Case Law[2024] ZALAC 10South Africa
RFS Administrator v Samons and Others (JA114/22) [2024] ZALAC 10; [2024] 7 BLLR 722 (LAC); (2024) 45 ILJ 2013 (LAC) (11 April 2024)
Labour Appeal Court of South Africa
11 April 2024
Headnotes
Summary: Claim in terms of s 77(3) of the Basic Conditions of Employment Act 75 of 1997 for contractual damages, alternatively disgorgement of profits – whether respondents were employees as defined in terms s 1 of the Act – respondents received or were entitled to receive remuneration from employer – Held: employees fell within definition of ‘employee’.
Judgment
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## RFS Administrator v Samons and Others (JA114/22) [2024] ZALAC 10; [2024] 7 BLLR 722 (LAC); (2024) 45 ILJ 2013 (LAC) (11 April 2024)
RFS Administrator v Samons and Others (JA114/22) [2024] ZALAC 10; [2024] 7 BLLR 722 (LAC); (2024) 45 ILJ 2013 (LAC) (11 April 2024)
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sino date 11 April 2024
THE
LABOUR APPEAL COURT OF SOUTH AFRICA, JOHANNESBURG
Not
Reportable
Case
no: JA114/22
In
the matter between:
RFS
ADMINISTRATORS
Appellant
and
SEAN
LINDO
SAMONS
First Respondent
MARRINET
DE
FORTIER
Second Respondent
MARIE
JANSEN VAN RENSBURG
Third Respondent
NATIONAL
PENSION FUND FOR MUNICIPAL
WORKERS
Fourth Respondent
NATIONAL FUND FOR
MUNICIPAL WORKERS
Fifth Respondent
Heard:
14 November 2023
Delivered:
11 April 2024
Coram:
Savage JA, Smith
et
Malindi AJJA
Summary:
Claim in terms of
s 77(3)
of the
Basic Conditions of Employment Act
75 of 1997
for contractual damages, alternatively disgorgement of
profits – whether respondents were employees as defined in
terms
s 1
of the Act – respondents received or were entitled to
receive remuneration from employer – Held: employees fell
within
definition of ‘employee’.
Claimant for
disgorgement of profits must establish fiduciary relationship and
that profits were earned secretly – employer
aware of payments
– Held: profits therefore not secret and employer not entitled
to disgorgement.
Contractual damages –
no causal connection between additional payments to employees and
damages suffered by employer –
claim accordingly dismissed with
costs.
JUDGMENT
SMITH
AJA
Introduction
[1]
The
appellant, RFS Administrators (Pty) Ltd (RFS), instituted proceedings
in the Labour Court against the respondents in terms of
s 77(3) of
the Basic Conditions of Employment Act
[1]
(BCEA), claiming contractual damages, alternatively disgorgement of
profits. On 30 August 2022, the Labour Court (Moshoana
J)
delivered its judgment dismissing the action with costs. RFA appeals
against that judgment with the leave of this Court.
[2]
RFS is a pension funds administrator and at all material times
administered
the funds of the fourth respondent, the National Pension
Fund for Municipal Workers (NPFMW) and the fifth respondent, the
National
Fund for Municipal Workers (NFMW). I refer to these
respondents collectively as ‘the Funds’.
[3]
RFS
performed the services in terms of Administration Agreements which
provided,
inter
alia
,
that it would render the services of a Principal Officer of the Funds
in terms of s 8 of the Pension Funds Act
[2]
.
Initially, Mr Chris Du Plooy, RFS’s Chief Executive Officer
(CEO), acted as the Principal Officer of the Funds until 2007,
when
the first respondent, Mr Sean Lindo Samons, assumed the function in
respect of the NPFMW on behalf of RFS. The latter remained
responsible for his remuneration.
[4]
Mr Samons was employed by RFS Holdings during February 2001 in terms
of
an oral contract, first in its marketing department and thereafter
in its legal services. When RFS was registered in 2003, he continued
his employment with the new entity in the same capacity.
