Case Law[2023] ZAWCHC 127South Africa
SOHCO Property Investments NPC v Stemmett and Others (12553/2020) [2023] ZAWCHC 127 (16 May 2023)
High Court of South Africa (Western Cape Division)
16 May 2023
Judgment
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## SOHCO Property Investments NPC v Stemmett and Others (12553/2020) [2023] ZAWCHC 127 (16 May 2023)
SOHCO Property Investments NPC v Stemmett and Others (12553/2020) [2023] ZAWCHC 127 (16 May 2023)
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sino date 16 May 2023
SAFLII
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IN THE HIGH COURT OF
SOUTH AFRICA
(WESTERN CAPE DIVISION
CAPE TOWN)
Case number:
12553/2020
In the matter between:
SOHCO
PROPERTY INVESTMENTS NPC
Applicant
and
MANFRED
STEMMETT
First
respondent
TASNEEM
STEMMETT
Second
respondent
MPHUMZI
MAGOBIANE
Third
respondent
LINDEKA
MKHIZWANA
Fourth
respondent
JOSEPH
FOUTIE
Fifth
respondent
NATALIE
FOUTIE
Sixth
respondent
CHRISTOPHER
VAN DER WESTHUIZEN
Seventh
respondent
MECAYLA
LUCRICIA KRUGER
Eighth
respondent
RAEES
HENDRICKS
Ninth
respondent
KICO
DORCAS MANEEDI
Tenth
respondent
DANIELLE
PHILANDER
Eleventh
respondent
TIMOTHY
ISAACS
Twelfth
respondent
THEMBEKA
PRINCESS DINGILE
Thirteenth
respondent
NOLUTHANDO
DINGILE
Fourteenth
respondent
LINDENI
MSOMI
Fifteenth
respondent
LUMKA
NDLELA
Sixteenth
respondent
DEBORAH
MULLINS
Seventeenth
respondent
MORNE
MINTOOR
Eighteenth
respondent
LINDSAY
MINTOOR
Nineteenth
respondent
RICARDO
JACOBS
Twentieth
respondent
CARMEN
JACOBS
Twenty-first
respondent
KATRIENA
KROTZ
Twenty-second
respondent
LEISHA
TITUS
Twenty-third
respondent
ANICA
LAMBERT
Twenty-fourth
respondent
PEDRO
LOPES NOTA
Twenty-fifth
respondent
SHANE
JOBE
Twenty-sixth
respondent
ASHLENE
JOBE
Twenty-seventh
respondent
TRACEY-LEE
McLAGLEN
Twenty-eighth
respondent
TASNEEM
RYLANDS
Twenty-ninth
respondent
MOGAMAT
TAARIQ EDRIES
Thirtieth
respondent
LIONEL
COTTLE
Thirty-first
respondent
RACHEL
NEETHLING
Thirty-second
respondent
ROZELLE
GABRIEL
Thirty-third
respondent
MITSIE
ASAKUMA
Thirty-fourth
respondent
SHIRLEY
VAN WICHT
Thirty-fifth
respondent
THE
CITY OF CAPE TOWN
Thirty-sixth
respondent
REASONS DELIVERED ON
16 MAY 2023
VAN ZYL AJ:
Introduction
1. On
21 September 2022 I granted an order for the eviction of the
Respondents from
the rental units established on the premises known
as Erven 1[...]5 and 1[...]3, Cape Town, constituting the
development
at the Steenberg Project, Military Road, Steenberg,
Western Cape (“the Steenberg Project” or “the
project”).
2. The
order directed as follows:
3. The
first to seventh, tenth to fifteenth, seventeenth to twenty-eighth,
and thirty-first
to thirty-fifth respondents, together with all other
persons holding under them (collectively “the respondents”),
are
to vacate any and all, and in particular but not limited to the
following units situated on the immovable property known as Erven
1[...]5 and 1[...]3, Cape Town, constituting the
development at the Steenberg Project, Military Road, Steenberg,
Western
Cape (“the Steenberg Project”):
3.1.
MANFRED
STEMMETT, the first respondent, from unit 1[…]2;
3.2.
TASNEEM
STEMMETT, the second respondent, from unit 1[…]2;
3.3.
MPHUMZI
MAGOBIANE, the third respondent, from unit 2[...]3;
3.4.
LIDEKA
MKHIZWANA, the fourth respondent, from unit 2[...]3;
3.5.
JOSEPH FOUTIE,
the fifth respondent, from unit 4[...]4;
3.6.
NATALIE
FOUTIE, the sixth respondent, from unit 4[...]4;
3.7.
CHRISTOPHER
VAN DER WESTHUIZEN, the seventh respondent, from unit 4[...]0;
3.8.
KICO DORCAS
MANEEDI, the tenth respondent, from unit 3[...]2;
3.9.
DANIELLE
PHILANDER, the eleventh respondent, from unit 1[...]8;
3.10.
TIMOTHY
ISAACS, the twelfth respondent, from unit 1[...]8;
3.11.
THEMBEKA
PRINCESS DINGILE, the thirteenth respondent, from unit 5[…]4;
3.12.
NOLUTHANDO
DINGILE, the fourteenth respondent, from unit 4[…]2;
3.13.
LINDENI MSOMI,
the fifteenth respondent, from unit 1[…]3;
3.14.
DEBORAH
MULLINS, the seventeenth respondent, from unit 2[…];
3.15.
MORNE MINTOOR,
the eighteenth respondent, from unit 1[…];
3.16.
LINDSAY
MINTOOR, the nineteenth respondent, from unit 1[…];
3.17.
RICARDO
JACOBS, the twentieth respondent, from unit 1[…]6;
3.18.
CARMEN JACOBS,
the twenty-first respondent, from unit 1[…]6;
3.19.
KATRIENA
KROTZ, the twenty-second respondent, from unit 1[…]7;
3.20.
LEISHA TITUS,
the twenty-third respondent, from unit 7[…];
3.21.
ANICA LAMBERT,
the twenty-fourth respondent, from unit 5[…]8;
3.22.
PEDRO LOPES
NOTA, the twenty-fifth respondent, from unit 4[…]0;
3.23.
SHANE JOBE,
the twenty-sixth respondent, from unit 3[…];
3.24.
ASHLENE JOBE,
the twenty-seventh respondent, from unit 3[…];
3.25.
TRACEY-LEE
McLAGLEN, the twenty-eighth respondent, from unit 3[…]5;
3.26.
LIONEL COTTLE,
the thirty-first respondent, from unit 4[…];
3.27.
RACHEL
NEETHLING, the thirty-second respondent, from unit 1[…]5;
3.28.
ROZELLE
GABRIEL, the thirty-third respondent, from unit 1[…]5;
3.29.
MITSIE
ASAKUMA, the thirty-fourth respondent, from unit 4[…]2; and
3.30.
SHIRLEY VAN
WICHT, the thirty-fifth respondent, from unit 6[…]5.
4. The
respondents are to vacate the Steenberg Project by no later than
17:00 on
Friday, 21 October 2022
.
5. In
the event of the respondents failing to vacate the Steenberg Project
on
Friday, 21 October 2022
, the Sheriff of this Court is
directed and authorized:
5.1.
to evict the respondents from the Steenberg Project within
5
(five) days after such date
, and
5.2.
to deliver all the keys of the relevant units to the applicant’s
attorneys,
Foxcroft & Associates, care of Springer-Nel Attorneys,
3
rd
Floor, 71 Loop Street, Cape Town.
6. The
Sheriff is authorized and directed to employ the services of the
South African
Police Service to assist him, if it is necessary to do
so, to evict the respondents from the Steenberg Project.
7. Those
respondents who vacate the Steenberg Project in terms of paragraphs 1
and
2 above, or who are evicted in terms of paragraph 3 above, are
directed to remove any of their possessions, materials and/or
structures
from the verge or road reserve in Military Road,
Steenberg, adjacent to the Steenberg Project, on or before
Friday,
4 November 2022
, failing which the respondents will be deemed to
have abandoned such possessions, materials and/or structures, and the
Sheriff
is directed thereafter to remove them and dispose of them as
he deems fit.
8. The
thirty-sixth respondent (“the City”) is directed:
8.1.
to make emergency housing available at the emergency housing
settlement situated
at Bosasa, Mfuleni, to any of the respondents who
request access thereto and who have in writing accepted the written
offer made
therefor to them by the City, such accommodation to be
provided by no later than
5 October 2022
,
8.2.
alternatively
, and at the relevant respondents’
election, to provide them with emergency housing kits on the City’s
standard conditions.
9.
The
respondents are to pay the costs of this application (including the
costs consequent upon the employment of two counsel) jointly
and
severally, the one paying, the other to be absolved.
10.
The order was granted pursuant to an application brought by the
Applicant (“SOHCO”) under section 4(1) of the Prevention
of Illegal Eviction and Unlawful Occupation of Land Act 19
of 1998
(“PIE”). The application was brought under section
4(6) of PIE in relation to certain of the Respondents,
and in terms
of section 4(7) in relation to others, depending on whether the
relevant Respondent had resided in the unit on an
unlawful basis for
more than 6 months.
11.
The provisions of section 4(2) of PIE were duly complied with.
12.
I proceed to set out the reasons for the grant of the order.
For the sake of convenience, when reference is
made to the "Respondents", reference is made to the
Respondents other than
the City of Cape Town. The latter will
be referred to as "the
City".
Background
13.
SOHCO is a company registered not for gain
in terms of section 21 of the Companies Act, 1973. The
Steenberg Project, in which
the Respondents occupy units, is a social
housing project of approximately 700 dwellings. SOHCO is a
tenant of the City pursuant
to a long-term notarial lease agreement
concluded in relation to the land upon which the project has been
established.
14.
SOHCO contends that the Respondents are in
unlawful occupation of the premises, and that it would be just and
equitable that they
be ejected therefrom.
15.
The application has been opposed by all but
one of the respondents, and a number of different attorneys of record
have, throughout
the convoluted history of the litigation, been
appointed by them. For the sake of clarity in the discussion that
follows on the
merits of the application, the representation of the
various respondents as at the outset of the hearing is summarized as
follows:
15.1.
The First, Second, Fifth, Sixth, Seventh,
Tenth, Eleventh, Twelfth, Thirteenth, Fourteenth, Fifteenth,
Eighteenth, Nineteenth, TwentySecond,
Thirty-Second and
Thirty-Third Respondents are represented by Marlon Shevelew &
Associates.
15.2.
The Twenty-Fourth Respondent is represented
by September
&
Associates.
15.3.
The Third, Fourth, Seventeenth, Twentieth,
Twenty-First, TwentyThird, Twenty-Fifth, Twenty-Sixth,
Twenty-Seventh, Thirty-First
and Thirty-Fourth Respondents are
represented by PA Mdanjelwa Attorneys.
15.4.
The Thirty-Fifth Respondent initially
represented herself, but is now represented by Sylvester Vogel
Attorneys.
