Case Law[2023] ZAWCHC 208South Africa
Bester N.O v Master of the High Court and Another (17428/2021) [2023] ZAWCHC 208; 2023 (6) SA 199 (WCC) (16 August 2023)
High Court of South Africa (Western Cape Division)
16 August 2023
Headnotes
as follows:
Judgment
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## Bester N.O v Master of the High Court and Another (17428/2021) [2023] ZAWCHC 208; 2023 (6) SA 199 (WCC) (16 August 2023)
Bester N.O v Master of the High Court and Another (17428/2021) [2023] ZAWCHC 208; 2023 (6) SA 199 (WCC) (16 August 2023)
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sino date 16 August 2023
SAFLII
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Certain
personal/private details of parties or witnesses have been
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WILLS AND
ESTATES – Master –
Approval for sale of
property
– Executor needing to sell immovable
property but heir not consenting – Master not responding to
request
for approval – Nature and extent of Master’s
powers under section 47 – Proper consideration of factors
requires further engagement with the parties – Court not in
as good a position as the Master would be to make decision
on the
manner and conditions of sale – Master’s failure to
make a decision reviewed and set aside – Matter
remitted to
Master –
Administration of Estates Act 66 of 1965
,
s 47.
Republic
of South Africa
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case
No. 17428/2021
Before:
The Hon. Ms Acting Justice Hofmeyr
Date
of hearing: 24 July 2023
Date
of judgment: 16 August 2023
In
the matter between:
EUGENE
NICO BESTER N.O
Applicant
in
his capacity as executor of the
ESTATE
LATE DAVID HARTLEY
And
THE
MASTER OF THE HIGH COURT
First Respondent
FULYA
HARTLEY
Second Respondent
JUDGMENT
Judgment
handed down electronically by circulation to the parties’ legal
representatives on email and released to SAFLII
HOFMEYR
AJ:
1
In this application, the executor of a
deceased estate seeks an order authorising him to sell the main asset
in the estate, an immovable
property in Hout Bay, on specified terms
and conditions, so that sufficient funds are realised to finalise the
estate.
2
The application is opposed by the second
respondent who is the widow of the deceased and his sole heir.
3
At the commencement of the hearing, the
attorney representing the second respondent sought a postponement of
the matter. I refused
the postponement and indicated that my reasons
for doing so would be set out in this judgment. The judgment
therefore deals, first,
with the issue of the postponement and,
second, with the merits of the application.
Postponement
4
In
Psychological
Society of South Africa v Qwelane
2017 (8) BCLR 1039
(CC)
,
the Constitutional Court set out the test for postponements as
follows:
“
Postponements
are not merely for the taking. They have to be properly
motivated and substantiated. And when considering an
application for
a postponement a court has to exercise its discretion whether to
grant the application. It is a discretion
in the true or narrow
sense – meaning that, so long as it is judicially exercised,
another court cannot substitute its decision
simply because it
disagrees. The decision to postpone is primarily one for the
first instance court to make.
In
exercising its discretion, a court will consider whether the
application has been timeously made, whether the explanation for
the
postponement is full and satisfactory, whether there is prejudice to
any of the parties and whether the application is opposed.
All
these factors will be weighed to determine whether it is in the
interests of justice to grant the postponement. And, importantly,
this Court has added to the mix. It has said that what is in the
interests of justice is determined not only by what is in the
interests of the immediate parties, but also by what is in the
broader public interest
.”
[1]
5
In this case, the postponement request was
made from the Bar. Ms Fleischer, who appeared for the second
respondent and who indicated
to me that she has had 32 years in
practice as an attorney, explained that the reason for the
postponement was her error in recording
the date of the hearing as
being 24
August
2023
rather than 24
July
2023.
She tendered to pay the wasted costs of the postponement personally.
6
Given her experience in the law, Ms
Fleischer would no doubt have been aware of the warning the courts
have regularly given to practitioners
briefed to move a postponement
application on the day of a hearing: they come unprepared at their
peril.
7
In
the
Shilubana
matter
before the Constitutional Court,
[2]
counsel
had come to the hearing unprepared to present his client’s case
in the event that the application for postponement
had been refused.
