Case Law[2024] ZAWCHC 378South Africa
Raubex Building (Pty) Ltd v Bitou Municipality and Another (13787/2024) [2024] ZAWCHC 378; [2025] 1 All SA 472 (WCC) (19 November 2024)
High Court of South Africa (Western Cape Division)
19 November 2024
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Raubex Building (Pty) Ltd v Bitou Municipality and Another (13787/2024) [2024] ZAWCHC 378; [2025] 1 All SA 472 (WCC) (19 November 2024)
Raubex Building (Pty) Ltd v Bitou Municipality and Another (13787/2024) [2024] ZAWCHC 378; [2025] 1 All SA 472 (WCC) (19 November 2024)
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sino date 19 November 2024
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
REPORTABLE
CASE
NUMBER: 13787/2024
In
the matter between
RAUBEX
BUILDING (PTY)
APPLICANT
and
BITOU
MUNICIPALITY
FIRST RESPONDENT
CARNIVORE
CAPITAL (PTY) LTD
SECOND RESPONDENT
JUDGMENT
Date
of hearing: 5 November 2024
Date
of judgment: 19 November 2024
BHOOPCHAND
AJ:
1.
Where lies the sense of a relay team demanding the gold
medal for it
crossed the finish line fastest but dropped the baton at the first
change?
2.
In October 2023, the First Respondent (“the Municipality”)
issued a public tender for the development of housing units under the
First Home Finance and Subsidy Assistance Programme, previously
known
as the Finance-linked Individual Subsidy Programme (FLISP). The
tender was awarded to the Second Respondent (“Carnivore”)
on 15 April 2024. The Applicant was an unsuccessful bidder and sought
judicial review and ancillary relief relating to the decision
of the
Municipality. In Part A of the application, the Applicant prayed for
an urgent interim interdict to prevent the Respondents
from taking
any further steps to implement the tender. The Applicant also sought
costs against the Municipality and Carnivore,
the latter if it
opposed the application.
3.
Francis J. heard Part A of this application on 2 July
2024. Due to a
lack of urgency, the matter was struck from the roll with costs.
Carnivore invited the Applicant to withdraw the
application pursuant
to comments allegedly made by the Honourable Justice on the prospects
of success with the review, but the
Applicant declined. Carnivore
accordingly set Part A of the application down for hearing, and the
Applicant indicated it intended
to proceed with the application for
an interim interdict.
4.
On commencement of the hearing, Applicant’s Counsel
intimated
that he was instructed to seek a postponement of the matter. Counsel
instructed by Carnivore confirmed that the matter
was set down to
proceed on Part A of the application, and so it did. The Court was
assigned to hear Part A of the application and
was not inclined to
grant a postponement raised at a late stage of the proceedings.
Applicant’s Counsel did not pursue the
application for a
postponement with any fervour. To the extent that the Court is
required to do so, the application for a postponement
was declined.
Applicant’s Counsel then proceeded to present the application
for an interim interdict.
5.
Erf 4367, Plettenberg Bay, was rezoned in August 2020
to allow the
construction of middle-income housing units accommodated in
multiple-level flats on prime property. The recognised
procedure for
the award of a tender occurred. On 10 November 2023, prospective
tenderers attended a compulsory bid clarification
meeting. The
closing date for submitting bids, i.e., 15 December, was extended to
31 January 2024 following the issue of two further
addenda to the bid
documents. The first addendum dealt with the amendment of the
preference points awarded to tenderers. The bulk
of the preference
points were awarded for price and the remainder for compliance with
specific goals detailed in the bid invitation.
The specific goals in
this tender included contracting with historically disadvantaged
persons and promoting enterprises in the
surrounding areas. The
specific goals were measurable and quantifiable and would be
monitored for adherence. As the value
of the tender was above R50
million, the preference point system applicable to the tender changed
from 80/20 to 90/10 for price
and the achievement of specific goals,
respectively. The first addendum also dealt with a change in
the closing date.
6.
The second addendum to the tender documents changed the
closing date
for bids to 31 January 2024 and amended the functionality category,
which concerned the density factor and unit cost
calculation. The
minimum size of the units was reduced from 50m
2
to 35
2
,
and the capped value of sales of each unit below R1million,
from 150 to 120. The points conferred as part of the functionality
assessment relating to the number of units and the unit cost
calculation changed. A functionality assessment concerns each bid
and
includes, among others, proof of similar undertakings, proof of the
supplier’s location, and the financial capability
of the
service provider.