[5]
The second respondent, Ms Marinett De Fortier, was employed by RFS in
terms of an oral contract on 1 January 2009. In May 2016, she was
seconded to the Funds as personal assistant to Mr Samons in his
capacity as Principal Officer.
[6]
The third respondent, Ms Marie Jansen Van Rensburg, was employed by
RFS
in terms of an oral contact on 1 November 2000, and during 2001,
she was also seconded to the Funds where she performed the functions
of a fund secretary.
[7]
RFS did not seek any relief against the NPFWM or the NFMW and they
were
consequently not involved in the proceedings before the Labour
Court, nor were they involved in the appeal. I shall therefore refer
to Mr Samons, Ms De Fortier and Ms Van Rensburg collectively as ‘the
respondents’.
[8]
In the proceedings before the Labour Court, Mr Du Plooy and Mr
Lishelese
Gabriel Mphahlele, RFS’s Chief Financial Officer,
testified on behalf of RFS. The respondents also testified and closed
their
case without calling any other witnesses.
[9]
The dispute between the parties concerns payments which the
respondents
received from the Funds over and above their usual
remuneration during the 2015/2016 financial year. The respondents
contend that
at the material times they were no longer in the employ
of RFS but had been employed by the Funds. They were accordingly
contractually
entitled to the payments. RFS, on the other hand,
contend that they had merely been seconded to the Funds and were
performing the
statutory function of a Principal Officer on its
behalf. The payments were accordingly in breach of the respondents’
fiduciary
duties, alternative constituted secret profits which should
be disgorged.
[10]
The issues which fall for decision on appeal are accordingly whether
the respondents were
in the employ of RFS when they received the
additional payments from the Funds, and if so, whether RFS is
entitled to disgorgement
of profits or contractual damages.
[11]
Because my findings are based mainly on facts which are either common
cause or undisputed,
it is not necessary for me to provide a
comprehensive summary of the evidence.
Factual
background
[12]
Mr Samons’s attempts to extricate himself from his contractual
relationship with
RFS started as early as July 2011, when he wrote to
the Executive Committee of the NPFMW, recording the latter’s
request
that he should be directly employed by the fund in order to
eliminate concerns regarding his independence. He stated that he had
agreed to the proposal on the condition that his conditions of
service remain the same and attached a draft employment agreement
for
the fund’s consideration. It is common cause that RFS was
unaware of these developments.
[13]
At a meeting of RFS’s Executive Committee on 3 August 2011, Mr
Samons reported that
the Funds’ trustees “
are adamant
that the Principal Officer should be employed by the fund and not by
the administrator as is currently the case. The
reason is
independence. The salary administration will be done by RFS
”.
[14]
However, Mr Du Plooy testified that after the meeting, Mr Samons told
him that he could
not resign from RFS because the Funds were not
prepared to match his salary. That assertion was not disputed by Mr
Samons in his
testimony. He said that Mr Samons never tendered his
resignation pursuant to his declaration of intent at the
meeting. Mr
Samons, on the other hand, asserted that on 3 August
2011, he gave oral notice of his resignation from RFS with effect
from 31
August 2011.
[15]
On 25 August 2011, Mr Samons and the NPFMW purported to conclude an
employment contract
in terms of which he was appointed as the fund’s
‘Principal Executive Officer’, with effect from 1
September
2011.
[16]
The Administration Agreements between RFS Holdings and the Funds
terminated on 31 August
2011, and on 25 August 2011, RFS concluded a
new Administration Agreement with the NFMW. The effective date of the
agreement was
1 September 2011.
[17]
Clause 4.11 thereof reads as follows.
‘
The ADMINISTRATOR
will as part of this agreement and fees referred to in terms of
clause 6.2, remunerate the Principal Officer,
the FUND Secretary and
Personal Assistant to the Principal Officer, The persons as above
shall be appointed by the FUND with the
approval of the ADMINISTRATOR
and the UFND shall notify the REGISTRAR of the Appointment of the
Principal Officer.’
