Case Law[2024] ZALCC 42South Africa
BO Woodburn Family Trust v Minister of Agriculture, Land Reform and Rural Development and Others (LCC81/2024) [2024] ZALCC 42 (13 December 2024)
Headnotes
of submissions, and the legal framework. I will then apply the law to the facts.
Judgment
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# South Africa: Land Claims Court
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## BO Woodburn Family Trust v Minister of Agriculture, Land Reform and Rural Development and Others (LCC81/2024) [2024] ZALCC 42 (13 December 2024)
BO Woodburn Family Trust v Minister of Agriculture, Land Reform and Rural Development and Others (LCC81/2024) [2024] ZALCC 42 (13 December 2024)
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sino date 13 December 2024
IN
THE LAND COURT OF SOUTH AFRICA
HELD
AT RANDBURG
CASE
NUMBER: LCC
81/2024
BEFORE
THE HONOURABLE FLATELA J
Heard on: 10 October
2024
Delivered on: 13
December 2024
In
the matter between:
THE
BO WOODBURN FAMILY TRUST
Applicant
and
THE
MINISTER OF AGRICULTURE, LAND REFORM
AND
RURAL DEVELOPMENT
First
Respondent
THE
REGIONAL LAND CLAIMS COMMISSIONER:
KWAZULU-NATAL
PROVINCE
Second
Respondent
MADZIKANE
COMMUNITY
Third
Respondent
ORDER
The
following order is made:
1.
Pending finalisation of case number LCC 23/2023,the first and second
respondents, are interdicted from taking any
further steps to
degazette the land claim of the third respondent in respect of the
properties as gazetted by Government Gazette
Notice No.
836/2007,published in the Government Gazette on 13 July 2007.
2.
There is no order as to costs.
JUDGMENT
FLATELA
J
Introduction
[1]
The Applicant, Bo Woodburn Family Trust,
approached this court on an urgent basis to seek interim interdictory
relief against the
First and Second Respondents pending finalisation
of case number LCC 23/2023 ( the main proceedings). The interim
interdict sought
to prevent the First and Second Respondents from
taking any steps to de-gazette the land claim lodged on behalf of the
Third Respondent
in respect of the Applicant’s property
described as
Portion 1 of the Farm Cromwell
No
.
2 No
.
4544 in extent 158,4091 hectares held under title
deed T22625/1994 (‘
the applicant’s
property
’)
.
The Applicant also seeks punitive costs against the State
Respondents.
[2]
The Third Respondent’s land claim
against the applicant’s property was published in Government
Gazette No. 836/2007
on 13 July 2007. Notwithstanding the publication
of the Third Respondent’s land claim over 17 years ago, the
First and Second
Respondent (‘
the
State Respondents
’
) did not
acquire the Applicant’s properties. The State’s reason
for not administratively settling the Third Respondent's
land claim
is that it was consolidated with two other land claims, and
thereafter, the claim was settled in 2013. Inkosi Msekezi
Zulu
disputes the State’s version on behalf of the Third Respondent.
[3]
On the 06 March 2023, the Applicant
instituted the main
proceedings, seeking
inter alia
orders compelling the First and Second Respondent to acquire its
properties, namely,
i.Potion
1 of the Farm Cromwell No. 2 No. 4544 in extent of 158, 4091 hectares
held under Title Deedd T22625/1994;
ii.Remainder
of the Farm Lot XX No. 8211, Registration No ET, measuring 154, 7704
hectares; and
iii.The
Farm Lot LK 9393, Registration Division ET, measuring 160, 7898
hectares (collectively known as “
Finchley”
for the restoration of the Third Respondent’s
claim in terms of the Restitution of Land Rights Act 22 of 1994 (‘
The
Restitution Act’
). The matter is
pending before this Court.
[4]
Inkosi Msekezi Zulu, on behalf of the Third
Respondent, supports the relief sought in the main application.
[5]
The Second Respondent, on behalf of the
State, opposes the main application and has delivered an answering
affidavit filed on 22
June 2023. In the answering affidavit, the
Second Respondent inter alia contend that––
a.
The Applicant rejected the State’s
Respondents’ offer to purchase the Applicant’s
properties;
b.
The Third Respondent’s claim was
fully settled in 2013, and no further properties would be acquired;
and
c.
Acquiring and restoring the unclaimed land
to the Third Respondent would result in overcompensation. As a
result, Mr Ndlovu, on
behalf of the State Respondents, submitted that
the State was in the process of degazetting the Third Respondent’s
claim.
[6]
The Applicant and the Third Respondent are
disputing the settlement of the claims in the main proceedings. They
contend that they
were under
bona
fide
impression and belief that the Applicant’s properties would
also be acquired. The issue regarding the settlement of the Third
Respondent’s claim is pending before this court. The Applicant
further contends that the withdrawal of the 13 July 2007 publication
would render the main application nugatory
or obsolete.