7.
The tender specifications, included in a four-page document,
are
pivotal to the determination of this application. The flagship
sectional title development project was intended to serve
the
Gap housing income market. In 2023, the income limit applicable
to the Gap category was between R3501 and R22 000
per month. The
specifications included provisions for 1 to 3 bedrooms, communal open
spaces, access control and access to the N2.
The Bitou zoning scheme
bylaw of 28 July 2023 and the Municipality conditions of rezoning
approval of 17 June 2020 applied. The
development was limited to 3
floors with a maximum height of 10.67 metres. The Municipality
explained that its application
to depart from these limitations was
unsuccessful, meaning that the designs provided by bidders had to
comply with these limitations.
8.
The Applicant costed each unit it proposed to build at
R891 632.73,
which was the lowest bid on price. However, the Applicant’s
design proposed four floors and exceeded the
height restriction of
10.67 metres. The founding affidavit minimises this glaring blemish
in the Applicant’s bid. Five
bidders, including the
Applicant and Carnivore, tendered for the contract to develop
the site. Each bid was subjected to a
technical appraisal, a bid
evaluation, and finally, an adjudication per the Municipality’s
Supply Chain Management policy.
Marcel Minne, the Spatial
Planner employed at the Municipality, provided an unauthorised
explanatory affidavit addressing
the tender process and the
adjudication of the bids submitted.
9.
The
Applicant requested the Bid Adjudication Committee’s report and
the reasons for its unsuccessful bid on 18 April 2024
from the
Municipality’s Supply Chain Management practitioner, Mr Larry
Damonds (“Damonds”). Damonds responded
on 23 April
2024 whilst he was on leave. The brief response included
references to the functionality, combined bid scores,
and the Town
Planning Approval and Bitou Zoning Scheme bylaw, which allowed for
three floors and a height of 10.67 metres. The
response states that
the Applicant submitted a proposal for four floors that exceeded the
height of 10.67 metres. The Applicant
obtained a functionality score
of 91.75, and Carnivore scored 93.75. Both bids were passed.
[1]
The combined score table reflected that the Applicant received 83.55
points for the financial offer, 5 for BBBEE, 2 for locality,
and a
total of 89.55. Carnivore received 89.94 points under the financial
offer, 4 for BBBEE, 5 for locality, and a total score
of 98.94. The
Applicant was ranked third out of five bidders, and Carnivore, the
successful bidder, was ranked number one.
10.
The Applicant requested functionality scoring for all tenderers, as
it
assumed that only two bidders passed the functionality criteria. A
further response clarified that three bidders passed the
functionality
scoring. This information would have been apparent from
the table of combined scores included in Damonds' email, which ranked
the
Applicant third out of five bidders. The Applicant contended that
it had only realised “now that the Municipality calculated
the
preference points on a 90/10 ratio”. The reference to “now”
is unclear, as it could refer to when the response
was received from
Damonds or during the drafting of the founding affidavit. The
allegation is untenable as the first addendum
to the tender addressed
this aspect. The Applicant and Carnivore agreed that the
preference point ratio did not impact the
outcome. The Applicant
contended that it would have scored the highest points.
11.
Further email correspondence from the Applicant sought clarification
on
whether it was unsuccessful because its design did not comply with
the bylaws or scored the highest points. The response from Damonds
on
3 May 2024 repeated that he was on leave but tried to check emails to
enable a response. Damonds answered that the Applicant
was
unsuccessful on both design and points, but ultimately, the
highest-scoring bidder would have still been recommended for the
tender.
12.
On 9 May 2024, the Applicant appealed under section 62 of the
Municipal
Systems Act 32 of 2002. The Applicant referred to its price
of R891 632.73 per unit compared to that of Carnivore, which was
R959 875, and the email exchanges seeking reasons and
clarification from Damonds. The notice of appeal does not refer
to the Applicant’s design. The Applicant used the formula
Ps=90(1-Pt-Pmin), where Ps referred to the points scored for the
tender price, Pt, the tender under consideration, and Pmin, the
lowest acceptable tender, to motivate its contentions in the appeal
notice. The scoring for Carnivore used the tender price of the
second-ranked bidder, Wincrest Developments (Pty) Ltd (“Wincrest”),
of R960 511.36 as Pmin. The Applicant contended that the
Municipality should have used its tender price as it was the lowest.