[18]
RFS concluded a similar agreement with the NFMW, except that it did
not contain a
clause similar to clause 4.11 above. That agreement
also commenced on 1 September 2011.
[19]
Mr Samons purportedly also concluded an employment contract with the
NPFMW in terms of
which he was appointed as Principal Executive
Officer of that fund with effect from 1 September 2011. However,
between 7 September
2011 and 28 October 2011, he attended various
meetings of the RFS Executive Committee but did not raise the issue
of his ostensible
employment with the Funds at any of those meetings.
[20]
On 29 September 2011, Mr Samons resigned as Principal Officer of the
RFS Umbrella Fund,
the RFS Pension Fund and the Extra Dimension
Umbrella Fund, citing his full-time statutory responsibilities to the
Funds as the
reason for the resignations.
[21]
On 6 May 2013, Mr Corne Botha, RFS’s Chief Operating Officer,
wrote to Ms De Fortier
informing her that she was being transferred
to the NFMW as the personal assistant to the Principal Officer. That
letter also stated
that she would be representing RFS in that
capacity. Mr Samons also confirmed that arrangement in a letter to Ms
De Fortier on
24 May 2013, and stated that she was “
an
employee of RFS and the matter had been dealt with as an internal
transfer
”.
[22]
On 14 April 2014, the respondents signed RFS’s Human Resources
Policy and a document
titled ‘Addendum to the Policy’.
The Addendum provided,
inter alia
:
‘
The conditions
contained in this addendum supersedes the conditions contained in the
RFS Administrators (Pty) Ltd HR Policy and
is specific to the
employee seconded to the office of the Principal Officer for National
Fund for Municipal Workers (NFMW).’
[23]
On 19 May 2015, the Board of the NPFMW adopted a resolution to make
additional payments
to the respondents. On the same day, Mr Samons
communicated with Mr Mphahlele and Ms Anelie Heyneke, a clerk in
RFS’s finance
department, providing details regarding the
additional payments due to Ms De Fortier, Ms Van Rensburg and
himself.
[24]
On 10 June 2015, the trustees of the NFMW resolved to pay performance
bonuses to the staff
of the Principal Officer, namely the
respondents. Mr Samons again wrote to Ms Heyneke on 17 June 2015
instructing her to pay him
the sum of R198 000 in respect of
services rendered for the period 1 July 2014 to 30 June 2015.
[25]
On 19 June 2015, Mr Samons wrote to Mr Du Plooy, thanking him for
their increases and the
bonus paid by the Funds. Mr Du Plooy replied
that he was concerned about whether the Funds were allowed to approve
the increase
and expressed the view that the issue should be
investigated further. Mr Samons did not respond to that email but
wrote to Mr Du
Plooy on 19 June 2015, confirming that the Funds’
compliance officer was busy formulating an agreement relating to the
payment
of further bonuses.
[26]
On 3 July 2015, Mr Samons again wrote to Ms Heyneke informing her
that the NFMW resolved
on 10 June 2015 to remunerate the office of
the Principal Officer ‘for excellent service delivery’.
[27]
The contested bonuses and additional salaries were paid to the
respondents during the 2015/2016
financial year. They contended that
those payments were not made in secret but that RFS had full
knowledge thereof and had in fact
processed the payments. Mr Du Plooy
asserted that he was unaware of the payments and only the staff in
RFS’s financial department
knew about it.
[28]
Ms De Fortier and Ms Van Rensburg tendered their written resignations
as RFS employees
on 29 January 2016. Those letters unambiguously gave
formal notice of their resignations from the employment of RFS.
According
to them, the reason for the resignations was that the
relationship between the Funds and RFS had become strained and they
consequently
“
no longer wanted to have anything to do with
RFS
”.
