Case Law[2022] ZAGPPHC 808South Africa
Jeewan v Transnet SOC Limited and Another (6258/15) [2022] ZAGPPHC 808 (21 October 2022)
High Court of South Africa (Gauteng Division, Pretoria)
21 October 2022
Headnotes
that, on this case alone, Mr Sanoj’s case should fail.
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: North Gauteng High Court, Pretoria
South Africa: North Gauteng High Court, Pretoria
You are here:
SAFLII
>>
Databases
>>
South Africa: North Gauteng High Court, Pretoria
>>
2022
>>
[2022] ZAGPPHC 808
|
Noteup
|
LawCite
sino index
## Jeewan v Transnet SOC Limited and Another (6258/15) [2022] ZAGPPHC 808 (21 October 2022)
Jeewan v Transnet SOC Limited and Another (6258/15) [2022] ZAGPPHC 808 (21 October 2022)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAGPPHC/Data/2022_808.html
sino date 21 October 2022
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NUMBER: 6258/15
DATE:
21 October 2022
REPORTABLE:
YES / NO
OF INTEREST TO
OTHER JUDGES: YES / NO
REVISED
SANOJ
JEEWAN (aka
MARK)
Plaintiff
V
TRANSNET
SOC
LIMITED
First
Defendant
EY
(ERNST &
YOUNG)
Second
Defendant
JUDGMENT
MABUSE
J
[1]
This matter came
before me as a special case at which stage it involved only the
Plaintiff, Mr Sanoj Jeewan (“Mr Sanoj”)
and the First
Defendant, Transnet Soc Limited (“Transnet”). This
was the stage during which the court had to
adjudicate only the
special pleas raised by Transnet against Mr Sanoj’s claim.
THE
BACKSTORY
[2]
For purposes of convenience, I shall refer to the Plaintiff as “Mr
Sanoj”
and to the first Defendant as “Transnet”.
[3]
Mr Sanoj was, at all material times, employed by Transnet as the
Corporate Governance Manager
in terms of a written contract of
employment signed by the parties on 2 October 2006. During such
material times, Mr Sanoj was
also subjected to the Transnet
Disciplinary Code and Procedure (TDCP) as contained in s 16 of the
Contract of Employment.
[4]
As a Corporate Governance Manager Mr Sanoj was the forensic champion
of Transnet and
his duties included the coordination of
investigations, forensic fraud prevention and detection, taking
remedial and corrective
action, reporting to Transnet’s
forensic working group and ensuring that everyone in his division
knew the contents of the
fraud prevention plan and all the
concomitant policies. Mr Sanoj also oversaw the internal
control and compliance functions
of Transnet
[5]
Transnet had a fraud prevention plan which included such policies as
Code of Ethics, Policy
Declaration, Interest and Related Disclosures.
The Second Defendant conducted forensic investigations into the
conduct of Mr Sanoj
and made certain findings. Based on such
findings, Transnet laid a charge of misconduct against Mr Sanoj. The
charge against Mr
Sanoj was that he had breached his contract of
employment with Transnet and the Code of Ethics as he had established
and participated
in a fraudulent scheme with an external service
provider. First, he was interviewed on such findings on 20
April 2010.
On 21 April 2010, Mr Sanoj was suspended. On
the same date he submitted his letter of resignation. It is not
clear
whether Transnet accepted his letter of resignation or simply
ignored it. What is clear though is that despite his letter
of
resignation, Transnet decided to proceed with a disciplinary hearing
against him. On 7 May 2010, Transnet notified him
that he
should attend a hearing on 14 May 2010. He was subjected to a
disciplinary hearing on 14 May 2010. He was found
guilty and
dismissed with immediate effect from his employment on 14 May 2010.
[6]
Mr Sanoj subsequently referred, a dispute relating to his dismissal
in terms of s
191 of the Labour Relations Act 66 of 1995 (the LRA) to
the Transnet Bargaining Council (“the Council”) and
sought
reinstatement to his employment. S 191 of the LRA deals
with disputes about unfair dismissal and unfair labour practices.
S 191(1)(a) provides that:
“
If
there is a dispute about the fairness of a dismissal or a dispute
about an unfair labour practice, the dismissed employee or
the
employee alleging the unfair labour practice may refer the dispute in
writing within:
(i)
the council, if the parties to the dispute fall within the registered
scope of that council; or
(ii)
the commission if no council has jurisdiction.”
S191(2)(a)
provides that:
“
Subject
to subsections (1) and (2) an employee whose contract of employment
is terminated by notice, may refer the dispute to the
council or the
commission once the employee has received that notice.”
He had alleged
in his referral, that his dismissal by Transnet was procedurally and
substantively unfair. On 25 January 2012,
Adv Van der Schyff,
who appeared for Mr Sanoj at the disciplinary hearing informed the
hearing that Mr Sanoj withdrew the dispute
that the dismissal by
Transnet was substantively unfair. The matter then proceeded
with the dispute regarding the procedural
fairness of his dismissal
and costs. Mr Sanoj had initially challenged his dismissal by
Transnet on the five grounds. At the hearing
of the disputes that
took place on 1 September 2011, and continued 24 and 25 January 2012,
he abandoned two of those grounds and
proceeded only with three of
those grounds namely:
[6.1] lack
of impartiality on the part of the chairman of the disciplinary
hearing which was allegedly evidenced by statements
he had made
during the hearing.
[6.2]
inadequate time given to him (the Plaintiff), to prepare for his
disciplinary hearing.
[6.3]
failure on the part of Transnet to call viva voce evidence at the
disciplinary hearing, thereby depriving him, the Plaintiff,
of any
opportunity to cross-examine witnesses.
[7]
Commissioner
Esther van Kerken (“Ms van Kerken”) ruled in favour of
Transnet in respect of all the above mentioned three
grounds:
[7.1] Ms
van Kerken dealt with the three disputes fully under the following
headings:
[7.1.1]
the first complaint regarding procedure
. The alleged
lack of impartiality of the chairperson. She dealt with this
complaint or ground substantially even with
reference to reported
authorities. In conclusion she found that,based on the evidence
before her, she was not persuaded that
the transcript of the
disciplinary hearing showed that the chairman was biased. She
found furthermore that Mr Sanoj had failed
to discharge his onus to
prove his allegation of bias. She held that, on this case
alone, Mr Sanoj’s case should fail.
[7.2]
The
second complaint against the procedure, alleged inadequate time to
prepare.
On this ground she was satisfied that Mr Sanoj, and his
legal team had had sufficient time to prepare and even pointed to
eight
instances in which Mr Sanoj and his legal team had, or should
have had, sufficient time.
[7.3]
The
third issue, the alleged failure to call
viva voce
evidence at the disciplinary hearing other than that of Mr du Toit,
whose evidence was permitted based on affidavit, thereby depriving
the applicant of the opportunity to cross-examine
witnesses:
Ms van Kerken noted that, according to the transcript, after Mr du
Toit had testified, the chairperson of the disciplinary
hearing asked
a Ms Asmal, who was representing Mr Sanoj, whether she had any
questions for him. In response she responded
that “no, we
do not”. She noted further that the transcript did not
show that Ms Asmal reserved her cross-examination
of Mr du Toit or
that she was prevented from doing so. She concluded that Mr
Sanoj’s legal representative had the opportunity
to
cross-examine Mr du Toit but elected not to do so. She found
that the objection on procedure, on this ground, should fail.
[7.4] Then
she assessed
the procedural fairness of the dismissal
.
