Case Law[2023] ZAGPPHC 1845South Africa
M.P v P.G.P (52101/2018) [2023] ZAGPPHC 1845 (6 November 2023)
High Court of South Africa (Gauteng Division, Pretoria)
6 November 2023
Headnotes
Summary:
Judgment
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## M.P v P.G.P (52101/2018) [2023] ZAGPPHC 1845 (6 November 2023)
M.P v P.G.P (52101/2018) [2023] ZAGPPHC 1845 (6 November 2023)
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sino date 6 November 2023
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: 52101/2018
1.
REPORTABLE: NO
2.
OF INTEREST TO OTHER JUDGES: NO
3.
REVISED: NO
DATE:
6 November 2023
In
the matter between:
#
# M[....]
P[....] Plaintiff
M[....]
P[....] Plaintiff
and
# PG[....]
P[....] Defendant
PG[....]
P[....] Defendant
Summary:
Action
for divorce- married in community of property – requirements
for a decree of divorce restated – failure to settle
on
division is not a bar to such a decree
Requirements
for the appointment of liquidator to divide joint estate discussed
Section
10 of the Divorce Act re costs – relative means and conduct of
parties considered
JUDGEMENT
THIS
JUDGEMENT HAS BEEN HANDED DOWN REMOTELY AND SHALL BE CIRCULATED TO
THE PARTIES BY WAY OF E- MAIL / UPLOADING ON CASELINES.
ITS DATE OF
HAND DOWN SHALL BE DEEMED TO BE 06 NOVEMBER 2023
K
STRYDOM, AJ
INTRODUCTION:
1.
This
opposed divorce appeared before me by way of special allocation,
granted given the protracted duration of the litigation. Instituted
in 2018, there have been no less than three opposed Rule 43
applications, three applications to compel discovery, criminal
proceedings
of varying nature and arch levers of recriminatory
correspondence. Even a case management meeting presided over by the
Honourable
Ledwaba DJP in February 2023 could not salve the
oppositionary stances of the parties.
2.
And yet, at
its heart, the matter concerned, as with most divorces, two main
issues: children and assets. Ironically, the more problematic
issue,
which is usually less capable of judicial resolution, namely the
children, had not really been in dispute since 2021 and,
by the
morning of trial, the parties had managed to reach an agreement in
this regard.
3.
This beggars
the question: what was so unique regarding the division or the assets
that justified the extent of the litigation herein?
The parties
were married in community of property. The joint estate consists of
two houses of moderate value, two pension funds
and some movable
property consisting of household goods, investments policies and
money in bank accounts. From the outset the Plaintiff
in her
particulars of claim claimed that a liquidator should be appointed to
divide the assets equally between the parties. The
Defendant
countered that the assets should not be liquidated but divided per
item between the parties (for instance, that the Plaintiff
keeps one
house and the defendant the other) and that his pension fund should
not be divided equally with the Plaintiff.
4.
There was
certainly a dispute, however, nothing to the extent that a Court
could not relatively easily decide on division of the
estate. In
short, neither the arguments regarding division of the joint estate,
nor the nature of the assets were unique within
the context of the
plethora of divorce proceedings brought daily in this division.
5.
So
why then the proverbial “War of the Roses’? Fortunately,
the Court does not
The
answer may lie somewhere within the context of Conradie AJ’s
reasoning in
Spangenberg
NO and Another v De Waal:
[1]
“
More
often than not, evidence of the irretrievable breakdown of a marriage
is emotional rather than factual in nature. When a spouse
states that
his or her marriage has irretrievably broken down, he or she is
making a statement of the heart rather than a statement
of fact
[2]
..”
“
Even
though marriage as an institution is today much more secular in
nature than it was a century ago, and even though divorce is
much
more prevalent and certainly socially more acceptable than then, the
deep personal nature of marriage has not changed and
it remains the
most intimate of all human relationships recognized by law.
It
is thus my considered view that the fact that fault no longer needs
to be proved makes the decision to institute divorce proceedings
rather more personal than less personal in nature.”
[3]
THE
CHILDREN:
6.
On the first
day, prior to commencement, I was informed that the parties have
reached a settlement pertaining to the children in
respect of all
issues, including maintenance, primary residence, parental
responsibilities and the reasonable contact rights of
the Defendant.
7.
In chambers,
it was indicated that the Family Advocate had not delivered a final
report but that there were two (2) interim reports
from her and that
a social worker has delivered progress reports (uploaded on
Caselines) pertaining to a reunification process
between the children
and the Defendant, which was instituted pursuant to a Rule 43(6)
order that was granted in 2021.
The terms
seemed of the agreement seemed to be in line with the opinion of the
social worker. I, however, requested counsel to upload
the interim
reports of the Family Advocate for perusal.
8.
On the first
day of trial both the Plaintiff and the Defendant testified and both
parties closed their respective cases.
The matter
then stood down to the following day for argument.
9.
