Case Law[2024] ZALCC 9South Africa
M Magigaba Incorporated Attorneys and Another v Legal Aid South Africa and Others (LCC147/2008; LCC 191/2008; LCC 05/2014) [2024] ZALCC 9; [2024] 2 All SA 407 (LCC) (4 March 2024)
Headnotes
Summary of undisputed facts
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: Land Claims Court
South Africa: Land Claims Court
You are here:
SAFLII
>>
Databases
>>
South Africa: Land Claims Court
>>
2024
>>
[2024] ZALCC 9
|
Noteup
|
LawCite
sino index
## M Magigaba Incorporated Attorneys and Another v Legal Aid South Africa and Others (LCC147/2008; LCC 191/2008; LCC 05/2014) [2024] ZALCC 9; [2024] 2 All SA 407 (LCC) (4 March 2024)
M Magigaba Incorporated Attorneys and Another v Legal Aid South Africa and Others (LCC147/2008; LCC 191/2008; LCC 05/2014) [2024] ZALCC 9; [2024] 2 All SA 407 (LCC) (4 March 2024)
Download original files
PDF format
RTF format
Links to summary
PDF format
RTF format
make_database: source=/home/saflii//raw/ZALCC/Data/2024_9.html
sino date 4 March 2024
FLYNOTES:
LAND TENURE – Restitution claim –
Legal
fees – Work performed over years for community seeking
restitution of land – Legal Aid taking over managing
of
legal assistance – Contending that firm not given mandate –
Court satisfied that there was no termination
of firm’s
mandate – Once mandate not revoked then issue of
accreditation was regulatory requirement to regularise
payment for
fees and disbursements incurred – Legal Aid ordered to pay
firm such fees and disbursements as assessed
by it or duly taxed –
Restitution of Land Rights Act 22 of 1994
,
s 29(3).
IN
THE LAND CLAIMS COURT OF SOUTH AFRICA
HELD
AT RANDBURG
Case
numbers:
LCC147/2008
LCC 191/2008
LCC
05/2014
In the matter between:
M.
MAGIGABA INCORPORATED ATTORNEYS
First Applicant
(Registration No.:
2007/028579/21)
ANDILE
JUSTICE
MAGIGABA
Second Applicant
and
LEGAL
AID SOUTH
AFRICA
First Respondent
CHIEF EXECUTIVE
OFFICER OF
LEGAL
AID SOUTH
AFRICA
Second Respondent
MINISTER OF JUSTICE
AND CORRECTIONAL
SERVICES
Third Respondent
REGIONAL LAND CLAIMS
COMMISSIONER,
EASTERN
CAPE
Fourth Respondent
JUDGMENT
SPILG J
INTRODUCTION
1.
The legal firm M. Magigaba Inc Attorneys
and Mr. Andile Magigaba who is a practicing attorney and sole
director of the firm brought
an urgent application against Legal Aid
South Africa as the first respondent and its Chief Executive Officer
as the second respondent
for payment of amounts allegedly owing for
legal fees and disbursements, including amounts due to counsel.
The Minister of Justice
and Correctional Services was cited as the third respondent and the
fourth respondent is the Regional Land
Claims Commissioner, Eastern
Cape (“
the RLCC
”). They were cited by reason of
their interest in the matter but no relief was sought against them.
2.
The RLCC is generally cited in proceedings
as the representative of the Commissioner and of the Commission
without the necessity
of duplicating respondents by the inclusion of
each one.
In
Midlands
North Research Group & others v Kusile Land Claims Committee &
another
[2010] JOL 26146
(LCC) Gildenhuys J appeared to recognise
the RLCC as the
alter
ego
of the Commission
[1]
. At present
there is only one RLCC who represents all regions. Although there
still exists Regional Land Claims Commission offices
they all report
to the central RLCC based in Pretoria.
3.
The court was satisfied that if the
allegations were established then the relief sought was sufficiently
urgent to warrant a deviation
from the procedural rules. Directives
were issued under
rule 34
on 20 October 2023 dispensing with the
ordinary rules as to service and time limits and directing a virtual
hearing on 31 October
2023 at which Legal Aid and its CEO were to
show cause
why the following orders should
not be granted:
a.
That they are directed and ordered
to pay to the First Applicant the amount of R1,798,098.84, being the
fees due by the First Respondent
to the First Applicant in respect of
the work performed by the Applicants and their counsel in respect of
the matter of Kwalindile
Community and Others v The Regional Land
Claims Commissioner and Others within 5 days from the date of the
granting of this Order.
b.
That the First and Second
Respondents be and are hereby directed to pay the amount referred to
in subparagraph (a) hereof into the
Bank Account of the First
Applicant, the details of which are as follows:-
(details redacted)
c.
That the First and Second
Respondents shall pay the costs of this application jointly and
severally, the one paying the other to
be absolved.
4.
The application was brought because Legal
Aid refused to pay for the fees and disbursements claimed by the
applicant since 1 January
2022 pursuant to its continued
representation of the Kwalindile in the on-going court hearings that
had commenced prior to Legal
Aid taking over the management of legal
assistance to litigants in land claims cases.
5.
The claim for payment
arises
from legal work the first applicant alleges it has performed
and disbursements for which it is liable, including counsel’s
fees , on behalf of the Kwalindile Community (“Kwalindile”)
in three consolidated cases.
These
cases involve Kwalindile’s claim for restitution of large
tracts of land in and around Mthatha. The claim is opposed
by
the
King Sabata Dalindyebo Municipality
(“
the Municipality
”)
and other alleged interested parties including the Zimbane
Community which had lodged a competing land claim
in respect of
a portion of the land claimed by the Kwalindile.
THE ISSUE
6.
The crisp issues are whether the applicant
is entitled to charge fees or incur disbursements for any work
performed prior to being
accredited and, if it is still not
accredited whether Legal Aid is entitled to withhold accreditation.
7.
The resolution of these issues however
involves whether;
a.
accreditation is an administrative or
regulatory process which, if satisfied enables the release of
payment for work done
and disbursements effected (subject to
Legal-Aid’s internal assessment or external taxation processes)
or whether the applicant
never had a mandate to represent the
Kwalindile or if it did that it was revoked.
b.
the proper administration of justice and
the interests of justice, involving provisions in the Bill of Rights,
required the applicant
to continue representing the Kwalindile, for
which Legal-Aid is liable whether by reason of the invocation of
negotiorum gestor
, estoppel or unjustified enrichment (as expended by principles
of ubuntu) or otherwise
8.
Legal Aid took a number of legal points
which also have to be addressed. They are;
a.
this court lacks jurisdiction because the
claim is one sounding in money which cannot be brought by way of
application and that
this court's jurisdiction is circumscribed by
the provisions of s 22 of the Restitution of Land Rights Act 22 of
1994 (“
the Act
”)
which does not recognize an application of this nature being
cognisable by this court;
b.
there is no urgency. Legal Aid
submits that urgency was self-created and is bound up with the
failure of the applicant to
demonstrate a clear right (because they
never were given a mandate), the failure to demonstrate irreparable
harm since the applicant
can bring action proceedings by way of
summons and that there exists alternative relief open to the
applicant in the form of such
proceedings or by taking Legal Aid on
review. Finally it is contended that the applicant will not suffer
prejudice because if it
is ultimately successful with its claim,
Legal Aid will be able to satisfy the judgment in the ordinary
course.
c.
The matter is not properly before the court
because the case number which is utilised for these proceedings was
allocated to the
main land restitution proceedings and Legal Aid is
not a party cited in those proceedings nor are the applicants.
9.
It is evident that some of these
points
in limine
must assume the correctness
of the allegations made, while certain of the other points taken are
purely procedural and involve
the exercise of this court’s
discretion in order to facilitate the fair and expeditious resolution
of land restitution matters-
which include the right to a fair
hearing and the procuring of legal assistance at the State’s
expense when the Commissioner
has considered it appropriate to do so
under s 29(4) of the Act., and generally the interests of justice .
10.
However the resolution of whether this
court has jurisdiction should be dealt with
ab
initio
and so too the purely procedural
attacks.
JURISDICTION OF THIS
COURT IN REGARD TO LEGAL ASSISTANCE
11.
