Case Law[2023] ZALCC 30South Africa
Izaacs v Government of the Republic of South Africa and Others (LCC 2018/206) [2023] ZALCC 30 (4 October 2023)
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# South Africa: Land Claims Court
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## Izaacs v Government of the Republic of South Africa and Others (LCC 2018/206) [2023] ZALCC 30 (4 October 2023)
Izaacs v Government of the Republic of South Africa and Others (LCC 2018/206) [2023] ZALCC 30 (4 October 2023)
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sino date 4 October 2023
FLYNOTES:
LAND TENURE – Restitution of rights –
Dispossession
of land
–
Assessment
of compensation – Monetary value of section 33
considerations, apart from the CPI adjusted value of erven
at the
time of dispossession – Ravages that racial discrimination
wrought on plaintiff family financially, physically
and
emotionally – CPI adjusted methodology and consideration of
value of land based on its current natural attributes
–
Restitution of Land Rights Act 22 of 1994
,
s 33.
IN THE LAND CLAIMS
COURT OF SOUTH AFRICA
HELD
AT RANDBURG
Case
number:
LCC
2018/206
REPORTABLE
OF INTEREST TO OTHER
JUDGES
REVISED
04.10.23
In the matter between:
IZAACS,
IAN JACOBIE
Plaintiff
And
THE
GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA
First
Defendant
DEPARTMENT
OF ARGRICULTURE AND RURAL DEVELOPMENT
Second
Defendant
CHIEF
LAND CLAIMS COMMISSIONER
Third
Defendant
THE
REGIONAL LAND CLAIMS COMMISSIONER;
FREE
STATE AND NORTHERN CAPE
Fourth
Defendant
JUDGMENT
SPILG, J
INTRODUCTION
1. In 1914 Prime
Minister Louis Botha and his Cabinet resolved to support Great
Britain against Germany in what came to be
known as the First World
War. In implementation of this decision, troops were sent under
General Jan Smuts into the territory then
called German South West
Africa (now Namibia).
2. At that time the
Izaacs family (the family name was then spelt Izaks) were living on
the farm Aries (where they had a half
interest). It is located in the
Gordonia area of the Northern Cape along the then Orange River, now
named the Gariep. In this locality
the Gariep River forms a natural
border between South Africa and Namibia. The Izaacs also owned two
pieces of land known as water-erf
which they rented out.
3. The family was
disastrously affected by the decision to invade German South West
Africa.
Firstly, in September
1914 a party of German soldiers stationed at Nakob crossed the border
and surrounded the Police Station which
was situated on the Isaacs
farm, fighting ensued, the family were captured and taken into German
territory as prisoners while some
of their livestock was slaughtered.
The family was subsequently released and returned to the farm
Far worse however
was to follow.
The Botha Government’s
decision to support the British war effort and its justification did
not sit well with some who, not
ten years earlier, had fought the
British and came back from the war to find that many thousands of
their women and children had
died from epidemics and the effects of
malnutrition due to the appalling conditions of the concentration
camps in which they had
been interned. This was one of the first mass
round ups of civilians during a war.
Moreover the Boers’
farms had been raised to the ground, crops destroyed and livestock
slaughtered pursuant to Lord Kitchener’s
scorched earth
policy.
[1]
4. Disaffected
Boers led by Generals De Wet, Beyers and Kemp, mounted a rebellion in
1914. This is referred to as the Afrikaner
Rebellion during which
time portions of the Northern Cape and western Free State were taken
over by their forces.
5.
A
few months after the Izaacs returned to Aries from German captivity,
rebels under General Kemp came to the Izaacs’ farm
and
commandeered a large amount of their stock
[2]
.
6.
The rebellion was later
quelled by Union troops
[3]
. Due
to the devastation wrought on the farmers through the loss of
livestock, crops and the like the Union Government established
the
Rebellion Losses Commission to compensate all those who had suffered
economic loss at the hands of the rebels.
7. In an in depth
analysis, the plaintiff’s expert Prof Legassick (who has since
passed away), described the discrimination
meted out by white
residents, businessmen and farmers to a group who formed part of a
larger racial group classified as of coloured
descent and who were
pejoratively referred to as “
Basters
”. The
disgraceful acts of racism against this group, with whom the Izaacs
were identified, is well documented. They
were stereotyped as
inherently of a particular disposition which rendered them an
inferior people. This also set them up for exploitation.
8. Prof Legassick,
in addressing the land occupation by Basters with specific reference
to Gordonia states:
“
1. A
Baster settlement was established in Gordonia in 1880 of which
Abraham and Elizabeth September were members. The settlement
was
outside the Cape Colony but established by the Cape government. It
was administered largely by Basters. In the settlement only
Basters
and those married to them were permitted to be landowners. In 1889
Gordonia became part of British Bechuanaland and from
1895 part of
the Cape Province.
2. When Basters
originally occupied the land it was relatively valueless. In the
1880s (spearheaded by Abraham September)
a canal was built leading
water from the Orange River, from Ouap down to Upington and beyond,
permitting irrigation of the land
and vastly increasing its value. By
the first decade of the twentieth century the “water-erven”
in Upington along the
river were valued at some £100 a morgen.
