Case Law[2023] ZAWCHC 286South Africa
Standard Bank of South Africa Limited and Others v Master of the High Court, Cape Town and Others (16103/2022) [2023] ZAWCHC 286 (16 November 2023)
High Court of South Africa (Western Cape Division)
16 November 2023
Headnotes
in terms of the Companies Act 61 of 1973 into the affairs of the Sixth Respondent (Cygne Bleu) is an abusive proceeding and that the evidence given on 13, 14 and 15 July 2022 by the Second to Fifth Respondents at the inquiry be set aside.
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: Western Cape High Court, Cape Town
South Africa: Western Cape High Court, Cape Town
You are here:
SAFLII
>>
Databases
>>
South Africa: Western Cape High Court, Cape Town
>>
2023
>>
[2023] ZAWCHC 286
|
Noteup
|
LawCite
sino index
## Standard Bank of South Africa Limited and Others v Master of the High Court, Cape Town and Others (16103/2022) [2023] ZAWCHC 286 (16 November 2023)
Standard Bank of South Africa Limited and Others v Master of the High Court, Cape Town and Others (16103/2022) [2023] ZAWCHC 286 (16 November 2023)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAWCHC/Data/2023_286.html
sino date 16 November 2023
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Before: The Hon. Mr
Acting Justice De Waal
Date of hearing:
13 November 2023
Date of judgment:
16 November 2023
Case No: 16103 /
2022
THE
STANDARD BANK OF SOUTH AFRICA LIMITED
First
Applicant
GORDON
,
JAYSON
Second
Applicant
FORD,
LLEWELLYN
Third
Applicant
GREEN,
KYLEN
Fourth
Applicant
LANTERMANS,
SHAUN
Fifth
Applicant
and
THE
MASTER OF THE HIGH COURT, CAPE TOWN
First
Respondent
ALAN
RICHARD NEWTON N.O.
Second
Respondent
JOHANNES
HENDRIKUS DU PLESSIS N.O.
Third
Respondent
AYESHA
MOHAMED AYOB N.O.
Fourth
Respondent
CRATOS
CAPITAL (PROPRIETARY) LIMITED
Fifth
Respondent
CYGNE
BLEU (PROPRIETARY) LIMITED
(IN
LIQUIDATION)
Sixth
Respondent
JUDGMENT
DE WAAL AJ:
[1]
In the main application in this matter, the
Applicants are seeking an order that, insofar as they are concerned,
the ss 417
/ 418 inquiry held in terms of the Companies Act 61
of 1973 into the affairs of the Sixth Respondent (Cygne Bleu) is an
abusive
proceeding and that the evidence given on 13, 14 and
15 July 2022 by the Second to Fifth Respondents at the
inquiry be
set aside.
[2]
Given the volume of paper (some 9 lever
arch files), the matter came to me as an early allocation. I
noticed that the Third
and Fourth Respondents (“the
liquidators”) brought an application to file a further
affidavit (“the further evidence
application”) and a
strike-out application on 18 October 2023, i.e. some three
weeks before the date allocated
for the hearing. This
application was opposed by the Applicants, who in turn indicated that
they intended to bring a strike-out
application of their own in
respect of allegations in the liquidators’ founding affidavit
in the further evidence application.
I then convened a meeting
of the parties’ legal representatives for 6 November 2023
at which it was decided that
the main application would not be heard
on 13 November 2023 and that the day would rather be used
for argument on the
various interlocutory applications and the issue
of the costs of the postponement of the main application. I
provided directions
in respect of timelines for the filing of further
papers in the interlocutory applications.
[3]
It turned out that there are five issued
for me to decide:
3.1.
The liquidators’ application to
strike out four paragraphs of the Applicants’ replying
affidavit in the main application
and annexure “
RA1”
thereto;
3.2.
The Applicants’ application to strike
out eleven paragraphs of the founding affidavit in the liquidators’
further evidence
application;
3.3.
An application by Mr W Lüderitz SC
(“Mr Lüderitz”) and Mr Colin Strime
(“Mr Strime”),
i.e. the senior counsel and attorney
acting for the Applicants, to intervene in the proceedings in their
personal capacities;
3.4.