15.5.
The Twenty-Eighth Respondent appears not to
have opposed the application, and is not represented.
15.6.
The Eighth, Ninth, Sixteenth, Twenty-Ninth
and Thirtieth Respondents have moved out of the units previously
occupied by them subsequent
to the launch of the application.
The application has thus been withdrawn as
against them.
15.7.
The Court was advised at the hearing of the
application that the Fifth Respondent has also vacated the relevant
unit.
15.8.
The City has not appointed attorneys of
record.
16.
At the hearing of the application, it was
indicated that some of the Respondents were no longer represented. I
shall nevertheless
continue to categorise the Respondents by the
attorneys who had represented them in the course of the litigation up
to the date
of the hearing, and particularly at the time of the
delivery of their answering affidavits, so as to ensure that their
defences
are properly set out.
17.
I have mentioned that this application has
a convoluted history, and eventually required seven judicial case
management meetings
to progress it to a hearing. Various
interlocutory applications were brought and finalised in the period
leading up to the
hearing. The detail is set out in SOHCO’s
heads of argument. I do not intend to repeat it.
18.
When
considering whether to grant an eviction order, the rights of both
the applicant and the occupant must be taken into account,
and
a
balance achieved. The Constitutional Court
[1]
stated the matter as follows:
"Of
course
a
property
owner cannot be expected to provide free housing for the homeless on
its property for an indefinite period. But in certain
circumstances
an owner may have to be somewhat patient, and accept that the right
to occupation may be temporarily restricted,
as
Blue
Moonlight's situation in this
case
has
already illustrated. An owner's right to use and enjoy property at
common law can be limited in the process of the justice and
equity
enquiry mandated by
PIE."
19.
The grant or refusal of an application for
eviction in terms of PIE (once the applicant’s
locus
standi
has been determined) is
predicated on a threefold enquiry:
19.1.
First, it is determined whether the
occupier has any extant right in law to occupy the property, that is,
is the occupier an unlawful
occupier? If he or she has such a
right, then the application must be refused.
19.2.
Second, it is determined whether it is just
and equitable that the occupier be evicted.
19.3.
Third,
and if it is held that it is just and equitable that the occupier be
evicted, the terms and conditions of such eviction must
be
determined.
[2]
SOHCO’s case
for the eviction of the Respondents
SOHCO’s
locus
standi
20.
The
onus to prove
locus
standi
for the institution of these proceedings is on SOHCO.
[3]
#
# 21.
Section 4(1) of PIE provides that “[n]otwithstanding
anything to the contrary contained in any law or the common law, the
provisions of this section apply to proceedings
by an owner or person
in charge of land for the eviction of an unlawful occupier”.
21.
Section 4(1) of PIE provides that “
[n]otwithstanding
anything to the contrary contained in any law or the common law, the
provisions of this section apply to proceedings
by an owner or person
in charge of land for the eviction of an unlawful occupier
”.
#
# 22.
“Owner”, insofar as is relevant, is defined in PIE as
“the registered owner of land”. “Person
in charge”, in turn, means “a person who has or
at the relevant time had legal authority to give permission to a
person to enter or reside upon the land in
question”.
22.
“Owner”, insofar as is relevant, is defined in PIE as
“
the registered owner of land
”. “Person
in charge”, in turn, means “
a person who has or
at the relevant time had legal authority to give permission to a
person to enter or reside upon the land in
question
”.
23.
SOHCO's primary purpose is the development
of quality affordable residential property (for rental) for lower
income households.
Steenberg Project is one such development. SOHCO
was accredited as a social housing institution pursuant to the
provisions of the
Social Housing Act 16
2008.
24.
SOHCO had concluded a Lease Agreement with
the City (the registered owner of the land upon which the project has
been built), at
a time when the land was undeveloped. Funding for the
construction of the immovable properties on the land was provided
from National
Government, with a provincial top-up, as well as
significant loan funding sourced and utilised by SOHCO itself.
25.
SOHCO
was thus
entitled to launch the application, by reason of it being the person
in charge of the Steenberg Project, as envisaged in
section 1
of
PIE. In addition, by reason of the Lease Agreement concluded
between SOHCO and the City, SOHCO is the person who at all
relevant
times had the necessary legal authority to give permission to persons
to enter upon or reside upon the land in question.
The Respondents are in
unlawful occupation
26.
The question arises whether the respondents
are in fact “unlawful occupiers” in terms of PIE, in
other words, persons
“
who occup[y]
land without the express or tacit consent of the owner or person in
charge, or without any other right in law to occupy
such land, …”
27.
In
Wormald
NO and others v Kambule
[4]
the Supreme Court of Appeal held
[5]
that
an
“
owner
is in law entitled to possession of his or her property and to an
ejectment order against a person who unlawfully occupies
the
property except if that right is limited by the Constitution, another
statute, a contract or on some or other legal basis ...
In terms of s
26(3) of the Constitution, from which PIE partly derives ..., 'no one
may be evicted from their home without an order
of court made after
consideration of all the relevant circumstances'. PIE therefore
requires a party seeking to evict another from
land to prove not only
that he or she owns such land and that the other party occupies it
unlawfully, but also that he or she has
complied with the procedural
provisions and that on a consideration of all the relevant
circumstances (and, according to the Brisley case,
to
qualify as relevant the circumstances must be legally relevant), an
eviction order is 'just and equitable'
.”
28.
Each of the First to Thirty-Fifth
Respondents concluded, at various times, a Lease Agreement with SOHCO
in respect of the relevant
units in the Steenberg Project.
29.
The Respondents subsequently fell into
arrears with the payment of rentals, and in each instance, as
provided for in the individual
written Lease Agreements, SOHCO (as
landlord) dispatched a letter of demand (or Breach Notice) to the
relevant Respondents (as
tenants), demanding that the arrear rental
be settled within a period of 20 business days, and warning that if
the arrear rental
was not paid, SOHCO would terminate the lease
without further notice.
30.
Thereafter SOHCO
sent
a Notice of Cancellation to the relevant Respondents on the ground
that they had not settled the arrear rentals. SOHCO
informed
each respondent in question that the Lease Agreement had been
terminated as a result of such breach, and that they were
required to
vacate the relevant unit.
31.
Despite this correspondence, each of the
Respondents failed to vacate the unit occupied by them, and remained
in occupation. In
the circumstances, so SOHCO contended, each of the
Respondents was in unlawful occupation.
32.
Given the number of Respondents, SOHCO
usefully set out the particulars regarding the lease concluded
between with each tenant,
the breach by reason of failure to pay
rental, the Breach Notice and failure to rectify the breach, and the
subsequent cancellation
in a schedule attached hereto as annexure
“
A
”.
33.
The schedule sets out the personal
particulars of each of the Respondents, insofar as SOHCO is aware
thereof (and which is dealt
with individually in respect of each
Respondent in the founding affidavit), as also any additional
information or allegations regarding
those persons as they appear
either in the answering affidavits delivered or the City’s
questionnaires completed by the various
occupants, and submitted to
the City, insofar as those had been made available to SOHCO.
The information set out on the questionnaires
of the Respondents
represented by Attorney PA Mdanjelwa is not reflected, as those
Respondents initially refused to complete the
questionnaires.
They only did so at the eleventh hour. It is clear from the
schedule that the Respondents are a group
of persons, including
children, with varying levels of income and assets.
34.
Against this background, the various
defences raised by the Respondents are considered.
The defences by the
Respondents represented by Marlon Shevelew & Associates
35.
The defences raised by these Respondents
are, briefly, as follows:
35.1.
The matter should be referred to mediation
pursuant to the provisions of section 7 of PIE, such mediation to be
undertaken by the
MEC for Human Settlements (Western Cape), and the
proceedings should be stayed pending such mediation.
35.2.
SOHCO
lacks the
necessary
locus standi
for
the launch of the application (the TwentyFourth Respondent
relies on the same ground); and
35.3.
The Respondents are not in unlawful
occupation of the units. In particular, they deny that the Notice of
Breach and/or cancellation
were delivered to the various Respondents,
as alleged in the founding papers, and thus deny that a case has been
made out for the
eviction of the Respondents.
36.
These defences have no merit.
37.
The issue of SOHCO’s
locus
standi
has already been touched upon
,
but shall, together with the issue of
mediation, be addressed in more detail below in relation to the
defences raised by the Twenty-Fourth
Respondent.
38.
The allegation that the Lease Agreements
were not lawfully cancelled because notice was not given of the
breach, or of cancellation,
is incorrect. It appears from a
consideration of the affidavits filed of record that the notices in
respect of these Respondents
were delivered as follows:
38.1.
The First and Second Respondents received a
Breach Notice on 24 April 2018, delivered by security personnel and
by SMS. The
Notice of Cancellation, in respect of both the
First and Second Respondents, was served on them by the Sheriff and a
Return of
Service has been
filed
of record.
38.2.
The Fifth and Sixth Respondents received
the Breach Notice, which was delivered to them by security personnel
(and followed up by
an SMS) on 12 June 2019. The Notice of
Cancellation was, on 19 August 2019, hand-delivered by SOHCO's
security personnel, but the
Fifth and Sixth Respondents refused to
sign acknowledgement of receipt.
38.3.
The Seventh Respondent received delivery of
a Breach Notice in person and by hand, on 20 March 2019, by SOHCO's
security personnel,
and he signed for it. On 19 August 2019 the
Notice of Cancellation was hand-delivered to him.
38.4.
The Tenth Respondent received delivery of a
Breach Notice on
10
May 2019, and a Notice of Cancellation on 15 July 2019.
38.5.
The Eleventh and Twelfth Respondents
received a Breach Notice, delivered by security personnel to those
Respondents in person.
The notice was signed for on 27 March
2019. On 15 May 2019 the Sheriff served a Notice of
Cancellation on both the Eleventh
and Twelfth Respondents, as appears
from the Returns of Service filed of record.
38.6.
The Thirteenth Respondent was handed a
Breach Notice on 19 March 2019 by SOHCO's security personnel, but
refused to sign for it.
On 7 May 2019, the Sheriff served a
Notice of Cancellation on
her.
38.7.
The Fourteenth Respondent received delivery
of the Breach Notice on 12 June 2019 from SOHCO's security personnel,
and the Notice
of Cancellation was delivered to her by SOHCO's
security personnel on 20 August
2019.
38.8.
The Fifteenth Respondent received service
of the Breach Notice from the Sheriff on 27 February 2020. On
22 May 2020 the Sheriff
served the Notice of Cancellation on her.
38.9.
The Eighteenth and Nineteenth Respondents
received delivery of the Breach Notices from the Sheriff on 27
February 2020 and 30 June
2020 respectively, and Notices of
Cancellation from the Sheriff on 22 May 2020 and 3 August 2020
respectively.
38.10.
The Thirty-Second Respondent received the
Breach Notice on 2 June 2020, served by the Sheriff. On 6 July 2020
the Sheriff served
the Notice of Cancellation.