Afterwards,
upon perusal of the interim report of the Family Advocate dated
December 2022, it became evident that the previous reunification
process was not done at the behest of the Family Advocate.
The Family
Advocate was only requested to do an enquiry in November 2022.
By that stage
the final report as to the reunification process had already been
furnished which indicated that the process had failed.
In terms of
that report the finding was that such a process should only be
reinstituted if either of the minor children approached
the social
worker directly requesting such a reunification process.
10.
In view of the
aforementioned I was not satisfied that during testimony, the
Plaintiff and Defendant respectively gave sufficient
evidence as to
the best interest of the children. Given that were certain
allegations that the parties may want to keep private,
which are
however relevant to the determination of the best interest of the
children, I offered the parties the option of recalling
the Plaintiff
and the Defendant to testify formally on record in Court or to have
an off-record discussion in chambers.
The parties
elected to have off record discussions.
11.
The content of
the off-record discussions will naturally not be repeated here,
however it is noted that the parties were given the
option to object
to certain information provided during the discussion. They indicated
that they have no objection to my consideration
of all the facts
revealed in exercising my function as the children’s upper
guardian.
Having had a
full and frank disclosure and discussion with both the mother and
father of the children, I, as upper guardian, am
satisfied that the
order I make herein does serve the best interest of the children.
DIVISION
OF THE ESTATE:
12.
The parties
were married in community of property to each other in 2008.
13.
The joint
estate consists of two immovable properties, which I will refer to as
the “
Centurion
property
”
and “
Moreleta
property
”.
Both the
properties are paid for in full.
The household
goods have largely already been divided, save for a few items that
remain in dispute as agreed upon between the parties.
Both parties
are members of a pension fund.
14.
The joint
estate also owes money to the Plaintiff’s father in respect of
a loan made for the acquisition of one of the properties
property.
The repayment
of the loan is however subject to an action instituted by the
Plaintiff’s father against the Plaintiff and Defendant
for
repayment.
I
have been informed that the question of the interest and the legal
costs are the main bones of contention in that action.
However both
parties concede that the repayment of the capital at least is a
liability that falls within the joint estate.
The loan was
approximately for R300 000-00.
Both parties
in argument agree that after division of the joint estate but prior
to distribution to the parties, an amount should
be kept separate for
purposes of satisfying the outcome of said action. The Plaintiff’s
counsel proposed an amount of R400
000-00 to which the Defendant’s
counsel at hearing raised mo objection.
15.
During
testimony the Defendant conceded that the Plaintiff was entitled to
an equal portion of his pension fund, as well as the
remainder of the
joint estate.
Effectively
therefore the issues pertaining to the division of the estate to be
decided were largely settled.
16.
The issue in
contention, however, remained the methodology of the division.
The Plaintiff
has, since inception of the matter in 2018, maintained that a
liquidator should be appointed.
The Defendant
has, for a similar period maintained that the costs pertaining to
such an appointment is detrimental to the joint
estate and that the
parties should be able to settle the question of how to divide the
joint estate.
Initially,
while testifying in the trial to finalise the dispute, the Defendant
seemingly still believed that settlement was possible.
The
realisation that amicable settlement was no longer an option did
however dawn of the Defendant during the course of the proceedings.
17.
During
argument on his behalf, it was initially submitted that the parties
should each retain a property, the defendant retain his
investments
and that the Plaintiff be compensated for the difference in value by
allocating her a larger percentage of his pension
fund.
18.
The
proposal however raised certain practical difficulties, such as
,
inter alia
,
the determination of values of the property
vis-à-vis
the
percentages of the value of the percentage of the Defendant’s
GEPF. (This difficulty, ironically, favours the appointment
of a
liquidator, as contended for by the Plaintiff.)
19.
A major issue,
that featured prominently in the arguments pertaining to the division
of the joint estate, as well as the cost arguments,
is that of the
Defendant’s failure to properly discover all his bank
statements, as well as his failure to disclose the existence
of two
bank accounts.
For purposes
of the methodology for the division of the joint estate it is only
relevant to note that during testimony the Defendant
admitted to
having two bank accounts that he had not disclosed during the
discovery process or on his financial disclosure form.
This, the
Plaintiff argues, necessitates the appointment of a liquidator with
the powers to fully investigate the extent of the
joint estate with
specific reference to the assets held by the Defendant.
# Legal
principles applicable to the appointment of a liquidator
Legal
principles applicable to the appointment of a liquidator
#
20.
Where parties
cannot agree on how to divide the joint estate, then either one or
both of them may approach the courts for the appointment
of a
receiver and liquidator. In
Botha
NO v Deetlefs and Another
2008
(3) SA 419
(N), for example, Koen J held at para 15 that:
‘
Upon
termination and in the absence of agreement, a receiver should in the
ordinary course and in the absence of agreement as to
how the
dissolution of the partnership is to be achieved, be appointed to
collect all assets, discharge debts and generally liquidate
the
partnership.’
21.
