investigation. In fact, in responding
to the allegation that he
accepted instructions in 2016 and 2017 – prior to his enrolment
as an attorney, Mr Madiba refers
to the fact that he had accepted
work as an advocate sometime in 2012. This is not the relevant period
and leaves the sting of
the allegations unanswered.
[35]
Mr Madiba’s legal representatives argued that “valid
offers of settlement were made to the respondents as far back
as
early January 2022.” If these orders were underpinned by offers
of settlement, it would have been easy for Mr Madiba to
attach the
settlement offers from the RAF to his papers. He, however, did not do
so and did not more than present as a conclusion
the allegation that
the orders were underpinned by settlement agreements.
[36]
In addition to complaining that the RAF has a “vendetta”
against him, Mr Madiba challenged the urgency of the matter
and
raised four points in
limine
. The points are authority,
non-joinder, jurisdiction and non-compliance with Rule 35(12).
[37]
I will deal with the issue of urgency at the end of this judgment and
show the careful consideration given to Mr Madiba’s
points in
limine
under dedicated headings. The central controversy in
this matter, however, is whether the requirements for a stay and an
interdict
have been met.
Requirements
for a stay and an interdict
[38]
Our Courts have, generally accepted the requirements for an interim
interdict to guide the application of the Court’s
discretion
under Rule 45A. 28 As the RAF has sought a stay and an interim
interdict, substantially, the Court has to determine
whether the RAF
has met the requirements for an interim interdict.
Prima
facie right
[39]
The RAF has a
prima facie
right to protect, as a custodian,
public funds from being misappropriated. The RAF is not only a bearer
of a right in this regard
but also has a public obligation to protect
funds from being spent fruitlessly, irregularly or wastefully. The
RAF's obligation
includes a duty to exercise utmost care to ensure
reasonable protection of its assets and to act in the best interests
of the RAF,
take effective and appropriate measures to prevent
irregular expenditure, safeguard the RAF's assets and determine
material risks
which the entity may be exposed to.
[40]
The RAF also has a duty
to fulfil its constitutional obligations. In
Law
Society of South Africa and Others v Minister for Transport and
Another
[7]
Moseneke DCJ said that:
“
urgent steps must
be taken to make the Fund sustainable so that it can fulfil its
constitutional obligations to provide social security
and access to
healthcare services”; and that it is a 'legitimate government
purpose to make the Fund financially viable and
its compensation
scheme equitable”. The RAF has a general and constitutional
duty and right to protect claims from abuse.
[41]
Mr Madiba has not denied, with any particularity, the factual basis
on which the RAF relies for its
prima facie
right. Mr Madiba
contended that the RAF is seeking to halt the execution of orders in
which it has adduced no evidence of impropriety.
Mr Madiba contends
that the RAF cannot paint these writs with the same paint as those in
the FID report and the Hamman Moosa letter.
Of course, to paint all
instances with the same brush is at odds with our legal system, which
requires that a cause of action and
a case be made out in order to
obtain specific relief. However, the RAF has done more than make
generalised allegations against
Mr Madiba. The RAF has indicated it
seeks to rescind these orders, and it has concerns regarding the
payment of these writs pending
an application by the LPC, premised on
serious allegations of impropriety.
[42]
The RAF has established it has a
prima facie
right.
Reasonable
apprehension of irreparable harm
[43]
The irreparable harm to be suffered by the RAF is that its movable
assets are those that the RAF relies on to carry out its
day-to-day
statutory duties. If those assets are sold in execution, the RAF will
not be able to administer or perform its functions,
which serve a
critical aspect of those members of the community who are unfortunate
enough to be involved in road accidents in
the country. The assets
are likely to be sold for an insignificant value, and the RAF will
have to pay the shortfall. The RAF will
have to incur additional
expenses of purchasing new assets to replace those sold in execution.
[44]
The RAF also asks the Court to weigh its historical and ongoing
financial woes. Central to correcting this situation is the
RAF's
implementation of measures to detect and prevent payment of claims
which do not fall within the ambit of the RAF Act and
to curb the
abuse of the fund and its limited resources.
[45]
In addition, the RAF has a reasonable apprehension that Mr Madiba
should not be entrusted with the administration of the compensation
to be paid to those persons whom Mr Madiba claims to represent in
matters against the RAF. The RAF also has a reasonable apprehension
that the orders sought to be executed by Mr Madiba, generally against
the RAF, were not validly obtained and that Mr Madiba will
not pay
the claimants the amounts due to those claimants from the RAF.
[46]
The RAF is concerned about the real risk that if the RAF pays the
funds to Mr Madiba, those funds may be misappropriated. If
so, there
is no guarantee of a reimbursement. The RAF has a reasonable
apprehension of harm if the stay is not granted.
[47]
It weighs with the Court that Mr Madiba has taken no steps to allay
this apprehension of harm. Mr Madiba has made allegations
concerning
bad blood between him and the RAF but has not sought to address or
displace any of the RAF's allegations. Mr Madiba
has pleaded a bare
denial in relation to the facts pleaded by the RAF.
[48]
Mr Madiba has disputed the authenticity of the letter from the LPC
indicating it has resolved to launch an application to strike
Mr
Madiba. Yet, he has not provided the Court with any information that
the allegations on which the RAF leans is false. Mr Madiba
has stated
that he has not been called in for a disciplinary hearing by the LPC
or been questioned by SAPS, but has not presented
any proof that is
of comfort to the Court.
[49]
I asked Mr Madiba’s counsel where these serious allegations
have been dealt with. The response was that Mr Madiba was
awaiting
the outcome of a Rule 35(12) notice in relation to one aspect of the
evidence and that the substantive response to the
allegations were
the following paragraphs in the answering affidavit –
“
20. Firstly, it is
demonstrable that the RAF is seeking to suspend the execution of
orders listed in the notice of motion and it
does this purely on
manufactured evidence, scandalous statements not attached to the
founding papers, speculations and inadmissible
evidence even in
motion proceedings.
21. Secondly it doesn't
appear that the Road Accident Fund refuses to pay these claimants
except to say that I should not be the
attorney who is receiving this
payment on behalf of clients I have represented, and once again it
predicates this request on defamatory
statements, scandalous material
and absolutely nothing of substance.
