Case Law[2023] ZAWCHC 106South Africa
Cape Estate Properties (Pty) Ltd v George Local Municipality and Others (A166/2022) [2023] ZAWCHC 106 (16 May 2023)
Headnotes
where the appellant’s predecessor and DELplan Town and Regional Planners were present. During the meeting the subdivision of the Erf in question from the remainder of Portion 1 of Kraaibosch No 195 was discussed. In the same meeting, it was decided that DELplan execute the zoning of the sawmill land to Industrial I, as the property had been used for industrial purposes since 1943. [7]On 16 March 2001, DELpLan, the planners acting on behalf of the appellant’s predecessor, lodged a request for the zoning certificate with the Municipality for the remainder of Kraaibosch 195/1, George. DELplan, wrote a letter to the District Municipality. The letter stated: ‘ZONING: REMAINDER KRAAIBOSCH 195 / 1, GEORGE
Judgment
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## Cape Estate Properties (Pty) Ltd v George Local Municipality and Others (A166/2022) [2023] ZAWCHC 106 (16 May 2023)
Cape Estate Properties (Pty) Ltd v George Local Municipality and Others (A166/2022) [2023] ZAWCHC 106 (16 May 2023)
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Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
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FLYNOTES:
MUNICIPALITY – Zoning – Split zoning – Land
historically used for sawmill operation – Council
adopting
new zoning scheme map – Contested by owner of sawmill site –
High Court erring in treating review issue
as dispositive and
precluding it from determining declaratory relief – Split
zoning an error – Municipality split-zoned
erf without
giving notice and contrary to factual utilisation of the land –
Declaratory relief sought by appellant
was appropriate and
justified.
IN THE HIGH COURT OF
SOUTH AFRICA
(WESTERN CAPE
DIVISION, CAPE TOWN)
Case
No: A166/2022
In
the matter between:
CAPE
ESTATE PROPERTIES (PTY) LTD
Appellant
[FORMERLY
MAGNOLIA RIDGE PROPERTIES 77]
and
GEORGE
LOCAL MUNICIPALITY First Respondent
THE
APPEAL AUTHORITY, Second
Respondent
GEORGE
LOCAL MUNICIPALITY
DEPUTY
DIRECTOR PLANNING AND
SENIOR
MANAGEMENT: LAND USE MANAGEMENT
Third Respondent
## JUDGMENT DELIVERED
ELECTRONICALLY
JUDGMENT DELIVERED
ELECTRONICALLY
## 16 MAY 2023
16 MAY 2023
NZIWENI,
J
Introduction
[1]
This
is an appeal against the order and judgment of Thulare J, delivered
on 10 March 2022, dismissing the application for review.
The court a
quo
,
having dismissed the application for review, also refused leave to
appeal.
The
appeal to this Court is, with the leave of the Supreme Court of
Appeal, against the order and judgment of the court a
quo
.
[2]
The
dispute involves Cape Estates Properties Pty LTD, formerly Magnolia
Ridge Properties 77 Pty LTD] (“appellant”) and
the first
respondent, George Local Municipality (“Municipality”).
The second respondent is the Appeal Authority, George
Local
Municipality (“the Appeal Authority”), and the third
respondent is the Deputy Director Planning and Senior Manager.
The
appellant is the current owner of the sawmill site (“Erf
[....]”), which it had purchased in 2007.
[3]To
understand the controversies between the parties, it is necessary to
outline the lengthy history involved between the parties.
Factual
Background
[4]
The
facts relevant to the present appeal may briefly be summarised as
follows.
This
case concerns the zoning of a land with historic use for sawmill
operation. The subject property Erf [....] is located on the
eastern
boundary of George, between the N2-route leading to the Wilderness
and the proclaimed reserve of the future N2-route on
the eastern side
of the Kraaibosch Country Estate and Kraaibosch Manor. There was a
period when the landscape between George and
the Wilderness was
solely dominated by the forestry. Since 1943, Erf [....] had been
under forestry plantation and engaged in operation
of sawmill.
[5]
The
process leading to this appeal started in 2001. However, at the
centre of this appeal is the adoption of a new zoning scheme
map by
the George Municipal Council on 4 August 2017 (“the 2017 zoning
map”). The 2017 zoning map that came into effect
on 01
September 2017, split-zoned the extent of Erf [....] into two
categories namely, ‘Industrial Zone II’ and ‘Agricultural
Zone I’. As per the split zoning, the industrial zone measures
approximately 4,1 ha
and
the remaining extent of the Erf measures approximately 7, 1 ha. The
appellant contests the extent and the nature of the zoning
the
Municipality allocated to Erf [....], through the 2017 zoning map.
[6]As
mentioned above, the grievance of the appellant with the Municipality
stems from what started in 2001. On 13 March 2001, a
meeting was held
where the appellant’s predecessor and DELplan Town and Regional
Planners were present. During the meeting
the subdivision of the Erf
in question from the remainder of Portion 1 of Kraaibosch No 195 was
discussed. In the same meeting,
it was decided that DELplan execute
the zoning of the sawmill land to Industrial I, as the property had
been used for industrial
purposes since 1943.
[7]
On
16 March 2001, DELpLan,
the planners acting on
behalf of the appellant’s predecessor,
lodged a request
for the zoning certificate with the Municipality for the remainder of
Kraaibosch 195/1, George.
DELplan, wrote a letter
to the District Municipality.
The letter
stated:
‘
ZONING:
REMAINDER KRAAIBOSCH 195 / 1, GEORGE
Dear Marlize
1.
We hereby request a zoning certificate for the
abovementioned property.
2.
The property is situated north and adjacent to the
Kraaibosch intersection of the N2 freeway and its total size is 259,
4793 hectares.
The existing land use is
the Urbans Industries sawmill, which occupy
± 18
hectares of the property
. The rest of the property is under pine
plantations.
3.
The sawmill has been in use since 1943 and the remainder was used all
these years as a plantation. .
.’
[8]The
Municipality’s Town and Regional Planner, Ms De Bruyn,
responded to the request for the zoning certificate by way of
a
report dated 7 May 2001. In the report she recommended that the
application for the zoning for Kraaibosch 195/1 as Industrial
Zone be
granted in terms of section 14 (1) of the Land Use Planning
Ordinance, 15 of 1985 (“LUPO”), subject to conditions
imposed in terms of section 42 (1) of the Ordinance.
[9]I
consider it convenient to recite the communique:
‘
.
. .Applicant
: DELplan
on behalf of
Urban Industries
Property
Description :
Kraaibosch
195/1, Division George
Property
size
:
259,
4793 ha
Current
zoning
: Undetermined
Application
: Determination
of zoning
Annexure
: . . .
1.
AIM OF THE REPORT
The
aim of the report is to, in terms of the Land Use Planning Ordinance,
15 of 1985, seek Council approval for the recommendation
as included
in the report.
2.
COMMENTS
The
Council has been requested to issue a zoning certificate for
Kraaibosch 195/, Division George. The zoning must be determined
in
terms of Section 14 (1) of the Land Use Planning Ordinance, 15 of
1985, prior to the issuing of a zoning certificate:
“
14
(1) With effect from the date of commencement of this Ordinance all
land referred to in Section 8 shall be deemed to be zoned
in
accordance with the utilisation thereof, as determined by the Council
concerned.”
The
Directorate: Planning & Economic Development supports the zoning
as Industrial zone I (Industry) for the existing activities
(Annexure
D).
The
remainder of the property should be zoned Agricultural Zone I seeing
that it is covered with plantation.
For any extensions to the
existing sawmill, a land use application will however be required.
Future development can then be managed
in a holistic manner.
3.
. . .
RECOMMENDATION
1.
That the application for the determination of the zoning for
Kraaibosch 195/1,
Division
George as Industrial zone I (Industry) be granted in terms of Section
14 (1) of the Land Use Planning Ordinance, 15 of
1985, subject to the
conditions contained in
Annexure A
and imposed in terms of
Section 42 (1) of the Ordinance.
2.