Having found that there was no basis for the grounds raised by Mr
Sanoj, she proceeded to establish whether there was any
evidence that
supported Transnet’s case that it had effected the dismissal of
Mr Sanoj with a fair procedure. Ms van
Kerken was satisfied
that Transnet effected the dismissal of Mr Sanoj with a fair
procedure.
[8]
Mr Sanoj then issued combined summons in this Court against Transnet
claiming against
Transnet payment of the sum of R57,374,996.02;
interest on the said amount at the prescribed rate of interest; costs
of the suit
and further and or alternative relief. Mr Sanoj’s
action against Transnet was based on delict and in the alternative,
on common law. His grounds of action against Transnet are based
on a contract. In these grounds he states that:
“
4.1
The first defendant breached paragraph 1.1 of the TDCP in the
following manner:
4.1.1
despite its obligation to ensure that the plaintiff was protected
from arbitrary action, the first defendant acted arbitrarily when it
terminated the plaintiff’s contract of employment on
14th May
2010.
4.1.2
the first defendant’s action was arbitrary because it was
done
prematurely, namely, while the disciplinary hearing and the forensic
investigations of the plaintiff’s alleged misconduct
was still
pending.
4.2
The first defendant breached paragraphs 4.4; 5.2; 5.3 and 5.10.3 of
the TDCP in the following manner:
4.2.1
the first defendant subjected the plaintiff to
disciplinary
action for a reason that
was
not fair
,
namely that the plaintiff had established and or participated in a
fraudulent scheme with an external service provider whereas
this
allegation was not true.
4.2.2
the first defendant failed to ensure that the plaintiff was dismissed
in accordance
with
a fair procedure
.
The disciplinary hearing held on 14 May 2010 was unfair and
unlawful because the first defendant’s appointed chairperson
was overtly biased, as evidenced by the extracts of the record quoted
below in favour of the first defendant in the following respects…
(Mr Sanoj
then enumerated all respects in which he alleged Transnet was
biased)
.
4.2.4
The first defendant dismissed the plaintiff prior to, instead of,
after the conclusion of the disciplinary hearing. The plaintiff’s
termination letter was signed by the first Defendant and
served on
the Plaintiff on 14 May 2010 whereas the disciplinary hearing had
apparently continued 17th May 2010 without the plaintiff’s
knowledge. As a consequence, the plaintiff was denied the opportunity
of properly presenting his defense to the allegations against
him.
4.3
The first defendant breached paragraphs 4.4 and 4.5 of the TDCP by
failing to treat
him
fairly
…
(He
then proceeded to furnish reasons why he made those allegations).
4.4
The first defendant breached paragraph 5.3 TDCP in that the first
defendantterminated the plaintiff’s
contract of employment on
14 May 2010 without first ensuring and or satisfying itself that the
plaintiff's
disciplinary hearing was
procedurally fair or that
the plaintiff’s was dismissed for a fair reason or that the
disciplinary hearing was first properly
concluded.
4.5
The first defendant breached paragraph 6.2.2 of the TDCP in the
following manner:
The
plaintiff then set out the respects, three of them, in which he
contended that the first defendant breached paragraph 6.2 .2
of the
TDCP as follows
:
4.3.3
The first defendant ought to have considered disciplinary action
only
after the finalization of the forensic investigations …
(
In
other words, he contends that he was unfairly dismissed).
4.3.4
The
first defendant impliedly misrepresented to the plaintiff on 7 May
2010 via the notice to attend the disciplinary hearing that
was set
down for 14 May 2010 that forensic investigation into the Plaintiff’s
alleged misconduct had been finalized …
(
Again,
this means that he was unfairly dismissed).
4.3.5
the forensic investigation was neither completed as at 07 May 2010
when the plaintiff was served with the notice to attend the
disciplinary hearing nor by 14 May 2010 when the hearing commenced.”
In
p
aragraphs 2.4;3.5 up
to 4.9 of the particulars of claim Mr Sanoj deals with unfair
dismissal.
[9]
In paragraph 4.10 to 4.16 of his POC Mr Sanoj deals with how the
chairperson of the
Transnet disciplinary committee was biased during
the disciplinary hearing. In paragraph 4.11 he expands on the
allegations of
the bias of the chairperson. In this paragraph he
stretches out the way he alleges the chairman of the disciplinary
proceedings
was biased against him.
[10]
Based on what is contained in those paragraphs 4.10 to 4.16 he states
that Transnet is in breach
of his contract of employment, which
breach violates his rights in terms of s 23 of the Constitution of
the Republic of South Africa
Act 108 of 1996 (“the
Constitution”). He states furthermore that the said breach
occurred because Transnet did not
dismiss him
for a fair reason
and furthermore that his dismissal was not in accordance
with a
fair procedure.
[11]
He then arrives at two conclusions firstly, that the chairman of the
disciplinary committee was
biased against him in favour of Transnet
and secondly, that Transnet had unjustifiably and unlawfully
dismissed him from his employment.
In brief, he implied that
because the chairman of the disciplinary committee was biased against
him, his dismissal was unfair.
He implied furthermore that
Transnet had no valid reason in law to dismiss him.
[12]
In respect of
his claim of delict, Mr Sanoj repeated his allegations as contained
in paragraph 4 of his POC.
[13]
He states that Transnet had a contractual and or legal duty to
discipline him for a fair reason
in terms of the TDCP. It also
had a duty to ensure that he was subjected to administrative action
that was lawful, reasonable,
and procedurally fair. According to him,
Transnet failed to discipline him with the required legal and or
contractual duty to ensure
that he was subjected to administrative
action that was lawful, reasonable, and procedurally fair and as set
out in paragraph 4
of his POC. Then he concludes that, based on the
foregoing, Transnet’s conduct was wrongful.
SPECIAL
PLEAS
[14]
To the foregoing allegations set out in Mr Sanoj’s POC,
especially paragraph 4 thereof,
Transnet raised the following three
special pleas:
[14.1]
jurisdiction;
[14.2]
prescription;
[14.3]
res judicata.
Special Plea
of jurisdiction
[15]
It was pleaded by Transnet in respect of this special plea that this
court does not have any
jurisdiction to entertain Mr Sanoj’s
claim for damages because:
[15.1] the
basis of Mr Sanoj’s claim is that Transnet dismissed him
substantially and procedurally unfairly on 14 May
2010.
