Case Law[2022] ZAGPPHC 302South Africa
Van Zyl v Steyn (83856/15) [2022] ZAGPPHC 302 (3 May 2022)
High Court of South Africa (Gauteng Division, Pretoria)
3 May 2022
Headnotes
Summary: Application for leave to appeal against a costs order.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Van Zyl v Steyn (83856/15) [2022] ZAGPPHC 302 (3 May 2022)
Van Zyl v Steyn (83856/15) [2022] ZAGPPHC 302 (3 May 2022)
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sino date 3 May 2022
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
Case
No: 83856/15
Reportable:
No
Of
interest to other judges: No
Revised:
Yes
In
the matter between:
# VAN ZYL, JACOBUS
PETRUS
Applicant
VAN ZYL, JACOBUS
PETRUS
Applicant
and
STEYN,
MARIANNE
DESIREE
Respondent
Summary:
Application for leave to appeal against a costs
order.
### JUDGMENT
JUDGMENT
DE
VILLIERS, AJ:
Introduction
[1]
The respondent sued the applicant for division of a property jointly
owned.
Division was not in issue. The remaining issue became the
amount due upon division. The respondent claimed payment of R550
000.00,
and in the end the applicant admitted to an indebtedness, and
agreed to pay R310 000.00 during settlement negotiations. I had to
determine costs only and ordered that the costs of the action be
awarded against the applicant. I have dealt with the reasons for
my
order in a written judgment. I do not intend to traverse the reasons
for my findings, as I have done so in some detail in my
original
judgment. In short, I made an order that costs should follow the
result, I then looked at the fairness of such an order,
and concluded
that it was fair too. The applicant seeks leave to appeal against my
costs order to the full court.
[2]
No issue has been taken with my approach to look first at who the
successful
party was. In the end, the exercise of my discretion on
costs, was an exercise to determine what is fair, an enquiry in which
substantial
success carries significant weight. Substantial success
is often described as the general, although not an inflexible rule.
It
is not easily departed from, as in general, the purpose of a costs
award is to indemnify the successful party. On general principles
see
Ferreira v Levin NO and Others; Vryenhoek and Others v Powell NO
and Others
[1996] ZACC 27
;
1996 (2) SA 621
(CC) Para 3 (footnotes omitted):
“
The Supreme
Court has, over the years, developed a flexible approach to costs
which proceeds from two basic principles, the first
being that the
award of costs, unless expressly otherwise enacted, is in the
discretion of the presiding judicial officer, and
the second that the
successful party should, as a general rule, have his or her costs.
Even this second principle is subject to
the first. The second
principle is subject to a large number of exceptions where the
successful party is deprived of his or her
costs. Without attempting
either comprehensiveness or complete analytical accuracy, depriving
successful parties of their costs
can depend on circumstances such
as, for example, the conduct of parties, the conduct of their legal
representatives, whether a
party achieves technical success only, the
nature of the litigants and the nature of the proceedings. I mention
these examples
to indicate that the principles which have been
developed in relation to the award of costs are by their nature
sufficiently flexible
and adaptable to meet new needs which may arise
in regard to constitutional litigation. …
.”
Principles
(leave to appeal)
[3]
In essence the two parties were in agreement on the test that I had
to
apply to decide if I had to grant leave to appeal (underlining
added here and in the remainder of this judgment):
[3.1]
The applicant submitted in its heads of argument-
“
12. With the
promulgation of the Superior Courts Act, the legislator has
introduced a statutory jurisdictional requirement for applications
for leave to appeal.
13.
Leave
to appeal may accordingly only be given, when the appeal would have
reasonable prospects of success
.
[1]
”
[3.2]
The respondent submitted in its heads of argument-
“
2.1 The test
which was applied previously in applications of this nature was
whether there were reasonable prospects that another
court
may
come to a different conclusion.
[2]
2.2 What emerges from
section 17(1) is that
the threshold to grant a party leave
to appeal has been raised. It is now only granted in the
circumstances set out and is deduced
from the words “only”
used in the said section
.”
[4]
Despite these submissions, I had to address the test to be applied in
considering leave to appeal in this judgment, as the respondent’s
counsel brough a judgment to my notice. That judgment is
by the
Supreme Court of Appeal (“
the SCA
”) and it may
suggest a change in the current approach. That judgment is
Ramakatsa
and Others v African National Congress and Another
[2021] ZASCA
31
(31 March 2021). I revert to it later.