[29]
On 19 February 2016, the NFMW held a special board meeting where it
was resolved that “
the entering of employment agreements
between the Fund and Ms Jansen Van Rensburg and Ms M de Fortier be
approved
” subject,
inter alia
, to the condition that
their remuneration will be on the same basis “
as their
current employment with RFS Administrators
”.
The
pleadings
[30]
In its statement of case, RFS averred that at all material times, it
employed and paid
the respondents’ salaries and that they had
been seconded to the Funds where they jointly performed the functions
of the
Principal Officer on behalf of RFS.
[31]
RFS further asserted that the respondents’ employment
contracts,
inter alia
, provided that they were not allowed to
earn any additional remuneration or bonuses from the Funds;
alternatively, that they were
obliged to declare any interest in
another organisation that could potentially offer a financial benefit
to them. They also owed
RFS a fiduciary duty to declare any
additional income from the Funds.
[32]
RFS contended further that the additional remuneration and bonuses
which the respondents
received from the Funds during 2015/2016,
constituted profits earned in breach of its HR policy, alternatively
secret profits earned
at RFS’s expense.
[33]
RFS asserted two claims against Samons, the first being in respect of
salaries the Funds
paid him from 2013 to 2016 in the sum of R492 000,
and the second being in respect of ‘meeting allowances’
in
the sum of R317 965.75.
[34]
The claims against Ms De Fortier and Ms Van Rensburg are in respect
of remuneration paid
to them by the NPFMW for the 2014/2015 financial
year in the sums of R78 356.84 and R104 602.65,
respectively.
[35]
In their statement of defence, the respondents averred that although
they were in RFS’s
employ and on secondment to the Funds until
2011, at the time they received the impugned payments, namely during
2015/2016, their
contracts with RFS had already terminated. For this
assertion, they relied on clause 4.11 of the administration
agreement, which
they contended effectively terminated their
employment with RFS with effect from 2011.
[36]
They furthermore denied that the additional payments constituted
damages suffered by RFA
or secret profits, since RFS had been aware
of the payments at all material times and had processed them.
Findings
by the Labour Court
[37]
The Labour Court found that since the position of the Principal
Officer is governed by
statute, when the respondents commenced
working for the Funds, they served only the interests of the latter
and consequently ceased
to be employed by RFS. It was not disputed
that Mr Samons and Ms Van Rensburg, with effect from 1 September
2011, and Ms Fortier
with effect from 1 June 2013, ceased to perform
services for RFS’s benefit. They had thus repudiated their oral
contracts
of employment and Mr Du Plooy accepted the repudiation on
behalf of RFS since he did not insist on specific performance.
[38]
Regarding the resignation letters penned by Ms De Fortier and Ms Van
Rensburg, the Court
found that they had no legal effect and were
pro
non scripto
. The Court reasoned that at the time they submitted
those letters, they were already performing functions exclusively for
the Funds
and were consequently no longer in RFS’s employ.
[39]
The Labour Court further found that RFS failed to establish the terms
of the oral contracts
of employment. It held that RFS’s
reliance on an admission by the respondents’ counsel to the
effect that the terms
of the contracts were not in dispute was
misplaced. The respondents were not bound by that legal concession
and the admission had,
in any event, not been recorded in a pre-trial
minute.
[40]
Moreover, the Court concluded that the respondents did in any event
not fall within the
ambit of the definition of employees in terms of
s 1 of the BCEA. That section defines an ‘employee’ as:
‘
(a)
any person, excluding an independent contractor, who works for
another person or for the
State and who receives, or is entitled to
receive, any remuneration; and
(b)
any other person who in any manner assists in carrying on or
conducting the business
of an employer.’
[41]
The Court reasoned that when the respondents commenced performing the
statutory functions
of a Principal Officer for the benefit of the
Funds in terms of clause 4.11 of the Administration Agreement, they
received or were
entitled to receive remuneration from the Funds.