According to counsel for Transnet, the following paragraphs
demonstrate clearly that the Plaintiff’s claim of
breach of
contract is that he was substantively and procedurally unfairly
dismissed by the First Defendant on 14 May 2010:
“
24.1
In paragraph 3.6 the plaintiff alleges that on 14 May 2010 the first
defendant
subjected
him to disciplinary hearing
and
summarily dismissed him on the same date;
24.2 in
paragraph 3.7 he states that he
referred a dispute to the Transnet
Bargaining Council
;
24.3 in
paragraphs 4 and 4.1 the plaintiff alleges that the first defendant
acted arbitrarily when it terminated his contract
of employment on 14
May 2010, and he says in subparagraph 4.1.2 that the termination was
arbitrary because it was done arbitrarily
whilst the disciplinary
hearing and the forensic investigation of the plaintiff’s
alleged conduct was still pending;
24.4 in
paragraph 4.2 the plaintiff alleges that the first defendant breached
specifically provisions of the Transnet Disciplinary
Code and
Procedures (TDCP) in that it subjected him to disciplinary action for
a reason that was not fair and that the defendant
failed to ensure
that he was dismissed in accordance with a fair procedure;
24.5
under subparagraphs 4.2.2 and 4.2.3 the plaintiff complains about the
behaviour of the chairperson of the disciplinary
hearing which
culminated in his dismissal on 14 March 2010;
24.6 in
paragraph 4.2.4 the plaintiff alleges that the first defendant
dismissed him before the conclusion of the disciplinary
hearing and
denied him the opportunity of properly presenting his defence to the
allegations against him;
24.7
under paragraph 4.3 the plaintiff claims that the first defendant
breached paragraphs 4.4 and 4.5 of the TDCP by failing
to treat him
fairly and he gives examples under subparagraphs 4.3.1 and
4.3.2;24.8under paragraph 4.4 the plaintiff claims that
the first
defendant breached paragraph 5.3 of the TDCP in that it summarily
terminated his contract of employment on 14 May 2010
without ensuring
and/or satisfying itself that the plaintiff’s disciplinary
hearing was procedurally fair, or that the
plaintiff was dismissed
for a fair reason
or that the
disciplinary hearing was first
properly concluded
;
24.9
under paragraph 4.5 the plaintiff alleges that the first defendant
breached paragraph 6.2.3 of the TDCP in that the
charge sheet
against the plaintiff was
vague and misleading
;
24.10 under
paragraphs 4.7 and 4.7.1 the plaintiff alleges that the first
defendant breached paragraph 6.2.3 of the TDCP in that
when it
delivered a notice to him on 7 May 2010 to attend a disciplinary
hearing, it failed to simultaneously deliver the bundle
of documents
that it used as evidence against him. He says the documents
were delivered in drips and drabs on 11, 12 and
14 May 2010, and that
as a result he (the plaintiff) and his legal representative were
prejudiced in their ability to prepare for
the hearing;
24.11
in paragraph 4.11 the plaintiff alleges that in addition
to being
overtly biased
, the chairperson of the disciplinary hearing
failed to conduct a disciplinary hearing
on 14 May 2010 in
terms of paragraphs 6.3 of the TDCP, and the plaintiff gives examples
under subparagraphs 4.11.1 to 4.11.5;
24.12
in paragraph 4.17 the plaintiff alleges that the conduct
of the first
defendant as alleged in paragraphs 4.1 to 4.16 of his particulars of
claim,
breached his contract of employment
and violated his
rights in terms of
Section 23
(fair labour practice) and
section 33
(just administrative action) of the Constitution of
the Republic of South Africa, 1996. He states that “
the
breach
occurred because the plaintiff was not
dismissed
for a
fair reason
and in accordance with a
fair procedure
;
24.13
in paragraph 4.18 the plaintiff concludes that “in
the
circumstances the first defendant
unjustifiably and
unlawfully
dismissed
the plaintiff from his employment.”
[15.2]
With regard to the delictual claim, counsel for Transnet stated as
follows:
“
In
paragraphs 5 to 5.11 of his particulars of claim the Plaintiff
claims, in the alternative, against the First Defendant on delict.
The alternative delictual claim of the Plaintiff is also based on the
allegation that the First Defendant dismissed him substantively
and
procedurally unfairly on 14 May 2010. This is borne by the
following:
“
25.1
in paragraph 5 the plaintiff repeats all the allegations that he made
under subparagraph (4) which obviously include the allegations
in
paragraph 4 and its subparagraphs right up to subparagraph 4.18.
Needless to say, it follows that the delictual claim
is based on the
same allegations that the plaintiff has made for the contractual
claim.
25.2
The only other information that the plaintiff adds are elements of
delict, namely wrongfulness, fault and causation which
are contained
in paragraphs 5.1 to 5.11.
25.3 In
paragraphs 5.2 to 5.4 the plaintiff claims that the defendant had a
contractual and/or legal duty to discipline him
in terms of TDCP and
for a
fair reason
. He alleges further that:
“
The
first defendant also had a
duty
to ensure
that
the plaintiff is subjected to
administrative
action
that
was
lawful,
reasonable and procedurally fair
”
.
He then alleges that the first defendant failed to discipline the
plaintiff
with
the required legal and/or contractually duty
and that
the failure was
wrongful
.
25.4
Under paragraphs 5.5 to 5.6 the plaintiff alleges that the first
defendant could
reasonably foresee
and did foresee the
harm
that the plaintiff would suffer as a direct result of his wrongful
conduct. He alleges that the wrongful conduct done by
the first
defendant are
those contained in paragraph 4
and that these
were done to ensure that the plaintiff was dismissed from his
employment. He then alleges that the first respondent
therefore
acted intentionally
.
25.5 In
paragraph 5.8 the plaintiff alleges that he was not afforded a
fair
hearing
.
25.6 In
paragraph 5.10 the plaintiff alleges that if the court finds that the
defendant’s actions
were not intentional
then it must
find that the first defendant was grossly negligent, needless to say
those are the actions alleged in paragraph 4.”
[16]
According to Transnet, in terms of section 191 of the LRA the power
to determine whether a dismissal is
procedurally and substantively
unfair lies with the Commission for Conciliation Mediation and
Arbitration (“CCMA”).
In the case of Mr Sanoj, the power
lay with the Transnet Bargaining Council. Transnet then pleaded that
on that basis this court
has no jurisdiction to hear Mr Sanoj’s
claim.
[17]
The plaintiff claimed in replication that his claim is not for relief
available to him in terms of the LRA.
According to him, his claim is
based on the common law breach of his contract of employment and in
the alternative on delict. He
concluded by stating that the court or
this court does have jurisdiction to hear his claim.
[18]
It was argued by counsel for Transnet, on the authority of
Chirwa
v Transnet Limited And Others
[2007] ZACC 23
;
2008 (4) SA 367
(CC)
and relying on what the Court had to say in paragraphs [59] to [67]
that this Court has no jurisdiction to hear Mr Sanoj’s
claim.
Before citing the paragraphs on which Mr Mathipa relied, I wish to
copiously cite paragraphs [41] up to [43] of the
same judgments.
By these paragraphs the Constitutional Court (Concourt) emphasized
that disputes relating to employee-employer
relationships which arose
from the LRA should be addressed through the mechanism created by
LRA. The Concourt recognised
the dispute between Chirwa and
Transnet as employment related. Writing for the majority
Skweyiya J said the following in
paragraphs [41] to [43]:
“
[41]
It is my view that the existence of a purpose-built employment
framework in the form of the LRA and associated legislation
infers
that labour processes
and
forums should
take
precedence over non-purpose-built
processes
and forums in situations involving
employment-related
matters
.
At the least, litigation in terms of the LRA should be seen as
the more appropriate route to pursue. Where an alternativecause
of action can be sustained in matters arising out of an employment
relationship, in which the employee alleges unfair dismissal
or an
unfair labour practice by the employer, it is in the first instance
through the mechanisms established by the LRA that the
employee
should pursue her or his claims
[42]
The LRA includes the principles of natural justice. The dual
fairness requirement isone example; a dismissal
needs to be
substantively and procedurally fair. By doing so, the LRA
guarantees that an employee will be protected by the
rules of natural
justice and that the procedural fairness requirements will satisfy
the audi alteram partem principle and the rule
against bias. If
the process does not, the employee will be able to challenge her or
his dismissal and will be able to do
so under the provisions and
structures of the LRA. Similarly, an employee is protected from
arbitrary and irrational decisions,
through substantive fairness
requirements and a right not to be subjected to unfair labour
practices.[43] Judicial review of an
administrative decision can only
result in an administrative decision being set aside. This does
not prevent an employer
from restarting a disciplinary process;
neither does it prevent an employee from being dismissed after a
fresh hearing that cures
the original defect. On the other
hand, the forums provided for by the LRA allow for a variety of
purpose-built, employment-focused
relief; none of which is available
under the provisions of PAJA.”