Using its tender price, the Applicant calculated the scoring at 83.11
for Carnivore, 83.04 for Wincrest, and 90 for itself. The
Applicant
submitted that its bid scored the highest and that the
Municipality had erred in awarding the tender to Carnivore.
The
Applicant claimed that it should have received the tender and
threatened interdictory action pending the outcome of the appeal
if
the tender was implemented.
13.
The Municipality’s official response under the hand of the
Acting
Municipal Manager occurred on 13 May 2024. The Acting
Municipal Manager misconstrued the Applicant’s notice of appeal
as
an enquiry as to why the Applicant did not succeed. He does not
acknowledge an appeal but proceeds to clarify the issues raised
by
the Applicant on the processes followed and why the Applicant’s
bid was not accepted as the highest-scoring bidder. The
Acting
Municipal Manager emphasised that his correspondence sought to
clarify the concerns raised in the Applicant’s letter.
He then
proceeded to outline the process involved in evaluating the bids. He
listed the five bidders and referred to the compliance
and technical
evaluation of the bids under the Supply Chain Management policy and
tender rules.
14.
The Acting Municipal Manager then dealt with the evaluation by the
Bid
Evaluation Committee. He referred to the bid specifications
relating to the number of floors permissible and the height
restriction.
The response then repeated the table of combined
tender evaluation points first provided by Damonds, which ranked the
Applicant
third among five bidders before repeating the floor and
height restrictions. The latter was referred to as risk checks on
responsive
tenders. The response states that Wincrest and the
Applicant submitted plans for four floors, which were
unacceptable
based on the advertised tender conditions. The Acting Municipal
Manager then provided the final combined tender evaluation points.
Carnivore was the only bidder reflected in the table. It scored 90
points for price, 9 points for preference and 99 points in total,
earning the number one ranking. The response stated that
Carnivore had been recommended as the highest-scoring responsive
bidder.
15.
The Applicant contends that the Municipality acknowledged that the
preference
points scores had indeed been incorrectly calculated and
confirmed that the Applicant outscored both Carnivore and Wincrest.
The
applicant alleged that the Municipality then purported to
withdraw the preference points that it had allocated. The
Applicant
downplays that its bid was rejected as the submitted design
did not conform to the specification by characterising it as another
trick up the Municipality’s sleeve. The latter allegation was
gratuitous as no evidence was forwarded to suggest improper
conduct.
16.
The Applicant reminded the Municipality that its letter was not
addressed
as an enquiry but as an appeal and asked that the appeal be
noted and specified documents provided. Damonds responded by email on
3 June 2024. He pointed out that the appeal period commenced on 18
April 2024 and ended 21 days later on 9 May 2024. Damonds informed
the Applicant that their letter of 16 May 2024 consisted of a further
request which fell outside the appeal period and would not
be
considered. The Municipality was incorrect as the notice of appeal
had conformed to the time allowed for the appeal. It was
submitted on
the last day of the appeal period.
17.
On 4 June 2024, the Applicant urged the Municipality to review its
decision
or undertake to halt implementation of the development until
the Applicant applied to review the Municipality’s decision.
Damonds correctly requested the Applicant to direct all further
enquiries to the Municipal Manager, as it should have done from
the
beginning. The Municipality did not respond to the letter.
THE
APPLICANT’S CASE
18.
The Applicant contended that the award was fatally flawed and
repeated
the reasoning already canvased thus far. The Applicant
recited the legislation and principles underlying the award of
tenders and
the review thereof. It asserted that the tender awarded
to Carnivore was unlawful and invalid and fell to be set aside. The
Applicant
listed seven grounds of review prescribed in section 6 of
the Promotion of Administrative Justice Act 34 of 2000 (“PAJA”)
without elaboration. The review forms part B of the application.
THE
RESPONDENT’S ANSWER
19.
Carnivore contested the Applicant’s allegation that it lost the
bid for one reason alone, namely that Carnivore outscored it.
Carnivore rejected the contention as demonstrably false as the bid
was decided on the bidders' responsiveness to the specifications. The
cardinal flaw in the Applicant’s bid was that it failed
to
comply with the tender specifications. It was non-responsive and fell
to be rejected before the functionality or scoring even
arose.
Although the Municipality repeatedly raised the Applicant’s
non-responsiveness in the correspondence between itself
and the
Applicant, it is not mentioned in the founding affidavit. The
Applicant’s failure to comply with the minimum requirements
of
the tender should be the end of this matter.