Counsel appeared to have assumed that the application for
postponement would be granted. But the Constitutional
Court warned
that it is incumbent upon legal practitioners to appear prepared to
argue the matter on the merits if the postponement
application is
refused. The Court referred to its previous decision in
National
Police Service Union
,
in which it held as follows:
“
Ordinarily
. . . if an application for a postponement is to be made on the day
of the hearing of a case, the legal representatives
. . . must appear
and be ready to assist the Court both in regard to the application
for the postponement itself and, if the application
is refused, the
consequences that would follow
.”
[3]
8
Shortly after Ms Fleischer began addressing
me on the postponement request, I raised with her the fact that I had
no substantive
application for a postponement before me. Ms Fleischer
said that there was no postponement application because there had not
been
enough time to prepare one. However, she went on to say that she
had discovered that the matter had been set down for 24 July, at
10am
the previous morning (Sunday, 23 July 2023) and had spent some time
on the Sunday trying to prepare basic heads of argument
so that the
matter could proceed.
9
Having read the papers in the matter, it
was clear to me that Ms Fleischer was steeped in the case. She had
been acting as the second
respondent’s attorney in all her
dealings with the applicant. She had been responsible for the
pertinent correspondence attached
to the papers setting out the
second respondent’s position. Furthermore, during the course of
arguing for the postponement,
Ms Fleischer, herself, began addressing
the merits of the application.
10
The applicant opposed the postponement. I
was informed that this was the second respondent’s second
postponement request.
The previous postponement was granted by
agreement between the parties because Ms Fleischer had suffered some
personal difficulties
towards the end of last year and so was not in
a position to proceed with the matter in November 2022. That
postponement resulted
in the matter coming before court again only on
24 July 2023 – eight months later.
11
Mr Steenkamp, who appeared for the
applicant, pointed out that a further delay in the matter would
likely result in the case only
being heard in 2024. It would also
mean that further legal costs would be incurred because counsel would
again have to prepare
for, and attend, a further hearing. In the
event that the applicant was successful at the later hearing, those
further costs would
likely have to be paid out of the estate. As the
sole heir of the deceased’s estate, it was the second
respondent who would
be prejudiced most by further legal costs being
incurred in the matter.
12
In the circumstances, I exercised my
discretion to refuse the postponement for six main reasons.
12.1
No substantive application for a
postponement had been prepared. Such an application could have been
prepared in the 24 hours before
the hearing on the 24 July 2023.
However, instead of preparing a proper application for postponement,
Ms Fleischer had turned her
attention to preparing basic heads of
argument for the matter.
12.2
Ms Fleischer was clearly steeped in the
matter. This was evident from her role in the matter over many years
as well as her foray
into the merits of the case during her address
on the postponement application.
12.3
There had been one previous postponement
already to accommodate Ms Fleischer’s difficulties.
12.4
The finalisation of the estate has been
pending for more than five years.
12.5
Further delays in the finalisation of the
matter would involve further legal costs being incurred and if the
second respondent were
to be unsuccessful at that later date, the
costs would be paid out of the estate of which she was the sole heir.
It was therefore
primarily to her detriment for further legal costs
to be incurred in the matter.
12.6
Finally, I had prepared fully to hear the
matter and did not believe that it would be in the interests of
justice to burden another
court with the obligation to hear a matter
that was already ripe for hearing and in which the second
respondent’s interests
could be well represented by her
attorney, Ms Fleischer.
13
I therefore refused the postponement and
the matter proceeded on the merits. I have no doubt that the second
respondent’s
interests were properly represented by Ms
Fleischer. In my engagement with her during the hearing, she revealed
a close understanding
of the facts and the law.
The Merits
Background facts
14
The applicant was nominated as the executor
of the late David Hartley’s estate in his will and was
appointed as the executor
in April 2018.
15
After his appointment, the applicant
appointed a specialised chartered accountant to assist him in
finalising the estate. A liquidation
and distribution account was
drawn up. The estate’s main assets, at the time of the
deceased’s death, were a property
at 1[…] S[…]
B[…], Berg-en-Dal, Hout Bay, two motor vehicles, positive bank
balances in various accounts,
some furniture and a claim against a
debtor, Mr Bradley Lynn.
16
Judgment had been taken against Mr Lynn in
October 2015 before the deceased’s death in the amount of
£27,260. Mr Lynn
had entered into a payment arrangement to
discharge his indebtedness by paying R15,000 a month for some time.
However, at a point
in mid-2020, he started to experience financial
difficulties and ceased the instalment payments.