[Standard Bank Inspection Report, 17/8/1908]. By 1956 this land
adjoining the Orange
River could be described as “a heavenly
greenbelt… a verdant paradise” (J. Brauer, Cape Times,
18/2/1956).
Expert bundle page 9, B para 1 39 Cf Jacobs v Dept Land
Affairs
2016 (5) SA 282
(LCC) which tells the full story of the
dispossession of the September family through fraud.
3. Between the 1880s
and 1920 Gordonia was turned from a “Bastard” racial zone
into a white racial zone so that whites
could engage in commercial
agriculture within it. The purpose was for whites to acquire the land
and deprive the Basters of land,
thus applying the policy of
segregation, i.e., spatial apartheid. The loss of land by “Bastards”
can be substantiated
from the attached maps [see appendices]. In 1921
259 Bastard men from Gordonia signed a petition to the South African
parliament
complaining of the loss of their land and blaming the
South African government for it. (Pretoria Archives (PA), LDE, 3953,
11106,
“An den Achtbare Leden van het Parliament”,
September 1919/May 1921). In the same year Bastards told an official
of
the Department of Lands that they were “finding it
practically impossible to find places where they can pursue their
calling,
which is agricultural farming, and even where they do
succeed in securing places where they can live, their form of tenure
is very
insecure… [causing] them a great deal of inconvenience
and financial loss.” (PA, LDE, 3953, 11106, D. Liebenberg,
Controller, Report of 27/5/1921). Their tenancies were threatened,
wrote the Rand Daily Mail, in 1923 because “Europeans….
more and more require the land for their own use.” (14/3/1923
…
.
5. The
“Bastards” were expropriated and reduced to labourers in
Gordonia by being dispossessed of land. This
was the purpose of the
policy of segregation: turn blacks (or browns) into labourers by
dispossessing them of land that they owned.
This, it is submitted,
was a deliberate policy by public officials. Let us quote from a
published report to government by a newly-appointed
magistrate, J.
Ashburnham, in Gordonia in 1895: “The native inhabitants of the
district are the so-called Bastards. Under
the former regime a number
of these men acquired farms and other landed property, and are now
practically independent. This fact
has an unwholesome influence on
the rest of the community who, as relatives, friends, or hangers on
of landed proprietors, are
disinclined to work, and are apt to take a
somewhat false view of their position. Good servants are therefore
extremely difficult
to obtain in this district.” It was not
just the magistrate but other whites, who claimed they were unable to
obtain good
servants. This is a statement reflecting not simply the
views of the magistrate, but of white public and official opinion
more
generally. It was published in an official publication of the
Cape Government.
9.
In
short, due to racist practices “
basters
”
were considered as
racially inferior justifying their exploitation, subjugation and
diminution to the status of servants.
[4]
This is what befell the
Izaacs at the hands of the public officials who failed to recompense
them through the reparation scheme
which otherwise would have enabled
them to service their bonds. They were effectively forced off the
family land.
[5]
10. As Prof Legassick
succinctly put it in his uncontested report:
“
The
dispossession of the Isaac (Izaks) family from their farm at Aries
and erfs 408 and 409, Keimoes was as a result of racial
discrimination by public officials….The properties were
sequestrated for payment of debt, which the family was unable to
pay
because of losses of property at the hands of German and rebel South
African troops during the First World War. Because of
racial
discrimination by functionaries exercising public powers, they were
unable to secure compensation for these losses from
the Rebellion
Losses Commission, and hence could not repay their debt and lost
their property.”
11. The State accepted
that it was due to such racially discriminatory practices against the
so called Basters, that the Izaacs
family were not given an
opportunity to recover from the devastation of the stock losses
suffered during the rebellion and the
inability to tend to their
lands or receive the compensation that ought to have been paid out to
them. Instead the failure by officials
to ensure the payment of
reparations had a devastating effect on the Izaacs family. Without
reparations they were unable
to service the bonds they had taken out
in 1913 with the result that the bonds over all their properties were
called up.
12. Accordingly the
claimant satisfied the requirements of the Restitution of Land Rights
Act 22 of 1994 (“
the Act
”) in respect of being
dispossessed of the farm Aries and the water-erfs 408 and 409,
Keimoes as a consequence of past racially
discriminatory laws or
practices.
13.
The original
claimant was Johan Donald Izaacs. He instituted restitution
proceedings in December 2018. Sadly he passed away before
the trial
commenced. By agreement between the parties, his son Ian Jacobie
Izaacs was substituted as the plaintiff under Rule 15
of this Court’s
Rules. However the claim had effectively been made on behalf of
the descendants of
Caroline Regina Izaacs, Joseph
Johannes Izaacs Jnr and Johan Donald Izaacs as joint owners of the
erven. The terms of the award
in this matter make provision for its
distribution among them.
THE ISSUES
14. The case before the
court is only concerned with the dispossession of Erfs 408 and 409
Keimoes; not the farm Aries.