That the above recommendation will entail an amendment to the Zoning
Map and an addition to the
Register of Departures set out in the
Annexure hereto…’
[10]The
recommendation made by the Town and Regional Planner was subject to
the following conditions:
‘
CONDITIONS
1.
The approval, granted as per recommendation, lapses should the
undermentioned conditions not to be complied
with to the satisfaction
of the Council.
2.
That a site plan be submitted showing the location of the saw mill
with all structures and the surrounding
plantations with access and
other routes.
3.
That the zoning of Kraaibosch 195/1, Division George be Industrial
Zone I (for only the existing saw
mill) with the remainder of the
property zoned Agricultural Zone I."
[11]Pursuant
to the report by the Town and Regional Planner, the District
Municipality produced the document marked as RA5. Because
the
contents of this document [RA5] are contentious between the parties,
I deem it necessary to recite them in full.
‘
APPLICATION
FOR DETERMINATION OF ZONING IN TERMS OF SECTION 14 (1) OF THE LAND
USE PLANNING ORDINANCE, 15 OF 1985: KRAAIBOSCH 195/1
Refer:
Report (GEO/195/1) dated 7 May 2001 from the Director: Planning and
Economic Development (p 16-23)
RESOLVED
1.
That the application for the determination of the zoning for
Kraaibosch 195/1, Division George
as Industrial zone I (industry) be
granted in terms of Section 14 (1) of the Land Use Planning
Ordinance, 15 of 1985, subject to
the conditions contained in
Annexure A and imposed in terms of Section 42(1) of the Ordinance.
2.
That the above recommendation will entail an amendment to the Zoning
Map and in addition to the
Register of Departure set out in the
Annexure hereto.
Besluit
. . .
Notule:
Beplanningskomiteevergadering
22 Mei 2001’
[12]On
06 June 2001, the Municipal Manager, wrote a letter (RA6) to DELplan
along the following lines:
‘
APPLICATION
FOR DETERMINATION OF ZONING: KRAAIBOSCH 195/1, DIVISION GEORGE
1.
. . .
2.
During a meeting held on 22 May 2001 Council decided that the
determination of
the zoning for Kraaibosch 195/1, division George as
Industrial zone I (for only the existing saw mill be granted in terms
of Section
14 (1) of the Land Use Planning Ordinance, Ord 15 of 1985,
subject to the conditions contained in Annexure A and imposed in
terms
of section 42 (1) 0f the Ordinance.
3.
Notwithstanding Council’s decision you have the right
of appeal
in terms of Section . . .’
[13]On
31 May 2001, John Bailey, a land surveyor on behalf of the appellant
addressed a letter to the Municipal Manager for an application
of
subdivision of portion 1
of the Farm Kraaibosch NO 195, in terms
of section 24 of the Land Use Planning Ordinance, Ord 15 of 1985
(“LUPO”).
At the time of the application, the extent of
the property was 259, 4793 ha
and its use was both for
Industrial and Agricultural purposes. The subdivision application was
to subdivide Kraaibosch 195/1
into Portion A, with extent
approximately 17.3
ha and the remainder approximately 242, 17 ha.
[14]In
the application for subdivision it was stated that the subdivision
was intended
for Industrial purposes
. The application also
indicated that
the use for which the land had been zoned was
Industrial I and Agricultural Zone I
. The application also
reveals that the owner required to separate the sawmill portion of
the property from the remainder in order
to be able to inject capital
to upgrade the factory to modern standards.
[15]On
6 August 2001, the Director of Agricultural Engineering wrote to the
Acting Municipal Manager and indicated that in general,
the
subdivision is acceptable from an agricultural point of view.
[16]As
evinced by the letter of the Director of Administration on 23 January
2002, the Development Control Committee approved the
subdivision of
Erf 195/1. The extract of minutes of 23 January 2002, under heading
‘APPLICATION’ reveal the following:
‘
It
is proposed to subdivide Kraaibosch195/1, Division George in a
Portion A (± 17, 3 ha) and a Remainder (± 242, 17
ha)
as shown in on the subdivision plan attached as annexure “B”
to the agenda.
The urban’s Saw Mill is situated on the
proposed portion A. This portion is also zoned Industrial zone I for
the activities
on the property
. . .’
[17]The
minutes under heading ‘COMMENTS DIRECTOR ADMINISTRATION’
state the following:
‘
This
Directorate supports the proposed subdivision of the Urban’s
Saw Mill from the bigger property.
The remainder of the property
is covered with plantations and therefore zoned Agricultural zone I
. . .’
[18]In
2008, the ±17 ha of Portion 1 and 279, was subsequently
reduced due to the N2 road reserve realignment, to approximately
10.96 ha. This reduced portion is Erf [....].
[19]In
April 2008, the appellant submitted a subdivision plan for the
remainder of Kraaibosh 195 Portion 1 and 279. On 16 July 2008,
the
municipality approved the subdivision plan. According to the
subdivision plan, Kraaibosch 195 Portion 1 and 279 were divided
into
four portions and Erf [....] is designated as portion F on the
subdivision plan. The zoning of Erf [....] is identified as
Industrial Zone I on the 2008 subdivision plan.
[20]It
is common cause in this matter that the 2017 zoning scheme map
designates Erf [....] with a split zoning, namely:
a)
‘Industrial Zone II’ (4.1 ha in extent); and
b)
‘Agricultural ZONE I’ (± 7ha in extent)
[21]Having said that, it
was easily discernible that a dispute between the appellant and
the Municipality arose out of the
splitting of Erf [....] into
Industrial Zone II and Agricultural Zone I. Initially the appellant
challenged the split zoning of
Erf [....] by exhausting all the
internal remedies of the Municipality.
[22]Perhaps
not surprisingly, on 14 December 2017, the appellant in terms of
section 8 (1) of the Zoning By-Law, applied to the
Municipality for
the rectification of what it termed errors on the 2017 zoning scheme
map, for Erf [....].
[23]In
response to the rectification application, on 10 January 2018, the
office of the Municipal Manager wrote the following:
‘
Your
request dated 14 December 2017 with reference number 5356, for
rectification of an alleged error on the zoning scheme map,
refers
In
Annexure E (Report by Garden Route Klein Karoo District Municipality,
dated 7 May 2001) it is noted that the then Directorate:
Planning and
Economic Development (page 1 and 2 of its report), stated that the
zoning of Industrial Zone I is only for the existing
(sawmill)
activities and for any extensions to the existing sawmill, a land use
application will be required. The remainder of
the property should be
zoned Agricultural Zone I as the property originally formed part of
Portion 1 of the Farm Kraaibosch No.
195.
Condition
2 of the approval stated that a site development plan be provided to
indicate the extent of the sawmill activities, while
Condition 3
clearly states the zoning of Kraaibosch 195/1 is Industrial Zone I
(for only existing sawmill) with the remainder of
the property zoned
Agricultural Zone I. Unfortunately, there is no proof that a site
plan was ever submitted and therefore determining
the extent of the
sawmill site is reliant on the approved building plans dated 1984 and
1990. These correspond with the aerial
photographs of 1985 and 2002.
. . The size of the disturbed area (sawmill site) were discussed in
the planner’s report and
were
no
t contested during the
appeal process.
In
terms of your Annexure H (Letter from George Municipality dated 8
February 2002), this approval is only for the subdivision of
Portion
1 of the Farm Kraaibosch No. 195 into two portions creating what is
now known as Erf [....] and Erf 25538, George. Nowhere
in this
approval letter is the zoning of these two erven stated. Further, the
Subdivision Plan (your Annexure G) states that Portion
1 as zoned
Industrial Zone I and Agricultural Zone I. A subdivision application
does not provide any zoning rights and it cannot
be assumed that the
entire area known as Erf [....], George is only zoned Industrial Zone
I.
In
consideration of the above, it is concluded that the zoning as
indicated on the zoning map is accurate and consequently, your
request cannot be considered. . .’