[5]
I commence by saying what test is not applicable on the facts of this
case. This is not a case where there is some “
other
compelling reason
” why an appeal should be heard as
contemplated in section 17(1)(a)(ii) of the Superior Courts Act, 10
of 2013 (“
the Act
”). The notice of application for
leave to appeal and argument did not suggest otherwise. It is thus a
case where the usual
test applies, as set out in section 17(1)(a)(i)
of the Act:
“
17(1) Leave to
appeal
may only
be given where the judge or
judges concerned
are of the opinion
that-
(a)
(i) the appeal
would have a reasonable prospect of success
; or
(ii) there is some
other compelling reason why the appeal should be heard, including
conflicting judgments on the matter under consideration;
(b
) …”
[6]
First, as a matter of logic, on the outer ends of the spectrum of
prospects
of success on appeal, one would have at the one end cases
that with certainty must fail on appeal. On the other end of the
spectrum,
one would have cases that with certainty must succeed on
appeal. Closer to the middle-ground between those two extremes, on
the
one side would be cases that probably would fail on appeal, and
on the other side, cases that probably would succeed on appeal.
Still
closer to the middle-ground, on the one side one would be cases that
are arguable (but not to any degree convincingly so),
and on the
other side cases that are arguable with some prospect of success.
Prospects of success would range from poor prospects
to good
prospects, with realistic prospects somewhere in-between. The wording
used in section 17(1)(a)(i) is that leave to appeal
may only be given
where the judge is of the opinion that the appeal would have a
reasonable prospect of success.
[7]
Historically and over time, different acts applied that governed
appeals,
but the test to grant leave to appeal has been
uncontroversial for some time. It was usually formulated as whether
there was a
reasonable prospect that a higher court may come to a
different conclusion. It was by no means a low threshold.
[8]
In
Rex v Baloi
1949 (1) SA 523
(A) at 524 the SCA held that
leave to appeal should not be granted unless the applicant has a
reasonable prospect of success on
appeal, and that this reasonable
prospect of success is not merely a fairly arguable case, or even an
arguable case. There must
be substance in the argument, it must carry
weight, as was held in
Afrikaanse Pers Beperk v Olivier
1949
(2) SA 890
(O) at 892. Put differently at 894 of the
Afrikaanse
Pers Beperk
judgment, reasonable prospects of success constitute
more than a mere possibility of success. A few decades later in
Van
Heerden v Cronwright and Others
1985 (2) SA 342
(T) at 343C-D,
the court rejected an approach that leave to appeal should be granted
in all but hopeless cases. The court held
that reasonable prospects
of success had to be shown, as had been the case over many years.
This approach was accepted as correct
in the SCA in
Westinghouse
Brake & Equipment (Pty) Ltd v Bilger Engineering (Pty) Ltd
1986 (2) SA 555
(A) at 561E. Even later, in
Smith v S
2012 (1)
SACR 567
(SCA) the court dealt with the test to be applied and the
Ramakatsa
judgment relies on the
Smith
judgment in
interpreting section 17(1)(a)(i), subsequently introduced. The
Smith
judgment rejected the argument that leave to appeal should only be
refused “
where there is absolutely no chance of success or
where the court is certain beyond reasonable doubt that such an
appeal will fail
”. It rejected the argument that leave to
appeal should be granted “
if there was a possibility of
success on appeal
”. It also rejected the argument that on
the other hand, leave to appeal should only be granted if there was a
balance of
probabilities of success on appeal. See Para 4-6 before
this summary of the law in Para 7:
“
What the
test of reasonable prospects of success postulates is a dispassionate
decision, based on the facts and the law
,
that a court of appeal
could
reasonably arrive at a conclusion different to that of the trial
court
.
[3]
In order to succeed, therefore, the appellant must convince this
court
on
proper grounds that he has prospects of success on appeal
and that those prospects are not remote
but
have a realistic chance of succeeding
.
More
is required to be established than that there is a mere possibility
of success, that the case is arguable on appeal or that
the case
cannot be categorised as hopeless
.
There
must, in other words, be a sound, rational basis for the conclusion
that there are prospects of success on appeal
”.
[9]
Against this background, the Act was introduced, and with it, section
17(1)(a)(i). As reflected in the full text quoted earlier, section
17(1)(a)(i) states that “
leave to appeal
may only
be given where the judge or judges concerned
are of the
opinion
that the appeal
would have a reasonable
prospect of success
”. Did section 17(1)(a)(i) raise the
threshold?
[10]
In this division, the legislated test set out in section 17(1)(a)(i),
has been held to
be a higher test than the test previously applied.
See the full court judgment,
Acting National Director of Public
Prosecutions and Others v Democratic Alliance In Re: Democratic
Alliance v Acting National Director
of Public Prosecutions and Others
[2016] ZAGPPHC 489 (24 June 2016) Para 25, 29 and 31. See especially
Para 25:
“
The Superior
Courts Act has raised the bar for granting leave to appeal. In
The
Mont Chevaux Trust (IT2012/28) v Tina Goosen & 18
Others
, Bertelsmann J held as follow:
"It is clear that
the threshold for granting leave to appeal against a judgment of a
High Court has been raised in the new
Act.