The liquidators’ further evidence
application; and
3.5.
The wasted costs of the postponement of the
main application.
[4]
I deal with the five issues in the above
order. The background to the first issue (the liquidators’
strike-out) gives
sufficient background to the other applications.
# The liquidators’
strike-out application
The liquidators’
strike-out application
[5]
The liquidators’ strike-out
application relates to the following subparagraphs in the Applicants’
replying affidavit:
5.1.
“
8.11.2
I also take liberty at this stage of attaching as “
RA1”
a judgment of a commercial judge in the Johannesburg High Court, Her
Ladyship Justice Opperman (“
Judge
Opperman
”) in which she
has made severe and almost identical findings against Du Plessis in
another matter in which he holds a joint
appointment as liquidator.
This is not a new matter. Mr Du Plessis is well aware of
this judgment.”
5.2.
“
8.11.3
I am advised that the applicants’ counsel will deal with this
judgment and its significance
to this application in argument at the
hearing.”
5.3.
“
8.11.4
In it, Du Plessis unscrupulously favoured certain creditors above
other creditors in a liquidation.
That is precisely what has
taken place in the 6
th
respondent’s insolvency. Here, Du Plessis has clearly
favoured, worked with, acted on the instructions of the 5
th
respondent and thereby prejudiced and acted contrary to the interests
of the remaining creditors of the 6th respondent. As
the 5
th
respondent state in their answering affidavit:
55.1
I admit that Cratos funded the Inquiry.
55.2
Cratos is acting in its own interests, as it is entitled to do.
55.3
The liquidators are acting in the estate’s best interests.
55.4
The interests are aligned.
55.5
There is nothing precluding the liquidators from using the evidence
derived at the Inquiry
for any actions they may wish to take against
Standard Bank, the JSE or any other party.”
[6]
The
judgment referred to in paragraph 8.11.2 of the Applicant’s
replying affidavit is that of Opperman J in the
matter of
Barak
Fund SPC Ltd v Insure Group Managers and Another and related
matters
,
[1]
which is available on SAFLII. This matter has been referred to
in the affidavits as “the
Ericode
matter” and shall do the same.
[7]
From the Applicants’ answering
affidavit in the liquidators’ strike-out, it appears that the
intention of the Applicants
was indeed to contend that the present
ss 417 / 418 inquiry forms part of a pattern of conduct on the
part of the Third Respondent
(“Du Plessis N.O.” or “Mr Du
Plessis” when referred to in his personal capacity) which is
that he
is “
habitually willing –
and despite being publicly admonished by the court – to allow
his office to be abused by a single
creditor
”.
It was contended further in this affidavit by the Applicants that the
judgment of Opperman J is relevant, both
at a factual level and
also as authority for the legal proposition that a liquidator must
act impartially.
[8]
At the beginning of the hearing of the
matter, Mr Claassens, who appeared for the liquidators,
indicated to me that they are
not persisting with the strike-out
application. This disposed of the first issue, save for the
issue of costs. Given
the withdrawal of this interlocutory
application I can see no reason why the liquidators should not pay
the cost thereof.
# The Applicants’
strike-out application
The Applicants’
strike-out application
[9]
To my mind it is logical to deal with the
Applicants’ strike-out application next. The Applicants’
strike-out
is directed at the founding affidavit in the liquidators’
further evidence application. Before determining the latter
it
is necessary to determine what the evidence sought to be introduced
is, i.e. whether any part of the founding affidavit should
be struck
out.
[10]
The background is the
Ericode
matter referred to above.
[11]
Mr Lüderitz did not act for Du
Plessis N.O. in that matter but was asked in or about July 2022
to advise on
the prospects of successfully applying for leave to
appeal against the judgment of Opperman J. The groundwork
for the
opinion was done by junior counsel, Mr P Lourens
(“Mr Lourens”). The advice was that there were
no prospects of success in overturning the cost order
de
bonis propriis
made against Mr Du
Plessis and his attorney Mr D Schikerling
(“Mr Schikerling”) in that matter.
Despite the
advice, Du Plessis N.O. and Mr Schikerling nevertheless went
ahead and filed an application for leave to appeal
which was
eventually withdrawn before the hearing on the advice of another
senior counsel, Mr S Van Rensburg SC
(“Mr Van
Rensburg”).
