Case Law[2022] ZAGPPHC 774South Africa
Eskom Holdings SOC Limited v Sisu Somhambi Electrical Construction CC and Another (42822/2021) [2022] ZAGPPHC 774 (20 October 2022)
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Eskom Holdings SOC Limited v Sisu Somhambi Electrical Construction CC and Another (42822/2021) [2022] ZAGPPHC 774 (20 October 2022)
Eskom Holdings SOC Limited v Sisu Somhambi Electrical Construction CC and Another (42822/2021) [2022] ZAGPPHC 774 (20 October 2022)
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sino date 20 October 2022
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO:
42822/2021
REPORTABLE:
NO
OF
INTEREST TO OTHER JUDGES: NO
REVISED:
NO
20
October 2022
In
the matter between:
ESKOM
HOLDINGS SOC LIMITED
Applicant
and
SISU
SOMHAMBI ELECTRICAL CONSTRUCTION CC
First Respondent
DANIEL
MNISI
Second
Respondent
#
# JUDGMENT
JUDGMENT
#
# DE
VOS AJ
DE
VOS AJ
Introduction
[1]
The parties request the Court to resolve
a dispute regarding the interpretation of a servitude. The
parties agree that there
exists a servitude in favour of Eskom on the
respondents’ property. The parties agree that the purpose of
the servitude is
to permit Eskom to erect electrical towers and an
overhead powerline. The parties agree the width of the
servitude is
55 meters and that the respondents cannot build on the
55 meters.
[2]
The parties' disagreement is from where
to calculate the 55 meters. Eskom contends that the 55 meters
start from the “center
line of the powerline.” This
means that the respondents cannot build 55 meters from the center
line of the powerline.
Eskom calculates the starting point of
the servitude to be the center line of the powerline.
[3]
The respondents contend that the total
width of the servitude is 55 meters, 27.5 meters on either side of
the center line.
This means the respondents cannot build 27.5
meters on either side of the center line of the powerline. The
respondents contend
the servitude straddles the center line of the
power line.
[4]
The dispute the Court has to determine
is whether the 55 meters is calculated from the center line of the
powerline or whether the
55 meters straddle the center line, which
results in a servitude of 27.5 meters on either side of the center
line of the power
line.
[5]
Whilst the parties are only 27.5 meters
apart, the determination of the dispute has weighty consequences for
both parties.
The respondents have built a hotel on its
property. The hotel consists of twenty-two rooms, a spa,
cinema, double story hall,
restaurant, three conference halls,
amphitheatre building and ancillary hotel facilities. The hotel
construction is near completion.
It cost of approximately R 500
000 000.00. If Eskom is correct in its interpretation then
parts of the hotel encroaches on
the servitude and has to be
demolished.
[6]
Eskom requires the servitude to erect
electrical towers, as part of the Kusile-Lulamisa Powerline which
forms part of the Kusile
integration scheme to evacuate electrical
power from the Kusile Power Station in order to strengthen the
network in the norther
part of Johannesburg. The project is known as
the Kusuile-Lulamisa 400kV-Setion A Project. Eskom pleads that this
is a high priority
project of the national government.
[7]
The respondents have raised several
points in limine. The Court dismisses the points in limine.
The points are dealt
with, conveniently and unconventionally, at the
end of this judgment.
[8]
The case turns on an interpretation of
the Option Agreement and the Deed of Servitude.
The
option and deed
[9]
The
events leading to the registration of the servitude are common cause.
In December 2010 Eskom concluded a written option to acquire
a
servitude with the previous owner.
[1]
The option provides, in essence, for a servitude of 55 meters in
width and that Eskom would acquire the option to register
a servitude
in general terms. The option provides Eskom with the right to
conduct electricity over the property with
one
above ground powerline.
[2]
The option provides in clause 3 that the owner’s property use
is limited. The provision is central to the
dispute and
provides that the owner may not build within 27.5 meters of the
center line of the of the powerline.