The former test
whether leave to appeal should be granted was a reasonable prospect
that another court might come to a different
conclusion
,
see
Van Heerden v Cronwright & Others
1985
(2) SA 342
(T) at 343H. The use of the word "would"
in
the new statute indicates a measure of certainty that another court
will differ from the court whose judgment is sought to be
appealed
against
."
[11]
Our courts did not read “
a measure of certainty that another
court will differ
” as a probability of success. In at least
one decision the SCA also held that the bar has been raised. See
Notshokovu v S
[2016] ZASCA 112
(7 September 2016) Para 2-
“…
An
appellant, on the other hand, faces a higher and stringent threshold,
in terms of the Act compared to the provisions of the repealed
Supreme Court Act 59 of 1959
.
(See
Van
Wyk v S, Galela v S
[2014] ZASCA 152
;
2015 (1) SACR 584
(SCA) para [14])
”;
[4]
[12]
Without seeking to produce a comprehensive list of judgments, the SCA
in dealing with section
17(1)(a)(i) of the Act, usually steers clear
from comparing the test before and after the introduction of section
17(1)(a)(i),
and simply addresses the test:
[12.1]
MEC for
Health, Eastern Cape v Mkhitha and Another
[2016] ZASCA 176
(25 November 2016) Para 16-18 (footnotes
omitted):
[5]
“
[16] Once again
it is necessary to say that leave to appeal, especially to this
court,
must not be granted unless there truly is a
reasonable prospect of success
.
Section 17(1)(a)
of the
Superior Courts Act 10 of 2013
makes it clear that leave to appeal
may only be given where the judge concerned is of the opinion that
the appeal would have a
reasonable prospect of success; or there is
some other compelling reason why it should be heard.
[17]
An applicant
for leave to appeal must convince the court on proper grounds that
there is a reasonable prospect or realistic chance
of success on
appeal. A mere possibility of success, an arguable case or one that
is not hopeless, is not enough. There must be
a sound, rational basis
to conclude that there is a reasonable prospect of success on appeal
.
[18] In this case the
requirements of 17(1)(a) of the
Superior Courts Act were
simply not
met. The uncontradicted evidence is that the medical staff at BOH
were negligent and caused the plaintiff to suffer
harm. The special
plea was plainly unmeritorious. Leave to appeal should have been
refused. In the result, scarce public resources
were expended: a
hopeless appeal was prosecuted at the expense of the Eastern Cape
Department of Health and ultimately, taxpayers;
and valuable court
time and resources were taken up in the hearing of the appeal.
Moreover, the issue for decision did not warrant
the costs of two
counsel
”;
[12.2]
Four Wheel Drive Accessory Distributors CC v Rattan NO
2019
(3) SA 451
(SCA) Para 34:
“
There is a
further principle that the court a quo seems to have overlooked –
leave to appeal should be granted only when there
is ‘
a
sound, rational basis for the conclusion that there are prospects of
success on appeal’
.
[6]
In the light of its findings that the plaintiff failed to prove locus
standi or the conclusion of the agreement, I do not think
that there
was a reasonable prospect of an appeal to this court succeeding, or
that there was a compelling reason to hear an appeal.
[7]
In the
result, the parties were put through the inconvenience and expense of
an appeal without any merit.”
[12.3]
Zuma v Office of the Public Protector and Others
[2020] ZASCA
138
(30 October 2020) Para 19-
“
Since there is
no appeal against the order dismissing the review,
the
only question is whether the appeal against the costs order has a
reasonable prospect of success
.
[8]
In this regard Mr Zuma
faces
a formidable hurdle: in granting a costs order, a lower court
exercises a true discretion
.
An appellate court will not interfere with the exercise of that
discretion, unless there was a material misdirection by the lower
court
”;
[12.4]
Fusion Properties 233 CC v Stellenbosch Municipality
[2021]
ZASCA 10
(29 January 2021) Para 18-
“
Since the
coming into operation of the
Superior Courts Act, there
have been a
number of decisions of our courts which dealt with the requirements
that an applicant for leave to appeal
in terms of
ss
17(1)(a)(i)
and
17
(1)(a)(ii) must satisfy in order for leave to be
granted.
The applicable principles have over time
crystallised and are now well established
.
