Case Law[2024] ZALAC 50South Africa
Association of Mineworkers and Construction Union and Others v Piet Wes Civils CC and Others (JA95/2023) [2024] ZALAC 50 (16 October 2024)
Labour Appeal Court of South Africa
16 October 2024
Headnotes
in contempt of the court order of Steenkamp J, dated 13 January 2017.
Judgment
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## Association of Mineworkers and Construction Union and Others v Piet Wes Civils CC and Others (JA95/2023) [2024] ZALAC 50 (16 October 2024)
Association of Mineworkers and Construction Union and Others v Piet Wes Civils CC and Others (JA95/2023) [2024] ZALAC 50 (16 October 2024)
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sino date 16 October 2024
THE
LABOUR APPEAL COURT OF SOUTH AFRICA,
JOHANNESBURG
Not Reportable
Case
No:
JA95/2023
In the matter between:
THE
ASSOCIATION OF MINEWORKERS AND
CONSTRUCTION
UNION
First
Appellant
AMCU
MEMBERS
Second
Appellant
and
PIET
WES CIVILS CC
First
Respondent
WATERKLOOF
SKOONMAAKDIENSTE CC
Second
Respondent
HENDRIK
DIEDERICK PIETERSE
Third
Respondent
BRUCE
GALLET VAN ROOYEN
Fourth
Respondent
ELIZABETH
BARINDINA PIETERSE
Fifth
Respondent
SEANI
TSHIELA MPHAPHULI
Sixth
Respondent
WILLIAM
TEBOGO GOMBA
Seventh
Respondent
Heard: 28
May 2024
Delivered:
This judgment was handed down
electronically by circulation to the parties' legal representatives
by email. The date for the hand-down
is deemed to be 16 October 2024.
Coram:
Savage ADJP, Jolwana
et
Govindjee AJJA
JUDGMENT
JOLWANA,
AJA
Introduction
[1]
This matter is one of three pertaining to
the same parties. Central to all of the matters is an order for the
reinstatement of unfairly
dismissed employees. The first two matters
reached finality in that there are no pending appeals. All three
matters are inextricably
intertwined and arose from the same factual
matrix. For that reason, I consider it necessary to first introduce
each matter by
way of a brief background to give context as I will be
referring to each one of them throughout this judgment.
Background
[2]
On
17 January 2017, Steenkamp J granted an order in favour of the first
appellant’s members who are the second appellants
herein (the
employees) directing the first and second respondents to reinstate
the affected employees. The court directed that
the said employees
were to be reinstated in terms of section 189A (13) of the Labour
Relations Act
[1]
(LRA) until the
first and second respondents complied with a fair procedure
(Steenkamp J order).
[2]
All
attempts by these respondents to appeal against that court order in
this Court and to the Constitutional Court were unsuccessful.
[3]
Despite all possibilities of appeal having
been exhausted, the first and second respondents still did not
reinstate the employees.
As a result, the appellants instituted
contempt of court proceedings. The contempt of court matter served
before Nkutha-Nkontwana
J (as she was then) who delivered a judgment
in favour of the appellants on 1 October 2021 (Nkutha-Nkontwana J
order) and issued
an order finding the first, second, third and fifth
respondents (collectively, the respondents) in contempt of court and
directing
them to comply with the Steenkamp J order in the following
terms:
‘
1.
The first, second, third and fifth respondents are held in contempt
of the court order of Steenkamp J, dated 13 January
2017.
2. The first,
second, third and fifth respondents shall purge the contempt within
10 days from the date of the judgement.
3. Should the
first, second, third and fifth respondents fail to comply with the
order in paragraph 2 above, they shall pay
a fine of R100 000.00
(Hundred Thousand Rand) jointly and severally, the one paying the
other to be absolved payable at the office
of the Registrar of this
Court by not later than 29 October 2021.
4. The third and
fifth respondents shall pay the costs of this application.’