However, in
exercising its discretion a Court should also have regard to the
nature of the estate and the extent of the dispute
as to division.
For instance, in the case of
Schoeman
v Rokeby Farming Co (Pty) Ltd
1972
(4) SA 201
(N) at 206D-G the Court, in deciding whether or not the
size of the joint estate justified the appointment of a receiver and
liquidator,
held that:
“‘
[The
plaintiff] could claim the appointment of a liquidator … . In
this case, however, there does not seem to be any practical
purpose
in doing so. … There are no difficulties with regard to
capital contributions and it is simply a question of determining
the
expenses that have been incurred in the farming operations. …
The farming activities do not appear to have been particularly
complex nor to have extended over a long period. In fact the
partnership has been of a very restricted nature. In these
circumstances,
it appears to me to be unnecessary to go through the
formality of having a liquidator appointed … .”
# Finding
on the methodology for the division of the estate
Finding
on the methodology for the division of the estate
#
22.
The
unfortunate result of the failure to properly disclose his financial
status, is that the Court is not in an informed position
to make an
equitable order regarding the division itself.
Had there been
no
uncertainty
pertaining
to
the
cash
component
of
the
assets
held
by
the
Defendant,
it would
probably have been possible to dispense with the appointment of a
liquidator.
However, as
soon as investigations need to be done into the financial affairs of
a party, the Court is no longer in a position to
properly assess the
value of the joint estate.
23.
As such it was
found that a liquidator should be appointed.
I requested
both parties’ legal representatives to provide proposed draft
orders specifically indicating the process for the
nomination of said
liquidator, as well as his/her fees for consideration. However, on
the 17th
of
October 2023 I was informed that the parties had reached an agreement
on the identity of the liquidator, as well as his fee structure.
The
agreement will therefore be reflected in the order.
24.
The parties
have also provided a schedule of the household property still in
dispute, however, given the appointment of the liquidator,
it is not
necessary for this Court to decide on the division thereof, save for
noting these items for distribution by the liquidator
in the order.
25.
With regards
to the only real liability in the joint estate, the loan by the
Plaintiff’s father, I agree that a portion of
the capital
realised by the liquidation of the estate should be set aside pending
the outcome of the legal proceedings instituted
by the Plaintiff’s
father against the Plaintiff and the Respondent jointly for the
repayment of the loan.
COSTS:
26.
A Court’s,
already almost exclusive, discretion regarding the awarding of costs,
is expanded even further by Section 10 of
the Divorce Act, which
provides that costs need not be reliant on which party obtains
substantial success. Having so done away
with the golden rule insofar
as cost awards are concerned, the only guide that the Section
provides to a Court in exercising such
an unfettered discretion is
that regard
may
be had to the relative means of the parties as well as their conduct
throughout the proceedings, if relevant.
Costs may also
be apportioned between the parties.
27.
The Plaintiff
has argued that the Defendant should be ordered to pay the
Plaintiff’s costs in view of his conduct and the
relative means
of the parties.
The Defendant
has argued against such an order and argued that parties should each
pay their own costs.
# Arguments
regarding conduct
Arguments
regarding conduct
#
28.
The
Plaintiff’s counsel referred me to the following factors to
consider in support of her contention that the Defendant should
pay
her costs:
28.1.
The
Defendant’s failure to properly disclose and discover caused
the delay.
28.2.
The Defendant
obstinately refused to agree to the appointment of a liquidator
despite the
interventions
of the Deputy Judge President in February 2022
28.3.
The
Plaintiff obtained three orders on various dates against the
Defendant to compel him to make proper discovery of, mostly, certain
bank statements. In one of those orders, the Court expressed it
displeasure at the lackadaisical approach of the Defendant.
28.4.
The Defendant
did not disclose two bank accounts in his financial disclosure form
and only admitted to holding them during the hearing
itself.
29.
These facts
underscored arguments, loosely, centred around delay in finalisation
of the action and the defendant’s conduct
in general.
Delay
30.
A judicial
case management meeting was held before Deputy Judge President
Ledwaba on the 2nd
of
February 2022.
The transcript of the meeting has been made available to Court and
both parties have acknowledged the correctness
thereof.
The following
excerpts are significant in contextualising the discussion:
Judge
Ledwaba
:
Instead of starting with this issue of discovery and other things,
let's start
with the main
thing, on the issue is a question of permanent residence an issue”
………
.
(For
the Defendant)
Advocate
Fitzroy
:
Judge I think the matter must be set down for trial and if the steps
must be taken but the plaintiff in my view is delaying the
process by
requesting one document after the other where they can simply just
issue a subpoena if they struggle to get the participation
of the
defendant…. the matter needs to be finalized there's one
application after the other brought by the plaintiff.
………
.
Judge
Ledwaba
:
That's why you going to court to get a divorce, the permanent
residence is not an issue and then the ..... there would be what
can
I call it... structured a contact rights etc and you go for a simple
division the liquidator will deal with the question of
assets later.”