20.
Carnivore contends that on the Applicant’s own submission, it
has
failed to exhaust the internal remedy available to it in terms of
section 62 of the Local Government Municipal Systems Act 32 of
2000
(“the Systems Act”). The Applicant maintained that the
Municipality’s response to the appeal did not constitute
an
appeal decision. The Applicant’s case was that the internal
appeal had not been determined. Carnivore reasoned that the
review
application is premature as the Applicant has failed to exhaust the
internal remedy. The Applicant should have sought an
order compelling
the Municipal Manager to dispose of its appeal. This Court should not
circumvent the internal appeal process by
granting an order in review
proceedings. Carnivore asserted that the incomplete appeal process
was also fatal to this application.
21.
Carnivore then characterised the proposed review as incompetent for
two
reasons. The Applicant had failed to exhaust its internal
remedies as required in section 7(2) of the Promotion of
Administrative
Justice Act 3 of 2000 (“PAJA”) as well as
Section 51 of the Supply Chain Management Policy (“SCM”).
Furthermore,
the Applicant had merely identified the subsections of
section 6 of PAJA that it relied upon without elaboration, meaning
that
its grounds for review were speculative. The Applicant expected
Carnivore to trawl through its allegations to ascertain the case
it
proposed to present in the review application. Carnivore could not
respond properly to the grounds of review the Applicant relied
upon.
22.
Carnivore contended that the Applicant’s bid was cheaper
because
it did not conform to height restrictions. It would have been
able to produce more units for the project than any other compliant
bidder. In doing so, it could bid to produce more units at a lower
marginal cost. The Applicant could lower its per unit price
and
remain profitable.
APPLICANT’S
REPLY
23.
In its reply, the Applicant accuses Carnivore of opposing the
application
on false and contrived grounds to kick up as much dust as
possible. It accuses Carnivore of making allegations that are
misleading.
The Applicant pursued this theme, alleging a patent lack
of merit in Carnivore’s answer. Carnivore ignored the
applicable
test for interim applications and the applicability of
uniform rule 53 for uncovering further information relating to the
tender
award. Carnivore allegedly and opportunistically traversed the
merits of the Part B review application. The Applicant persisted
with
its contention that the sole reason for losing to Carnivore was
calculating Carnivore’s score. The Applicant denied
that its
bid was non-responsive, asserting that non-compliance or
unresponsiveness did not feature in the Municipality’s
reasons
for denying it the tender.
24.
The Applicant made an about-turn on the appeal that it initially
contended
the Municipality had misconstrued. It alleged that the
Municipality’s communicated position was dispositive of the
appeal.
The Applicant had exhausted its internal remedy. Regrettably,
the Applicant, supervised by legal representatives, brazenly changed
its position in reply as if its initial contentions would have
escaped Carnivore and the Court’s attention. The Applicant
changed its position because Carnivore noted the consequence of not
exhausting an internal remedy. Carnivore had correctly
contended that there were three possibilities relating to the issue
of the Applicant’s appeal. The mischaracterisation of
the
appeal notice, the appeal was out of time, and the Municipal
Manager did decide the appeal. The Court observes that Carnivore
is
equally guilty of peddling untenable submissions. The Municipal
Manager did misconstrue the Applicant’s appeal letter.
The
appeal was submitted on time. Damonds email confirmed that the
closing date was 9 May 2024.
INTERIM
RELIEF
25.
This
application is primarily concerned with whether the Applicant should
succeed with its application for an interim interdict
pending the
final determination of the review application. The Court declined to
read two further bundles of documents obtained
through the Rule 53
procedure. Those documents are best reserved for the review Court.
This Court has restricted itself to
the evidence in the
affidavits that are properly before it.
[2]
26.
The
requirements for the grant of an interim interdict are set out in
Setlogelo and refined in Webster. The requirements to obtain
an
interim interdict that involves the State and organs of the State are
more onerous, a pattern that began in 1955 and received
further
attention in 2012. The well-known test enunciated in Setlogelo
remains with refinements on the requirements and more stringent
rules
for granting them. The test requires an applicant seeking an interim
interdict to establish (a) a
prima
facie
right even if it is open to some doubt; (b) a reasonable apprehension
of irreparable and imminent harm to the right if an interdict
is not
granted; (c) that the balance of convenience must favour the grant of
the interdict and (d) there is no other remedy.