[19]
Briefly the facts of the case of Ms Nelisiwe Chirwa (“Ms
Chirwa”) are as follows.
Ms
Nelisiwe Chirwa was dismissed by the Chief Executive of Transnet
Pension Fund. The fund was a business unit of Transnet.
She was
dismissed for poor performance. She referred a dispute to the
CCMA in terms of section 191(1)(a)(ii) of the LRA.
After
conciliation had failed for more than 30 days to resolve the matter,
Ms Chirwa did not pursue the matter further under the
provisions of
the LRA. Instead, she approached the Johannesburg High Court
where she sought the review and correction or
setting aside of the
decision to dismiss her from the employment of the Transnet Pension
Fund.
[20]
The central issue before the Constitutional Court was whether the
High Court had concurrent jurisdiction
with the Labour Court in
respect of Ms Chirwa’s claim. Such a case had to be
decided on its own merits.
That is why Skweyiya J said, “
in
respect of Chirwa‘s claim”.
Justice Skweyiya, stated
the following in paragraphs [59] to [67]:
“
[59]
The starting point for the enquiry as to whether the High Court has
concurrent jurisdiction with the Labour Court
in
respect of Ms Chirwa’s claim
is
section 157(1) of the LRA, which provides that the Labour Court has
exclusive jurisdiction over all matters that “are to
be
determined by the Labour Court.” Thus, where exclusive
jurisdiction over a matter is conferred upon the Labour Court
by the
LRA or other legislation, the jurisdiction of the High Court is
ousted. The
effect
of section
157(1)
is therefore to divest the High Court of jurisdiction in matters that
the Labour
Court
is required to decide except where the LRA provides otherwise
.
[60]
It is apparent from the provisions of section 157(1) that it does not
confer “exclusive jurisdiction upon the Labour
Court generally
in relation to matters concerning the relationship between employer
and employee.”
It
seems implicit from the
provisions of this
section that the jurisdiction of the High Court is not ousted simply
because a dispute is one
that falls within the overall sphere of employment
relations. The
jurisdiction of the High Court will only be ousted in respect of
matters
that,
in the words of section 157(1) “are to be determined by the
Labour Court
.”
This is evident from section 157(2), which contemplates concurrent
jurisdiction in constitutional matters arising
from employment and
labour relations.
[61]
Ms Chirwa’s complaint is that Mr Smith “failed to comply
with the mandatory provisions of items 8 and 9 of
Schedule 8 to the
LRA.” Schedule 8 contains the Code that sets out
guidelines that must be taken into account by “[a]ny
person
considering whether or not the reason for dismissal is a fair reason
or whether or not the dismissal was effected in accordance
with a
fair procedure”. Thus,
unlike
in Fredericks
,
the applicant here expressly relies upon those provisions
of
the LRA
which
deal with unfair dismissals. Indeed, this is the claim she
asserted when she approached the CCMA. It is apparent
that when
she approached the High Court, she made it clear that her claim was
based on a violation of the provisions of the LRA,
including items 8
and 9 of Schedule 8 to that Act. However, she elected to
vindicate her rights not under the provisions
of the LRA, but instead
under the provisions of PAJA.
[62]
The LRA
provides procedures for the resolution of labour
disputes through statutory conciliation, mediation, and arbitration,
for which
the CCMA is established; and establishes the Labour Court
and the Labour Appeal Court as superior courts, with
exclusive
jurisdiction to decide matters arising from it
. Unfair
dismissals and unfair labour practice are dealt with in Chapter
VIII. Section 188 provides that a dismissal
is unfair if the
employer fails to prove that the dismissal was for a fair reason or
that the dismissal was effected in accordance
with a fair procedure.
Item 9 in Schedule 8 to the LRA sets out the guidelines in
cases of dismissal for poor work performance.
[63]
Ms Chirwa’s claim is that the disciplinary enquiry held to
determine her poor work performance was not conducted
fairly and
therefore her dismissal following such enquiry was not effected in
accordance with a fair procedure. This is a
dispute envisaged
by section 191 of the LRA, which provides a procedure for its
resolution: including conciliation, arbitration,
and review by the
Labour Court.
The
dispute
concerning
dismissal for poor work performance, which is covered by the LRA and
for which specific
dispute resolution procedures have been created, is therefore a
matter that must, under
the LRA, be determined exclusively by the Labour
Court. Accordingly,
it is my finding that the High Court had no concurrent jurisdiction
with the Labour Court to
decide this matter
.
[64]
Ms Chirwa was correct in referring her dismissal to the CCMA as an
unfair dismissal in terms of section 191(1)(a)(ii)
of the LRA.
The constitutional right she sought to vindicate is regulated in
detail by the LRA. In this regard, the
remarks made by Ngcobo J
in relation to a specialist tribunal in Hoffmann v South African
Airways are apposite. Ngcobo
J, when invited to express an
opinion on SAA’s policy to test aspirant employees for
HIV/AIDS, said the following:
“
The
question of testing in order to determine suitability for employment
is a matter that is now governed by s 7(2), read with s
50(4), of the
Employment Equity Act. In my view there is much to be said for
the view that
where
a matter is required by statute to be dealt with by a specialist
tribunal, it is that tribunal that must deal with such a
matter in
the first instance
.
The Labour Court is a specialist tribunal that has a statutory duty
to deal with labour and employment issues. Because
of this
expertise, the Legislature has considered it appropriate to give it
jurisdiction to deal with testing in order to determine
suitability
for employment. It is therefore that Court which, in the first
instance, should deal with issues relating to
testing in the context
of employment.” (Footnote omitted.) (Emphasis
added.)
The LRA is
the primary source in matters concerning allegations by employees of
unfair dismissal and unfair labour
practice irrespective of who the employer is and includes the State
and its organs as employers
.
[65]
Ms Chirwa’s case is based on an allegation of an unfair
dismissal for alleged poor work performance.
The LRA
specifically legislates the requirements in respect of disciplinary
enquiries and provides guidelines in cases of dismissal
for poor work
performance. She had access to the procedures, institutions and
remedies specifically designed to address the alleged
procedural
unfairness in the process of effecting her dismissal. She was,
in my view, not at liberty to relegate the finely`tuned
dispute
resolution structures created by the LRA. If this is allowed, a
dual system of law would fester in cases of dismissal
of employees by
employers, one applicable in civil courts and the other applicable in
the forums and mechanisms established by
the LRA.
[66]
Ms Chirwa is not afforded an election. She cannot be in a
preferential position simply because of her status
as a public sector
employee. There is no reason why this should be so, as section
23 of the Constitution, which the LRA seeks
to regulate and give
effect to, serves as the principal guarantee for all employees. All
employees (including public service employees,
save for the members
of the defence force, the intelligence agency and the secret service,
academy of intelligence and Comsec),
are covered by unfair dismissal
provisions and dispute resolution mechanisms under the LRA. The
LRA does not differentiate
between the State and its organs as an
employer, and any other employer. Thus, it must be concluded that the
State and other employers
should be treated in similar fashion.
[67]
Nonetheless, Ms
Chirwa chose to abandon the process she had started in the CCMA and
approached the High Court where she contended
that her right to
administrative justice,
protected by section 33 of the Constitution, had been breached
.