[3]
The
Afrikaans text of the option states that the owner is prohibited from
building 27.5 from the "hartlyn"
of the powerline.
This has been translated, without dispute, to be the center line of
the powerline.
[10]
The option provides for:
a)
A servitude for Eskom extending 55
meters in width;
b)
To build
only
one
powerline; and
c)
A prohibition for building within 27.5
meters from the heartline of the powerline.
[11]
Attached to the option is a sketch plan.
The sketch plan indicates the route of the proposed powerline
with arrows pointing
towards the middle of the line with 55 m marked
next to the arrows. The sketch is replicated at the end of the
judgment.
[12]
On 30 August 2011 Eskom exercised the
option. Eskom registered the Notarial Deed of Servitude.
The relevant part of
the deed repeats the wording in the option in
which it is stated that the owner of the property may not build
within 27.5 meters
from the centre line of the servitude.
[13]
The parties agree that the determination
of the servitude dispute is to be resolved with reference to the
option and the deed.
Interpretation
of the Option and Notarial Deed
[14]
The
principle, as old as Voet's writings, is that servitude, being
something odious should be interpreted restrictively.
[4]
An imprecise servitude must always be interpreted so that the servant
tenement is less burdened.
[5]
The Court must give a plausible interpretation of a servitude and
must take into account the wording, surrounding circumstances,
[6]
nature, extent and content of the agreement which created the
servitude).
[7]
[15]
Eskom
makes several arguments as to how the option and deed must be
interpreted. Eskom contends that the agreement between Eskom
and the
previous owner refers to a width of separation distance of 55
meters. Indeed the option does have a one liner
where it
states: width 55 meters. Eskom invites the Court to conclude
that this means, clearly and unambiguously, that the
width refers to
the wide range distance from the centre of the powerline.
[8]
[16]
The use of the word width can only mean,
what it ordinarily means, from one end to the other. The
width of an object
describes its extent, not its location. In
fact, referring to the width of something as 55 meters gives one no
indication
at all of its location. One cannot infer the
location of a thing, based solely a description of its width.
The interpretation
Eskom contends for is at odds with the ordinary
and grammatical meaning of the word "width".
[17]
Eskom
contends that the ordinary meaning must mean that “the width
was meant to be attributed its ordinary meaning, which
is the
measurement from the centre line of the powerline towards the
property”.
[9]
There
is nothing in the ordinary meaning of the word width that means from
the center line of the powerline towards the property.
In fact,
Eskom has to add the words "from the center line of the
powerline towards the property" for the width to have
this
meaning. The interpretation Eskom contends for requires
reading words and meanings into the word "width"
which does
not appear in the documents nor can it be inferred from the ordinary
use of the word "width". Plainly,
there is nothing in
the language of the documents
[10]
that supports Eskom's interpretation.
[18]
In addition, the interpretation Eskom
contends for is at odds with the express wording of the option and
deed. Both these
documents have a critical and identical
clause. Clause 3.1, of both the option and the deed, indicates
that the owner may
not build
within
27.5 meters from the centre line of the powerline
.
If one takes 27.5 meters on either side of the heartline, one
achieves a servitude with a 55 meters width. Clause
3.1
contemplates a servitude with a width of 55 meters split on either
side of the heartline of a powerline means the servitude
runs 27.5
meters on either side of the heart line of the powerline. The
only manner in which one achieves a 55 meter wide
servitude, which is
27.5 meters on either side of the powerline, is by measuring 55
meters from the heartline of the powerline.
[19]
Eskom's interpretation in fact results
in a servitude which is 82.5 meters wide, not 55 meters. Eskom
contends that the servitude
is 55 meters in width and that the
starting point of the measurement must be the heartline of the
powerline. Clause 3.1 prohibits
building 27.5 meter on either
side of the heartline. If the owner cannot build 27.5 on either
side of the centre line and
the servitude is 55 meters measured from
the centre line, then the servitude area is in fact 82.5 wide.
Eskom's interpretation
contradicts the option and the deed.