38.11.
Similarly, the Thirty-Third Respondent’s
the Notice of Breach was served on her by the Sheriff, and the Notice
of Cancellation
was served by the Sheriff on 6 July 2020.
39.
At the hearing, and in the course of
argument, these Respondents again contended that the leases were not
lawfully cancelled on
the basis that the notices of breach were not
received by them. The Respondents initially relied exclusively on
the contention that there was a dispute of
fact in respect of each of them, namely that they had not received
the Notices of Breach
(and in certain cases also not the Notices of
Cancellation), and accordingly that the leases had not been validly
cancelled.
The schedule (annexure “
A
”
hereto) handed up by SOHCO however show, on a case by case basis,
that this contention was not sustainable.
40.
A further argument raised in the course of
the hearing was that the leases were not lawfully cancelled on the
basis that the Notices
of Breach only gave 20 business days' notice
to remedy the breach, and not a period of one calendar month.
The point was
never raised in the papers. The Respondents
sought to contend that SOHCO was required to comply with
section 5(5)
of the
Rental Housing Act 50 of 1999
. SOHCO was required in the
Notice of Breach to give one calendar month's written notice to
remedy the breach, and not the 20 business
days' notice that was
referred to in the notices that were delivered to the Respondents.
Accordingly, so they contended, the Notices
of Cancellation were not
effective in cancelling the lease agreements, and
the Respondents are not
in
unlawful
occupation of
the
premises.
41.
In considering this issue, one must
consider the nature of the leases in question. All are written
leases, concluded for a period
of 12 months with a fixed commencement
and
terminating
date. The leases are all in one of two
formats. The first is an earlier sample, drafted before the
commencement of the
Consumer Protection Act 68 of 2008
. It
contains the following relevant
clauses:
41.1.
A clause 1.4
to
the effect that:
"Should the lease
be extended beyond the termination date referred to above by
agreement between the parties, continued occupation
of the premises
by the lessee shall be on the basis of a monthly lease agreement; and
subject otherwise to the same terms and conditions
herein contained,
and terminable by either party giving unto the other one calendar
month's notice in writing and the said notice
may only be given so as
to reach the LESSOR or the LESSEE as the case may be, by not later
than 12 NOON on the FIRST day of any
calendar month, failing which
such notice shall be null and void."
41.2.
A clause 10.1 to the effect that should the
rental not be paid on due date, the Lessor shall have right to cancel
this lease without
any
notice
whatsoever.
42.
The second and later sample, amended to
cater for the application of the provisions of the
Consumer
Protection Act, contains
the following relevant
clauses:
42.1.
A clause 1.4.1 that provides
that: "…
On
the expiry of the said period of 1 (one) year, if the LESSEE does not
vacate the premises, the LEASE shall continue to operate
on
a
month to month basis, both parties being
obliged and entitled to give the other 1 (one) calendar month's
notice of termination of
the LEASE during the further period,
unless the LEASE is extended by agreement between
the
parties."
42.2.
To the existing clause 10.1 was added a
clause that made provision for
the
Consumer Protection Act in
the
following terms:
"Should the
Consumer Protection Act No 68 of 2008
apply to the LEASE, the LESSOR
shall have the
right
to
act
in
the case of
a
breach
of the LEASE by the LESSEE as stipulated above in as far as such
terms are consistent with the Act, or otherwise, if the
Act applies
and should the LESSEE fail to pay any rent on its due
date,........the LESSOR shall
have
the
right
to
cancel this
LEASE
and
to
eject or have ejected
from
the
premises the
LESSEE
or
any
other
person occupying the premises, after
having given the LESSEE due notice in terms of Section 14(2)(b)(ii)
of Act 68 of 2008 and to
claim such amounts from the
LESSEE
as
provided
for
in
Section
14(3)
of
the
said
Act."
43.
In relation to all of the Respondents, the
initial period of one year had passed, and no
further written agreement was concluded.
Accordingly, all the leases continued to operate on a month-on-month
basis, as provided
for in the written lease agreements, and subject
to the terms contained therein.
44.
Section 14(2)(b)(ii)
of the
Consumer
Protection Act provides
that:
"(ii) the supplier may cancel the
agreement 20 business days after giving
written notice to the consumer of
a
material failure by the consumer to
comply with the agreement, unless the consumer has rectified the
failure within that time."
45.
SOPHCO gave 20 business days' notice to all
the Respondents to remedy the breach, which is the notice period
envisaged in
section 14(2)(b)(ii)(bb)
of the
Consumer Protection Act
46.
>
In
Makah
v Magic Vending (Pty) Ltd
[6]
the
Full Court of this Division, in considering a breach clause similar
to the first part of clause 10.1, concluded that the notice
period in
section 14(2)(b)(ii)
did not apply to a month-on-month residential
lease, and only applied to fixed-term agreements. In that matter the
parties had
entered into month-to-month lease agreements. The Court
concluded that it would be disproportionate to invoke a 20
business-day
notice to cancel a monthly lease.
[7]
To offer such protection in cases of a monthly and indefinite lease
would be to offer protection in
circumstances
not envisaged by the
Act.
[8]
47.
In
the matter of
Transcend
Residential Property Fund Ltd v Mati and others
[9]
the
Court dealt with a written lease that had been concluded for an
initial period of one year, whereafter it would continue on
a
month-on-month basis, subject to termination by either party on one
calendar month's written notice. The lease provided that
if the
lessee failed to pay any amount to the lessor during the initial
period, and remain in default for 20 business days after
dispatch of
written notice calling upon her to remedy the breach, the lessor
would be entitled forthwith to cancel the lease. The
lessee fell into
arrears during the initial period, notice of breach was given, and
the lease was cancelled.
48.
The Court therefore addressed the matter on
the basis that this was a lease for a fixed term, and that the lessor
was required to
give notice in terms of
section 14(2)
of the
Consumer
Protection Act. The
issue of the applicability of
section 5(5)
of the
Rental Housing Act was
not raised.
49.
In
Magic
Vending (Pty) Ltd v Tambwe and others
[10]
the
Court was required to consider a breach clause which contained terms
identical to those in the second sample in the present
application,
which included provision for the application of the
Consumer
Protection Act. The
lease that was concluded was a written
month-on-month lease. The Court concluded, while following
Makah
,
that
section 14(2)(b)(ii)
of the
Consumer Protection Act applies
,
according to its tenor, only to fixed term consumer agreements,
"and
arguably also to month-on-month agreements that have automatically
come into being"
by
virtue of
section 14(2)(d)
upon the expiry of a fixed term
agreement.
[11]
50.
Section 14(2)(d)
of the
Consumer Protection
Act provides
that, upon expiry of the fixed term of the consumer
agreement, it will be automatically continued on a month-on-month
basis, subject
to any material changes of which the supplier has
given notice, unless the provisions of subsections (i) and
(ii)
apply.
51.
In the present instance, SOHCO afforded
each of the Respondents 20 business days' notice to remedy the
default, and the 20 business-day
period was mentioned in the Breach
Notices. None of the Respondents remedied the default within the
period of 20 business days.
It is accordingly not necessary for this
Court to consider whether the Breach Notices and subsequent
cancellations were ineffective
(on the assumption that
section
14(2)(b)(
ii) of the
Consumer Protection Act was
of application), by
reason of a failure by SOHCO to comply with the provisions of the
Consumer Protection
Act.
52.
Section
5(5) of the
Rental Housing Act is
clearly not appliable to the termination of leases on the grounds of
breach. It was not required of SOHCO, when seeking to
cancel
the leases on the ground of a breach thereof, to give one month's
notice to remedy the breach. The section provides
as
follows:
"If
on the expiration of the lease the tenant remains in the dwelling
with the express or tacit consent of the landlord, the
parties are
deemed, in the absence of
a
further
written lease, to have entered into
a
periodic lease, on the same terms and
conditions as the expired lease, except that at least one month
written notice must be given
of the intention by either party to
cancel the lease."
53.
Section 5(5)
of the
Rental Housing Act is
not applicable to
the
present matter, because the
written
lease agreements in this matter expressly provide for what is to
happen after the termination of the initial period, namely
that the
lease will be a month-on-month
lease
subject to the
terms
of
the written
lease agreement.
54.
The suggestion that
section 5(5)
applies to
the cancellation of leases on the grounds of breach is in any event
not supported by most of the relevant judgments
in which a similar
point has been raised.
55.
In
Luanga
v Perthpark Properties Ltd
[12]
this
Court considered the application of
section 5(5)
of the
Rental
Housing Act. The
facts are important. The parties had entered
into a lease for a period of 12 months, with the usual provision that
if the
lease was not cancelled by the lessor or the lessee before it
expired, the lease would automatically continue on a month-on-month
basis and might be cancelled by either party on at least 20 business
days' notice to the other party. In due course the lessor
notified
the lessees in writing that the leases were cancelled. This was not
by reason of any breach of the lease on the part of
the lessee, but
because the premises were being sold.
56.
The lessees opposed an application in
terms of PIE for their eviction from the premises, and contended that
the lessor could not
rely upon the 20 business-day clause in the
lease, and that it had been necessary for the lessor to comply with
the time period
provided in
section 5(5)
of the
Rental Housing Act.
The
Court held that the lessor was required, in those circumstances,
to give one calendar month's notice, as provided for in
section 5(5).
Importantly, that case did not relate to a termination following upon
a breach of the lease by the lessee, and is thus distinguishable
from
the present application.
57.
The
possible application of
section 5(5)
of the
Rental Housing Act was
also raised in
Magic
Vending
v
Tambwe
supra
.
The
facts
in
that
matter
were
different
to
those in
Luanga
,
in
that the lessor relied upon a breach of the lease on the part of the
lessee, and instead of giving notice to terminate the lease
(as was
the case in
Luanga)
,
the
landlord gave notice to remedy the breach. The Court held
[13]
in relation to
section 5(5):
"It
is plain that the provision is applicable to the termination of
a
periodic lease that is deemed to have
come into being when the lessee remains in the property with the
express or tacit consent
of the lessor after the expiration of
a
pre-existing fixed term lease.
It
is not applicable in
a
situation
in which a lease containing a forfeiture clause is terminated by the
landlord by reason of the lessee's failure to pay
the rent.
The judgement in Luanga. which held that
one month's notice referred to in
section 5(5)
denoted one calendar
month's notice also has no bearing on a landlord’s right to
terminate a lease on account of a material
breach of contract by the
lessee.
"
[Emphasis
added.]
58.
The
point was considered again in
Stevens
v Chester and others.
[14]
The lease was for a fixed term which, on expiry of the term, had been
converted to a month-on-month lease. The lessees had breached
the
lease by failing to pay the rental, and they were given notice of
breach and called upon to remedy the default. The issue raised
was
about the period which they were to be afforded to remedy the breach.
It was argued for the Respondents in a PIE application
that the
lessor was required to give notice of cancellation in terms of
section 5(5)
of the
Rental Housing Act.