[4]
The respondents did not purge their
contempt of the Steenkamp J order as directed by Nkutha-Nkontwana J
in that they did not reinstate
the employees. For various reasons,
the fine of R100 000.00 was only paid on 16 March 2023. Instead
of purging their contempt
of the Steenkamp J order by reinstating the
employees, these respondents embarked on further unsuccessful
attempts to appeal against
the Nkutha-Nkontwana J order. The failure
to reinstate the affected employees led to further contempt of court
proceedings. That
matter served before Van Niekerk J (as he then was)
who handed down a judgment dismissing the further contempt of court
application.
It is the Van Niekerk J’s judgment and orders that
are the subject of this appeal.
The passing of the
third respondent
[5]
At the commencement of the hearing of this
appeal, the Court was informed by the counsel for the appellants that
the third respondent
has since passed away. Therefore, the appellants
only pursued the appeal in respect of the fifth respondent. It is not
in dispute
that the third respondent held 49% membership interest in
the first respondent and 32% membership interest in the second
respondent.
There is evidence, uncontroverted I should add, that the
third respondent concluded a transaction with the fourth respondent
for
the purchase and sale of the fourth respondent’s 51%
membership interest in the first respondent. Therefore, with the
third
respondent having acquired the entire membership in the first
respondent and with his unfortunate demise, these contempt
proceedings
are now only in respect of the fifth respondent who had
no membership interest in the first respondent.
Before the Labour
Court
[6]
The relief sought in the Labour Court was
that the respondents be found guilty of contempt of court for their
failure to comply
with the Steenkamp J order and/or the
Nkutha-Nkontwana J order. In the event of the respondents being found
in contempt of court,
the appellants sought an order for the
incarceration of the third and fifth respondents for a period that
would be deemed appropriate
by the court. Some of the appellants’
contentions were that the respondents wilfully disregarded, and
therefore showed utter
contempt for the Nkutha-Nkontwana J order. It
was submitted that they were obstructive, contemptuous and embarked
on dilatory conduct
manifested by their endless but stillborn
attempts to appeal against the said court order and failed to comply
with the Steenkamp
J order and/or the Nkutha-Nkontwana J order.
[7]
The appellants contended that the fact that
the respondents had already been found guilty of contempt of court
for their non-compliance
with the Steenkamp J order did not mean that
they could not again be found in contempt thereof and an appropriate
sanction for
such further contempt imposed. It was submitted that in
order for the respondents to purge their contempt of the Steenkamp J
order
and for the authority of the court and therefore the rule of
law to be vindicated, the third and fifth respondents must be
sanctioned
appropriately by being imprisoned.
[8]
The third and fifth respondents’ case
before the Labour Court was that the third respondent held a 49%
membership interest
in the first respondent and a 32% interest in the
second respondent. The fourth respondent (against whom no relief was
sought)
held the remaining 51% membership interest in the first
respondent. The third respondent was married to the fifth respondent
and
the latter held a 17% membership interest in the second
respondent. The fifth respondent did not have any membership interest
in
the first respondent. The sixth and seventh respondents, against
whom no relief was sought held a 30% and 21% membership interest
respectively in the second respondent. As I understood the argument,
the third and fifth respondents’ case was that they
held
minority membership interests in both the first and second
respondents. Therefore, it was impossible for them to comply with
the
Steenkamp J and Nkutha-Nkontwana J orders without the cooperation of
the other respondents which was not forthcoming. There
was also an
acrimonious relationship between the third and fifth respondents on
the one hand and the fourth, sixth and seventh
respondents on the
other hand which also resulted in non-compliance with the court
orders. The other respondents were not sought
to be held in contempt
of these court orders.
[9]
It was further contended that the
Nkutha-Nkontwana J order definitively and finally dealt with the
contempt of court relating to
the non-compliance with the Steenkamp J
order. Absent any appeal, that matter was
res
judicata
. Therefore, the contempt of
court in respect of the Steenkamp J order could not be revisited.
Nkutha-Nkontwana J imposed a sanction
in the form of a fine of
R100 000.00 payable at the office of the registrar of the court
not later than 29 October 2021 thus
definitively and finally dealing
with the contempt of the Steenkamp J order. In sanctioning the
respondents with payment of that
fine, Nkutha-Nkontwana J gave the
respondents an opportunity to purge their contempt and did not order
compliance with the Steenkamp
J order after the payment of the fine.