They therefore no longer fell within the definition of employees for
the purposes
of the BCEA. The fact that RFS administered the payment
of their remuneration was inconsequential since they had in effect
been
remunerated by the Funds. In seconding the respondents to the
Funds, RFS was thus merely acting as a labour broker.
[42]
The Court furthermore held that since there was no privity of
contract between RFS and
the respondents when they earned the extra
income from the Funds, there could not have been any contractual
injunction against
them receiving the money. RFS consequently failed
to establish that they owed it a fiduciary duty and the extra income
did in any
event not constitute profit that would have accrued to RFS
if it had not been earned by the respondents. The remedy of
disgorgement
was accordingly not available to RFS.
Were
the respondents employed by RFS at the material time?
[43]
It was common cause that despite their respective secondments to the
Funds, the respondents
remained in the employ of RFS, in the case of
Mr Samons and Ms Van Rensburg, at least until 1 September 2011 and in
the case of
Ms De Fortier, at least until June 2013.
[44]
The respondents also admitted that they were, at various stages
during their employment
with RFS, seconded to the Funds and had
remained in the employ of the former. This was so because, in terms
of the Administration
Agreements, RFS was contracted to provide
management services to the Funds, which included acting as the Funds’
Principal
Officer. The respondents, having been seconded to the Funds
by RFS, thus performed those services for the benefit of RFS.
[45]
There can therefore be little doubt that, at least for the aforesaid
periods, the respondents
were employees for the purposes of the BCEA
since they worked for RFS and had received or were entitled to
receive remuneration
from RFS.
[46]
That arrangement did not change with Mr Samons’ appointment as
Principal Officer.
Mr Samons himself was of that view. During his
testimony, he was confronted with a letter wherein he stated that he
had been in
the employ of the Funds since 2007 although his
employment agreement had been with RFS. He also confirmed that when
he was initially
seconded to the Funds, he was working for the
benefit of RFS, while performing the functions of a Principal
Officer. This reasoning
also applies to Ms De Fortier and Ms Van
Rensburg, since they were both seconded to provide support to Mr
Samons.
[47]
As mentioned above, in the letter which Mr Samons wrote to Ms De
Fortier confirming her
transfer, he stated that she was “
an
employee of the RFS
”. RFS also wrote to her on 6 May 2013,
stating that “
the position you will be taking up is of vital
importance to us as you will represent RFS in the close environment
of our main client
”.
[48]
The Labour Court found that the respondents did not fall within the
definition of employees
in terms of the BCEA, because “
the
uncontested evidence implies that the employees received or were
entitled to receive remuneration from the Funds
”. That
finding was apparently underpinned by the finding that clause 4.11 of
the administration agreement makes it clear
that “
the fees
encapsulate the remuneration of the employee. The respondents
therefore ceased being employed by RFS when they commenced
working
for the Funds in terms of their secondments
”.
[49]
In making that finding the Labour Court, with respect, lost sight of
the fact that it was
not disputed that the respondents remained
employees of RFS despite their secondments, at least until 2011. Mr
Du Plooy confirmed
in his testimony that he was also remunerated by
RFS when he was performing the duties of Principal Officer.
[50]
It was also not disputed that the administration fee included the
payment for the services
rendered by RFS in connection with the
functions of the Principal Officer. Clause 6.1 of the agreement
provided that:
‘
The FUND must pay
the fees to the Administrator for the Standard Administrative and
Accounting Services as set out in this agreement.’
And clause 6.2 provides
that:
‘
Fees for the
Standard Administrative and Accounting Services shall be an amount
equal to 1.20% (ONE comma TWO ZERO PERCENT) of the
total monthly
salaries of all the members to the FUND, inclusive of VAT thereon.’
[51]
The Administration Agreement furthermore provides that its purpose is
to regulate the services
which RFS agreed to provide to the NFMW. It
was therefore a typical service level agreement in terms of which RFS
would earn a
fee for its services, which included making available
RFS employees to provide the functions of the Principal Officer.