She was ill-advised in abandoning the process that she had started in
the CCMA. This is the route that she should
have followed to
its very end.”
[21]
In burnishing his argument, counsel for Transnet raised the following
reasons:
[21.1]
having been dismissed by Transnet on 14 May 2010, Mr Sanoj
referred a
dispute to the Transnet Bargaining Council in terms of s 191 of the
LRA on the initial allegations that his dismissal
was both
substantively and procedurally unfair;
[21.2]
the dispute was arbitrated before Commissioner Ms Ester
van Kerken.
At the tipping end of the arbitration proceedings, Mr Sanoj
jettisoned the allegations that his dismissal was
substantively
unfair. It is now this allegation that is at the heart of Mr
Sanoj’s current case;
[21.3]
on 1 February 2012, the Commissioner, Ms van Kerken, issued
an award
following the arbitration process. In the said award she held,
among others, that Mr Sanoj was dismissed fairly
by Transnet.
In other words, she found in favour of Transnet;
[21.4]
strictly speaking, an award in the arbitration proceedings
is a
judgment of the Commissioner on issues that were brought before her
for adjudication. In terms of the language of the
LRA such a
judgment is called an award. What was before the tribunal were
both the substantively and procedurally unfairness
of Mr Sanoj’s
dismissal. In brief, the Commissioner had to decide whether Mr
Sanoj was dismissed fairly by Transnet.
In deciding this issue,
the Commissioner would have a look at a wide spectrum of the issues
including whether Mr Sanoj was procedurally
and substantively
unfairly dismissed. A withdrawal by Mr Sanoj of the allegations
of substantive and procedural dismissal
towards the conclusion of the
arbitrary proceedings was immaterial to the award because there was
no way, in my view, that the
Commissioner could have ruled or found
that Transnet effected the dismissal of Mr Sanoj following a fair
procedure if there was
evidence of substantive and procedural
unfairness. In my view, the finding by the Commissioner that
Transnet effected the
dismissal of Mr Sanoj with a fair procedure,
implies that in all respects Mr Sanoj was dismissed properly
byTransnet for valid
reasons after Transnet had followed all its
dismissal procedures properly;
[21.5]
at the stage when Mr Sanoj withdrew his allegations of substantive
and procedural unfairness, the Commissioner had heard all the
evidence, including whether there was any substance in the
allegations
of substantive and procedural unfairness. For that
reason, she would not have ruled otherwise;
[21.6]
in terms of s 158(1)(4) read with s 145 of the LRA, Mr Sanoj
was
entitled to take the award for review to have it reviewed and set
aside. Ss 158(1)(a) and 145 of the LRA give the Labour
Court
the power to review andaward. According to Transnet’s counsel
this means that this court is ousted from reviewing the
award.
Accordingly, this court does not have the power to review the
arbitration award, in the face of ss 158 and 45;
[21.7]
by failing to have the award reviewed by the Labour Court,
as
referred to by s 158(1)(a) read with s 145, it is assumed that Mr
Sanoj has accepted the award and has decided to abide by it,
irrespective of the nature of the relief he now seeks. The
substratum of the issues he took for arbitration and the current
claim against Transnet is the same. Therefore, any attempt by
Mr Sanoj to claim before this court, whether on
the basis of a breach
of contract and/or delict for damages based on the same grounds he
submitted to the Transnet Bargaining Council,
even if he claims that
the relief he claims is not based on the provisions of the LRA,
amounts to an attempt to ask this Court
to review the award of the
Commissioner van Kerken, which has now become final. What Mr
Sanoj now does is to ask this Court
to rehear the same issues that
have already been heard and decided upon by Transnet Bargaining
Council;
[21.8]
then on 29 January 2015 Mr Sanoj caused a copy of the combined
summons in the current action to be served on Transnet. In it
Mr Sanoj had claimed that on 14 May 2010 he was substantively
and
procedurally dismissed unfairly by Transnet as he alleged in
paragraphs 4 to 4.16 of his particulars of claim;
[21.9]
referring to his action against Transnet, Mr Sanoj claims
that he is
vindicating his rights by means of common law. What is clear
though is that he has veered from the course set
out in the LRA.
Mr Sanoj has now completely abandoned the LRA procedures according to
which he had referred a dispute to
the Transnet Bargaining Council in
terms of s 191 of the LRA;
[21.10]
according to counsel for Transnet, for this Court to entertain Mr
Sanoj’s claim, it will have to decide firstly, whether he was
substantively and procedurally unfairly dismissed as alleged
in
paragraphs 4 to 4.16 of his particulars of claim. He confirms
that this can only be done by applying the provisions of
the LRA.
On that basis, he submits that this claim by the Plaintiff is a
matter that falls squarely within the exclusive
jurisdiction of the
Transnet Bargaining Council or of the Labour Court. If he was
disgruntled by the decision of Ms van Kerken
he was at large to seek
relief in terms of s 158(1)(g) read with s 145 of the LRA. That
choice is still open to him provided
he applies for condonation;
[21.11]
Mr Mathipa submitted that Mr Sanoj was not entitled to abandon the
specially designed mechanism of the LRA and to approach this Court on
an issue that in law could be dealt with by another legally
established tribunal. Relying on the
Chirwa
judgment, he argued that Mr Sanoj must first exhaust the remedies
provided by the provisions of the LRA before approaching this
Court.
If this Court were to extend its jurisdiction over Mr Sanoj’s
claim, it will be promoting a dual
system for dealing
with cases of unfair dismissal.
[22]
At the heart and kern of Mr Sanoj’s case is his claim of
unlawful breach of his contract
of employment and an alternative
claim in delict in terms of the common law. He claims that his
claim is not about the unfairness
of his dismissal, and he is not
asking this Court to review and set aside the arbitration award.
Significantly, Mr Sanoj
contends that his current claim is not the
same claim that was before the Transnet Bargaining Council as it has
a different cause
of action. He contends that, in this claim,
he is enforcing his contractual rights in terms of the common law.
According
to him it is not a statutory claim in terms of the LRA.
He states furthermore that at the trial of this matter, the issue
for
determination will be whether Transnet breached the contract of
employment when it dismissed him, not whether it breached or
violated
the LRA. He has disavowed any reliance and remedies in terms of
the LRA in his particulars of claim.
[22.1]
He contends that he has demonstrated with reference to his
particulars of claim that he has pleaded a clearly identifiable and
recognisable claim for the relief founded on unlawful breach
of his
contract of employment in terms of common law. Just like
Chirwa
, he claims that he is enforcing his contractual
rights. Relying on
Baloyi v Public Protector and Others
(CC103/20)
[2020] ZACC 27
; 2021 (2) BLLR101 (4C)
[2021] 4 BLLR 325
(CC) paragraph [41]
, where the Court stated that:
“
The
approach endorsed, in Makhanya aligns with a series of judgments from
the Supreme Court of Appeal that have confirmed that a
contractual
claim arising from breach of a contract of employment falls within
the ordinary jurisdiction of the High Court, notwithstanding
the fact
that the contract is one of employment,” he
argued that a claim arising from breach of a contract of employment
falls within the ordinary jurisdiction of the High Court.
Then
he concludes that on this basis the High Court has jurisdiction to
hear his claim, and therefore, that this High Court has
jurisdiction
to entertain his claim against Transnet.
[22.2]
All that the Court said in
Chirwa
, is that you may not
start your dispute in one forum and midstream suddenly
move it to another forum. Once you
have elected to use one
forum, you must stick to it until your dispute is concluded. By
way of analogy, you may not start
your dispute, like Mr Sanoj, or
like
Chirwa
, by taking it to the bargaining council and
after an award has been made, like the
present case,
you take your matter to the High Court.