It was argued that it would therefore amount to double jeopardy and
offend against the basic
principle that a person cannot be sanctioned
twice for the same offence, were the respondents to be found guilty
of contempt again
and subjected to punishment.
[10]
The contempt of Nkutha-Nkontwana J’s
order can only arise in the event of wilful and
mala
fide
non-compliance with that part of
the order in terms of which they were required to pay the fine by 29
October 2021. For various
reasons, the third and fifth respondents
could only pay the fine of R100 000.00 on 16 March 2023. The delay in
the payment of the
fine was due to the appeal processes against the
Nkutha-Nkontwana J order which only reached finality on 21 June 2022
and due to
administrative delays in obtaining the banking details
from the office of the registrar. There was therefore no wilful and
mala fide
non-compliance in their failure to pay the fine timeously by the 29
October 2021. To the extent that they were also required to
comply
with the Steenkamp J order by reinstating the affected employees, it
was submitted that the third and fifth respondents
were still unable
to comply with the order in this respect due
inter
alia
to the dormancy of the first and
second respondents.
The
Labour Court’s judgment
[11]
The Labour Court rejected the respondents’
contention that the acrimonious relationship among the members of the
first and
second respondents resulted in the third and fifth
respondents’ inability to make decisions. The Court
a
quo
upheld
the third and fifth respondents’ defence of
res
judicata
and found that on a proper construction of the Nkutha-Nkontwana J
order, the respondents were in contempt. They were given an
opportunity to comply with the Steenkamp J order within 10 days
failing which they were to pay a fine of R100 000.00 by 29
October 2019. The Labour Court found that the Nkutha-Nkontwana J
order was silent on the issue of ongoing contempt and it did not
order compliance with the Steenkamp J order post the payment of the
fine. The respondents’ contempt of court in respect of
the
Steenkamp J order was therefore found to have been purged by the
payment of the fine in terms of the Nkutha-Nkontwana J order
which,
it concluded, was both coercive and punitive. The Court thereupon
dismissed the application.
Discussion
Was
the Nkutha-Nkontwana J order both coercive and punitive?
[12]
The appellants’ primary contention on
appeal was that despite the payment of the fine, the respondents
remained in contempt
of the Steenkamp J order. Therefore if the
respondents were allowed merely to pay the fine, this would render
the Steenkamp J order
nugatory resulting in the flouting of the law.
[13]
In
Secretary
of the Judicial Commission of Inquiry into Allegations of State
Capture, Corruption and Fraud in the Public Sector including
Organs
of State v Zuma and Others
[3]
(
Zuma
)
,
in discussing the distinction between coercive and punitive orders,
the Constitutional Court stated:
‘…
As
helpfully set out by the minority in
Fakie
,
there is a distinction between coercive and punitive orders, which
differences are “marked and important”. A coercive
order
gives the respondent the opportunity to avoid imprisonment by
complying with the original order and desisting from the offensive
conduct. Such an order is made primarily to ensure the effectiveness
of the original order by bringing about compliance. A final
characteristic is that it only incidentally vindicates the authority
of the court that has been disobeyed. Conversely, the following
are
the characteristics of a punitive order: A sentence of imprisonment
cannot be avoided by any action on the part of the respondent
to
comply with the original order; the sentence is unsuspended; it is
related both to the seriousness of the default and the contumacy
of
the respondent; and the order is influenced by the need to assert the
authority and dignity of the court, to set an example
for others.’
[14]
On a proper construction of
Nkutha-Nkontwana J’s judgment, it is plain that the court
sought to coerce the respondents to
purge their contempt within 10
days, failing which a fine would be payable. Timeous compliance with
the reinstatement order of
Steenkamp J would therefore avoid the
payment of the fine. On the authority of
Zuma
,
the risk of payment of the fine was intended to coerce compliance
with the court order. The court
a quo
therefore erred in finding that the Nkutha-Nkontwana J order was both
coercive and punitive. It was clearly purely coercive. In
the
circumstances, the defence of
res
judicata
as raised by the respondents
is unsustainable.