……
..
Judge
Ledwaba
:
If you agree on that and then you prepare a settlement agreement on
those basis this matter can be finalized still in February.
Instead
of delaying this matter unnecessarily with applications to compel,
costs are escalating unnecessary. So do you want an
opportunity to go
and discuss the proposals that I have said to you, get a divorce the
issue of the children you say is not a problem
anymore and then you
get a blanket division and you can even agree on who should be the
liquidator. The liquidator will deal with
the rest of the things. Is
it, is it not a maybe a sensible and practical way to, to deal with
this because there are allegations
that the defendant does not want
the matter to be finalized the defendant alleges that it is the
plaintiff whose asking for this
documents dragging the matter
unnecessary. Do you want to explore what I proposed to you and if you
have reached an agreement then
I can give you a date still in
February?
(For
the Plaintiff)
Advocate Joubert
: Yes Judge
Advocate
Fitzroy
:
That, That's a good suggestion and my learned friend and I will, will
do our best at the, how we can finalize this matter. .
……
(For
the Plaintiff)
Attorney
Geldenhuys
:
My Lord, I just want to clarify because when making an application we
will have to say that discovery was properly done and we
can't do it
at this stage.
Judge
Ledwaba
:
This is not a question of sin. The question of discovery is sort for
the purpose of division of the joint estate isn't it?
Attorney
Geldenhuys
:
Yes
Judge
Ledwaba
:
And if you agree that the liquidator is appointed, the liquidator has
got the power to go to the bank and deem whatever is needed
so the
parties can, the estate can be properly divided
31.
The inference
that the Plaintiff, seemingly, wants this Court to draw from those
proceedings, is that the parties had in principle
agreed to settle
the question of division on the basis of the appointment of a
liquidator. Had this agreement been reached, it
is argued, the
divorce could have been finalised in February 2022. The Defendant
subsequently, however, indicated that he wanted
to withdraw his
admission that the marriage had irretrievably broken down. As a
result hereof, the Plaintiff argues, the agreement
to settle fell by
the wayside, resulting in a further delay. I will deal with the
proposed withdrawal of the admission later in
this judgment.
32.
It is clear
from the excerpts that counsel did not bind the defendant to a
settlement agreement to appoint a liquidator. He agreed
to present
the (very) sensible proposal by the Honourable Ledwaba DJP, to the
defendant. There was therefore no agreement to renege
on. The
defendant clearly did not accede to the proposal and instead proposed
to amend his plea to deny the irretrievable breakdown.
(It is common
cause that such an amendment was never made).
33.
As counsel for
the Defendant rightly argued, a party cannot be penalised for the
mere failure to settle a matter where they are
entitled to defend
same.
Whether
or not the defence succeeds before Court is not an issue germane to
determining the obstructiveness or mala fides of the
conduct of the
party raising such a defence. Naturally, the relative strength of the
defence may be indicative of the possibility
that the party raising
it is obstructive or mala fide, but it cannot be regarded, especially
in divorce cases, as prima facie proof
of such impugned conduct. To
my mind most, if not all, defended divorces would, under those
circumstances, be subject to special
cost orders against the
“unsuccessful” party. This conclusion ties in with the
specific provision in Section 10 that
substantive success is not an
indicator of cost awards in divorce proceedings.
34.
Furthermore,
the failure to settle on the issue of dividing of the joint estate,
(or the failure to properly discover or disclose
financial
statements), cannot be said to have been a bar to the Plaintiff
obtaining the order for divorce along the lines of the
proposal.
In 2018 she
had already indicated that the joint estate should be divided by a
liquidator and that the issues pertaining to the
children should be
disposed of “
as
per the report of the family advocate
”.
35.
Ledwaba DJP in
fact indicated to the parties during the judicial case management
meeting that the incomplete disclosure and discovery
by the Defendant
becomes irrelevant (for the lack of a better word) once a liquidator
is appointed with the powers to in any event
investigate the
financial affairs of the parties.
36.
In terms of
the Divorce Act, a Court should order a decree of divorce once the
following two (2) requirements are met:
a)
That
there has been an irretrievable breakdown of the marriage;
[4]
and
b)
That
the rights of the children are adequately protected having had regard
to the report of the family advocate.
[5]
37.
These are the
only bars to the granting of a decree of divorce. There is no
requirement that there should be a settlement on the
patrimonial
aspects. In fact, once an irretrievable breakdown is proven and the
Court is satisfied that the interests of the children
have been
safeguarded, it has no discretion to refuse to order a decree of
divorce.
38.
Where
there is no agreement on the division of the joint estate to be
incorporated into the order, in terms of Section 7(1) of the
Act, the
joint estate will be divided upon the decree of divorce being
granted. As was recently held in
T.K.G
v M.N
:
“(
u)pon
a decree of divorce being granted dissolving a marriage in community
of property, the community of property existing between
the relevant
spouses terminates ex lege and their joint estate is (notionally)
divided on an equal basis
.”