The starting point in appreciating the
functioning of the provision of legal assistance under the Act is s
29 (4). It provides:
“
Where a party can not afford to pay for legal representation itself, the Chief Land Claims Commissioner may take steps to arrange legalrepresentation for such party, either through the State legal aid
system or, if necessary, at the expense of the Commission.”
Section 29(3) is
also relevant in that it recognises a right to legal representation.
It reads:
“
Any party appearing before the Court may do so in person or may be represented by an advocate or attorney.”
12.
It is evident from the provisions of s
29(4) that the responsibility lies with the Chief Land Claims
Commissioner (“
the Commissioner
”)
to arrange legal representation. The Commissioner’s hands are
however tied, in that under the section the source
of legal
assistance which can be accessed is either through the State legal
aid system or, if necessary, at the Commission’s
own expense.
Nonetheless
the responsibility to take steps to arrange legal representation is
that of the Commissioner.
It is therefore
of some significance that the RLCC gave notice that it would
abide the decision.
13.
Once the legislative source for the
provision of legal assistance to litigate land claims matters is
recognised to be s 29
(4) of the Act then it is clear that the
obligation to provide legal assistance falls on the shoulders of the
Commissioner who
under that section is entitled to engage other State
bodies to manage the provision of funding on her behalf.
Perhaps the two
most important aspects Legal Aid officials fail to appreciate is
that the assistance is provided
by the Commissioner and
that it is provided to enable litigants, and perhaps more especially
indigent communities, to engage
competent legal
representatives and experts (more especially historians,
anthropologists, land surveyors and archaeologists)
in order to
pursue their land claims against other parties under equality of
arms. .
14.
Legal Aid acts as the manager of funds
which the Commissioner, exercising her discretion, determines is to
be provided to a litigant.
It is also apparent that
provided the legal representative qualifies for accreditation, the
relationship between a claimant community
and its legal
representative is one where strong bonds are established over a
lengthy period of time and where trust and respect
are necessary to
ensure the proper functioning of an attorney client relationship.
Claimant communities under the Act are entitled
to continuity of
legal representatives if their case is to be properly pursued
and the objectives of the Act achieved bearing
in mind that the Act
is the legislation which the Constitution, within its Bill of Rights
provisions, required to be implemented.
Section 25(7) of the
Constitution provides that :
(7)
A person
or community dispossessed of property after 19 June 1913 as a result
of past racially discriminatory laws or practices
is entitled, to the
extent provided by an Act of Parliament, either to restitution of
that property or to equitable redress.
This provision is
intended to properly redress through land restoration or other forms
of restitution, the deprivation effected
by successive
pre-democracy governments of rights that Blacks had in land
15.
Courts
have repeatedly stated that a
claimant
who qualifies under s 2 (1) of the Act has a
constitutional right to seek restitution of land rights which
were
taken from him or her while the landowner has a constitutional right
to preserve his or her property.
[2]
16.
While s 34 of the Constitution entitles
everyone access to the courts in order to have disputes resolved at a
fair hearing which
includes being legally represented (and expressly
repeated in s 29(3) of the Restitution Act), s 29 (4) provides
that the
Commissioner may take steps to arrange legal representation
for a party who is unable to afford it.
17.
With this understanding of the aims and
purposes of the Act infused as it is with the Constitutional values
enunciated in s 25(7).
it is now appropriate to examine s 22 of the
Act. It provides:
(1)
There shall be a court of law to be known as the Land Claims Court
which
shall have the power,
to the exclusion
of any court contemplated in section 166 (c), (d) or (e) of
the Constitution
-
(a) to
determine a right to restitution of any right in land in accordance
with this Act;
(b)
to
determine or approve compensation payable in respect of land owned by
or in the possession of a private person
upon expropriation or
acquisition of such land in terms of this Act;
(c) to
determine the person entitled to title to land contemplated in
section 3;
(c
A)
at
the instance of any interested person and in its discretion, to grant
a declaratory order on a question of law relating
to section 25 (7) of the Constitution or
to
this Act or to any other law or matter in respect of which the Court
has jurisdiction, notwithstanding that such person might
not be able
to claim any relief consequential upon the granting of such order
;
(cB) to
determine whether compensation or any other consideration received by
any person at the time of any dispossession
of a right in land was
just and equitable;
(c
C
) to
determine any matter involving the interpretation or application of
this Act
or the Land Reform (Labour Tenants) Act, 1996 (
Act
3 of 1996
),
with the exception of matters relating to the definition of
'occupier' in
section
1 (1)
of
the Extension of Security of Tenure Act, 1997 (
Act
62 of 1997
);
(cD)
to
decide any constitutional matter in relation to this Act
or the Land Reform (Labour Tenants) Act, 1996 (
Act
3 of 1996
);
(cE) to
determine any matter involving the validity, enforceability,
interpretation or implementation of an agreement
contemplated in
section 14 (3), unless the agreement provides otherwise;
(d)
to
determine all other matters which require to be determined in terms
of this Act
.
(2)
Subject
to Chapter 8 of the Constitution, the Court shall have jurisdiction
throughout the Republic and shall have-
(a)
all
such powers in relation to matters falling within its jurisdiction as
are possessed by a High Court having jurisdiction in civil
proceedings
at the place where the land in question is situated, including the
powers of a High Court in relation to any contempt of the Court;
(b)
all
the ancillary powers necessary or reasonably incidental to the
performance of its functions
,
including the power to grant interlocutory orders and interdicts;
(c)
the
power to decide any issue
either in terms of this Act or in terms of any other law,
which
is not ordinarily within its jurisdiction but is incidental to an
issue within its jurisdiction, if the Court considers it
to be in the
interests of justice to do so
.
18.
The question of whether or not the
Kwalindile were to continue engaging the applicant and whether the
applicant has been accredited
to do so and is or is not entitled to
fees and disbursements in the engagement of counsel and the
presentation of expert evidence,
comprise matters which fall squarely
under s 29(7), and others which are
necessarily or reasonably incidental
to the issue of conducting the
trial fairly with adequate legal representation.
In any event the issue of
continuing the trial with existing legal representation and their
entitlement to fees, if the issue is
one of accreditation or the
existence of a mandate, is one which the court considers is in the
interests of justice to do since
only the court can release a legal
practitioner from continuing to represent his client in an ongoing
case which has been set down
for resumed hearings. A court must also
take into account that other parties are prejudicially affected if
the case does not proceed
while the client who is entitled to legal
representation at the cost of the State (the Kwalindile) is
prejudiced if it does.
The fact that the
application is a declarator for payment of fees and disbursements in
a monetary amount does not preclude it from
determination by this
court. If this court cannot determine an issue arising from the
exercise of a s 29(4) power it is difficult
to appreciate which court
is, if regard is had to the exclusive jurisdiction exercised by this
court in which there are no action
proceedings, only referrals and
applications. The provisions of s 22 are clearly intended to be far
reaching and generous. They
should not be unnecessarily limited
To
acceded to Legal Aid’s argument will require this court to find
that decisions requiring the payment of fees and disbursements
under
s 29(4) pursuant to proceedings brought on application
were clearly wrong. See for instance the judgment of Mpshe
AJ in
Jacobs
NO v Government of the Republic of South Africa
(LCC64/2010)
[2011] ZALCC 17
(26 August 2011). In that case Legal Aid
was the fifth respondent and it was alleged that the incurring of
expenditure in the form
of legal fees had not been authorised,
resulting in a refused to pay. The court ordered that payment be made
into the trust account
of the applicant’s attorney.
[3]
19.
The matter is clearly urgent. If the
applicant is not entitled to fees and disbursements then it will not
be able to meet its agreed
obligations to pay SARS in instalments
which in turn will result in SARS revoking the tax compliance
certificate and the
applicant losing its accreditation with
Legal Aid because it will then not be tax compliant. That would
amount to irreparable harm
because the consequences are immediate. A
successful trial in due course cannot undo the harm. The fact that
ultimately Legal Aid
will be good for the money is irrelevant.