The importance of
compliance with court orders
[15]
The submission by the respondents that,
because the Nkutha-Nkontwana J order said nothing about the ongoing
nature of the contempt
and what would happen if its own order was not
complied with, therefore they cannot be found guilty for its
non-compliance is,
at best, circuitous and equally unsustainable.
Similarly, the finding by the court
a
quo
that
because the Nkutha-Nkontwana J order was silent on the ongoing nature
of the contempt, the payment of the fine absolved the
respondents
from having to comply with the Steenkamp J order by reinstating the
employees was erroneous. The reason is not far
to seek. It is simply
that a court does not have to spell out the consequences for
non-compliance with its order.
[16]
Orders are issued daily in our courts on
the constitutional principle that absent appeal processes which may
suspend them, they
are binding and must be complied with forthwith.
By its very nature, once the order is brought to the attention of the
respondent
and the time allowed for compliance has passed, continued
non-compliance is contemptuous with presumed wilfulness and
mala
fide
until proven otherwise.
Non-compliance with any court order cannot in any event be without
consequence or be committed with impunity
where the non-compliance is
brought to the attention of a court. In this regard, our rich
jurisprudence is clear and consistent.
[17]
The
importance of court orders and the ghastly consequences of disobeying
them with impunity was recently eloquently explained by
the
Constitutional Court in
Municipal
Manager, O.R. Tambo District Municipality and Another v Ndabeni
[4]
in which the Court said:
‘
[23]
Trite, but necessary, it is to emphasise this Court’s repeated
exhortation that constitutional rights
and court orders must be
respected. An appeal or review – the latter being an option in
the case of an order from the Magistrates
Court – would be the
proper process to contest an order. A court would not compel
compliance with an order if that would
be “patently at odds
with the rule of law”. Notwithstanding, no one should be left
with the impression that court orders
– including flawed court
orders – are not binding, or that they can be flouted with
impunity.
[24]
This Court in [
Zuma
] reaffirmed that irrespective of their
validity, under section 165(5) of the Constitution, court orders
are... not nullities. They
are not void or nothingness, but exist in
fact with possible legal consequences. If the Judges had the
authority to make the decisions
at the time that they made them, then
those orders would be enforceable.
…
[26]
Court orders are effective only when their enforcement is assured.
Once court orders are disobeyed without
consequence, and enforcement
is compromised, the impotence of the courts and the judicial
authority must surely follow. Effective
enforcement to protect the
Constitution earns trust and respect for the courts. This reciprocity
between the courts and the public
is needed to encourage compliance,
and, progressively, common constitutional purpose.’
[18]
The fifth respondent went to great lengths
explaining why she did not comply with the Nkutha-Nkontwana J order,
which required her
to comply with the Steenkamp J order. The court
a
quo
correctly found that Nkutha-Nkontwana J rejected the respondents’
explanations for their failure to comply with the Steenkamp
J order.
Some of their explanations were repeated with some embellishments
here and there in this Court as if they negate Nkutha-Nkontwana
J’s
findings, which have not been successfully challenged on appeal. More
about some of those explanations later.
Can a minority member
of a close corporation be held in contempt of court?
[19]
With
all of the above being considered, I turn now to look at the fifth
respondent’s culpability for contempt of court. It
is common
cause that the fifth respondent holds only 17% membership interest in
the second respondent. The rest of the membership
interest is held by
the third, sixth and seventh respondents at 32, 30 and 21%
respectively. As a 17% membership interest holder
in the second
respondent, the fifth respondent is, by definition, a minority member
as a consequence of which her real influence
might have always been
severely limited. There are, however, two considerations that are of
some significance, as a matter of law,
that come to mind. The first
relates to section 42 of the Close Corporations Act
[5]
which provides that a member of a close corporation shall stand in a
fiduciary relationship to the corporation. The fiduciary duty
to act
in the interests of the close corporation, broadly speaking, surely
must include the responsibility to ensure that court
orders are
complied with. I just don’t see how a close corporation can
trade or function, absent compliance with court orders
as and when
they are issued. The fifth respondent did nothing to ensure that her
fiduciary duty in this regard was honoured.