[6]
39.
Therefore,
once a) and b) supra have been met the Court will order a decree of
divorce. That having been done, the estate is automatically
divided,
with or without a settlement agreement. The appointment of a third
party to administer the estate is an order the Court
may make in the
absence of such an agreement.. As state by Wallis JA in
Morar
NO v Akoo and Another
2011
(6) SA 311
(SCA):
“
When
a court of competent jurisdiction grants a decree of divorce that
partnership ceases. The question then arises, who is to administer
what was originally the joint property, in respect of which both
spouses continue to have rights? As a general rule there is no
practical difficulty, because the parties agree upon a division of
the estate, and generally the husband remains in possession
pending
such division. But where they do not agree the duty devolves upon the
court to divide the estate, and the court has power
to appoint some
person to effect the division on its behalf.”
40.
With regards
to the irretrievable breakdown requirement as per a) supra, it should
be noted that, by the time the possible withdrawal
of the admission
was canvassed by the defendant in 2022, the
parties
had
not
lived
together
for
approximately
three
years.
Therefore,
even
if
such
an
amendment
had been affected, the irretrievable breakdown would have been
prima
facie
proven
in terms of S4(1)(a) of the Act. The defendant’s proposed
amendment therefore was no real bar to a successful claim
for divorce
in this regard.
41.
However, the
same cannot be said with regards to the requirement pertaining to
children under b).
In all matters
where children are involved the family advocate at the very least
should endorse a settlement where provision is
made for care and
contact.
In
cases, such as the present one, where the settlement or any proposed
settlement would have fallen outside the norm given the
less than
favourable circumstances, the family advocate would probably have had
to conduct an enquiry (as she in fact started to
do).
42.
That the
Plaintiff was alive to the necessity of such a report from the family
advocate, is evident from her particulars of claim
dated 2018.
However, the
family advocate was only requested to conduct an enquiry in November
2022, well after the judicial case management
meeting in February
2022.
43.
During
argument counsel for the Plaintiff submitted that had the question of
the division of the estate been settled at that stage,
the settlement
pertaining to the minors could have been sent to the family advocate
for endorsement timeously for the matter to
still be finalised in
February.
This
submission presupposes the position the family advocate would have
taken at that stage and is speculative at best. What is
known is
that, in December 2022, the family advocate commented that, as the
reunification process had failed, she requested updated
psychological
reports on the Defendant as well as updated school reports. Clearly
the family advocate would not simply have endorsed
the agreement
without query.
44.
Accordingly,
the Defendant’s conduct, in terms of his non-disclosure,
failure to settle on the appointment of a liquidator
or his intention
to amend his plea, would not have been the true cause of the delay in
finalising the divorce.
45.
The fact that
the Defendant did not disclose certain bank accounts or that his
conduct in discovery led to the suspicion that he
may be hiding
certain cash assets would in fact have been one of the reasons in
advancement of the appointment of a liquidator.
46.
It appears to
this Cour that both parties fixated on the methodology for the
division of the joint estate and proper discovery as
a prerequisite
for a decree of divorce being granted and lost sight of the fact that
the only bar to the Court making an order,
in these circumstances
would be if there had been no enquiry into the best interest of the
children.
General
conduct of the Defendant
47.
During his
testimony the
Defendant
admitted
that he did
not
want
to
get
divorced and that he therefore
wanted
to
amend
his
plea
to
indicate
that
the
marriage
had
not
irretrievably
broken down.
This was not
because of an attempt to frustrate the legal process but due to him
“
fighting
”
for his marriage.
He testified
that after the Plaintiff left the marital home in 2018 he had made
significant attempts to change from the person he
“
did
not want to be”
into
the person that he should be for his wife and children.
He testified
that he had, for instance, stopped drinking and became involved in
church.
From
the reunification reports it is also evident that he made attempts to
change aspects of his behaviour that were deemed to be
objectionable
towards his children, such as his too strict disciplinary views.
48.
The Defendant
came across during testimony as a man who, until the day of trial
almost, still believed that his marriage could be
saved.
His recounting
of his reasoning pertaining to the unaffected amendment and the
reasons for objecting to the appointing of a liquidator
(costs and
wanting to keep certain assets for the children etc) He, to his own
detriment admitted to ownership of the undisclosed
bank accounts.
49.
Insofar as the
proposed amendment of the plea as proof of obstructiveness is
concerned, I do not find that the Defendant’s
conduct was
obstructive for the mere sake of being so.
He, in my
view, albeit misguidedly, legitimately believed that he could save
his marriage through his actions alone. His total disregard
for the
wishes of the Plaintiff, whilst deplorable, cannot, under the
circumstances, be elevated to wilfully
mala
fide.
In
the words of Conradie AJ in
Spangenberg
:
”
…
it
is very difficult for an outsider to prove that an individual no
longer loves or respects his or her spouse.”
[7]
50.