[24]Following
this, on 12 February 2018, the appellant, dissatisfied with the
Municipal Manager’s refusal to rectify the error
on the 2017
zoning map, appealed the [the Municipal Manager’s] decision
with the Appeal Authority. On 01 November 2018, the
Appeal Authority
dismissed the appellant’s appeal against the Municipal
Manager’s decision.
[25]The
Appeal Authority dismissed the appeal on basis that the determination
of the industrial zoning in 2001 was conditional on
the submission of
a site plan showing Erf [....]’s location and its structures.
The Municipality contended that it was necessary
to have regard to
the approved plans, aerial photographs and other municipal records in
order to determine the extent of the sawmill
operations in 1986 when
LUPO came into force.
[26]With
the appellant dissatisfied
with the dismissal of the Appeal Authority, the review litigation
then ensued before the court a
quo
on
the basis that the Appeal Authority misconceived the nature of the
enquiry it was supposed to have undertaken. Amongst others,
the
Appellant maintained that the Municipality could not, in the process
of compiling its integrated 2017 zoning scheme map, rezone
a portion
of the sawmill site from ‘Industrial Zone I’ to
Agricultural Zone I’ by reducing the extent of the
sawmill site
having an industrial zoning without notifying the landowner and
following due process
.
[27]As
such, the appellant approached the court a
quo
seeking the
following
relief:
a)
An order reviewing and setting aside the decision of the third
respondent;
b)
An order substituting the decision of the third respondent;
c)
An order declaring that:
i.the entire extent of
Erf [....], George is zoned ‘Industrial Zone II’; and
ii.the zoning of Erf
[....], George is ‘Industrial Zone II’ without any
restrictions as to the use of the property to
sawmill purposes only.
From
the abovementioned it is clear that the nature of the relief sought
by the appellant during the hearing in the court
a
quo
was two
- pronged. Firstly, the motion sought a declaratory order be granted.
Secondly, it sought a relief for the decision of
the Municipality be
set aside and reviewed.
The
findings of the court a quo
[28]During
the hearing of the application, the court a
quo
made it
crystal clear in its judgment that it identified the underlying issue
between the parties as being, whether the split zoning
of Erf [....]
into ‘Industrial Zone II’ and ‘Agricultural Zone I’
by the Municipality was an error. To
this end, the court a
quo
also pointed out that what it recognised as the underlying issue was
actually the true issue in this case.
[29]The
court a
quo
further found that the declaratory relief sought
hinged on the determination of the ‘true issue’. Hence,
it [the court
a
quo
] made it clear that it did not view the
review relief sought as a question entirely separate from the
question of granting the
declaratory order.
[30]
Importantly,
it is common cause in this matter that the court a
quo
did not make a finding concerning the declaratory relief which was
sought by the appellant
.
[31]The
court a
quo
stated the following regarding the subdivision of
2002, in paragraphs 22-23 of its judgment:
‘
[22]
The Council did not indicate relevant zonings in relation to the
subdivision in granting the application for subdivision
as envisaged
in section 25 of the Ordinance. In fairness to the Municipality, it
was not considering applications for rezoning
and for subdivision
simultaneously. The Municipality had just considered and confirmed
the zoning of the sawmill, and the application
before the
Municipality, as shown by clause 6 of the application, was for the
sawmill, which was an ‘industrial zone’,
to be separated
from the remainder of the property, which was the pine plantation, to
enable the upgrading of the sawmill with
modern machinery.
[23]
There was no application, simultaneous with the subdivision
application, for the change of zoning of any part of
Kraaibosch195/1
to be considered and pronounced upon by Council. The remainder of
Kraaibosch 195/1, outside the sawmill, was an
Agricultural zone I.’
Issues
[32]There
are two particular questions of direct relevance in the present
appeal. They are whether:
1.
the court a
quo
erred in not determining the merits of the
declaratory relief which was sought by the appellant; and whether
2.
the court a
quo
was correct in finding that the 2017 split
zoning was not an error.
Analysis
[33]
An
appeal is based on the record of the lower court’s proceedings.
Hence, it settled that an appeal is not a re-hearing of
the case.
The
grounds upon which the appellate court will interfere with the
decision of the court a
quo
have been frequently stated. It is trite law that the appeal court
may not interfere with the decision of the court a
quo
unless it is vitiated by material misdirection or is shown by record
to be wrong.
[34]
Mr
Hathorn SC, on behalf of the appellant, firstly contended that the
court a
quo
erred when it found that the declaratory order
cannot be granted without reviewing the decision
of the Municipality. During the hearing of this appeal it was
asserted on behalf
of the appellant that, before the court a
quo
,
besides the review application; the appellant also sought clarity
about its [the appellant’s] zoning rights.
[35]
The
appellant asserts, as it did in the court a
quo
, that the
extent and the nature of the industrial zoning of Erf [....] were
distinct issues from the review application. Accordingly,
it is the
appellant’s contention that the declaratory relief is entirely
independent from the review relief. Mr Hathorn further
asserts that
the declaratory relief is no less significant than
the review relief.
Additionally, it is the
appellant’s contention that during the hearing of the
application, the Municipality never argued that
the declaratory
relief was contingent on the success of the review; hence the court a
quo
should have determined the issue.
[36]
It
was further contended on behalf of the appellant that the entire
extent of Erf [....] is 11, 1875 ha and it should be zoned
‘Industrial Zone II’, in the 2017 zoning map. The
appellant further asserts that,
had the review
application succeeded, the industrial zoning would apply to 11
hectares, whereas, due to the split zoning, the industrial
zoning
right applies to
only
4.1 hectares. Thus, it is the appellant’s contention that it is
entitled to a determination on whether the industrial
uses permitted
on Erf [....] are restricted to the operation of a sawmill and
whether the extent of the industrial zoning is limited
to 4.1
hectares of Erf [....] or extends to the entire property.
[37]In
response to the above assertions, the Municipality before the court a
quo
argued
that if the declaratory relief is granted, it would lead to severe
conflict with George Spatial Development Framework. In
this appeal,
it is stated in the Municipality’s heads of argument that the
application for the declarator is an abuse of
the court process.
Thus, the Municipality contends that rezoning cannot be
obtained under the guise of a declaration of rights.
[38]It
is the appellant’s contention that in terms of a decision taken
by the Garden Route Klein Karoo District Municipality
in 2001, read
together with a subsequent decision of the Municipality in 2002, the
entire Erf [....] was zoned industrial.
[39]It
is common cause between the parties that the Municipality approved a
subdivision plan application which demarcated the rest
of Erf [....]
and separated it from the remainder of the property zoned
‘agricultural’.
[40]The
cornerstone of the submissions of Mr Hathorn on behalf of the
Appellant is that the decisions of 2001 and 2002 are
binding
until set aside.
Accordingly,
Mr Hathorn submitted that, by splitting the zones, the Municipality
acted in an arbitrary manner and has restricted
the extent of Erf [....].
[41]On
the other hand, the Municipality asserts that it denies that the
entire Erf [....] is zoned Industrial I. It is averred in
the
answering affidavit that an application for subdivision is not a
rezoning or zoning application. It is further stated in the
answering
affidavit that zoning or land use rights are allocated and decided
only by definite decision - making structures, no
other decision
makers. It is further maintained on behalf of the Municipality that
new zoning occurs through a prescribed application
process, with full
public participation.
The
Declarator
Was
the declaratory relief dependent on the outcome of the review
application?
[42]
The appellant contends that the declaratory relief sought turns on
the decision made by the District
Municipality on 22 May 2001 [RA5].
The Appellant further contends that the aforesaid decision which
states that the determination
of the zoning for Kraaibosch 195/1,
Division George as Industrial Zone I be granted in terms of section
14 of LUPO; entails two
primary issues. Firstly, whether the decision
was made by Planning Committee or the Council and secondly, what was
the legal effect
of the Acting Municipal Manager’s letter?
[43]I
wish to emphasise at the outset that it is provided in section 21 (1)
( c ) of the
Superior Courts Act, 10 of 2013
, that a High Court may
grant a declaratory order:
‘
In
its discretion, and at the insistence of any interested person, to
enquire into and determine any existing, future or contingent
right
or obligation, notwithstanding that such person cannot claim any
relief consequential upon the determination.’