[7]
The Applicant contends that on 15 April
2024, a “without prejudice” meeting was called by the
Applicant between the
parties and their legal representatives to
discuss the matter to avoid further litigation. It was during that
meeting that Mr.
Ndlovu, the Head of Legal in the office of the
Second Respondent, threatened that the First and Second Respondents
would immediately
degazette the Third Respondent’s claim.
[8]
As a result, the Applicant then sought an
undertaking from the First and Second Respondents’ attorneys
that the First and
Second Respondents would not take any action to
withdraw the publication of the Third Respondent’s land claim,
pending the
main proceedings. The State Respondents’ attorneys
advised the Applicant’s attorneys that no decision had been
made
and that they would inform them when the decision had been made.
This response from State Respondents triggered the urgent application
issued on 13 May 2024.
[9]
On 15 May 2024, after having perused the
application, I was satisfied that the allegations, if established,
rendered the matter
urgent and justified the relief sought in terms
of the Notice of Motion. I thereafter issued directions in terms of
Rule 34(3)(b)
of the Rules of this Court relating to the service
of
pleadings, the time limits for delivery of answering and replying
affidavits, the time, date and venue or venues for the hearing.
The
matter was set down on 25 July 2024.
[10]
The matter did not proceed on the scheduled
date due to non-compliance with the directives. The matter was
finally heard on 10 October
2024.
[11]
The Respondents are opposed to the
application.
The State Respondents raised
a
point in limine
relating to the urgency
of the application and the disclosure of a “without prejudice”
meeting.
[12]
Regarding urgency, the State Respondents
deny that this matter is urgent. They contend that the Applicant has
failed to state the
circumstances that render the matter urgent and
the reason why substantial redress could not be afforded by a hearing
in due course.
[13]
The State Respondents contend that no
decision has been made regarding degazetting the Third
Respondent
’
s
claim. The State Respondents aver that the Applicant is well aware
that pursuant to the launching of the main proceedings, the
Second
Respondent instructed various experts to assist him in assessing the
issue of overcompensation and that the issue of degazetting
of the
Third Respondent’s claim will depend on the experts' opinions.
[14]
The Applicant contends that the matter is
urgent as the State Respondent’s action by taking actions to
degazette the Third
Respondent’s Claim is aimed at depriving
them of the right in terms of section 34 of the Constitution and the
remedies that
they may have in future do not provide them substantial
relief.
[15]
It is now opportune to describe the
parties, the Factual background, the issues, the parties' summary of
submissions, and the legal
framework. I will then apply the law to
the facts.
The Parties
[16]
The Applicant is the Bo Woodburn Family
Trust, a Trust registered in terms of Section 6(1) of the Trust
Property Control Act 57
of 1988 with Registration NO: IT
2716/1994/PM.
[17]
The First Respondent is the Minister of
Agricultural, Land Reform and Rural Development, in his official
capacity, and is responsible
for the implementation of the provisions
of the Restitution Act. The Second Respondent is the Regional Land
Claims Commissioner
Kwazulu-Natal in his official capacity as such
and in terms of the provisions of the Restitution Act.
[18]
The Third Respondent is the Madzikane
Community, a claimant community as envisaged by the provisions of the
Restitution Act.
Factual Background
[19]
Akin to many other land restitution claims,
this matter has a protracted history. The claim on behalf of the
Third Respondent was
lodged on 31 December 1998 with respect to
various properties in the magisterial district of Ixopo, Kwa-Zulu
Natal. The Applicant’s
property was part of the properties that
were claimed. The claim was accepted as prima facie valid by the
Second Respondent. Notice
no 836 of 2007 was thereafter published in
the Government Gazette on 13 July 2007.
[20]
Subsequent to the publication, the Second
Respondent entered into various negotiations with different owners
regarding the acquisition
of their land for the purpose of restoring
it to the Third Respondent. Various properties were acquired on
behalf of the Third
Respondent, but as stated earlier, the
Applicant’s properties were not acquired by the State.
[21]
The State has provided some reasons why the
Applicant’s properties were not acquired. In their answering
affidavit, the State
Respondents disputed that Chief Msekezi Zulu
instituted the claim on behalf of the Third Respondent instead, the
following is stated:
a.
On 17 July 1995, BhekamaBhaca David Zulu
lodged the claim on behalf of the Third Respondent with the Land
Claims Commission Kwa-Zulu
Natal
.
b.
Further claims with respect to the same
land were lodged in 1998 by Dlatipi Zulu and Mayihlome Zulu
.
c.
All three claims on behalf of the Third
Respondent were consolidated into one claim. Subsequently, the
Department of Agriculture
and Rural Development acquired properties
for the purpose of settling the Third Respondent’s claim in
terms of Section 42
D read with Section 33 of the Restitution Act
,
thus, the claim was finalized/settled with the
claimant community in 2013.