With regards
to the previous cost orders made in the compel applications and
specifically the Court’s previous express indication
of its
displeasure at the “lackadaisical” approach of the
Defendant, it is noted that
he was ordered
to pay attorney and client costs in that application. With regards to
the other two applications, he was ordered
to pay the costs on party
and party scale.
51.
During
argument, on behalf of the Defendant, it was further submitted that
the orders should not be seen in isolation but should
be compared
against the bulk of the discovered documents during the course of the
matter.
Essentially
the argument is that the bank statements requested formed part of a
much larger request for discovery and that the Defendant
for the most
part complied with the requests.
It was further
indicated that the divorce had been very involved and that throughout
the process the Defendant, as is evidenced
by the correspondences and
documents discovered over the course of 5 (five) years, was engaged
in the process and for the most
part complied with requests.
52.
I have already
discussed the issue of delay vis-à-vis the failure of the
defendant
to
properly discover and will not repeat those findings here, save to
make the following observations: The need for multiple applications
to discover bank statements (and in most cases only certain pages of
bank statements), in a case where the Plaintiff ab initio
wanted a
liquidator to be appointed, is dubious. The liquidator would in any
event have been able to obtain all the statements
sought. A party is
entitled to prepare his or her case to the best of their ability, but
where one is litigating from a joint estate,
sight should not be lost
of whether a particular step taken is necessary to achieve the
outcome sought.
53.
In any event,
cost orders had already been made against the Defendant in those
instances and his conduct was already assessed and
punished in one
instance. It would not behove this Court to sanction the duplication
of assessments on conduct and the institution
of double punitive
measures based on a such assessments.
54.
The
Defendant’s failure to disclose his ownership of the two bank
accounts on his financial disclosure form (or in discovery),
on the
other hand should draw the ire of this Court.
The form
itself contains a warning that failure to properly complete same
could result in adverse costs orders against such a non-compliant
party. The Defendant, during testimony, gave no justification or
explanation for this non-disclosure.
# The
relative means of the parties
The
relative means of the parties
#
55.
With regards
to the relative means of the parties, the financial disclosure forms
submitted by the parties indicate that the Defendant
earns more than
double (approximately R23 000) the income than that of the Plaintiff.
(approximately R11 000) However, once this
order is made, as agreed
between the parties, the Defendant will pay R4500 maintenance, the
full costs of medical aid for the children
as well as the costs
pertaining to school fees. He will also have to pay rent as the house
he lives in currently will be sold by
the liquidator.
56.
The Defendant,
on the face of the summary of capital per the financial disclosure
form, seems to be in a far better position with
an asset value of R2
322 563 the Plaintiff’s R485 264-00. However, once the joint
estate is liquidated, the only difference
in the total value of their
assets would be as a result of the legal costs incurred. The
Plaintiff’s legal costs are approximately
and estimated R780
000-00, whilst the Defendant’s are approximately R90 000-00.
Naturally, a portion of the Plaintiff’s
costs are, by virtue of
previous Court orders, already payable by the Defendant (estimated at
R140 000-00).
57.
It would be
inherently contradictory to have regard to legal costs as a factor in
determining the relative means of parties in order
to determine
liability for costs. I, in any event, do not understand the
section
to
indicate
that
“relative
means”
(within
the
context
of
a
joint
estate),
should
be
a prevailing
factor.
58.
Correctly
therefore, at the hearing, the conduct of the parties formed the
predominant part of the argument presented.
# Caselaw
Caselaw
#
59.
By way of
illustration as to how the Courts have decided costs in terms of
Section 10, regard could be had to the following two
cases:
60.
In
N.S
v M.F.S
(20/27078)
[2023] ZAGPJHC 1044 (19 September 2023), the parties were married in
community of property. The Defendant was self-represented
and had
brought no less than 12 applications against the Plaintiff; most of
which were not proceeded with once an answering affidavit
was filed.
At the hearing, the Defendant first sought to unilaterally remove the
matter from the roll, then requested a postponement
to obtain legal
representation. When given the opportunity to do so, he failed to. He
further refused to attend pre trials, failed
to sign a joint practice
and failed to discover. He would only comply with any part of the
pre-trial proceedings once compelled
by a Court to do so. After
proceedings were instituted, he cashed out his provident fund and did
not explain what he did with it,
he forged the signature of the
Plaintiff on her bank statements and damaged her vehicle. The
Defendant was ordered to pay 50% of
the Plaintiff’s costs.
61.
In
C
v C
(13116/13)
[2018] ZAGPJHC 535 (10 September 2018), an application for costs was
brought after the decree of divorce had been already
issued, based on
a consent order to divide the assets equally. However, the parties
could not agree on a liquidator or the amount
of rehabilitative
maintenance. Neither of these issues formed part of the application
under discussion. The Court made a finding
on the few facts before
it. In concluding that Defendant (the husband) should pay 50% of the
Plaintiff’s costs, Meyer J had
regard to the parties relative
means. The Defendant was a successful farmer whose earnings were
noted as R25 0000, but lived rent
free on the farm, did not pay for
electricity, received meat and dairy free and used vehicles which
belonged to the business. The
Plaintiff was a beautician/ office
worker who earned approximately R10 000-00 per month. The parties’
respective legal expenses
in the divorce were roughly similar.