15. The plaintiff
accepted that the erven were not restorable and claimed;
a. R1.5 million in
respect of the dispossession
b. R 8.562 million
for the loss of use of the two erven
16. Although the State
conceded that the Izaacs family were dispossessed of the erven it
raised the following issues with regard
to the amount of compensation
which could be awarded;
a. In regard to the
dispossession it contended that the family had received partial
compensation and that the total amount
of compensation should only be
R1 149 830;
b. The family was
not entitled to compensation for past loss of the use of the
property.
17. An issue which the
court raised was the effect if any the death of the claimant and his
substitution by his son as plaintiff
has on the claim. I will return
to this.
RESTITUTION IN THE
FORM OF COMPENSATION
The Law
18. There are certain
aspects of restitution in the nature of compensation which were
settled by the Constitutional Court in the
leading case of
Florence
v Government of the RSA
2014(6) SA 456 (CC). They are;
a. the starting
point is to determine the market value and from there to have regard
to the other factors identified in s
33(1) of the Act;
b. market value is
determined at the time of dispossession and then brought to current
values based on the Consumer Price
Index (“
CPI
”)
c. the other
factors under s 33 may then result in an adjustment of the figure
determined in the first leg of the calculation.
This adjustment may
result in an overall increase or decrease in compensation from the
calculation derived by calculating the CPI
adjusted market value
under (b).
19. Section s 33 of the
Act provides:
Factors to be taken
into account by Court.
—
In considering its
decision in any particular matter the Court shall have regard to the
following factors:
(a) The desirability
of providing for restitution of rights in land to any person or
community dispossessed as a result of past
racially discriminatory
laws or practices;
(b) the desirability
of remedying past violations of human rights;
(c) the
requirements of equity and justice;
(cA) if restoration of
a right in land is claimed, the feasibility of such restoration;
(d) the desirability
of avoiding major social disruption;
(e) any provision
which already exists, in respect of the land in question in any
matter, for that land to be dealt with in a manner
which is designed
to protect and advance persons, or categories of persons,
disadvantaged by unfair discrimination in order to
promote the
achievement of equality and redress the results of past racial
discrimination;
(eA) the amount of
compensation or any other consideration received in respect of the
dispossession, and the circumstances prevailing
at the time of the
dispossession;
(eB) the history of
the dispossession, the hardship caused, the current use of the land
and the history of the acquisition and use
of the land;
(eC) in the case
of an order for equitable redress in the form of financial
compensation, changes over time in the value of
money;
(f) any other factor
which the Court may consider relevant and consistent with the spirit
and objects of the Constitution and in
particular the provisions of
section 9 of the Constitution.
20.
It is apparent from
s 33 that a court is also required to take into account s 9 of the
Constitution (the equality provision)
[6]
and ultimately must have regard to all relevant factors.
Market value, as
important as it is, is not the only factor in determining just and
equitable compensation.
21. These other factors
ultimately require the court to balance, on a case by case basis, the
interests of the claimant and the
public interest.
In some cases this may
result in an amount of compensation significantly higher than the
then market value extrapolated to current
CPI values or even in a
substantially lower award. See the judgment of Moseneke (ACJ) in
Florence
.
By way of illustrations see
Jacobs
v Department of Land Affairs and others
2016
(5) SA 382
(LCC) at paras 102 and 103 to 118 and
Jacobs
(in re Erf 38) v The Department of Land Affair
s
LCC 120/1999 at paras 32 and 33 (unrep. Judgment on 6 January 2017-
Justice.gov.za website).
[7]
The Market Value
22. It is common cause
that the historic market value of the erven at the time of
dispossession was £1200. Adjusted by CPI
to current values the
amount is R475 000.
23. However, if any
consideration can be given to contemporary sales then it is accepted
that the current value of the erven (being
cultivated as a vineyard)
on the open market would be R1.5 million.
24. Mr Terblanche who is
an expert valuator (valuer) described how the two erven owned by the
Izaacs family were originally leased
out as water erven and. because
much of it was highly fertile, subsequently came to be used for
farming grapes for the raison market.
This may account for the market
difference between a CPI adjusted market value at date of
dispossession and the present market
value.
25. The Izaacs family had
in fact leased the erven out in 1909 for a 15 year period at a rental
payable in produce which the plaintiff’s
other expert valuer
estimated to be the equivalent of £30 per annum at the time.
Whether the Izaacs
received any consideration as contemplated in s 33(eA)
26.
Adv Matebese
raised two issues on behalf of the State.
Firstly, it was pointed
out that the Izaacs had bonded their three properties in 1913 in
order to raise a loan of £2000 from
a Mr Dewar. He argued that
this constituted a benefit which the family had utilised.
27. The immediate
observation is that the loan was not utilised to purchase the erven
or the half interest in the Aries Farm. The
undisputed evidence
reveals that the erven had already been acquired by the family in
1898 and 1904 respectively while the half
interest in the Aries farm
had been purchased by 1905.
28. It is also
evident from the record of the court case in which Dewar claimed the
properties executable, that the loan had
been needed to acquire
livestock. This is because the reparations the family claimed from
the Union Government as a consequence
of the rebellion totalled
£2000. all for loss of livestock. The record of the court
proceedings also reveals that due to
the failure on the part the
Government to pay reparations to the Izaacs, their properties were
subsequently sold and fetched £1400
thereby reducing the
Izaacs’ liability to £600.