22. Finally the Road
Accident Fund suggest that I should be interdicted from selling the
assets of the Road Accident Fund to satisfy
the court orders my
client obtained validly without any question.”
[50]
These paragraphs do no respond substantially to the allegations made
against Mr Madiba.
[51]
Mr Madiba has contended that it is unlikely that the seven writs
referred to specifically by the RAF will, if executed, hamper
the
RAF’s functions. This is premised on a misunderstanding of the
RAF’s claim. The RAF seeks to prevent Mr Madiba
from executing
on all writs, inclusive of the seven identified by the RAF. Mr Madiba
has opposed the RAF’s allegations that
its functions will be
hampered based on the misunderstanding that it seeks to only stop the
seven writs in Mr Madiba’s possession
– rather than all
the writs he may wish to execute on against the RAF. In any event, Mr
Madiba’s opposition on this
basis only goes to one of the
aspects of the harm the RAF has pleaded, and leaves unchallenged the
RAF’s apprehension that
harm will befall the public and
possibly Mr Madiba’s clients themselves.
[52]
The RAF has shown, largely on an uncontested basis, a reasonable
apprehension of harm in the event the relief is not granted.
Balance
of convenience
[53]
The RAF contends that the balance of convenience favours the RAF, as
the inconvenience it and the public stand to suffer is
the possible
payment of illegitimate claims with no redress at a later stage.
[54]
The Court must consider
the inconvenience to Mr Madiba. It weighs with the Court that the
effect of the relief sought by the RAF
means that there is an
interference with Mr Madiba’s ability to earn a living and
apply his trade. Mr Madiba has the constitutional
right to trade and
to earn a living – as a component of his right to dignity.
[8]
This must be balanced against the RAF’s inconvenience of
possibly paying out funds without a legal basis to do so and without
any assurance that those funds will reach the claimants.
[55]
I find that the balance of convenience favours the RAF.
Alternative
remedy
[56]
There is no alternative remedy available to the RAF to prevent the
execution of the writs. The RAF had invited Mr Madiba to
agree to an
undertaking to withdraw the writs and warrants of execution and to
undertake not to issue further process pending the
outcome of part B.
No such undertaking was forthcoming. There is no remedy to undo an
illegitimate payment made to Mr Madiba. It
is unlikely, in light of
the amounts involved, that the RAF will be able to claim these monies
back. In addition, there is no alternative
remedy for the RAF’s
immediate issue which is its loss of its assets it requires to
function.
[57]
The Court concludes that the RAF has met the requirements for an
interim interdict. The impact of this finding is that the
RAF has
made out its case for a stay and for an interim interdict. The extent
of this interdict will be considered later in this
judgment.
[58]
Due to the serious allegations involved in this matter and the
Court’s intention to give a full set of reasons, the Court
will
consider the alternative approach to Rule 45 A, which is to consider
the rule though the common law lens of injustice and
inherent
jurisdiction.
Injustice
and inherent jurisdiction
[59]
In
Van
Rensburg NO and Another v Naidoo NO, Naidoo NO v Van Rensburg NO
[9]
the
Court held as follows:
“
Apart
from the provisions of Uniform Rule 45A a court has inherent
jurisdiction, in appropriate circumstances, to order a stay of
execution or to suspend an order. It might, not for example, stay a
sale in execution or suspend an ejectment order. Such discretion
must
be exercised judicially. As a general rule, a court will only do so
where injustice will otherwise ensue.
A
court will grant a stay of execution in terms of Uniform Rule 45A
where the underlying causa of a judgment debt is being disputed,
or
no longer exists, or when an attempt is made to use the levying of
execution for ulterior purposes. As a general rule, courts
acting in
terms of this rule will suspend the execution of an order where real
and substantial justice compels such action.”
[10]
[60]
RAF v LPC,
affirmed
that Superior Courts have an “inherent reservoir of power to
regulate [their] procedures in the interests of the
proper
administration of justice.”
[11]
A distinction has been drawn between a court creating substantive law
as opposed to procedural law:
“
Substantive law is
concerned with the ends which the administration of justice seeks;
procedural law deals with the means and instruments
by which those
ends are to be attained.”
[12]
[61]
In
RAF
v LPC
–
dealing
with a stay of execution, the Court held that the core of the dispute
before it “clearly concerns procedural law,
not substantive
law.”
[13]
Of course,
this power must be exercised judicially; in fact, it must not be done
as a matter of course; it must be exercised sparingly
and strong
grounds would have to be advanced.
[14]
[62]
In
RAF v LPC
, the Court concluded –
“
The invocation of
this court's common law inherent power to regulate procedure and
of its inherent power in terms of s 173
to regulate its process,
therefore, must be determined on the peculiar facts of this
case.”
[15]
[63]
As the Court found exceptional circumstances existed, it was
satisfied it could exercise this power.
[64]
I have considered whether the facts of this case meet the threshold
of exceptional circumstances. I consider the depth of evidence
the
RAF has provided against Mr Madiba as well as the fact that the most
damning allegations originate from a third party supported
by
objective evidence. This evidence cried out for a response, yet none
was forthcoming. Of course, these factors cannot be divorced
from the
very public attempt by the RAF to turn its ship around and the
important role the Courts play in halting writs where there
are
serious allegations of impropriety. This Court need not make a
finding on fraud and does not do so; that will be the work of
another
Court. However, it must consider the serious allegations that have
been made at this stage.
[65]
For all these reasons, the Court concludes that the RAF has shown
exceptional circumstances. If the execution is not stayed,
it is
likely to have devastating consequences for the RAF as well as the
people who rely on the efficient and proper administration
of the
fund and potentially the claimants in this matter. The Court accepts
that real and substantial justice requires the court
to halt the
execution of the writs. If this is not done, there will be injustice.
[66]
There is some debate
[16]
whether importing the principles of an interim interdict is
appropriate or, rather, whether it is a discretion in the broadest
sense that is being exercised under Rule 45A.
[17]
I do not have to resolve this debate, as the RAF has made a case
under either approach. In this case, the RAF’s factual
foundation is so strong and the interests it seeks deeply public that
it meets both approaches.
[67]
Before considering the appropriate remedy, I set out the basis on
which I do not uphold Mr Madiba’s points in
limine
–
save for the issue of joinder.