>
59.
The
Court was referred to both the
Luanga
and
the
Tambwe
judgments.
The Court referred to the
passage
from
Tambwe
(quoted above), with which conclusion the Court stated that it
agreed, on the grounds that that matter had dealt with a written
lease, albeit that it operated on a month-on month basis, and the
landlord in that matter was entitled to rely on the cancellation
or
breach clause.
[15]
Despite
this conclusion, and for reasons that are not clearly apparent, the
Court concluded that because the lessor had not
complied with the
provisions of
section 5(5)
of the
Rental Housing Act, the
application
stood to be dismissed with costs.
60.
Upon a consideration of
Tambwe
and
Hendricks
(referred to below), and on a proper
interpretation of
section 5(5)
of the
Rental Housing Act, I
am of the
view that
Stevens
is clearly wrong, and I decline to follow it.
61.
The
issue was considered again in
Hendricks
N.O and another v Davids and 4 others
.
[16]
A written lease was concluded for a residential property for a period
of one year, renewable at the option of the first respondent.
The
lease was never renewed, but the first respondent remained in
occupation of the property. When the tenant fell into arrears,
notice
was given affording the tenant 7 days to remedy the default, failing
which the lease would be cancelled. When no payment
was forthcoming,
the lessor gave notice of cancellation. A notice period of 7 days was
provided for in the written lease agreement.
62.
The lessee raised a point
in
limine
in the magistrate’s court
to the effect that there had been non-compliance with the provisions
of
section 5(5)
of the
Rental Housing Act, and
that the landlord was
required to have afforded a month's notice of his intention to
terminate the lease agreement. The magistrate
upheld the point
in
limine
and dismissed the application,
and the matter accordingly came to this Court on appeal.
63.
The Court defined the narrow point as
being whether
section 5(5)
of the
Rental Housing Act affects
the
rights of a landlord to cancel a lease agreement on account of a
lessee's breach. The Court followed the decisions in
Tambwe
and
Trascend,
and concluded that
section 5(5)
of the
Rental Housing Act did
not
override the provisions of the breach clause in so far as it
concerned the right to cancel the lease on account of breach.
64.
The
purpose of
section 5(5)
of the
Rental Housing Act is
to preserve the
rights of a tenant in a month-on-month lease, in circumstances where
the written lease agreement does not make
express provision for the
tenancy that follows upon the termination of the initial period. Such
an approach was adopted in
Sharma
v Hirschowitz and others,
[17]
in which the problem intended to
be
addressed by
section 5(5)
of the
Rental Housing Act was
considered.
The Court stated:
[18]
"The
legislature did not intend to preclude the conclusion of further
lease agreements after the expiration of the lease agreement
or to
prohibit increased rentals after the expiry of initial leases.
So
much is clear from the exclusion of
written agreements from
Section 5(5).
The mischief the legislature
intends addressing is quite clearly the resolution of disputes which
quite often arise in oral or
tacit agreements about the nature of the
terms of the renewed lease. Thus the common situation where the terms
of the renewed lease
are open to dispute is addressed. Absent
writing, the renewed lease is deemed to be the same as the previous
one. This is
a
perfectly
sensible statutory provision designed to provide
a
rule of thumb to resolve commonly
encountered disputes."
65.
Section 5(5)
could also not apply in a
situation such as the present, because of the potential for conflict
between the legislative provisions
of
section 14(2)
of the
Consumer
Protection Act and
section 5(5)
of the
Rental Housing Act. If
a lease
falls within the provisions of
section 14(2)(b)(ii)
of the
Consumer
Protection Act (as
in the present case), then a notice period in the
event of a breach of the lease agreement will be 20 business days. It
would be
absurd if, notwithstanding this, the
Rental Housing Act
required
one calendar month's notice to remedy the same breach.
66.
In all of these circumstances, I agree with
the submission made by counsel for SOHCO that there is no basis to
find that the notice
period of 20 business days afforded to each of
the Respondents to remedy the breach was inadequate or insufficient.
The defences raised
by the Twenty-Fourth Respondent, represented by September &
Associates
67.
The defences raised by the Twenty-Fourth
Respondent are the following:
67.1.
The Notarial Deed of Lease relied upon by
SOHCO was concluded between the City and SOHCO. The TwentyFourth
Respondent contends
that the City ought (pursuant to a City
resolution attached to the Twenty-Fourth Respondent's papers) to have
concluded the Notarial
Deed of Lease with a different company, namely
SOHCO Amalinda Housing NPC ("SOHCO Amalinda"). There
was thus no
authority for the City to conclude the Notarial Deed of
Lease with SOHCO, and the wrong applicant was before the Court.
Accordingly,
so the Twenty-Fourth Respondent contends, SOHCO lacks
the necessary
locus standi
to
bring the application. In the alternative (if the Notarial Deed
of Lease was found to be valid), the eviction application
should be
postponed
sine die
for the Twenty-Fourth Respondent to bring
an application for judicial review based
upon the principle of legality in order to have the Notarial Deed of
Lease set aside.
67.2.
This matter ought to be referred to
mediation pursuant to the provisions of Rule 41A of the Uniform Rules
of Court, alternatively,
section 7 of PIE.
67.3.
Should she be evicted, she would be
rendered homeless and would require assistance with alternative
accommodation. That, by reason
of the fact (so it was alleged) that
SOHCO as a social housing institution had “taken over”
the role of national, provincial,
and local government (and in
particular the City) to provide low-cost housing to the poor and
disadvantaged members of the community,
a duty rested on SOHCO
(alternatively, the City) to provide alternative housing to the
Twenty-Fourth Respondent and her daughter.
In the circumstances, and
because neither SOHCO nor the City had provided this alternative
accommodation, the application should
be dismissed, alternatively
they should be ordered to provide such alternative
housing.
67.4.
It would be unfair to the Twenty-Fourth
Respondent were she to be evicted, because she was a beneficiary of
Government's subsidized
housing scheme, and might not qualify in the
future for Government-subsidized housing.
67.5.
She denies that the Lease Agreement between
her and SOHCO was properly cancelled, and contends that no evidence
was adduced in the
founding papers other than the allegation that a
Notice of Cancellation was
"slipped
under my door'.
In the circumstances,
the Twenty-Fourth Respondent denies that she is in unlawful
occupation.
68.
Again, these defences do not have merit.
69.
The Lease Agreement granting the right to
use the land for the establishment of Steenberg Project was concluded
between the City
and SOHCO, and not between the City and SOHCO
Amalinda. SOHCO explains that it was used as a special purpose
vehicle, established
by SOHCO Amalinda, for the purpose of this
particular development, to ring-fence and separate the Steenberg
Project from the general
finances of SOHCO Amalinda. There was
nothing unlawful or untoward about this. In the circumstances, it is
not correct to argue
that the lease was concluded with the incorrect
party, or that the lease concluded between the City and SOHCO was not
properly
authorized. An application for judicial review has no
prospects of success on the facts as they appear from the papers
before
this Court.
70.
Even were SOHCO not the tenant of the City,
it has developed and administered the project, and is the entity in
charge thereof (with
reference to section 1 of PIE). The
Twenty-Fourth Respondent entered into a written Lease Agreement with
SOHCO for the occupation
of the unit in question. She paid
rental to SOHCO.
71.
The lease states that the lessor is SOHCO,
but the lease is
"managed''
by
SOHCO Amalinda. This does not indicate that it is not SOHCO, as
lessor, that is in charge of the premises.
72.
There is thus no basis to contend that
SOHCO lacked the requisite
locus standi
for the institution of this
application.
73.
As regards mediation, there was no prospect
of success in pursuing that option. As to Rule 41A(3)(b), SOHCO was
not amenable to
the dispute being referred to mediation, and filed a
notice to
that
effect. In
the absence of
the partie,s
being
prepared to agree to refer the dispute to
mediation, there is no provision for a judge, in terms of Rule
41A,
to refer the dispute to mediation.
74.
As regards the possible mediation in terms
of section 7 of PIE, and because the land is owned by the City (and
leased to SOHCO),
the provisions of section 7(2) of PIE would be of
application. The section provides as follows:
“
(2)
If the municipality in whose area of jurisdiction the land in
question is situated is the owner of the land in question, the
member
of the Executive Council designated by the Premier of the province
concerned, or his or her nominee, may, on the conditions
that he or
she may determine, appoint one or more persons with expertise in
dispute resolution to facilitate meetings of interested
parties and
to attempt to mediate and settle any dispute in terms of this Act:
Provided that the parties may at any time, by agreement,
appoint
another person to facilitate meetings or mediate a dispute, on the
conditions that the said member of the Executive Council
may
determine
.
75.
Such mediation would be required to be
conducted by the MEC for Housing, or his or her nominee, to attempt
to mediate and settle
any dispute in terms of PIE. The Twenty-Fourth
Respondent has to date taken no steps to initiate any such mediation,
and there
is no indication that any request was made to the City in
terms of section 7(3) of PIE (“
Any
party may request the municipality to appoint one or more persons in
terms of subsections (1) and (2), for the purposes of those
subsections
”). There is
thus no basis for the present matter to be stayed or postponed at
this juncture for the purpose of such
mediation. In any event, a stay
pending mediation would require an application by the Twenty-Fourth
Respondent, properly motivated.
There is no such application
before this Court.
76.
A further reason why there is no prospect
of mediation is because the Social Housing Model does not envisage
persons remaining in
a unit without the payment of
any
rental.
In the present matter, the Twenty-Fourth Respondent has remained in
occupation of the premises for a considerable
time without paying for
any rental or for water since 25 October 2018. She has only
made one payment in the amount of R100.00
and nothing else. She
has not tendered to pay any amount of rental (or for utilities),
whether at present or in the future.
77.
Mediation has in fact been attempted
pursuant to SOHCO having handed over the matter to the Rental Housing
Tribunal to accommodate
possible mediation. The Tribunal
advised, however, that the matter required to proceed to litigation –
hence the institution
of this application. SOHCO had also
engaged with the Twenty-Fourth Respondent from January 2018 onwards,
these interactions
being recorded in notes filed of record.
78.
The suggestion that SOHCO had a role to
provide effective affordable housing to the poor on behalf of
Government is incorrect. SOHCO
is a social housing institution and a
private entity. In terms of the National Housing Code, 2009,
housing is made available
to those who qualify therefor, and it is
expected that rental be paid. SOHCO, being a private entity, does not
hold any constitutional
obligation to the public with regard to
housing, and has no obligation to provide housing to the poor.
Its
position
cannot be equated with that of a local authority
or with provincial
or national government. I shall
return to this issue in more detail later, as it featured prominently
in the Respondents’
arguments.
79.
SOHCO, as a social housing institution,
cannot be required to provide
"suitable
alternative accommodation"
to
every tenant that it wishes to evict, failing which it is obliged to
accommodate that person in the existing unit without charge.