[22.3]
The fundamental difference between
Chirwa
and
Baloyi
and
Makhanya
on which Mr Sanoj relies is that
Chirwa
started her matter in accordance with the LRA
and while the matter was still there decided to continue with a
dispute in the High
Court, whereas
Baloyi
and
Makanya
took their matters straight to the High Court.
[22.4]
In
Chirwa
the Concourt recognised and classified the
dispute between
Chirwa
and Transnet as employment
related.
[22.5]
The Court made it clear that every case should be decided
on its own
merits and that is the reason it stated that:
“
The
starting point from the enquiry as to whether the High Court has
concurrent jurisdiction with the Labour Court in respect of
Ms
Chirwa’s claim (My own underlining)
is
s 157(1) of the LRA.”
The
Concourt did not state that “
in
respect of employer-employee disputes
”.
[22.6]
Furthermore, it identified the source of Ms Chirwa’s
claim or
complaint as being the LRA items 8 and 9 of Schedule 8 of the LRA.
It then concluded that Ms Chirwa relied on the
provisions of the LRA.
[22.7]
The Concourt also identified Ms Chirwa’s problem as
the type of
dispute whose source is s 191 of the LRA. It remarked that the
said section provides a solution to the disputes
emanating from s 191
of the LRA. The mechanism provided by s191 of the LRA includes
conciliation, arbitration, and review
by the Labour Court. It
concluded that the Labour Court has exclusive jurisdiction to
determine such disputes.
[23]
Despite what Mr Sanoj states in his replication, his claim is
predicated on the allegation that
he was substantially and
procedurally unfairly dismissed on 14 May 2010. In my view,
this is as clear as crystal from paragraphs
4 to 4.16 of his
particulars of claim. But for his dismissal, Mr Sanoj would not
be having any claim against Transnet.
His claim is not because
the Commissioner made an award in favour of Transnet, nor is it
because he was not successful at the arbitration.
Mr Sanoj’s
claim and alternative are based on what Transnet allegedly did to him
when it dismissed him on 14 May 2010.
[24]
Mr Sanoj’s contention that his claim is the unlawful breach of
his contract of employment
and the alternative claim in delict in
terms of the common law does not, however, have any merit, in my
view. His claim is
about the unfairness of his dismissal even
if he is not asking the Court to review and set aside the arbitration
award. What
is clear though is that the substratum of his claim
for unlawful breach is the so-called alleged fact that he was
dismissed unfairly.
He also stated clearly that the breach of
contract of employment was committed when he was dismissed on 14 May
2010. His
dismissal by Transnet, on 14 May 2010, was the
sine
qua non
of the breach of contract of employment he is alleging.
[25]
I am fortified, in my view, by the following paragraphs from the
judgment of Botha J, in
Jones and Another v Telkom South Africa
Ltd and Others
(2006) BLLR 513
(T)
in which he stated as
follows:
“
In
this case I am convinced that a vital component of the issue to be
determined concerns unfair dismissals, unfair labour practices,
and
dismissals based on operational requirements, all issues that
ultimately resort under the exclusive jurisdiction of the Labour
Court. The applicants have attempted to disavow a reliance on
unfair dismissal in their prayers, but it is clear from the
body of
their affidavits that they consider the process adopted by the first
respondent as one that has unfairly led to the termination
of their
employment, either as from 31 March 2005 or 31 May 2005.
It does not
have to say that it is a constitutional issue. Even to
determine where the process followed was fair, constitutionally
speaking, one will have to begin to establish whether it was fair in
terms of the
Labour Relations Act. Constitutional
issues cannot
be determined in the abstract. In this case what is at stake is
the fairness of a restructuring process.
Whether the process
was fair has to be judged according to the facts of the case and in
the context of the national legislation
that gives effect to s 23(1)
of the Constitution.”
[26]
In casu,
the same as in the
Jones
case supra,
the vital component of the issue to be decided relates to the unfair
dismissal of Mr Sanoj by Transnet. In my
view, this is an
employment related matter. For this Court to determine whether
Transnet breached the employment contract
it had with Mr Sanoj, the
Court must, by using the LRA, first determine whether Mr Sanoj was
unfairly dismissed, which have already
been determined by the award
of the Transnet Bargaining Council and, of paramount importance to
the issues at hand, issues which
are within the exclusive domain of
the LRA. Mr Sanoj has tried to distance his case from the
application of the principles
of the LRA, but it is clear from the
particulars of claim that he considers the process adopted by
Transnet Bargaining Council
as the one that has unfairly led to the
termination of his employment on 14 May 2010.
[27]
It is irrelevant to label his cause of action as common law or a
constitutional issue.
I align myself with the comments made by
Botha J that:
“
Even
to determine whether the process followed, in other words, whether
the termination of the contract of employment was done properly
or
unlawfully, one will have to begin to establish whether it was fair
or unlawful in terms of the LRA.”
Truly
constitutional or common law issues cannot be decided in the
abstract. They must be decided with reference to the LRA,
in
other words, whether the termination of the agreement of employment
was done according to the requirements of the LRA.
Mr Sanoj was
ill-advised to abandon the mechanism created by the LRA and to try to
solve his dispute with Transnet by referring
such dispute to this
Court. He should have started with such mechanism and not
reverted to this Court for the issue brought
before this Court.
This Court has no jurisdiction in such matters as the one that Mr
Sanoj has brought before it in the current
matter. In my view,
the special plea must succeed.
Special Plea of Prescription
[28]
The second special plea that Transnet has raised against Mr Sanoj’s
claim is that of prescription.
Transnet has pleaded the
following facts in the special plea of prescription:
[28.1]
the basis of Mr Sanoj’s claim for damages against
Transnet is
his alleged unfair dismissal from his employment which took place on
14 May 2010;
[28.2]
the claim constitutes a debt for purposes of sections 11(d)
and 12 of
the Prescription Act 68 of 1969 (the Act);
[28.3]
the debt was due and owing by Transnet on 14 May 2010, the
date on
which Transnet dismissed Mr Sanoj;
[28.4]
Mr Sanoj commenced action by means of summons which he served
on
Transnet on 29 January 2015 which is more than three years after the
debt arose;
[28.5]
In the premises, Mr Sanoj’s claim has become prescribed
in
terms of the Act.
[29]
In his replication to Transnet’s special plea of prescription,
Mr Sanoj replied as follows:
[29.1]
it is denied that the debt was due and owing by Transnet
on 14 May
2010;
[29.2]
the Plaintiff’s claim arose on 1 February 2012 when
the
arbitration award was issued;
[29.3]
the Plaintiff’s claim has therefore not prescribed.
COMMON
CAUSE FACTS
[30]
It is not in dispute that:
[30.1]
Transnet and Mr Sanoj had an employer-employee relationship;
[30.2]
on 14 May 2010 Transnet, the employer, terminated such relationship
when it dismissed Mr Sanoj from his employment;
[30.3]
Mr Sanoj commenced the current litigation against Transnet
based on
unfair dismissal;
[30.4]
a copy of the combined summons issued by Mr Sanoj against
Transnet
was served on Transnet on 11 February 2019;
[30.5]
in his summons Mr Sanoj claims damages based on his unfair
dismissal.