[12]
Referring to the above, Du Plessis N.O.
makes the following allegations in the founding affidavit of the
further evidence application:
“
13.
My concern and complaint is that the same Lüderitz who acted on
by behalf and instructed by Derick
Schikerling is using that
information against me in the present [the main] application.
15.
I respectfully submit that the only possible basis for
Advocate Lüderitz to have
given the opinion against me and
advising my attorney of record in the Ericode matter to withdraw the
appeal was calculated by
Advocate Lüderitz in order to use
such information against me in an attempt to besmirch my good name
and to bring me
into disrepute with this court. This is
behaviour unbecoming of a professional, especially the calibre of a
senior counsel
of the Republic of South Africa. Further, if the
attorney for the Applicant, Mr Strime, was aware of this, it
further
raises issues with regard to Mr Strime’s integrity
as Mr Strime being a senior practitioner, should know very well
that this should not ever happen.
16.
I respectfully submit that not only is this improper and falls to be
investigated by the
Legal Practitioner (sic) Counsel (sic) but is
also extremely prejudicial.
…
26.
It is somewhat dishonest that the very same advocate who was
instructed to provide an opinion and prepare
a notice of leave to
appeal, for which he charged fees in the amount of [omitted],
NOW
intends to deal with my alleged unscrupulous behaviour.
…
26.
It is such unprofessional behaviour by Lüderitz and Strime that
necessitates this further affidavit.”
[13]
Given that the attack was levelled against
Messrs Lüderitz and Strime, they sought leave to intervene
in the matter in
their personal capacities. That intervention
application and the Applicants’ strike-out application were
argued by
Mr C Eloff SC.
[14]
Mr Eloff described the above
paragraphs to amount to a vicious personal attack against
Messrs Lüderitz and Strime
in a manner which was
scandalous, vexatious and prejudicial to the Applicants and
Messrs Lüderitz and Strime.
[15]
I cannot but agree. I say this for
the reasons set out below.
[16]
Firstly, the opinion prepared by
Messrs Lüderitz and Lourens was provided to Du Plessis N.O.
on 25 July 2022.
The main application was launched on
23 September 2022. The opinion accordingly preceded
the main application (and
particularly the replying affidavit therein
which was filed on 13 March 2023) by many months and could
not possibly have
been provided to besmirch Du Plessis N.O. in
the present matter. It was not contended, nor could it be, that
Mr Lüderitz
gave the negative opinion regarding the
appealability of the
Ericode
matter in order to use same in a different case months down the
line. He is after all not clairvoyant.
[17]
Secondly, neither Mr Lüderitz nor
Mr Lourens previously acted for or on the instructions of
Mr Schikerling.
Mr Lüderitz had also not
previously acted on the instructions of Du Plessis N.O.
There was no reason for either
of the two advocates to “
besmirch
”
Du Plessis N.O. at the time when they compiled their opinion.
[18]
Thirdly, the advice of Messrs Lüderitz
and Lourens were later confirmed by Mr Van Rensburg. This
advice was
followed by Du Plessis N.O.
[19]
Fourthly, Mr Strime became aware of
the
Ericode
matter entirely independently from Mr Lüderitz. It
was not disputed that Mr Strime became aware of the matter
either through Caselines or because it was widely circulated between
insolvency practitioners. It was Mr Strime, who
was not
involved in the
Ericode
matter in any shape or form, who decided to raise the alleged pattern
of behaviour of Du Plessis N.O.
[20]
Fifthly, it was Mr Strime (not
Mr Lüderitz) who drafted the Applicants’ replying
affidavit in which the
Ericode
matter was raised.
[21]
From the above it is clear to me that the
attacks on the integrity of Messrs Lüderitz and Strime are
false and totally
unwarranted. The attacks are moreover:
21.1.
Irrelevant
because
they do not in fact deal with the alleged pattern of behaviour on the
part of Du Plessis N.O. but instead take a swing
at the
professional reputations of Messrs Lüderitz and Strime for
no good reason whatsoever.
21.2.