[22]
The State Respondents contends further that
during the negotiations, the Applicant, represented by two brothers,
did not agree to
sell the properties at the time. During the year
2008, the Applicant’s properties were evaluated and offers made
by the State
were rejected. The state avers those other landowners
accepted offers, and the State acquired their properties. The
acquired properties
were restored in two phases between the period of
2012 and 2013 in full and final settlement of the claim. It was only
on 25 March
2022, approximately 10 years after the Third Respondent’s
claim was finalised, that the Applicant called a meeting with the
Department to discuss the sale of their properties. At this meeting,
the Applicant’s representative informed the representatives
of
the State Respondents that the Applicant was now willing to sell all
three properties.
[23]
The State Respondents contend further that
the Applicant was aware that pursuant to the launching of the main
application, the Second
Respondent instructed the State Attorney to
appoint various experts to assist him in assessing the issue of
overcompensation, as
stated in the answering affidavit. A decision to
degazette the Third Respondent’s claim will depend upon the
opinion of experts,
and in the event a decision is taken to proceed
with degazetting, the Applicant will be given an opportunity to
engage with the
opinion before the decision is taken. The Applicant
has stated that when such a decision is made, the State Respondents
should
inform them so that they bring an urgent application to
prevent degazetting.
Issue
[24]
The issue to be determined is whether the
Applicant has fulfilled the requirements of an interim interdict to
prevent the degazetting
of the
Third
Respondent’s
property.
The Applicant’s
submissions
[25]
The Applicant contends that the Trust and
the other landowners whose properties were claimed formed a group of
landowners as they
were prepared without prejudice to their rights to
discuss the voluntary acquisition of the farms for the Third
Respondent for
the benefit of the local economy and to ensure that
farming remains sustainable in the greater area. Various meetings
were held
between the officials of the Second Respondent (RLCC) and
the land owners. During those meetings, the land owners were advised
that if one farm was claimed and another of the same farmer was not,
the RLCC could consider buying both farms if such farms are,
for any
reason, dependent on each other for functionality.
[26]
The Applicant contends further that the
landowners were advised that if they were not satisfied with the
valuation done by the State
Respondents, they were entitled to obtain
their valuation to compare with the valuation of the RLCC. The farms
will be acquired
by fair market-related property valuations, after
which the landowners can decide whether to settle the claim or not.
[27]
The Applicant contends that the farms were
valued, and certain farms were acquired for the benefit of the Third
Respondent. The
Applicant’s farms were not acquired. It
contends that it was at all material times under the impression that
the State Respondents
would also acquire Finchley properties for
restoration to the Third Respondent.
[28]
The Applicant averred that the State
Respondents had been dragging the Applicant for years until the
Applicant approached its current
attorneys of record for legal
advice. In March 2023, the Applicant instituted the main proceedings
in which it seeks orders compelling
the State to acquire Finchley in
terms of the Restitution Act for the benefit of the Third Respondent
and further procedural orders
dealing with such acquisition.
[29]
The Applicant contends further that upon
receiving the State Respondent’s opposing affidavit filed on 23
June 2022, it learned
for the first time that the Third Respondent's
claim was settled fully and finally in 2013 and that the State
Respondents do not
intend to acquire any further land for the Third
Respondent. In their answering affidavit, the First and Second
Respondents alluded
to the fact that due to such a final settlement,
the claim would be degazetted.
[30]
It is apposite to record that the decision
to halt further acquisition of land was strange considering that the
State Respondents
claim to be awaiting expert opinions from valuers.
[31]
The Applicant and the Third Respondent are
disputing the settlement of the claims. The Chief requested that a
meeting be organised
with all the parties so the matter could be
discussed to avoid further litigation. The meeting took place on 15
April 2024; the
matter was not settled. It is at this meeting that
the State Respondents, through Mr Ndlovu, indicated that the State
Respondents
would immediately degazette the claim. The Applicant’s
legal representatives indicated that should the State Respondents
elect to follow the procedure in terms of Section 11A(2) of the
Restitution Act, the Applicant would obtain an interdict against
the
State Respondents. The Applicant indicated that it would seek such an
interdict in view of the fact that there is a pending
matter before
this Court in which there is a fundamental factual dispute not only
between the Applicant and State Respondents but
also between the
claimants (Third Respondent) and the State Respondents as to whether
the claim has been finally settled. The Applicant
stated that it was
of the view that the degazetting of the land claim can only be seen
as malicious.
[32]
An undertaking was sought from the State
Respondents that they would not proceed with the degazetting of the
properties until the
main proceedings had been finalised, failing
which the interdict would be sought. The State Attorney, on behalf of
the State Respondents,
informed the Applicant that a decision to
degazette the claim had not yet been made. The Respondents undertook
to inform the Applicant
once the decision was made. This indicates
that there is a possibility that such a decision would be made. The
State Respondents
did not say that it would not be made.
Point
in limine
raised
by the State Respondents
[33]
The State Respondents raised
a
point in limine
regarding the urgency
of the application and the disclosure of " without prejudice”
meeting discussions.