This vicious circle
requires urgent resolution. Either Legal Aid is or is not correct
that the applicant’s accreditation is
ineffectual in respect of
fees and disbursements already incurred because accreditation is not
equivalent to Legal Aid giving a
mandate and no mandate has yet been
given to the applicant to represent the Kwalindile in the present
litigation, or because a
mandate can only be prospective.
Whether this is self-created urgency depends on the facts determined
by the court.
20.
The utilisation of an existing referral
case number is a matter of convenience because in the course of a
referral concerning one
set of claimants in relation to a particular
land claim, issues may arise involving other parties which may
directly or indirectly
impact on the claim, whether it be a competing
claimant in respect of a part of the land or another land owner who
was unaware
of a claim or an interdict to restrain a third party who
is not a party to the referral from accessing the land. This court
has
found it advisable from an administrative and logistical point of
view to utilise the umbrella case number allocated to the referral
for all incidental litigation, even if it does not involve the
existing parties to the litigation but where the issue may impact
on
the trial including the right to a fair trial and the proper running
of the case to its conclusion in the interest of
all the main
parties.
21.
Save for the issue of whether there is a
genuine or real dispute of fact which still requires determination,
the points in limine
are without merit and are dismissed with costs.
22.
The court proceeds to consider whether
there is a dispute of fact as understood by
Plascon-Evans
.
Applicants’
representation of the Kwalindile prior to Legal-Aid involvement
23.
The first applicant is the alter ego of the
second applicant. It is convenient to simply refer to them as “
the
applicant
” unless the context
otherwise requires.
24.
The applicant has represented the
Kwalindile since 2007 pursuant to its appointment by the RLCC.
It
is important to appreciate that prior to Legal Aid taking over the
management of legal assistance on 1 January 2022 the applicant
had
been appointed to represent the Kwalindile.
The
selection of legal representation for communities under the
provisions of s 29(4) of the Act had then been undertaken by The
Land
Reform Management Facility of The Department of Rural Development and
Land Reform. This facility was managed by attorneys
Cheadle Thompson
and Haysom Inc (“
CTH
”).
In about 2019 attorneys
Nkosi Sabelo Inc took over the management of the facility and the
applicant continued to represent the Kwalindile.
25.
Even prior to CTA taking over the
management, Legal Aid had in fact been managing the provision
of legal assistance for indigent
communities in cases where the
Commissioner had approved legal assistance to them under s 29(4).
This is borne out by the August
2011 judgment of Mphse AJ in
Jacobs
NO
referred to earlier.
It is relevant to note
that the provisions of s 29(4) have not changed despite Legal
Aid returning to manage the provision
of legal assistance at the
beginning of 2022.
26.
As from 1 January 2022 the land reform
management facility was assigned to Legal Aid South Africa and
continues to be run under
the management of the Land Rights
Management Unit of Legal Aid South Africa (“
LRMU
”)
27.
By the time LRMU took over the management
of the Commissioner’s responsibilities on her behalf under s
29(4), the Kwalindile
claims had already become trial ready and the
trial hearings had in fact commenced .
This occurred after a
lengthy process of hearing a number of applications, conducting
pretrial conferences to bring the three
cases to trial
readiness and the conclusion of an intensive two day long court held
inspection in loco
which included the presiding judge and
assessor.
28.
The nature of the matter is complex and
involves the history of both the Kwalindile and Zimbane, whether they
were communities for
the purposes of land restitution claims and
where the people had resided or what areas they controlled and
if so for how
long. The evidence regarded by the parties as relevant
stretch over a period of over a century and a half, much of which
taking
place against a backdrop of colonial dominance, negotiations,
conquest, exploitation or rule depending on the approach advocated
by
each of the parties.
29.
Not only are the issues complex and the
area claimed large (including both land within the metropolitan
area of Mthatha and
also rural land on its outskirts) but it also
involves disputes between more than one claimant in respect of land
owned by different
persons, some of the land allegedly being
non-restorable.
30.
The initial file numbers allocated to
these cases indicate that over fifteen years has elapsed since they
were first referred
to this court by the RLCC. The effect of
this on the claimants and on Mthatha and its development as well as
on other affected
landowners will be considered later in relation to
the interests of justice and the protection of individual rights.
31.
In order to give some
indication of the prejudice which is occasioned if this matter
did not proceed on the allocated dates:
a.
Trial dates have to be agreed well in
advance because of the busy diaries of the legal representatives and
expert witnesses. Sometimes
this has resulted in the trial only
resuming some six months later or even longer.
b.
Should any of the legal teams be unable to
attend the trial on the agreed dates then the cost implications are
significant.
There are five parties
represented in court, each with its own team of counsel and attorney
supported by experts in various disciplines.
Four of the legal teams
engage at least one senior counsel. Prior to her elevation to the
Bench, the applicant had also engaged
a senior counsel.
The
fiscus
in one form or another has been responsible for the payment of fees
to all but one of the five legal teams. The cost to taxpayers
is
therefore significant. Organs of State have accepted responsibility
for payment of the legal fees of both claimants and
are
responsible for the payment of the legal fees of the RLCC and the
Municipality.
32.
There is also prejudice to all the
parties and the people of Mthatha the longer the trial is
delayed;
a.
Some of the original claimants have
passed on and others are very elderly. As in the case of Mrs.
Grootboom, if they are entitled
to land restitution then, despite
making claims over a quarter of a century ago, they will not realise
the promise of land restitution
provided for under the Constitution
b.
The effect of gazetting the claims,
which was a precursor to the referral, resulted in the land in
issue not being developed
either in the hands of the claimants if
successful, or in the hands of the Municipality if its defence
succeeds. The provisions
of s 11 (7) of the Act, which effectively
freezes development, has resulted in some prime development areas in
the heart of Mthatha
remaining moribund for over 25 years.
33.
Any postponement of the
case from its allocated dates affects the court and its strained
resources and budget.
a.
This case requires the allocation of
a number of consecutive days and weeks to be set aside well in
advance. Any postponement close
to an agreed trial date does not
allow enough time to re-allocate the dates for another trial. This
prejudices the court and all
the other litigants;
b.
A postponement close to an allocated
trial date also involves unnecessary engagements with the parties in
relation to potential
cost arguments, cancellations if the case is
out of town and re-engaging the parties to agree on new
dates which will
further delay the finalisation of the matter.
34.
In order to bring this long outstanding
matter to trial readiness the court had to ensure the
attainment of numerous procedural
milestones in a coordinated manner.
This required the involvement and cooperation of all the litigants
and their legal representatives
and experts.
Reference need only be
made to there being no less than seven pretrial conferences
held between November 2020 and September
2021 so as to ensure
that, among other things the inspection
in loco
would be
properly conducted and cover all points of relevance to each of the
parties, that all outstanding pre-hearing admissions
were finalised
and all outstanding expert reports were delivered.
The inspection
in loco
was held on 25 and 26 May 2021. It involved observations made at 35
different sites over a very large area in and around Mthatha
by all
the parties and their experts in the presence of their legal
representatives. Throughout the inspection members of both
the
Kwalindile and Zimbane were present as observers assisting
their legal teams and also were engaged in the pointing-out
and
describing its relevance .
The minutes of the
inspection are 78 pages in length excluding the contents of a
detailed map.
35.
It is relevant to point out that the
procedural and logistical steps alone that were required to
bring to trial readiness
the determination of the competing land
claims of the applicant’s client and the Zimbane community in
the three cases were
formidable. And this was not only from the
court’s perspective. Every legal representative was required to
have a comprehensive
understand of his or her client’s case,
including what the experts had to say, by the time of the inspection
to enable
all relevant topographic and man-made features (i.e. both
natural and constructed features) together with their alleged
significance
(from a dating and cultural perspective) to be pointed
out and explained. The bundle of experts’ reports is in
excess
of 1000 pages.
36.
The road map to trial readiness had already
been finalised at the pre-trial conference of 24 March 2021. On that
date the milestones
for completing all outstanding prehearing matters
and interlocutory applications was agreed upon and the trial date set
for 17
and 18 May 2021 to deal with the interlocutory matters, 24 to
27 May to arrange for and complete the inspection after which the
experts would present their evidence.
37.