17
In order to finalise the estate, the
applicant needed to have sufficient funds to pay creditors, the
administration costs of the
estate, the advertising, the Master’s
fees and the executor’s fees. At the time that the application
was launched in
October 2021, this amounted to just over R206,000.
18
The challenge facing the applicant,
however, was that there were no liquid funds available in the estate.
The applicant explained
in his founding papers that in his more than
50 years’ experience as an attorney and conveyancer, he had
come to learn that
the most efficient way to raise cash to finalise
an estate in such a situation was for the heir to make a cash
contribution.
However, the second respondent had not been
willing to do so.
19
The applicant also considered other ways to
obtain sufficient funds to finalise the estate. According to the
applicant, however,
none of these alternatives presented a viable
solution.
19.1
In so far as the estate’s bank
accounts were concerned, the funds in them had been depleted,
presumably for the day to day
living expenses of the second
respondent.
19.2
In so far as the judgment against Mr Lynn
was concerned, given his unwillingness to pay the outstanding debt,
the only option available
would be to apply for his sequestration.
But that would require legal fees to be paid and the estate did not
have any liquid assets
with which to pay those legal fees. Even if
the legal fees could somehow be paid, it was not clear that the
outcome of sequestration
would be to the benefit of creditors as
there may well be no meaningful dividend.
19.3
Securing short-term debt would not be
possible because the estate was unlikely to qualify for a loan, and
even if it did, assets
would in any event have to be sold to repay
the loan.
19.4
Selling the two motor vehicles might
present an option for realising some cash but the applicant did not
know the state of the vehicles
and so could not establish whether
their sale would raise sufficient proceeds. In any event, the sale
would have to be done by
the second respondent as the cars were
registered in her name.
19.5
Finally, selling the estate’s
furniture was unlikely to generate sufficient proceeds because they
were not of substantial
value. In addition, their value was likely to
be sentimental and personal to the second respondent and the
applicant was reluctant
to sell items that would hold that type of
value for the second respondent.
20
In the circumstances, the applicant had
been left with no option but to sell the Hout Bay property. However,
the second respondent
does not want the property to be sold.
21
Under
section 47
of the
Administration of
Estates Act 66 of 1965
, such a sale requires the heir’s consent
to the manner and conditions of the sale and, if such consent is not
given, then
the property is to be sold in a manner and on conditions
approved by the Master.
22
The applicant therefore wrote to the Master
in September 2020 to seek his approval of the proposed manner and
conditions of the
sale.
23
However, there was no response from the
Master’s office for many months. Despite the applicant’s
numerous follow-up
letters, by June 2021, there still had been no
response. The applicant then wrote to the Minister of Justice to seek
his assistance
but that letter, too, went unanswered.
24
As a result of these challenges presented
by the dysfunction of the Master’s office, the applicant
decided to approach this
court to approve the manner and conditions
of sale of the estate’s immovable property.
The legal test
25
Section 47
of the
Administration of Estates
Act reads
as follows:
“
Sales
by executor
—
Unless it is
contrary to the will of the deceased, an executor shall sell property
(other than property of a class ordinarily sold
through a
stockbroker or a bill of exchange or property sold in the
ordinary course of any business or undertaking carried
on by the
executor) in the manner and subject to the conditions which the heirs
who have an interest therein approve in writing:
Provided that—
(a) in the case where
an absentee, a minor or a person under curatorship is heir to the
property; or
(b) if the said heirs
are unable to agree on the manner and conditions of the sale,
the
executor shall sell the property in such manner and subject to such
conditions as the Master may approve
.”
26
In
the case of
Essack
v Buchner NO and Others
1987
(4) SA 53
(N), the Natal Provincial Division of the High Court held
that the section relates to the manner and conditions of sale of
estate
property by the executor, and not to the decision whether or
not to sell. According to the court, that decision falls within the
discretion of the executor alone. He merely requires approval as to
the way in which he intends to carry it out.
[4]
This
approach has been followed in more recent decisions as well.
[5]
27
In cases where the heirs do not agree with
the manner and conditions proposed by the executor, the Master can
then provide approval.
Ordinarily, in such a situation, the executor
would approach the Master for approval. That step was attempted in
this case but
the Master simply did not respond, despite repeated
follow-ups.
28
So
the applicant was eventually forced to approach the court directly
for approval. In the founding papers, the applicant correctly
identified that the Master’s failure to take a decision
constituted administrative action
[6]
and
presented a case for the exceptional remedy of substitution. The
basis for substitution was twofold. The applicant argued that
remitting the matter to the Master would be a futile exercise given
the general state of dysfunction in the office of the Master.