[20]
Eskom
contends that the respondents interpretation that 55 meters be split
on either direction of the powerline is "not apparent
form the
wording of the agreement".
[11]
The Court finds it obvious in the deed that the 55 meters must be
split on either side of the powerline because of the prohibition
against building 27.5 meters on either side of the centre line of the
powerline. Not being able to build 27.5 meters on either
side
of the powerline is exactly what happens when 55 meters is split on
either side of the powerline.
[21]
Eskom
contends that the respondents’ interpretation is absurd as the
other side of the tower falls on the Nooitgedacht 525
JR/6 which is a
different property. Eskom contends that if the respondents’
interpretation is correct then Eskom ought
to have concluded a
servitude agreement with the owner of Nooitgetdacht 525 JR/6 for the
27.5 meters which falls within its property.
[12]
The Court has not been provided with a factual basis for this
allegation.
[13]
The
Court cannot make a finding based on a fact not pleaded. In any
event, even if this was before the Court it would
not be absurd to
suggest that perhaps a mistake had been committed.
[22]
The
last of Eskom's arguments is that it has provided several expert
opinions that supports its position, whilst the respondents
have
provided none.
[14]
It is
incorrect for Eskom to contend that the respondents have provided no
expert reports. The respondents did in fact present
an expert
opinion.
[15]
[23]
In
any event, Eskom's expert reports must be considered in context.
Eskom obtained a report from Mr Sipho Tshabalala, a land
surveyor
employed by Eskom.
[16]
Mr
Tshabalala does not engage with the core issue before this Court,
where the calculation of the 55 meters must start. Regardless,
Eskom's summary of Mr Tshabalala's conclusion is that "the part
servitude area on which the applicant seeks to construct its
electric
towers are far removed from the buildings." Mr
Tshabalala's conclusions undermines Eskom's position.
Mr
Tshabalala's actual report concludes that “the proposed
powerline has been pegged as per the signed option
sketch and
therefore Tower 70 is in the correct position”.
[17]
It does not appear that Mr Tshabalala's expert opinion was
sought on the issue directly before this Court.
[24]
Eskom
then appointed an independent land surveyor Mr Maukele of
AbsoluteGeo.
[18]
Mr
Mafukele’s report does not assist in determining the question
before the Court. Worse, Mr Mafukele refers to an
old
and
new
servitude line. This is concerning as the option limits the
servitude to permitting Eskom to construct
only
one
powerline.
[25]
Eskom has disavowed reliance on the
diagram of the Surveyor-General. The diagram does factually
exist, regardless of Eskom's
position. However, even if the
Court were to have regard to the diagram, it does not assist.
It does not address the
question before the Court. Also, the
diagram is not explained. To the extent that there is an
explanation, it does
not come from the office of the
Surveyor-General, but is Eskom's deponent explaining the diagram.
No basis for the deponent's
authority to depose to these facts have
been set out.
[26]
None
of the expert opinions presented by Eskom set out what their
instructions was, what they considered and the basis of their
conclusion. It in fact appears as if expert opinions considered
the question where Eskom needs to erect a powerline.
They did
not engage with or assist the Court with interpreting the option and
the deed. Attached to the deed is a diagram
which sets outs the
placement of the powerline and indicates with arrows how its width is
to be calculated. The diagram is
replicated at the end of this
judgement. None of Eskom's experts engaged with this. In
addition, the Court has not
been provided with a basis to properly
weigh and consider these expert reports. In
MV
Pasquale Della Gatta
the
Supreme Court of Appeal held that the court must first consider
whether the underlying facts relied on by the witness have been
established on a prima facie basis, if not then the expert's opinion
is worthless because it is purely hypothetical. If so, then
the
opinion can be disregarded. Even if the facts had been established,
the Court has to be put in a position to examine the reasoning
of the
expert and determines whether it is logical in the light of those
facts and any others that are undisputed or cannot be
disputed.
Again, the Court has not been provided with this reasoning.
[19]
The Court has also not been provided with the facts on which the
experts based their conclusions.