The evidence of the experts commenced on 14
October through to 20 October 2021 with the evidence of Prof
Mayende who was called
on behalf of the Kwalindile. By the end of
that session he had been led in chief by the applicant’s senior
counsel, Adv Norman,
been cross examined by the competing
claimant’s counsel, Adv Krige, and was still being
cross-examined by the City’s
senior counsel Adv Grobler. The
case was then postponed on 20 October 2021 to 16 May 2022 for the
resumption of Prof Mayende’s
cross examination and
re-examination by the applicant’s counsel. This was the first
available date for the parties and the
court (due to its own case
load) to resume the hearing.
38.
It is not an overstatement to observe that
at least by the time of the inspection in May 2021, each of the
parties and their legal
representatives would have established
the common understanding and trust necessary for at least the
attorneys to effectively
and fairly represent their clients, brief
counsel and engage experts- and this would have persisted through to
the hearings in
October 2021
Events from
Legal-Aid’s involvement to provide legal assistance
39.
It is common cause that the applicant has
been paid for all fees and disbursements incurred up to the end of
December 2021 through
the various legal assistance regimes
responsible for its management. .
40.
Mention has been made that Legal Aid took
over the managing of legal assistance on behalf of the Commissioner
on 1 January 2022.
In anticipation of this,
on 28th October 2021 Nkosi Sibelo Inc addressed a letter to existing
panelists, including the applicant,
advising them of the transfer of
legal representation functions of the land rights management facility
to Legal Aid. All panelists
were requested to ensure that they are
accredited on the Legal Aid judicare system, secure compliance
with its requirements
and that they are on the National Treasury
Central Supplier Database (“CSD”), secure
compliance with Treasury
regulations and Legal Aid requirements.
Panelists were also to ensure that they were tax compliant with the
South African Revenue
Service (“
SARS
”).
In the letter all
panelists who were not accredited on the Legal Aid Judicare system
were requested to approach its local offices
for the purposes of
accreditation and to do this by 13 November 2021.
41.
This first crucial letter does not mention
that the appointment of legal practitioners will be terminated if
accreditation was not
secured by a particular date. Nor does it state
that a new mandate is required by a panelist to continue acting for
an existing
client.
On the contrary the
letter is headed “
Transfer of Legal Representation of Land
Rights Management Facility to Legal Aid South Africa”
and
refers to the transfer of the functions undertaken by the LRM
facility of the Department to Legal Aid “
at the
centre of the efforts towards land justice
” .
The letter also states
that Legal Aid, being aware that:
”
there
is an existing panel of legal practitioners that is currently
providing services to … restitution claimants…,
is of the opinion that it will be cost effective for it to retain the
said panel of lawyers. However, the panelist will have to
be
accredited on the judicare system and National Treasury central
supplier database (CSD) to ensure compliance to treasury regulations
and Legal Aid requirements
.
The letter proceeds to
request all panelists to ensure that they are accredited on the
system, that they are on the National Treasury
CSD and ensure that
they are tax compliant.
The letter concludes with
a request to all panelists who are not accredited on Legal
Aid’s system to approach its local
offices for the purposes of
accreditation and that this must be done by 30 November 2021.
Nowhere in the letter of
28 October is there a suggestion that those who were providing
services to restitution claimants at the
time required a new mandate
or even that they will have their existing mandates revoked.
Quite the contrary; the
letter indicates that there will be a transfer of responsibility in
the management of legal assistance and
that there are accreditation
requirements which existing panelists must satisfy. There is also no
indication that mandates will
be revoked if all the requirements for
accreditation are not satisfied within the month (i.e. by 30 November
2021)
42.
On 30 October 2021 the applicant
responded and requested to remain on the panel of attorneys in
respect of the Kwalindile matter
when the facility was transferred to
Legal Aid. The applicant also requested accreditation application
forms and other necessary
documentation to facilitate the
accreditation process.
43.
On 2 December 2021 Legal Aid addressed a
letter to the land rights management facility panelists requesting
attorneys who were not
by then accredited on its Judicare system by
15 December 2021 to return their case files to Legal Aid as they
would have no further
mandate after 31 December 2021 to provide legal
representation.
The letter effectively
repeats that Legal Aid considers it cost effective to retain the
panel of lawyers but that they will have
to be accredited on the
judicare system and National Treasury CSD to ensure compliance with
treasury regulations and Legal Aid
requirements.
The letter continued
that, in addition to complying with the requirements set out in the
Legal Aid Act and regulations as well as
the Legal Aid Guide,
attorneys had to comply with a number of obligations and duties when
providing legal services, briefing
counsel, utilising the services of
experts, handling urgent applications and what is to occur when
instructed on a new matter
for the first time (“
New
Instructions and Budget”
).
There followed a separate
heading “
Accreditation of Attorneys
which repeats what
is referred to Nkosi Sibelo’s letter of 28 October but adds
that
“
We
request the attorneys that are not accredited on Legal Aid SA
judicare system by 15 December 2021 to return their case files
to
Legal Aid SA as they have no further mandate after 31 December 2021
to provide legal representation.
If the applicant’s
mandate terminated with effect from 1 January 2022, then the
issue arises whether Legal Aid was obliged
to procure legal
representation for the Kwalindile in time for the matter to proceed
five and a half months later on 16 May, and
if so, what were the
consequences of its failure to do so and what could possibly account
for such failure.
44.
The difficulty with this letter being a
clear termination of all panelist’s mandates at the end of the
year if they did not
obtain accreditation by 15 December is that
prior to 15 December further correspondence ensued.
a.
On 6th December there was another general
letter addressed by Legal Aid to all panelists. The letter dealt with
complaints
by some panelists who claimed to have experienced
difficulty in complying with the 2 December request including not
being able
to access the system.
Legal Aid however
informed them that they now would have to be accredited on or before
10 December 2021 “
in order that instructions can be issued
by Legal Aid SA to attorneys to continue to provide legal
representation to their existing
clients as from 1 January 2022
“.
b.
On 6 December 2021 the applicant completed
the Legal Aid accreditation agreement form and sent it to Legal Aid.
Legal Aid responded on 10
December advising that the J4 form, the certificate of good standing
and the High Court appearance certificate
had not been submitted;
It will be recalled that
in terms of the previous letter, attorneys were to ensure that they
are accredited by 10 December in order
that instructions can be
issued for them to continue providing legal services to their
existing clients.
Although this letter is
dated 10 December at just before 16:00, it concludes:
“
Therefore,
in order for us to complete the process of the above mentioned please
send us the outstanding documents….
Please advise should
you require any additional information”
The process that is
referred to is the "
Judicare Accreditation Application
”
45.
The letter of 10 December therefore keeps
the door open for accreditation to occur after the date
stipulated in Legal Aid’s
letters of 2 December read with that
of 6 December.
46.
The
applicant clearly understood it this way. It contends that the trial
had already commenced, the experts were giving evidence
and it would
not have been practicable to simply stop trial preparation and return
the files or terminate the mandates of counsel
or the expert who was
in the witness box still giving evidence and would have to be
re-examined by Kwalindile’s counsel
once all the other
counsel had completed their cross-examination.
[4]
47.
A factor which the court must take into
account is that Legal Aid, despite being aware that the applicant had
been representing
the Kwalindile and that the trial was part heard,
did not inform the applicant at any time after 1 January 2022 that
its mandate
had been terminated or that the files had to be returned
so that they could be given to a new firm of attorneys and counsel,
and
equally significantly, nor did Legal Aid arrange for the
Kwalindile to obtained alternative legal representation which Legal
Aid
was obligated to do if the applicant’s mandate had been
terminated.
This is so because the
Commissioner had determined that the Kwalindile were to receive legal
representation and the trial was resuming
only in mid-May 2022. This
would have given Legal Aid adequate time to arrange for new legal
representation . It does not
claim to have taken any steps to
appoint a new legal team which would have had to be the case if the
applicant’s mandate
had been terminated or if Legal Aid were
performing its functions as it is statutorily and constitutionally
obliged to for
the benefit of the indigent claimant.
48.
The applicant also submitted that no one at
either Legal Aid or Nkosi Sibelo Inc advised or even hinted
that the applicant
would not be paid for any work performed before
accreditation was obtained and the applicant had no reason to believe
that it would
not become accredited. The applicant pointed out that
other attorneys who had similar problems had been paid for all the
work they
did even if the work was performed before becoming
accredited.
