Case Law[2022] ZAGPPHC 1018South Africa
Mathye v ABSA Trust Limited (42437/2021) [2022] ZAGPPHC 1018 (1 December 2022)
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Mathye v ABSA Trust Limited (42437/2021) [2022] ZAGPPHC 1018 (1 December 2022)
Mathye v ABSA Trust Limited (42437/2021) [2022] ZAGPPHC 1018 (1 December 2022)
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sino date 1 December 2022
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION
,
PRETORIA
CASE
NO
:
42437/2021
Reportable:
No.
Of
interest to other judges: No
Revised
1
December 2022
I
n
the matter
between
:
MAHLATSE
MATHYE
Applicant
And
ABSA
TRUST
LIMITED
First Respondent
THE
MASTER OF HIGH COURT PRETORIA
Second Respondent
This
judgment has been handed down electronically and shall be circulated
to the parties via email. Its date and time of hand down
shall be
deemed to be 01 December 2022
.
JUDGMENT
Munzhelele
J
Introduction
[1]
The applicant,
Mahlatse Mathye
,
seeks an order
to terminate, M Mathye
Trust:
IT
020934/2014,
(the
trust),
established in his favour in 2014 while he was still a minor. The
applicant
is
the sole
beneficiary
of
the trust. The
first
respondent is
the
trustee
and
the administrator
of
M
Mathye
Trust.
[2]
The
application arises
out
of
an
order
of the
Honourable
Justice
Makhafola of 14
February
2014
,
which
avers
in
paragraph
11.4
that:
"the
termination
of the
Trust
shall
occur when Mahlatse Mathye reaches
the age
of 23 years: and
11.4.1
Subject
to the leave of the High Court upon application
,
for
the
purpose of which the appointed
trustees
shall cause the appointment of
a
curator ad
litem
,
the
costs of which shall be costs herein
,
and for
which purposes notice of such application
is
to be
given to the defendant.
11.4.2
the
trustees and/or the curator ad
litem
to
be
so
appointed
shall be entitled
to
appoint
the relevant experts
for
purposes
of preparing
a
report on
the
appropriateness
of
the
termination
of
the
Trust
when
Mahlatse
Mathye
reaches
the age of 23 years.
"
[3]
The
first
respondent opposed the application and brought a
counter
application
requesting
for
the dismissal
of
the
applicant's application
,
alternatively
that the main application be stayed
pending
the
appointment of a
curator
ad
litem
for
the applicant in order to determine whether the applicant is capable
of managing his own affairs.
[4]
The
background
of the
application
is
that the applicant
wants the
trust to be terminated because he is now an adult male person of 23
years old
.
He
has a daughter born on 13 March 2021. The applicant alleges in his
affidavit that he wants to get married
,
build a house
of his own
,
and start a
small business to generate money his family
.
He alleges
that with the amount of R6 000
,
00
(six thousand rands)
that he
receives
,
he
can barely
survive nor
realize his dreams
.
[5]
The further
averments are that the conditions
,
as stated in
paragraph 11
.
4
of the
court
order
,
affect
the applicant's exercise of his constitutional rights
,
more so
because the applicant is now an adult person of a sound mind. The
applicant feels that his constitutional right to liberty
,
dignity
,
control of his
destiny and the exercise of intent
i
on
to terminate the trust has been violated. He further avers in h
i
s
affidavit that the imposed conditions unfairly
precluded him
from exercising
his discretion
to terminate the trust despite not being rendered incapable of
manag
i
ng
h
i
s
finances.
[6]
The applicant
opposed the appointment of a
curator
ad litem
per
the court's order because he does not suffer mentally or is incapable
of managing his affairs. The applicant
'
s
affidavit avers that he only sustained injuries on his righ
t
leg in the
form of a fracture above the knee during the accident. The right leg
was later amputated at Kagapane Hospital. He denies
that there were
any injuries on his head
.
He
further
avers that the
reason for creating
a
trust was
that
,
at
the time
,
he
was still a minor and incapable of managing his affairs
.
Now he is an
adult and capab
l
e
of managing his finances.
[7]
The
first respondent opposing the application for termination says in an
affidavit that the application does not comply with section
57 of the
Uniform Rules of
Court
as
well
as
section
13
of
the
Trust
Property
Control
Act
[1]
.