[20]
The
fifth respondent had a readily available remedy provided for in
section 50 of the Close Corporations Act regarding the
non-cooperation
of the other members of the second respondent if this
was a real impediment in ensuring compliance. I am fortified in this
view
by the sentiments expressed in
De
Franca v Exhaust Pro CC (De Franca Intervening)
[6]
(
De
Franca
),
in which, dealing with a member’s lack of
locus
standi,
Nepgen
J had this to say:
‘…
It
is quite clear that what is provided for in s 50 of the Act is that a
member of a close corporation may institute proceedings
on behalf of
the close corporation in respect of another member’s or a
former member’s liability to the close corporation
where such
liability arises on account of a breach of the duty flowing from the
fiduciary relationship that exists or existed.
Without going into any
great detail in this regard, there can be little doubt that the
comment in Cilliers and others
Close
Corporations Service
para 4.21 that the
remedy provided by s 50 of the Act to enable proceedings to be
instituted on behalf of a close corporation against
fellow members
was devised in order to provide for a simple and effective means to
protect the interests of the close corporation,
thus avoiding ‘the
uncertainty inherent in the common law derivative action and the
time-consuming and risky procedure envisaged
by s 266 of the
Companies Act’. (See generally in this regard Celliers and
others
Corporate Law
2
nd
ed
at 292 para 19.7, 295 para 19.13-303 para 19.28). Clear indications
of what was intended by s 50 of the Act are to be found
in ss (2) and
(3) thereof, where there is specific reference to ‘institution
of such proceedings’; ‘a withdrawal
of the proceedings’;
a ‘settlement of the claim’; and to ‘the defendant
in question’. The statutory
authority with which a member is
vested where the provisions of s 50 of the Act are applicable is not
unlimited authority. It is
authority provided for the specific
purpose of instituting the proceedings contemplated by s 50 of the
Act. In my judgment the
provisions of s 50 of the Act cannot, by any
stretch of imagination, be interpreted in such a way that they vest a
member of a
close corporation with authority to oppose an application
for its liquidation merely because another member, who is applying
for
its liquidation, has acted contrary to the duty arising from his
fiduciary relationship and has thereby caused the close corporation
to suffer a loss which in turn has resulted in him being liable to
the close corporation therefor.’
[21]
While the issue of the fifth respondent’s
minority membership interest was raised before the Labour Court, that
court did
not deal with it. It has now again been raised on appeal.
The fifth respondent did not, however, in the papers, deal with
efforts,
if any, she might have made to reach out to the other
members so that the possibilities of compliance subsequent to the
Nkutha-Nkontwana
J order could be explored. On the authority of
De
Franca
, she clearly had
locus
standi
to institute court proceedings
in which she could have sought a
mandamus
,
compelling the recalcitrant members to provide the necessary
cooperation to ensure that the court orders were complied with. She
lamentably contented herself with remaining supine.
The test for contempt
of court
[22]
The
test for contempt of court as succinctly set out in
Fakie
NO v CCII Systems (Pty) Ltd
[7]
(
Fakie
)
is whether the contemnor has established a reasonable doubt that her
or his contempt was wilful and mala fide. In
Fakie,
the court said:
‘
[9]
The test for when disobedience of a civil order constitutes contempt
has come to be stated as
whether the breach was committed
‘deliberately and
mala fide
’.
A deliberate disregard is not enough, since the non-complier may
genuinely, albeit mistakenly, believe him or herself entitled
to act
in the way claimed to constitute the contempt. In such a case, good
faith avoids the infraction. Even a refusal to comply
that is
objectively unreasonable may be
bona
fide
(though unreasonableness could
evidence lack of good faith).
[10]
These requirements – that the refusal to obey should be both
wilful and mala fide, and that unreasonable
non-compliance, provided
it is
bona fide
, does not constitute contempt – accord
with the broader definition of the crime, of which non-compliance
with civil orders
is a manifestation. They show that the offence is
committed not by mere disregard of a court order, but by the
deliberate and intentional
violation of the court’s dignity,
repute or authority that this evinces. Honest belief that
non-compliance is justified or
proper is incompatible with that
intent.