Legal Aid did not deal
pertinently with these allegations but spoke around them. In its
answer, Legal Aid said that the applicant
was never given a mandate
by it to continue representing the Kwalindile and that all other
legal practitioners who continued to
represent the claimants were
accredited and are compliant. It is however common cause that the
legal representatives for Zimbane
received payment for fees and
disbursements incurred prior to obtaining accreditation.
The
import of this is that despite Legal Aid’s denial regarding the
entire contents of the relevant paragraph, the explanation
for the
denial does not challenge the allegations made by the applicant that
it was never told that payment for work performed
before
accreditation would not be paid.
[5]
49.
The trial proceeded on 16 to 27 May 2022.
The applicant continued to represent the Kwalindile and re-examined
Prof. Mayende who
completed his testimony. Other experts were called
and were cross-examined by applicant’s counsel.
The trial was adjourned
on 27 May 2022 to 6 February 2023. This was by agreement
between the parties and had regard to certain
exigencies which had
arisen and which precluded an earlier date.
50.
The length of the intervening period
between these trial dates is significant.
It was just over eight
months. If the applicant’s mandate to represent the Kwalindile
had in fact been withdrawn by Legal
Aid then it would have appointed
new attorneys and counsel who could have used the eight months to
prepare, albeit at a considerable
duplication of costs.
This is another factor
the court must weigh in determining if the mandate was in fact
terminated or if Legal Aid was prepared to
wait for the applicant to
complete the requirements for accreditation and pay for work already
done.
51.
On 8 September 2022 the applicant
then submitted its first invoice for fees and disbursements,
including a considerable sum
for counsel, to Legal Aid. The statement
covered the work done from 3 February to 18 July 2022 and was for a
total amount of R394 173.05.
52.
The hearing of expert evidence
resumed on 6 February 2023 through to 3 March. The trial was then
adjourned to 2 May.
53.
By 20 February 2023 the Registrar of the
High Court , Pietermaritzburg had issued the applicant with a High
Court Appearance certificate.
By 23 February 2023 the Legal Practice
Council had issued the applicant with a Certificate of Good Standing.
This left outstanding
the applicant’s tax issue with SARS.
54.
On 19 April 2023 the applicant sent its
second invoice for fees and disbursements to Legal Aid. Once
again, a considerable
portion was for counsel’s fees. The
invoice covered the period 19 January to 17 March 2023 and came to R
517 759.21.
55.
The trial continued from 2 May to 27
May 2023 with some breaks in between.
During the entire period
from 6 February to 27 May 2023, the evidence of Prof Mayende
(historian) was completed, as was that of
Mr. Halkett (archeologist
and aerial photography), Mr. Nattuvangam (land surveyor), Mr. Xaba
(land surveyor), Prof Peires (historian),
Ms. Cornell (oral
historian) and Mr. Joubert (mapping). In addition lay witnesses were
called on behalf of the Kwalindile and the
Zimbane.
56.
On 27 May the parties agreed to resume the
hearing on 1 August to 4 August and again from 21 August to 8
September 2023, the breaks
being necessitated to accommodate the
parties, witnesses and the court’s other trial commitments.
Of importance is that
these dates had to be thrashed out to secure agreement that this
would be the final session for the
completion of all
outstanding evidence so that the only remaining aspect
would be the hearing of argument.
Pressure had been exerted
on all the parties to finalise these dates because the matter had
dragged on for so long and finality
was required in the interests of
justice. I was first seized with the matter at the end of November
2020 after the judge who had
been dealing with it took ill. It took
until May 2021 for all outstanding pre-hearing applications to be
dealt and for the matter
to reach trial ready stage. The trial
then commenced with the inspection
in loco
near the end of May
2021 and subsequently continued through to 27 May 2023- a total
period of two and a half years- in order
to reach the final leg
of only 19 further court days required to complete the evidence.
57.
The applicant presented a third invoice to
Legal Aid on 31 May 2023 for the period 2 to 26 May 2023. The total
bill came to R 427 395.58
58.
On 19 June the applicant received a call
from Mr. Mbhense, the Legal Executive of the Land Rights Management
Unit of Legal Aid.
He enquired about the trial’s
progress. The applicant explained that they had led the evidence of
Kwalindile’s
lay witnesses and that the trial had not yet
finalised.
Mr. Mbhense then asked
the applicant who was going to pay for the work done as it was not
accredited with Legal Aid
The second applicant
advised that he had obtained most of the documents required for
accreditation but that only the tax compliance
document was
outstanding. It was then that Mbhense advised for the first time that
due to the applicant’s status with SARS,
Legal Aid would not be
paying its fees and disbursements for any work that had been
performed since 2021.
Mbhense
in his answering affidavit does not directly dispute this exchange.
He does not directly challenge that the issue
of accreditation
was raised during this discussion as being the reason for non-payment
of any amounts since 2021. He however
disputes that this was
the first time the applicant was informed that it would not be paid
“
for
work done whilst he was not accredited nor mandated by
(Legal
Aid)
to
represent any of the parties in the matter
”.
[6]
I have scoured the
answering affidavit and there is no express statement that the
applicant was informed that it would not
be paid for all work done
once accredited. The furthest Mbhense goes is to state that the
applicants were never instructed
by Legal Aid to represent the
Kwalindile but were in fact “
advised to return the files
”
and that: “
Consequently, the applicants are not entitled to
claim money or payment”
from Legal Aid.
Absent
is a statement that the applicant was in fact told that they would
not be entitled to payment for as long as they were not
accredited
even if they had continued to do work on behalf of the
Kwalindile”
[7]
. I should
also point out that the only reference to returning the files was in
Legal Aid’s letter of 2 December and, as I
have found earlier
this was overtaken by events.
The
high water mark of the answering affidavit is that the applicant was
never given a mandate, not that the mandate that had existed
prior to
Legal Aid taking over the managing of legal assistance had been
revoked or that accreditation was anything other than
a regulatory
requirement to secure payment.
[8]
Mbhense does not contend
that there is correspondence on or after 1 January 2022 which in fact
terminates the existing mandate or
that anyone else was appointed to
represent the Kwalindile, which would have to be the case if Legal
Aid had in fact terminated
the mandate.
59.
The exchange with Mbhense prompted the
applicant to address a letter to the court on 25 June 2023 advising
of their conversation
and informing the court that the
applicant had to stop acting in the matter.
.
60.
This occurred during the recess while the
presiding judge was away. Once the court became aware of the letter a
pretrial conference
was called for 25 July to address the issue.
The court however made it
clear in its directive of 19 July that it would under no
circumstances release the legal representatives
of any party from
continuing to represent their clients until the matter was completed.
The court directed the applicant and his
council to continue to
represent the Kwalindile and that they would not be released. At that
stage the reasons given were;
a.
the parties had enjoyed legal
representation and in the case of the Kwalindile the applicant had
represented them since 2007 in
litigation that had already gone right
up to an appeal and back to the court
b.
the trial had already run for many weeks,
including an extensive inspection
in
loco
with numerous case management
meetings by reason of the nature of the matter, involving competing
claimants for very large tracts
of land in the heart of Mthatha.
c.
no other legal representatives could
readily take over the matter from the applicants on behalf of the
Kwalindile in time to finalise
the matter over the allocated dates of
hearing
d.
The cost of any postponement would be
prohibitive and could not be borne by the Kwalindile or the
Commissioner since neither was
at fault
e.
the dates for the continuation of the trial
to finalisation had been agreed as the only dates available and
the court had
to change its own schedule to accommodate the parties
f.
there were no other dates available to
complete the case during 2023 and the presiding judge would be
retiring in 2024 and was unable
to find dates before his retirement
in substitution for the dates arranged.
g.
the interests of justice dictated that the
case could not be postponed and that the applicant, as legal
representative of the Kwalindile
since inception, would not be
released from continuing with the case on the dates allocated
61.
The court also indicated that the applicant
was at liberty to bring such application it considered appropriate
against Legal Aid
and make such arrangements as might be necessary
regarding its obligations to SARS.