THE LAW
[31]
The process of extinctive prescription or otherwise called limitation
of actions has the effect
of extinguishing a debt after the lapse of
a specified period. For every kind of debt, the law fixes some period
after a lapse
of which the debtor may, if he so wishes, claim that
the creditor’s right against him has ended.The period of
prescription
is contained in s 11 of the Act.
S 11(d)
of the
Prescription Act provides
that:
“
The
period of prescription of debt shall be the following:
(d)
safe where an Act of Parliament provides otherwise, three years in
respect of any other debt.”
[31.1]
There is no doubt that the period of prescription of the
debt
involved
in casu
is three years. The only dispute
between the parties is the date on which such debt arose in terms of
s 12(1)
of the
Prescription Act:
“
12(1)
Subject to the provisions of subsections (2) and (3), prescription
shall commence to run as soon as the debt is due.”
[31.2]
According to Transnet’s counsel, the debt became due
on the day
Mr Sanoj was dismissed, in other words, on 14 May 2010.
According to Mr Sanoj the debt only became due on 1 February
2012
when the arbitration award was issued;
[31.3]
Mr Sanoj relied on the termination letter issued by Transnet
on 14
May 2010. Paragraph 6.3.4 of the TDCP, to which Mr Sanoj was
referred, provided that:
“…
refer
the matter to CCMA or Bargaining Council with jurisdiction over
dispute within 30 days.”
He contends that
he exercised his rights, referred the matter of his unfair dismissal
dispute to the Transnet Bargaining Council
for arbitration. In
brief, Mr Sanoj’s case is that referring a dispute of unfair
dismissal to the Transnet Bargaining
Council interrupts or prevents
the running of prescription.
[31.4]
The Act sets out the circumstances under which the running
of
prescription may lawfully be interrupted or prevented from running:
[31.4.1]
in terms of s 14(1) of the Act, the running of prescription is
interrupted
by an express or tacit acknowledgement of liability by
the debtor. It must be clear that the conduct relied upon as
interrupting
prescription amounts to an acknowledgement of
liability. The interruption of prescription by an
acknowledgement has the effect
that the prescription starts to run
afresh from the day on which the interruption took place;
[31.4.2]
in casu
, this is not Mr Sanoj’s case that the
prescription or the running of prescription which started to run on
14 May 2010 was
interrupted by an express or tacit acknowledgement of
liability by Transnet, the debtor.
[31.5]
Secondly, in terms of
s 15(1)
of the
Prescription Act, the
running of
prescription is interrupted by the service on the debtor of any
process by which the creditor claims payment of the
debt. It is
not Mr Sanoj’s case that the running of prescription of his
claim was interrupted by service of any process
in which he claimed
from Transnet within 3 years of 14 May 2010.
[31.6]
The running of prescription is interrupted again by an agreement
between the creditor and the debtor in terms of which the due date of
the debt is postponed. Again Mr Sanoj has not pleaded that
he and
Transnet had agreed to postpone the due date of the debt.
[31.7]
Accordingly, Mr Sanoj’s reason why he did not institute
an
action or why he did not commence the current action within three
years of 14 May 2010 does not constitute a valid reason.
The
reason he furnished did not prevent nor did it interrupt the running
of prescription.
[32]
Mr Sanoj should have realised that it is not unusual for two rights
to be asserted arising from
the same facts. This is exactly
what happened in this matter, according to his particulars of claim.
I need not belabour
this point laboriously as it has been fully dealt
with by the Court from paragraph [41] to paragraph [46] of
Makhanya
v University of Zululand 2010(1) SA 62 (SCA)
, (
Makhanya),
the matter on which Mr Sanoj himself relies. In paragraph [12]
of
Makhanya
the Court classified three claims as
follows:
“
Last
there is the potential (I emphasize that I refer only to the
potential) for three separate claims to arise when an employee’s
contract is terminated. One is for infringement of his or her
LRA right. Another is for infringement of his or her
common law
right. And where it occurs in the public sector, that is for
infringement of his constitutional right.
[An LRA right
is enforceable only in the Commission for Conciliation, Mediation and
Arbitration (CCMA) or in the Labour Court.]
The common
law right is enforceable in the High Courts and in the Labour Court.
A constitutional right is enforceable in the
High Courts and in the
Labour Court.”
In respect of
two distinct claims arising from precisely the same facts, the Court
referred to the case of
Lillycrap, Wassenaar and Partners v
Pilkington Brothers SA (Pty) Ltd
1985 (1) SA 475
(A)
.
[33]
I accept that in respect of the enforcement of both his contractual
and constitutional rights,
the High Court retained their jurisdiction
in terms of the Constitution. I also accept that based on his
particulars of claim,
Mr Sanoj has two claims arising from the same
facts, one arising from the infringement of his LRA over which the
labour forums
have exclusive power to enforce LRA rights to the
exclusion of the High Court and the other, the infringement of his
common law
right or as he was in the public sector, the infringement
of his constitutional right over which the High Court and the Labour
Court both have the power to enforce the common law and
constitutional rights. In my view, based on his particulars of
claim,
Mr Sanoj should have asserted his claim based on infringement,
that is common law or constitutional rights, within three years of
14
May 2010. In conclusion, his current claim against Transnet
has, accordingly, been extinguished by Prescription.
His claim
ought to be dismissed with costs.
Special Plea of Res Acta
Judicata
[34]
The Plaintiff pleaded as follows regarding the third special plea of
res judicata
:
[34.1]
the basis of the Plaintiff’s claim is that he was
procedurally
and substantively unfairly dismissed by the First Defendant from his
employment on 14 May 2010;
[34.2]
the Plaintiff referred a dispute to Transnet Bargaining
Council in
terms of
s 191
of the
Labour Relations Act alleging
that his
dismissal was substantively and procedurally unfair;
[34.3]
on 1 February 2012, the Commissioner of the Council delivered
an
award to the effect that the dismissal of the Plaintiff was
procedurally and substantively fair. The Plaintiff’s
current claim for payment of damages suffered as a result of his
alleged unfair dismissal by the First Defendant is a claim for
something on the same ground and against the same party;
[34.4]
the First Defendant pleads that, accordingly, the Plaintiff’s
claim was finally adjudicated by the Council, a forum of competent
jurisdiction.
[35]
In his replication Mr Sanoj pleaded as follows:
[35.1]
the Plaintiff’s claim is for damages based on his
unlawful
dismissal, or alternatively, delict;
[35.2]
the Plaintiff’s cause of action in his present claim
is
different to his cause of action at the arbitration;
[35.3]
the
Plaintiff’s present claim is accordingly not for the
same thing
and on the same ground, therefore Mr Sanoj does not seek the same
thing twice or more than once. I agree with
Mr Sanoj that his
present claim is not for the same thing. In arbitration
proceedings he sought reinstatement to his former
employment while in
the current claim he seeks damages. The crucial point is
the
following. For the Court to determine whether Mr Sanoj has
suffered damages, it must decide the very same issues that
already
have been decided by the arbitration proceedings. It must
decide whether Mr Sanoj was unfairly dismissed by Transnet
before it
can decide whether Transnet breached any contract of employment
between it and Mr Sanoj. The issue regarding breach of
contract
cannot be determined in isolation.
[36] It is a
fundamental principle of our law that there must be an end to
litigation.
A
defendant may plead res judicata as a defence to a claim which raises
an issue disposed of by a judgment in rem. The defence may
also be
based upon a judgment in personam delivered in a prior action which
was between the same parties, concerned the same subject
matter and
founded in the same cause of action.
In
deciding whether the point has already been decided between the
parties, in a manner sufficient to justify a plea of
res
judicata
, a distinction has to be
made between judgments in
rem
and judgments in
personam
.