[44]
Regarding the declaratory relief, the court a
quo
was required
to enquire as to whether the appellant had made out a proper case for
the exercise of its discretion to grant the
declaratory relief
sought.
[45]
In
Cordiant
Trading CC v Daimler Chrysler Financial Service (Pty) Ltd
[1]
,
the SCA stated the following pertaining to the enquiry of whether or
not a declaratory order should be granted or not.
‘
.
. . The two-stage approach under the subsection consists of the
following. During the first leg of the enquiry, the court must
be
satisfied that the applicant has an interest in an 'existing, future
or contingent right or obligation'. At this stage, the
focus is only
upon establishing that the necessary conditions precedent for the
existence of the court's discretion exists. If
the court is satisfied
that the existence of such condition has been provided, it has to
exercise discretion by deciding either
to refuse or grant the order
sought. The consideration of whether or not to grant the order
constitutes the second leg of the enquiry’.
[46]
It is clear from the above authorities that the purpose of
declaratory relief can never be overstated.
It can be an important
tool in litigation.
Inter
alia
,
it settles uncertainty in litigants’ relations and provides
clarification of litigants’ rights and their obligations.
As
such, it provides definite determination that defines and preserves
the correct state of affairs. That said, it must also be
acknowledged
that courts must decide matters that have a practical effect. To this
end the Constitutional Court in Director
-General
Department of Home Affairs & another v Mukhamadiva
[2]
stated the following:
‘
Long
before our constitutional dispensation, the principle has always been
clear: courts should not decide matters that are abstract
or academic
and which do not have any practical effect either on the parties
before the court or the public at large. In
Geldenhuys
Innes
CJ stated, in the context of the granting of declaratory orders where
no rights have been infringed, that courts of
law exist to settle
concrete controversies and actual infringements of rights, and not to
pronounce upon abstract questions, or
give advice on differing
contentions’.
[47]
On the matter at hand, the extent and nature of Erf [....] was a live
and relevant controversy
before the court a
quo
. The review of
the record reveals that the declaratory relief sought, presented its
own subject matter. Whereas, the review application
pertained to
whether the administrative action was just, reasonable and lawful; as
previously mentioned, the court a
quo
was sought to resolve
two distinct issues.
[48]
The appellant’s counsel is correct in
arguing that the issue in question had been fully ventilated and no
good reason had
been suggested by the Municipality as to why it
should not be determined.
As mentioned above, the declaratory
claim in the context of this case did not stand or fall with the
outcome of the review application;
it was entirely independent from
the review relief. To hold otherwise, would be to defy the plain
meaning of the appellant’s
notice of motion and the purpose of
declaratory relief. It is my finding that, even if the court a
quo
was of the view that the review relief stood to be dismissed; in the
circumstances of this case, it erred in treating the review
issue as
a dispositive issue that precluded it from determining the
declaratory relief.
The court a
quo
had to decide the
appropriateness of the declaratory relief sought upon the facts of
this matter; irrespective of its conclusion
as to the review
application issue. Thus, it must be accepted, as correctly pointed
out on behalf of the appellant, the court a
quo
’s
dismissal of the review application did not render the declaratory
claim moot. In these circumstances, the Municipality’s
contention to the effect that the declaratory application is an abuse
of the court process, has no merit.
[49]
It is my conclusion that even if the court a
quo
was of the
view that the review relief stood to be dismissed; in the
circumstances of this case, it erred in treating the review
issue as
a dispositive issue that precluded it from determining the
declaratory relief.
[50]
Accordingly, a crucial question as to the extent and the nature of
the zoning of Erf [....] still
remains to be resolved. In light of
the aforegoing conclusion, I will deal with the issue of the
declarator first.
Is the RA5 document
the decision of the Council of the Municipality?
[51]
It will be recalled that the RA5 document actually states,
inter
alia,
that, the application for determination of the zoning of
Kraaibosch 195/1, as Industrial Zone I be granted in terms of
section
14.
[52]
The Municipality characterises RA5 as an agenda or minute of the
Planning Committee. According
to the Municipality, the Planning
Committee never made any decision or resolution. It follows, so the
argument continues, that
the Planning Committee only made a
recommendation to the decision making authority. Additionally, the
Municipality further asserts
that RA5 was never communicated to the
appellant’s predecessors and that only the decision by Council,
[RA6] was communicated
to the appellant. The record makes it quite
clear that the Municipality identifies RA6 as being the Council’s
decision.
[53]
Regarding whether RA5 is a decision or a recommendation, the
Municipality on the one hand, states
in its answering affidavit that
it [RA5] is a decision of the Council, while on the other hand, the
very same Municipality characterises
it as merely a recommendation of
the Planning Committee. It is quite telling that the Municipality is
presenting contradictory
positions when it comes to the aspect as to
whether RA5 is a decision of a Planning Committee or not.
[54]
I do not consider the decision making structures within
municipalities as being as complex as
the Municipality in this case
would like everyone to believe. It is common knowledge that the
Council comprises of municipal councillors
and that the Council is
the highest decision making body of the municipality. Authority to
make decisions may also be delegated
to a committee, an individual
councillor or municipal officials appointed by the Council. Council
committees perform duties that
are delegated to them by the Council.
See
section 32
of Municipal Structures Act 117 of 1998. Additionally,
as will become apparent later, from the papers of this matter, that
the
municipal system of assigning powers and functions was followed,
which eventually culminated in RA5.
[55]
I hasten to mention that
the court a
quo
found that the decision of the Planning Committee of the Municipality
[RA5] which was made on 22 May 2001 was the decision of the
Council
of the Municipality. The court
a quo
cannot be faulted in this regard.
[56]
A careful study of the preceding step by step events culminating in
RA5, evince that this particular
document [RA5] is indeed a decision
rather than a recommendation. This I say because, RA4 which precedes
RA5, clearly states that
the aim of the report [RA4] is to seek
Council approval for the recommendation as included in the report
[RA4]. RA4 utilises the
word recommendation, as it gave input to the
Council. Here, there is a readily discernible indication that RA4
[the recommendation]
was a precursor to RA5 [a resolution], and was a
key element in the decision making.
[57]
RA5, clearly states the Planning Committee
meeting resolved
that the determination of the zoning for Kraaibosch 195/1 be granted.
It is also quite apparent that the Afrikaans version also
used the
term ‘
Besluit
’. The wording of RA5 denotes the
adoption of RA4 recommendation. It seems clear to me that the
Planning Committee expressed
its mind on the matter. Thus, RA5
provides for the disposition of the recommendation given in RA4. It
is quite obvious that in
the instant case the word resolution has the
same status as a decision.
[58]
The Planning Committee through RA5, directed a particular action, by
taking a resolution that
Kraaibosch 195/1 should be zoned
‘Industrial’. It follows, therefore, that the resolution
of the Planning Committee
determined the nature and the extent of the
zoning of Kraaibosch 195/1.
To hold otherwise would have far reaching implications;
it would even result in voiding other decisions which were taken by
the
Planning Committee.
[59]
Furthermore, a bare perusal of section 14 of LUPO evinces
categorically that with effect from
the date of commencement of LUPO,
all land referred to in section 8 shall be deemed to be zoned in
accordance with the utilisation
thereof, as determined by the Council
concerned. Nothing in this section suggests a cumbersome procedure.
The zoning in terms of
section 14 is simply a use related zoning.
[60]
There is not even a scintilla of evidence to support the theory of
the Municipality that another
body other than the Planning Committee
also sat on the 22 May 2001. The appellant cannot be faulted for
submitting that if that
was
the case one would
have expected the Municipality to be able to produce some evidence or
minutes recording that a Council meeting
took place on that day
within hours of the Planning Committee meeting.
All that said,
it is difficult to understand the Municipality’s stance.