[34]
On urgency, the State Respondents deny that
this matter is urgent on the basis of a failure by the Applicant to
state the circumstances
that render the matter urgent, that the
Applicant has failed to show why substantial redress could not be
afforded by a hearing
in due course.
[35]
Mr. Ndlovu, on behalf of the Second
Respondent, avers that the issue of the withdrawal of the claim was
addressed in paragraph 21
of the Second Respondent’s answering
Affidavit dated 23 June 2022, wherein the Applicant was informed that
the Second Respondent
was “now” in the process of
degazetting/withdrawing the Third Respondent’s claim as it had
been settled in the
above phases.
[36]
The State Respondents contended that the
Third Respondent's claim was consolidated with two other claims that
were lodged on behalf
of the Third Respondent by Chief BhekamaBhaca
David Zulu and Dlatipi Mayihlome Zulu.
[37]
On 21 June 2023, the Second Respondent was
served with the Applicant’s Rule 35 (12) and (14) notice.
[38]
On 12 December 2023, the Second Respondent
delivered his response to the Notice together with an affidavit
dealing with the document
that could not be traced.
[39]
On 26 January 2024, the Applicant delivered
a further Rule 35(12) and (14) Notice.
[40]
On 7 March 2024, the Second Respondent
delivered his response to the Applicant’s notice together with
the affidavit dealing
with the documents that could not be traced.
[41]
On 15 April 2024, the parties held a
meeting to discuss the matter on a “without prejudice”
basis. The State Respondents
aver that the Applicant’s legal
team requested an undertaking to be informed as soon as the decision
to withdraw the Third
Respondent’s claim is taken. As soon as
they are informed, they will bring an urgent application to prevent
the withdrawal
of the Third Respondent’s claim.
[42]
The State Respondents aver further that in
a meeting held on 15 April 2024, the Applicant was informed that no
decision was made
to degazette the Third Respondent’s claim.
The State Respondents undertook to inform the Applicant as soon as
the decision
was taken to withdraw the claim on 26 May 2024. The
State Respondents are waiting for the report from the experts
regarding overcompensation;
thus, the Applicant has not laid a
foundation for seeking an interdict.
[43]
It was further submitted on behalf of the
State Respondents that this application is based on what transpired
in the without prejudice
meeting, which was held on April 15, 2024.
The negotiations undertaken to settle the disputes are privileged
from disclosure. The
Respondents did not consent to disclosure of the
discussion between the parties, and therefore, the matter ought to be
dismissed
on these grounds alone.
[44]
I now turn to deal with the first point
in
limine
raised by the
R
espondents
on urgency. In this court, the urgent applications are governed by
Rule 34, which provides as follows:
URGENT
APPLICATIONS
(1)
In urgent applications, the Court may—
(a)
dispense with any provision of these
Rules, including those which prescribe the forms, service
requirements and time limits for
applications; and
(b)
dispose of the matter at a time and
place and in a manner and in accordance with a procedure (which must,
as far as practicable,
be in accordance with these Rules) as it
considers just.
(2)
The applicant must set out in his or her
founding affidavit the circumstances which he or she avers render the
matter urgent and
the reasons why he or she cannot obtain substantial
redress at a hearing in due course.
[45]
Dealing
with the requirement of urgency in
Commissioner,
South African Revenue Services v Hawker Air Services (Pty) Ltd;
Commissioner, South African Revenue Services v Hawker
Aviation
Partnership
[1]
,
the
Supreme Court of Appeal, expressed as follows:
‘…
Urgency
is a reason that may justify deviation from the times and forms the
Rules prescribe. It relates to form, not substance,
and is not a
prerequisite to a claim for substantive relief.’
[46]
The Applicant contends that its rights in
terms of section 34 of the Constitution in the main application are
threatened by the
conduct of the State Respondents in that to
commence or to continue with a process to degazette the claim, the
State Respondents
would effectively remove the cause of action of the
Applicant in the main proceedings, thereby depriving the Applicant of
the right
to have the dispute that can be resolved by application of
law decided in a fair public hearing.
[47]
Simply put, the Applicant avers that once
the claim is degazetted, there will be no claim on behalf of the
Third Respondent; thus,
the conduct of the RLCC by degazetting the
claim will nullify its main proceedings, which constitutes prejudice
and affects their
rights in terms of section 34 of the Constitution.
[48]
The Applicant contends that after filing
the main proceedings, they thought the Respondents would suspend the
process of degazetting
the claim pending the
finalisation
of the main proceedings. It thus came as a shock
to the Applicant that the State Respondents were still considering
degazetting
the claim. Hence, the Applicant sought an undertaking
from the State Respondents.
[49]
The Applicant contends that by continuing
with the process of degazetting, the State Respondents are enjoined
in terms of
s
ection
165 (4) of the Constitution to assist and protect the court through
legislative and other measures to ensure the independence,
impartiality, dignity, accessibility and effectiveness of the courts.