Scandalous
because
they were abusive and defamatory and intended to convey that
Messrs Lüderitz and Strime are dishonest and contrived
a
stratagem designed and calculated to besmirch Du Plessis N.O.
and to bring him into disrepute with the Court in the main
application. There is absolutely no factual basis for this
contention. As Mr Eloff submitted, there can be little
more defamatory said of an advocate than that his opinion is based on
anything other than his honest and objective judgment.
21.3.
Vexatious
in
that they were worded to harass and annoy the Applicants and
Messrs Lüderitz and Strime.
[22]
The allegations sought to be struck out
were also prejudicial to the Applicants and Messrs Lüderitz
and Strime.
It effectively derailed the main application and
drew the focus away from that application to an irrelevant attack on
the integrity
of the Applicants’ legal team. New counsel
had to be briefed in order to deal with this irrelevant and
unjustified
attack.
[23]
This
means that the paragraphs sought to be struck out falls under all
three categories listed in Uniform Rule 6(15) as interpreted
by
the Court in the well-known case of
Vaatz
v Law Society of Namibia
.
[2]
[24]
For all these reasons, I conclude that the
Applicants’ strike-out application must succeed.
25]
The Applicants sought an order that Mr Du
Plessis and the liquidators’ attorney, Mr Jason Morris
(“Mr Morris”)
pay the cost of the strike-out
application
de bonis propriis
on the attorney-client scale.
[26]
On
this issue, I raised with Mr Eloff the question of whether such
an order can be granted without joining Messrs Du Plessis
and
Morris in their personal capacities. The Constitutional Court
held as follows in
Ex
parte Minister of Home Affairs and Others; In re Lawyers for Human
Rights v Minister of Home Affairs and Others
:
[3]
“
Possible
costs order against the applicants in their personal capacities
[70]
Mindful of the
fact that the applicants, the Minister and the Director General, have
been cited in this application in their official
capacities, the
Chief Justice directed them on 7 June 2023 to show cause on
affidavit why they should not be joined to
the proceedings in their
personal capacities and why they should not be ordered to pay the
costs of the application out of their
own pockets. This accords
with the procedure adopted in Black Sash II, where this Court joined
the Minister of Social Development
for this purpose.”
[27]
The Applicants’ response to my
question was twofold:
27.1.
Reference
was made to
Public
Protector v CSARS
[4]
where the Constitutional Court held that:
“
[47]
. . . in this court the Public Protector alleged that she had not
received notice that a personal costs order would be sought
against
her. According to the Commissioner this was an untruth. Indeed, the
true position is that both in the notice of motion
and founding
affidavit filed at the High Court the Commissioner did indicate that
he was seeking a personal costs order against
the Public Protector.
What was not done was to have her mentioned by name, Ms Busisiwe
Mkhwebane, as a party. But saying that
she had not received notice
that a personal costs order would be sought against her was simply
not true. The truth is that in her
answering affidavit in the High
Court she stated under oath that she had read the founding affidavit
in which the Commissioner
sought a personal costs order against her.
On the face of it, therefore, her assertion before us that there was
no notice in this
regard is astounding and warrants censure and
perhaps more….”
[5]
27.2.
It was submitted that, if considered
necessary, Messrs Du Plessis and Morris be called upon, within
seven days, to show cause
why they should not be joined in their
personal capacities and pay the cost of the strike-out
de
bonis propriis
on a punitive scale.
[28]
On reflection I am persuaded that there is
no need to join Messrs Du Plessis and Morris in their personal
capacities, nor to
give them another opportunity to deal with the
personal and punitive cost order sought against them. As in the
2022
Public Protector
case quoted above, both Mr Du Plessis and Mr Morris were
put on terms in the notice of motion and in the founding affidavit
that a personal and punitive cost order will be sought against them.
They were given a fair opportunity to deal with the
costs order
sought. They have not done so. They have also not taken
the point that they have not been joined in their
personal capacities
or that they would need more time to deal with the issue of personal
and punitive costs.
[29]
In the circumstances, it would be elevating
form over substance to give them yet another opportunity to show why
they should not
be joined in order to pay the costs personally on a
punitive scale.
