Case Law[2022] ZAWCHC 233South Africa
Trustees of Alessio Body Corporate v Cottle and Others (A38/2022) [2022] ZAWCHC 233; 2023 (4) SA 274 (WCC) (15 August 2022)
High Court of South Africa (Western Cape Division)
15 August 2022
Headnotes
an appeal to the High Court against a decision of the adjudicator contemplated in Section 57 of the CSOS
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Trustees of Alessio Body Corporate v Cottle and Others (A38/2022) [2022] ZAWCHC 233; 2023 (4) SA 274 (WCC) (15 August 2022)
Trustees of Alessio Body Corporate v Cottle and Others (A38/2022) [2022] ZAWCHC 233; 2023 (4) SA 274 (WCC) (15 August 2022)
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sino date 15 August 2022
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case
No.:
A38/2022
CSOS
Ref:
CSOS886/WC/20
Via
Microsoft Teams on Friday 29 July 2022
In
the matter between:
TRUSTEES
OF ALESSIO BODY
CORPORATE
Appellant
and
LEE
COTTLE
First Respondent
THE
COMMUNITY SCHEMES OMBUD SERVICES
Second Respondent
LULAMA
MATYOLO
N.O
Third Respondent
JUDGMENT
(Electronically
Delivered on 15 August 2022)
GOLDEN
AJ
:
[1]
This is a statutory appeal against an
adjudication order made by the third respondent in his capacity as
adjudicator in terms of
Section 54 of the Community Schemes Ombud
Service Act, 9 of 2011 (“
the CSOS
Act
”). Section 57(1) of the CSOS
Act provides as follows:
“
Right
of Appeal
57.(1)
An applicant, the association or any affected person who
is
dissatisfied by an adjudicator’s order, may appeal to the High
Court, but only on a question of law.
[2]
The issue before the adjudicator arises
from a dispute which was referred to it by the first respondent, Mr
Lee Cottle (“
Cottle
”)
who is the owner of apartment 1 in the Alessio Sectional Title Scheme
(“
Alessio
”)
situated at 5 North Umbria Road, Sea Point, Cape Town, and which is
managed by the appellant as the body corporate. There
are only 4
apartments in the building. Save for Cottle’s apartment which
is located on the ground floor with its own entrance,
apartments 2,3
and 4 each occupy a floor in the building.
[3]
The appellant resolved to raise a special
levy in the amount of R295 000.00 (two hundred and ninety-five
thousand Rand) to
pay for the replacement of the lift. The special
levy was payable by all members of the scheme (of which there are
only four),
including Cottle. Counsel for the appellant confirmed in
the hearing that the appellant required Cottle to pay a full equal
share
of the replacement costs.
[4]
It is the appellant’s position that
Cottle is obligated to contribute to the replacement costs of the
lift which it asserts
forms part of the common property of the scheme
irrespective of whether Cottle enjoys the use thereof.
[5]
Cottle referred a dispute to CSOS on the
basis that he did not consider it fair and reasonable that he was
required to contribute
to the purchase of a new lift for the
building, which, in his view, was for the exclusive use of the owners
who occupied apartments
2, 3 and 4.
[6]
His objection was based on the fact that
the lift is for the exclusive use of apartments 2, 3 and 4, and that
the lift accesses
each apartment by directly opening up into the
living rooms of each apartment and which is behind a locked front
door. Lift access
is only via a security key of the owner of the
apartment. As the owner of apartment 1, which is located on the
ground floor with
a separate ground floor entrance, he does not
possess such a lift security key, and cannot access nor use the lift.
[7]
Cottle sought an order declaring that the
contribution levied to him for the part and equal payment of the
purchase of a new lift
is deemed unreasonable. He sought an
adjustment of his monthly contribution levy to be corrected.
[8]
The adjudicator found that the relief
sought by Cottle was supported by the proviso to Section 3(1)(c) of
the Sectional Title Schemes
Management Act No 8 of 2011 (‘the
Act”), and that the body corporate must levy additional
contributions from the holder
of an exclusive use right.