The
first
respondent avers that the founding affidavit lacks any particularity
and failed to
set
out
the
prejudice
he
will
suffer
due
to
the
first
respondent
acting
as
a
trustee
in respect of the M Mathye Trust. The further averments are that the
applicant failed to set out how the first respondent's
conduct
hampers the achievement of the founder's object. The first respondent
avers that the applicant should have indicated how
the funds will be
utilized and what safeguards will be implemented for the funds should
the relief prayed for by the appl
i
cant
be granted.
[8]
The first respondent
also brought a counter application wherein they are requesting the
court to stay the main application pending
compliance with prayers
11.4
.
1
to 11.4.3 of the order dated 6 December 2021 for appointment of a
curator ad
litem
and his
report on whether the applicant is capable of managing his affairs.
The
medico-legal
reports attached do not support that the applicant should terminate
the trust. There is a duty bestowed on the first
r
espondent
to preserve and protect the funds received by the Road Accident Fund
(the RAF)
.
On
that basis
,
the first
respondent den
i
es
that the trust
should be terminated
.
Arguments
by the parties
[9]
Adv.
Mphela
,
for
the applicant
,
in
applying for termination of the trust account, submitted that the
only reason why the trust was established was to protect the
funds
for the benefit of the applicant as a minor at the t
i
me
,
and
that object has been achieved
.
Counsel
contended against the appointment of a
curator
ad litem
and
said that the appointment of a
curator
ad litem
and
bonis
is
provided as early as possible if the patient indicates that he is
significantly impaired mentally. He referred the court to the
case of
the
Road
Accident Fund v Ndeyide
[2]
.
He
also submitted that the first respondent
'
s
basis of opposition that the applicant does not comply wit
h
rule
57 of the Uniform Rules of Court as well as section 13 of the Trust
Property Control Act lack substance in that the object
of the trust
was to protect the funds until the applicant reaches the age of
matur
i
ty
and the
court
order which established the t
r
ust
contained termination clause which inf
r
inges
the constitutional right to liberty and dignity of the beneficiary.
[1
0]
Adv.
Mphela further contends and referred to
Ex
Parle Kotze
[3]
,
where
the learned Judge concluded
that
before the court could interfere with the right of an adult to
control his affairs, the court had to be satisfied after a proper
enquiry into the mental condition of the alleged patient that
interference by the court was justified
.
In
Ex
Parle Klapper: In re Klapper
[4]
Galgut
J said that:
"
Court
will
not
appoint
a
curator
bonis
until it
is
absolutely
satisfied
that
the parties
have to be protected against loss which would be caused because the
patient is unable to manage his affairs
."
In
Niekus
v Niekus
[5]
court
said:
"
a
curator ad
litem
would
'
be
appointed in circumstances where the failure to do so might cause
injustice to the pat
i
ent.
"
[11]
Lastly Adv.
Mphela submits that the first respondent's
refusal to
terminate the trust amounts to an unjustified violation of the
applicant's guaranteed rights to dignity and freedom
.
Termination
of the trust
will not
p
r
ejudice
the first respondent.
[12]
Adv
.
Ell
i
s
argued that the first respondent has always acted diligently and
responsib
l
y
regarding the utilization of the funds and protection thereof
.
Counsel went
on to say that the applicant did not comply with rule 57 of the
Uniform Ru
l
e
as well as section 13 of the Trust Property Act 57 of 1988
.
Further
,
it needs to be
indicated by the applicant how he intends to utilize and safeguard
the funds should the relief prayed for be granted.
Counsel argued
that the first respondent could not disregard the court's order
unless directed or ordered by the court
.
[13]
The first
respondent requested the court to stay the main application pending
compliance with the appointment
of a
curat
o
r
ad
litem
on whether
the applicant is capable of managing his own affairs
.
It has already
been mentioned in the reports attached to the found
i
ng
affidavit that the trust should not be terminated.
[14]
Adv. Ellis
denies the allegation by
the
applicant that
the prayers
11.4.1
to
11.4.3
conflicts
with
the
applicant's
constitutional rights. He submits
that
these prayers
protect and safeguard the applicant's
funds.
The applicant
failed to
identify
the prejudice
he suffered as a
result
of the first
respondent acting as trustee in respect
of
the
M
Mathye trust.
Adv.
Ellis
also submits that
the
trust
should
not be terminated.
Legal
Principle
[15]
The
trust
can only
be
terminated
when
it
has served
its
purpose
in terms of
its stated
objectives
or
upon
the
coming
into
being
of
an
event
specified
in
the
trust
instrument.