Mr
Madiba’s points in
limine
Rule
7
[68]
Mr Madiba disputed the deponent of the RAF’s authority to
depose to the affidavit on behalf of the RAF. Mr Madiba raised
this
objection in the form of a Rule 7 notice. The RAF, in its replying
affidavit, provided a resolution from the RAF authorising
its
deponent, Mr Koko, to bring the application. For good measure, the
RAF also provided proof of confirmation that Malatji &
Co were
appointed to act on behalf of the RAF. The point was then not
persisted in Mr Madiba’s written argument or during
oral
argument.
Joinder
[69]
Mr Madiba raises a point of material non-joinder. Mr Madiba contends
that the respondents cited in this application have been
cited in
their capacity as legal representatives of the judgment creditors.
However, ultimately, the relief sought prejudices the
judgment
creditors who have been waiting for the RAF to compensate them.
[70]
The RAF submitted, with some nuance, that the relief being sought is
ultimately intended to ensure that these claimants get
paid what is
due to them. The RAF also indicates that the relief sought is only
interim and that it will ensure the papers and
order are served on Mr
Madiba's clients which would permit them to anticipate the relief
under Part A. In addition, if the RAF
is unsuccessful in the
rescission applications, the claimants will be able to seek payment
from the RAF. The RAF also contends
that the relief being sought is
against the enforcement of the writs at the instance of Mr Madiba and
not at the instance of the
judgment creditors.
[71]
The Court must determine whether Mr Madiba’s clients have a
direct and substantial interest in these proceedings.
[72]
Mr Madiba’s counsel
cannot be faulted for the submission that no Court can make findings
adverse to any person’s interest
without that person first
being afforded an opportunity to be joined to the proceedings.
Similarly, where a Court order cannot
be sustained or put into effect
without adversely affecting the rights of a third party, it is
required that such third party be
joined as an interested party.
[18]
The Constitutional Court has held that a “direct and
substantial interest” denotes “a right adversely affected
or likely to be affected” in the subject matter of the
litigation.
[19]
[73]
The suspension of the operation of a writ will affect, at a minimum,
the timeous payment of the claimants as judgment creditors.
The order
suspending the operation of the writs cannot be given effect without
affecting the rights of the claimants. The Court
upholds Mr Madiba's
point that the claimants have a direct and substantial interest in
the matter.
[74]
The Court must consider what relief flows from this finding. Mr
Madiba's counsel submitted that the issue of non-joinder ought
to
result in the dismissal of the application. The Court engaged counsel
on authority for this position and whether it would not
be more
appropriate to join them in the proceedings or grant a rule nisi that
provides them with an opportunity to take part in
the proceedings.
[75]
The case law indicates
that in matters where non-joinder is established, the Court retains
discretion as to its consequence. Courts
often adjourn the
proceedings until such time as the interested parties have been
joined.
[20]
Or courts have
stood matters down to ascertain if the non-party would consent to be
bound by the order.
[21]
[76]
Mr Madiba’s position that the application must be dismissed on
the basis of non-joinder is not supported by the case
law. The Court
will, under the heading dealing with the appropriate remedy, provide
for the interests of the claimants.
Jurisdiction
[77]
Mr Madiba contends that this Court has no jurisdiction to hear or
adjudicate on this matter, as the court orders that underpin
the
writs were issued by the High Court in Polokwane. Therefore, contends
Mr Madiba, it is that Division that enjoys exclusive
jurisdiction.
[78]
Mr Madiba’s counsel
drew the Court’s attention to
Standard
Bank of SA Ltd and Others v Thobejane and Others; Standard Bank of SA
Ltd v Gqirana N O and Another (“Thobejane”)
[22]
for authority that
section 173 of the Constitution, does not create a free-for-all to
approach the High Court with whatever disputes
may fall within its
territorial jurisdiction without regard to what must be established
for the Court to grant the relief sought.
[79]
Thobejane
dealt with the issue of whether a High Court may
properly refuse to hear a matter over which it has jurisdiction where
another court
has concurrent jurisdiction in either of two
circumstances: when a High Court and a Magistrates' Court both have
jurisdiction in
respect of the same proceedings and when the main
seat of a Division of a High Court and a local seat both have
jurisdiction in
respect of the same proceedings. The case is not
analogous.
[80]
Closer to the facts of
this case is the Full Bench decision in
RAF
v LPC
[23]
,where the Court
considered the issue of jurisdiction. The issue of the Court’s
jurisdiction arose in similar circumstances
as the writs - which were
the subject of the litigation - were issued in various divisions, yet
the suspension application was
sought in this Court. I draw
extensively from the approach and reasoning of this decision to
consider Mr Madiba's complaint regarding
jurisdiction.
[81]
The Full Bench held that
it is empowered by the
causae
continentia
principle
(the doctrine of cohesion of a cause of action). Where one Court has
jurisdiction over a part of a cause, considerations
of convenience,
justice and good sense justify its exercising jurisdiction over the
whole cause. The Court cited the reasoning
applied in
Roberts
Construction Co Ltd v Willcox Bros (Pty) Ltd
[24]
,
where the location of the object of contractual performance (a bridge
between two provinces) within the jurisdiction of one Court
gave that
court jurisdiction over the whole cause of action. The
causae
continentia
principle
avoids a multiplicity of proceedings and the possibility of
conflicting judgments on the same cause and allows for a more
convenient disposition of its cases.
[82]
The
causea continentia
rule is now enshrined in
section 21(2)
of the
Superior Courts Act 10 of 2013
. In
RAF v LPC
, the Court
held it did not matter whether the
causea continentia
rule
applied as
section 21(2)
applied and that –
“
This Court has
jurisdiction to entertain this application in respect of the
respondents and thousands of interested parties residing
in its area
of jurisdiction, which is not at issue, but also in respect of the
second, and eighth to twelfth respondents and the
thousands of other
interested parties residing within the areas of jurisdiction of other
divisions. Also, regarding the question
of convenience, this
application avoids a multiplicity of applications, along with the
additional costs and the risk of discordant
findings.”
[25]
[83]
I conclude, based on the reasoning in
RAF v LPC
, that this
Court, similarly has jurisdiction, albeit under
section 21(2)
of the
Superior Courts Act or
in terms of the
causae continentia
principle.
[84]
There is another basis on
which the Court concludes it has jurisdiction to hear this matter.