…
[12]
These observations bear directly on the main question of principle in
the appeal, on which our approach to
the facts it presents must
depend. This is whether civil contempt can be established when
reasonable doubt exists as to any of
the requisites of the crime. The
pre-constitutional approach to proof was that, once the enforcer
established that the order had
been granted, and served on or brought
to the alleged contemnor’s notice, an inference was drawn that
non-compliance was
wilful and
mala fide
, unless the
non-complier established the contrary. The alleged contemnor bore the
full legal burden of showing on a balance of
probabilities that
failure to comply was not wilful and
mala fide
.’
Has the fifth
respondent established absence of wilfulness and
mala fides
?
[23]
It
is common cause that the respondents did not comply with the
Steenkamp J order. That led to the contempt of court proceedings
and
the Nkutha-Nkontwana J order. The respondents did not purge their
contempt of the Steenkamp J order despite being ordered to
do so by
Nkutha-Nkontwana J. They reasoned that the payment of the fine
exonerated them from ever having to comply with that order.
This was
simply incorrect and could not possibly be the case as I demonstrate
hereunder. The Nkutha-Nkontwana J order, properly
interpreted in the
context of the whole judgment in accordance with the principles of
interpretation set out in
Natal
Joint Municipal Pension Fund v Endumeni Municipality
[8]
,
required the respondents to reinstate the dismissed employees as the
primary object. Payment of the fine did not mean that the
employees
did not have to be reinstated. It is necessary to emphasize that the
fons
et origo
of the proceedings which served before Steenkamp J and therefore his
order was the reinstatement of the employees. The respondents,
having
failed to comply with it, the proceedings which served before
Nkutha-Nkontwana J were not about punishing the respondents
for their
infraction. They were about the reinstatement of the employees with
the threat of punishment being a means to that end.
[24]
The
question then is, what of the fifth respondent’s rationale for
non-compliance especially as it relates to her understanding
of the
Nkutha-Nkontwana J order that payment of the fine absolved her from
ensuring reinstatement of the employees? As things stand,
both court
orders, that of Steenkamp J and Nkutha-Nkontwana J, have still not
been complied with several years later which is,
as it must be,
extremely concerning. The payment of the fine did not purge the
contempt as I said before. It would send a wrong
message if
compliance with court orders could be bought at a price – the
payment of a fine by those with deep pockets in
our society which
would be an affront to the rule of law. That surely cannot be the
case, especially in respect of clearly coercive
court orders. In this
respect, the sentiments expressed by Nicholls JA in
S
v S.H
[9]
are apposite. The learned Judge of Appeal eloquently said:
‘
All
South Africans have a duty to respect and abide by the law. As the
Constitutional Court stated in [
Zuma
],
courts ‘unlike other arms of the State … rely solely on
the trust and confidence of the people to carry out their
constitutionally mandated function’ which is to uphold, protect
and apply the law without fear or favour. Disregard of court
orders
is an attack on the very fabric of the rule of law.’
[25]
However, there is no basis for suggesting
that the fifth respondent’s belief that the payment of the fine
absolved her from
complying with the Steenkamp J order was not
honest. At worst, it could be unreasonable, which even if true, is
simply not enough.
On the authority of
Fakie
,
her honest belief that non-compliance was justified or proper in the
circumstances, does not accord with the deliberate intentional
violation of the court’s dignity, repute or authority.
[26]
Additionally,
the relief sought by the appellants in their notice of motion was the
incarceration of the contemnor respondents.
The Constitutional Court,
not so long ago, clarified the issue of the standard of proof that it
is proof beyond reasonable doubt.
The Court in
Matjhabeng
Local Municipality v Eskom Holdings Ltd and Others
[10]
(
Matjhabeng
)
said:
‘…
[O]n
a reading of
Fakie, Pheko II
,
and
Burchell
,
I am of the view that the standard of proof must be applied in
accordance with the purpose sought to be achieved, or differently
put, the consequences of the various remedies. As I understand it,
the maintenance of a distinction does have a practical significance:
the civil contempt remedies of committal or a fine have material
consequences on an individual’s freedom and security of
the
person. However, it is necessary in some instances because disregard
of a court order not only deprives the other party of
the benefit of
the order but also impairs the effective administration of justice.
There, the criminal standard of proof –
beyond reasonable doubt
– applies always. A fitting example of this is
Fakie.