[3]
A Court will not easily grant an interdict restraining the exercise
of statutory powers unless there are allegations of
mala
fides
,
exceptional circumstances, and a strong case for granting the
interdict.
[4]
When a Court
considers whether to grant an interim interdict, it must do so in a
way that promotes the objects, spirit, and
purport of the
Constitution. If a right asserted is sourced from the Constitution,
enquiring whether that right exists would be
redundant. When a Court
weighs up where the balance of convenience rests, it may not fail to
consider the probable impact of the
restraining order on the
constitutional and statutory powers and duties of the state
functionary or organ of the state against
which the interim order is
sought.
27.
The balance
of convenience enquiry must now carefully probe whether and to what
extent the restraining order will probably intrude
into the exclusive
terrain of another branch of Government. The enquiry must, alongside
other relevant harm, properly regard the
doctrine of separation of
powers. A court must remember that a temporary restraint against
exercising statutory power well ahead
of the final adjudication of a
claimant’s case may be granted only in the clearest of cases.
It is neither prudent nor necessary
to define “clearest of
cases”. However, one important consideration would be whether
the harm the claimant apprehends
amounts to a breach of one or more
fundamental rights warranted by the Bill of Rights.
[5]
PRIMA
FACIE RIGHT
28.
Apart from
the right to review and set aside the Municipality's decision not to
award it the tender, the Applicant had to demonstrate
a
prima
facie
right threatened by an impending or imminent irreparable harm. The
Applicant contended that any further progression of the contract
awarded to Carnivore had to be stopped.
[6]
29.
The Applicant failed to demonstrate any right other than the right to
a review. Although the Applicant seeks an interim interdict, it does
not address the requirements in an easily discernible and sequential
manner. It does not address the
prima facie
right it has at
all. Carnivore was more accommodating of the omission and the
haphazard and cursory manner in which the Applicant
dealt with the
requirements for an interim interdict in the founding affidavit.
30.
Carnivore generously identified the right to just administrative
action
as the exclusive right relied upon by the Applicant. Carnivore
asserted that the Applicant possessed no right after submitting a
non-responsive bid because it did not comply with the specifications.
The Applicant had no right to contract with the Municipality,
nor did
it contend it had.
IRREPARABLE
HARM
31.
The
Applicant provided an overview of the contract's design, the initial
construction phase, and its costs if the work was allowed
to proceed.
Substantial costs estimated at approximately R13 million were
attributed to moving heavy equipment onto the site. The
Applicant
contended that the Municipality and the taxpayer could save these if
the works were halted. The Applicant relied on the
dictum that the
longer the contract proceeded, the harder it would be to set aside
the unlawful award. In appropriate circumstances,
a Court will
decline, in the exercise of its discretion, to set aside an invalid
administrative act.
[7]
An
invalid award of a tender is permitted to stand in circumstances
where the prejudice to the Respondent, the public interest
in the
finality of administrative decisions and the exercise of
administrative functions, the latter including considerations of
pragmatism and practicality, and a case that is affected by the
efflux of time and intervening events.
[8]
In relying on
Sapela
,
the Applicant contended that it is an established stratagem for a
successful bidder to insulate the award of a tender against
it being
set aside. Refusing interim relief would significantly reduce the
possibility of obtaining any meaningful remedy on review.
The
Applicant could not conceive of any harm Carnivore would suffer if
interim relief were granted.
32.
Carnivore contended that the construction phase had not commenced,
and
the Applicant had not specified any harm it would suffer. The
Applicant focussed on the significant cost element for the taxpayer
should progress be abruptly halted. Carnivore asserted that this is
not the kind of harm required to be shown to secure interdictory
relief. The harm to the community will be far greater if affordable
housing is not implemented without delay.
BALANCE
OF CONVENIENCE
33.
The balance of convenience requirement has become pivotal in granting
restrictions on statutory power. A State must function without
interfering in executing its duties and obligations. A court must
be
satisfied that the balance of convenience favours granting a
temporary interdict. It must first weigh the harm to be endured
by an
applicant if interim relief is not granted as against the harm a
respondent will bear if the interdict is granted. Thus,
a court must
carefully assess all relevant factors to decide where the balance of
convenience rests. Both parties contended that
the balance of
convenience weighed in their favour.
34.
Determining
where the balance of convenience lies encompasses the limitations
placed on a Court to honour the separation of powers.