This is
simply not possible, bearing in mind that SOHCO is expected to
maintain the Steenberg Project and keep it in a proper state
of
repair, provide security guards, pay for water and sewage, and
generally administer the project. All that is required
to be
paid for, and the only source of income available to SOHCO, is
rentals.
80.
It is thus incorrect, as the Twenty-Fourth
Respondent contends, that SOHCO provides
housing
"on behalf of Government”
or that it has accepted any
constitutional obligation to provide housing. There is also no
basis for the Court
to
order SOHCO to provide alternative housing to the Twenty-Fourth
Respondent and her daughter. It is for the City, as local
authority, to provide temporary emergency accommodation to those
persons who may require it, so as to ensure that no persons are
rendered homeless as a result of an eviction.
81.
The fact that the Twenty-Fourth Respondent
took up occupation of a unit in the Steenberg Project, pursuant to a
Lease Agreement,
does not affect her position on the governmental
housing list, and does not affect her right to qualify in future for
Government-subsidized
housing.
82.
At the hearing of the application the
Twenty-Fourth Respondent argued that she was not an unlawful occupier
because the lease had
not been properly cancelled. She argued
that she had indeed, notwithstanding the manner in which she had
dealt with the receipt
(or non-receipt) of the Breach Notice and
Notice of Cancellation, properly denied in her answering papers that
she had received
those notices. She contended that a genuine
dispute of fact had been raised.
83.
The Twenty-Fourth Respondent had answered
to the allegations contained in the founding affidavit in relation to
the Breach Notice
and Notice of Cancellation merely by stating that:
"I deny that my lease was properly
cancelled. SOHCO does not adduce and attach evidence in this regard
other than alleging
that a Notice of Cancellation was slipped under
my door (by whom and how it is not clear)"
and
" in the premises, I deny that I
am
in unlawful occupation
as
alleged herein by SOHCO
."
84.
In reply, SOHCO responded that it was
denied that the lease had not been properly cancelled, and pointed
out that:
"… the
Twenty-Fourth Respondent does not deny that the Notice was placed
under her door. This was done by
a
security guard on 19 August 2019."
85.
The
reference to the notice being placed under the door was a reference
to the Notice of Cancellation, and not the notice to remedy
the
breach. The Twenty-Fourth Respondent is silent as
to
the
notice
to
remedy the breach. There was, furthermore, a
domicilium
clause
in
the
Lease Agreement. The notices were delivered in terms of that clause.
In any event, even had the Notice of Cancellation
not been received
or correctly delivered, service of the application would have
operated as effective notice of the termination
of the contract.
[19]
86.
There is accordingly no genuine or real
dispute of fact in this respect. There is no suggestion that
the Twenty-Fourth Respondent
was not in arrears at the time that the
Breach Notice was delivered, nor was it disputed that she failed,
within 20 business days
of the notice (or at all), to settle the
arrears. In the circumstances, the
lease was lawfully cancelled and the Twenty-Fourth Respondent is in
unlawful occupation
of the unit.
The defences raised
by the Respondents represented by PA Mdanjelwa Attorneys
87.
No separate answering affidavits in the
main
application
were
deposed
to and delivered on behalf of these Respondents. Instead, they relied
upon affidavits previously deposed to by them, and
in particular by
Mr Lionel Cottle (the Thirty-First Respondent), in support of an
unsuccessful joinder application that had been
determined in the
course of the judicial case management process. Insofar as various
"defences"
are
raised in that affidavit, they can be summarised as follows:
87.1.
If the Respondents were evicted from the
Steenberg Project, they would have nowhere to go, as they could not
even afford backyard
accommodation, and would be rendered homeless.
87.2.
Persons in need of emergency accommodation
were only provided with 30m2 structures in a place such as Kampies
(which was described
as a
"squatter
camp"),
which accommodation the
Respondents rejected as unsatisfactory and unacceptable.
87.3.
They did not want emergency accommodation
in a place such as Kampies, but sought an order from the Court
directing the parties constitutionally
responsible to provide housing
constituting serviced plots, where they could build their own homes.
87.4.
In the circumstances, an interlocutory
application was brought for the joinder of the Minister of Human
Settlements, and the MEC
for Human Settlements (Western Cape),
requiring them to intervene and prevent the Respondents' eviction by
SOHCO, which would result
in them being sent to what is described as
"squalor camps"
as
a result of their inability to continue paying rent. That
application was unsuccessful.
88.
SOHCO counters these allegations by
pointing out that all of the Respondents applied to take up a lease
in the Steenberg Project,
after having completed an application form
and meeting the financial qualification. There is no provision for
tenants who can no
longer afford to pay rental to remain in
occupation of the leased unit without
making
payment.
This is in accordance with the
National
Housing Code, to which reference has been made.
89.
The Respondents do not dispute that the
leases concluded by them were lawfully cancelled after they had
defaulted on the payment
of monthly rentals. The relief sought to the
effect that the MEC for Human Settlements (Western Cape),
alternatively, the Minister
of Human Settlements, should provide
permanent alternative accommodation, is not relief sought against
SOHCO.
90.
The defences raised by these Respondents
can therefore not be sustained.
The defences raised
by the Thirty-Fifth Respondent, represented by Sylvester Vogel
Attorneys
91.
The Thirty-Fifth Respondent opposes the
application on the following bases:
91.1.
She states that, due to the Covid-19
pandemic in March 2020, she could not afford to pay her rental in
arrears, and raises a plea
of
force
majeure
.
91.2.
She alleges that
a
promise had been made to her that, upon taking up
the lease, the unit would become her own property after the expiry of
a period
of four years, and that she might only end up paying a small
amount towards the purchase price thereof following the payment of
rent for such period.
91.3.
Her monthly rental payments, from 2017
onwards, have not been properly captured and that there are
accounting errors in the amount
that
she allegedly owes.
91.4.
She is willing to buy the premises, and if
she is not afforded the opportunity to do so, she would be left with
no
other option
but to pursue what she believed was her right to purchase the
premises.
92.
SOHCO points out, however, that the
Thirty-Fifth Respondent was not, as she suggests, up to date with
rentals until the commencement
of the Covid-19 pandemic. She was in
significant arrears long before then, already as at 1 December 2017.
Her arrears were
in the amount of R7 706.94. Only one payment was
made for the whole of the calendar year 2018, in the amount of
R500.00. As a result,
by 31 December 2018 her arrears had increased
to R44 861.73. No payments were made at all for the first six months
of 2019, and
rental payments recommenced only on 1 July 2019.
They ceased in April 2020, and for the period May 2020 to 1 August
2021
no amount was paid at all. The arrears are accordingly not as a
result of
vis major
allegedly
caused by the Covid-19 pandemic.
93.
The Thirty-Fifth Respondent was given
notice of breach by the Sheriff, by personal service on 22 May 2020.
The Notice of Cancellation,
dated 3 July 2020, was served by the
Sheriff on 7 July 2020
.
A
copy of the Return of Service shows that personal service took place.
94.
The Steenberg Project is not a 4-year
rent-topurchase scheme, and there was no such agreement to that
effect. It cannot
be said that the Thirty-Fifth Respondent was
brought under the impression that her Lease Agreement with SOHCO
would lead to the
eventual purchase of her unit. If reference is had
to the application form that the Thirty-Fifth Respondent signed on 19
November
2013, it is clear that she confirmed that she understood
that she was applying for a rental unit, and that she could not buy
the unit. Her Lease Agreement itself
contains nothing that could have brought her under such an
impression.
95.
It is also self-evident that SOHCO, itself
a tenant under the Notarial Lease, could not sell and transfer
ownership of any of the
units to the occupants.
96.
SOHCO, in any event, cannot be expected to
provide free accommodation to persons in the position of the
Thirty-Fifth Respondent,
particularly where there is no indication
that the tenant is at present, or in the near future, in a position
to pay the rental
as required
in
terms of the Lease Agreement. Substantial arrears in rentals
accumulated over extended periods cannot be ignored and written
off,
as this will establish a dangerous precedent and be unfair to those
tenants who do make the effort to pay their rentals.
97.
In the course of argument at the hearing
the Thirty-Fifth Respondent contended that the Notice of Breach was
for some reason invalid,
either because she was not in breach of the
lease agreement, or because the National State of Disaster created a
vis major
situation.
She accordingly contended that the lease had not been lawfully
terminated.
98.
I have referred to the personal service of
the Breach Notice and the Notice of Cancellation upon this
Respondent. There is
no dispute that more than 20 business days
expired between the two, and further that in the period between the
delivery of the
notices no rental was paid.
99.
I have also referred to the fact that she
had been in default long before the onset of the Covid-19 pandemic.
The fact that
she was able to make a single isolated payment on 3
July
2018
puts
paid
to
the
contention, raised in argument
,
that
SOHCO had
somehow
prevented
her from making rental payments. There is
no proper explanation for the failure to pay the arrears, and the
Thirty-Fifth Respondent
does not state in her affidavit that they
were written off by SOHCO or that she was excused from paying them.
In any event,
the Lease Agreement provides that, should the lessor
cancel the lease, and the lessee dispute the right to cancel and
remain in
occupation of the premises, then she is obliged to continue
paying all amounts due under the lease.
100.
In argument, it was suggested that the
arrear rental had prescribed by 22 May 2020 when the Breach Notice
was given. This cannot
be the case, as the arrears as at 4 August
2017 were in the amount of R1 114.85, and all further arrears accrued
after that date.
Even the limited amount of R1 114.85 appears to be a
shortfall in the July 2017 rental. In the circumstances, three
years
had not expired since when the Breach Notice was served on 22
May 2020 (nor when the Notice of Cancellation letter was served on
7
July 2020). This application was instituted in 2020. The
prescription point is therefore devoid of any merit.
101.
It was suggested in argument on the
Thirty-Fifth Respondent’s behalf that a dispute of fact
existed. It is not clear
what this dispute of fact is, as it
was not properly defined. In any event, any possible dispute of fact
which would preclude the
application from being determined on the
papers, would have to be one that was legally relevant to the
determination of the matter.
No such dispute can be discerned from
the papers.
102.
As indicated earlier, the Thirty-Fifth
Respondent seeks to rely upon
vis major.
It is not clear whether this is on the
basis that the National State of Disaster precluded a Notice of
Breach being served (either
for past or current arears), or whether
rental was not payable during the period of the State of
Disaster. Either of these contentions
are, in any event, devoid of merit
. The Thirty-Fifth Respondent enjoyed occupation of the
premises during the entire period, and her use and enjoyment thereof
was not affected. The reciprocal obligation to pay rental remained in
place.
Force majeure
is only applicable in limited instances in
which the state of disaster prevents one of the parties
from enjoying
performance under the contract. The fact that the creche where she
had worked may have been shut does not create
a basis for reliance
upon
vis major
in
respect of non-payment of rental for the unit which she continued to
occupy.
103.