[50]
The Applicant contends that the
constitutional obligations of the State Respondents would include
matters instituted and already
pending. These matters should, in
terms of
s
ection
34 of the Constitution, be permitted to continue until the conclusion
of the court process. The Applicant contends that to
commence the
process of degazetting the claim while the matter is still pending
would be contrary to the obligations of the Respondents
in terms of
section 164(4) of the Constitution.
[51]
Mr Ndlovu disputes that he threatened to
degazette the Third Respondent’s claim immediately during the
meeting of 15 April
2024. The State Respondents aver that the
Applicant was told that no decision was made to degazette the claim
and the Applicant
would be informed immediately after the decision to
proceed in terms of
s
ection
11 A (2) of the Restitution Act had been made.
[52]
It was submitted on behalf of the State
Respondents that a claim cannot be withdrawn immediately without
first notifying and affording
interested parties a right to make
representations. This would, however, only take effect after a
decision to degazette has been
made. Interested and affected parties
would, so, contend the State Respondents have a right to make
representations as to why the
claim should not be withdrawn in terms
of section 11A (2) of the Restitution Act.
[53]
It was further submitted on behalf of the
State Respondents that, in any event, the Applicant has other
remedies available to it.
In the event the Second Respondent decides
to withdraw the claim, the Applicant can bring the review proceedings
to set aside the
decision.
[54]
On the other hand, the Applicant contends
that the right to representations afforded by section 11A (2) of the
Restitution Act would
not be an adequate remedy to protect the rights
of the Third Respondent in that:
[55]
A decision must be taken either to withdraw
or to amend a gazette notice in terms of sections 11 (2) and (4)
after that notice is
published to notify the parties of the decision,
calling upon the affected party to show cause to the contrary to the
satisfaction
of the Second Respondent.
[56]
The Applicant contends that the onus is
placed on the Applicant and the Third Respondent to convince the
Second Respondent that
the claim should not be amended or withdrawn
after the Second Respondent has effectively decided that it should be
withdrawn or
amended. This process constitutes prejudice in that
their rights in terms of section 34 of the Constitution would be
nullified
through the conduct of the RLCC.
[57]
Furthermore, the Applicant contends that
the actions of the State Respondents of attempting after 10 years of
the settlement claim
and only after the institution of the main
proceedings to enforce its rights in terms of
s
ection
11 A (2) of the Restitution Act would result in removing the
Applicant’s cause of action.
[58]
The Applicant conceded that a Review is the
only remedy available after the decision to degazette. Still, it
would be expensive
and prolonged, which would not effectively ensure
the same protection as an interdict.
Discussion
[59]
Dealing
with legal principles regarding urgency, Pullinger AJ in
Chung-Fung
(Pty) Ltd and Another v Mayfair Residents Association and Others
[2]
,
expressed himself as follows in paragraph 21:
‘
It must be
apparent, therefore, that the right to approach the Court for urgent
relief is inextricably tied to a litigant's rights
under section 34
of the Constitution.
In
Chief
Lesapo
,
[3]
The Constitutional Court said: "
[a]n
important purpose of s 34 is to guarantee the protection of the
judicial process to persons who have disputes that can
be resolved by
law…"
[4]
and
"… s 34
and the access to courts it guarantees for the adjudication of
disputes are a manifestation of a deeper
principle; one that
underlies our democratic order."
[5]
[60]
Having considered the Applicant's
contention that the main application is pending and that a decision
to degazette would denude
its cause of action of practicality and
infringe its right as contained in section 34 of the Constitution, I
am of the considered
view that it is just that the matter be heard on
an urgent basis in the interest of justice and to facilitate a just
and speedy
resolution of land restitution matters, which takes a
number of years for them to be resolved. A case in point is this
matter
,
the claim
was lodged in 1998. Still, it has not been completely resolved.
Therefore, I find that this matter is urgent.
[61]
The second
point
in limine
is that this application is
based on “without prejudice” negotiations, which are
privileged from disclosure.
[62]
The
legal principles on this subject were neatly summarised in
Naidoo
v Marine Trade Insurance Co Ltd
[6]
,
where the Court said:
‘
The bona fides of the
parties in that regard was not questioned. At first blush, therefore
it would appear that,
in accordance with the general; “without
prejudice” rule such correspondence, once respondent objected
to its being
adduced in evidence, was wholly inadmissible. The
rationale of the rule is public policy: parties to disputes are to be
encouraged
to avoid litigation and expenses (nowadays very high),
delays, hostility, and inconvenience it usually entails, by resolving
their
differences amicably in full and frank discussions without fear
that, if the negotiations fail, any admissions made by them during
such discussions will be used against them in ensuing
litigation. (Kapeller v Rondalia
Versekeringskorporasie van
Suid Afrika Bpk 1964 (4) 722 (T) at 728
F-G, Scmidt Bewysreg at 420; Hoffman SA Law of Evidence 2
nd
ed at 155; Vaver at 94.)’