# Finding
on costs
Finding
on costs
#
62.
As alluded to
supra, the relative means of the parties are not such that would
justify an order as prayed for by the Plaintiff or
any order
apportioning costs against the Defendant in favour of the Plaintiff.
63.
As
to the consideration of the Defendant’s conduct, I cannot find
that the delay in finalisation was solely his fault. The
exacerbation
of costs due to the applications brought by the Plaintiff is
mitigated against by the cost orders already made. Furthermore,
I
have already indicated that these applications were not strictly
necessary to finalise the divorce from the Plaintiff’s
point of
view. This does not mean that the Plaintiff is solely responsible for
the delay and exacerbated costs either. That the
Defendant wanted to
delay the divorce in an attempt to reconcile is obvious. However,
given the factors mentioned, I am not in
a position to determine
which portion of the exacerbated costs should be attributed to which
party. By ordering that the costs
of the divorce, save for the costs
already awarded against the defendant, be borne by the joint estate,
I will be holding each
party 50% responsible for the costs.
64.
The “punitive”
element, as regards the defendant’s conduct, lies in the
substantial increase in legal
fees
he
would
be
paying
for.
By
way
of
illustration:
Instead
of
paying
only
his
costs
of R90 000-00
as per the financial disclosure form, he would be responsible for 50%
of the total costs, excluding the costs awarded
against him already.
Using the figures, as per the form, purely for illustration, his
liability would be calculated as follows:
-
Total legal
costs: Plaintiff (780 000)+ Defendant (90 000) R870
000-00
-
Defendant’s
liability: 50%=
R435 000-00
-
Add: Costs
already awarded: +
R140 000-00
-
Defendant’s
total liability for legal fees =
R575 000-00
65.
The
Defendant’s failure to disclose the two bank accounts on the
financial disclosure form has, additionally, had an impact
on the
costs of the division of the joint estate. As already found, had
there been no question as to the true financial status
of the
Defendant (i. e. he had fully disclosed and discovered) the Court may
well have found that the appointment of a liquidator
is unnecessary,
especially given the concessions made at the hearing
The Court
would have been in a position to, for instance, order that the
properties be sold, that the parties are entitled to 50%
of the
respective spouses’ pension, that the disputed household items
be sold and divided and that the cash component as
contained in each
party’s bank statements similarly be divided. Provision with
regards to the payment of the loan (that is
still subject to an
action), could have been made with reference to certain of the monies
being paid into a trust account of, for
instance, an attorney.
66.
However, the
fact that the Defendant has not been frank with regards to his bank
accounts, has led this Court to conclude that a
liquidator must be
appointed to fully investigate the financial statement and assets
held by both parties.
Ironically,
that which the Defendant feared, namely the unnecessary expenditure
on the part of the joint estate due to the appointment
of a
liquidator, has materialised as a result of his own conduct.
On the other
hand, the Plaintiff has insisted on the appointment of a liquidator
from the start of the action. As such, the costs
so incurred should
be borne by her as well.
67.
I therefore
propose to apportion the cost of the liquidator’s fee between
the parties. In the exercise of my discretion, I
accordingly hold
that the Defendant is liable for 70% of the fees of the liquidator.
ORDER
68.
I accordingly
order as follows:
1.
A decree of
divorce is granted;
2.
The
Plaintiff
and
the Defendant
shall
retain full
parental
responsibilities
and
rights
of
the
two minor
children as well as guardianship in terms of Section 18 of the
Children’s Act 38 of 2005;
3.
The
primary
residence
of
the
minor
children
shall
be
awarded
to
the
Plaintiff,
subject
to
the reasonable
right to contact by the Defendant, which contact would be exercised
as follows:
4.
Contact rights
of the Defendant to be exercised as follows:
4.1.
The
reunification process will continue only after Ms Adell-Mari
Wolmarans has:
4.1.1.
assessed each
minor child and determined whether said minor child is ready to
commence the reunification process; and
4.1.2.
having had
regard to the the updated report of Ms Owens regarding the defendant,
or, in the alterative having had regard to a new
psychometric test
report regarding the defendant; and
4.1.3.
having
conferred with Ms Yolandi Heyns, the children’s current
psychologist.
4.2.
The
reunification process will continue under the supervision of Ms
Adell-Mari Wolmarans and assistance of the social worker Ms
Magriet
van Schalkwyk.
4.3.
The phasing in
of contact as per the reunification process will develop at a pace to
be determined by Ms Adell-Mari Wolmarans with
the assistance of Ms
Magriet van Schalkwyk
4.4.