The
general principles relating to
vis
major,
and
when it is of application, are discussed by
Cooper:
Landlord
and
Tenant
.
[20]
Firstly, what is required for a remission of rental of leased
premises is that the tenant is, through
vis
major,
deprived
wholly or partly of the use and enjoyment of the property let to him
or her. In the present instance, the Thirty-Fifth
Respondent
continued to
have
the use and enjoyment of the property. Secondly, to be entitled
to a remission of rental, the lessee's loss of beneficial
occupation
must be a direct result of the
vis
major,
not
merely an indirect result. In this instance, not only was the use and
enjoyment not lost to the lessee, but the fact that she
lost her
income from the creche where she worked as a result of the national
lockdown was unconnected to the use and enjoyment
of the property.
104.
The defence of
vis
major
therefore has no merit.
105.
The Thirty-Fifth Respondent’s counsel
contended at length that the City's approach to temporary emergency
accommodation is
not acceptable, and that on this ground it would not
be just and equitable to grant an eviction order in respect of
her.
106.
However, the Thirty-Fifth Respondent has
not, either in her initial answering
affidavit deposed to on 19 July 2021, nor in a further affidavit
deposed to on 7 September
2022, stated that she would be rendered
homeless should she be evicted, or indicated that she required
temporary emergency accommodation.
On the contrary, her case in her
original answering affidavit is that she wants to buy the unit.
107.
The Thirty-Fifth Respondent also does not,
in either affidavit, disclose her current income. She confirms that
she is in receipt
of income from a creche. She does not state that
she cannot afford to pay rental on the open market. She also does not
place any
facts before the Court (or even allege) that she is
indigent, or does not have the funds to secure other accommodation.
Her
case as set out in her affidavit of 7
September 2022 appears to be that she can
afford to pay rental in the amount of some R4 000.00 per month, and
she has shown that
she made payments in that approximate amount for
certain of the months since October 2021.
108.
There is accordingly nothing to show that
there is a risk that the Thirty-Fifth Respondent would be rendered
homeless if evicted.
Despite being legally represented by an attorney
and counsel throughout the proceedings, the Thirty-Fifth Respondent
has made no
such claim, nor has she stated that she is in need of, or
wishes to be furnished with, temporary emergency accommodation by
the
City.
109.
In these circumstances, the defences raised
by the Thirty-Fifth Respondent have no merit.
Conclusion on the
lawfulness of the Respondents’ occupation of the premises
110.
In light of what is set out above I agree
that SOHCO has established that the Lease Agreements concluded
between it and each of
the Respondents were lawfully terminated, and
that each of the Respondents is in unlawful occupation of the units
in which they
continue to
reside.
111.
In
Malan
v City of Cape Town
[21]
the
Constitutional Court
held
(in the context of notice of cancellation of a lease in respect of
public housing given by an organ of State such as the City),
that a
Lease Agreement may be terminated by the landlord on the ground of
the nonpayment of rentals, provided that proper
notice was first
given to the tenant to settle the arrears.
112.
The
contrary
view would be untenable, in
that
it would mean that a poor tenant, once in occupation of public
housing (although in the present matter the housing cannot be
described as being
"public"
in
nature), could decline to pay any rent, assured in the knowledge that
any amount of arrears would not provide a reason for eviction.
Is it just and
equitable that the Respondents be evicted?
113.
Having established that the Respondents are
in unlawful occupation, the next question is whether it is just and
equitable that they
be evicted from the Steenberg Project.
114.
The
Constitutional Court
[22]
has
held that the enquiry to be conducted by a Court under section 4 of
PIE is two-fold in nature in this regard, with two separate
issues to
be considered before granting an eviction order, namely (1) whether
it is just and equitable to grant an eviction order
having regard to
all relevant factors; and (2) what justice and equity demand in
relation to the date
of
implementation of that order, and what conditions must be attached to
that order. This second enquiry includes a consideration
of the
impact of an eviction order on the
occupiers
and whether they will be rendered homeless, thereby or need emergency
assistance to relocate elsewhere.
115.
In
City
of Johannesburg Metro Municipality v Blue Moonlight Properties 39
(Pty) Ltd
[23]
the Supreme Court of Appeal held that, in the event that an applicant
has complied with the provisions of PIE, then he or she is
entitled
to an eviction order:
"It
is not in dispute that Blue Moonlight has complied with the
requirements of PIE and that it is entitled to an eviction
order. All
that remains is for us to determine the timing of the eviction."
116.
The
Constitutional Court in
City
of Johannesburg Metropolitan Municipality v Blue Moonlight Properties
39 (Pty) Ltd and another
[24]
held
that justice and equity may require the date of implementation of an
eviction order to be delayed
if
alternative
accommodation
is
not
immediately
available.
117.
Properly
applied, PIE should serve merely to delay or suspend the exercise of
the landowner's full property rights until a determination
has been
made whether it is just and equitable to evict the unlawful
occupiers, and under what conditions.
[25]
Justice and
equitability in the present matter
118.
A social housing project such as that
conducted by SOHCO is established on the model contained in the
National Housing Code: occupants
pay rental; this rental is escalated
over time, and those
who
do
not
pay
the
rental must
vacate.
A
failure
to
pay
rental
and utilities charges undermines the
financial viability of the social housing project and places it in
jeopardy.
119.
A failure to evict those who become
unlawful occupants of social housing initiatives frustrates the
National Housing Initiatives,
because it undermines the very basis
thereof - that rental housing is provided to those who qualify, at
rates less than commercial
rentals. To allow persons to remain in
occupation for long periods, without paying, will effectively convert
the housing from rental-based
social housing to "free"
housing, which is not the intention underlying the initiatives. It is
contrary to the National
Housing Policy which requires that those who
cannot afford to pay the rental vacate the social housing units so as
to accommodate
others who can pay. Having regard to the policy
of National Government, namely that rentals must be paid by occupants
of
social housing units, and that occupants must continue to qualify,
it cannot have been intended that persons could remain in occupation
of the units indefinitely regardless of any change in their financial
situations. This is in the context that each lease in the
present
matter was for a period of one year, and thereafter for an
"indeterminate period',
subject
to notice.
120.
Persons who prosper, and whose income
increases beyond the upper financial limit to qualify, are required
to vacate and obtain accommodation
elsewhere at market-related rates,
which they would then be in a position to afford. Persons whose
financial position deteriorates,
and who can no longer afford the
rentals, are required to vacate.
121.
Counsel for SOHCO provides the following
illustration of the situation: Persons going onto pension, and who
moved from earning an
income to receipt of a SASSA pension
insufficient to cover the rental. If those persons do not have other
members of the household
who can contribute to the rental, they are
required to vacate. If this was not the case then, as working people
gradually become
pensioners unable to pay rent, the median age of the
occupants would theoretically increase over time until all the
occupants were
pensioners who cannot afford to pay any rental,
effectively converting a social housing project to a retirement
village providing
free accommodation and utilities.
122.
There are many other persons waiting on
housing lists for social housing, who can afford to pay rental, and
who are being denied
access to a housing opportunity by reason of the
Respondents remaining in unlawful occupation of units at no cost to
them.
123.
In addition to policy considerations, it is
also obvious that to allow persons to remain in occupation for
considerable periods
without making payment, the steady increase in
irrecoverable arrears will jeopardize the financial viability of
social housing
institutions such SOHCO, which relies upon payments of
rental and for utilities to enable it to pay for costs and expenses
that
are not subsidized. The situation places entire projects
such as the Steenberg Project at
risk.
124.
The
approach adopted by certain of the Respondents as to the role,
obligations and duties of SOHCO is entirely misplaced.
[26]
I have referred to this issue earlier. SOHCO does not owe citizens in
general, or its tenants in particular, a constitutional or
legal duty
to provide adequate
(or
any)
housing.
The
Social Housing Act does
not create any such obligations and
duties for SOHCO as a social housing institution and a private
entity. The contract between
SOHCO and the City expressly
provides that the two entities are not in any form of partnership,
but that SOHCO is an independent
contractor.
125.
SOHCO, being a social housing institution,
and having received grants from the State to contribute to the cost
of the construction
of the Steenberg Project, is required to comply
with its legal obligations in terms of the
Social Housing
Act. It is required to offer accommodation
at rentals lower than market related, which is made possible by the
State's contribution towards
the cost of the
construction. SOHCO is required to
submit the annual rental increases for approval, and is contractually
bound to the City
and the organs of State that provided the
contribution to the construction costs, to conduct the project in
terms of its contractual
obligations.
126.
SOHCO has not received ownership of the
land, nor the improvements, which remain the property of the City,
and must return them
to the City (without compensation) at the
termination of the lease
period.
SOHCO is also entitled (and in fact obliged) to recover and pay back
the capital that it raised as its contribution
to the construction of
the project. SOHCO is further obliged, by reason of its
contractual obligations to the City, to provide
services and maintain
the buildings and infrastructure, at its own cost, which can only be
recovered from rentals.
127.
Various courts in this and other Divisions
have considered the obligations and position of social housing
institutions, and have
not extended those obligations to the creation
of constitutional and legal obligations to provide housing to the
poor.
128.
In
Sohco
v Prudence Hlophe and 95 others,
[27]
it was held that the fact that the National Department of Housing
provided SOHCO with a subsidy did not give the Department a direct
and substantial interest in a dispute between SOHCO and the
Respondents as to the entitlement of the Respondents to remain in
occupation of their respective rental units.
129.
In
Sohco
v Ramdass and 232 others
[28]
the Court followed and approved the approach adopted in
Prudence
Hlophe supra
.
130.
In
Modula
Moho Housing Association (Pty) Ltd v Masibi
[29]
the
Court held that the regulations pursuant to the
Social Housing Act
were
irrelevant to the issues to be considered in a PIE application.
The regulations dealt with the relationship between the Social
Housing Regulatory Authority and social housing institutions, and
related to governance issues. The Court held that neither the
Social
Housing Act nor the
regulations had any impact on the private law
relationship between the applicant in that case (a social housing
institution) and
its tenants, which was a relationship founded in
contract. The Court was accordingly not required to consider whether
the applicant
had complied with certain regulations to enable the
Court to determine whether it was just and equitable to grant an
eviction
order.
131.
In
Sohco
Property Investments v Thathakahle
[30]
it was held that the relationship between SOHCO and the tenants,
including the right to increase rentals and to cancel the lease
agreements on breach for failure to pay rental, was governed by
parties' consensus as evidenced by the lease agreements that had
been
concluded. Whilst accepting in favour of the Respondents that SOHCO
had responsibilities beyond the limits of the common law
and the
lease agreements, SOHCO lost none of its common law and
constitutional rights to its property. What the additional rights
and
responsibilities are were set out in the housing laws. As a social
housing institution SOHCO was considered to be bound by
the general
principles applicable to social housing in
section 2
of the
Social
Housing Act. The
Court however emphasised that the
obligations
contained in subsection 2(1)(e) related to consultation during the
development phase of social housing, not necessarily
after the lease
agreements were concluded. The consultation in subsection 2(1)(g) was
aimed at empowering the tenants at the time
the lease was concluded.