[63]
In
ABSA
Bank Ltd v Hammerle Group
[7]
,
the Court said:
‘
It
is true that as a general rule, negotiations between parties which
are undertaken with a view to settlement of their disputes
are
privileged from disclosure. This is regardless of whether or not the
negotiations have been stipulated to be on a “without
prejudice”. However, there are exception to this rule. One of
these exceptions is that an offer made, even on a without prejudice
basis, is admissible in evidence as an act of insolvency. Where a
party therefore concedes insolvency, as the respondent did in
this
case, public policy dictates
that such
admissions of insolvency should not be precluded from sequestration
or winding up proceedings, even if made on a
privileged occasion. The
reason for the exception is that liquidation or insolvency
proceedings are a matter which by its very
nature involves the public
interest.’
[8]
[64]
The difficulty facing the State Respondents
is that in their answering affidavit, the Respondents referred the
court to a letter
from the Applicant’s attorneys dated 18 April
2024, which records the discussion between the parties. The relevant
part records
the following:
a.
The conference was arranged to grant Inkosi
Zulu the opportunity to address some of the aspects raised by Mr.
Ndlovu in the answering
affidavit, such as the effect of the
contention that the Third Respondent’s claim has been fully
settled and that Inkosi
Zulu indicated that the Third Respondent
considered the matter
finalised
.
b.
Mr. Ndlovu stated that the stance of the
Second Respondent is that the Third Respondent has been adequately
compensated and that
any further land awarded to the community will
result in overcompensation. He indicated that the Second Respondent
would proceed
to degazette the Applicant’s properties and that
it was, at the time, in the process of doing so.
c.
After deliberations in this regard, it was
agreed that in the event of the Second Respondent taking a decision
to degazette the
Applicant properties and the claim of the Third
Respondent, such intention to degazette shall first be communicated
by Ms. Msani
to Mr. Van der Merve well in advance of the publication
of any notice in terms of the provisions of section 11(A)(2) or (3)
of
the Restitution Act. This would be done to ensure that the
Applicant will be in a position to apply for an interdict to prevent
such publication. All communication between the Second Respondent and
the Applicant is to be done through the offices of the State
Attorney
and Messrs. Cox and Partners in this regard.
d.
It was then agreed that the State Attorney
would, by no later than 26 April 2024, inform Messrs. Cox and
partners in writing whether
or not the Second Respondent will proceed
with its intention to degazette the claim. Should she need more time
to take instructions,
she would be at liberty to contact Mr. Van Der
Merve to make reasonable arrangements in this regard. The Applicant
would not unreasonably
refuse an indulgence as long as the parties
remain committed to a reasonable time frame within which to take
instructions and to
make decisions that will impact the pending
litigation.
[65]
I agree with the Applicant that the
Respondents waived the “without prejudice” privilege in
their answering affidavit
when they attached the entire minutes of
the meeting, thereby disclosing the negotiations. The minutes
recorded state
that
the
State Attorneys were to inform the Applicant’s Attorneys in
writing whether or not the Second Respondent will proceed
with its
intention to degazette the claim. Should she need more time to take
instruction, she would be at liberty to contact Mr.
Van Der Merve to
make reasonable arrangements in this regard. The State Respondents
were invited to comment and amend the minutes,
but they did not. The
second
point in limine
is equally devoid of merit and is dismissed.
[66]
Now that I have dealt with the point in
limine, I consider it prudent to deal with the legislative framework
dealing with the issues
raised in this matter.
Legislative Framework
The Constitution
[67]
Section 25(7) of the Constitution provides that:
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.
[68]
The
Restitution of Land Rights Act 22 of 1994
was enacted to
give effect to
section 25(7)
regarding the restitution of land rights
to individuals or communities that were dispossessed of their land as
a result of racially
discriminatory laws or practices.
[69]
Section 2 of the Restitution Act outlines
the criteria for the entitlement to restitution.
It entitles a
person or community dispossessed of a right in land after 19 June
1913 as a result of past racially discriminatory
laws and practices
to seek restitution of that right.
[70]
The Restitution Act provides various role players through
which the constitutional right of restitution is to be realised. They
are the Commission on Restitution of Land Rights, the First
and
Second Respondent
s
, respectively.
The Second Respondent is part of the Commission on Restitution of
Land Rights.
[71]
Section 6 of the Restitution Act outlines the general
functions of the Commission on Restitution of Land Rights. The Claim
for restitution
is directed to the Second Respondent, which is
enjoined to, among other things, investigate the merits of the claim,
decide on
a
prima facie
as to whether the provisions of
section 2 do not preclude it, and whether it is not frivolous or
vexatious. Once the Commission
on Restitution of Land Rights has
accepted the claim, the claim will be published in the Gazette. It is
then investigated further
and either mediated with the view to
settling or referred to the Land Claims Court for adjudication.
[72]
Section 6(1)(c) of the Act requires the
Chief Land Claims Commissioner to advise claimants of the progress of
their claims.