29. Furthermore, the
uncontested historic evidence produced by Profs Legassick and
Grundlingh is to the effect that the Izaacs family
lost their
livestock to the rebels, were unable to recover financially or
service the debt without receiving reparations from the
Union
Government which, as stated earlier was claimed to be the value of
the livestock so stolen.
30. The other point taken
by the State is that the Izaacs failed to prove that reparations were
not received. There are three responses
to the submission.
The State accepted that
the dispossession was due to the racist conduct of the officials who
failed to ensure that the Izaacs received
reparations timeously.
The second is that the
uncontested oral evidence of the dire circumstances and conditions
under which the family was forced to leave
Gordonia overwhelmingly
reveals that they left with very little despite having acquired land
and had reared livestock on it for
a period of almost 20 years.
The inherent
probabilities are that had the Izaacs received reparations there
would not have been an exodus in the manner described.
The historians
who were called as experts could not locate any payment of
reparations to the Izaacs. It is unnecessary, because
of the
overwhelming evidence on the point, to decide whether it was for the
plaintiff in these circumstances to prove a negative
of non-payment.
Prima facie
it would appear that on what the plaintiff had put
up in evidence, it was for the State to challenge non-payment of
reparations
and to prove the positive of payment.
The third response is
that on the evidence, the properties did not fetch more than £1400
and to take this amount into account
as consideration received, not
only ignores each of the earlier points but amounts to giving with
the one hand and taking with
the other.
Purely arithmetically,
the undisputed evidence and overwhelming probabilities are that the
£2000 loan of 1913 was used to
buy livestock which was then
commandeered within the year of purchase by the rebels. This meant
that by the time of dispossession
there was no benefit since there
was no livestock -and livestock cannot be equated with a consumable.
A benefit therefore could
only have been derived had the officials
paid out the reparations. The evidence before the court is that they
had not paid out,
at least by the time the Izaacs were dispossessed
and forced to leave their lands (which it is common cause, was as a
consequence
of racially discriminatory practices on the part of Union
Government officials).
Application of s 33
considerations
31. In a case
confined to compensation, s 33 enjoins the court to have regard to
the desirability of remedying past violations
of human rights, to the
requirements of equity and justice, to the circumstances prevailing
at the time of the dispossession, the
history of the dispossession,
the hardship caused, the current use of the land, the history of the
acquisition and use of the land
, changes over time in the value of
money and any other factor which the court may consider relevant and
consistent with the spirit
and objects of the Constitution with
specific focus on the right to dignity.
32. In many cases
involving individual family claimants, as opposed to communities, it
is difficult to predict whether they would
have remained on the land
for any length of time before selling, or a developer would have
acquired it, or that the individual
would have been able to develop
the land on his or her own, or (by reason of the vagaries of economic
factors) would have sold
at some stage prior to the property being
fully exploited.
33. In
Pillay
at
para 19 I said the following:
In a case of this
nature, the first part of the exercise undertaken by the court is to
place the claimant in the same position he,
she or the community
concerned, would have been in if discriminatory laws and practices
had not been exercised in effecting the
dispossession of the land in
question, always bearing in mind that damages under the Act are
neither punitive nor retributive.
[8]
This part of the
enquiry, which is to determine the true market value of the property
at the time of dispossession, must apply the
method of assessment
determined in Florence which requires, as an aspect
[9]
of the enquiry an
assessment of the market value of the property concerned at the time
of dispossession less any amount that may
have been received reckoned
at present day values by reference to the CPI..
The method of
assessment therefore seeks to determine financial loss at the
time of dispossession taken to current day values
[10]
.
It does not, as found in the minority judgment of Florence, measure
compensation by reference to the position the claimant
should
have been in “but for” the dispossession
[11]
.
34. In the present case
ss 33 (b), (c), (eB) and (f) are particularly significant. Over and
above the value of the property at the
time of dispossession they
also require the court to take into account the current use of the
land, the history of its acquisition,
the history of the
dispossession, the desirability of remedying past violations of human
rights and dignity and the requirements
of equity and justice.
I would add that
inferentially, if the primary objective is restitution of the land
that was taken away through racially discriminatory
laws and
practices, then if restoration is not feasible, considerations of
equity and justice as well as the court’s residual
duty to
consider any other relevant factor consistent with the spirit and
objects of the Constitution requires that some
consideration at
least be given to the discrepancy, if any, between the value of
the land based on its current
natural
attributes if it
was capable of restoration and the CPI adjusted methodology in
calculating the market value at the time
of dispossession.
35. In the present case,
in order to determine whether any regard should be had to the current
market value (which is more than
double the CPI adjusted value at the
time of dispossession) consideration should be given to the
likelihood of the Izaacs continuing
to own the erven or whether such
a consideration would be entirely speculative. If for instance, they
had acquired the land for
a short term clearly no regard could be had
to current market prices.