He also
contended that the further delay in awaiting the Master’s
decision would be prejudicial.
29
The second respondent advanced five main
grounds on which she resisted the relief claimed.
29.1
First, the second respondent alleged that
the funds required to finalise the estate would have been forthcoming
if the applicant
had more diligently pursued collection of the debt
owed by Mr Lynn.
29.2
Second, she contended that she had not been
asked to consent to the sale of the immovable property.
29.3
Third, she complained that the fees that
the applicant had charged as executor were too steep.
29.4
Fourth, there was an allegation that
selling the immovable property would be inconsistent with the terms
of the will.
29.5
Finally, the second respondent said that
selling the immovable property would leave her without a home.
30
I deal with each of these, in turn, below.
Collection of the debt
31
The second respondent complains that the
sale of the property is not necessary because, if the applicant had
simply done his duty
and diligently collected the debt from Mr Lynn,
there would be sufficient funds to finalise the estate.
32
There are two problems with this claim,
however. The first is that it is made at the level of assertion
without any facts to support
it and, second, it fails to take into
account the costs of proceeding against Mr Lynn.
33
The applicant set out in the founding
affidavit that, as at October 2021, an amount of approximately
R206,000 was required to finalise
the estate. The second respondent’s
answer to this was to list certain of the estate’s expenses
that she had paid.
But even if one deducted the payments that the
second respondent had made since October 2021, when the application
was launched,
at least R150,000 would still be required.
34
Whether pursuing Mr Lynn would produce
enough cash to cover this amount is unclear from the papers. At no
point, does the second
respondent indicate precisely what amount
remains to be recovered from Mr Lynn. There is at least one
indication in the papers
that his remaining outstanding indebtedness
was standing at R120,000 in November 2020, which would have been
insufficient to finalise
the estate.
35
But even if that were not so, and repayment
by Mr Lynn of his full indebtedness would be sufficient to allow for
the finalisation
of the estate, that recovery will come at a cost.
There is a dispute on the papers about whether Mr Lynn in fact has
the financial
means to discharge his indebtedness. But even if he
were
able
to
do so, as the second respondent contends, he has not been
willing
to do so since mid-2020. This means that legal
fees will inevitably have to be paid by the estate to pursue further
legal remedies
against Mr Lynn. Those legal services will come at a
cost and the estate has no cash currently available to it to cover
those fees.
Consent to the sale
36
The second respondent asserts that she has
not been asked to consent to the sale of the property. However, it is
clear from her
opposition to this application that she does not
consent and will not agree to the manner and conditions of sale, as a
result.
That is enough to entitle the applicant to approach the
Master to approve the manner and conditions of sale.
The executors’
fees
37
The second respondent complains that the
executors’ fees are too high. The applicant says that they are
not because they are
in terms of the express provisions of the will.
However, even on the assumption that the second respondent is
correct, it is not
clear why this is a reason not to approve the
manner and conditions of the sale of the Hout Bay property. Even if
the applicant’s
fees were cut in half, the estate would remain
illiquid and there would be no way to finalise it.
38
In
any event, the second respondent has various remedies available to
her to deal with the claimed excesses of the applicant’s
fees.
She may lodge a complaint with the Legal Practice Council if the
complaints relate to his professional fees.
[7]
She
may also take steps to have the applicant removed as executor if she
believes he has abused his fiduciary responsibilities.
[8]
But
the second respondent has not pursued these remedies.
Inconsistency with the
will
39
At a point in the answering affidavit, the
second respondent claims that selling the Hout Bay property would be
inconsistent with
the will. However, she never identifies the
particular provision of the will that is alleged to preclude such a
sale. She is, in
any event, incorrect. The will does the opposite; it
vests the power to make the decision to sell the assets of the estate
in the
sole discretion of the executor.
The home
40
The second respondent’s final ground
of opposition is that selling the Hout Bay property would leave her
“without a
home”. At the hearing of the matter, I queried
this statement with Ms Fleischer because it seemed, from everything
else that
had been said in the answering affidavit, not to be an
accurate statement.
41
The value of the Hout Bay property is not
insignificant. The value referred to in the liquidation and
distribution account and in
the papers is approximately R3.5 million.