[61]
Furthermore, the Municipality poses a paradox, in part, a
self-defeating, confused and somewhat convoluted argument
when it states that RA6 conveys the 2001 decision by Council taken on
22 May 2001; and that the only decision by Council communicated
to
the appellant was RA6. First and foremost, the Municipality admits
that the Council took a decision on 22 May 2001 and that
RA6 conveys
the Council’s decision. Then the Municipality wants to
characterise a letter [RA6] as the actual decision of
the Council.
There is no merit in the Municipality’s argument that RA6 is
the Council’s decision. In my view, RA6 is
nothing more than a
letter by an official of the municipal Council communicating
resolution of Council that was taken by the Planning
Committee. There
is no reason for giving RA6 the construction for which the
Municipality contends.
[62]
The submissions made by the Municipality in this
regard are erratically remote from the evidence contained in the
record. The evidence
in the record reveals that the Planning
Committee meeting
approved the application for a rezoning for
a specific use, which is Industrial Zone I (Industry). In the present
case,
there is nothing from the side of the
Municipality or the record to gainsay this.
[63]
Moreover, as evidenced by the letter of the acting municipal
manager set forth above
[RA6], the acting
municipal manager expressly advised DELplan that during the meeting
held on
22 May 2001
,
the Council
decided that the determination of zoning for Kraaibosch 195/1 as
Industrial Zone I, for only existing saw mill be granted.
It
is stated unambiguously in
RA6 that the
determination of zoning was the decision of the Council. In essence,
RA6 categorically classifies the decision of the
Planning Committee
as the decision of the Council.
[64]
RA6 puts paid to any challenge that RA5 is not a
decision of the Council. The uncontroverted evidence contained in the
record indicates
that there is no factual basis to hold otherwise. It
is a matter of common sense.
[65]
For that matter, paragraph 3 of RA6 makes it immediately apparent
that the decision of the Council
is even subject to appeal. Unlike a
decision or a determination, a recommendation is not appealable as it
is not final and binding.
The mere fact that it is stated that the
decision is subject to appeal, evinces that it is a final decision.
[66]
Importantly, the appellant contends correctly so, in my view,
that the Municipality explicitly conceded that the decision of
the
District Municipality
is RA5. This contention is born by the fact
that the Municipality in its answering affidavit states the
following:
‘
The
dispute centres around the existence or not of an alleged industrial
1 zoning of the entire Erf [....], George.
The decision of the
District Municipality is RA5
’. (Emphasis added)
[67]
In response, the
Municipality submits in this
regard that the appellant is
opportunistically
latching on to what they refer to as a slip of the tongue.
The
Municipality further asserts that RA5 in the above extract should
have read RA6. A party cannot make its case on argument. In
motion
proceedings, parties stand and fall on the allegations made on their
papers.
[68]
Additionally, the appellant is correct to state that there is no
consistency in the Municipality’s
case. Clearly, under certain
facts the Municipality adapted its argument and version as
circumstances suited it. Once again, when
the Development Committee
resolved to approve the plans of subdivision at a meeting held on 23
January 2002; the Municipality in
the answering affidavit
acknowledged that, that is the decision of the Development Committee.
Yet in its heads of argument, it
somersaults and states that the
municipal manager’s letter was the actual decision of the
committee. I get the distinct impression
that, when the Municipality
realises a stumbling block in its pleadings, it [the Municipality]
seeks to withdraw it by means of
argument.
[69]
It is quite evident in this aspect that the Municipality is trying to
avoid the consequences
of the decision taken on 22 May 2001 with
technicalities. The Municipality’s points seem to be rather an
obstacle put up
as afterthoughts, than a genuine issue. Little wonder
the position of the Municipality in this regard is flip flopping.
The
appellant cannot be faulted for submitting that litigation does not
work like that. A party cannot make its case up as it goes
along.
[70]
In the circumstances,
viewed in the light
of the above considerations,
I have great
difficulty in seeing how there could be a challenge to the fact that
RA5 is a decision of the Council. A proper construction
of RA5
specifically mentions that it is a resolution taken by the Planning
Committee meeting on 22 May 2001. Importantly, the documentary
evidence does not support the Municipality stance that RA5 is not a
decision of the Council. Flowing from the aforegoing, I hold
as the
court a
quo
did
that the decision of the Planning Committee was the decision
of the Council. The ineluctable conclusion in all the circumstances
is that the determination of the zoning for Kraaibosch 195/1 in
terms of section 14, as Industrial Zone I (Industry), was
clearly
determined by resolution of the Planning Committee meeting
held on the 22 May 2001. The
corollary of this is
that Erf [....] was
improperly split zoned.
[71]
Another source of contention between the parties is the
limited uses of Erf [....] to sawmill activities.
Did
the 2001 zoning determination restrict industrial uses permitted on
the Erf [....] to sawmill activities only?
[72]
According to the appellant, the core issue in this particular
controversy is whether the
District Municipality
had the power to restrict the industrial uses permitted on the Erf
[....] to the operation of a sawmill when
it made the zoning
determination in 2001.
Thus, the primary question under this
heading is whether the Council, in 2001, intended to limit the uses
permitted on the erf
to sawmill activities as explicitly mentioned in
RA6.
[73]
The Municipality contends that because RA6
mentions that the zoning allocated was Industrial Zone I (for only
the existing sawmill);
the 2021 zoning determination, consequently,
restricted the industrial uses on the land to sawmill activities
only.
The Municipality further asserts that it is not clear
why Industrial Zone I was allocated by the District Municipality.
According
to the Municipality it appears that the determination was
invalid.
[
74
]
The papers reveal that the term ‘
for only the
existing saw mill
’ appears to have been added only in the
letter written by the Acting Municipal Manager [RA6]; when he
communicated the contents
of RA5 to DELplan. Irrespective of the
nature and extent of the zoning for Kraaibosch 195/1, as determined
by the RA5; RA6 pertinently
mentions that the determination of the
zoning for Kraaibosch 195/1, division George as Industrial zone I, is
only for the existing
saw mill.
[7
5
]
It was argued on behalf of the appellant in this appeal that the
respondent never identified the
source of that authority to limit the
use of the sawmill. It was also the appellant’s assertion that
the Municipality stance
in this regard is contradictory.
[76]
According to Mr Hathorn the Council powers were limited by section
14, read together with the regulations,
and all that the Council was
empowered to do was to allocate the appropriate category in the
zoning scheme in the second stage
after having conducted the first
stage inquiry into the utilisation of the land. The appellant
contends that there was never a
zoning category ‘Industrial
Zone 1, limited to sawmill use only’ and if the District
Municipality did purport to limit
the powers of the appellant to
operate only a sawmill on the property and not permit other
industrial uses then it was acting unlawfully.
[77]
Counsel for the Municipality Mr Du Toit, advanced a contrary position
when he contended that
the Council in 2001 had the authority to limit
the use of the property to sawmill purposes only. This is so, it
was argued,
it is common practice to limit the zoning to a
specific activity.
[78]
The appellant notes, however, that the addition of the contentious
term in RA6 unnecessarily restricts
the uses and the extent that
were bestowed upon the Erf [....] by RA5.
[79]
First and foremost, the appellant correctly points out that
there
is no dispute
between the parties that
there is no category in the zoning scheme regulations that provides
for use as a sawmill.
Thus, the appellant contends that the
discrepancy in RA6 is merely an administrative error, inadvertently
occasioned by the acting
municipal manager.
[80]
In this case, it is further common cause between the parties that the
zoning for Kraaibosch 195/1,
Division George, was determined as
Industrial Zone I in terms of section 14 with certain conditions.
Section 14 explicitly states
that the Council possess all of the
powers to determine the zoning of all the lands. If one compares RA5,
and RA6 [municipal manager’s
letter], there is an apparent
inconsistency between the two documents; regarding the limited use of
the Erf [....]. The limited
use of the erf does not feature on RA5.
Plainly, the very language of RA5 signals that the drafters of the
RA5 document did not
intend such a result, as reflected by RA6.
[81]
As mentioned above, the Municipality seeks to characterise RA6 as the
Council’s decision. The municipal manager is an
administrator. A municipal manager is merely a high ranking municipal
official.
As previously mentioned, in terms of section 14, decision
making is the quintessential function of the Council and not that of
the municipal manager.