[9]
When considering the issues of “
common
property
” and “
exclusive
use areas
”, the adjudicator found
that since the lift was exclusively used by Units 2, 3 and 4, they
should pay for the lift as they
use it exclusively. Accordingly, and
in terms of
Section 37(1)(b)
of the
Sectional Titles Act 95 of 1986
,
the adjudicator found that those who do not have access to exclusive
use areas should not be burdened with the cost of maintenance
and
repair of areas in respect of which they cannot use or enjoy.
[10]
The adjudicator accordingly found in favour
of Cottle that the demand for a contribution for the purchase of the
lift was unreasonable
and that it must be withdrawn. She also found
that only the costs of maintaining the lift be deducted from Cottle’s
account.
[11]
Dissatisfied with the adjudication order,
the appellant filed its appeal in terms of Section 57(1) of the CSOS
Act, which now serves
before this Court.
[12]
The issue as to whether the correct appeal
procedure was followed was raised with the appellant’s counsel
at the outset of
the hearing given that the appellant had elected to
prosecute its appeal by way of a Notice of Appeal rather than the
procedure
which is set out in two decisions of this Division. The
misplaced opportunity for exercising this choice arises from the
differing
judicial opinion as to how these appeals ought to be
brought. It may not be readily apparent from Section 57(1) of the
CSOS Act
or the Rules of the High Court what procedure should be
adopted on appeal, but the authorities of this Division have made the
procedure
clear.
[13]
The appellant contends that the correct
procedure to follow in order to institute an appeal as contemplated
in Section 57(1) of
the CSOS Act, is that approach which has been set
out by the full court in
Stenersen and
Tulleken Administration CC v Linton Park Body Corporate and Another
(A3034-2018) [2019] ZAGPJHC 387;
2020 (1) SA 651
(GJ). In
Stenersen
,
the full court held that an appeal to the High Court against a
decision of the adjudicator contemplated in Section 57 of the CSOS
Act is an appeal in the ordinary strict sense with the proviso that
the right of appeal is limited to questions of law only.
[14]
The appellant contends that
Stenersen
sets out the correct procedure to
follow on appeal, and is to be preferred over the procedure
pronounced upon in the cases of
Ellis v
Trustees of Palm Grove Body Corporate and Others
(W293/2020P) [2021] ZAKZPHC 97 (7
December 2021),
Trustees for the Time
Being of the Avenues Body Corporate v Shmaryahu and Another
2018 (4) SA 566
(WCC) and
Kingshaven
Homeowners Association v Botha and Others
(6220/2019)
[2020] ZAWCHC 92
(4 September 2020).
[15]
The basis of the appellant’s argument
that the approach in
Stenersen
is the correct procedure is set out in paragraphs 2.4.1 to 2.4.20 of
its heads of argument. It is not necessary for purposes of
this
appeal to deal with all of them in turn. One such ground for its
reliance on
Stenerson
is that an appeal in the ordinary strict sense before the High Court
would be governed by the provisions of Uniform Rule 50, as
qualified
by the provisions of Section 57 of the CSOS Act where the appeal is
confined only to a question of law. Accordingly,
so the appellant
argues, it would not be appropriate to adopt the procedure set out in
the third category of appeals in
Tikly
and Others v Johannes N.O. and Others
[1963]
3 ALL SA 91
(T) namely, that “
a
review, that is a limited rehearing with or without additional
evidence or information to determine, not whether the decision
under
appeal was correct or not, but whether the arbiters had exercised
their powers and discretion honestly and properly
”.
It further contends that the determination of questions of fact is
exclusively afforded to the adjudicator who conducts
the proceedings
inquisitorially and has powers to investigate, examine documents and
persons, and to conduct inspections.
[16]
The Western Cape Division has adopted a
different view as to the correct procedure on appeal in two
decisions.
[17]
In the case of
The
Avenues Body Corporate
, Binns-Ward J
(Langa AJ concurring), held that an appeal in terms of Section 57 is
not a “
civil appeal
”
within the meaning of the
Superior Courts Act, 10 of 2013
, and that
the relief available in terms of Section 57 of the CSOS Act is
closely analogous to that which might be sought on judicial
review.
According to Binns-Ward J, the appeal is accordingly one that is most
comfortably niched within the third category of appeals
identified in
Tikly
. The
proper manner in which such an appeal should be brought is upon
notice of motion supported by affidavits, which should be
served on
the respondent parties by the Sheriff.