Those employees
would have to look at RFS for their remuneration and
had no contractual claims against the Funds.
[52]
It was also common cause that there was no need to replicate the
provisions of clause 4.11
in the Administration Agreement between RFS
and the NPFMW because it was a ‘closed fund’ which did
not allow any new
members. Its administrative costs were covered by
fees paid for the services RFS rendered to the NFMW.
[53]
In my view, the respondents’ contention that on a proper
interpretation of clause
4.11, they were entitled to receive their
remuneration from the Funds is opportunistic. The 2009 agreement
included an identical
clause, yet they accepted that they had
remained in the RFS employment despite their secondments and that
they were entitled to
receive their remuneration from that entity.
[54]
In any event, the uncontested evidence established on a preponderance
of probabilities,
that the respondents were in the employ of RFS at
the material times. Mr Samons remained a member of RFS’s
pension fund to
which only employees of RFS were entitled to belong.
The respondents’ salaries were determined by RFS and bonuses
were paid
at its discretion. It was also not disputed that during
2015 the Funds were not aware of Mr Samons’s conditions of
employment,
including his remuneration. It is inconceivable that an
employer would have no knowledge of its employees’ conditions
of
service and remuneration.
[55]
In addition, although Mr Samons claimed that he declared his
intention to resign at the
RFS ExCo meeting during August 2011, it is
common cause that he never submitted a letter of resignation. In my
view, it is improbable
that a senior employee in Mr Samons’s
position would not have tendered a written resignation. Moreover, it
is manifest that
Mr Samons regarded himself as being employed by RFS
beyond 2011. He signed RFS’s HR Policy during 2014. It is also
common
cause that he submitted a memorandum to RFS during 2015
seeking clarity on his employment status. The contents of that
document
are fundamentally irreconcilable with his assertion that his
employment with RFS terminated in 2011 by virtue of clause 4.11 of
the Administration Agreement.
[56]
Ms De Nortier and Ms Van Rensburg both gave written notices of their
resignations with
effect from the dates stipulated therein.
[57]
Ms De Fortier’s letter was addressed to Mr Du Plooy and reads
as follows:
‘
Please accept this
as formal notice of my resignation from the employment of RFS
Administrators.
My last date as employee
of RFS Administrators will thus be 29 February 2016.’
[58]
Ms Van Rensburg submitted her resignation letter to Mr Du Plooy on 29
January 2016. The
relevant part of that letter reads as follows:
‘
Geagte Chris
Ek doen hiermee my
bedanking uit die diens van RFS Administartors in met laaste dag van
diens aan RFS Administrators op 29 February
2016’
[59]
In my view, there can hardly be a more unequivocal recognition of an
extant contractual
relationship and declaration of an intention to
terminate it with effect from a stipulated date. It was therefore not
surprising
that during their testimonies they were both unable to
explain why it was necessary for them to resign during 2016 if their
employment
with RFS had terminated during 2011. Significantly, the
NFMW board, in a resolution adopted on 19 February 2016, still
regarded
Ms De Fortier and Ms Van Rensburg as being in the employ of
RFS at that time and therefore approved their employment with the
fund
on the same basis “
as their current employment with RFS
Administrators
”.
[60]
The evidence thus compels the ineluctable inference that the
respondents were still in
RFS’s employ when they received the
impugned payments from the Funds.
[61]
This finding does, however, not mean that RFS’s claim must
succeed. This is so because
RFS still had to prove, on a balance of
probabilities, that the payments either constituted contractual
damages or secret profits
to be disgorged to it. I now turn to deal
with those issues.
RFS’s
claim for disgorgement of profits
[62]
In order to succeed with its claim for disgorgement of profits, RFS
was required to establish
that there was a fiduciary relationship
between it and the respondents; that in breach of that obligation,
the respondents placed
themselves in a position where their duties
and personal interests were in conflict; and that the profits were
made in secret and
as a consequence of untoward conduct by the
respondents.