36. The evidence before
the court indicates that the erven had been acquired over almost a
twenty year period by an entrepreneurially
astute family. who had
grown the portfolio of land acquired along the Gariep River and had
rented it out for the equivalent of
£ 30 pa. This equated to a
2.5% pa return on the land value at the time. Those who bought there
and who were not subjected
to racially discriminatory laws or
practices tended to remain as there were few recorded sales.
37. By 1913 the Izaacs
were an established farming family engaged in livestock, leasing
water-erven and considerably expanding their
livestock. It is
therefore unlikely that they would have disposed of the erven. The
probabilities are that they would have retained
their land in
Gordonia and exploited it to good advantage.
38. But for the failure
to recompense the Izaacs family for their livestock losses as a
consequence of the rebellion, and on which
they were dependant, the
evidence demonstrates with a sufficient degree of certainty for the
purposes of s 33, that the family
would have remained on the land
indefinitely and as entrepreneurial farmers who had access to finance
and would have always used
the erven to best advantage. If they sold
the erven at any stage it would have been as cultivated to best
purpose.
39.
Florence
tells us that equitable
redress has regard to what was “
taken
away at the time of dispossession”
but
then regard must still be had to all the relevant considerations as
required by s 33. In undertaking that investigation “a
history
of hardship caused by the dispossession may entitle a claimant to a
higher compensation award in order to assuage past disrespect
and
indignity”.
[12]
40. Section s 33 (eB) in
particular entitles a court when considering the restoration of
dignity and the overarching considerations
of equity and justice to
have regard to the current use of the property. In the present case
the evidence conclusively demonstrated
that the Izaacs family who
were farmers had a strong attachment to the land in question for
purposes of exploiting it for agricultural
purposes.
41. In addition to
seeking compensation based on the current market value of the erven,
the plaintiff also claimed compensation
for the loss of use of the
erven since dispossession. This was based on the rental returns which
the family had derived by leasing
the erven out at the equivalent of
an initial rental of £30 per annum. It was argued that this
yielded an annual rate of
return calculated at 2.5% of the property
value. The revised calculation by Mr Lowther on behalf of the
plaintiff valued the loss
at R 5.496 million.
42. Mr Lowther sought to
give evidence on what he termed putting “
a number on
hardship
”. He also contended that the amount of rental
received might not have been consumed each year but invested in the
education
and development of the family and that it was reasonable to
accumulate each annual value to 2018.
43. The court ruled that
the aspects dealing with placing a monetary value on hardship were
outside Mr Lowther’s field of
expertise and disallowed his
evidence in that regard. Furthermore, the assumption of what amount
of revenue derived from the leases
would not have been consumed in
the ordinary course by each successive generation of the Isaacs
family is entirely speculative.
44.
Adv Krige
on
behalf of the plaintiff however relied on compensation being based on
the
aquilian
action for actual patrimonial loss and sought to
correlate that directly to what he submitted were “
the gross
injustice and violation of the Isaacs’ family’s human
rights”
, being considerations identified in s 33 of the
Act.
45. In my view care must
be taken that issues of dignity, equality and justice as well as
remedying past violations of human rights
remain linked to the
consequences of the dispossession from the land. This is because
restitution is only available by reason of
dispossession consequent
upon racially discriminatory laws and practices. Compensation and the
considerations on which it is to
be based in terms of s 33 remains
umbilically linked to the loss of land and its consequential effect
on those entitled to claim.
In many cases it may be difficult
to draw the line because of the all-pervasive nature of racist laws
and practices prior
to the advent of our democracy.
46. There is clear and
uncontradicted evidence that the Izaacs family of Gordonia suffered
the indignity and humiliation of being
treated as second class
citizens in the land of their birth. They were demeaned by others by
reason of the incidence of birth,
endured the humiliation of being
degraded and openly treated and spoken down to as inferior people.
Prof Legassick described
how General Smuts, endorsed the views of Olive Schreiner on the
“
half-caste
”; a person she described as “an
outcast – with settled habits and social level of neither
white nor black
”. The Professor also noted that: “
In
a keynote speech on segregation given in London during the First
World (22/5/1917), General Jan Smuts stated “There are
certain
axioms which have been laid down in regard to the black and white
races. One is that there must be no inter-mixture of
blood.”
Reference may also be had to para 5 of Prof Legassick’s report
which was reproduced earlier.
47. The dispossession
itself resulted in a complete reversal of fortunes for a solid
farming family who had been financially well
off. They were
effectively reduced to the clothes on their back, unable to provide
even a decent education for their children.
The failure to compensate
was directly related to discriminatory practices and directly
resulted in the Izaacs family having to
leave the land and endure the
life of labourers and of thwarted opportunities.
48. Our laws recognise
that transformation and restoration of dignity is not achieved within
a generation or even two. The experiences
of others who were regarded
as second class citizens both here and in other countries are well
document and the scars do not heal
even after several generations;
particularly when it concerns dignity and equality, whether of the
individual, family or community.
49. The hardship endured
by the present plaintiff and those he represents clearly was not as
severe as it was for the claimant himself.