132.
In the present application none of the
Respondents have suggested that they did not understand what was
required of them as tenants.
All of them withheld rental, and
have done so for years.
Section 2
of the
Social Housing Act does
not
provide a basis for contending that the leases were not lawfully
cancelled, and none of the Respondents have so contended.
Section 2
also does not provide a ground for refusing to recognize
SOHCO's common law and constitutional rights in respect of the
property.
133.
In these circumstances I agree with the
submission made by counsel for SOHCO that the Respondents' repeated
failure to make payment
of the rental and their continued unlawful
occupation jeopardizes the viability of the Steenberg Project, and
precludes SOHCO from
receiving an income from the units by securing
alternative tenants who are willing and able to pay the rent, and for
utilities
such as water and sewage, and security.
134.
The extent of the arrears and the dates
when the respective Respondents last made payment towards rental or
utilities appear from
the
schedule that is annexed as “
A
”.
Rentals have remained unpaid for a considerable period of time, in
some instances for some years. These arrears
are irrecoverable, and
will represent a loss to SOHCO. The arrears on annexure “
A
”
are expressed as at 1 July 2021. In the period since that date, the
arrears will have increased considerably.
135.
It
is clear from the papers that SOHCO has demonstrated patience for
some years. It afforded the Respondents an opportunity
to
arrange their affairs, and either to obtain better employment or seek
alternative accommodation. SOHCO cannot, however,
be expected
to continue to provide free accommodation and utilities to the
Respondents. While SOHCO, as a private company,
has no
constitutional obligation to provide adequate housing or rights to
housing in terms
of
section 26 of the Constitution, to persons in the position of the
Respondents,
[31]
SOHCO has, by
affording the Respondents an opportunity to make arrangements, and by
accommodating the Respondents for a considerable
period without
receiving rental, acted in the spirit of ubuntu by recognizing the
Respondents’ right to
dignity:
[32]
"Thus,
PIE expressly requires the court to infuse elements of grace and
compassion into the formal structures of the law. It
is called upon
to balance competing interests in a principled way and to promote the
constitutional vision of a caring society
based on good
neighborliness and shared concern. The Constitution and PIE confirm
that we are not islands unto ourselves. The spirit
of ubuntu, part of
the deep cultural heritage of the majority of the population,
suffuses the whole
constitutional
order. It combines individual rights with a communitarian philosophy.
It is a unifying motif of the Bill of Rights,
which is nothing if not
a structured, institutionalised and operational declaration in our
evolving new society of the need for
human interdependence, respect
and concern."
136.
I
agree further that a failure to afford relief to the private owner,
including an entity in the position of SOHCO, amounts to an
effective
expropriation or deprivation of its property rights in breach of
section 25 of the Constitution.
[33]
There is no reason why, in these circumstances, it would not be just
and equitable to grant the eviction
order.
Temporary emergency
accommodation
137.
It
is the obligation of the City, in the present instance, to provide
temporary emergency accommodation to those of the Respondents
who
require it, and who would be rendered homeless should they be evicted
from the units presently occupied by them.
[34]
138.
The
constitutional obligation to provide housing is one of progressive
realization. The Constitutional Court
[35]
was, for example, called upon to consider whether temporary
accommodation offered by the City at Wolwerivier qualified as
"suitable"
alternative
accommodation, to be provided by the City within its available
resources. The Court concluded that it was. What
was offered in
that instance was a 26.5m2 structure made of light gauge steel and
corrugated iron, with each unit having an inside
toilet and wash
basin.
139.
The
Court also had to address the refusal of the evictees to accept the
accommodation that the City offered to them. The question
was
posed
[36]
whether the City had
an obligation to continue offering accommodation until the applicants
were
satisfied
with such accommodation. The Court held that the City was obliged, in
terms of section 26
of
the Constitution, to take
"reasonable
legislative and other measures,
within
its available resources”
to
provide housing. The Court, having accepted that the housing units in
question (at Wolwerivier) qualified as suitable
alternative
accommodation which
is
provided by
the
City within its available means, held that
the
occupiers could not delay their eviction each time by rejecting the
alternative accommodation offered to them.
[37]
140.
The
Constitutional Court has recently again confirmed that a private
owner has no obligation to provide free housing and, although
one has
a constitutional right to housing, this right does not afford an
unlawful occupier the right to choose where he or she
wants to
live.
[38]
I mention this
because one of the objections raised to the accommodation offered by
the City on this matter was that it would
be too far from where some
of the Respondents’ children currently attended school.
141.
O
n 10 February
2022 Mr Gregory Exford, on behalf of the City, deposed to an
affidavit in this matter addressing the issue of the
availability of
temporary emergency accommodation. Mr Exford is in the employ
of the City’s Housing Settlements department.
In that
affidavit, the City indicated that it had received questionnaires
dealing with personal circumstances from those Respondents
represented by Marlon Shevelew & Associates, as also the
Twenty-Fourth Respondent (represented by September & Associates),
and the Thirty-Fifth Respondent (represented by Sylvester Vogel
Attorneys).
142.
As
was indicated at one of the judicial case management meetings held
during 2021, those Respondents represented by PA Mdanjelwa
Attorneys
had (on advice received) refused to file such questionnaires with the
City.
[39]
The City noted
the personal circumstances of the seventeen Respondents who had
completed the questionnaires, together with
the affidavits deposed to
by them, and indicated that it was in a position to provide those
Respondents with temporary emergency
accommodation, if they were not
able to obtain it through their own means.
143.
Should they accept the City's offer, the
City indicated
that
they would be integrated into an emergency accommodation site, which
was situated at Mfuleni, and a picture of the
structure offered was annexed to the
affidavit. The offer of a structure included water and sanitation
facilities. The Respondents
would be required to occupy the
structures immediately once they had been made available
to them. There were schools available in
the area, as well as places of worship, a shopping mall, health care
facilities, and other
amenities within a 3km to 7km radius from the
emergency accommodation site that was
offered. A court and police station are 5km
away from the site. The City was prepared to arrange a site
viewing of the emergency
accommodation site with the Respondents,
which inspection could be arranged through the parties' respective
legal representatives. The
accommodation was available until the end of March 2022.
144.
None of the Respondents accepted the City’s
offer of temporary emergency accommodation, and none attended a site
viewing.
145.
The City repeated the offer at the hearing
of this application, indicating that it could accommodate all of the
affected households
(in other words, all of the Respondents who
indicated that they required assistance, which included the Mdanjelwa
Respondents who
had, at long last, provided questionnaires) at
Mfuleni, in an area otherwise known as Bosasa, which was Phase 1 of
an incremental
development area. Mr Exford gave oral evidence
in relation to the various options open to the City and the
Respondents, and
was cross-examined by the parties’ counsel.
He explained the problems faced by the City given the
increasing numbers
of persons requiring accommodation, and the
scarcity of land available for the establishment of temporary
settlements. The
City is in the process of negotiating with
provincial government to obtain more land for this purpose.
146.
The accommodation to be provided to the
Respondents at Bosasa would be a small house consisting of a 26m²
neotech structure
with a cement floor on a 49m² plot, equipped
with water, a toilet, and electricity. The Respondents could
stay there
for as long as they needed to, or until they could be
moved into formal developments. They would have to pay only for
electricity
on a pay-as-you-go basis.
147.
Bosasa is part of the greater Blue Downs,
Eerste River area. It is 31km out of the city, towards
Somerset-West on the N2.
It is integrated into Mfuleni, which
is well-established with a taxi network to Bellville Station and to
the Cape Town City Centre.
It is not a violent environment, and
the City has security guards on duty overnight.
148.
SOHCO submits that, insofar as this Court
might have a concern that the temporary emergency accommodation
offered by the City in
this matter may not entirely meet the needs of
the Respondents, or fall short of the standards reasonably to be
expected of alternative
accommodation (in other words,
a
concern
that it
is
a
requirement for
an
eviction
to
be
jus
t
/
and equitable that the accommodation be in all respects suitable and
satisfactory), this Court has answered this question recently
on a
number of occasions. It has held, within the particular circumstances
of each matter, that the provision of such temporary
accommodation is
reasonable, particularly taking into consideration the realities
imposed by the vast scale of housing backlogs
that the State in
general, and the City in particular, are constrained to engage with.
This was expressed in various unreported
cases.
149.
In
City
of Cape Town v Natasha Maart and
91
others
[40]
the Court stated:
"It
is correct that the alternative accommodation offered by the
applicant may not meet the needs of the Respondents and they
may find
it unsuitable. This is not the question. The question is whether the
alternative accommodation is reasonable in the circumstances
of the
present matter. I consider it reasonable having regard to the fact
that is an interim arrangement."
150.
In
Maart,
what was offered at a site known as Blikkiesdorp was an 18m2
structure with insulated wooden and metal framework including a roof
and windows, erected on a concrete slab, situated on a site with
electricity, water and
sanitation.
151.
In
City
of Cape Town v Hoosain NO and others
[41]
it
was held as follows:
"Once
it is recognised that emergency accommodation by its very nature will
invariably fall short of the standards reasonably
expected of
permanent housing, it follows that those who need to occupy such
accommodation must accept less than what would ordinarily
be
acceptable. The apparent harshness of an acceptance of this
recognition
has
to
be seen against the realities imposed by the vast scale of the
housing backlogs with which the State, in general, and the City,
in
particular, are having to engage."
152.
The Court in
Hoosain
was unable to find that the provision of 80 temporary housing units
of 24m2 in floor area as emergency shelter to house the displaced
community would be unreasonable.
153.
The structures that have been offered by
the City in the present application, and that certain of the
Respondents in this matter
have rejected in advance, are not
dissimilar to those offered previously by the City in other matters,
and found by the Courts (in the
circumstances of each particular case), to represent reasonable and
acceptable provision of temporary
emergency accommodation.
154.
I
have referred to what was offered in
Maart
and
Hoosain
.
In
Ocean
Monarch CC v Jazman
&
Others
[42]
what was offered, at a site near Philippi, were
container-like
structures constructed from corrugated iron sheeting affording units,
18m2 in size with one small window. These emergency
housing units,
which were at Kampies, had access to shared services such as water
standpipes and sanitation.
155.
In
SOHCO
Property
Investments
NPC
v
Primrose
Jiza
[43]
this
Court granted an eviction order on 10 December 2020, in respect of
other persons occupying units at the Steenberg Project.
In that
matter, the Court ordered that the occupants vacate the dwellings on
a date effectively three months from the date of the
order. It
directed the City to provide temporary emergency accommodation at
Kampies Informal Settlement in Philippi to any of the
Respondents who
may require it, and who had accepted the offer made by the City in
writing. The Court directed that such
accommodation had to be
provided not less than two weeks prior to the date for vacation of
the premises. The Court found, after
lengthy consideration, that the
temporary emergency accommodation offered by the City was sufficient
in the circumstances and noted
that the City was willing to arrange a
site inspection for the occupants to view the site. The order was,
notably, not made subject
to the occupants accepting the site after
they had viewed
it.