[30]
Turning to the merits of the costs order
sought, the latest formulation of the test applicable for personal
and punitive cost orders
is contained in the
Home
Affairs
judgment, referred to above,
which was handed down on 30 October 2023. The
following emerged from that judgment
of the Constitutional Court:
30.1.
Imposing
punitive cost on the one hand and cost on a personal basis are two
different issues.
[6]
30.2.
The
tests for these two costs orders may overlap but there must be an
independent, separate enquiry in respect of each order. Such
costs orders are “
extraordinary
in nature and should not be awarded ‘willy nilly’, but
rather only in exceptional circumstances
”.
[7]
30.3.
Punitive
costs
serve to convey a Court’s displeasure at a party’s
reprehensible conduct. A punitive costs order is justified
where the
conduct concerned is extraordinary and deserving of a Court’s
rebuke.
[8]
30.4.
An
order to pay costs in a litigant’s
personal
capacity
,
on the other hand, is made where the litigant’s conduct
demonstrates a gross disregard for their professional
responsibilities,
and where they acted inappropriately and
egregiously. The assessment of the gravity of the conduct is
objective and lies
within the discretion of the Court.
[9]
It bears emphasis that mere ignorance of the law is certainly
not the reason why a Court holds legal representatives accountable.
It is the egregious fashion in which the litigation has been
conducted which triggers the need for such an order.
[10]
Legal practitioners are an integral part of our justice system.
They must uphold the rule of law, act diligently and
professionally.
They owe a high ethical and moral duty to the public in general, but
in particular to their clients and to
the Courts.
[11]
It is improper for counsel to act for a client in respect of a claim
or defence which is hopeless in law or on the facts.
[12]
[31]
Applying these principles to the facts of
the present case, it appears to me that both personal costs and
punitive costs are warranted
in respect of the Applicants’
strike-out application.
[32]
Beginning with personal costs:
32.1.
Both Mr Du Plessis and Mr Morris
are experienced practitioners.
32.2.
They should have known that the attacks on
the integrity of Messrs Lüderitz and Strime were irrelevant
and unwarranted.
There is simply no factual basis from which
one can infer that there was an attempt to besmirch Du Plessis N.O.
32.3.
The attacks were not only unwarranted but
they were vicious in nature, calling into question the honesty of
Messrs Lüderitz
and Strime.
32.4.
In my experience an attack of this kind,
particularly given that it had no factual foundation, is almost
unprecedented.
32.5.
There can be no question that Messrs Du
Plessis and Morris demonstrated a gross disregard for their
professional responsibilities
and acted inappropriately and
egregiously.
[33]
As far as punitive costs are concerned:
33.1.
The conduct of Messrs Du Plessis and
Morris was reprehensible.
33.2.
What weighs heavily is that the opposition
to the strike-out was simply hopeless. It had no reasonable
factual foundation.
It could not be defended by counsel acting
for Messrs Du Plessis and Morris.
33.3.
It was suggested that Mr Morris acted
on instructions. That might be so but Mr Morris drafted
the founding affidavit
the further evidence application. That
affidavit contained the scandalous allegations against
Messrs Lüderitz and
Strime. Mr Morris was as
responsible for what was contained therein as Mr Du Plessis.
The allegations regarding
the integrity of Messrs Lüderitz
and Strime should never have been made in that affidavit. They
should never have
been compelled to deal with these allegations,
including seeking to intervene and appointing another senior counsel
to act for
them.
[34]
For all these reasons I will make an order
that Messrs Du Plessis and Morris are personally liable to pay
the costs of the
strike-out application at the punitive scale.
# The intervention
application
The intervention
application
[35]
Mr Eloff made clear at the hearing of
the matter that the application of Messrs Lüderitz and
Strime to intervene
in their personal capacities is a conditional one
in the sense that it only needs to be determined if the Applicants’
strike-out
application fails.
[36]
Given that the Applicants’ strike-out
application is to succeed in the terms sought, there is no need to
deal with the intervention
application.
# The
further evidenceapplication
The
further evidence
application
[37]
The further evidence sought to be
introduced are the attacks on the integrity of
Messrs Lüderitz
and Strime and the entire record of the ss 417 / 418 inquiry.