[9]
Courts should not usurp the constitutional or statutory allocation of
specific powers to particular branches of government in making
decisions of their preference. That would frustrate the balance of
power implied in the principle of separation of powers. The
primary
responsibility of a court is not to make decisions reserved for or
within the domain of other branches of government, but
endeavour to
ensure that they exercise their authority within the bounds of the
Constitution. This is pertinent where an impugned
decision is
policy-laden and polycentric.
[10]
A polycentric decision involves multiple centres in decision-making.
A policy-laden decision is grounded in political influence
on
conceptualising and implementing broad values. A litigant's
invitation to restrain statutory power must be cautiously considered
and only accepted when a proper, unassailable, and clear case is
articulated. This does not mean the Municipality is impervious
to
judicial review because of the separation of powers. The exercise of
all public power is subject to constitutional control.
[11]
35.
After traversing the distinction between an infringed fundamental
right
and one that follows an administrative decision, the Applicant
eventually asserted its right to fair administrative action. The
remaining allegations made by the Applicant do not advance its case
for restraining the Municipality. The latter response
resonates
with its tendency to make bald assertions without substance under
these headings. Carnivore fared better in answering
the Applicant’s
non-existent allegations to support this requirement for interdictory
relief. Carnivore asserted that the
Municipality had exercised its
statutory power to promote access to housing. The Municipality is
under a constitutional obligation
to realise the right to access to
adequate housing, and it has elected to meet the obligation by
issuing the tender. The Applicant
issued a non-responsive bid. It
could never have fulfilled the obligations in the tender and assisted
the State in realising its
constitutional obligations. Carnivore
submitted that it was lawfully appointed and is well placed to carry
out the project. It
cannot be that the balance of convenience would
favour impeding the right of access to affordable housing so that the
Applicant
can litigate a wrongheaded and fatally flawed review
application at its leisure and pleasure.
36.
The Applicant repeated the dictum that the stronger the prospects of
its
case on review, the more the scales of convenience tilt in its
favour. It then proceeded to baldly assert that it has strong
prospects
of success in setting aside the decision. Carnivore
answered this assertion by rating the Applicant’s prospects of
success
on review as negligible.
37.
Finally,
when assessing where the balance lies, the Court has to address
whether it is constitutionally appropriate to grant the
interdict and
not whether an interim interdict against the Municipality is
competent. The Court has to consider the impact of a
restraint order
on the best application, operation and dissemination of public
resources.
[12]
The Applicant’s
contention that the preliminary and exorbitant construction costs
would be a loss for the Municipality and
the taxpayer is merely one
side of the coin. On the flip side are the costs of delaying the
project and the inflationary increases
that would intervene and place
the aspirations of first-time buyers qualifying to purchase housing
units in the complex beyond
their reach. The cost to the Municipality
and taxpayer and the consequent implementation of a constitutional
imperative are unquantifiable.
The Applicant makes no credible
accusations of
mala
fides
,
fraud or corruption apart from snide remarks about the Municipality
having tricks up their sleeves.
[13]
NO
ALTERNATIVE REMEDY
38.
The Applicant alleges that as the Municipality will not undertake to
halt
progress on the contract, it has no other satisfactory remedy
than a temporary interdict. Carnivore exploited the Applicant’s
proposal to submit to truncated periods to expedite the review
process through case management by asserting that it inherently
suggested a readily available and effective alternate remedy.
Carnivore suggested that the Applicant pursue the review process
without seeking interim relief.
EVALUATION
39.
There is a point when a Court has to draw the line and say enough and
no more. The Applicant submitted a non-responsive bid; not an
unsuccessful one as it contends. No amount of technical meandering
will correct that. The Applicant attempted to convince the Court that
it was unaware of the change in the preference point scoring
when an
additional addenda addressed that issue. The Applicant failed on a
critical aspect of the bid in two respects: it provided
for an
additional floor and exceeded the height restrictions. Now, the
Applicant seeks to derail a flagship development that
will promote
the transformation of the residential profile in one of the most
unequal areas of our coastline. Taking off a floor
from a design is
not as simple as lopping off a tier on a multi-tiered cake, as the
Applicant contends somewhere in its papers.
The Applicant
cannot make out a case in the founding affidavit that its appeal was
misconstrued and then change that case in reply
to state that the
appeal had been disposed of because the Respondent raised it as a
powerful defence to its application.
40.