156.
The Courts have generally not required (at
the time that the order is made that temporary emergency
accommodation be provided to
evictees), that the local authority in
question identify precisely where that temporary emergency
accommodation will be located,
and exactly what it will constitute.
Such detailed specifications are generally not incorporated in the
Court orders.
157.
The
Constitutional Court was required to consider the temporary emergency
accommodation that was offered to certain evictees who
had been dealt
with in the Constitutional Court's judgment in
Blue
Moonlight supra.
It
did this in
Dladla
v Cit
y
of Johannesburg
.
[44]
The majority judgment pointed out
[45]
that the City was forced, subsequent to the eviction order having
been granted, to determine how to go about providing temporary
accommodation to the evictees in order to comply with the order. The
Court was required to determine whether the City had complied
with
the order that the Constitutional Court had issued in
Blue
Moonlight.
158.
The
majority concluded
[46]
that
the order meant that the City had to provide temporary accommodation
in accordance with general legal standards applicable
to the
provision of temporary accommodation.
The
Court required that the City take reasonable measures, within its
available resources, to prevent
homelessness
on the part of the occupants by providing temporary
accommodation.
[47]
The
Court also emphasized
[48]
that
what the City was required to do (and which was ordered) was to
provide temporary accommodation in line with its Housing Policy.
159.
The
second judgment (whilst supporting the main judgment, but for
different reasons) observed as
follows:
[49]
"
.....the Blue Moonlight order gave no details, no guidance on how the
City was to provide the residents with temporary accommodation.
The
court simply ordered the City to provide the residents with
"temporary accommodation" as near as possible to their
old
homes. It did not say how the City should do this. What type of
accommodation? With or without other people? In family units?
Or
separated by gender? And how many people per room? What meals? What
ablutions? What lockout hours? None of that was before the
Blue
Moonlight court.
And
obviously so. It was the City that was obliged, in fulfilling the
order, to fill out the details.
And
in doing so, it had to act reasonably... “
160.
In
Charnell
Commando
and
25
others v Woodstock Hub (Pty) Ltd and one other
,
[50]
the Court cautioned that the order that the Court
had
made in that matter (which specified, in the particular circumstances
of the case, the area in which the accommodation was to
be located)
did not, as a matter of law, afford evictees in the City a right to
demand to be placed in temporary emergency accommodation
in the area
or location which they lived.
161.
The Court accepted this to be beyond the
remit of the Court's powers in eviction applications, even though
they might be equity
based, as these were by definition matters of
State and policy which required careful and weighty consideration by
those functionaries
who were empowered by law and equipped with the
necessary expertise to deal with them. It was not for the Court to
pronounce on
issues such as where social housing and emergency
housing developments should be constructed. For a Court to
interfere with
this would be a breach of the doctrine of separation
of powers and would constitute an impermissible intrusion into the
domain
of the executive and legislative arms of State. Were a Court
to ascribe such a power to itself, it would place an impossible
burden
on the State, which would result in it having to accommodate
evictees who were going to be rendered homeless, in virtually every
suburb or area in which they lived. For obvious reasons, this
approach was untenable.
162.
In the circumstances, I agree with counsel
that the improved offer made by the City in September 2022 is
reasonable in the circumstances
of this case, and within the means of
the City, taking into account the great demand for emergency
accommodation in the greater
Cape Town
area. The accommodation offered is in
any event far superior to that offered at Kampies or Wolwerivier.
Conclusion
163.
There was thus no reason why the eviction
of the Respondents should not be ordered, and I have done so in the
terms set out at the
outset of these reasons.
164.
There was also no reason for costs
(including the costs of two counsel) not to follow the event, even
though it is unlikely that
SOHCO will be able to recover any costs.
Costs are to be paid by the Respondents jointly and severally, the
one paying, the
other to be absolved.
P. S. VAN ZYL
Acting judge of the
High Court
Appearances
:
For
the Applicant
:
D. W. Gess (with him G.
Samkange), instructed by Foxcroft & Associates
For the First,
Second, Sixth, Seventh, Tenth, Eleventh, Twelfth, Thirteenth,
Fourteenth, Fifteenth, Eighteenth, Nineteenth, Twenty
Second,
Thirty-Second and Thirty-Third Respondents:
E. R. Mentoor II,
instructed by Marlon Shevelew & Associates
For the Third,
Fourth, Seventeenth, Twentieth, Twenty-First, Twenty Third,
Twenty-Fifth, Twenty-Sixth, Twenty-Seventh, Thirty-First
and
Thirty-Fourth Respondents:
Mr Mzantsi, instructed by
PA Mdanjelwa Attorneys
For the
Twenty-Fourth Respondent:
G. Papier, instructed by
September & Associates
For
the Thirty-Fifth Respondent
:
W. A. Fisher, instructed
by Sylvester Vogel Attorneys
[1]
Cit
y
of
Johannesbur
g
Metro
p
olitan
Munici
p
ality
v
Blue Moonli
g
ht
P
ro
p
erties
39
(
P
ty)
Ltd
and another
2012
(2)
SA 104 (CC) at para [40].
[2]
Transcend
Residential Property Fund Ltd v Mati and Others
2018
(4) SA 515
(WCC) at para [3].
[3]
Kommissaris
van Binnelandse Inkomste v Van der Heever
1999
(3) SA 1051
(SCA) at para [10].
[4]
2006
(3) SA 563 (SCA).
[5]
At para [11].
[6]
2018 (3) SA
241 (WCC).
[7]
At para [11].
[8]
At para [14].
[9]
2018 (4) SA
515 (WCC).
[10]
2021 (2) SA 512
(WCC).
[11]
At para [5].
[12]
2019 (3) SA 214
(WCC).
[13]
At para [14].
[14]
[2021]
ZAWCHC 61
(16 March 2021).
[15]
At para [16].
[16]
An
unreported decision under case number A221/2021 of the Full Court of
this Division, delivered on 12 April 2022.
[17]
2020 (3) SA 285
(GJ).
[18]
At para [51].
[19]
Ma
g
ic
Vendin
g
(Pty)
Ltd
v Tambwe and others
2021
(2) SA 512
(WCC),
which concerned
an application in terms of PIE.
[20]
2ed, 1974 at pages
200 to 205. See also
Freestone
Property Investments
(Pty)
Ltd
v Remake Consultants and another
2021
(6) SA 470
(GJ) at para [23];
Trustees
,
B
y
m
y
am
Trust v Butcher Sho
p
and
Grill CC
2022
(2) SA 99
(WCC) at para [94.1].
[21]
2014
(6) SA 315
(CC) at paras [69]-[70].
[22]
Occu
p
iers
,
Berea
v
De
Wet
and
another
2017
(5) SA 346
(CC) at paras [44] to [46]; and see
Cit
y
of
Johannesbur
g
v
Chan
g
in
g
Tides
74
(
P
ty)
Ltd
and others
2012
(6) SA 294
(SCA) at paras [11] to [16].
[23]
2011
(4) SA 337
(SCA) at para [74].
[24]
2012
(2) SA 104
(CC) at para [40].
[25]
Berea
supra
at
368H-369A; and
Cit
y
of
Johannesbur
g
v
Chan
g
in
g
Tides
74 supra
at
para [21].
[26]
See the discussion
in
SOHCO
Pro
p
ert
y
Investments
NPC
v Ramona Se
p
tember
and
23
others,
an
unreported judgment of this Court under case number 18677/2016, an
order being granted on 31 March 2017, and reasons provided
on 2
October 2017. Leave to appeal to the Supreme Court of Appeal
against the judgment was refused on 15 February 2018.
[27]
An
unreported decision of the Kwazulu-Natal Division of the High Court
under case number 14264/2010, delivered on 10 March 2011,
at para
[10]. Leave to appeal was subsequently refused by both the Supreme
Court of Appeal and the Constitutional
Court.
[28]
An
unreported decision of the Kwazulu-Natal Division of the High Court
under case number 11474/2010, delivered on 15 January 2013,
at para
[12]. Leave to appeal was subsequently refused by the Supreme Court
of Appeal and the Constitutional
Court.
[29]
An
unreported decision of the North Gauteng High Court under case
number 35151/2012, delivered on 19 March 2014. See pages
5 and
6 of the judgment.
See
also
Cit
y
of
Ca
p
e
Town v Kha
y
a
Pro
j
ects
(
Pt
y)
Ltd
2016
(5) SA 579 (SCA).
[30]
An
unreported decision in the Kwazulu-Natal Division of the High Court
delivered on 30 November 2012 (see 2012 JDR 2299 (KZD)).
[31]
See
SOHCO
Pro
p
ert
y
Investments
NPC
v Ramona Se
p
tember
and
23
others supra.
[32]
Port
Elizabeth Munici
p
alit
y
v
Various Occu
p
iers
[2004] ZACC 7
;
2005
(1) SA 217
(CC) at para
[37]
.
[33]
See
Mainik
CC v Ntuli and others
[2005]
ZAKZHC 10
(25 August 2005).
[34]
City
of Johannesburg v Blue Moonlight supra
at para [93].
## [35]InBaron
and others v Claytile (Pty) Limited and another2017 (5) SA 329 (CC).
[35]
In
Baron
and others v Claytile (Pty) Limited and another
2017 (5) SA 329 (CC).
[36]
At para [40] of the
judgment.
[37]
At para [50].
## [38]Grobler
v Phillips and others2023
(1) SA 321 (CC) at para [36].
[38]
Grobler
v Phillips and others
2023
(1) SA 321 (CC) at para [36]
.
[39]
I
t
was
the Third, Fourth, Seventeenth, Twentieth, Twenty-First,
Twenty-Third, Twenty-Fifth, Twenty-Sixth, Twenty-Seventh,
Thirty-First
and Thirty-Fourth Respondents who did not deliver
completed questionnaires to the City. These are all the Respondents
represented
by PA Mdanjelwa Attorneys. Those Respondents were
advised by their legal representatives not
to
file
such questionnaires.
[40]
WCHC
case
number 8667/2006, decided on 16 March 2010.
[41]
WCHC
case
number 10334/2011, decided on 20 October 2011.
[42]
[2019]
ZAWCHC 119
(2 September 2019).
[43]
An
unreported decision of this Division under case number
2369/2019,
delivered on 10 December 201
9.
## [44]2018
(2) SA 327 (CC).
[44]
2018
(2) SA 327 (CC).
[45]
At para [5] of the
judgment.
[46]
At para [39].
[47]
At para [40].
[48]
At para [46].
[49]
At para [58].
## [50][2021]
4 All SA 408 (WCC) at para [159].
[50]
[2021]
4 All SA 408 (WCC) at para [159].
sino noindex
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