[27]
Contrary
to Eskom's experts, the respondents' expert provided a helpful and
relevant opinion. The respondents' expert, Mr
Marambire
explains
[20]
that -
a)
In the servitude sketch on page 8 of the
option there is a red line pointing in and the other red line
pointing out.
b)
The sketch depicts a red line inside the
boundary of the land which on the notes is indicates as a "proposed
route of the 1
x 400 kv transmission line indicated in red". The
redline is the center line of the powerline hence it has 27.5 m on
both
sides of the center line.
c)
There is a distance of 55 m depicted
next to the arrows pointing in and out. This indicates that 55 m must
be shared along the redline
"
which
makes it 27.5 m on both sides of the redline
".
[28]
Mr Marambire dealt with the question
posed to the Court. Mr Marambire has engaged with the option
and the deed and explained
its reasoning to the Court. The
expert opinion of Mr Marambire is the only logical and plausible
interpretation of the option
and the deed.
[29]
The
Court must give a plausible interpretation of a servitude and must
take into account the wording, surrounding circumstances,
[21]
nature, extent and content of the agreement which created the
servitude).
[22]
The
only plausible interpretation is one where the 55 meters is split
down the middle of the powerline which
results in a limitation of the
owner's right to build for 27.5 meters on either side of the
powerline.
[30]
Eskom, meekly in four paragraphs in its
written submissions requests the Court to alter the route of the
servitude. The Court
has not been presented with any basis to
do so. The relief referred to has not been sought, no statutory or
common law basis has
been presented for the argument. No facts
provided. Plainly, no case for this relief has been made out.
Whilst
there is a public interest that may be served by altering the
route, the public will not be served if Eskom is permitted to obtain
relief for a case not made out in the papers.
Point
in limine 1: Jurisdiction
[31]
The respondents contend that this Court
lacks the jurisdiction to determine this dispute by virtue of the
provisions of 29 of the
Land Survey Act, 1997
. The
Land Survey
Act provides
a process to resolve a dispute regarding a beacon or
boundary of land which has been determined by survey. The
process in
short, permits the owner or the Surveyor-General to
request that an agreement between the owners involved in the dispute
be accepted.
If someone refuses to sign the agreement, then
subsection 29(5)(a) permits the Surveyor-General to refer the matter
to arbitration.
[32]
Eskom, in an attempt to resolve the
impasse, requested the Surveyor-General to draw a diagram dealing
with the servitude.
The respondents contend that the fact that
the Surveyor-General has drawn this diagram means that the matter
falls to be decided
by section 29(5)(a) of the Land Surveys Act which
requires the dispute to be referred to arbitration. In this way,
contends the
respondents, the Court’s jurisdiction is ousted.
[33]
The Court is not persuaded that the
respondents have, in this case, pleaded the necessary facts to
indicate that section 29 is at
play. The Court is mindful that
the respondents have sought to challenge the Surveyor-General’s
diagram, possibly for
non-compliance with section 29. The Court
therefore states that no facts have been pleaded before this Court
that leaves
it to conclude that the dispute between the parties falls
within the confines of
section 29
of the
Land Survey Act. There
are certain jurisdictional facts required by
section 29.
The facts
pleaded do not meet the requirements of
section 29.
Section 29
is
activated when the owner or the Surveyor General requests an
agreement regarding a dispute concerning a boundary or beacon.
There
is no evidence before the Court that either the owner or Surveyor
general requested an agreement.
Section 29
requires, if there
has been such a request, that the matter be solved through an attempt
to reach agreement. No evidence
that there has been such an
attempt.
Section 29
then provides if no resolution is reached,
then the Surveyor-General can refer the matter to arbitration.
Again, there are
no facts before the Court that the Surveyor-General
has referred the matter to arbitration. It also appears that
the section
was to be applied between owners of properties as
section
29(1)
refers to an “agreement between the owners concerned”.
[34]
It does not appear to the Court that
section 29
of the
Land Survey Act has
been engaged in this case.