Nonetheless it pervades
the family psyche and affects the next generation if regard is had to
the anguish and degradation of not
being accepted within the broader
society at a critical phase in the family’s fortunes by reason
of an abnormal society which
had quite literally bastardised them.
50. The question is how
does a court correlate in monetary terms the hardship endured by
previous generations to an appropriate
award of compensation for the
present generation in order to give effect to the s 33 considerations
that must be taken into account.
51. In my view to
consider the present plaintiff’s claim on the footing of a
delictual claim under the aquilian action or
to apply principles of
litis contestatio
on the death of a claimant is to ignore the
fundamental nature of restitution under the Act as expressed by the
leading cases as
well as the provisions of the Act with regard to
claims which survive a claimant’s death.
In
Jacobs
the
Supreme Court of Appeal expressly held at para 16 that:
“
Importantly,
the court made it clear that in determining what was just and
equitable, the computation of compensation was fundamentally
different and
was
not to be likened to a delictual claim aimed at awarding damages that
were capable of precise computation of loss on a ‘but
for’
basis
.
It also differed from compensation paid for expropriation, where the
person whose property is expropriated would be entitled to
compensation for the current market value of property, for any actual
financial loss caused by the expropriation, and where the
possibility
of future loss must be taken into account in determining
compensation.
52. In
Florence
the Constitutional Court said at paras 131 to 133 that:
“
[131] …
The starting point and main plank of the Restitution Act is an
acknowledgment of widespread dispossession that
occurred since 19
June 1913 and the need for equitable redress in the form of
restoration of land or financial compensation.
The legislation
does not warrant an approach that fixes compensation as if the loss
never occurred. Nor does it warrant awarding
a full replacement
value of the taken subject property.
[132] Section
2(2) of the Restitution Act provides powerful indicators in support.
First, it expressly prohibits relief to
any person who received just
and equitable compensation or a similar consideration at the time of
dispossession. This means that
the scheme of the Restitution Act
makes the time of dispossession the critical starting point of an
assessment of financial compensation.
The Government is right
that the purpose of the financial compensation is to provide relief
to claimants in order to restore them
to a position as if they had
been adequately compensated immediately after the dispossession.
It must be correct that just and equitable financial compensation
does not aim to restore claimants in current monetary terms to
the
position they would have been in had they not been dispossessed, but
rather the financial loss they incurred at the time of
dispossession
.
[133] Further
support for this approach is to be found in the very enactment of
section 33(eC) of the Restitution Act.
The scheme of the
Restitution Act undoubtedly aims to compensate financial loss as at
the time of dispossession. That explains
why just and equitable
compensation would have to reflect the change, from the time of
dispossession to the time of compensation,
in the value of money.
If compensation were based on the fiction of continued ownership of
the property, its possible financial
trajectory or capital-gain would
be difficult to compute. The purpose of compensation advanced
by Ms Florence is inconsistent
with the purpose of the Restitution
Act and in any event unwieldy and would lead to over-compensation.
(emphasis added)
53. The Constitutional
Court’s concern, that basing compensation on the fiction of
continued ownership post-dispossession
would be difficult to compute,
be unwieldly and lead to over-compensation, was also taken up in
Jacobs
where Mbha JA at paras 18 to 20 said.
[18]
Clearly, the appellant’s attempt to justify an increased award
is flawed. The Constitutional Court has held that
using the
current value of the property and the value of past loss of use of
land are not the measure of what is just and equitable.
If the LCC
had used these measures, this Court would unhesitatingly have held
that the discretion vested in that court had not
been judicially
exercised or had been influenced by wrong principles.
[19] In deciding what
would be just and equitable compensation for the dispossession of the
Farm Uap, the LCC had due regard to
the factors listed in s 33 of the
Act and accepted, in particular, that the September family had
suffered hardship as a result
of being dispossessed and subsequently
evicted from their land. This factor justified an upward movement in
the award, ultimately
arriving at the figure of R10 million as just
and equitable compensation.
[20] In rejecting the
appellant’s claim, the LCC correctly found that the appellant’s
approach seemed to be at odds
with the views of the Constitutional
Court in Florence, and that such an approach was
based on the
‘fiction’ of undisturbed perpetual ownership and
commercial exploitation of the land
. Importantly, the LCC held
that if that approach were to be adopted, the court would open a
vortex of speculative claims premised
on unknown variables of the
trajectory of the land and its use, absent the dispossession. I am
unable to fault the reasoning of
the LCC. I find, accordingly, that
the appeal in respect of the Farm Uap must fail.”
(emphasis
added)
54. In all the
circumstances, in a meaningful way a court compensates a claimant for
not being able to return to the land (which
itself can contribute to
restoring dignity and self-esteem).by taking into account the CPI
adjusted value of the land at the time
of dispossession
and
the other s 33 considerations.
Florence
informs
us that these considerations are also to be counter-weighed by the
strain on the fiscus in providing restitution whether
by acquiring
the land back or
via
other forms of restitution.
55. The State contends
that in addition to the CPI adjusted value of the erven at the date
of dispossession in the amount of R 475
000 there should be added an
amount of R 675 830 for “
hardship allegedly experienced
”
making a total amount of R 1 149 830. Little indication is provided
as to how this amount is determined. It appears to be
more
arbitrary.