If the property were to achieve that type of sale price, there is no
indication that
the second respondent would be unable to purchase
another property as her home. Mr Fleischer fairly conceded that when
the second
respondent had said that she would be left without “a
home”, it was clear that she had meant “that home”
– the Hout Bay home.
42
It is correct that the second respondent
will be left without the Hout Bay home, if the sale were to take
place. However, as the
applicant repeatedly pointed out in the
founding papers and in his correspondence with the second respondent
preceding the institution
of litigation, the second respondent can
take steps to avoid the sale of the property. She could sell the
motor vehicles, or otherwise
obtain funding, to provide the estate
with sufficient cash so that it can be finalised.
43
The second respondent has refused to do so,
it seems, because she believes that the applicant must first pursue
Mr Lynn for the
outstanding debt. But, for the reasons given above,
this is not a viable option for the applicant because is it not clear
that
pursuing Mr Lynn would produce sufficient cash and, even if it
could, litigating against Mr Lynn would require legal fees to be
paid
that the estate is not in a position to cover given its illiquidity.
Conclusion of grounds
of opposition
44
None of the second respondent’s
grounds of opposition therefore survives scrutiny. More importantly,
however, her complaints
do not found a legal basis on which to refuse
the relief sought. This is primarily because the deceased’s
will gave the power
to decide whether sell the estate’s assets
exclusively to the applicant. His power to make this decision is also
recognised
by the legislature in
section 47
of the
Administration of
Estates Act. Given
that it is his decision, alone, to make, there are
two remaining questions. The first is what the nature and extent of
the Master’s
powers under
section 47
are and the second is
whether this court should substitute the decision of the Master.
The Master’s
power under
section 47
0cm; line-height: 150%">
45
In
Davis
and Another v Firman NO and Others
.
[9]
Levinsohn
J dealt with the proper interpretation of section 47 of the
Administration of Estate Act. The analysis began with the
forerunners
to the section in both statute and common law.
46
Levinsohn J highlighted that an executor
holds an office
sui generis
and referred to the now century-old description of
the executor’s duties in
Ex Parte
Lebaudy's Executor
1922 TPD 217
at 219,
where de Waal J held as follows:
“
Now
it is the duty of an executor to liquidate the estate of which he has
the administration as speedily as possible. He must promptly
pay all
debts and legacies due by the estate, and for that purpose, if funds
are wanting, he must realise some or all of the assets
of the estate,
as the case may require.
”
47
Levinsohn
J emphasised, however, that the powers of an executor are not
unfettered. Thus, while an executor is enjoined to realise
estate
assets to pay the debts of the estate, “he does not possess an
unfettered right in regard to the manner in which he
or she can
proceed to achieve this.”
[10]
48
According
to Levinsohn J, there is a “golden thread” running
through all of the developments in the law that he analysed.
It is
that if any estate assets are to be sold, the best possible price
must be attained for the benefit of the heirs.
[11]
He
also held that even in a case where there is a single heir, as
opposed to a number of heirs, if the single heir did not consent
to
the manner and conditions proposed for the sale by the executor, the
executor would be required to approach the Master for approval.
[12]
49
Davis
and Another v Firman NO and Others
has
been followed in a number of subsequent decisions.
[13]
50
It is clear, therefore, that the Master
plays an oversight role in relation to the manner and conditions of
sale of an estate’s
assets. In situations like this one, where
there is a sole heir who has not consented, the Master’s
approval is required.
51
The question that arises is how broad the
Master’s discretion is to approve the manner and conditions of
sale. In this matter,
the question is particularly important because
the court has been asked to substitute the decision of the Master. It
is therefore
necessary to have an understanding of nature and extent
of the Master’s powers because, in substituting the Master’s
decision, the court must take care to ensure that it is exercising
the same power that the Master has been given under the statute.
The
power must be the same power as that which the Master exercises
because the court is stepping into the shoes of the Master
when it
substitutes his decision. A court that decides that substitution is
an appropriate remedy is deciding to substitute rather
than remit the
decision to the functionary who originally made it. So the court must
exercise no more and no less than the power
that the functionary
would exercise.
52
The
proper interpretation of the section must take into account its text,
context and purpose.
[14]
53
In so far as the text is concerned, the
relevant part of section 47 reads as follows:
“…
the
executor shall sell the property in such manner and subject to such
conditions as the Master may approve.