Section 17(1)
provides, in material part, that leave to appeal
may only
be granted
'where the judge or judges concerned are
of
the opinion that
-
'(a) (i) the appeal
would have a reasonable prospect of success
; or
(ii) …'
It is manifest from
the text of
s 17(1)(a)
that an applicant seeking leave to appeal must
demonstrate that the envisaged appeal would either have a reasonable
prospect of
success
, or, alternatively, that 'there is
some compelling reason why an appeal should be heard'. Accordingly,
if neither of these discrete
requirements is met, there would be no
basis to grant leave
…”;
[12.5]
Nwafor v The Minister of Home Affairs and Others
[2021] ZASCA
58
(12 May 2021) Para 25:
“
Section
17(1) of the Act sets out the statutory matrix as well as the test
governing applications for leave to appeal. The section
states in
relevant parts, and in peremptory language, that leave to appeal may
only be given where the judge or judges concerned
are of the opinion
that
:
‘
. (
the text
of the section is then set out
) ...”;
[12.6]
Chithi and Others; In re: Luhlwini Mchunu Community v Hancock and
Others
[2021] ZASCA 123
(23 September 2021) Para 10:
“
The
threshold for an application for leave to appeal is set out in
s
17(1)
of the
Superior Courts Act, which
provides that leave to appeal
may only be given if the judge or judges are of the opinion that the
appeal would have a reasonable
prospect of success
. …”
[12.7]
Khathide v S
[2022] ZASCA 17
(14 February 2022) Para 4,
“
Section 17(1)
of the Superior Courts Act 10 of 2013 (the Act) provides that:
‘
Leave to appeal
may only be given where the judge or judges concerned are of the
opinion that–
(a)(i) the appeal
would
have a reasonable prospect of success; or
(ii) …
In considering an
application for leave to appeal, a court must be alive to the
provisions of s 17(1) of the Act as quoted above
.”
[13]
The
Ramakatsa
judgment Para 10 implicitly held that the bar
has not been raised by the introduction of section 17(1)(a)(i). The
question is if
the
Ramakatsa
judgment lowered the threshold
that a court must determine if an appeal would have a reasonable
prospect of success:
“
[10] Turning
the focus to the relevant provisions of the
Superior Courts Act
>
[9]
(the SC Act), leave to appeal may only be granted where the judges
concerned are of the opinion that the appeal would have a reasonable
prospect of success or there are compelling reasons which exist why
the appeal should be heard such as the interests of justice.
[10]
…
I am mindful of the decisions at high court level debating whether
the use of the word ‘
would
’
as opposed to ‘
could
’
possibly means that the threshold for granting the appeal has been
raised. If a
reasonable
prospect of success
is established, leave to appeal should be granted. ... The test of
reasonable
prospects of success
postulates a dispassionate decision based on the facts and the law
that
a
court of appeal could reasonably arrive at a conclusion different to
that of the trial court
.
In other words, the appellants in this matter need to convince this
Court on proper grounds that they have
prospects
of success
on appeal. Those prospects of success must not be remote, but there
must exist
a
reasonable chance
of succeeding. A sound rational basis for the conclusion that there
are
prospects
of success
must be shown to exist
.
[11]
”
[14]
In restating the requirements of the section in the second part of
the paragraph, the court:
[14.1]
Restated the test of “
would have a reasonable prospect of
success
” as meaning “
a court of appeal
could
reasonably arrive at a conclusion different
to that of the
trial court
”. I do not read this as different in meaning;
[14.2]
Omits twice the word “
reasonable
” in formulating
the test as to “
have prospects of success on appeal
”
and as “
there are prospects of success
”. However,
the word “
reasonable
” appears in other parts of
the paragraph, formed part of the traditional test, formed part of
the reasoning in both judgments
relied upon (
Smith
and
Mkhitha
), and has been emphasised in several SCA judgments.
Read in context, I do not read these formulations as intending to
remove the
assessment of reasonableness from the assessment of the
prospects of success;
[14.3]
Restates the test of “
would have a reasonable prospect of
success
” as meaning “
a reasonable chance of
succeeding
”. In so doing the court did not use the wording
in the
Mkhitha
judgment (“
a reasonable prospect or
realistic
chance of success on appeal
”).
The court also did not use the wording in the
Smith
judgment
(“
those prospects are not remote but have a
realistic
chance of succeeding
”). The main difference is the omission
of the word “
realistic
” and replacing it with
“
reasonable
” in using the word “
chance
”.
The word “
prospect
” in itself often seeks to
convey an expectation or anticipation of future success. Accordingly,
to be “
prospectles
s”, is to have no expectation or
anticipation of future success. The Act made the meaning of
“
prospect
” clear by the use of the words
“
reasonable prospect of success
”. A “
chance
”
on one interpretation may be more speculative than a “
prospect
”,
being an unexpected happening. However, when the word “
realistic
”
is added thereto, it seems to me too to convey “
reasonable
prospect”.