If a judgment which is contended constitutes a bar from the second
action was a judgment that affects either the status
of a person and
if it concerns parties domiciled or properly situated within the
jurisdiction of this Court, such judgment becomes
conclusive against
all the world regarding what that judgment settles as to the status
of such person or property or as to the
rights entitled to the latter
and as to whether disposition it makes in regard to the disposition
of the property. Should
the judgment be merely a judgment in
personam
,
a plea of
res judicata
would be upheld only if certain requirements are satisfied. To
establish whether the judgment was in
rem
or merely in
personam
,
it is of paramount importance to have regard to:
[36.1]
the issues raised in the pleadings;
[36.2]
to analyse the judgment to ascertain precisely what decision
was
given. In this regard see
Pretorius v Barkly East
Divisional Council
1914 A.D. 407
at 409
where Searle J,
stated that “
in order to determine the complaint, the
pleadings and not the evidence must be looked at”
. See also
Boshoff v Union Government
1932 TPD 345
at 350
.
The Court in the Boshoff matter had the following to say:
“
For a
plea of res judicata to succeed, it is not necessary that the cause
of action in the narrow sense, in which that phrase is
sometimes
used, should be the same in the latter case as in the earlier case.
If the earlier case necessarily involved a judicial
determination of
some question of law or issue of fact in the sense that the decision
could not have been legitimately or rationally
pronounced without at
the same time determining that question in issue, then such
determination, though not declared on the face
of the recorded
decision is deemed to constitute an integral part of it and will be
res judicata in any subsequent action between
the parties in the same
subject matter.”
[37]
A litigant that pleads that a point in issue is already
res
judicata
because of an earlier judgment must show the following:
[37.1]
that there has already been a prior judgment;
[37.2]
by a competent court;
[37.3]
in which the parties were the same;
[37.4]
the same point was in issue.
[38] From this
principle flows the rule that legal proceedings can be stayed if it
can be shown that the point in issue has already
been adjudicated
between the parties. In the judgment of
Evins v Shield
Insurance Co.
1986 (2) SA 814
(A) at 835
, the Court stated
that:
“
Closely
allied to the “once-and-for-all” rule, is the principle
of res judicata which establishes that where a final
judgment has
been given in a matter by a competent Court, then subsequent
litigation between the same parties or their privies,
in regard to
the same subject matter and based upon the same cause of action is
not permissible and, if attempted by one of them
can be met by the
exceptio rei judicatae vel litis finitae. See also
Custom
Credit Corporation (Pty) Ltd v Shembe
1972 (3) SA 462
(A) at 472
;
[39]
A defence that there has been a determination and award by
arbitrators can be pleaded as
res judicata
. In this
regard, see
Schoeman v Van Rensburg
1942 TPD 175
;
Verhagen v Abramowitz 1960 (4) (SA) 947 [CPD] at 950
;
Zygos Corporation v Salem Redierna AB
1984 (4) SA 444
(C) at
456
.
In Schoeman’s matter it was contended,
however, the award of an arbitration was not res judicata because it
was not a final
judgment by a competent court.
“
It
was contended furthermore that a competent Court meant a Court of
law. The authorities referred to by Adv Rumph showed that that
is not
the true position. A passage from van Leeuwen showed that an award of
an arbitrator is equivalent to lis finita and that
the matter has
been determined and it is res judicata.
Then Barry J,
referred to a book by Redman, Arbitration and Awards, and stated that
it showed that an award of an arbitrator is
treated in the same way
as a judgment by a Court of law and is regarded as res judicata.
In
Martin
v Boulanger
49 LTR 62
it was
decided that an award of an arbitrator can be considered as res
judicata.”
I have
neither been able to find, nor I was referred to, any case which
upset the Schoeman’s case.
[40]
In
Verhagen v Abramowitz 1960 (4) (SA) 947 [CPD] at 950 U-H
the
court had the following to say:
“
It is
clear, however, from a perusal of this judgment that the Court was
dealing with the position when there has been a submission
to
arbitration, but nothing further has happened.”
Then the court
proceeded to state the law as follows:
“
When a
matter has been referred to arbitration for a decision and an award
has been given the situation is materially different.”
Then referring
to the
Strutt v Selma’s and Another
1959 (2) SA 536
it stated that:
“
A
party to an arbitration is not entitled to seek a decision of the
Court on the very matters already referred to arbitration, and
when
an award has in fact been made, it has been held that such an award
is equivalent to lis finita and as between the parties
the matter is
res judicata.”
The court also
relied on
Schoeman v Van Rensburg
1942 TPD 175
at 177
.
Then relying on
Voet the court stated that:
“
Voet
states that an exception of res judicata is allowed to prevent
inexplicable difficulties from arising from discordant and maybe
mutually contradictory judgment; on account of one and the same
matter in dispute being again and again brought forward in different
actions.”
A matter can
only be
res judicata
if, in fact, there has been a full and
final adjudication. Finally, on this point, in
Strutt v
Selma’s and Another
1959 (2) SA 536
[C] and [D]
, the
court stated that:
“
A
party to an arbitration is not entitled to seek a decision of the
Court on the very same matters already referred to arbitration.”
I am satisfied
that there has been full and final adjudication of the matter
constituting Mr Sanoj’s claim. Transnet has,
in my view, shown
that the matter before this Court constitutes the same matter that
Sanoj had placed before Transnet Bargaining
Council. Transnet has
therefore succeeded in proving its special plea of res judicata. That
special plea is therefore upheld.
The following
order is hereby made:
[1]. The
First Defendant’s special pleas of jurisdiction, prescription,
and res judicata are hereby upheld.
[2] The
Plaintiff’s claim is hereby dismissed, with costs
PM
MABUSE
JUDGE
OF THE HIGH COURT
Appearances
:
Counsel for the
Plaintiff:
The
plaintiff appeared in person
Instructed
by:
The
plaintiff appeared in Person
Counsel
for the Claimants/Respondents:
Adv
MK Mathipa
Instructed
by:
Ningiza Horner Attorneys
Date
heard:
14
October
20
21
Date
of Judgment:
21 October
202
2
sino noindex
make_database footer start
Similar Cases
Transnet SOC Limited v Mafahleni Engineers & Project Managers CC and Another (57163/2022) [2022] ZAGPPHC 184 (1 April 2022)
[2022] ZAGPPHC 184High Court of South Africa (Gauteng Division, Pretoria)99% similar
A.M v Transnet SOC Ltd (99978/2015) [2024] ZAGPPHC 361 (25 March 2024)
[2024] ZAGPPHC 361High Court of South Africa (Gauteng Division, Pretoria)99% similar
Transnet SOC Limited v Gijima Holdings (Pty) Ltd (Leave to Appeal) (2025-075722) [2025] ZAGPPHC 1367 (12 December 2025)
[2025] ZAGPPHC 1367High Court of South Africa (Gauteng Division, Pretoria)99% similar
Transnet (SOC) Limited v Tenova Mining and Minerals South Africa (Pty) Ltd and Another (2022/006083) [2023] ZAGPPHC 1837 (19 October 2023)
[2023] ZAGPPHC 1837High Court of South Africa (Gauteng Division, Pretoria)99% similar
Transnet SOC Limited v Gijima Holdings (Pty) Kimited (075722/2025) [2025] ZAGPPHC 1108 (16 October 2025)
[2025] ZAGPPHC 1108High Court of South Africa (Gauteng Division, Pretoria)99% similar