Case Law[2025] ZACC 13South Africa
Vodacom (Pty) Ltd v Makate and Another (CCT 51/24) [2025] ZACC 13; 2025 (10) BCLR 1174 (CC); [2025] 11 BLLR 1105 (CC); 2025 (6) SA 352 (CC) (31 July 2025)
Constitutional Court of South Africa
31 July 2025
Headnotes
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## Vodacom (Pty) Ltd v Makate and Another (CCT 51/24) [2025] ZACC 13; 2025 (10) BCLR 1174 (CC); [2025] 11 BLLR 1105 (CC); 2025 (6) SA 352 (CC) (31 July 2025)
Vodacom (Pty) Ltd v Makate and Another (CCT 51/24) [2025] ZACC 13; 2025 (10) BCLR 1174 (CC); [2025] 11 BLLR 1105 (CC); 2025 (6) SA 352 (CC) (31 July 2025)
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FLYNOTES:
CIVIL
PROCEDURE – Court order –
Failure
of justice
–
Calculation of amount owing to Makate for Please Call Me idea –
Judgment vitiated by fundamental flaws –
Failure to properly
consider key evidence and arguments – Confusing and
incomplete reasoning – Substitution of
own order without a
cross-appeal – Deprived party of opportunity to address
relief granted – Violation of procedural
fairness –
Failed to engage with critical disputes – Real appeal was
not decided – Constituted a total
failure of justice –
Breach of rule of law and fair hearing right – Matter
remitted to Supreme Court of appeal
for rehearing.
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case
CCT 51/24
In
the matter between:
VODACOM
(PTY)
LIMITED
Applicant
and
NKOSANA
KENNETH
MAKATE
First Respondent
SHAMEEL
JOOSUB
N.O.
Second Respondent
Neutral
citation:
Vodacom (Pty) Ltd v Makate
and Another
[2025] ZACC 13
Coram:
Maya CJ, Madlanga ADCJ,
Majiedt J, Mathopo J,
Mhlantla J, Rogers J, Seegobin AJ, Theron J and
Tshiqi J
Judgment:
Madlanga ADCJ (unanimous)
Heard
on:
21 November 2024
Decided
on:
31 July 2025
ORDER
On
application for leave to appeal from the Supreme Court of Appeal
(hearing an appeal from the High Court of South Africa, Gauteng
Division, Pretoria):
1.
Leave to appeal is granted.
2.
The appeal is upheld.
3.
The order of the Supreme Court of Appeal is set aside.
4.
The matter is remitted to the Supreme Court of Appeal to be reheard
by a differently constituted
panel of Judges of that Court.
5.
Each party must pay their own wasted costs in respect of the abortive
hearing of the matter
in the Supreme Court of Appeal.
6.
The first respondent must pay the applicant’s costs in this
Court, including the costs
of three counsel.
JUDGMENT
MADLANGA ADCJ
(Maya CJ, Majiedt J, Mathopo J, Mhlantla J,
Rogers J, Seegobin AJ, Theron J
and Tshiqi J
concurring):
Introduction
[1]
This application is a
sequel to a regrettably unending dispute between Vodacom (Pty)
Limited, the applicant, and
Mr
Nkosana Kenneth Makate, the first respondent. This litigation,
which spans just under two decades, concerns compensation
owed by
Vodacom to Mr Makate for the “Please Call Me” (PCM)
idea. The first round of litigation between Vodacom
and Mr
Makate culminated in this Court declaring that Vodacom was bound by
an agreement concluded by Mr Makate and Mr Philip Geissler,
the then
Director
of Product Development and Management at Vodacom, and ordering,
inter alia: that Vodacom and Mr Makate negotiate in
good faith
to determine reasonable compensation in terms of the agreement; and
that, in the event of agreement on reasonable compensation
not being
reached, such compensation be determined by Vodacom’s Chief
Executive Officer (CEO), the present second respondent,
Mr Shameel
Joosub.
[1]
[2]
The negotiation between
Vodacom and Mr Makate commenced. At its end, the parties were
so far apart that the negotiation understandably
came to naught.
Mr Makate proposed settling compensation in the sum of R20.2
billion, plus interest. This was
considerably less than the
higher end of the amounts yielded by the models that Mr Makate
used in the negotiations.
Vodacom offered R10 million
compensation. The deadlock then had to be broken by the CEO.
The CEO made a determination
in the sum of R47 million. Mr
Makate was unhappy. He took the determination on review to the
High Court of South Africa,
Gauteng Division, Pretoria. The
High Court found in Mr Makate’s favour, remitting the
matter to the CEO for a
fresh determination within certain specified
parameters. Vodacom was aggrieved by the High Court
judgment.
[2]
An appeal to
the Supreme Court of Appeal was unsuccessful.
[3]
Vodacom is now before us
seeking
leave
to appeal against the Supreme Court of Appeal judgment
.
[3]
The two main contentions
by Vodacom are these. First, the majority in the Supreme Court
of Appeal
[4]
(unless the context
suggests otherwise, simply referred to as the Supreme Court of
Appeal) impermissibly strayed onto terrain that
required a
cross appeal by Mr Makate, which there was not. Second, it
disregarded the true issues before it with the
result that there was
a total failure of justice. On the first issue, Vodacom submits
that a court that determines an issue
that is not before it (i.e., an
issue in respect of which there ought to have been a cross-appeal,
which was not brought) acts
beyond its jurisdiction and thus in
breach of the rule of law
[5]
and
the right to a fair hearing protected in section 34 of the
Constitution. On the second issue, it argues that the disregard
of the true issues between the parties breached the rule of law and
its right to a fair hearing guaranteed in section 34.
[4]
Those are the two main issues that fall to be determined by this
Court. I use “in the main” in my introduction of
these two issues advisedly. The application raises many
other
issues. I will pronounce on the fate of those other issues
later in this judgment.
Background
[5]
In order for the narrative to be self-contained, I
will briefly deal with facts that were at issue when this matter was
before this
Court on the first occasion. Mr Makate, then a
trainee accountant at Vodacom, came up with what Vodacom itself
describes
as “a brilliant idea”. The idea was that
a cell phone user with no airtime could “buzz” a user
with
airtime and the latter could then call the former. The
attraction to the idea was being able to buzz or give a user a missed
call whilst the “buzzer” had no airtime. The idea
was a trigger for Vodacom to develop PCM.