.
56. The Plaintiff
on the other hand seeks the impermissible; attempting to place the
Izaacs family survivors in the same position
as if there had been no
dispossession. This is contrary to the cases of
Florence
and
Jacobs
which are both binding on this court. Furthermore the
plaintiff performs his calculations without regard to the vagaries of
life,
ignoring contingencies and making unrealistic assumptions.
57. This is a case where
the ravages that racial discrimination wrought on the Izaacs family
financially, physically and emotionally
requires to be compensated in
monetary terms based on the factors set out in s 33.
In doing so it is
necessary to give effect to the
ratio
of
Florence
at para 124
[13]
and its application in
Jacobs
at para
19 (cited earlier).
58. In the circumstances
of this case equitable redress requires that the s 33 considerations
which apply, being in particular subparas
(b), (c) (eB) and (f) (in
relation to the right to dignity) should result in a substantial
increase to the amount of R475 000 determined
as the CPI adjusted
value of the erven at the time of dispossession. One of the factors
is that historically the Izaacs family
had used their lands to their
best potential and were financially able to do so but for the
dispossession The court is satisfied
that if at the time of
dispossession the establishment of vineyards was the best use to put
the natural attributes of the erven,
then the family would have done
so.
The Izaacs family are
entitled to have this taken into account in order to satisfy the
requirements of the section, including the
spirit and objects of the
Constitution and in order to mitigate their hardship and suffering
which is directly attributed to the
racially motivated disrespect,
indignity and economic exploitation they endured as so-called
“
basters
” at the hands of the then government, its
leaders and officials.
59.
In
total the monetary value of the s 33 considerations, apart from the
CPI adjusted value of the erven at the time of dispossession,
should
not exceed the current value of the erven, which is in the amount of
R1.5 million; but it also should not be less than that
amount in
order to give proper effect to the requirements of s 33 read as a
whole. The other s 33 considerations therefore amount
to just over R1
million
[14]
which sum is to be
added to the CPI adjusted value of the erven at the date of
dispossession.
60. The court sat with
Reverend Mbuyiselo Stemela as the assessor, and is grateful to
him. He is in full agreement with the
factual outcome and the reasons
for it.
COSTS
61. No costs were
actually borne by the plaintiff personally since the State bore these
costs throughout the proceedings.
ORDER
62. It is for these
reasons that the court granted the following orders:
1.
The First and Second Defendants shall pay to
the descendants of Caroline Regina Izaacs, Joseph Johannes Izaacs Jnr
and Johan Donald
Izaacs the sum of R1.5 million Rand (One Million
Five Hundred Thousand Rand) in accordance with the provisions of the
Restitution of Land Rights Act.
For sake of clarity,
Izaacs has also been spelt Izaks by the Plaintiff
2.
The plaintiff, Ian Jacobie Izaacs, was
substituted as the designated plaintiff for John Donald Izaacs on the
latter’s death.
John Donald Izaacs having been cited as such in
terms of para 6 of the particulars as acting;
a.
on behalf of a group or class of persons, being
the descendants of Caroline Regina Izaacs, Joseph Johannes Isaacs Jnr
and John Donald
Izaacs as joint owners of the properties that were in
issue under the above claim;
b.
on his own behalf as a direct descendant of his
(i.e. John Donald Izaacs) grandfather
and accordingly the
plaintiff shall prepare a schedule of descendants entitled to
participate in the proceeds of the award claim
as set out in para 4
hereof;
3.
The schedule referred to in the previous para
of this order shall;
a.
Contain a family tree so that the surviving
descendants may be identified together with their pro-rata portion of
the proceeds
b.
Explain how the pro-rata portion of each
surviving descendant is determined as well as identify which section
of the
Restitution of Land Rights Act is
relied on for identifying
each beneficiary entitled to participate and how distribution is to
be effected where a deceased estate
is involved;
c.
Be served on each known beneficiary and
executor of any relevant deceased estate, affording each15 days to
give written notice of
any intention to object to the planned
distribution, which notice shall be delivered to all the cited
parties and the court ad
shall give an address of the legal
representative and all relevant contact details including email
addresses and cell-phone numbers
d.
Should any descendant reside outside the
Republic of South Africa steps must be taken to obtain an order for
service to be so effected
4.
By no later than 21April 2023, the plaintiff
shall depose to an affidavit which shall;
a.
Set out the steps taken to identify the
surviving beneficiaries
b.
Provide the family tree and the basis of the
pro-rata apportionment of the proceeds to each
c.
Provide the explanation set out in para 3(b)
hereof
d.
Identify the executors of all relevant estates
of the descendants of Caroline Regina Izaacs, Joseph Johannes Isaacs
Jnr and John
Donald Izaacs (being the great-grandfather of the
plaintiff) through whom the first and second respondents should make
payment,
or explain how the distribution is otherwise to be effected
e.
Provide proof of service of this order and that
specific attention to para 3(c) above has been given to the
descendants and to the
executors of relevant deceased estates as the
case might be
f.