Did the court intend to lower the threshold by
using “
reasonable chance
”? Read in context, I
think not. The fact that success on appeal must be more than a chance
of success forms part of the legislated
test, formed part of the
traditional test, formed part of the reasoning in both quoted
judgments (
Smith
and
Mkhitha
, both of which held that
the chance of success must be realistic), has been emphasised in
several SCA judgments. Accordingly in
the absence of a finding that
other judgments clearly have been wrongly decided, I do not read the
formulation of “
reasonable chance
” as intending to
remove the assessment of how realistic the chance of success would
be. As held in the
Mkhita
judgment there must
truly
be
a reasonable prospect of success.
[15]
Accordingly, in my view the
Ramakatsa
judgment did not lower
the threshold as generally applied. All courts must still determine
if an appeal would have a reasonable
prospect of success. In applying
the legislated test, this judgment need not deal with the conflict
between the
Ramakatsa
judgment and the
Notshokovu
judgment about the question if section 17(1)(a)(i) postulates a
higher test than before or not.
Principles
(the remainder)
[16]
Having had to address the test to apply in granting leave to appeal
in some detail, the
far greater matter of importance in this matter
is that a costs judgment reflects the exercising of a judicial
discretion on costs.
This is so as I exercised a true discretion, in
deciding from a number of equally permissible options, to award costs
against the
applicant.
[17]
A court of appeal would first have to consider if there are grounds
to interfere with the
exercise of my discretion. Once that hurdle is
crossed, it could alter my judgment if it believes the outcome to be
wrong, but
only then. The grounds for interfering with the exercise
of my discretion are usually only where my discretion was not
exercised
judicially, or where my decision was influenced by wrong
principles, or where my decision was affected by a misdirection on
the
facts, or where my decision could not reasonably have been
reached by a court properly directing itself to the relevant facts
and
principles. The law in this regard is settled and needs no
detailed discussion. See amongst others
National Coalition for Gay
and Lesbian Equality and Others v Minister of Home Affairs and Others
2000 (2) SA 1
(CC) Para 11,
Trencon Construction (Pty) Ltd v
Industrial Development Corporation of South Africa Ltd and Another
2015 (5) SA 245
(CC) Para 83-89,
Public Protector v South African
Reserve Bank
2019 (6) SA 253
(CC) Para 144-145, the
Zuma v
Office of the Public Protector and Others
Paragraph 20-22.
[18]
The approach of restraint, namely of a court of appeal being slow to
interfere with a judgment
on costs, is trite too. See
Hotz and
Others v University of Cape Town
2018 (1) SA 369
(CC) Para 25 and
28. The impact is that leave to appeal based against costs orders
only, is rare. See
Tebeila Institute of Leadership, Education,
Governance and Training v Limpopo College of Nursing and Another
[2015] ZACC 4
;
2015 (4) BCLR 396
(CC) Para 13.
[19]
The threshold that the applicant faces does not end here. As set out
the above judgments,
section 16(2)(a) of the Act requires that
exceptional circumstances must be established for the applicant to
succeed in an application
for leave to appeal on costs. “
Very
substantial
” costs could be a ground for finding
exceptional circumstances. See
John Walker Pools v Consolidated
Aone Trade & Invest 6 (Pty) Ltd (in Liquidation) and Another
2018 (4) SA 433
(SCA) Para 8, referring to
Oudebaaskraal (Edms)
Bpk en Andere v Jansen van Vuuren en Andere
2001 (2) SA 806
(SCA)
812D-E, a case where the trial and for several days, experts
testified and senior lawyers were used. (The judgment dealt
with a
similar provision that existed under the previous legislation,
section 21A of the Supreme Court Act, 59 of 1959.) In
Naylor and
Another v Jansen
2007 (1) SA 16
(SCA) Para 10 the SCA also dealt
with section 21A and held that “
a failure to exercise a
judicial discretion would (at least usually) constitute an
exceptional circumstance
”.
[20]
It seems to me that the real enquiry remains prospects of success to
determine exceptional
circumstances. The stronger those prospects of
showing that I failed to exercise my discretion on costs judiciously,
the closer
one gets to finding exceptional circumstances too. It
seems to me that such a weighted approach would tie into a finding
that a
decision is appealable in the interests of justice as being
the primary test. See
Van Huyssteen and Others v Pepkor Speciality
(Pty) Ltd and Another
[2020] ZASCA 78
(30 June 2020) Para 19,
United Democratic Movement and Another v Lebashe Investment Group
(Pty) Ltd and Others
[2021] 2 All SA 90
(SCA) Para 8-9, and the
Ramakatsa
judgment Para 10.