[16]
The
court
order
in
paragraph
11.4
indicates
that:
"the
termination
of the
Trust
shall
occur when Mahlatse Mathye reaches the age of 23 years
;
and
11.4.1
subject
to the leave of the High Court upon application
,
for
purposes of
which
the
appointed trustees shall
cause
the
appointment of
a
curator ad
litem
,
the
costs of which
shall
be
costs herein
,
and for
which purposes notice of such application is to be given to the
defendant.
11.4.2
the
trustees and/or the
curator
ad
litem to be so appointed shall be entitled to appoint the relevant
experts for purposes of preparing
a
report
on
the
appropriateness
of the termination
of the Trust when Mahlatse Mathye reaches the
age of
23 years."
[17]
Both
the
applicant
and the first
respondent
admits
that
the
court
order sets out
when
the
trust should be
terminated.
This
trust
was
formed
when the
applicant
was still a
minor
,
and
his mother
was
representing
him
and
had
consented
to
the
trust
formation
.
She
knew
about
these
conditions
laid
down
in
11.4
.1
above
and
did
not
dispute
them
.
This
trust should
be
terminated
when
the
event
specified
in
para. 11.4
.
1
has
been
fulfilled.
The
tact
that
it
is
unconstitutional
cannot
become
the
reason
for
this court
to
disregard
it.
In
Municipal
Manager OR Tambo District Municipality and Another v Ndabeni
[6]
,
the
court
reaffirmed that
a
court
order is binding until it is set
aside
by
a competent court
and
that
this
necessitates compliance, regardless of whether the
party
against
whom
the
order
is granted believes it to be a nullity or not. If the applicant
,
in
this case
,
believes
that this court order is unconstitutional, then he has
a
duty
to pursue an appeal to correct the illegality. See
Department
of Transport
v
Tasima
Pty Ltd
[7]
;
Secretary
of the Judicial Commission of
Inqu
iry
into
allegations of State Capture Corruption and Fraud in
the
Public
Sector
including
Organs
of State
v
Zuma
[8]
where
it was stated
:
"
court
orders granted by a competent court are binding until set aside by a
competent court in terms of
sect
ion
165
(5)
of the
Constitution of South Africa
,
1996
irrespective of whether they are valid or not.
Wrongly issued
judicial orders are
not
nullities
.
It is the
court
that
,
once
invalidity is proven can overturn the decision
.
The party does
the proving not the disregarding
.
Parties cannot
usurp
the
court
'
s
role
in
making legal
determination
."
The
applicant should adhere to the court order as it is until it is set
aside on appeal if they decide to appeal.
[18]
On
the
other
hand
,
the
first
respondent
in
this
case
should
have
appointed
the
curator
ad
litem
as soon as
possible when the applicant attained the age of 23 as per the
court
order and in
terms of rule 57 of the Uniform Rules so that the curator can without
delay
interview
the applicant
and to make an informed decision whether experts are requ
ir
ed
,
seeing
that
the applicant
is of sound mind and an adult person whom as we speak is taking
control of his own money which he is being given monthly.
The
applicant wants to build himself a house
,
start a
family
,
and
have a small business to support his upcoming family
.
This will
afford him dignity as a man.
[19]
It is apparent from
the order that the first respondent should appoint a
curator
ad
litem
who will
be able to inform the court appropriately
whether there
is a need or not for the termination
of the trust
after the
interview
with the
applicant. Therefore
,
the
application is
dismissed
,
and
the
first
respondent
should
comply
with
the
court
order
as
soon
as
possible
.
Order
[20]
The following
order is made:
1.
The
applicant's applicat
i
on
is dismissed
.
2.
The first
respondent
is
ordered to appoint
a curator
ad litem
within thirty (30) days of this order to determine whether
the applicant
can manage
his affairs
.
3.
No
costs ordered
on both applications
.
M.Munzhelele
Judge
of the High Court Pretoria
Virtually
heard: 18 May 2022
Electronically
Delivered
:
01
December
2022
Appearances:
For
the Applicant: Adv
.
B
.
R
Mphela
Instructed
by
:
Molosi
Attorneys
For
the
First
Respondent:
Adv
.
C
.
B
Ellis
Instructed
by
:
Hutten
Odendaal Inc
[1]
57
of 1988
[2]
2008
(1) SA 535 (CC)
[3]
1995
(1) (SA) 665 (C)
[4]
1961
(3) SA 803
(T) at 803 E to H
[5]
1974
(1) SA 309 (C)
[6]
2022
(2) ACC 3
[7]
[2016]
ZACC 39 2017 (2) SA (CC)
[8]
[2021]
ZACC 18
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