[6]
A dispute arose about whether Vodacom would compensate Mr Makate
for
his idea. As indicated above, this Court resolved that dispute
by holding that a binding agreement for reasonable compensation
had
been concluded between Mr Geissler, on behalf of Vodacom, and Mr
Makate. What remained outstanding was the quantum of
compensation, which – as ordered by this Court – was
initially to be determined by Mr Makate and Vodacom, through
good faith negotiation, failing which, by Vodacom’s CEO.
Vodacom and Mr Makate did not agree on compensation.
The
parties referred the matter to the CEO who engaged in a thoroughgoing
process. The CEO afforded the parties an opportunity
to file
comprehensive written submissions. Those submissions
incorporated factual material and expert reports. That
was
followed by a two day hearing of oral submissions, after which
further written submissions were filed and further written
expert
evidence adduced.
[7]
In his determination, the
CEO took into account four models. The first was the “2001
looking forward model”.
This posited what a CEO would
probably have agreed as compensation for PCM as at 2001 when Mr
Makate made his offer. Based
on that model, the present-day
value of what Mr Makate was entitled to was R51.5 million. The
second was the “model
of Mr Makate as an employee”.
This concerned what employees are ordinarily paid for ideas that
their employers take
over. On this model, the present-day value
of what would have been payable to Mr Makate was R21.8 million.
The
third model was the “time window lock model”
[6]
(TWL). Here the CEO—
“
took the actual
TWL customers multiplied by the number of PCMs . . . multiplied by
the success rate of 27% as established in the
Makate model. The
result is then multiplied by the rate per minute and the call length
with 100% of the calls deemed incremental.”
[7]
The
then present-day value on this model was R38.1 million. The
last model was the “revenue share model”, which
Vodacom
labels the “backward-looking revenue share model”.
The CEO’s model looked at the revenue to be
shared with the
benefit of hindsight. The then present-day value on this model
was R42.2 million.
[8]
At the end of it all, the CEO took the average of present-day
values
yielded by the models most favourable to Mr Makate, namely the “2001
looking forward model” and “revenue
share model looking
backwards”. The average, rounded upwards, was
R47 million. That is the amount the CEO
determined to be
the compensation to which Mr Makate was entitled. Dissatisfied,
Mr Makate took the determination on
review to the High Court alleging
that certain irregularities rendered the CEO’s determination
manifestly unreasonable, unjust
and inequitable.
[9]
The main areas of
disagreement in the review related to the following topics:
[8]
the duration of the period over which Mr Makate was entitled to share
in the PCM revenue; interest; procedural unfairness; the
model used
by the CEO to calculate revenue; and failure to consider relevant
evidence.
[10]
On the duration of the revenue sharing period, Mr Makate
contended that the
CEO irregularly limited his share of revenue to
five years despite the fact that the PCM product had generated
revenue for no less
than 18 years and was continuing to do so.
He alleged that the agreement on sharing revenue would have spanned
the entire
period during which Vodacom used the PCM product and
generated revenue from it. Effectively, if this were to have
lasted
in perpetuity, he would be entitled to remuneration in
perpetuity. However, he indicated that he was prepared to
accept a
contract duration and revenue share of 18 years.
[11]
Vodacom’s response was that the five-year revenue share period
determined by
the CEO was reasonable. The period had to be
viewed from the perspective of Vodacom considering the nature and
duration of
the agreement as at the time of deciding whether to
conclude the agreement, namely 2001. It was unlikely that at
that time
Vodacom would have agreed to a revenue share in perpetuity
or for 18 years. After all, Mr Makate sought “reasonable
remuneration”, which was not necessarily remuneration in
perpetuity: he is entitled to an amount which reasonably compensates
him for his idea; and he is not entitled to an annuity for life,
continued Vodacom’s contention. Also, according to
Vodacom, the period determined by the CEO was consistent with
Vodacom’s position in relation to untested products.
And
the five-year period was generous in circumstances where Mr Makate
was not rendering an ongoing service to Vodacom.
[12]
Regarding interest, Mr Makate contended that the CEO declined to
award any interest
on his revenue share, as he had mistakenly assumed
that Mr Makate’s counsel had abandoned any claim for
interest.
Vodacom pointed out that Mr Makate’s focus only
on interest disregarded what actually happened. This, because
what
the CEO did, instead, was to make provision for the time value
of money. That is, compensating for the loss of value in money
over time. For that, the CEO applied a 5% inflation rate worked
out thus. The CEO looked at the average inflation rate
from
2002. That rate came to 5%. He then applied it on an
annual basis from 2002 to 2019 in order to arrive at a value
that he
considered “more than fair” for Mr Makate to preserve his
purchasing power over the period.
[13]
On procedural unfairness, Mr Makate submitted that the
proceedings before the
CEO were inherently unfair because Vodacom
refused to disclose the revenue earned from the PCM product.
Vodacom’s counter
was that there was no unfairness.
Instead, there was no direct revenue that could quantifiably be
attributed to the PCM product.
[14]
The next review ground was that the CEO used incorrect figures in
calculating the
revenue and that he used an incorrect revenue model
in calculating the compensation due. He ought to have used Mr
Makate’s
fourth revenue share model, the so-called Model 8A,
which looked backwards. In the High Court, Mr Makate updated
Model 8A
as Model 9A, summarised in Model 9B. Vodacom
answered that, as the deadlock breaker, the CEO was given an
unfettered
discretion to determine reasonable compensation. It
disputed that the CEO had relied on incorrect figures and asserted
that
Mr Makate could not second-guess the revenue model that the
CEO had adopted.
[15]
Lastly, on the ground that the CEO failed to consider relevant
evidence, Mr Makate
sought to demonstrate that, on the Vodacom
Group’s own provision in its 2017 financial statements for
material contingent
liabilities, it had provided R960 million
for his claim. And in the 2016 financial statements Vodafone
Group plc (Vodafone),
Vodacom’s holding company, had provided
£180 million (R3.7 billion at the then applicable exchange
rate) for the claim.