[82]
There is a clear distinction between a municipal manager and the
Council. In this case, the Municipality
cannot simply seek to amplify
and expand the powers of a public official without relying on any
authority. Particularly, powers
which are explicitly conferred to the
Council by statute. The Municipality is deliberate in its
characterisation of the municipal
manager’s letter as the
Council’s decision. Obviously, the Municipality seeks to avoid
to have the restriction featuring
in RA6, declared a clerical error.
[83]
More importantly, however, the record does not reflect in any manner
that the municipal manager
actually had powers to amend the
resolution of the Council. Equally, there is nothing in the record to
demonstrate that the powers
of the Council were delegated to the
municipal manager to amend the resolution of the Council. The
municipal manager was simply
given a task to notify the appellant
about the decision of the Council.
The
Municipality's construction is untenable and self-serving; because
it would mean that it is amplifying what is stated in
the resolution.
So far as the contention that the 2001 determination restricted
industrial uses permitted on the Erf [....] to
sawmill activities
only, is concerned, I cannot accept it as correct. The
contention in my view is superficial, unsubstantiated
and thus it is
not a genuine issue. The evidence evinces that the Erf [....] was
entirely zoned as industrial by the Council. This
is also buttressed
by the subdivision plan which was approved in 2008, some years later
after 2001. The discrepancy which appears
in the letter of the
municipal manager, singlehandedly revoked the zoning of Erf [....] as
Industrial Zone and confined it [Erf
[....]] to sawmill activities.
This was drastic measure with far reaching implications.
[84]
Mhlantla J, in
Plover's
Nest Investment v De years later Haan
[3]
,
states the following regarding the effect of failure of official of
municipal council to communicate resolution of council correctly:
‘
[24]
. . .
The argument loses sight of the fact that the
President was the repository of power in terms of the Constitution:
only he could
take such a decision and he was required to make it
public. In this matter Geyer was not the repository of power. The
council was.
Geyer simply miscommunicated its decision . . . The
municipal council did not err when it made its decision. The only
issue is
the effect of Geyer’s failure to communicate the
decision correctly . . .
[26]
Kuzwayo v Representative of the Executor in the Estate of the late
Masilela
is pertinent authority on the distinction between
clerical and administrative actions. In that case, a delegate of the
Director-General
for the Department of Housing issued a declaration
that Kuzwayo had been granted the right of ownership in respect of a
site that
had already been allocated to Masilela. It was not in
dispute that Masilela had paid for the site and had built a house on
it:
he and his family had lived in the house for 13 years prior to
his death. In determining the question, whether the act of the
official
amounted to a decision in terms of the PAJA, Lewis JA for
this court held (para 28):
‘
The
only administrative decision that could and should have been made was
that of the Director-General or his delegate, after the
inquiry
mandated by s 2 of the Conversion Act [81 of 1988]. And that was the
only decision that could be subject to review. The
act of signing the
declaration and the deed of transfer were but clerical acts that
would have followed on a decision. Not every
act of an official
amounts to administrative action that is reviewable under PAJA or
otherwise.’
[27]
In this case, it is common cause that Geyer’s action was an
obvious mistake: whoever had typed the letter had not turned
over to
the page that contained the rest of the conditions including that
prohibiting building in the servitude area. One need
merely
scrutinise the letter to see that Geyer had not made any decision . .
.
In
my view, it cannot be said that Geyer made any decision when regard
is had to the introductory part of the letter. He did not
evaluate
the council’s decision but merely conveyed it. The act of
writing the letter was a notification that followed on
a decision. It
has to be borne in mind that he had a duty to notify Plover’s
Nest of the municipal council decision and the
conditions imposed and
that he was not vested with any authority to take a decision. It is
clear that Geyer did not intend to do
anything other than communicate
the decision of the council. He performed a clerical act and in the
process committed an error.
The communication of the decision had
nothing to do with the decision – only the notification was
defective.
His error cannot be imputed to the council and elevated
as the decision of council
. (Emphasis added.) It follows that the
clerical error does not constitute administrative action that would
substitute the resolution
of the municipality.’
[85]
Gleaning from the record, there is no justification for the
restriction placed upon Erf [....].
As such the restriction has no
value. I am also of the view that the facts of this case, as far as
RA6 is concerned, are on all
fours with the
Plove
r (
supra
)
matter. Accordingly, I conclude that the action of the municipal
manager of inserting the above mentioned term when he communicated
the resolution of the Council was a clerical error.
Review
[86]
The judicial review of administrative action brought by the
appellant before the court
a
quo
stems from the Promotion of
Administrative Justice Act 3 of 2000 (“PAJA”).
Administrative actions are subject to review
in terms of section 6
(1). The administrative actions that fall within the purview of PAJA,
are set out in section 6(2). It is
pertinent to note, that sections 6
(1) and 6 (2) of PAJA provide as follows:
“
Judicial
review of administrative action
6.
(1) Any person may institute proceedings in a court or a tribunal for
the judicial review of an administrative action.
(2)
A court or tribunal has the power to judicially review an
administrative action if— (a) the administrator who took it—
(i) was not authorised to do so by the empowering provision;
(ii)
acted under a delegation of power which was not authorised by the
empowering provision; or
(iii)
was biased or reasonably suspected of bias;
(b)
a mandatory and material procedure or condition prescribed by an
empowering provision was not complied with; (c) the action
was
procedurally unfair;
(d)
the action was materially influenced by an error of law;
(e
) the action was taken—
(i)
for a reason not authorised by the empowering provision;
(ii)
for an ulterior purpose or motive;
(iii)
because irrelevant considerations were taken into account or relevant
considerations were not considered;
(iv)
because of the unauthorised or unwarranted dictates of another person
or body;
(v)
in bad faith; or
(vi)
arbitrarily or capriciously;
(f)
the action itself—
(i)
contravenes a law or is not authorised by the empowering provision;
or
(ii)
is not rationally connected to –
(aa) the purpose for
which it was taken;
(bb) the purpose of the
empowering provision;
(cc) the information
before the administrator; or
(dd) the reasons given
for it by the administrator;
(g) the action concerned
consists of a failure to take a decision;
(h)
the exercise of the power or the performance of the function
authorised by tie empowering provision, in pursuance of which the
administrative action was purportedly taken, is so unreasonable that
no reasonable person could have so exercised the power or
performed
the function; or
(i)
the action is otherwise unconstitutional or unlawful . . .”
In
considering the merits of the review, I find it necessary to recap
some of the facts already set out above. The gravamen of the
appellant, as far as the review is concerned is that, when it [the
appellant] invoked the provisions of section 8 of the George
Integrated Zoning Scheme By-Law, promulgated on 01 September 2017
[Zoning Scheme By-Law], the Municipality by engaging in a factual
enquiry into the extent of the sawmill operations on the property in
1986 (through examining evidence such as aerial photographs
and
building plans) they exceeded their powers under section 8 of the
By-Law. It is further the appellant’s contention that
the
Municipality incorrectly interpreted section 14 (1) of LUPO.
[87]
The appellant states that when they requested the zoning certificate
in 2001, DELplan planners
were not applying for the land to be zoned
but merely requested a zoning certificate, in terms of section 14. It
is asserted in
the founding affidavit that reference to ‘the
application’ and ‘the approval’ are misnomers as a
section
14 LUPO zoning determination is not an approval of an
application. Additionally, according to the affidavit of Mr. G. C.
Underwood,
a practising town planner (“Mr Underwood”),
the 2008 subdivision plan was not a rezoning application or decision.
Mr
Underwood further states that the subdivision plan was to reflect
changes to the cadastral boundaries in the vicinity of the sawmill
caused by the realignment of the future N2 Freeway Reserve. This
evidence by Mr Underwood was not challenged.
[88]
In terms of the Zoning Scheme By-Law, the location, boundaries and
extent of each use zone is
depicted on the zoning scheme map. Section
6 of the Zoning Scheme By-Law states:
‘
that,
the zoning scheme map depicts—
(a)
the zoning of land in accordance with the use zone in which the land
is located . .