On the other hand, there are civil
contempt remedies – for example, declaratory relief,
mandamus,
or a structural interdict – that
do not have the consequence of depriving an individual of their right
to freedom and security
of the person. A fitting example of this is
Burchell
.
Here, and I stress, the civil standard of proof – a balance of
probabilities – applies.’
This would mean that the
appellants would have to show that the fifth respondent’s
non-compliance with the Steenkamp J order
was, beyond reasonable
doubt, wilful and
mala fide
. This, they have failed to do as
the fifth respondent has discharged the evidentiary burden of
establishing reasonable doubt as
to whether her non-compliance was
wilful and
mala fide
.
The dormancy argument
and the impossibility of compliance
[27]
The fifth respondent resuscitated the
dormancy argument in respect of the second respondent in her written
submissions on appeal.
As is evident from the pleadings, the parties
agree on the issue of the dormancy of the second respondent. The
controversy is about
whether the circumstances in which the second
respondent found itself in were such as to render it incapable of
reinstating the
unlawfully dismissed employees. That dispute of fact
is apparent from the pleadings. In their founding affidavit, the
appellants
made the point that, according to the CIPC report, the
second respondent was in the process of deregistration but had not
yet been
deregistered and that deregistration should not preclude the
Court from declaring the fifth respondent in contempt of court. In
her answering affidavit, the fifth respondent annexed a CIPC report
in respect of the second respondent which showed that indeed,
at the
time of its filing, the second respondent was in the process of being
deregistered. I understand the appellants’ case
to be based on
the hypothesis that the fifth respondent, being aware of the
Steenkamp J and Nkutha-Nkontwana J orders, was wilful
and actuated by
mala fides
in her non-compliance. Therefore, she should be held in contempt and
incarcerated.
[28]
The fifth respondent not only says that the
second respondent has been dormant since December 2016 but goes much
further to say
that it did not have any employment positions in which
to reinstate the employees, which has been the case since January
2017.
This was because the cleaning services contract between the
second respondent and Exxaro Coal (Pty) Ltd (Exxaro), its sole
client,
as a result of which the employees were employed, was
terminated in November 2016. That being the case, the restoration of
the
normal employment relationship between the second respondent and
its employees to its pre-dismissal position had become impossible.
She explained that it had been two years since the termination of
employment and the dismissal of the second respondent’s
application for leave to appeal by the Constitutional Court. The
second respondent’s financial position had become more
precarious resulting in the second respondent having no money to pay
any back pay consequent upon reinstatement and was unable to
comply
with any monetary component of a reinstatement order or any statutory
financial obligation to the employees as part of a
section 189 and
189A process. With all of this, the fifth respondent contends that
compliance with the Steenkamp J order was, in
the circumstances,
impossible and non-compliance therewith was not wilful and
mala
fide
. The appellants did not accept
that compliance with that court order was impossible which is why
they sought her incarceration
as the sanction for the infraction.
That dispute of fact on whether reinstatement was still a viable
proposition must, to my mind,
be resolved in favour of the fifth
respondent on the
Plascon-Evans
rule.
[29]
In
Wightman
t/a J W Construction v Headfour (Pty) Ltd and Another
[11]
,
Heher
JA explained the
Plascon-Evans
rule as follows:
‘
[12]
Recognising that the truth almost always lies beyond mere linguistic
determination the courts have said that
an applicant who seeks final
relief on motion must, in the event of conflict, accept the version
set up by his opponent unless
the latter's allegations are, in the
opinion of the court, not such as to raise a real, genuine or
bona
fide
dispute of fact or are so
far-fetched or clearly untenable that the court is justified in
rejecting them merely on the papers….
[13] A
real, genuine and
bona fide
dispute of fact can exist only
where the court is satisfied that the party who purports to raise the
dispute has in his affidavit
seriously and unambiguously addressed
the fact said to be disputed….’