The
merits
[21]
The applicant relied on
Merber v Merber
1948 (1) SA 446
(A) at
453-454:
“
It seems
therefore that, when a successful party has been deprived of his
costs in the trial court, an appeal court will enquire
whether there
were any grounds for this departure from the general rule and if
there are no such grounds, then ordinarily it will
interfere. But
when, as in the present case, the general rule has been followed,
then the appellant must first show that there
were grounds for
departing from the rule and, if there are such grounds, that the
trial Judge, in refusing to depart from the rule,
has either failed
to take such grounds into consideration or has acted arbitrarily in
not giving effect to them by depriving the
successful party of his
costs. In either of these events the appeal court would be free to
exercise its own discretion. The mere
fact that the appeal court
would have given more weight to the grounds does not mean that the
judge has acted arbitrarily, i.e.
not with a judicial discretion. In
the present case the learned Judge has taken into consideration the
facts which the appellant
contended entitled her to an order
depriving the respondent of his costs and I see no justification
whatever for holding that he
did not exercise a judicial discretion
in holding that they did not warrant the relief claimed by the
appellant
.”
[22]
The reasoning in my judgment is detailed. As stated at the outset, I
refrain below as far
as possible from repeating my reasoning.
However, I make some remarks on the particular issues raised.
[23]
The applicant’s primary argument was that it was the successful
party and that I
deprived him of his costs as I misdirected myself
when I found that that the respondent was substantially successful.
The applicant
argued that he was the successful party as he had
achieved success before Louw J in obtaining an order that would guide
the further
conduct of the matter. With respect, I disagree for the
reasons set out in my main judgment.
[24]
The application for leave to appeal goes beyond the summary of the
applicant’s case
set out in the previous paragraph and it
discloses additional difficulties. The first formulation in the
notice of application
for leave to appeal of the argument on success
is:
“
The Defendant
pleaded exactly how the parties should calculate what is owed between
the parties, which plea was verbatim made an
order of Court by the
Honourable Justice Louw J on 16 March 2021, which was complete
success by the Defendant and not partial
”.
[25]
It is in part correct that the court order did follow many of the
suggestions in the plea/counterclaim
as to the method to be followed
in calculating (what would in the end be the applicant’s)
indebtedness and that it did not
follow the respondent’s
pleaded method. That is not the whole truth, however. The order added
matters that were not pleaded
by the applicant. It added timelines,
it provided for compulsory use of referees, it provided for
compulsory mediation, and it
added (seemingly without exception) for
vouchers and proof of payments to be produced to prove payment of
expenses. The crucial
matter, as set out in my judgment, is that the
applicant was ordered to account for his occupation of the property.
(This finding
not only upholds a pleaded contention by the
respondent, but is in conflict with the terms of an agreement as
pleaded by the applicant
that omitted this obligation.) It is not
contended that I erred in my assessment that the finding on liability
turned out to be
crucial in the matter. Assuming that I was wrong
(and not making such a finding) and that the applicant was indeed
completely successful
before Louw J, it is but one battle in the war.
The matter appears to have been seen as such by Louw J, as he
reserved costs, and
did not order that the costs follow the alleged
success before him. His order has not been challenged.
[26]
The incorrect version of complete success before Louw J soaks through
the notice of application
for leave to appeal. An added difficulty
for the applicant is that it is not clear what occurred before Louw
J. The counsel who
appeared before me, were not present at that
hearing. Seemingly without hearing evidence and without giving a
judgment, an order
was issued. I assumed in my judgment that the
order was by consent, as all the objective facts point thereto. The
applicant disagrees
and advances a version in its application for
leave to appeal that a combined draft order became necessary, that
there was no agreement
on the draft to be made an order or court, and
that the applicant’s draft prevailed. This is not common cause,
but it seems
not to matter. Even assuming that the applicant achieved
some success (or the greater success) on the process to be followed,
it
was but one step in the proceedings, as I held in my judgment.
[27]
The further difficulty that the applicant faces, is that there was no
trial before me during
which I could observe the impact of the order
by Louw J on the proceedings. The matter was settled. I was not
present during that
process, and have no knowledge what concessions
the parties made, or what the reasons for making such concessions
were.
[28]
As set out in my main judgment, I did consider what substantial
success meant in the matter.
I had to decide and found that the
applicant did not achieve success as meant in the application of the
general rule, the respondent
did. I gave reasons for my findings. Bar
really a dispute as to what happened before Louw J, my factual
grounds for my order are
not challenged. In order to overturn my
finding on appeal, the applicant had to make out a case that I
misdirected myself
on the facts before me
as to who was
substantially successful.