[38]
This
Court held as follows regarding the factors to be taken into account
in exercising a discretion to allow the filing of further
affidavits
(i.e. after the founding, answering and replying affidavits are
filed) in
Kootbodien
v Mitchell’s Plain Electrical Plumbing & Building CC
:
[13]
“
[12]
The factors that the court will take into account in the exercise of
its discretion are the following: (a) the reason why the
evidence was
not produced timeously; (b) the degree of materiality of the
evidence; (c) the possibility that it may have been shaped
to
‘relieve the pinch of the shoe’; (d) the balance of
prejudice to the applicant if the application is refused, and
the
prejudice to the respondent if it is granted; (e) the stage which the
litigation has reached; (f) the ‘healing balm’
of an
appropriate order as to costs; (g) the general need for finality in
judicial proceedings; and (h) the appropriateness, or
otherwise, in
all the circumstances, of visiting the fault of the attorney upon the
head of his or her client. (See Erasmus Superior
Court Practice at
B1-47.)”
[39]
I doubt very much whether
any
of the factors favour granting the further evidence application.
[40]
Firstly, regarding the reasons why the
evidence was not presented timeously, there is no proper explanation
for why it took seven
months after the Applicants filed their
replying affidavit to bring the application for the introduction of
the further affidavit.
Ultimately the application was brought
three weeks before the hearing date of 13 November 2023.
It was contended
by Du Plessis N.O. that the new material in the
replying affidavit only came to his attention upon preparing for the
hearing
of the matter with the liquidators’ attorney of record
(Mr Morris) and this only took place on 4 October 2023.
Du Plessis N.O. further states that he had an extraordinary
amount of estates to handle and that he had been tied up in enquiries
since the replying affidavit was served. In my view, these
excuses do not justify a delay of seven months. All Du
Plessis N.O. had to do was to read a fairly short replying
affidavit. That could not have taken him more than a few
hours. Du Plessis N.O. further contends that he was
searching for the opinion of Messrs Lüderitz and Lourens
on
his laptop but was unable to locate same. That is not a good
excuse as Du Plessis N.O. could have obtained the opinion
from
the instructing attorney, Mr Schikerling.
[41]
Secondly,
as far as the degree of materiality of the further evidence is
concerned, the part containing the attack on the integrity
of
Messrs Lüderitz and Strime have already been struck out for
being,
inter
alia
,
irrelevant. The relevance of the entire record of the ss 417
/ 418 inquiry sought to be introduced is not explained
at all.
All that is stated by Du Plessis N.O. is that “
it
is imperative for the abovementioned Honourable Court to read the
entire transcript in relation to this matter, in order to get
a full
and clear picture as to the atrocities that happened in this estate
”
and that “
Further
serious allegations were made by most witnesses against these
Applicants
”.
I am not persuaded by these contentions of Du Plessis N.O.
It is well-established that it is impermissible
to attach a document
to an affidavit without explaining in the affidavit itself what the
relevance of the document is and identifying
the specific portions
relied upon. In the present instance this is all the more so
because the transcript attached to the
affidavit of Du Plessis N.O.
comprises six lever arch files. It cannot be expected of the
other party and the Court
to decipher which parts thereof are
relevant.
[14]
[42]
Thirdly, the timing of the further evidence
application caused considerable prejudice to the Applicants. In
short, given that
it was brought so shortly before the hearing of the
main application and contained very serious allegations which had to
be dealt
with by the Applicants, it was always going to derail the
hearing of the main application. This meant that the Applicants
were deprived of the opportunity to get finality regarding their
involvement in the ss 417 / 418 inquiry.
[43]
Fourthly, given that its contents were
entirely irrelevant, the liquidators can hardly be prejudiced if the
further affidavit is
not admitted.
[44]
Fifthly, the healing balm of an appropriate
order as to costs cannot in the present instance fully compensate the
Applicants.
Due to the late stage at which the application was
brought, it derailed the main hearing and deprived the Applicants of
finality.
[45]
For all these reasons, the further evidence
application is dismissed.
[46]
The Applicants contended that the
liquidators, Mr Du Plessis and Mr Ayesha Ayob (“Mr Ayob”)
should be
ordered to pay the costs of this interlocutory application
de bonis propriis
on the scale as between attorney and own client.