”
54
The language of the section is consistent
with the Master exercising a discretion to determine the manner and
conditions of the
sale because it refers to “such manner and
subject to such conditions as the Master may approve”. The use
of the word
“may” indicates that the Master is not
limited to merely approving or rejecting the manner and conditions
that the
executor proposes. On the contrary, the language of the
section indicates that the sale will be authorised in such manner and
subject
to such conditions as the Master determines. This signifies a
broad discretion.
55
The discretion is not, however, unguided.
It is a discretion that will have to be exercised in the light of the
purpose of the section.
That purpose, as I have highlighted above,
has been found by the courts to be to attain the best possible price
for the benefit
of the heirs.
56
Furthermore, it is clear from the context
of section 47 as a whole, that the legislature was concerned to
ensure that the views
of the heirs would be taken into account in
determining the manner and conditions of a sale of an estate’s
assets. This is
evident from the fact that the legislature provided
that executors were, first, to seek to secure the agreement of the
heirs to
the manner and conditions of sale. It is only in the event
that agreement is not forthcoming, that the Master must be
approached.
But even when that takes place, the views of the heirs
will be a relevant consideration for the Master to take into account.
57
I therefore conclude that the Master’s
discretion under section 47 is a broad one, to be exercised in the
light of the overall
purpose of obtaining the best possible price for
the heirs, and in the light of the heirs’ views about the
manner and conditions
proposed by the executor.
58
The final question is whether the court
should substitute the decision of the Master.
Substitution
59
The
applicant justified an order of substitution in this case on two main
grounds – the delay in sending the matter back to
the Master
and the general state of dysfunction in the Master’s office. He
did not, however, advance any submissions on the
other two
considerations that usually feature in a case of substitution
following a review under
Promotion of Administrative Justice Act 3 of
2000
. Those considerations are whether the court is in as good a
position as the functionary to make the decision and whether the
decision
is a foregone conclusion.
[15]
60
The balancing of interests that is required
in a case such as this one where the executor’s duty to
finalise the estate as
swiftly as possible knocks up against the
objective of ensuring the best possible price for a sale of the
primary asset in the
estate, is a difficult task.
61
The challenges posed by such a balancing
exercise are borne out by the manner in which this case has unfolded.
At the hearing of
the matter, I raised with the parties various
alternative formulations to the manner and conditions of sale
proposed by the applicant
in order to establish whether there were
ways in which to accommodate some of the second respondent’s
concerns about the
sale of the property.
62
At the conclusion of the hearing, I
requested both parties to provide me with a proposed draft order
addressing the issues that
had been discussed during the debate in
court. It became clear on receipt of those drafts that each party
ought to be afforded
an opportunity to make submissions of the draft
of the other party. I therefore also gave them a further opportunity
to provide
submissions on their drafts.
63
The issues that were canvassed during the
hearing included:
63.1
whether to delay the sale of the property
to afford the second respondent an opportunity to settle the
liabilities and expenses
of the estate so that it could be finally
wound up without the need to sell the property; and
63.2
the setting of a reserve price for the
property.
64
I received further submissions from the
parties on these issues. Those submissions and the complexity of
their resolution makes
it clear that this court is not in as good a
position as the Master would be to approve the manner and conditions
of sale. I give
just one example of this complexity.
65
In her proposed draft order, the second
respondent sought to place a Lexis Nexis valuation report before the
court to justify a
R5 million reserve price for the property. The
applicant objected to this on the basis that it amounted to evidence
from the Bar
but did not then provide any independent justification
for his own, much lower, proposed reserve price of R2.5 million. In
objecting
on this basis, the applicant overlooked the fact that it
was he who had sought a substituted remedy from the court. When a
court
decides to substitute a decision of a functionary, it must
exercise the same power as the functionary and therefore consider the
factors that such a decision requires be taken into account. In this
case, the proper consideration of those factors requires further
engagement with the parties and a further opportunity for them to
justify the reserve price that, they say, should be applied to
the
sale.
66
The court is therefore not in as good a
position as the Master would be to make the decision on the manner
and conditions of sale.
It is also clear from the difficulties
highlighted above that the selection of the manner and conditions of
sale is not a foregone
conclusion.
67
I therefore find that this court is not in
a position to substitute the decision of the Master. In making this
determination, I
have not overlooked the fact that the Master has
been grossly dilatory in failing to respond to the applicant’s
request for
approval under
section 47
of the
Administration of
Estates Act. However
, the Master has not previously been under court
order, with a specified timeframe within which to make this
determination.