The Court notes that this is not the
first time Mr Madiba has sought
to raise the issue of jurisdiction in response to the RAF seeking to
stay the execution of writs
sought at his instance. In
Road
Accident Fund v Nthosa Madiba Incorporated and Others
[26]
,
decided in April 2022 (“
Madiba
2022
”
),
the Court dismissed the jurisdiction challenge.
[85]
The Court in
Madiba
2022
applied
Zokufa v
Compusca Credit Bureau
[27]
,
where Alkema J held that “a court will have jurisdiction to
grant an interdict if the jurisdictional connecting facts supporting
the requirements for the interdict are present within its area of
jurisdiction”. The Court also relied on
Mtshali
v Mtambo and Another
[28]
,
where
the Court held:
“
There is obvious
ample justification for the rule that an interdict founds
jurisdiction and that no exception to the Court's jurisdiction
can be
taken in such proceedings. The interdict procedure is an
extraordinary remedy devised for matters which do not admit of
delay
-
periculum
in mora
and
in which the power of the Court should be summarily interposed to
prevent and, if necessary, to discontinue, the perpetration
of
unlawful acts forthwith and for good or pending action. The
administration of justice would be seriously hampered, if not
frustrated,
if a Court does [not] have such power within its own area
of jurisdiction.
... therefore, ... lack
of jurisdiction cannot be interposed as an objection in proceedings
for an interdict in which the recognised
requirements for an
interdict are satisfied by the facts within the territorial
jurisdiction of the Court.”
[86]
Based on this reasoning, the Court in
Madiba 2022
held that
the Court had jurisdiction as the writs of execution are sought to be
enforced in this Court's area of jurisdiction.
The reasoning of the
Court in
Madiba 2022
applies equally here.
[87]
At its core, the test for
jurisdiction is twofold: “A court can only be said to have
jurisdiction in a matter if it has the
power not only of taking
cognisance of the suit, but also for giving effect to its
judgment”.
[29]
The RAF
and Mr Madiba's principal place of business is in the jurisdiction of
this Court. The writs are to be executed within the
jurisdiction of
this Court. On a pragmatic approach to the matter, this Court has
jurisdiction.
[88]
The Court concludes, based on the reasoning of the Full Bench, the
approach in
Madiba 2022
and that the writs are to be executed
in this Court’s jurisdiction, that this Court does have
jurisdiction to hear this matter.
Rule
35(12)
[89]
The RAF has pleaded that it has in its possession witness statements
that contain serious allegations regarding Mr Madiba.
These relate to
the first red flag set out above. These allegations are that Mr
Madiba is involved in the forgery of claimants'
signatures, the
representation of claimants without those claimants' knowledge, and
the altering of accident reports in order to
lodge claims with the
RAF.
[90]
The RAF has pleaded that there have been instances in the past where
Mr Madiba has intimidated witnesses. As a result of these
instances
of intimidation, the RAF has not attached the witness statements to
these affidavits. For this reason, also, the RAF
has not provided
confirmatory affidavits.
[91]
The RAF did tender to make these affidavits and statements available
to the Court. In fact, the RAF indicates that it would
have been
ideal to enter into a confidentiality regime where the affidavits and
statements could be shared with Mr Madiba's representatives
under an
agreement not to share them with Mr Madiba. However, as Mr Madiba's
firm is representing itself in these proceedings,
that regime was not
available to the RAF. The RAF also tendered to have an official from
the Forensic Investigation Division (FID)
in Court to provide any
evidence to the Court was necessary. The RAF contends that to the
extent necessary, this issue can be dealt
with under Part B of the
matter.
[92]
Mr Madiba pleaded a bare denial to these allegations and presented no
alternative solution to the RAF’s concerns. Mr
Madiba filed a
Rule 35(12)
asking for the RAF to make available the documents
referred to in the affidavit for inspection. Specifically, the
documents referred
to are the edited accident reports; the documents
pertaining to the forged signatures; all statements made to the FID;
statements
made to the SAPS when the alleged cases were open, and
statements made to the Legal Practice Council.
[93]
During oral argument, the RAF's failure to respond to
Rule 35(12)
was
raised as a point in
limine
. Mr Madiba’s position, in a
more strident tone, was that the Court could not hear the matter
until the RAF had complied with
the
Rule 35(12)
notice.
[94]
The Court considers this point.
Rule 35(12)(b)
provides what should
happen where a litigant does not comply with a
Rule 35(12)
notice.
The rule provides:
“
(b)
Any party failing to comply with the notice referred to in paragraph
(a)
shall not, save with the leave of the court, use such document or
tape recording in such proceeding provided that any other party
may
use such document or tape recording.”
[95]
The RAF does not seek to rely on or use the document i.e. the actual
witness statements. The RAF is, however, presenting the
contents of
such documents as hearsay evidence. Of course, the rule against
hearsay evidence is not absolute, and it may be admitted
in terms of
section 1(c)
of the
Law of Evidence Amendment Act 45 of 1988
. In
particular, hearsay evidence may be admitted where it would be in the
interest of justice to do so. One of the relevant factors
in making
such a determination is the reason why the evidence is not given by
the person upon whose credibility the probative value
of such
evidence depends. In this case, the reason why the hearsay evidence
is sought to be admitted is because of allegations
of intimidation
and the fear of interfering with ongoing investigations by SAPS and
the LPC. In addition, the rule regarding hearsay
evidence is not
applied as strictly in urgent matters as in matters that are heard in
the ordinary course.
[96]
In any event, even if this evidence were to be disregarded entirely,
it would only affect what has been referred to as the
first red flag
above. There remain four further red flags relied on by the RAF, as
well as the fact that it has instituted six
rescission applications
that are currently pending and that it has successfully obtained a
least five stays of execution against
Mr Madiba.
[97]
In circumstances where there are serious allegations supported by
objective evidence in the form of a FID report and a letter
from the
external third party Hamman Moosa, the Court is disinclined to refuse
to hear an urgent matter because one party has not
replied to a
Rule
35(12)
on the basis that it fears its witnesses may be intimidated.
[98]
The Court dismisses Mr Madiba’s argument that the RAF’s
failure to comply with the
Rule 35(12)
notice prevents this Court
from hearing the matter.
[99]
As the Court has considered and rejected Mr Madiba’s technical
defences, it sets out its findings on urgency.