As I understand it, the point was that, in
determining that compensation payable to Mr Makate was R47 million,
the CEO ignored
Vodacom and Vodafone’s own estimates of the
contingent liability reflected in the financial statements. In
its counter
Vodacom stated that the estimates, made by independent
auditors, constituted disclosures based on an unquantified existing
obligation.
At that stage reliable estimates could not be
made. Therefore, the thresholds on material contingent
liability were irrelevant
to the determination of reasonable
compensation.
[16]
In
accordance with his Models 9A and 9B, the capital figure to which
Mr Makate claimed to be entitled in terms of his amended
notice
of motion was (I use rounded figures) R9.74 billion or R14.61
billion, depending on whether his share of the alleged “Total
Call Revenue” generated by PCM was set at 5% or 7.5%. On
this capital, Mr Makate sought
mora
interest,
alternatively interest in terms of section 2A(5) of the Prescribed
Rate of Interest Act.
[9]
According to his Model 9B, the total claim inclusive of
mora
interest
was R28.99 billion or R43.48 billion, depending on the sharing
percentage used. On the other hand, the total claim
inclusive
of interest in terms of section 2A(5) was R36.91 billion or
R55.37 billion, again depending on the sharing percentage
used.
These amounts were based on a contention that Mr Makate was
entitled to a share of PCM revenue derived between 2002
and 2020, the
period covered by his Models 9A and 9B. In the alternative,
Mr Makate sought that compensation be determined
by the Court or
that the determination be made by a new referee appointed by the
Court.
[17]
The
High Court
reviewed
and set aside the CEO’s determination. However, instead
of substituting it with its own or Mr Makate’s
claimed figure,
it remitted the matter to the CEO for a recalculation and fresh
determination. In doing so, it set certain
parameters within
which this should be done.
[10]
Vodacom appealed to the
Supreme Court of Appeal against that remittal order, contending
that there was no basis for interfering
in the CEO’s
determination. At the centre of the issues raised on appeal was
the High Court’s approach on the
calculations. After all,
it was that approach that informed the parameters set by the High
Court in the remittal order.
It is understandable, therefore,
why Vodacom’s appeal challenged the High Court’s findings
on the calculations.
The substance of Vodacom’s
contentions on appeal was to support the CEO’s determination.
The
Supreme
Court of Appeal
produced
a 3-2 split in favour of Mr Makate.
[18]
The Supreme Court of
Appeal held that the High Court was correct in holding that the CEO’s
determination was contrary to this
Court’s mandate. This
led to the conclusion that Vodacom’s appeal had to be
dismissed.
However,
t
he
Supreme Court of Appeal did not end there. It went on to
hold that the High Court’s order did not accord
with what
Mr Makate had asked for in his notice of motion, which was setting
aside the CEO’s determination and substituting
it with the High
Court’s own determination, based on Models 9A and 9B. It
emphasised that he had sought a substitution,
not remittal.
Substitution had to be ordered as the parties had dealt extensively
with computation issues before the CEO
and as there was no evidence
that Mr Makate’s computation was wrong, “
save
that it [did] not take some variables into account
”
.
[11]
Consequently, the Supreme Court of Appeal held that it could
find no reason why Mr Makate’s computation should not
be found
to be correct.
[12]
[19]
It proceeded to make a
determination. On the percentage of revenue to which Mr Makate
was entitled, the order stipulated
it as “5%-7.5%”.
That range translates to huge differences in the amounts payable
across the range. On
interest, the Supreme Court of Appeal
ordered Vodacom to pay “
mora
interest . . . ,
alternatively interest in terms of section 2A(5) of the Prescribed
Rate of Interest Act”.
[13]
Again, the difference between interest calculated on the former and
the latter bases is vast. It is worth noting that
the Supreme
Court of Appeal’s order substantially adopted the content of Mr
Makate’s High Court amended notice of motion.
Crucially,
Mr Makate attained such an order despite the fact that he had not
cross appealed. Of course, as will appear
below, Mr Makate
argues that a cross-appeal was not necessary.
[20]
Vodacom is now before us seeking leave to appeal.
Before dealing with the parties’ submissions, let me mention
that
there are averments and counter-averments and arguments and
counter-arguments on the impact that a huge monetary payout to
Mr Makate
will have on Vodacom and its shareholders. I
choose not to deal with any of that as the approach I take does not
turn on
those issues. I next set out Vodacom’s
submissions.
Vodacom’s
submissions
[21]
Vodacom argues that our
constitutional jurisdiction is engaged on a few fronts. The
Supreme Court of Appeal granted Mr Makate
an appeal he never sought.
Mr Makate did not cross-appeal and claim that there was anything
the matter with the High Court
order. For this
proposition, Vodacom relies on
F Von Steinaecker
.
[14]
The possibility of the substituted order that the Supreme Court
of Appeal granted was never an issue before that Court.
Thus
the Supreme Court of Appeal lacked jurisdiction in this regard,
something which constitutes a breach of the rule of law entrenched
in
section 1(c) of the Constitution.
[22]
Insofar as the Supreme Court of Appeal set aside the High Court order
and substituted
its own, Vodacom contends that the Supreme Court of
Appeal breached its right to a fair hearing guaranteed in section 34
of the
Constitution.
[23]
Vodacom avers that there
was a long list of issues that were seriously disputed between it and
Mr Makate, examples being: PCM volumes;
incremental revenue; call
duration; effective call rate; duration of the revenue-share
contract; and
mora
interest or time value of
money. Vodacom contends that, despite the fact that each side
adduced swathes of evidence on all
the disputed issues and presented
written and oral argument on them, the Supreme Court of Appeal
disregarded all this. Relying
on
Rand
Refinery
,
[15]
Vodacom then argues that the Court’s disregard of these factual
issues implicates its right guaranteed under section 34 of
the
Constitution.
[24]
Vodacom submits that the disregard or mischaracterisation of the
issues and ignoring
of the true facts by the Supreme Court of Appeal
constitutes a total failure of justice and thus a breach of the right
to a fair
hearing guaranteed in section 34 of the Constitution.