Point
in limine 2: Non-joinder of the Surveyor-General
[35]
The respondents contend that there has
been a material non-joinder of the Surveyor-General. They rely
on section 46 of the
Land Surveys Act for this contention. The
section provides that before any application is made to a court for
an order affecting
the performance of any act in a Surveyor-General’s
office the applicant shall give notice to the Surveyor-General before
the hearing. The Surveyor-General is then given an opportunity
to provide the Court with a report.
[36]
The relief being sought from this Court
involves access to the property and an order for the demolition of
structures. The
Surveyor General is not mentioned in the
relief. The Court has not provided with any basis to conclude
that the relief sought
affects the performance of the
Surveyor-General. More directly, the section does not require
the joinder of the Surveyor-General,
only notice. In other
words, even if the section were to apply, it demands notice, not
joinder.
Point
in limine 3: Stay of proceedings
[37]
The respondents, during the hearing,
mentioned it may be appropriate to stay the proceedings as the
respondents are seeking to challenge
the Surveyor-General’s
diagram. The respondents did not request a stay. The
respondents’ counsel referred
to the fact that it may be
appropriate to stay the proceedings. The respondents did not
seek or launch a stay of proceedings.
To date, no such
application serves before the Court. The only reference before
the court is a one-liner that the second
respondent “intends to
bring an application to have the Surveyor-General’s diagram
cancelled”.
[38]
The
Court was concerned about conflicting decisions relating to the same
dispute. If the Court in this case pronounces on
issues which
are being challenged in the another application it will cause
confusion. To prevent conflicting decisions on
the same
dispute, the Court invited the parties to place information regarding
the challenge to the Surveyor General's diagram
before the
Court.
[23]
The Court
received a short response from a candidate attorney at Eskom’s
attorneys of record that indicated no stay
would be sought, but
received nothing at all from the respondents. Had there been
such a challenge and the respondents wished
for the matter to be
stayed, the Court’s invitation would have been welcomed with
open arms. However, the Court received
no respondent from the
respondents
[39]
The
Court can only consider the facts that serve before it and the relief
being requested by the parties. Whilst the Court
has a general
discretion to order a stay, that discretion must be sparingly
exercised.
[24]
It
cannot be appropriate for the Court to exercise such a discretion
where it has not been presented with an application
for stay nor has
it, despite extending an invitation, been provided with a factual
basis for the stay. The Court also weighs
that there is a
public interest element to this matter that mitigates a stay of
proceedings and weighs in favour of a determination
of the dispute.
Point
in limine 4: Material dispute of fact
[40]
The respondents contend that the parties
disagree, factually, about the location of the servitude. The
respondents contend
that Eskom knew about this factual disagreement
when it launched the proceedings. Eskom ought to have made used
of trial
proceedings and not motion proceedings.
[41]
Eskom disagrees. Eskom believes
that the issue relates to the interpretation of a Notarial Deed of
Servitude and interpret
the provisions that give rise to the
servitude. To the extent that there exists any dispute of
fact, Eskom contends
that as the respondents have provided no
positive evidence directly contradiction Eskom’s version, there
is no bona fide
dispute of fact.
[42]
As the question the Court has been
requested to address is the interpretation of the Notarial Deed of
Servitude, that it an issue
of interpretation, not one of fact.
To the extent that there is a dispute of fact, it does not relate to
the interpretation
of the servitude. The parties agree about
the entire factual substrata relating to the interpretation of the
servitude.
Order
[43]
In the result, the following order is
granted:
a)
The application is dismissed with costs.
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 plaintiff:
BONGANI
MANENTSA
STHANDO
KUNENE
Instructed
by:
Mamateal
Attorneys
Counsel
for the Respondent:
S
LUTHULI
Instructed
by:
TTS
ATTORNEYS INC
Date
of the hearing: 02
August 2022
Date
of judgment: 20
October 2022
[1]
The option was in Afrikaans and no English version was provided to
the Court.