[18]
Binns-Ward
J confirmed the procedure on appeal in a later judgment delivered on
4 September 2020 in
Kingshaven
Homeowners Association.
[1]
In paragraph [21] he held that a proper determination on a question
of law might also in a given case even be hindered or blocked
entirely by a
lacuna
in the founding facts and in such a matter the question of whether or
not the founding facts disclose such a
lacuna
can also legitimately be a matter for argument. Further, that a close
examination of the findings on the merits may only be properly
understood upon a consideration of the underpinning evidence and
where there would be no question of a neat isolation of a question
of
law. The learned judge held that advancing and distilling the
relevant points of law in such circumstances is better facilitated
by
way of an exchange of affidavits than on the basis of a notice of
appeal setting forth the grounds of appeal. On the other hand,
if the
question of law in a given case can be simply and succinctly stated,
as might frequently happen, proceedings on notice of
motion do not
have to be voluminous. In such a case, the supporting papers should
be short and to the point, and the answer might
appropriately be
given in accordance with Rule 6(5)(d) of the Uniform Rules, and not
on affidavit.
[2]
[19]
The
procedure adopted by this Court in
Avenues
Body Corporate
and
Kingshaven
was later in the same year endorsed by the full bench of the
Kwazulu-Natal High Court in
Jan
Christian Ellis v Trustees of Palm Grove Body Corporate
[3]
.
The court in
Ellis
held that there was no reason to depart from the procedure set out in
Avenues
Body Corporate
acknowledging at the same time the benefits of adopting the motion
procedure as set out in
Avenues
and
Kingshaven
.
It added that the facts contained in the affidavits will assist in
bringing the point of law to the fore as it has been acknowledged
that at times it is difficult to decide a point of law in isolation
from the facts.
[4]
[20]
The
court in
Ellis
had the following to add in relation to the motion procedure. It held
that the appellant in an appeal will have to file a notice
of motion
to be served on the respondents so that they may respond if they
wished to within the time limits provided for in Uniform
Rule 6(5).
The affidavit accompanying such a notice should not be longer than
ten pages, so as to curb the costs, and it must succinctly
state the
grounds upon which it is averred that the adjudicator erred on a
point of law together with a brief background of the
facts leading to
such a dispute. Should the respondent wish to respond, their
affidavit(s) also should not be longer than ten pages
with the
applicant’s replying affidavit limited to six pages. Once the
affidavits have been filed, the appeal will follow
the practice
directives provided for in opposed motions including the filing of
heads of argument, should same be opposed.
[5]
[21]
I am of the view that the procedure as set
out in
Avenues Body Corporate
as
confirmed by
Ellis
is the correct procedure to adopt on appeal in the Western Cape
Division and it is not open to an appellant who chooses to bring
the
appeal here, to choose the procedure it prefers. This court is in any
event bound by the decisions in
Avenues
Body Corporate
and
Kingshaven
unless it is of the view that they were
wrongly decided. I am of the view that the approach adopted in these
decisions are sound
and that there is no basis to deviate therefrom.
[22]
Since the appellant elected to bring its
appeal by way of a Notice of Appeal as provided for in the ordinary
strict sense, the appeal
is not properly before this court. It ought
to have followed the motion procedure.
[23]
For this reason, the appeal falls to be
struck. It follows that a determination of the merits of the appeal
is not deemed necessary.
[24]
I accordingly propose the following Order:
[24.1]
The appeal is struck from the roll with costs.
T
J GOLDEN
Acting
judge of the High Court
I
agree it is so ordered.
E
D BAARTMAN
Judge
of the High Court
(Concurring)
APPEARANCES:
BICCARI
BOLLO MARIANO INC
The
Appellant’s Attorneys
5
Leeuwen Street
Cape
Town
LEE
COTTLE
The
First Respondent
In
person
[1]
(6220/2019)
[2020] ZAWCHC 92
(4 September 2020).
[2]
Kingshaven
at paras [21] and [22].
[3]
(W293/2020P)
[2021] ZAKZPHC 97 (7 December 2021)
[4]
Ellis
at para [10].
[5]
Ellis
at para [11].
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