This
cannot be read as inviting an application which would be positively
received, but in fact indicated that while the court insisted
that it
would not release legal representatives, since only it can during the
course of an ongoing trial, it did not close the
door to the
applicant either making arrangements with SARS to regularise its tax
position or to challenge the actions of Legal
Aid.
[9]
At that stage the court
was more concerned that the applicant and its counsel had been
engaged in the matter and had earned fees
from 2007 to at least the
end of 2021, and at the eleventh hour were putting at risk the final
leg of 19 days of evidence. If the
applicant was not legally entitled
to payment that would be of its own making, but the applicant
could not be permitted to
derail the court finalising the hearing of
evidence or force a postponement at considerable cost and
inconvenience to all the other
parties. It should be recalled that
the time elapsed since the previous hearing was itself considerable
and most of the remaining
lay witnesses were elderly while some had
already passed on. .
62.
Although Mr. Mbhense did not attend the
pretrial conference on 25 July, he did submit an e-mail on 19 July in
which Legal Aid’s
position was put, namely that;
a.
in terms of paragraph 4.3.1 of the Legal
Aid manual, it was necessary for a legal practitioner to comply with
the following criteria
in order to qualify for accreditation;
i.
the practitioner must be registered on and
be in full compliance with all the requirements of the National
Treasury database and
ii.
must be in good standing with SARS
b.
In terms of National Treasury Instruction
no 9 of 2017/2018 as a bid condition, accounting officers and
accounting authorities must
request bidders to register on the
Government’s central supplier database and to include in their
master registration number
in order to enable the institution to
verify the suppliers tax status on the central supplier database
c.
that it would be impossible for Legal Aid
to allocate this matter to the applicant because it is not
accredited, not tax compliant
and not registered on the central
supplier database
d.
that any attempt by Legal Aid to allocate
the matter to the applicant would be irregular and subsequent
payments by it would constitute
an irregular expenditure
e.
that the applicants clients must be advised
with immediate effect to approach any office of the Legal Aid to
apply for legal assistance
and that Legal Aid would then consider
their application and if they qualify for legal aid in terms of the
regulations and manual
of the Legal Aid,
the
application would be approved and the matter would then be allocated
to another legal practitioner who is accredited at Legal
Aid, is tax
compliant and is registered on the central supplier database
63.
Although Mbhense did not attend the
pretrial conference, Mr.Silwane of the local Legal Aid office did.
When asked about the consequences
that would arise if the applicant
could not continue representing the Kwalindile he referred back to
the letter from Legal Aid
to practitioners of 2 December 2021 where
they were informed to return the files if they were not accredited.
64.
At the pretrial, the court asked the
applicant about the status of its accreditation. The court was
informed that the only outstanding
issue was the tax clearance
certificate and that it was being discussed with SARS. The court
reiterated that it would not allow
the applicant to withdraw from the
matter for the reasons previously given.
65.
The trial then proceeded with the applicant
and its counsel representing the Kwalindile. The first session was in
fact from 1 August
to only 3 August.
66.
The applicant obtained a tax
compliant document on 21 August 2023 from SARS. This was sent by
email to Legal Aid on 23 August. The
applicant was then asked by
Legal Aid to forward its CSD MAAA number which was duly done.
67.
In the meanwhile the trial had continued on
21 August and concluded on 8 September 2023 when all the outstanding
evidence from members
of the claimant communities was completed .
68.
During the course of the session it became
apparent that there were still difficulties being experienced and on
31 August a meeting
was held in my chambers in Mthatha with all the
legal representatives, including those representing the RLCC. In view
of the discussion
the court requested that a written statement be
prepared of their complaints in the belief that this could be brought
to the attention
of Legal Aid officials and hopefully could be
amicably resolved
69.
On 4 September Mr. Dotwana from Legal Aid
was present and advised the court that as far as Legal Aid was
concerned the applicant
was still not accredited and that this was
the reason for non-payment.
70.
This prompted another meeting being called
on 7 September since it appeared that either the documentation which
the applicant had
produced for accreditation purposes had not reached
Legal Aid or there was some other difficulty which had arisen.
71.
At the meeting of 7 September Mr. Silwane
who is from Legal Aid Head office and Dotwana from its Mthatha office
attended.
72.
Silwane advised the court that the
applicant was still not tax compliant and for this reason it was not
being paid. The applicant
contended that it became tax compliant on
21 August 2023. The court again made it plain that it was not going
to release the applicant
from its obligation to continue representing
the Kwalindile.
Thereafter the applicant
sent a statement for fees on 12 September to Legal Aid for work done
between 25 July and 8 September 2023.
The amount totaled R 458 771.
73.
On 15 September 2023 Legal Aid then
addressed a letter to the applicant advising that its accreditation
had been successful. The
applicant responded on 18 September by
enquiring about payment of the outstanding invoices.
74.
On the same date Mbhense responded by
referring to Legal Aid’s earlier letter of 5 September where it
implied that the applicant
would not be paid despite now being
accredited.
75.
The applicant contends that Legal Aid’s
refusal to pay fees is an abuse of power since it knew since 2021
that the applicant
was working on the matter and at no time until 19
June, which was so to speak in the dying days of the trial,
did Legal
Aid indicate that even if the applicant was to
be accredited, it would not be entitled to its fees for any work done
or disbursements
incurred prior to the date of accreditation.
76.
The applicant obtained a SARS tax clearance
because it had reached an agreement that it would pay an amount of
some R26 300
per month in settlement of the debt it owed to SARS
until the outstanding amount was paid. In terms of the agreement SARS
was entitled
to cancel the arrangement if any installment was unpaid.
Summary of undisputed
facts
77.
The correspondence reveals that Legal Aid
informed the applicant that its mandate would be terminated if it was
not accredited by
10 December 2021. However in correspondence of 6
and 10 December it became evident that the applicant was being given
an opportunity
to regularise its affairs with SARS and could still be
accredited for the purposes of continuing with the Kwalindile case.
78.
The correspondence and the contents of
Legal Aid’s answering affidavit also reveal that it never sent
a letter terminating
the applicant’s mandate, but ran its
defence, at least in its answering affidavit, on the basis that
the applicant
never had a mandate. The difficulty for Legal Aid
is that if the applicant did not have a mandate or Legal Aid had
withdrawn
its mandate then it was obliged to secure alternative
legal representation for the Kwalindile since the Commissioner
had
directed that the community was indigent and entitled to legal
assistance. I also refer to the underlined portion of Legal Aid’s
contentions contained in its letter of 19 July .
Legal Aid however
did not provide new legal representation. This can only be accounted
for, having regard to its statutory
and constitutional obligations
(in the case of land restitution matters), on the basis that it had
not terminated the applicant’s
mandate despite being aware,
through the applicant’s fee statements, when the call was made
on 19 June 2023 that the trial
had been ongoing since 1 January
2022.
79.
Despite confirming receipt of three
statements, each being for a significant amount of fees and payments
due to counsel and the
expert, Mbhense does not give any acceptable
explanation for Legal Aid failing to respond and advise the applicant
that it has
no mandate to represent the Kwalindile and will not be
paid.
It is necessary to repeat
that the furnishing of invoices for the payment of legal work done
was not an isolated or
insignificant event that it was
possible to ignore. There were three in number spread over an eight
month period, the first being
submitted in September 2022, the next
in April 2023 and the third on the last day of May 2023 for amounts
of not less than
R R394 000, R517 000 and
R427 000 respectively. Each invoice was detailed and set
out all the legal
work that was done.
Despite all this
a.
Mbhense pointedly fails to explain why the
applicant was not informed by word or through correspondence
that the invoices
would not be paid. The only excuse offered for
failing to respond when the invoices were presented is the
following:
“
…
that
invoice was not attended to because there was no mandate given to the
applicants to act for the claimants in this matter. It
should have
dawned on the applicants at that stage that it was unsafe from a fees
perspective to continue rendering a service whilst
their account was
not processed for payment”.
[10]
“
I
submit that the applicants should not have continued to render a
service after they have noticed that previous invoices were not
paid
....”
.
[11]
b.