[63]
An
employee, when rendering his or her services, must always act in the
best interests of the employer and is not entitled to use
his or her
employment relationship with the employer, without the employer’s
permission, to make a profit or earn a commission
for his or her own
account.
[3]
[64]
In
Phillips
v Fieldstone Africa (Pty) Ltd and Another
[4]
,
the
Supreme Court of Appeal held that the rule is a strict one which
allows little room for exceptions and “
the
defences open to a fiduciary who breaches his trust are very limited:
only the free consent of the principal after full disclosure
will
suffice
”.
[65]
Although my finding that the respondents were still employed by RFS
when they received
the payments means that they owed RFS a fiduciary
duty, the common cause facts established that those payments were not
made secretively.
In fact, the evidence showed on a balance of
probabilities that the additional payments were made with RFS’s
full knowledge
and acquiescence.
[66]
Mr Samons had advised RFS of the payments immediately after the
Funds’ Board of Trustees
approved them. He also advised Mr Du
Plooy, in his capacity as CEO, and provided Mr Mphahlele and Ms
Heyneke with full details
of the payments.
[67]
Mr Mphahlele also confirmed in his testimony that the payments were
processed in terms
of RFS’s usual procedures, that the
requisite supporting documents had been provided, and that he had
approved the payments.
In those circumstances, Mr Du Plooy’s
contention that the payments were made in secret because he, in his
capacity as CEO
was unaware of them, rings hollow.
[68]
The Labour Court therefore correctly found that there was no element
of secrecy or untoward
conduct on the part of the respondents in the
way the additional payments were made. RFS’s claim for
disgorgement of profits
can therefore not succeed.
The
claim for contractual damages
[69]
Regarding the claim for contractual damages, counsel for the
respondents correctly submitted
that RFS failed to establish which
terms of their contracts had allegedly been breached. In his
testimony, Mr Du Plooy initially
suggested that in terms of the
secondment agreement under which Mr Samons was seconded to the Funds
during 2007, he was precluded
from earning any additional income
while on secondment to the Funds, and if he did, he was contractually
obligated to pay it over
to RFS.
[70]
However, under cross-examination, Mr Du Plooy was unable to provide
any factual basis for
that assertion and was constrained to rely on
the suggestion that it was ‘
basic good manners’
.
Mr Du Plooy’s attempts to found those contractual provisions in
RFS’s HR policy also came to nought.
[71]
In any event, in my view, RFS has failed to establish any causal
connection between the
alleged breach of the contracts and the
damages it allegedly suffered as a consequence thereof. The monies
were paid to the respondents
directly from funds paid into the RFS
bank account by the Funds and were earmarked for payment to the
respondents. The money was
thus specifically transferred to enable
RFS to pay the respondents in accordance with the resolution adopted
by the Funds. RFS’s
claim for contractual damages must
therefore also fail.
Costs
[72]
Regarding the question of costs, I am of the view that the Labour
Court’s order should
not be disturbed. In instituting the
proceedings against the first, second and third respondents, RFS was
pursuing a purely financial
interest and there is therefore no reason
why it should not be liable for their costs.
[73]
In the result, I make the following order:
Order
1.
The appeal is dismissed with costs including the costs of senior
counsel.
SMITH
AJA
Savage
JA and Malindi AJA concur.
APPEARANCES:
For
Appellant:
Adv E S J Van Graan SC, Adv T J Odendaal
Instructed by J F Mare
Attorneys
For
First, Second and Third Respondents:
Adv T Van Der Walt SC
Instructed by Nysschen
Attorneys
[1]
Act
75 of 1997.
[2]
Act
24 of 1956.
[3]
Robinson
v Randfontein Estates Gold Mining and Company Ltd
1921
AD 168
at 177 - 8.
[4]
2004
(3) SA 465
(SCA). See also
Stewart
Wrightson (Pty) Ltd v Thorpe
1977
(2) SA 943
(A).
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