[25]
Vodacom also contends that, in some parts, the Supreme Court of
Appeal order is “unduly
vague”. In this regard, it
cites the fact that the order declared that Mr Makate was
entitled to “5%-7.5%”
of PCM revenue. To award Mr
Makate a range from 5% 7.5% “is hopelessly vague”.
And Vodacom bemoans
the fact that the Supreme Court of Appeal
did this despite the fact that Mr Makate accepted the 5% figure and
this fact was
common cause before that Court.
[26]
Still on vagueness, Vodacom next focusses on the fact that the
Supreme Court of Appeal
ordered it to pay
mora
interest
or
interest in terms of section 2A(5) of the Prescribed Rate of
Interest Act. Its argument then proceeds thus. The
question is: how can an order have alternative rates of interest?
Which rate must apply in the end? Vodacom points
out that on
one of Mr Makate’s calculation models, his capital plus
mora
interest ranges from R28.98 billion to R43.48 billion, whereas the
capital amount plus the section 2A(5) interest ranges from R36.91
billion to R55.37 billion.
[27]
Vodacom concludes by submitting that these two parts of the Supreme
Court of Appeal’s
order “are thus so vague as to preclude
an identifiable decision that is capable of implementation or
enforcement”
and are, as a consequence, “in breach of the
rule of law and Vodacom’s right to a fair hearing”.
[28]
Beyond jurisdiction,
Vodacom submits that, to succeed, Mr Makate must satisfy the
requirements of the
Bekker
[16]
test, which – according to Vodacom – he has not.
This is the test applicable where there is a challenge to the
determination of a person appointed to fix a price or make a
valuation. In
Perdikis
[17]
the test formulated in
Bekker
was captured thus:
“
It
was held in
Bekker
. . . that a valuation
can be rectified on equitable grounds where the valuer does not
exercise the judgement of a reasonable [person],
that is, [their]
judgement is exercised unreasonably, irregularly or wrongly so as to
lead to a patently inequitable result.”
[18]
[29]
The effect of this test, argues Vodacom, is to ask whether the CEO’s
determination
accords with that of a reasonable person. If it
does, that is the end of the complaint. If it does not, the
next question
is whether the CEO’s determination is patently
inequitable.
[30]
In seeking to demonstrate that the CEO exercised the judgement of a
reasonable person,
Vodacom then deals with the evidence extensively.
In respect of each piece of crucial evidence in this regard, Vodacom
seeks
to demonstrate that the Supreme Court of Appeal was guilty of
one or more of the following: it ignored the evidence; it was unaware
of the evidence; it misunderstood the evidence; and it profoundly
mistook the substance of the nature of the evidentiary dispute
between the parties.
Mr Makate’s
submissions
[31]
Mr Makate’s written submissions were one day
late. He seeks condonation. The explanation for the delay
is adequate.
And there is no prejudice to Vodacom.
Unsurprisingly, Vodacom does not oppose. It is in the interests
of justice to
grant condonation, and it is granted.
[32]
Mr Makate takes issue with the argument that this
Court’s jurisdiction is engaged. According to him,
Vodacom does not
raise any constitutional issues or arguable points
of law of general public importance. He submits that the
arguments on
jurisdiction fail to raise legal issues and are instead
veiled factual disputes.
[33]
He
contends that the Supreme Court of Appeal did not exceed its
jurisdiction, as the issue of substitution was pleaded before the
High Court and was relevant to the order made by the High Court and
to the proceedings before the Supreme Court of Appeal.
The argument continues that Vodacom’s complaint was that, in
effect, the High Court order was a substitution. As a
result,
the appropriateness of that substitution was fully ventilated by the
parties before the Supreme Court of Appeal.
It is incorrect,
therefore, for Vodacom to claim that it was not called upon to answer
a case of possible substitution, concludes
the argument. Mr
Makate then called in aid this Court’s judgment in
Saratoga
Avenue
[19]
to argue that an appellate court is empowered to make the order that
the court below should have made, and the latter order becomes
the
order of the court below. He also submitted that, because the
Supreme Court of Appeal concluded that the High Court had
misapplied
the second leg of the
Bekker
test,
it (the Supreme Court of Appeal) was at liberty to consider the
question of remedy and costs afresh.
[34]
Mr Makate takes issue with Vodacom’s
argument that the portions of the Supreme Court of Appeal order
relating to a range of
PCM revenue (5% 7.5%) and the interest
alternatives are vague. He submits that, in any event, this
vagueness question
is moot as he has abandoned the higher figures
that feature in the range or alternatives, thus confining himself to
a revenue-share
of 5% (rather than anything beyond that point up to
7.5%) and
mora
interest
(rather than section 2A(5) interest).
[35]
Finally, Mr Makate disputes the argument that the
Supreme Court of Appeal
disregarded issues
and evidence. He submits that the
Supreme Court of
Appeal’
s decision was entirely consistent
with the evidence presented. Mr Makate submits that
Vodacom’s list of disputed
facts was adequately addressed by
the Supreme Court of Appeal. Although that Court’s
judgment “is concise, in
parts”, sight should not be lost
of the fact that the judgment was written in a context where several
previous judgments
had already made factual and legal findings.
He avers that he had adduced evidence which was largely undisputed by
Vodacom.
According to Mr Makate, this ground of appeal is
nothing but a divergence on the evaluation of the facts. On
this Court’s
authority, that is not a matter that must be
entertained by this Court. Moreover, the complaints about the
factual and legal
findings do not infringe the fair hearing right
protected by section 34 of the Constitution. That right has
been complied
with in this case. Vodacom is invoking section 34
purely because it disagrees with the outcome of the Supreme Court of
Appeal
decision and aligns more closely with the minority view, which
it cannot do.
[36]
Mr Makate then proceeds to demonstrate extensively
that Vodacom’s “factual appeal” is, in any event,
without merit.
[37]
I turn to deal with the issues that arise from the
submissions. First, jurisdiction.