[89]
Then section 6 (4) of the Zoning Scheme By-Law provides as follows:
“
(4)
The official version of the zoning scheme map is
the final
authority
as to the status of the current zoning classification
of land in the Municipality
and may only be amended as provided
for in this By-law and the Planning By-law.”
(emphasis
added)
[90]
The zoning map identifies the permitted use of land. It may boost or
restrict land uses. The
zoning of the land depicted on the zoning map
is binding unless it is amended or corrected. Incorrect zoning can
have far reaching
implications, for instance, it may affect the
development of the land and can also be discriminatory.
[91]
It is not in dispute in this matter that
the
property had been used for industrial purposes since 1943.
In
this case, it is significant to remind ourselves that prior to the
adoption of the 2017 zoning map, a formal zoning determination
was
previously done in respect of Erf [....].
The appellant did
obtain a certificate of zoning and subdivision of Erf [....] in 2001
and 2002, respectively. Given the manner
in which Erf [....] had
always been used; in 2001, the Erf was zoned as an industrial
zone. As a result, prior to the adoption
of the 2017 zoning map, the
appellant was permitted to use Erf [....] for industrial purposes, as
such use was specifically allowed
in terms of the zoning of the land.
[92]
The parties agree that the Municipality could not attach conditions
in a determination in terms
of section 14.
As
mentioned earlier, the Municipality concedes that the District
Municipality did not have the power in relation to a section 14(1)
determination to impose conditions in terms of section 42 of LUPO and
that those conditions are only applicable to an application.
The Municipality states, however, that the conditions stated in the
2001 decision cannot be ignored and they stand until they are
set
aside by review.
[93]
The court a
quo
on this issue held as follows:
‘
It
was the failure of the applicant’s predecessor to submit a site
plan which caused the Municipality to consider its other
records like
building plans, aerial photographs and other records as part of its
case of what the extent of the sawmill operations
were. The historic
records were relevant information that the Municipality had in
respect of the disputed use of the land and in
particular to answer
what the Municipality meant by sawmill.”
I
find myself in respectful disagreement with this finding.
Importantly, it will be recalled that in this case the Municipality
conceded that the conditions attached to RA5 and RA8 were unlawful.
Surely, the Municipality cannot rely on conditions which were
imposed
unlawfully.
Furthermore,
it
is apparent from the evidence that
both
the 2001 and 2002 Municipality determinations were in full conformity
with the provisions of section 14 of LUPO.
Additionally,
section 14(1) does not involve the granting of new land use rights
but it only serves to confirm existing land use
rights. See
Hangklip
Environmental Action Group v MEC Environmental Affairs
[4]
2007. Thus, the 2001 section 14 determination had nothing to do with
aerial photographs and building plans of the sawmill.
The
fact is that section 14 is concerned with the confirmation of the use
rights, based on factual use of the land. Section 14(1)
of LUPO
provides that all land referred to in section 8
shall be deemed
to be zoned in accordance
with the utilisation thereof
as
determined by the Council concerned.
In
Hangklip
case,
Thring J, stated the following at 72E-G:
‘
It is not in
dispute, and I think correctly so, that what is envisaged by sec.
14(1) of LUPO is, in the first place, a process by
means of which the
local authority concerned “determine(s)” (Afrikaans text:
“bepaal”) the “utilisation”
of the land
referred to as at the 1st July, 1986. “Utilisation”, in
relation to land, is defined in sec. 2 of LUPO
as “the use of
land for a purpose or the improvement of land, and ‘utilise’
has a corresponding meaning”.
This process, whilst not
described or specified in detail in the Ordinance or the Scheme
Regulations, entails in my
view an enquiry of a
purely
factual
nature into the purpose for and manner in which
the land referred to was actually being used as at the 1st July,
1986
: the process
does not seem to me to require or permit the
exercise of a discretion
by the local authority,
or the
expression of an opinion
, or an exercise in speculation. Once the
local authority has factually “determined” the
“utilisation” of
the land as at the relevant date in
terms of sec. 14(1),
it “grants” a zoning “permitting
of the utilisation of the land concerned
” which is “the
most restrictive zoning” in terms of sec. 14(3). This is a
separate and distinct process which
may call for the exercise of a
discretion by the local authority.’ Emphasis added.
[94]
The land use history of Erf [....] alone, let alone the
decisions between 2001 and 2008, makes it abundantly clear that the
entire
Erf [....] had been for a long period been utilised for
industrial purposes. The industrial uses of Erf [....] precedes the
2001
and 2008 municipal decisions, hence, the appellant utilised the
provisions of section 14 of LUPO for the zoning of the Erf.
For
that matter, it is seems apparent from the judgment of the court a
quo
in paragraphs 14- 15, that it recognised that the sawmill
is an industry where logs were sawn by machine.
[95]
A careful consideration of the record leads to the conclusion that
before 2001, Erf [....] was
generally used and known as a sawmill,
which qualifies as an industrial use. The appellant’s
predecessors then decided to
formalise and officialise the zoning
category of Erf [....] by invoking the provisions of section 14. I am
in agreement with the
court a
quo’s
finding to the
effect that the Municipality had just considered and confirmed the
zoning of the sawmill. Likewise its [the court
a
quo
’s]
finding that the granting of the subdivision did not amount the
change of zone is correct. For that matter, it is common
cause in
this matter that appellant never filed a zone change application.
[96]
It is clear from the evidence that Erf [....] was used for
industrial purposes
since 1943. Clearly, in 2001 the factual
utilisation of Erf [....] was established beyond doubt and the
Municipality took cognisance
of it. No doubt, the Council’s
2001 decision was supported by the established facts.
It
should be emphasised that Erf [....] did not have a zoning
designation before 2001 and it was only designated in 2001 as
Industrial
Zone I. Sawmills are not zoning classification but a
particular aspect of industrial uses. Because the appellant was
operating
sawmill – activities on the land, it was designated
with an industrial zoning. The land was thus zoned in accordance with
its actual permitted use.
Notwithstanding
the above facts, with
the advent of the 2017
zoning scheme map; the Municipality, simply split zoned Erf [....],
without giving the appellant any notice.
The submission on behalf of
the appellant is quite correct that the split zoning lacks the force
of law. The Council cannot
impose conditions upon subdivision
determination or section 14 zoning that are not authorized by law.
Clearly,
under section 14 of LUPO the Council only needs to determine what the
land was utilised for.
In a similar vein, the C
ouncil
does not need to
look beyond the present utilisation of
the land in determining its [the land’s] zoning classification.
Thus, in terms
of section 14, the present use of a
property is greatly relevant in the determination of its proper
classification
and is determinative. In my view, in 2001 the Council
correctly assessed the factual background that was relevant
to
determining the proper classification of Erf
[....]. Hence, the appellant challenged the accuracy of the 2017
zoning
map.
[97]
It is clear from the aforesaid that the split zoning was an error as
it did not correctly indicate
the zoning and the extent of the
Industrial Zone II. Equally, it was impermissible for the
Municipality to rely on failure to comply
with the conditions stated
in RA5 and RA8 to justify split zoning without notice or hearing.
Similarly, the Municipality cannot
rely on the evidence which was not
used in 2001 and 2002 to split zone Erf [....]; moreso, without
affording the appellant a hearing.
The
Appeal Authority in the assessment of the appeal was supposed to have
commenced from the presumption that the Council’s
2001
determination was correct unless an error was demonstrated.
If there was no error in the primary 2001 classification, then
Municipality could not set aside that classification merely because
conditions were not complied with, or by embarking on a fresh
enquiry.
The reasoning upon which the Appeal
Authority’s conclusions rest are
materially unsound and
based on a flawed approach.
[98]
In the circumstances, the assertion that the Municipality
unilaterally made a fresh zoning determination
by enquiring about the
extent of the sawmill activities on the site between 1984 and 2002
cannot be faulted. Evidently, the Municipality
totally disregarded
what happened in 2001 and 2002 and simply took into account aerial
photographs and building plans to determine
the extent of the
industrial zoning. Plainly, by doing so, the Municipality held the
appellant's appeal to a much higher standard
than dictated by section
14 of LUPO. As a result the Municipality significantly reduced the
extent of the Industrial Zone II.