[2]
The
option provides -
8.6 Eskom mag met
konstruksie begin sora Eskom die Aanbod soos in paragraaf 8.4 hierbo
uitgeoefen het, vir die rede betaal Eskom
rente soos in paragraaf
8.9 uiteengesit is.
8.10 Sou Eskom die
Aanbod aanvar, sal dit die reg he om registrasie te verkry van die
regte op enige manier waarvoor voorsiening
gemaak is in die
Registrasie van Akteswet 1937, en indien Eskom sou verkies om die
regte te register in algemene terme sal alle
verwysings na ‘n
spesifield roete uitglaat work uit die notariele ooreenkoms.
Nieteenstaande die voorafgaande sal sodandige
uitlating op geen
manier Eskom se kontraktuele verpligtinge om die lyn aan tle op die
roete waaroor oorengekom is, raak nie.
Eskom sal die reg he om
daarna weer die registrasie van die servituut in algemene terme te
wysig deur registrasie met verwysing
na ‘n goegekeurde kaart.
Die notariele ooreenkoms sal die voorwaarde vervat soos uitgeengesit
in Aanhangsel A.
8.11 Die redelike koste
van die registrasie van die notariele ooreenkoms en van enige
daaropvolgende ooreenkoms wat die roete
van die servituut omskryf
deur verwysing na ‘n goedgekeurde kaart en die koste van
sodanige kaart, sal deur Eskom betaal
word.
[3]
The
clause provides -
3.1 geen gebou of
struktuur mag bo of onder the oppoervlakte van die grond binne 27.5
meter vanaf die hartlyn van enige kraglyn
opgerig of aangebring word
nie of binne 10.0 meter van enige struktuure onderstunigns
meganisme.
[4]
Haviland Estate (Pty) Ltd & Antoehr v MacMaster 1969 (2) SA (A)
at 322
[5]
Kruger v Joles Eiendomme (Pty) Ltd and Anather 2009 (3) SA (SCA)
para 8
[6]
Kruger v Joles at para 8
[7]
Natal Joint Municipal Pension Fund v Endumeni Municipality 2012 (4)
SA 593 (SCA)
[8]
CL 21-10 para 21
[9]
CL 21-10 para 22.
[10]
Natal
Municipal Fund para 42
[11]
CL 2-10 para 23.
[12]
CL 21-11 para 25
[13]
CL
21-14 para 38
[14]
CL
21-14 para 39
[15]
The respondents used the land surveyor Mr Nichola Marambire.
Who said that he is unable to conduct a survey of the servitude
area
and required the SG diagram from the Surveyor -General, see
CL1.1-6.
[16]
CL
1.1-5
para 11
[17]
CL
1.1-11
[18]
CL
20-10
para 21
[19]
2012 (1) SA 58
(SCA), para 26. See also, M on behalf of L, a
child v Member of the Executive Council for Health: Gauteng
Provincial Government
(A5015/2020) [2021] ZAGPJHC 501 (8 October
2021)
[20]
CL
191- 53
[21]
Kruger v Joles at para 8
[22]
Natal Joint Municipal Pension Fund v Endumeni Municipality 2012 (4)
SA 593 (SCA)
[23]
On
31 August 2022 the Court through its Registrar invited the parties
as follows -
"Dear Attorneys
Kindly note that the
parties are requested to file a practice note before close of
business Monday, 05 September 2022 addressing
these two questions:
1.
Is it common cause that the respondent is challenging the
accuracy/lawfulness of the Surveyor General’s
diagram (“the
challenge”)?
2.
If so, what prejudice would there be to any party, if the Court were
to request that the papers in
the challenge be placed before this
Court in order for the Court to determine if this matter ought to be
stayed pending the outcome
of the challenge?
In the event that the
parties agree on these two issues and there is no prejudice, the
parties will be provided an additional
opportunity to file written
submissions dealing with the issue of a stay before close of
business Friday, 9 September 2022."
[24]
Clipsal Australia (Pty) Ltd v Gap Distributors (Pty) Ltd
2009 3 All
Sa 491
SCA 1.
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