[47]
I was initially inclined to decide the
issue of costs in respect of the further evidence application on the
basis of the allegations
which remained after excising the paragraphs
to be struck out. But on reflection, it appears to me that
Mr Lüderitz,
who argued this aspect for the Applicants, is
correct in that the costs should be determined with reference to the
application
as originally brought.
[48]
It is appropriate to begin with the
involvement of Mr Ayob. In his affidavit in this matter he
indicates that he read
the affidavit deposed to by Du Plessis N.O.,
being the liquidators’ further affidavit, and that he confirms
the contents
thereof as it relates to himself. He further
confirms that Du Plessis N.O. is attending to the administration
of the
estate and has his authority to bring and defend any actions
in any forum regarding the estate.
[49]
In my view, Mr Ayob was not, nor could
he claim to be, an innocent passenger in this litigation. He
signed an affidavit
which is labelled as a confirmatory affidavit but
it is in fact an attempt to abdicate the responsibility for bringing
and defending
legal actions to Du Plessis N.O. This is
most unfortunate and indeed unacceptable.
[50]
Any practitioner who read the affidavit of
Du Plessis N.O., as Mr Ayob claimed he did, would have
insisted on a proper
explanation of the factual basis for the serious
allegations made against Messrs Lüderitz and Strime.
Mr Ayob
does not claim that he did so. He accordingly must
take responsibility together with Mr Du Plessis for the
egregious
failure to comply with their professional duties. For
the reasons already set out above, a personal costs order is
justified
against the liquidators. The attack was irrelevant
and unwarranted.
[51]
Turning to the issue of punitive costs it
seems to me that the same reasoning as in the strike-out applies.
It was a hopeless
application, both in respect of the attacks on the
integrity of Messrs Lüderitz and Strime and the application
for the
introduction of the entire record of the ss 417 / 418
inquiry. The Applicants should never have been put through the
expense and effort of opposing this hopeless case.
# The postponement of the
main application
The postponement of the
main application
[52]
It is the further evidence application
which caused the main application to be postponed. The
postponement was the consequence
of a scandalous, vexatious and
hopeless application. As far as costs is concerned, it should
follow the order in respect
of the further evidence application.
#
# Orders
Orders
[53]
In the result, I make the following orders:
(a)
The costs of the strike-out application
brought by the Third and Fourth Respondents (which was withdrawn) are
to be paid by the
Third and Fourth Respondents, in their official
capacities.
(b)
The Applicants’ application to strike
out the paragraphs or parts thereof listed in paragraph 2 of the
notice of motion
dated 6 November 2023 is granted and the
costs thereof shall be paid by the Third Respondent, Johannes du
Plessis and
the attorney acting for him, Jason Morris, in their
personal capacities
de bonis propriis
on the attorney-client scale, such costs to include the costs of two
counsel (where so employed) and they shall be liable for the
costs
jointly and severally, the one paying the other to be absolved.
(c)
There is no order regarding the costs of
the application by Mr Werner Lüderitz and Mr Colin
Strime to intervene.
(d)
The application for the admission of
further evidence brought by the Third and Fourth Respondents (notice
of motion dated 18 October 2023)
is dismissed and the costs
thereof shall be paid by the Third and Fourth Respondents, Johannes
du Plessis and Ayesha Ayob,
in their personal capacities
de
bonis propriis
on the attorney-client
scale, such costs to include the costs of two counsel (where so
employed) and they shall be liable for the
costs jointly and
severally, the one paying the other to be absolved thereof.
(e)
The main application (notice of motion
dated 23 September 2022) is postponed for hearing on a date
to be allocated by
the Acting Judge-President, failing which the
Registrar of this Court.
(f)
The wasted costs occasioned by the
postponement of the main application (referred to in paragraph (e)
above), shall be paid
by the Third and Fourth Respondents, Johannes
du Plessis and Ayesha Ayob, in their personal capacities
de
bonis propriis
on the attorney-client
scale, such costs to include the costs of two counsel (where so
employed) and they shall be liable for the
costs jointly and
severally, the one paying the other to be absolved.