There is an unauthorised affidavit under the hand of Marcel Minne, a
spatial
planner employed by the Municipality. Both parties responded
to the content of the affidavit. For this judgment, the Court
declines
to have regard to an unauthorised affidavit and the
responses to it. The Court had to contend with a case premised upon
the replies
provided by an official of the Municipality who was on
leave and who stressed that qualification when he replied to the
Applicant’s
requests for answers about the Municipality’s
decision. It is inexplicable how a resourced and seasoned company
like the
Applicant can conduct its affairs in this manner. Not only
did it fail to inform itself of the addenda containing critical and
material information relating to the bid, but it also built a case on
the responses of an official on leave. When it eventually
elicited an
official and comprehensive response to its appeal, misconstrued as an
inquiry, it failed to accept an outcome that
should have been
apparent to it and its personnel who prepared the design and bid
documents from the outset.
41.
The Respondent identified three premises upon which the Applicant has
founded its case. The first is that the Applicant submitted a
compliant bid. This Court has already expressed itself on the
unsustainability
of that premise. The second premise is that the
Applicant’s bid was the highest scoring if the correct scoring
was used.
This premise is as flawed as a relay team claiming they
crossed the finish line fastest and should be awarded the gold medal
even
though they dropped the baton on the first change. The third
premise is that the Municipality did not reject its bid. The response
letter of 13 May 2024 is clear. The Applicant failed dismally
to comply with the specifications. The Applicant then chose
to
downplay, if not entirely avoid, the most compelling reason for its
failure to secure the bid.
42.
The Court is cognisant of the relief sought in this application and
the
caveat that a review remains in the offing. The Applicant has
failed to make out a case for an interim interdict. It has not
identified
a
prima facie
right beyond that of a prospective
hope to prove the Municipality’s decision unlawful and invalid.
The harm it identifies
if the relief is not granted is one-sided and
abstract. It initially relies on harm to the municipality and the
taxpayer. It advanced
the contention that the longer the contract
proceeds, the less likely a Court will incline toward invalidating an
unlawful award.
The Applicant concluded that a refusal of
interdictory relief and the viability of a damages claim amounted to
prejudice that qualified
as irreparable harm. The flaw in this
reasoning is that the Applicant premises this requirement entirely on
a successful outcome
of its review application. It does identify any
harm that is current or imminent. The premise, out of necessity,
requires the Court
to pronounce on the Applicant’s prospects of
success in the review application based on the admissible evidence
presented
in this application. That prospect is poor or negligible
because the Applicant failed to comply with the design limitations.
43.
The Applicant’s failure to cogently support its contention that
the balance of convenience favours it has been addressed. The Court
has considered the effects of delaying a flagship project that
addresses the inequality in the ownership of resources in the area,
the transformation of the coastline that is largely the preserve
of
the wealthy, the inflationary increases that will occur, the
aspirations of first-time owners to secure a coveted home, and
the
prejudice to Carnivore in executing its contract. The balance of
convenience is firmly against the Applicant.
44.
The Applicant provided a credible alternate relief when it adverted
its
intention to expedite the review process. The Applicant’s
case for an interim interdict is neither strong, proper, nor clear.
In the premises, the Court declines the prayer to grant an interim
interdict.
COSTS
45.
Carnivore sought costs on a punitive scale, namely attorney and own
client
costs. It submitted that Part A of Applicant’s relief
had been subsumed by Part B, which the Applicant acknowledged. The
Applicant had been mulcted with a costs order after Part A had been
struck from the roll due to a lack of urgency earlier in the
year.
The Applicant sought to obtain the Respondent’s agreement to
withdraw Part A and reserve the costs for determination
with Part B
of the application. Carnivore insisted on the Applicant tendering its
wasted costs arising from Part A of the application.
Carnivore
enrolled the matter to determine Part A simply because the Applicant
could not agree on Carnivore’s wasted costs.
This entailed the
Court preparing for Part A and spending further time producing this
judgment, which strained scarce judicial
resources, especially as
another Judge had already read the papers and allegedly pronounced on
the Applicant’s prospects
of success. Carnivore’s prayer
for a punitive costs order is declined.
46.
Rule 67A
was inserted into the Uniform Rules of Court on 8 March 2024. It is a
relatively new Rule, and the teething problems with
its application
have surfaced despite a comprehensive treatise on the subject.