[99]
Accordingly, the appellant is quite correct in stating the following:
‘
When
adopting a new zoning scheme and the map under LUPA, a municipality
is required to consider the zoning rights in existence
prior to
adoption of the new scheme and convert those rights to its new
integrated zoning scheme without adversely affecting the
existing
rights.’
According
to section 8 of the Municipality Zoning By-Law, if the zoning of a
land unit is incorrectly indicated on the zoning map,
the owner of an
affected land may submit an application for the error to be
corrected. I deem it expedient to recite the entire
contents of
section 8. The section provides as follows:
‘
RECTIFICATION
OF ERRORS ON ZONING SCHEME MAP
8.
(1) If the zoning of a land unit is incorrectly indicated on the
zoning map, the owner of an affected land unit may submit an
application to the Municipality to correct the error.
(2)
An owner contemplated in subsection (1) must apply to the
Municipality in the form determined by the Municipality and must—
(a)
submit written proof of the lawful land use rights; and
(b)
indicate the suitable zoning which should be allocated.
(3)
The onus of proving that the zoning is incorrectly indicated on the
zoning scheme map is on the owner.
(4)
The owner is exempted from paying application.
(5)
If the zoning of a land unit is incorrectly indicated on the zoning
map, the Municipality must amend the zoning map.
(6)
If the correct zoning of a land unit cannot be ascertained from the
information submitted to the Municipality or the records
of the
Municipality, a zoning determination in terms of the By law on
Municipal Land Use Planning should be processed and the outcome
of
such zoning determination must be recorded on the zoning scheme map.’
[100]
The appellant in this case did exactly that. The appellant was not
lodging a dispute but simply wanted a patent
error to be rectified.
Section 8 by its very nature is a procedure to correct a mapping
error. During the section 8 application
the question which was before
the Municipality was whether there was anything erroneous about the
split zoning of Erf [....] which
is depicted on the 2017 zoning map.
However,
the Municipality, instead of assessing the error by looking at what
the land use rights were immediately before the adoption
of the 2017
zoning map; the Municipality simply reaffirmed the fresh zoning of
Erf [....] by conducting a new enquiry. The Municipality
was wrong to
act as a fact finder or draw conclusions of facts from the facts
which were irrelevant during the taking of primary
decision.
[101]
The approach of the Municipality in this regard leads to one
conclusion only, namely, it [the Municipality]
considered
irrelevant evidence to determine whether the 2017 zoning map was
correct. Instead of considering the totality of the
evidence
considered in 2001 and 2002 to determine whether an error was
committed.
[102]
In this case, it is reasonable to infer from the conduct of the
Municipality that it deliberately chose not to
recognise any of the
evidence offered by the appellant in support of its allegation of an
error. There is no evidence to show that
the split zoning was ever
informed by the original decision of 2001.
[103]
I am fortified in that conclusion by what was stated in
East
Cape Game Properties (Pty) LTD v Dudley Grayame Brown and Others
[5]
,
when the court stated the following:
‘
Where
an official act has been executed, as is the case in the present
matter, the maxim
omnia praesumuntur rite esse acta
finds
application. It is presumed in such circumstances that any condition
precedent to the validity of the official act has been
complied with
and that the official (or body of officials) was qualified to perform
the act in question and complied with the necessary
formalities . . .
Once the applicant has established, as I have found that it has, that
the property is zoned “agricultural
1”
then it is
presumed that every necessary preceding step was complied with before
the zoning was granted
.’ Emphasis added.
It
must therefore be assumed that when the functionaries of the
Municipality, when they considered the 2001 and 2002 determinations,
made the factual enquiry as envisaged by section 14 and complied with
every necessary preceding step.
[104]
If regard is had to the maxim
omnia praesumuntur rite esse acta,
it becomes evident that the court a
quo
erred when it stated
the following:
‘
What
was troubling further was that the applicant did not hesitate to
speculate and elevate its irrelevant opinion to a fact. It
stated as
a fact that the evidence such as aerial photographs and building
plans of the sawmill were not before the decision maker
in 2001 or
when error was considered What is known, is the totality of the
evidential material that was considered by the functionaries
to make
the recommendation in 2001. . . What we also know, is that when the
applicant cried ‘error’ on the consequential
decision of
2017 which were informed by the decision of 2001, the Municipal
functionaries made reference to the aerial photographs
and the
building plans as part of the portfolio of evidence available, upon
which the 2001 decision was explained . . .’
Conclusion
[105] It is
apparent from what I have set out above, that I have already
concluded that the court a
quo
erred in failing to deal with
the merits of the declaratory relief; and that it [court a
quo
]
erred in holding that the 2017 split zoning was not an error. In so
far as the review is concerned, clearly, the Municipality
acted
capriciously and arbitrary when it considered evidence which was not
relevant at the time when the 2001 and 2002 determination
were done.
Had the Municipality considered what happened between 2001 and 2002,
it would have realised that the split zoning of
Erf [....] was in
indeed an error.
[106]
Plainly, the Municipality committed an error in refusing to rectify
the split zoning. Therefore, the decision
of the Appeal Authority
stands to be set aside.
[107]
Viewed in the light of the above considerations, the declaratory
relief sought by the appellant is an appropriate
relief and it is
justified.
Costs
[108]
The appellant has been successful. There is no reason why it should
not be awarded the costs it seeks. I am also
satisfied that this case
warranted the employment of two counsel.
[109]
In the circumstances, the following order is made:
1.
It is hereby declared that;
1.1
The entire extent of Erf [....], George is
zoned ‘Industrial Zone II’; and
1.2
The zoning of Erf [....], George is
‘Industrial Zone II’ without any restrictions as to the
use of the property to sawmill
purposes only.
2.
The decision of the Second Respondent
[Appeal Authority] taken on 1 November 2018, dismissing the
appellant’s appeal is hereby
reviewed and set aside in its
entirety and replaced with the following order:
2.1
‘
The appeal by Magnolia
Properties 77 (Pty) Ltd against the refusal on 10 January 2018 by the
Municipality’s Deputy Director
Planning and Senior Manager Land
Use Management, of the Applicant’s requests for rectification
of an error on the Municipality’
Zoning Scheme Map relating to
Erf [....]application is upheld.’
3.
The First Respondent is ordered to pay the
following costs:
3.1
The cost of this appeal, including the
costs of two counsel.
3.2
The cost of the application in the court a
quo, including the costs of two counsel;
3.3
The appellant’s costs of the
application for leave to appeal in the court a
quo
,
including the costs of two counsel;
3.4
The Appellant’s costs of the
application for leave to appeal in the Supreme Court of Appeal,
including the costs of two counsel.
C.N. NZIWENI
JUDGE
OF THE HIGH COURT
I AGREE AND IT IS SO
ORDERED.
T NDITA
JUDGE OF THE HIGH
COURT
I
AGREE
CM FORTUIN
JUDGE OF THE HIGH
COURT
Appearances
Counsel
for the Appellant:
Adv
Hathorn SC
Instructed
by
Du
Plessis Hofmeyr Malan Inc.
Johan
Du Plessis
C/O
Van Der Spuy and Partners
Natasha
Du Preez
Counsel
for the First Respondents
Adv
Du Toit
Instructed
by
Raubenheimers
Inc.
C/O
De Jongh Attorneys
E
Smith
C/O
Welgemoed Attorneys
Smith
De Jongh
[1]
2005 (6) SA 205
(SCA) at para 18
[2]
2014 (3) BCLR 306
(CC) at para 33
[3]
(20590/2014)
[2015] ZASCA 193
(30 November 2015) at paragraphs 24,
26- 27
[4]
(6) SA 65 (C), on page 81 G-H
[5]
An unreported judgment, Eastern Cape Division, Port Elizabeth
(Eksteen J ), case number 2715/2016 delivered on 29 August
2017.
sino noindex
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