68
In
the face of a court order directing the Master to make the
determination under
section 47
of the Act within a specified period
of time, any wilful failure on the Master’s part to comply with
the order would amount
to contempt of court.
[16]
Conclusion and costs
69
I therefore conclude that the review of the
Master’s failure to take a decision under
section 47
of the
Administration of Estates Act should
succeed. However, this is not an
appropriate case for an order of substitution. The matter will
therefore need to be remitted to
the Master with a requirement that
the decision be taken within two months of the order.
70
The
final issue in the application is one of costs. It is customary in
matters of this nature
[17]
for
the applicant’s costs to be borne by the estate on an attorney
and client basis in order to, as fully as possible, recompense
the
applicant for the costs of litigation incurred in the exercise of his
duties as executor. I see no reason to depart from that
ordinary
approach.
Order
71
I therefore make the following order:
(a)
The first respondent’s failure to
make a decision in response to the applicant’s request for
approval under
section 47
of the
Administration of Estates Act 66 of
1965
is reviewed and set aside.
(b)
The decision is remitted to the first
respondent.
(c)
The first respondent is directed to make a
decision on the manner and conditions of the sale of the immovable
property known as
1[…] S[…] B[…], Berg-en-Dal,
Hout Bay (“the property”) within two months of the date
of service
of this order on the first respondent.
(d)
In making the decision on remittal, the
first respondent is directed to call for representations from both
the applicant and the
second respondent on the appropriate manner and
conditions of sale and to consider those representations before
making the decision.
(e)
The costs of this application will be costs
in the estate, on a scale as between attorney and client.
(f)
The applicant is directed within 5 days of
this order, to serve a copy of the order on the first respondent.
K HOFMEYR
ACTING JUDGE OF THE
HIGH COURT
APPEARANCES
Applicant's
counsel:
Adv J-P Steenkamp
Applicant’s
attorneys:
E N Bester & Associates
Second
Respondent's counsel: Ms J G Fleischer
Second
Respondent's attorneys: Janice Fleischer Attorneys
[1]
Psychological
Society of South Africa v Qwelane
2017 (8) BCLR 1039
(CC) para 30
[2]
Shilubana
and Others v Nwamitwa (National Movement of Rural Women and
Commission for Gender Equality as Amici Curiae)
[2007] ZACC 14
;
2007
(5) SA 620
(CC) para 15
[3]
National
Police Service Union and Others v Minister of Safety and Security
and Others
2000 (4) SA 1110 (CC) 1113D
[4]
Essack
v Buchner NO and Others
1987 (4) SA 53
(N) 57C
[5]
See,
for example,
Govindasamy
v Pillay
2020 JDR 2169 (KZD) para 18 and
Jackson
v Cawood
2017 JDR 1379 (LP) paras 29 and 30
[6]
Nedbank
Ltd v Mendelow and Another NNO
2013 (6) SA 130
(SCA) para 28. As I set out in more detail later in
the judgment, the Master’s power under
section 47
of the
Administration of Estates Act clearly
involves a choice and is
therefore discretionary in the relevant sense to qualify it as
administrative action.
[7]
The
complaint would be lodged with the Legal Practice Council in terms
of
section 3
, read with
section 38
, of the
Legal Practice Act 28 of
2014
[8]
Volkwyn
NO vs Clarke and Damant
1946 WLD 456
at 456
[9]
Davis
and Another v Firman NO and Others
2000 JDR 0619 (N)
[10]
Davis
and Another v Firman NO and Others
p13
[11]
Davis
and
Another v Firman NO and Others
p13
[12]
Davis
and
Another v Firman NO and Others
p16
[13]
Kisten
and Another v Moodley and Another
(13043/2012) [2016] ZAKZDHC 31 para 31;
Govindasamy
v Pillay
2020 JDR 2169 (KZD) para 19
[14]
Close-Up
Mining and Others v Boruchowitz NO and Another
2023 (4) SA 38
(SCA) para 23
[15]
Trencon
Construction (Pty) Ltd v Industrial Development Corporation of South
Africa Ltd and Another
2015 (5) SA 245
(CC) para 47
[16]
Fakie
NO v CCII Systems (Pty) Ltd
[2006] ZASCA 52
;
2006 (4) SA 326
(SCA) para 42
[17]
Steel,
NO & Another v Davis & Another
1950 (3) SA 432
(W) 441F - 442C;
Tshabalala
v Hood
1986 (2) SA 615
(O) 619I – 620A
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