Jurisdiction
[38]
Vodacom
pleads that the Supreme Court of Appeal judgment is characterised by
fundamental flaws that point to a Court that totally
failed to
appreciate the facts and issues before it with the result that there
was a failure of justice. As a result, Vodacom
was denied a
fair hearing guaranteed in section 34 of the Constitution.
Vodacom
argues that, by granting Mr Makate an appeal he never sought, the
Supreme Court of Appeal breached the rule of law entrenched
in
section 1(c) of the Constitution. This also infringed Vodacom’s
section 34 right to a fair hearing, continues the
argument.
This, because a decision was taken on a case Vodacom was never
required to meet. Lastly, Vodacom submits
that the parts of the
order concerning the range on the PCM revenue share and the interest
payable are so vague as to be incapable
of enforcement and, as a
consequence, breach the rule of law and the right to a fair hearing.
Obviously, this Court’s
constitutional jurisdiction is engaged
on all the pleaded bases.
[20]
Whether they will be sustained on the merits is another question.
Leave
to appeal
[39]
As will appear below, there are prospects of success on appeal.
Also, Vodacom’s
application raises important constitutional
issues, in particular the question whether it is open to this Court
to set aside the
decision of a court on the basis of that court’s
failure to appreciate the facts and issues before it. It is
thus in
the interests of justice that leave to appeal be granted.
[40]
I proceed to deal with what I consider to be the central question in
this appeal – the
question of failure of justice.
Failure of justice
[41]
As indicated more than once before, this ground of
appeal concerns Vodacom’s contention that the Supreme Court of
Appeal disregarded
facts and issues. The two, i.e., the facts
and issues, are closely bound up. Vodacom highlights the fact
that the Supreme Court
of Appeal “seems to have been
unaware [of], or disregarded, a long list of serious disputes about
Mr Makate’s calculations
and a vast body of evidence on those
disputes”. This tends to give the impression that
Vodacom’s complaint is
about the Supreme Court of Appeal’s
assessment of facts. Viewed in that light, the matter appears –
at first
blush – to present some difficulties.
[42]
How flawed must an
assessment be for it to cross the line to constitute a failure of
justice and, thus, a violation of the rule
of law and the right to a
fair hearing guaranteed in section 34 of the Constitution? Put
differently, what is the threshold
above which our constitutional
jurisdiction is engaged? In what circumstances does the
assessment fall short of that threshold
so as to be hit by the
Boesak
[21]
or
Mbatha
[22]
principle to the effect that dissatisfaction with a court’s
assessment of facts does not engage our jurisdiction? On
the
face of it, Vodacom’s argument seems to take us to a slippery
slope that will result in the reach of the
Boesak
and
Mbatha
principle being
difficult, if not impossible, to implement. Will that principle
not be unacceptably attenuated?
[43]
Whatever the attendant
difficulties, is the real question not whether there has been a total
failure of justice? In this context,
I am not concerned with
esoteric debates about what justice is. I am concerned with
justice in the sense of a reasonable
expectation that – within
the bounds of human fallibility – courts will do what is
expected of them. Justice
and, indeed, the court process are
not about perfection; courts are not to be held “to some
abstract standard of perfection”.
[23]
It is unsurprising that in
Bernert
this Court held that
“[j]udicial officers are not superhuman beings who do not make
mistakes. This is why there is an
appellate process to correct
mistaken findings on law or facts”.
[24]
And in
Basson
it had this to say, “[I]t
is important to bear in mind that it is inevitable that, from time to
time, a Judge may make an
error of law”.
[25]
If – with that in mind – there has been a failure of
justice, I find it difficult to understand why that
does not
constitute a denial of the right to a fair hearing protected by
section 34 of the Constitution. It matters
not that the
failure of justice may manifest itself through an improper factual
assessment. What is important is that the
flaws in the
assessment must be so fundamental and pervasive as to vitiate the
court’s judgment. There must have been
a failure in the
performance of what I will call a duty of proper consideration.
[44]
Once vitiated by flaws of the nature I have described, a court’s
decision is
a non decision. Without a decision, a court
will have failed in its very
raison d’être
.
Litigants go to court to have their legal disputes decided there.
And the need for a court to decide the dispute is
an important
component of the fair hearing right. That much is plain from
the verb “decided” in section 34 of
the Constitution.
A decision that is vitiated by malperformance of the duty of proper
consideration is not a decision as
envisaged in section 34.
Social
Justice Coalition
is useful in this regard:
“
The
right to access to court is more than simply the right to approach a
court and initiate a case in support of a justiciable dispute.
The
object of going to court is to secure a
decision
on a dispute and the
language of section 34 [of the Constitution] expressly extends to the
right to have a dispute
decided
.
Similarly, the process by which a
decision
is reached is also
covered by the right in its reference to a ‘fair hearing’.
Put differently, section 34 is a
right that guarantees access
to court to have a dispute
decided
in a fair public
hearing.”
[26]
(Emphasis added.)
[45]
The duty of proper consideration is an integral component of the fair
hearing right.
The founding constitutional value of the rule of
law and section 34 of the Bill of Rights require, in my view,
that a court
should have regard to all material evidence and all
material submissions bearing on the issues it must decide. And
the court
must bring its reasoning to bear on those material issues
and reach a conclusion on them. The evaluation of the evidence
and reasoning may – as I say – be erroneous, but there
cannot be a fair hearing in compliance with the rule of law and
section 34 if proper consideration of the matter before the court has
not occurred.
[46]
The close bond between the fair hearing right and the rule of law was
highlighted
by this Court in
De Beer N.O.
where it was held:
“
This
section 34 fair hearing right affirms the rule of law, which is a
founding value of our Constitution. The right to a
fair hearing
before a court lies at the heart of the rule of law. A fair
hearing before a court as a prerequisite to an order
being made
against anyone is fundamental to a just and credible legal order.
Courts in our country are obliged to ensure
that the
proceedings before them are always fair.”
[27]
[47]
The court speaks publicly
through its judgment. It is thus in the judgment that one
expects to find evidence that the court
discharged the duty of proper
consideration the way it should. An indicative factor –
albeit not exclusive –
of the performance of the duty of proper
consideration is providing adequate reasons for a judgment (the duty
to provide reasons).