Urgency
[100]
The Sheriff advised the RAF’s attorneys on Monday, 4 September
2023, that she had been instructed
by Mr Madiba to remove the RAF's
assets on the afternoon of 4 September 2023 to make good on the writs
issued at the instance of
Mr Madiba. The RAF launched the application
on 4 September 2023 and afforded the respondents eight days to
respond to the application.
The matter was set down to be heard in
the urgent court week of 19 September 2023. However, Mr Madiba filed
his answering affidavit
late, necessitating the removal of the matter
from the urgent roll of 19 September 2023 and re-enrolling it for the
week of 25
September 2023 after the RAF's replying affidavit was
filed.
[101]
The RAF's explanation for the urgent application is the imminent sale
of its assets. Mr Madiba has
not disputed this allegation.
[102]
Mr Madiba contends that the RAF created its own urgency, as it has
known about the judgments underpinning
these writs for a considerable
amount of time and has not acted until the Sheriff’s indication
of 4 September 2023. Mr Madiba's
position is not supported by the
facts. The RAF has launched and obtained applications to stay two of
the writs and to rescission
the judgments in five of the matters. The
RAF has, therefore, challenged the validity of the majority of the
judgments even prior
to the notice of the sale in execution. However,
the need to suspend the operation of the writs only became necessary
in response
to the Sheriff's indication that it would execute the
writs.
[103]
The RAF also has to satisfy the Court that it will not be able to
obtain substantial redress in due
course. The RAF is concerned that
the victims may not receive the compensation they are entitled to. In
addition, if the allegations
against Mr Madiba are proven to be true
or the relief granted in Part B – then it is unlikely the RAF
will be able to obtain
substantial redress in due course.
Appropriate
relief
[104]
The Court has found that
the requirements for a stay and an interim interdict have been met.
Our
Courts have, on two occasions, suspended writs issued against the RAF
by invoking section 173 of the Constitution. In
RAF
v Sheriff Pretoria East
[30]
Baqwa
J held that the Court is empowered in terms of section 173 of the
Constitution if it is in the interest of justice to do so.
[31]
I have been informed that the judgment is currently under appeal, but
the aspect I rely on has been approved by the Full Bench
in
RAF
v LPC
.
In
RAF
v LPC
,
the issue was whether writs and attachments could be suspended. After
considering all the evidence, the Court found that the requirements
for an interdict had been satisfied, and it ordered the stay of the
writ of attachment. The Court also held that section 173 of
the
Constitution permitted the stay of execution where real and
substantial justice requires such a stay.
[105]
The RAF places express reliance on
RAF
v Sheriff of the East
for authority
that the existence of a judgment does not necessarily compel the RAF
to pay monies where there are
prima
facie
irregularities. To hold otherwise
would promote illegality, of which the judiciary cannot be part. It
is also not in dispute that
RAF is an organ of the state, established
in terms of section 2 of the Act and that it has to adhere to the
principles governing
public administration under the Constitution,
which requires in section 195(1) that "[e]fficient, economical
and effective
use of resources must be promoted."
[106]
Of course, the context of these matters were
different to the proceedings before this Court. This Court will not
grant such a drastic
remedy but will draw on this case law for
authority that such relief is not unprecedented.
[107]
The Court, however, has three matters which it must consider when
tailoring the relief.
[108]
The first is the issue of non-joinder. The Court, in this case, is in
the curious position where the
claimants’ interests are
allegedly not protected by their legal representative. On the
contrary, their opposition, the RAF
contends that the relief being
sought will redound to their favour. The Court however does not have
the information of these other
claimants before it. The Court does
not know how many other writs Mr Madiba has in his possession or what
the claimants say of
this position.
[109]
The relief sought by the RAF is in effect a halt to Mr Madiba’s
ability to execute on the writs
in his possession. The RAF asks this
Court to do so by staying the execution of the writs. However, this
would affect the claimants’
rights to execute on writs which
may or may not have been validly obtained. These claimants have not
had a say in these proceedings.
The Court would be slow to grant a
final order against them in circumstances where they have not been
notified or heard in relation
to this matter. The Court’s
concern is that, amongst Mr Madiba’s clients may be individuals
who are in need of payments
from the RAF to provide for their medical
needs. The Court has to imagine this possibility, as Mr Madiba has
not made any such
allegations.
[110]
However, the RAF tells this Court that amongst Mr Madiba’s
clients there are minors. The Court
plays a special role in such
circumstances. In order to cater for such events, the Court will
provide in its order that any client
of Mr Madiba affected by this
order can approach the Court on notice.
[111]
In addition, the Court will not suspend the operation of the writs in
their entirety indefinitely,
but only Mr Madiba’s ability to
execute on them. In this way, if there is a valid court order, the
claimants can approach
a different attorney to assist them. In this
way, the Court will limit Mr Madiba’s ability to execute on the
orders and grant
an interdict that prohibits Mr Madiba and his firm
from executing on these writs.
[112]
This will effectively provide the RAF with the relief it seeks –
an order that limits Mr Madiba’s
involvement pending the LPC
hearing or Part B of this matter - whilst permitting the claimants
from seeking their relief through
other attorneys. To prohibit the
claimants from executing on the writs through assistance of another
attorney would limit their
section 34 rights and their right to an
effective remedy. If amongst Mr Madiba’s writs there are writs
supported by legitimate
orders, other attorneys can make good on
those orders.
[113]
In summary –
a)
nothing stops the judgment creditors from seeking to enforce their
orders (save for those in respect
of the first species of writs where
rescission applications are pending); and
b)
any of those judgment creditors may anticipate the order or seek a
reconsideration.
[114]
Second, the impact on Mr Madiba’s ability to earn a living. I
acknowledge the relief granted
will limit Mr Madiba’s ability
to practice as a lawyer. I however note that the common law, Rule 45A
and section 173 of the
Constitution permits this interference, and
has been used historically to halt – temporarily – the
execution of writs.
The interference is limited both the extent and
scope of this limitation. The interference is limited to only those
writs against
the RAF and only on an interim basis.
[115]
Third, the Court has
inherent jurisdiction, and in fact a duty, to make orders in relation
to the conduct of is officers.