Identify who, if anyone, opposes the proposed
distribution or method of distribution
5.
Payment of the R1.5 million is to be made into
an interest bearing trust account held by the plaintiff’s
attorney of record
within 15 days from date of this order
Such payment shall be
deemed to be payment effected by the first and second defendants in
terms of para 1 above to the descendants
so entitled
6.
Failing payment within the said 15 day period,
the first and second defendants shall pay interest at the legal rate
from two weeks
after date of judgment to date of payment.
7.
The plaintiff’s attorney of record shall
hold such amounts as aforesaid in an interest bearing trust account
as stakeholder
and shall only be entitled to pay the amounts out as
determined by the court in the manner set out in para 8 hereof
8.
The amount of R1.5 million together with such
interest as may accrue shall be paid to such descendants as are
entitled to it, or
the executors of the relevant estates for
distribution, as the case might be and as determined by the court
after it has received
the affidavit set out in para 4 above and
given further directions as to the finalisation of the payments and
the determination
of those entitled to payment out of the monies that
the first and second defendants paid into the attorneys’ trust
account
as aforesaid
9.
No order as to costs, the Plaintiff’s
legal costs already being covered by the State.
SPILG, J
DATE
OF FINAL JUDGMENT:
4
October 2023
FOR
PLAINTIFF:
Adv
J Krige
Chennells
Albertyn
FOR
DEFENDANTS
Adv
ZZ Matebese SC
Adv
T Tyuthuza
The
State Attorney, Kimberley
[1]
The Second Anglo Boer war (1899 to 1902) saw the British force some
30 000 Boer women and children as well as over 100 000 Africans
into
concentration camps. Despite humanitarian pleas (that of Emily
Hobhouse being one of the best remembered) and snap debates
at
Westminster over 25 000 Boer civilians and possibly some 14 000
Africans died in the camps from measles and typhoid epidemics
and
the effects of malnutrition. The
Kaiser’s
Holocaust
by
David Olusoga and Casper W Erichsen (2010) at p160; In
The
Boer War
by
Thomas Pakenham (1979) at p 518 the numbers were given as at “
at
least 20 000 whites and 12 000 coloured people had died in the
concentration camps
.
(See also at pp 572-3)
Olusoga
and Erichsen explain that the Spanish rulers of Cuba had four years
earlier forced civilians into similar camps in order
to quell a
revolt in 1896 (The
Kaiser’s Holocaust
at p 160)
[2]
Professor Grundlingh, who also testified on behalf of the plaintiff,
considered that the rebellion caused considerable upheaval
in the
country districts and that black peasant farmers were particularly
hard hit by the rebels’ forceful commandeering
of livestock
and other resources
[3]
South
Africa was then named the Union of South Africa pursuant to the
treaty which ended the Second Anglo Boer War
[4]
The
tainting of people who were financially well off as inferior
resulting in economic exploitation to acquire their property
or
exclude them from economic activity (and competition) for racist
ends finds adequate parallels in the legislatively sanctioned
Land
Act of 1913 and subsequent statutorily endorsed job-reservation
legislation and equates with the early actions of the Nazi
regime
against persons it considered racially inferior
[5]
Prof Grundlingh noted that it was not surprising that the matter was
not effectively remedied by officials to enable the Izaacs
to
service their bond, thereby actively facilitating their land being
declared executable under the bonds
[6]
Section 9 provides:
Equality
1.
Everyone is equal before the law and has the right to equal
protection and benefit of the law.
2.
Equality includes the full and equal enjoyment of all rights and
freedoms. To promote the achievement of equality, legislative
and
other measures designed to protect or advance persons, or categories
of persons, disadvantaged by unfair discrimination may
be taken.
3.
The state may not unfairly discriminate directly or indirectly
against anyone on one or more grounds, including race, gender,
sex,
pregnancy, marital status, ethnic or social origin, colour, sexual
orientation, age, disability, religion, conscience, belief,
culture,
language and birth.
4.
No person may unfairly discriminate directly or indirectly against
anyone on one or more grounds in terms of subsection (3).
National
legislation must be enacted to prevent or prohibit unfair
discrimination.
5.
Discrimination on one or more of the grounds listed in subsection
(3) is unfair unless it is established that the discrimination
is
fair.
[7]
This
was mentioned in the earlier judgment of
Pillay
N.O. v The Government of the Republic of South Africa and Others
([2022]
ZALCC 21 (8 August 2022) at para 8 ftn 3
[8]
Florence
at para 125.
[9]
Id
at
para 122
[10]
Id
at
paras 101 and 131-133.
[11]
Id
para
53
[12]
Both extracts from
Florence
at
para 124
[13]
The
full text of
Florence
at
para 124 reads:
Equitable
redress must be sufficient to make up for what was taken away at the
time of dispossession.149 The amount of compensation
has to be just
and equitable reflecting a fair balance between public interest and
the interest of those affected after considering
relevant
circumstances listed in section 33 of the Restitution Act. For
instance, a history of hardship caused by the dispossession
may
entitle a claimant to a higher compensation award in order to
assuage past disrespect and indignity
[14]
R1.025
million to be precise
sino noindex
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