Each next
phase will only be implemented after approval by Ms Adell-Mari
Wolmarans with respect to each minor child separately.
4.5.
Ms Adell-Mari
Wolmarans will confer with the minor children’s psychologist Ms
Heyns throughout the process.
5.
Costs not paid
for by the medical aid, as referred to in paragraph 6.3 below, in
relation to reunification process set out in paragraph
4 shall be
shared equally between the parties;
6.
Maintenance of
the minor children to be paid follows:
6.1.
The Defendant
will pay an amount of R 4,500.00 in respect of maintenance for the
minor children directly into the nominated bank
account of the
Plaintiff on or before the 3rd of every month, which amount will
increase by 5% every year on the anniversary month
of this order;
6.2.
The Defendant
will be liable to pay for the school fees of both minor children
directly to the respective institutions, the Plaintiff
to be liable
for the boarding school fees;
6.3.
The Defendant
will maintain the minor children and his medical aid;
6.4.
The Plaintiff
will be solely liable to pay any amounts not covered by the medical
aid;
6.5.
The Plaintiff
will be solely responsible for payment of school stationary, school
uniforms, equipment and clothing required for
extramural activities
and homeware;
7.
The
Plaintiff shall be entitled to 50% of the Defendant pension interest
held with the Government Employees’ Pension Fund,
with member
number 96329480 as at the date of divorce and that the Government
Employees Pension Fund be ordered to make payment
to the Plaintiff
and endorse its records accordingly;
8.
The Defendant
shall be entitled to 50% of the Plaintiff’s provident fund
interest held under Lifestyle Retirement Preserver
Fund, which is
held by Liberty with policy number 0069684871 as at the date of
divorce and that Liberty be ordered to make payment
to the Defendant
and endorse its records accordingly;
9.
The household
effects to be divided as per annexure “A” attached
hereto, the disputed item to be sold by the below nominated
liquidator and receiver and the proceeds to be shared between the
parties.
10.The
remainder of the joint estate as at date of divorce to be divided
between the parties by the appointed Liquidator and Receiver,
Mr
Jacques Fisher of Van Rooyen Fisher Trustees;
11.
The appointed
Liquidator and Receiver shall give effect to the division mentioned
in paragraph 10,
with the
following functions and powers:
11.1.
Demand that
both parties to provide a true and proper account of all their
assets;
11.2.
To value all
assets of the spouses both movable and immovable;
11.3.
To investigate
claims of assets being hidden by either of the parties;
11.4.
To establish
the true liabilities in the estate of the spouses;
11.5.
To interrogate
the parties as may be necessary;
11.6.
Have access to
any premises for purposes of valuating assets;
12.
Before
division occurs, the Liquidator shall keep an amount of R400 000.00
in abeyance until the finalisation of the matter under
case number
3420/2020 in which matter the parties are Defendants. Upon resolution
of the claim under case number 3420/2020 and
after payment of the
legal fees incurred or due in terms of such resolution or court
order, the liquidator must pay any residual
amount remaining to the
parties in equal shares;
13.
The
Liquidator
shall
adjust
each
party’s
share
of
the
joint
estate
to
be
paid
to
them
following
division, to give effect to the following:
13.1.
The costs of
the divorce as incurred by both the Plaintiff and the Defendant are
to be paid by the joint estate, but
13.2.
where costs
have already been awarded by court against the Defendant, his share
of the division stands to be reduced accordingly
and such amounts to
be credited to the Plaintiff;
13.3.
provided that,
where
the
defendant has already made payment, in respect of the costs
awarded
against him, the amounts paid shall not be included in the
adjustment.
13.4.
The Defendant
shall be liable for 75% of the liquidator’s fees and the
Plaintiff for 25%.
14.
The appointed
Liquidator and Receiver to be entitled to the fees as stipulated in
Tariff B in the Second Schedule to the
Insolvency Act, 24 of 1936
as
amended, as the remuneration of a Trustee under
Section 63
of the
Act, as applied to the value of the respective assets so divided by
him.
K
STRYDOM
ACTING
JUDGE OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
Judgment
reserved:
17
October 2023
Judgement
delivered:
6
November 2023
# Appearances:
Appearances:
Plaintiff’s
Legal representatives:
Attorneys:
Geldenhuys Botha Inc
Counsel:
Adv. M. Joubert
Defendant’s
Legal representatives:
Attorneys:
Anja Opperman Inc
Attorney
appearing as counsel: Anja Opperman
[1]
Spangenberg
NO and Another v De Waal (15226/2005)
[2007] ZAGPHC 233
;
[2008] 1
All SA 162
(T) (18 October 2007) at
[2]
Spangenberg
at page 14.
[3]
Spangenberg
at page 15.
[4]
Divorce
Act Section 4
[5]
Divorce
Act Section 6(1)
[6]
T.K.G
v M.N (44477/2021) [2023] ZAGPJHC 418 (4 May 2023) at para 42
[7]
Spangenberg
at page 15
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