[32]
The inherent jurisdiction has been recognised by the
Legal Practice
Act 24 of 2014
, which provides in
section 44
that –
“
The provisions of
this Act do not derogate in any way from the power of the 15 High
Court to adjudicate upon and make orders in
respect of matters
concerning the conduct of a legal practitioner, candidate legal
practitioner or a juristic entity.”
[116]
Inclusive in this power
is to cause an enquiry to be made into the conduct of its
practitioners.
Under
the common law the Court’s powers were explained as follows in
Johannesburg
Bar Council v Steyn
[33]
-
“
The
position is that a duty is vested in this Court to enquire, or to
cause enquiry to be made, into the conduct of advocates who
are
officers of the Court and are entitled to practice before it, when
facts are bought to its notice rendering an enquiry with
the
possibility of consequent disciplinary action, necessary in its
opinion. The Court in performing its “duty in relation
to the
proper conduct of its officers” has historically sought
assistance it deems most suitable in the discharge of this
duty.”
[117]
In
Wild
v LPC
[34]
a Full Bench held that –
“
It therefore seems
that the courts not only had a duty (and right) to enquire or to
cause enquiry to be made into the conduct of
advocates, but, as the
courts had no machinery for the purpose of themselves conducting
investigations, it was the prerogative
of the courts to request a
party (like the Attorney-General) who would be 'pre-eminently able to
afford the court the maximum assistance'
in the preparation of the
case against an advocate as a respondent (
Steyn
supra
[57] at 119 and 120). However, as the Attorney-General was not an
official of the bar and he had no special knowledge of professional
etiquette regarding members of the bar in private practice, the
Society of Advocates of the division concerned, which was most
intimately concerned with the practice of advocates, was later
recognised as the proper body to initiate disciplinary proceedings
and to bring applications to suspend or strike off the names of
advocates. The role of the Society of Advocates was to render the
necessary assistance to the court in performing its duty in relation
to the proper conduct of its officers.”
[118]
The Court held, in the
context of the introduction of the Legal Practice Council Act, that
the Court had retained its common law
power to regulate its own
process.
[35]
The RAF has
sought the LPC’s involvement in this matter. The Court notes
the relief being sought in Part B relies heavily
on the involvement
of the LPC. The Court therefore will order the LPC to file a report
on the developments in the LPC matter in
these proceedings within 15
days of this order.
Costs
[119]
This matter also raises the RAF's duty, as a custodian of public
funds, to ensure that those funds
are not wasted and that they are
paid to the victims of road accidents. In addition, the RAF has a
duty to protect its assets,
which are threatened by the impending
sale in execution at the instance of the first and second
respondents, whose execution would
result in the RAF's assets –
crucial to its day-to-day functioning – being removed and sold.
If that is done, on account
of the havoc on its operations, the RAF
will not be able to fulfil its statutory duties, and this will also
prejudice other road
accident victims seeking assistance from the
RAF.
[120]
The RAF has acted in its own and the public interest. In addition,
the RAF has been successful in
the relief it seeks. Costs should
follow the result. The RAF has requested the costs of two counsel.
The matter is complicated
and traversed previous court orders granted
by three other judges, the outcome of a report and serious
allegations. The use of
two counsel is appropriate in these
circumstances.
[121]
The RAF has requested the Court considering granting punitive costs.
The basis, is for this to show
the court’s displeasure in Mr
Madiba’s dealing with the matter. The request is considered in
circumstances where rather
than address serious allegations, Mr
Madiba has raised several technical defences.
[122]
In addition, Mr Madiba is
an officer of the Court, and more is required from him. In
South
African Legal Practice Council v Singh
[36]
the Court held that principles relating to the conduct expected from
legal practitioners are now trite and need only be referred
to
briefly. The Court expects from a legal practitioner
uberrima
fides
,
which is the highest possible degree of good faith in his or her
dealings with clients. A legal practitioner, being a member of
a
respected and honourable profession, must display unquestionable
integrity to society at large, to the profession and to the
Court.
[37]
Mr Madiba has
failed to meet this standard.
[123]
Not only has Mr Madiba not substantively dealt with the allegations
and has failed to meet its duties
as a practitioner, Mr Madiba has
challenged this Court’s jurisdiction to hear this dispute. This
challenge has been considered
and dismissed by this Court in
Madiba
2022
. Mr Madiba did not bring this matter to the Court’s
attention, nor did it explain why the same point in
limine
was
being raised again.
Order
[124]
As a result, the following order is granted:
a)
This matter is enrolled as an urgent application in terms of rule
6(12) of the Uniform Rules of
Court.
b)
Pending the outcome of Part B the first and second respondents are
interdicted from executing (and
issuing instructions to the Sheriff
to do so) all present and future writs of execution against the
applicant, including (but not
limited to) the following matters:
i)
Virnolia Ramogohlo Pasha v RAF under case number 1700/2020;
ii)
Prudence Tshiamo Ketsi v RAF under case number 83684/2018;
iii)
Kgaogelo Mercy Sehlako v RAF under case number 1697/2020;
iv)
Nakedi Thomas Moitsi v RAF under case number 5079/2019;
v)
Gloria Moloko Matlala v RAF under case number 4759/2019;
vi)
Johanna Raisebe Kgodumo case number: 2672/2019; and
vii)
Simpyane Phineas Kgole v RAF under case number 4658/2019
c)
Pending the outcome of Part B the third respondent is interdicted and
restrained from removing
the applicant’s movable property or
selling the applicant’s movable property pursuant to any writ
of execution issued,
or which may be issued in future, at the
instance of the first and second respondents against the applicant.
d)
The applicant is directed to serve this order and judgment on the
fourth respondent.
e)
The fourth respondent is to file an affidavit/report within 15 days
of this order setting out the
development of the striking/suspension
application.
f)
Any claimant against the applicant who is affected by this order may
approach the Court
on notice to vary or reconsider this order.
g)
The first and second respondents, jointly and severally, are directed
to pay the costs of this
application on an attorney and own client
scale, including the costs of two counsel.
I
de Vos
Acting
Judge of the High Court
Delivered:
This judgment is handed down electronically by uploading it to the
electronic file of this matter on CaseLines. As a
courtesy gesture,
it will be sent to the parties/their legal representatives by email.