[29]
I also set out in my judgment the reasons why I believe that the
outcome that costs should
follow the result, is fair too. The
applicant raises a number of errors I allegedly made in this process
as support of contentions
why I should have awarded costs to him. In
general application of the guidelines that courts follow, once I find
that the respondent
was substantially successful, the question was if
fairness dictated that the respondent should be deprived of costs.
Again, most
of the factual findings I made are not challenged, but
some are.
[30]
The first group of contentions are that I erred in not considering
that the process agreed
upon before the institution of the action,
was not completed. I dealt with this aspect in my judgment. I came to
the view on the
facts of the matter that the institution of legal
proceedings became necessary when the process failed to deliver
results. It seems
to me beyond doubt that the process to resolve the
matter failed therein and so did several court hearings. It is clear
from my
judgment that I considered and disagree with the submission
that the respondent “
simply complied with that agreement and
not have issued summons, then the matter could and should have been
finalised years ago
”, as argued before me. Again, in order
to overturn my finding on appeal, the applicant had to make out a
case that I misdirected
myself on the facts before me.
[31]
The second group of contentions are about the liability of the
applicant to account for
his occupation of the property. It is
alleged that I erred when I found that he must always have known that
he was indebted to
the respondent. I erred, it is alleged, as the
applicant did not have to account for the use of the property until
the order by
Louw J. It is a submission that has its inherent
problems. (a) The respondent raised this failure to account in her
plea. Assuming
that liability was initially rejected by the
applicant, on his version he came round to this view before the order
by Louw J as
he contends that Louw J issued the order he proposed.
(b) I believe an argument that the applicant believed that he could
appropriate
sole use of the joint property with no consequences,
would face some difficulty. (c) But assuming (and not making such a
finding)
that I am wrong, and the applicant had believed that he did
not have to account for his occupation of the property before March
2017, after that date he had no excuse for taking it into account.
But does it matter? Would it have been a ground to find it unfair
to
order costs against the applicant? The answer, with respect, is
clearly not.
[32]
Linked to
the second group of contentions is that I erred in allegedly blaming
the applicant for not settling the matter earlier.
As set out in my
judgment I came to the view that the applicant had sufficient
information to make a tender (this is not challenged),
or to resolve
the matter, and that it was fair that he carries the cost of the
proceedings. The grounds upon which I made those
findings are not
disputed. Various excuses were raised in the application for leave to
appeal as to why the applicant did not offer
to settle the matter: He
was entitled in law to follow the accounting process to its end (I
agree that this was the case after
the order by Louw J, leaving aside
what the position might have been before the order on the facts of
this case), he was entitled
in law not to make an offer of settlement
(I agree), the respondent made no offers to settle (addressed in the
footnote below),
[12]
and the
respondent changed the amounts claimed from time to time (it seems to
be correct, although the pre-trial minutes raise
no prejudice it
seems). I again raise the question if any of it matters and would it
have been grounds upon which one could find
it unfair to order costs
against the applicant? The answer again, with respect is clearly not.
Again, in order to overturn my finding
on appeal, the applicant had
to make out a case that I misdirected myself on the facts before me.
[33]
In summary where leave to appeal is sought under section 17(1)(a)(i)
of the Act, being
where it is not a case where there is some “
other
compelling reason
” why an appeal should be heard as
contemplated in section 17(1)(a)(ii):
[33.1]
I may only (and must) give leave to appeal if I am of the opinion
that the appeal
would have a reasonable prospect of success;
[33.2]
I must find that there is a sound, rational basis for such a finding
of reasonable
prospects of success of a court on appeal interfering
with my judgment;
[33.3]
Reasonable prospect of success in an appeal against a costs order is
that the applicant
must show that (a) I failed to exercise my
discretion judiciously on some ground (in this case that my judgment
reflects a material
misdirection), and (b) that my decision was
wrong. In many cases, the first inquiry will determine the second as
well;
[33.4]
The applicant further has to show that that exceptional circumstances
exist to
grant leave to appeal, as contemplated in section 16(2)(a)
of the Act.
[34]
In an appeal against the exercise of a discretion on costs, the
hurdle is formidable, as
was held in
Zuma v Office of the Public
Protector
. Such a hurdle cannot be insurmountable, but I find
that there is not a sound, rational basis for a finding of reasonable
prospects
of success on appeal on grounds that I misdirected myself
or that I failed to exercise my discretion judiciously for some other
reason. In my assessment there are no prospects of success on appeal
and the application must fail.