H
J DE WAAL AJ
Acting
Judge of the High Court
Cape
Town
16 November 2023
APPEARANCES
Applicants’
counsel:
C.M.
Eloff SC in the Applicant’s strike-out and in the intervention
application; and
W.
Lüderitz SC in the other interlocutory applications and the main
application.
Applicants’
attorneys:
Fluxmans
Attorneys (per Colin Strime).
Third
and Fourth Respondents’ (both personal and official capacities)
counsel:
D
Claassens.
Respondents’
attorneys (both personal and official capacities):
Snaid
& Morris Attorneys Inc. (per Jason Morris).
[1]
Case numbers:
(2021/43053;
2021/47302; 2021/50157;2021/41947) [2022] ZAGPJHC 469
(12 July 2022).
[2]
1991
(3) SA 563
(Nm) at 334J – 335A.
[3]
(CCT
38/16)
[2023] ZACC 34
(30 October 2023) at para 70.
[4]
2022
(1) SA 340
(CC) at para 47.
[5]
See, also, paragraph [50] where the Court held as follows:
“This sets the scene for how the Public Protector
came to make
the contentious assertion in the founding affidavit filed in this
court that she was not given notice that a personal
costs order
would be sought against her. In oral argument as well, her counsel
owned up to the fact that it was his idea that
the Public Protector
must adopt this stance [that she had not been joined in her personal
capacity], an idea he wisely abandoned
and did not pursue in oral
argument as it was legally indefensible. So, outlandish though the
Public Protector’s assertion
appears to be, it would be
ignoring all this reality if we were to take it at face value. What
is crucial here is that the assertion
was counsel’s, not the
Public Protector’s, idea. We may criticise the Public
Protector for failing to realise that
the legal point she was
obviously advised to advance was a non-starter. But can we really go
far with that criticism? I think
not. She got that advice from
senior counsel. Of importance, we do not know whether the Public
Protector has any experience in
civil legal practice. And the
Commissioner did not suggest that she does. That for me is the end
of the matter.”
[6]
Public
Protector
at para 91.
[7]
Public
Protector
at
para 91.
[8]
Public
Protector
at para 92.
[9]
Public
Protector
at
para 93.
[10]
Public
Protector
at
para 96.
[11]
Public
Protector
at
para 103.
[12]
Public
Protector
at para
109(b).
[13]
2011 (4) SA 624
(WCC) at para 12.
[14]
See
Swissborough
Diamond Mines (Pty) Ltd and Others v Government of the Republic of
South Africa and other
1999 (2) SA 279
(T) where Joffe J (at 324F) held:
“
Regard
being had to the function of affidavits, it is not open to an
applicant or a respondent to merely annexe to its affidavit
documentation and to request the Court to have regard to it. What is
required is the identification of the portions thereof on
which
reliance is placed and an indication of the case which is sought to
be made out on the strength thereof. If this were not
so the essence
of our established practice would be destroyed. A party would not
know what case must be met.
”
sino noindex
make_database footer start
Similar Cases
Standard Bank of South Africa v van Rooyen and Another (17785/2021) [2024] ZAWCHC 186 (21 June 2024)
[2024] ZAWCHC 186High Court of South Africa (Western Cape Division)100% similar
Standard Bank of South Africa Limited v Van Staden and Another (10690/2023) [2024] ZAWCHC 142 (28 May 2024)
[2024] ZAWCHC 142High Court of South Africa (Western Cape Division)100% similar
Standard Bank of South Africa Ltd v Tchibamba and Another (5642/2018) [2022] ZAWCHC 169; 2022 (6) SA 571 (WCC) (2 September 2022)
[2022] ZAWCHC 169High Court of South Africa (Western Cape Division)100% similar
Standard Bank of South Africa Ltd v Sahara Freight South (Pty) Ltd (16771/2023 ; 16770/2023) [2024] ZAWCHC 447 (25 March 2024)
[2024] ZAWCHC 447High Court of South Africa (Western Cape Division)100% similar
Standard Bank of South Africa Limited and Another v Mandlakomoya Trade and Projects CC and Another (3788/2023) [2024] ZAWCHC 322 (18 October 2024)
[2024] ZAWCHC 322High Court of South Africa (Western Cape Division)100% similar