Counsel
for the applicant:
R
Tshetlo
KAR Thobakgale
Instructed
by: Malatji
& Co Attorneys
Counsel
for the applicant
M
Maphutha
H Nkabinde
Instructed
by: Ntshosa
Madiba Attorneys
Date
of the hearing: 28 September
2023
Date
of judgment: 18
October 2023
[1]
The
RAF contends
section 89
of the
Legal Practice Act 28 of 2014
,
provides the LPC with this power:
“
89
Court may prohibit operation of trust account
The
High Court may, on application made by the Council or the Board, and
on good cause shown, prohibit any legal practitioner
referred to in
section 84
(1) from operating in any way on his or her trust
account, and may appoint a curator bonis to control and
administer that
trust account, with any rights, powers and functions
in relation thereto as the Court may deem fit."
[2]
2011
(1) SA 400
(CC)
(2011 (2) BCLR 150
;
[2010] ZACC 25
; para 17.
[3]
Road
Accident Fund v Legal Practice Council and Others
(58145/2020) [2021] ZAGPPHC 173;
[2021] 2 All SA 886
(GP);
2021 (6)
SA 230
(GP) (9 April 2021).
[4]
Para
29.
[5]
The
terms of the order were:
1.
This matter is enrolled as an urgent application in terms of rule
6(12) of the Uniform Rules
of Court.
2.
The judgment,
reasons and order(s) (including in relation to the question of
joinder of the first and second respondents’
purported
clients) are hereby reserved.
3.
Pending the judgment and reasons of the Court in this matter, it is
ordered that the orders set
out below shall operate with immediate
effect upon the granting of this court order:
4.
The first and second respondents are interdicted from executing (and
issuing instructions to
the Sheriff to do so) all present and future
writs of execution against the applicant, including (but not limited
to) the following
matters:
4.1
Virnolia Ramogohlo Pasha v RAF under case number: 1700/2020;
4.2
Prudence Tshiamo Ketsi v RAF under case number 83684/2018;
4.3
Kgaogelo Mercy Sehlako v RAF under case number 1697/2020;
4.4
Naked Thomas Moitsi v RAF under case number: 5079/2019;
4.5
Gloria Moloko Matlala v RAF under case number: 4759/2019;
4.6
Johanna Raisebe Kgodumo case number: 2672/2019; and
4.7
Simpyane Phineas Kgole v RAF under case number 4658/2019.
5.
The third respondent is interdicted and restrained from removing the
applicant’s movable
property or selling the applicant’s
movable property pursuant to any writ of execution issued, or which
may be issued in
future, at the instance of the first and second
respondents against the applicant.
6.
The first and second respondents, jointly and severally, are
directed to pay the costs of this
application on an attorney and own
client scale, including the costs of two counsel.
[6]
The
specifics of these are:
a)
Link number 4142059 with a special power of attorney signed by Mr
Madiba on 12 May 2017.
b)
Link number 3631449 with Mr Madiba’s mandate dated 22 May
2017.
c)
Link number 2987850 with Mr Madiba’s mandate signed on 17
March 2017.
d)
Link number 4010567 with Mr Madiba’s special power of attorney
signed on 22 April 2017.
e)
Link number 4143925 with Mr Madiba’s special power of attorney
signed on 12 May 2017.
f)
Link number 4580246 with Mr Madiba’s special power of attorney
signed on 20 November
2017.
g)
Link number 4279780 with Mr Madiba’s special power of attorney
signed on 20 August 2017.
[7]
Supra
.
In
Gois
t/a Shakespeare’s Pub v Van Zyl and others
2011 (1) SA 148
(CC) ,
our
courts have leaned on the requirements for an interim interdict to
determine whether it is fit to grant a stay:
“
(a)
A court will grant a stay of execution where real and substantial
justice requires it or where injustice would otherwise result.
(b)
The Court will be guided by considering the factors usually
applicable to interim interdicts, except where the applicant is
not
asserting a right but attempting to avert injustice.
(c)
The Court must be satisfied that:
(i)
the applicant has well-grounded apprehension that the execution is
taking place at the instance of the respondent(s); and
(ii)
irreparable harm will result if execution is not stayed and the
applicant ultimately succeeds in establishing a clear right.
(d)
Irreparable harm will invariably result if there is a possibility
that the underlying causa may ultimately be removed, i.e.
where the
underlying causa is the subject matter of an ongoing dispute between
the parties.
(e)
The Court is not concerned with the merits of the underlying dispute
– the sole enquiry is simply whether the causa
is in dispute."
[8]
Minister
of Home Affairs and Others v Watchenuka and Others
(010/2003)
[2003] ZASCA 142
;
[2004] 1 All SA 21
(SCA) (28 November
2003).
[9]
[2010]
ZASCA 68
,
[2010]
4 ALL SA 398
(SCA),
2011
(4) SA 149
(SCA).
[10]
Id
at
para 52.
[11]
Universal
City Studios Incorporated and Others v Network Video
(Pty)
Ltd
[1986] ZASCA 3
;
1986 (2) SA 734
(A) ([1986] 2 All SA 192; [1986] ZASCA 3).
[12]
RAF
v LPC
para
30.
[13]
RAF
v LPC
para
30.
[14]
In
Moulded
Components and Rotomoulding South Africa (Pty) Ltd v Coucourakis and
Another
1979 (2) SA 457
(W) at 462H – 463B, Botha J said the
following:
“
I
would sound a word of caution generally in regard to the exercise of
the Court's inherent power to regulate procedure. Obviously,
I think
such inherent power will not be exercised as a matter of course. The
Rules are there to regulate the practice and procedure
of the Court
in general terms, and strong grounds would have to be advanced, in
my view, to persuade the Court to act outside
the powers provided
for specifically in the Rules. Its inherent power, in other words,
is something that will be exercised sparingly.
As has been said in
the cases quoted earlier, I think that the Court will exercise an
inherent jurisdiction whenever justice
requires that it should do
so. I shall not attempt a definition of the concept of justice in
this context. I shall simply say
that, as I see the position, the
Court will come to the assistance of an applicant outside the
provisions of the Rules when the
Court can be satisfied that justice
cannot be properly done unless relief is granted to the applicant.”
[15]
LPC
above,
para 35.