Legal Aid as a fact did not procure legal
assistance for the Kwalindile despite knowing that the case was
proceeding and despite
claiming that no mandate had been given
to any attorney to represent them.
80.
Legal
Aid however submits that the applicant knew as far back as December
2021 that they will not be paid as they did not have a
mandate from
Legal Aid to act for the Kwalindile and that they were instructed to
return the files.
[12]
81.
While
this is a case on motion where the
Plascon-Evans
[13]
principles apply, it is relevant in determining whether there is a
real or genuine dispute of fact to take into account the application
of
Benefit
Cycle Works
.
[14]
In
that case it was held that a party’s silence by not replying to
a communication, when a reply would be expected if its
gravamen was
genuinely disputed at the time,
may amount
to an admission of the truth of an assertion contained in it.
This
was qualified in
McWilliams v First Consolidated Holdings
(Pty) Ltd
1982 (2) SA 1
(A) at 10E - H where the court said:
'I accept that
''quiescence is not necessarily acquiescence'' (see Collen v
Rietfontein Engineering Works
1948
(1) SA 413
(A)
at
422) and that a party's failure to reply to a letter
asserting the existence of an obligation owed by such party to
the
writer does not always justify an inference that the assertion was
accepted as the truth. But in general, when according to
ordinary
commercial practice and human expectation, firm repudiation of such
an assertion would be the norm if it was not accepted
as correct,
such party's silence and inaction, unless satisfactorily explained,
may be taken to constitute an admission
by him of the
truth of the assertion, or at least will be an important factor
telling against him in the assessment of the probabilities
and in the
final determination of the dispute. And an adverse inference will
more readily be drawn when the unchallenged assertion
had been
preceded by correspondence or negotiations between the parties
relative to the subject-matter of the assertion. (See Benefit
Cycle Works v Atmore
1927 TPD 524
at 530 - 2; C Seedat
v Tuckers Shoe Co
1952
(3) SA 513 (T)
at
517 - 18; Poort Sugar Planters (Pty) Ltd v Umfolozi Co-operative
Sugar Planters Ltd
1960 (1) SA 531
(D) at 541; and cf Resisto
Dairy (Pty) Ltd v Auto Protection Insurance Co Ltd
1963 (1) SA
632
(A) at 642A - G).'
82.
The court is satisfied that there was
no termination of the applicant’s mandate if regard is had to
the conduct of Legal
Aid in not requiring the return of the files
after 1 January 2022, in not refusing to accept the invoices or
notifying the applicant
that they would not be paid, in not providing
any other legal representation for the Kwalindile despite knowing
that the trial
was on-going and that it had an obligation to provide
legal assistance for the community pursuant to the Commissioner’s
determination,
and despite knowing that the only purpose of the
applicant seeking accreditation was to continue representing the
Kwalindile in
a matter that had started in 2007.
83.
Once the mandate was not revoked then the
issue of accreditation which was solely for the purposes of the
Kwalindile matter was
a regulatory requirement to regularise the
payment for fees and disbursements incurred. Since payment can only
be effected once
accreditation occurs the amount only becomes due and
payable on accreditation. Nor can there be a concern about wasteful
or unauthorised
expenditure. The expenditure had been authorised when
the Commissioner exercised the power under s 29(4) to provide legal
assistance
to the Kwalindile. The only issue is whether the amounts
claimed are within the fees parameters.
84.
The court expresses concern at the
position adopted by Legal Aid when it knew that the trial had
continued after January 2022 yet
took no steps to provide alternative
legal representation or demand return of the files. It in fact let
the applicant continue
in the belief that once accredited it would be
entitled to recover its fees and disbursements.
Only two explanations are
open to Legal Aid. Either the one hand does not know what the other
is doing and it is acting in breach
of its statutory obligation to
provide legal assistance to the Kwalindile as had been required of it
when the Commissioner exercised
the power under s 29(4), or
Legal Aid is opportunistic in knowingly allowing the applicant to
incur costs and disbursements
in providing legal assistance to the
Kwalindile without any intention of meeting its own obligations to
provide such legal assistance
at State expense.
Legal Aid is not a
private litigant. It is a statutorily created institution which is
obliged to fulfil its mandate of procuring
legal services to indigent
communities to enable them to bring their claims for restitution of
land rights and not to abdicate
that function.
85.
The concern that if it pays the applicant
for work done it will be acting contrary to various legislation and
regulations is illusory.
Once accreditation takes place there is
compliance and payment for any work performed only then becomes due
and payable. To
hold otherwise would mean that the
moment an accredited panellist defaults with a tax obligation
it must desist from
representing the client despite having a mandate
and even if the case is continuing in court. The court must run
efficiently in
the interests of the proper administration of justice
and in the interests of all the other litigants and in obtaining
finality.
An intolerable situation will arise if the requirements of
accreditation are to be regarded as something other than regulatory
requirements for the proper administration of Legal Aid and therefore
can regularise an existing situation once it has occurred.
86.
If I am wrong then both the
proper administration of justice and the interests of justice,
involving as it does provisions
in the Bill of Rights, required the
applicant to continue representing the Kwalindile, for which
Legal-Aid is liable by reason
of the invocation of
negotiorum
gestor
, that Legal Aid is
estopped from contending that the applicant did not have a mandate or
that Legal Aid has been unjustifiably
enriched at the expense of the
applicant (as expanded by principles of ubuntu to such extent
as may be necessary).
87.
The interests of justice and its proper
administration require that indigent communities are provided with
legal assistance in cases
where they seek to enforce a
constitutionally recognised right to restitution by reason of past
discriminatory laws or practices
which resulted in their being
dispossessed of land or a right in land and under s 29 (4) of the Act
to legal assistance at the
States’s expense in order to pursue
such constitutionally recognised right.
88.
The proper administration of justice and
the interests of justice also require that a court must resolve
disputes fairly,
expeditiously and bring cases to finality in a cost
effective way for all the litigants and the court structure as well
as ensure
the optimal utilisation of the judges’ time where
court resources are stretched.
89.
The applicant continued to represent
the Kwalindile because Legal Aid did not provide another legal
representative to do so even
when the court was obliged to adjourn
the matter for lengthy periods. Legal Aid cannot take the advantage
of the Kwalindile enjoying
proper legal representation when it did
not provide this for them despite being obliged to once the
Commissioner had decided under
29(4) to provide legal assistance for
the Kwalindile. To the extent that the necessity requirement of
negotiorum gestor
may appear thin, the relationship established between the applicant,
counsel and the Kwalindile since 2007 was one of trust
and respect
which is essential in a long duration matter, that is as highly
charged as a land claim matter, and which relationship
is
difficult to replace even over a period of time.
90.
The conduct of Legal Aid in not taking
steps to obtain the files after 1 January 2022, in not sending a
communication that the mandate
was revoked, in not returning any of
the three invoices or replying that there is no relationship whereby
the applicant can claim
fees from Legal Aid and its failure to
appoint alternative legal representatives despite its obligation to
provide legal assistance
to the Kwalindile resulted in the applicant
acting to its prejudice because it
bona
fide
believed by reason of the conduct
of Legal Aid that, provided it obtained the clearances, it would be
accredited and could recover
all fees and disbursements it
incurred in representing the Kwalindile.. The applicant is therefore
entitled to rely on estoppel
where the transaction is essentially a
commercial one.
91.
In both the case of
negotiorum
gestor
and estoppel their contractual
law principles should be viewed through the prism of ubuntu.
92.
In
Beadica
231 CC and Others v Trustees for the time being of the Oregon Trust
and Others
2020 (5) SA 247
(CC) Victor
AJ said at paras 207 and 208:
[207] As the analyses
conclude in the first and second judgments, the law of contract has
moved away from formalism towards substantive
fairness. I emphasise
the value of ubuntu in adjudicating contractual fairness as it has a
greater and context sensitive reach,
especially where there is
inequality in the bargaining power between the parties. In my
view, there is a danger in conflating
or characterising fairness and
ubuntu as being a single concept. The full scope and ambit of
ubuntu is considerably wider
than fairness. As stated in
Everfresh—
“
[ubuntu]
emphasises the communal nature of society and ‘carries in it
the ideas of humaneness, social justice and fairness’
and
envelopes ‘the key values of group solidarity, compassion,
respect, human dignity, conformity to basic norms and collective
unity’.”]