[73]
Section 11(1) of the Restitution Act provides:
‘
11.
Procedure after lodgement of claim
(1) If the
regional land claims commissioner having jurisdiction is satisfied
that─
(a) the claim has been
lodged in the prescribed manner;
(b) the claim is not
precluded by the provisions of section 2; and
(c) the claim is not
frivolous or vexatious,
he or she shall cause
notice of the claim to be published in the
Gazette
and in the
media circulating nationally and in the relevant province and shall
take steps to make it known in the district in which
the land in
question is situated.’
Section 11A (2) and (3)
of the Restitution Act states that:
11A. Withdrawal or
amendment of notice of claim
(2) Where
during the investigation of a claim by the Commission the regional
land claims
commissioner having jurisdiction has reason to believe that
any of the criteria set out in paragraphs
(a), (b) and (c) of section
11(1) have not been met, he or she shall publish in the Gazette and
send by registered post to—
(a)
the claimant;
(b)
the owner; and
(c)
where applicable, a person who has made representations in
terms of subsection (1) and any other party, who to his or her
knowledge,
may have an interest in the claim,
a notice stating that at
the expiry of the period mentioned in the notice, the notice of the
claim published in terms of that section
will be withdrawn unless
cause to the contrary has been shown to his or her satisfaction.
a.
At the expiry of the period contemplated in subsection
(2), the regional land claims commissioner shall, unless cause to the
contrary has been shown to his or her satisfaction, withdraw the
notice of claim and—
(a)
advise the persons mentioned in that subsection by notice sent by
registered post;
(b)
cause notice of his or her decision to be published in the
Gazettes; and
(c)
take other steps to make his or her decision known in the
district in which the land in question is situated.
[74]
The role of the Land Court was contained in
the now-defunct Chapter III of the Restitution Act. This chapter has
now been repealed
and replaced by the Land Court Act 6 of 2023 (‘
Land
Court Act’
). In terms of section
25 of the Land Court Act, this court may, amongst others, grant
interdictory relief.
[75]
The State Respondents submitted that after
the Applicant launched the application, the Second Respondents
instructed the State Attorney
to appoint experts to assist him in
assessing the issue of overcompensation; thus, a decision to
degazette the Third Respondent’s
claim will be based on the
experts' report which will be discovered for the applicant’s
consideration before a decision is
taken.
[76]
The State Respondents attached an
instruction letter to the experts. The purpose of instructions to the
experts is clearly stated
in paragraph one of the letter, which
states as follows: “
Please note
that this is a complicated matter, and it is challenging the current
policy on the just and equitable compensation,
and we will need an
SCA in the near future, to give a clear guidance in determining the
issue of the just and equitable compensation.
Before we approach the
SCA, we need a balanced judgment in the Land Claims Court and a
proper legal representation. So that we
can establish a clear legal
precedent and change the jurisprudence narrative on the issue of
overcompensation or under compensation”.
[77]
While the State Respondents are within
their rights to instruct their experts to advise on the issue of
overcompensation, it is
the Land Court that is empowered to deal with
the issue of compensation, including overcompensation. Section 11 (A)
(2) of the
Restitution Act does not empower the Second Respondent to
degazette on the grounds of overcompensation.
[78]
The primary jurisdictional fact contained in section 11A(2) of
the Restitution Act is that there must be an investigation prior to
the withdrawal of the publication. The claim of the Third Respondent
is not under investigation, and the Second Respondent did
not
indicate that an investigation was pending. This jurisdictional fact
has, therefore, not been established by the State Respondents;
what
has instead happened is that the Second Respondent has put the
proverbial “cart before the horse.” They ought
to have
investigated, which would presumably involve experts on valuations,
amongst others, before deciding on over-compensation.
Even then, the
State Respondents are not the final arbiters on what is and equitable
compensation. Such an issue has to be referred
to this Court for
determination.
[79]
In the answering affidavit, the State Respondents clearly
state that they intend to degazette the Third Respondent’s
claim,
and this renders the substantive issue relating to the
interdict sought common cause.
[80]
As a result of inter alia the aforegoing, I am satisfied that
the Applicant has established a strong
prima facie
right.
[81]
In
EFF V
Gordhan
[9]
the Constitutional Court said the following:
Before
a court may grant an interim interdict, it must be satisfied that the
applicant for an interdict has good prospects of success
in the main
review. The claim for review must be based on strong grounds which
are likely to succeed. This requires the court adjudicating
the
interdict application to peek into the grounds of review raised in
the main review application and assess their strength. It
is only if
a court is convinced that the review is likely to succeed that it may
appropriately grant the interdict
.”
[Own emphasis]
[82]
More
recently in
Eskom
v Vaal River Residents
[10]
The
content or nature of a prima facie right open to some doubt was
discussed in the
ad
nauseum
.
Madlanga J writing for the majority, having analysed the prima facie
right and what would lead to a dismissal of an interim interdict,
said:
“
If, in the interim
interdict proceedings, it were to appear unlikely that the intended
review would succeed, that would detract
from the requirement of a
prima facie
right.”