[28]
Woefully lacking reasons are symptomatic of a flawed assessment of
facts and issues. For present purposes, flawed in
the sense
that amounts to a failure of justice. We must not lose sight of
the fact that the adequacy of reasons relates to
a proper
consideration of the evidence and issues and – based on that –
taking a reasoned decision. That, in
no way, means that the
reasons must be correct. I accept that unsatisfactory reasoning
does not necessarily equal failure
to discharge the duty of proper
consideration.
[48]
In
Mphahlele
this Court said the
following about the duty to provide reasons, which is closely
connected to the duty of proper consideration:
[29]
“
The
rule of law undoubtedly requires Judges not to act arbitrarily and to
be accountable. The manner in which they ordinarily
account for
their decisions is by furnishing reasons. This serves a number
of purposes. It explains to the parties,
and to the public at
large which has an interest in courts being open and transparent, why
a case is decided as it is. It
is a discipline which curbs
arbitrary judicial decisions. Then, too, it is essential for
the appeal process, enabling the
losing party to make an informed
decision as to whether or not to appeal or, where necessary, seek
leave to appeal. It assists
the appeal Court to decide whether
or not the order of the lower court is correct. And finally, it
provides guidance to the
public in respect of similar matters.
It may well be, too, that where a decision is subject to appeal it
would be a violation
of the constitutional right of access to courts
if reasons for such a decision were to be withheld by a judicial
officer.”
[30]
[49]
Although the duty of proper consideration and the duty to give
adequate reasons are
closely connected, they are conceptually
different. Notionally, a court could discharge its duty of
proper consideration
and yet fail in its duty to give adequate
reasons. In practice, however, attention almost always falls on
the alleged breach
of the duty to give adequate reasons. This
is because litigants and the public do not have insight into the
court’s
private processes of evaluation and reasoning.
[50]
Is there direct jurisprudential support for the approach that says
malperformance
of the duty of proper consideration in the court’s
decision-making breaches the fair hearing right?
Social
Justice Coalition
,
De Beer
and
Mphahlele
– to
which I have just referred – are not as direct.
[51]
I think the best starting
point is a case that – as is the case now before us – was
concerned with the right to a fair
hearing. For that reason,
the case of
Zayidov
[31]
is
instructive.
At
the heart of that case was Article 6(1) of the European Convention on
Human Rights.
Article
6(1) of the Convention provides that “[i]n the determination of
his civil rights and obligations or of any criminal
charge against
him, everyone is entitled to a fair and public hearing within a
reasonable time by an independent and impartial
tribunal established
by law”. The European Court of Human Rights (ECHR) held:
“
[I]n
view of the principle that the [European Convention on Human Rights]
is intended to guarantee not rights that are theoretical
or illusory
but rights that are practical and effective, the right to a fair
trial cannot be seen as effective unless the requests
and
observations of the parties are truly ‘heard’, that is to
say, properly examined by the tribunal. Judgments
of courts and
tribunals should adequately state the reasons on which they are
based. Without requiring a detailed answer
to every argument
advanced by the complainant, this obligation to give reasons
presupposes that parties to judicial proceedings
can expect to
receive a specific and explicit reply to the arguments which are
decisive for the outcome of those proceedings.”
[32]
[52]
From this, I want to
underscore the statement that the right to a fair hearing is
effective if the “requests and observations
of parties are
truly
‘heard’, that is to say properly examined by the
tribunal
”
.
[33]
A statement that is consonant with the duty of proper consideration.
This statement ties in with Vodacom’s complaint
that the
Supreme Court of Appeal did not truly hear or properly examine
the facts and issues before it.
[53]
Citing
Van
de Hurk
,
[34]
the Court of Appeal of England and Wales (EWCA) in
English
said that—
“
the [ECHR] . . .
observed that Article 6(1) placed the ‘tribunal’ under a
duty to conduct a proper examination of the
submissions, arguments
and evidence adduced by the parties. The [ECHR] will hold that
Article 6(1) has been violated if a
judgment leaves it unclear
whether the court in question has addressed a contention advanced by
a party that is fundamental to
the resolution of the litigation.”
[35]
[54]
Reasons given for a court’s decision help demonstrate that
there was or wasn’t
proper performance of the duty of proper
consideration. If the facts are simple and straightforward, not
much may be required
by way of reasons to support the conclusion
reached. But the reasons must still be enough to demonstrate
sufficiently that
there was compliance with the duty. As the
matter gets more complex with the need to canvass more issues, more
will be required
of the judge adequately to set out their assessment
of the evidence and issues and to explain how their conclusion is
reached.
In
Flannery
the EWCA held:
“
[W]here the
dispute involves something in the nature of an intellectual exchange,
with reasons and analysis advanced on either side,
the judge must
enter into the issues canvassed before him and explain why he prefers
one case over the other. This is likely
to apply particularly
in litigation where as here there is disputed expert evidence, but it
is not necessarily limited to such
cases.”
[36]
[55]
Just as a footnote for now, the matter before us is not only
fact-laden, but also
characterised by complex, hotly contested expert
evidence. A question that arises then is whether in this matter
the Supreme
Court of Appeal grappled with the complex and hotly
contested issues in the manner laid down in
Flannery
.
More on that later. Similarly, as in
Flannery
, the ECHR
held in
Ruiz Torija
:
“
The Court
reiterates that Article 6(1) . . . obliges the courts to give reasons
for their judgments, but cannot be understood as
requiring a detailed
answer to every argument. . . . The extent to which this duty to give
reasons applies may vary according to
the nature of the decision. It
is moreover necessary to take into account, inter alia, the diversity
of the submissions that
a litigant may bring before the courts and
the differences existing in the Contracting States with regard to
statutory provisions,
customary rules, legal opinion and the
presentation and drafting of judgments.”
[37]
[56]
It is worth noting yet
again that this obligation is articulated in connection with the
right to a fair hearing protected, of course,
in Article 6(1).
Whether a court has fulfilled the obligation to give reasons depends
on the facts and circumstances of each
case.