[30]
It does appear that the second respondent
did run into troubled waters, financially, possibly to the extent
that there may not have
been any possibility of reinstatement of the
employees by the time appeal processes were finalised. The
allegations put up by the
fifth respondent in that regard do not
appear to be far-fetched or untenable such as to be rejected out of
hand. Therefore, the
dormancy situation, which is already indicative
of a business that is in some difficulty, coupled with the
impossibility of compliance
due to the second respondent’s
financial woes, the fifth respondent has succeeded in rebutting the
evidentiary burden of
establishing reasonable doubt as to whether the
failure to reinstate the employees was wilful and
mala
fide
. This, in my view, is an
additional basis for dismissing the appeal as it appears that
reinstating the employees may not have been
possible.
[31]
In
Matjhabeng
[12]
,
the court concluded that wilfulness and
mala
fide
had not been established beyond reasonable doubt. What is clear from
that matter is that where compliance with a court order –
reinstatement in this case – may not have been possible or
practicable, if properly pleaded, this cannot be ignored. In fact,
it
must be examined quite closely and a proper determination made as to
whether the explanation proffered by the contemnor does
create
reasonable doubt about the contemnor’s wilfulfulness and
mala
fide
in such circumstances.
[32]
While the fifth respondent erred in
assuming that she was no longer required to comply with the Steenkamp
J order of reinstatement
subsequent to the payment of the fine as
ordered by Nkutha-Nkontwana J, she has however, succeeded in negating
the presumed wilfulness
and
mala fide
on her part for the non-compliance. Therefore, it would be
inappropriate for her to be held in contempt of court.
Conclusion
[33]
In all the circumstances, and while the
court
a quo
erred in its reasoning for the order it made for the dismissal of the
application, the appeal stands to be dismissed albeit for
very
different reasons. It follows that the order of the Labour Court must
stand.
[34]
In the result, the following order is made:
Order
1.
The appeal is dismissed.
2.
There is no order as to costs.
Jolwana AJA
Savage ADJP and Govindjee
AJA concur.
Appearances:
For
the Appellants:
Instructed
by LDA Incorporated Attorneys
Adv
Hollander
For
the Respondents:
Instructed
by Cavanagh & Richards Attorneys
Adv
Groenewald
[1]
Act 66 of 1995, as amended.
[2]
Section 189A (13) provides as follows:
‘
If
an employer does not comply with a fair procedure, a consulting
party may approach the Labour Court by way of an application
for an
order –
(a)
compelling the employer to comply with a fair procedure;
(b)
interdicting or restraining the employer from dismissing an employee
prior to complying with a fair procedure;
(c)
directing the employer to reinstate an employee until it has
complied with a fair procedure;
(d)
make an award of compensation, if an order in terms of paragraph (a)
to (c) is not appropriate.’
[3]
[2021]
ZACC 18
;
2021 (5) SA 327
(CC) at para 47.
[4]
[2022]
ZACC 3
;
2023 (4) SA 421
(CC) at paras 23 - 24 and 26.
[5]
Act 69 of 1984.
[6]
1997 (3) SA 878
(SE) at 890F - 891C.
[7]
[2006] ZASCA 52
;
2006 (4) SA 326
(SCA) at paras 9 - 10 and 12.
[8]
[2012] ZASCA 13
;
2012 (4) SA 593
(SCA) at para 18 where the court
set the principles of interpretation as follows:
‘…
Interpretation
is the process of attributing meaning to the words used in a
document, be it legislation, some other statutory
instrument, or
contract, having regard to the context provided by reading the
particular provision or provisions in the light
of the document as a
whole and the circumstances attendant upon its coming into
existence. Whatever the nature of the document,
consideration must
be given to the language used in the light of the ordinary rules of
grammar and syntax; the context in which
the provision appears; the
apparent purpose to which it is directed and the material known to
those responsible for its production.
Where more than one meaning is
possible each possibility must be weighed in the light of all these
factors. The process is objective,
not subjective. A sensible
meaning is to be preferred to one that leads to insensible or
unbusinesslike results or undermines
the apparent purpose of the
document….’
[9]
(771/21)
[2023] ZASCA 49
(13 April 2023) at para 17.
[10]
[2017]
ZACC 35
;
2018 (1) SA 1
(CC) at para 67.
[11]
[2008]
ZASCA 6
;
2008 (3) SA 371
(SCA) at paras 12 - 13.
[12]
Matjhabeng
supra
at
para 85.
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