[83]
I am satisfied that the prima facie right, though open to some
doubt, has been established as the Applicant brought a dispute before
this Court on the acquisition of their property. That issue, which
also forms the nexus of the dispute in this application, is
still
pending before this Court. At all material times prior to the pending
application, the State Respondents had unequivocally
indicated that
they would acquire the Applicant’s property.
[84]
It is, therefore, inexplicable as to why, while there are
pending proceedings that are linked to the acquisition of the
Applicant’s
property, an administrative step is countenanced by
the Second Respondent to withdraw the publishing of the Applicant’s
claim.
[85]
The Applicant has had meetings with the State Respondents,
where the validity of the claim was not an issue, nor was the issue
of
overcompensation ever explored. The sole issue that inhibited the
third respondent’s claim from being finalised in relation
to
the Applicant’s property is the purchase price to be paid to
the Applicant in lieu of the acquisition.
[86]
It also, on a prima facie basis, seems to me that the Second
Respondent created a legitimate expectation to both the Applicant and
the Third Respondent that the Applicant’s property would be
acquired. However, that is an issue that needs to be determined
in
the main application.
[87]
In the light of the history of the matter and the facts as
summarised hereinabove, the jurisdiction fact of an investigation has
not been established. In the premises the Applicant has established a
strong
prima facie
right as it seems like the Second
Respondent is acting
ultra vires
.
[88]
It is also clear to me that the apprehension of harm has been
established as the Second Respondent contemplated a decision to
degazette.
Addressing this issue, it was submitted on behalf of the
Respondent that this degazetting is still on the air”. It was
also
a threat indicated in a meeting that the applicant’s
property would be removed from those that have been published in
terms
of section 11 of the Restitution Act. To the extent that the
State Respondents are still contemplating degazetting of the Third
Respondent’s land claim, the threat of degazetting justifies
the Applicant’s anxiety. The Applicant seeks to avert
being
involved in a protracted review process pertaining to the threatened
degazetting decision. This justifies the Applicants’
urgent
approach to this Court.
[89]
Insofar as irreparable harm is concerned, the fact that the
degazetting would render the Applicant’s rights in the main
application
nugatory satisfies the irreparable harm that they will
suffer. If the publication of the land claim is withdrawn, then their
right
to compel the State to settle the land claim due to its
validity not being in dispute would be impaired. Their only hope
would
be that a review application will re-establish such rights.
This process would render the entire main application nugatory, or it
would have to stay pending a review application that could take years
to finalize. This court cannot countenance this. The Second
Respondent should await the finalisation of the main application
before taking any steps to withdraw the publication.
[90]
As it relates to the balance of convenience, I am of the view
that the balance of convenience favours the granting of the
application.
Since the Applicant has a strong
prima facie
right, the State Respondents would suffer no prejudice if the
status
quo
is retained until the main application is finalised. The
balance of convenience favours the Applicant.
[91]
The alternative remedies suggested by the State Respondents
are not sufficient to ensure that the pending application proceeds
and
this Court inquires as to whether or not the claim of the Third
Respondent has been finalised together with the aspect of possible
overcompensation.
[92]
In the premises, I order as follows:
1. Pending
finalisation of case number LCC 23/2023,the
F
irst
and
Se
cond
R
espondents
are interdicted from taking any further steps to degazette the land
claim of the
T
hird
R
espondent
in respect of the properties as gazetted by Government Gazette Notice
No. 836/2007,published in the Government Gazette
on 13 July 2007.
2. There is no
order as to costs.
Luleka
Flatela
Judge
Land Court of South
Africa
Date
of hearing:
10 October 2024
Date of judgment: 13
December 2024
Appearances
Counsel
for the Applicant: C G VAN DER WALT SC
Instructed
by Cox & Partners
Counsel
for the Respondents: Choudree SC
Instructed
by the State Attorney, KwaZulu Natal -Durban
[1]
Commissioner,
South African Revenue Services v Hawker Air Services (Pty) Ltd;
Commissioner, South African Revenue Services v Hawker
Aviation
Partnership and Others 2006 (4) SA 292 (SCA)
para 9.
## [2][2023] ZAGPJHC 1162 (13 October 2023).
[2]
[2023] ZAGPJHC 1162 (13 October 2023).
[3]
Chief
Lesapo v North West Agricultural Bank and another
[1999] ZACC 16
;
2000
(1) SA 409
(CC)
para
13.
[4]
Ibid
para 13.
[5]
Ibid
para 16.
[6]
1978
(3) SA 666
(A) at p 677A-E.
[7]
Absa
Bank Ltd v Hammerle Group
2015
(5) SA 215(SCA)
para 13.
[8]
Ibid
para 13.
[9]
2020
(6) SA 325
CC para 42
[10]
2023 (5) SA BCLR 527 (CC) para 272
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