[38]
While that is so—
“
the
reasons should deal with the substantial points which have been
raised; include findings on material questions of fact; refer
to the
evidence or other material upon which those findings are based; and
provide an intelligible explanation of the process of
reasoning that
has led the judge from the evidence to the findings and from the
findings to the ultimate conclusion.”
[39]
[57]
Of critical importance is
that “there is no duty on a judge in giving . . . reasons to
deal with every argument presented
by counsel in support of [their]
case”.
[40]
I say
of “critical importance” because some litigants may find
this statement of the law attractive for nitpickingly
arguing that a
court’s judgment failed to deal with this or that point and
that, therefore, there was a breach of the right
to a fair hearing.
Let them be warned that they will not succeed. That is not what
this statement of the law is about.
It is about the substance
of a judgment viewed holistically. So viewed, does the judgment
tell a reasonable, if not discerning,
reader that there was
compliance with the duty of proper consideration? In that
regard, it is enough if the judgment identifies
the issues that were
vital to the determination of the matter and then shows how they were
determined. One or two issues
may not necessarily be critical
for that holistic look at the substance of the judgment.
[58]
In the context of the need for a judgment to explain its reasoning
for purposes of
appeal, the EWCA held in
English
:
“
[I]f
the appellate process is to work satisfactorily, the judgment must
enable the appellate court to understand why the Judge reached
his
decision. This does not mean that every factor which weighed
with the Judge in his appraisal of the evidence has to be
identified
and explained. But the issues the resolution of which were
vital to the Judge’s conclusion should be identified
and the
manner in which he resolved them explained. It is not possible
to provide a template for this process. It need
not involve a
lengthy judgment. It does require the Judge to identify and
record those matters which were critical to his
decision.”
[41]
[59]
The fact that there are
defects in a judgment does not necessarily mean that there was
non-compliance with the duty of proper consideration.
[42]
[60]
I am alive to the fact
that, unlike the ECHR cases on the fair hearing right,
[43]
the judgments from other countries deal with the duties to provide
reasons and give proper consideration in contexts that are unrelated
to the fair hearing right. That notwithstanding, I find the
cases quite useful.
[61]
To sum up, a court will have failed in its constitutional duties to
give the case
proper consideration and to give reasons for its
decision if the court’s judgment does not contain adequate
reasons evidencing
such proper consideration.
[62]
Whether a court’s reasons are adequate will depend on the
nature of the case,
the issues and the ambit of the evidence and
submissions. The test is not perfection but adequacy. Adequate
reasons
do not necessarily have to be lengthy; the focus is on the
essential import or gist of the matters to be addressed. The
Supreme
Court of Canada had this to say:
“
It
is now plain from Canadian jurisprudence that a trial judge is not
required to give extensive reasons for a decision, but is
bound to
indicate what he or she understands the nature of the case to be so
that the parties are aware that the case they argued
was the one
decided.”
[44]
[63]
The adequacy of reasons
is not concerned with whether the reasons are sound or correct but
whether they sufficiently explain how
the court reached its ultimate
conclusions. The reasons must be “responsive to the
case’s live issues and the
parties’ key arguments”.
[45]
The more complex and extensive the evidence and arguments, the
more extensive will the reasons normally need to be in order
to meet
the test of adequacy. The reasons must be such as to enable the
losing party to see that the court has decided the
case that was
argued and to understand why that party lost. Reasons must also
be such as to enable an appellate court to
follow the court’s
reasoning with a view to assessing whether it was right or wrong;
reasons must disclose the “path
of reasoning”. The
Victorian Supreme Court of Appeal (Australia) held that “the
mere recitation of evidence followed
by a statement of findings,
without any commentary as to why the evidence is said to lead to the
findings, is insufficient to disclose
a path of reasoning”.
[46]
[64]
In general, adequate reasons must at least deal with each of the main
issues in the
case by: (a) identifying, in respect of each such
issue, the essential import of the evidence on each side; (b)
explaining how
and why the court has resolved any material factual
disputes in a particular way; (c) identifying, where applicable, the
essential
import of competing submissions on the law applicable to
the facts; (d) explaining how and why the court has resolved any
material
disputes on the law in a particular way; and (e) explaining
how and with what result the court has applied the law to the facts.
The judgment must also explain how and why, pursuant to the
resolution of the material issues, the court reached its conclusion
on the disposition of the case and the orders made. In general,
the more peripheral the issue, evidence or argument, the
less likely
it is that a court’s failure to address it fully or at all will
justify a conclusion that its reasons for judgment
are inadequate.
[65]
The principles enunciated in this judgment are not an open sesame for
litigants to
subject adverse judgments to nitpicking analysis with a
view to trying to show the inadequacy of reasons.
[66]
In sum, flaws in the assessment during the adjudicative process that
are so fundamental
and pervasive as to vitiate the court’s
judgment constitute a failure of justice and, thus, a breach of the
rule of law and
the fair hearing right guaranteed in section 34
of the Constitution.
[67]
Now the central question: has the Supreme Court of Appeal judgment
breached the rule
of law and fair hearing right?
[68]
Unfortunately, I cannot
but say that the judgment is thinly reasoned. At times it is
characterised by confusing reasoning.
At other times it is
characterised by statements that evince a disregard for or lack of
awareness of the facts and issues.
Some examples of the
confusing reasoning are these. The judgment says that Vodacom
was not happy with the fact that in its
2016 judgment this Court
“finally dealt with the matter on the 5% of ‘revenue
generated’ basis”.
[47]
This Court never determined a percentage. Mr Makate pushed
for a 15% revenue share. This Court declined
to award that.
Instead, it held that reasonable compensation had to be arrived at
through negotiation between Vodacom and
Mr Makate, failing which it
had to be determined by the CEO.
[69]
The Supreme Court of
Appeal went on to say that “when the CEO considered the
computation, he instinctively or by design .
. . fell back to
Vodacom’s original stance of sharing on a 5% profit basis,
contrary to the operative order” (i.e.,
this Court’s 2016
order).