[35]
With regard to exceptional circumstances to grant leave to appeal,
the matter before me
was relatively simple, would not have required
extensive preparation, and, in the end, amounted to an accounting
exercise after
the order by Louw J. The issues were not wide-ranging,
and the facts not complicated. Ultimately the case was settled on the
first
day of trial and I heard argument on costs the next day. Costs
were increased as the matter was crowded out on several occasions.
As
such there would have been additional costs of the appearances on the
first days, some duplicated pre-trial meetings and the
like, and some
duplicated refreshing of the preparation. In my assessment the costs
were not very substantial, or substantial,
in as far as High Court
litigation is concerned. I thus further find that there are no
exceptional circumstances to grant leave
to appeal, whether due to an
error of justice, or the costs involved, or any other reason, and the
application must fail.
[36]
Also, there is no factual basis why the interest of justice requires
that this matter must
continue. The easy decision is to grant leave
to appeal. It is a comfort that someone else may fix an error made in
adjudicating
a matter. We all err. Taking the easy decision comes at
a cost when it is the wrong decision. Granting leave to appeal in an
unmeritorious
matter, chokes the roll and thus prevents access to
justice, and comes at a cost to the respondent (both financial and in
delaying
the completion of a matter). The application must be
dismissed.
Rule
42
[37]
This is not the end of the matter. The parties had agreed to a draft
order being made an
order of court. It seems that I did not make it
an order of court. It is unclear where and how the error arose. The
applicant’s
counsel stated that there was an earlier version to
which he had agreed that had left the costs portion blank. It seems
that it
was intended to have formed part of his heads of argument at
the time, and he recalls that the respondent’s counsel uploaded
it to CaseLines system for the order to be made. Various technical
difficulties exist to trace the history fully. The current draft
order was uploaded onto the CaseLines system only after I delivered
judgment. Before me it was common cause that it was a patent
omission
from my main judgment, no matter how the error occurred. There was
agreement at the hearing of this application that I
could make the
draft order that appears on CaseLines an order of court acting in
terms of Rule 42(1)(b). I do so below.
Accordingly,
I make the following order:
1.
The application for leave to appeal is dismissed with costs;
2.
The order annexed hereto marked “A”, dated and initialled
by me,
is made an order of court.
DP
de Villiers AJ
Heard
on:
11 April 2022
Delivered
on:
3 May 2022 by uploading on CaseLines
On
behalf of the applicant:
Adv R Ellis
Instructed
by
Tiaan Smuts Attorneys
On
behalf of the respondent:
Adv M Snyman SC
Instructed
by
ML Schoeman Attorneys
[1]
“3
.
E-TV
v Minister of Communications
2015 JDR 2418 JDP, at [11);
Minister
of Justice & Constitutional Development v Southern Africa
Litigation Centre
2015 JDR 2102 (GP).
”
[2]
“
1.
Commissioner
of Inland Revenue v Tuck
1989 (4) SA 888
(T) at 890
”
[3]
“
11.
S
v Mabena & another
2007 (1) SACR 482
(SCA) para 22
.”
[4]
The
Ramakatsa
judgment does not refer to this case.
[5]
The
Ramakatsa
judgment refers with approval to this judgment.
[6]
“
23
S
v Smith
[2011] ZASCA 15
;
2012 (1) SACR 567
(SCA) para 7
.”
[7]
“
24
Section 17
of the
Superior Courts Act 10 of 2013
provides in
relevant part:
...”
[8]
“
[5]
In terms of
s 17(1)
of the
Superior Courts Act 10 of 2013
,
leave
to appeal may be granted only where the court is of the opinion that
the appeal has a reasonable prospect of success
.”
[9]
“
5.
Section 17(2)(d)
Act 10 of 2013
.”
[10]
“
6.
Nova
Property Holdings Limited v Cobbett & Others
[2016] ZASCA 63:
2016 (4) SA 317
(SCA) para 8.”
[11]
“
9.
See
Smith
v S
[2011] ZASCA 15
;
2012 (1) SACR 567
(SCA);
MEC
Health, Eastern Cape v Mkhitha
[2016] ZASCA 176
para 17
.”
[12]
It is correct that the respondent made no formal offers to settle.
But the respondent did initially seek to settle the matter,
and did
try to arrange a settlement meeting. My judgment contains an
averment by the respondent’s then counsel about her
opponents
having taken the approach that she had to prove her case in court as
attitudes hardened. This is challenged in the
notice of application
for leave to appeal as an error to accept the statement by counsel.
However, the objective evidence in
pre-trial minutes and in the
facts of prior, postponed hearings where it is not even suggested
that settlement negotiations took
place, support what she averred.
The pre-trial minute of 23 October 2019 recorded that the parties
agreed that the matter could
not be settled.
sino noindex
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