[16]
See,
for example,
Road
Accident Fund v Strydom
2001 (1) SA 292
(C) the Court held that Rule 45A of the Uniform
Rules of Court, in terms of which a Court ‘may suspend the
execution of
any order for such period as it may deem fit', affords
the Court a discretion of the widest kind and imposes no procedural
or
other limitations on the power it confers. Among the grounds upon
which a Court may exercise its discretion are that the
causa
of a judgment is being impugned or that execution of the judgment is
being sought for improper reasons. The Court's discretion
under Rule
45A cannot, however, be limited by postulating that it can only be
exercised in such circumstances. (At 301B - C/D.)
The Courts will,
generally speaking, grant a stay of execution where real and
substantial justice requires such a stay or where
injustice would
otherwise be done. (At 304H - H/I.):
"The
analogy of interim interdict does not appear to be entirely
appropriate in the circumstances of this matter. For one
thing, the
applicant is not asserting a right in the strict sense but a
discretionary indulgence based on the apprehension of
injustice.
It
seems to me in a matter such as the present that at the heart of
the inquiry relative to the exercise of the Court's
discretion is
whether it has been shown by the applicant that there is a
well-grounded apprehension of execution of the order
taking place at
the instance of the respondent and of injustice being done to the
applicant by way of irreparable harm being
caused to the applicant
if execution were not suspended.”
[17]
See
BP
Southern Africa (Pty) Ltd v Mega Burst Oils and Fuels (Pty) Ltd and
Another
and A Similar Matter
2022 (1) SA 162
(GJ) which held that Rule 45A
of the Uniform Rules of Court, in terms of which a Court 'may
suspend the execution of any order
for such period as it may deem
fit', affords the Court a discretion of the widest kind and imposes
no procedural or other limitations
on the power it confers. Among
the grounds upon which a Court may exercise its discretion are that
the
causa
of a judgment is being impugned or that execution of the judgment is
being sought for improper reasons. The Court's discretion
under Rule
45A cannot, however, be limited by postulating that it can only be
exercised in such circumstances. (At 301B - C/D.)
The Courts will,
generally speaking, grant a stay of execution where real and
substantial justice requires such a stay or where
injustice would
otherwise be done. (At 304H - H/I.) In exceptional circumstances a
residual equitable discretion to stay execution
could be exercised
to prevent an injustice, even where a litigant had an enforceable
judgment and was entitled to payment.
[18]
Morgan
v Salisbury Municipality
1935 AD 167
, 171;
Collin
v Toffie
1944 AD 456
;
Amalgamated
Engineering Union v Minister of Labour
1949 (3) SA 637
(A) 659, 660;
Toekies
Butchery (Edms) Bpk v Stassen
1974
(4) SA 771 (T) 774F-H;
Vandenhende
v Minister of Agriculture, Planning and Tourism, Western Cape
2000 (4) SA 681
(C) 688- 690
[19]
South
African Riding for the Disabled Association v Regional Land Claims
Commissioner
2017
(5) SA 1 (CC) para 9.
[20]
Khumalo
v Wilkins
1972
(4) SA 470 (N);
Laerskool
Gaffie Maree and Another v Member of the Executive Council for
Education, Training, Arts and Culture, North Gate, and
Others
2003
(5) SA 367;
IPF
Nominees (Pty) Ltd v Nedcor Bank Ltd
(Basfour
130) (Pty) Ltd, (third party)
2002 (5) SA 101
(W);
Pretorius
v Slabbert
2000 (4) SA 935
(SCA);
Harding
v Basson and Another
1995 (4) SA 499
(C);
Amalgamated
Engineering Union v Minister of Landbou
1949 (3) SA 637 (AD).
[21]
Amalgamated
Engineering Union v Minister of Landbou
1949 (3) SA 637
(AD)
at
663.
[22]
(38/2019; 47/2019; 999/2019)
[2021] ZASCA 92
;
[2021] 3 All SA 812
(SCA);
2021 (6) SA 403
(SCA) (25 June 2021).
[23]
2021
(6) SA 230
(GP).
[24]
1962 (4) SA 326 (A).
[25]
Id
at
para 17.
[26]
(22264/2022) [2022] ZAGPPHC 314 (26 April 2022).
[27]
2011
(1) SA 272
(CMA
paras [30] and [61-62].
[28]
[1962] 2 All SA 457 (GW).
[29]
Steytler
NO v Fitzgerald
1911
AD 295
at 346.
[30]
Road
Accident Fund v Sheriff of the High Court, Pretoria East and Others
(028726/2022) [2023] ZAGPPHC 746 (28 August 2023).
[31]
Id
at
para 70.
[32]
The
South African Legal Practice Council v
Teffo
(10991/21) [2022] ZAGPPHC 666 (16 September 2022) para 98.
[33]
1946 TPD 115
at 119.
[34]
Wild v
Legal Practice Council and Others
(31130/2019) [2023] ZAGPPHC 297 (24 April 2023) at 59.
[35]
Id
at
paras 79 and 80.
[36]
South
African Legal Practice Council v Singh
(26408/2021) [2021] ZAGPPHC 552 (18 August 2021) para 20.
[37]
Id
at
21.
sino noindex
make_database footer start
Similar Cases
Road Accident Fund v Sheriff of the High Court for the District of Centurion East and Another (083710/2023) [2023] ZAGPPHC 1777 (11 October 2023)
[2023] ZAGPPHC 1777High Court of South Africa (Gauteng Division, Pretoria)100% similar
Road Accident Fund v Newnet Properties (Pty) Ltd t/a Sunshine Hospital [Manzhini] (32351/2020) [2023] ZAGPPHC 1192 (15 September 2023)
[2023] ZAGPPHC 1192High Court of South Africa (Gauteng Division, Pretoria)100% similar
Road Accident Fund v Lombard and Another (74084/2019) [2023] ZAGPPHC 1937 (16 November 2023)
[2023] ZAGPPHC 1937High Court of South Africa (Gauteng Division, Pretoria)100% similar
Road Accident Fund v De Villiers (21919/2021) [2023] ZAGPPHC 2039 (10 November 2023)
[2023] ZAGPPHC 2039High Court of South Africa (Gauteng Division, Pretoria)100% similar
Road Accident Fund v Newnet Properties (Pty) Ltd (32355/2020) [2023] ZAGPPHC 1959 (23 November 2023)
[2023] ZAGPPHC 1959High Court of South Africa (Gauteng Division, Pretoria)100% similar