[14]
Rules 67, 69, and 70 apply to the fees that may be chargeable by
Advocates and Attorneys. Rule 67A applies to Advocates and
Attorneys who appear and do the work usually done by Advocates. An
instructing attorney who has the right of appearance does not
qualify
for fees under Rule 67A if they accompany an Advocate as the
instructing attorney. The tendency of some attorneys who accompany
Advocates to seek the scaled fees is incorrect.
47.
In terms of Rule 69(1), and unless the Court authorises otherwise,
the
fees to be included in a party and party bill of costs are
limited to one Advocate or Attorney with the right of appearance. The
permissible fees for a second Advocate or Attorney may not exceed
half of what is allowed to the first Advocate on the prescribed
scale
and as directed by the Court. The factors that a Court must consider
in awarding fees on the Rule 69 scale include the complexity
of the
matter, the value of the claim or importance of the relief sought,
and the relief sought. Scale A applies if the Court does
not indicate
a scale in the order. The fees of Advocates with Trust Accounts
differ.
48.
The default position for Advocates and Attorneys with a right of
appearance
appearing in Court is scale A. The award of fees on a
higher scale has to be properly motivated by the parties in their
written
or oral arguments, and the Court may have to direct specific
questions at them to make a final determination on Counsel’s
fees.
49.
Lead Counsel in this matter asked that both Counsel representing
Carnivore
be awarded fees on the C scale. If the rule is to be
properly interpreted, then a Court may not award Counsel's fees for
two Counsel
on the same higher scale. Apart from the Court’s
questions directed to Counsel, there were no submissions on the
matter's
complexity, the claim's value, or the importance of the
relief sought. This is an application for an interim interdict based
upon
a decision relating to tender award. There is nothing
complicated or exceptional about it. The Court is prepared to
award
Senior Counsel’s fees on the C scale, but the second
Counsel's fees are in line with an ordinary costs order, regarding
the
prescribed rule that limits the second Counsel’s fees to
half that of the first Counsel.
50.
In conclusion, the Court answers the question posed at the beginning
of
this judgment as follows:
Where lies the sense of a
relay team demanding the gold medal for it crossed the finish line
fastest but dropped the baton at the
first change? In hopeless hope,
against the opprobrium of opportunistic zeal, untampered by the
dictates of reality, and in expectation
of the impossible.
ORDER
51.
The application for an interim interdict is dismissed with costs
including
the costs of two Counsel. Senior Counsel’s fees are
to be agreed or taxed on the C scale.
Ajay
Bhoopchand
Acting
Judge of the High Court
Western
Cape Division
Cape
Town
Judgment
was handed down and delivered to the parties by e-mail on 19 November
2024
Applicant’s
Counsel: C Fehr
Instructed
by Shepstone & Wylie
Counsel
for the Second Respondents: K W Lüderitz SC, L G
Minne
Instructed
by Adams & Adams
[1]
The pass/fail
column in the table reflected “pass” for the
Applicant
and Carnivore
[2]
National Treasury
and Others v Opposition to Urban Tolling Alliance Others
2012 (6) SA
223
(CC) at 31
[3]
Setlogelo at 28
[4]
Gool v Minister of
Justice and Another
1955
(2) SA 682
(CPD). See also Molteno Brothers and Others v South African Railways
and Others
1936
AD 321
at 329 and 331
[5]
Outa at paras 41-47
[6]
Outa at para 50
[7]
Oudekraal Estates
(Pty) Ltd v City of Cape Town
2004
(6) SA 222
SCA para 36 at 246D
[8]
Chairperson:
Standing Tender Committee and Others v JFE Sapela Electronics
(Pty)
Ltd and Others (511/2004)
[2005] ZASCA 90
;
2008 (2) SA 638
(SCA) ;
[2005] 4 All SA 487
(SCA) (26 September 2005) (Sapela)
[9]
Outa at para 63,
[10]
Doctors for Life
International v Speaker of the National Assembly and Others
[2006]
ZACC 11
;
2006
(6) SA 416
(CC);
2006
(12) BCLR 1399
(CC) , International Trade Administration Commission v SCAW South
Africa (Pty) Limited
[2010]
ZACC 6
;
2012
(4) SA 618
(CC);
2010
(5) BCLR 457
(CC) (ITAC) at paras 47-55
[11]
Outa at para 65
[12]
Out at para 66, ITAC at
para 69
[13]
Outa at para 71,
[14]
Mashavha
v Enaex Africa (Pty) Ltd
[2024] ZAGPJHC
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