[208] In true fidelity
to our transformative constitutional project, ubuntu is an
appropriate adjudicative value in reaching substantive
fairness
between contracting parties. Ubuntu provides a particularistic
context in the law of contract when, for example,
addressing the
economic positions or bargaining powers of the contracting parties
93.
In that case the contractual issue
concerned
a black economic empowerment
initiative and consequently its purpose was to redress economic
disempowerment of historically disadvantaged
persons. Victor AJ was
of the view that :
This
context requires a nuanced approach in balancing contractual autonomy
and transformative constitutionalism.”
94.
In the present case the Kwalindile, in
pursuing the constitutional right which they allege to restitution
of land, were entitled
to legal representation by reason of being an
indigent community as determined by the Commissioner under s 29(4).
Legal Aid did
not provide legal assistance as it was obliged to
despite the applicant having provided the community with legal
representation
at State expense for 14 years from 2007 to the end of
2021. Even though the applicant was obliged to obtain accreditation
to continue
receiving payment for work done it did not, but neither
did Legal Aid secure legal assistance but relied on the
applicant
to continue to provide legal representation under the
pre-existing contractual relationship until it was able to
secure accreditation.
95.
The possible claim for unjust enrichment
would be founded on Legal Aid ultimately benefitting at the expense
of the applicant because
it knowingly allowed the latter to continue
providing legal services and incurring disbursements for and on
behalf of the Kwalindile
which it, Legal Aid, was statutorily
responsible for. Legal Aid gained the benefit of not itself procuring
at its expense
such services or otherwise fulfilling its statutory
obligation to the Kwalindile and to the Commissioner pursuant to the
exercise
of the s 29(4) discretion.
96.
This is not a case where a firm of
attorneys has tried to commandeer a case or touted for work. This is
a case of a dedicated set
of legal practitioners who held the
interests of their client paramount by reason of the long road they
had travelled together,
and the bonds forged which were unlikely to
be replicated.
This is essentially a
case about whether or not the applicant could make an arrangement
with SARS and the conduct of Legal Aid is
consistent only with this
being its understanding. It was never about Legal Aid not paying the
applicant for work done once it
became tax compliant because it had
paid at least one other panellist in a similar position and
Legal Aid in performing its
functions cannot act in a discriminatory
manner.
Furthermore the provision
of legal assistance for the Kwalindile is umbilically linked to the
restitution of land rights project
and Legal Aid did not provide
alternative legal representation for them despite the trial being
on-going for a considerable time
after it took over the management of
legal assistance on 1 January 2022. And the court in the performance
of its constitutional
obligation to secure the fair and
expeditious trial of a land claims matter cannot be expected to
relinquish its functions
and duties nor is it prepared to be
placed in the middle when Legal Aid had ample opportunity to have
properly terminated
the applicant’s brief and appoint other
legal representation but elected not until almost the end of the
trial.
CONCLUSION
97.
The applicant is entitled to payment of
fees and disbursements for legal services provided to the Kwalindile
once it became accredited,
This is by reason of the
circumstances of this case, the fact that there is no evidence that
Legal Aid in fact terminated
the pre-existing mandate the applicant
held to render legal services to the Kwalindile, nor any evidence
that Legal Aid informed
the applicant that even if it obtained
accreditation it could not charge for work already performed, despite
payment not being
due owing or payable unless accreditation occurred.
98.
However, there is a process in terms
of which fees and disbursements are to be first assessed by or on
behalf of Legal Aid
and if requested by Legal Aid to be
submitted for taxation to an external costs-consultant or a
professional body. That process
has not occurred and therefore any
order must take this into account.
99.
The applicant sought ordinary costs against
Legal Aid while Legal Aid sought a punitive costs order if
successful. In line with
case law, the applicant is entitled, if
successful to its costs against an organ of State.
ORDER
100.
The following order is made:
1.
The first respondent is ordered to pay to
the first applicant such fees and disbursements as are assessed by
the first respondent
or duly taxed in accordance with its procedures
in respect of work done and disbursements incurred in representing
the Kwalindile
Community during the period from 1 January 2022 to 8
September 2023 and claimed in statements of fees sent on 8 September
2022,
19 April 2023, 31 May 2023 and 12 September 2023
2.
The assessments or taxation shall be
completed, and payment made in terms thereof by the first
respondent to the first applicant
by no later than 4 May 2024 of the
amount so assessed or taxed without prejudice to the first
applicant’s right to challenge
the correctness thereof
3.
The
first
respondent shall pay to the first applicant the party and party costs
of the application
_____________
SPILG,
J
DATE OF JUDGMENT:
4 March 2024
FOR
APPLICANTS
Adv CM Nqala
M
Magigaba Inc Attorneys
FOR 1
st
and
2
nd
RESPONDENTS Mr MS Sekgota
Legal
Aid SA
[1]
Midlands
North
at
para 35. In Florence v Government of the Republic of South Africa
2014
(10) BCLR 1137
(CC) at para 22 the minority judgment of van
der Westhuizen J noted that in relation to the Supreme Court of
Appeal decision
not to award costs:
Ultimately, however,
section 29(4) of the Restitution Act meant that the Land Claims
Commission was responsible for the costs
of the litigation.”
[2]
Midlands
North
at para 33
[3]
In
the course of the judgment Mpshe AJ relied on cases such as
Nkuzi
Development Association v Government of The Republic of South Africa
& Another
2002 (2) SA 733
LCC ,
Legal
Aid Board v Pretorius & Another
2007
(1) ALL SA 458
(SCA)
and
Legal
Aid Board v S
2010
(12) BCLR 1285
(SCA)
[4]
The
expert was Prof Mayende a key witness for the Kwalindile
[5]
[5]
See
FA para 27 read with AA para 21r
[6]
FA
para 40 read with AA para 27
[7]
FA
para 8 read with AA para 15;
[8]
AA
para 21
[9]
The
concern expressed by Mbhense in para 27 of the AA is not only
unwarranted but is not reasonable. The court’s concern
was
that it would not release legal representatives at the eleventh hour
during the course of a lengthy on-going trial
in which the
evidence was about to be completed and that if it had any recourse,
it was not art the expense of the court but
it was at liberty
to exercise such legal rights as it may have and otherwise get its
house in order.
[10]
AA
para 23
[11]
AA
para 25
[12]
AA
paras 40 and 41.3
[13]
Plascon-Evans
Paints Ltd v Van Riebeeck Paints (Pty) Ltd
1984
(3) SA 623 (A)
at 634E - 635C
[14]
Benefit
Cycle Works v Atmore
1927
TPD 524
at 530-1. In
York
Timbers Ltd v Minister of Water Affairs & Forestry
2003
(4) SA 477
(T) at 497I to 498C , Southwood J applied the test as
qualified in
McWilliams
v First Consolidated Holdings (Pty) Ltd
1982
(2) SA 1
(A) at 10E - H to motion proceedings
sino noindex
make_database footer start
Similar Cases
Mabaso and Others v Goble N.O. and Others (LCC219/2015) [2023] ZALCC 3 (16 February 2023)
[2023] ZALCC 3Land Claims Court of South Africa98% similar
A Re Shomeng Holdings Proprietary Limited and Another v Sibeko and Others (LCC 02/2024) [2024] ZALCC 7 (19 February 2024)
[2024] ZALCC 7Land Claims Court of South Africa98% similar
Sibeko and Others v A Re Shomeng Project Proprietary Limited and Others (LCC02/2024) [2024] ZALCC 31 (13 September 2024)
[2024] ZALCC 31Land Claims Court of South Africa98% similar
Biyela and Another v Dhludhla Brothers CC and Another (LCC 107/2017; 108/2017; LCC 109/2017; LCC 110/2017; LCC 111/2017) [2023] ZALCC 9 (6 March 2023)
[2023] ZALCC 9Land Claims Court of South Africa98% similar
Smit N.O and Others v Taweni and Others (LanC21R2024) [2025] ZALCC 42 (17 October 2025)
[2025] ZALCC 42Land Claims Court of South Africa98% similar