[48]
The 5%
revenue share was, in fact, agreed by the parties; that is common
cause. It is unsurprising that the CEO applied
it. It
passes more than strange that the Supreme Court of Appeal
referred to the 5% as this Court’s stipulation
and, in the same
breath, as Vodacom’s “original stance”. But
the confusion relates to the source: was the
source this Court’s
order or Vodacom’s original stance? More strange is that
later the Supreme Court of Appeal
does recognise that the parties had
agreed on the 5% share of revenue.
[49]
[70]
From both the
majority
[50]
and minority
[51]
judgments it is plain that there was argument on the need (or
otherwise) to apply the
Plascon-Evans
rule.
[52]
The majority was totally confused as to the issue or issues to which
the application of the rule related. It held that
the
applicability of the rule did not arise at all in the appeal because
the parties were agreed on the issue in respect of which
the rule was
raised. That issue, according to the majority, was the
percentage on which the revenue share was to be pegged.
That
was wrong. The
Plascon-Evans
rule was raised in
totally different contexts. That much is clear from the
minority’s engagement with the subject.
[53]
Indeed, it would not have made sense for Vodacom to invoke
Plascon-Evans
in the context of
the
agreed
percentage
at which revenue was to be shared. As a result of its confusion
on the applicability of the
Plascon-Evans
rule, the majority failed
altogether to address
and
decide important questions
to
which the applicability of the rule related.
[54]
That constituted a breach of the duty of proper consideration.
I say the questions were important because the theme
around them was
the quantification of the compensation due to Mr Makate. A
central issue, indeed. The need for addressing
and deciding
these questions is made plain by the minority judgment.
[55]
[71]
Yet another instance of
confusion is a statement by the Supreme Court of Appeal that
Vodacom’s counsel conceded that the CEO’s
determination
was not reasonable.
[56]
One need not have been at the Supreme Court of Appeal to realise that
such a concession would have been senseless.
In context, that
was a key question in the contest at the Supreme Court of Appeal: was
the CEO’s determination reasonable?
The parties adopted
opposite sides on this question, with Vodacom defending the
determination and Mr Makate challenging it.
[72]
The matters of confusion on the part of the Supreme Court of Appeal
are not mundane.
They are symptomatic of a Court that did not
appreciate the facts and issues it had to determine. That goes
to the important
question whether the Supreme Court of Appeal
considered and decided all issues that were germane to the dispute
before it, a matter
that is fundamental to the duty of proper
consideration.
[73]
Moving on, what was
crucial to the Supreme Court of Appeal’s determination against
Vodacom was the question whether the R47
million awarded by the CEO
was inequitable. This question was concerned with the second
leg of the
Bekker
test.
[57]
The Supreme Court of Appeal obviously asked this question because it
was key to Vodacom’s appeal. Vodacom was
supporting the
CEO’s determination in the sum of R47 million. It was
thus arguing that the amount was equitable.
An answer that said
the amount was inequitable meant that Vodacom’s appeal had to
fail. That is how crucial the question
was. Crucial
though the question was to the determination of the appeal, all that
the Supreme Court of Appeal did was to
set out the parties’
arguments in this regard without pronouncing on them.
[58]
Strangely, therefore, despite saying that the High Court did not
undertake the second leg of the
Bekker
test, the Supreme Court
of Appeal did not do so either. It was not enough merely to
highlight the parties’ submissions.
A shortcoming of this
nature on so crucial an issue constitutes a breach of the duty of
proper consideration.
[59]
[74]
The Supreme Court of
Appeal is also guilty of failing to assess evidence or being unaware
of evidence that it ought to have assessed.
First, in
paragraphs 6.1-6.8 of his determination, the CEO dealt with evidence
on “PCM revenue in the context of Vodacom’s
voice
revenue”. He dealt with the evidence extensively.
As part of this, he referred to calculations of voice
revenue in one
of Mr Makate’s models and said those calculations or estimates
“need to be carefully examined”.
The Supreme Court
of Appeal said that this word of caution or conclusion was expressed
“without saying why”.
[60]
The truth is that in the same sentence in which this quote appears,
the CEO continued and said that this is so “because
if [the
estimates] are inconsistent with the publicly available financial
data, the model would be discredited”. The
CEO did not
end there. He proceeded to deal with the subject and to explain
himself fairly extensively in paragraphs 6.4-6.14.
[75]
He concluded that – on Mr Makate’s calculations –
PCM revenue made
up more than 80% of Vodacom’s total
mobile voice revenue, and in five of those years, more than 90%.
In paragraph
6.5 the CEO said that Mr Makate’s figures thus
suggested that an overwhelming percentage of Vodacom’s voice
revenue
was generated as a direct result of PCM. This,
according to the CEO, ignored many other variables which went into
generating
revenue for a telecommunication operator, namely:
investment into the network; other products and services offered by
Vodacom;
growth in customer numbers; and growth in spend by existing
customers. He concluded that the numbers in the model used by
Mr Makate were unrealistic and on this ground alone no reliance could
be placed on the model. In paragraphs 6.6-6.14 he proceeded
to
do an in-depth analysis of Mr Makate’s model, identifying
where, in his view, it had gone seriously wrong.
[76]
Mr Makate contested Vodacom’s voice revenue figures that the
CEO used in the
analysis set out above, and a great deal of evidence
from the parties was adduced on this aspect. In his explanatory
affidavit
the CEO substantiated his reasons for rejecting Mr Makate’s
models in no fewer than 27 paragraphs.
[77]
With all this in mind, it is difficult to comprehend how the Supreme
Court of Appeal
came to the conclusion that what the CEO had said was
unexplained. The Supreme Court of Appeal was either not aware
of the
CEO’s explanation or disregarded it. Whatever the
position, its conclusion is inexplicable.
[78]
Immediately after this incorrect conclusion, the Supreme Court of
Appeal gave three
examples of errors in the determination which,
according to Mr Makate’s counsel, “the CEO could not
refute”.
One of these was the supposed “arbitrary
70% reduction that the CEO introduced”. By way of
background, in argument
before the CEO the parties were eventually in
agreement that a return call made to a PCM sender within one hour of
sending the
PCM should be treated as causally prompted by the PCM and
that 27% of all PCMs fell within this parameter. Mr Makate’s
complaint was that the CEO had arbitrarily reduced the 27% by a
further 70%. The result – continued the complaint – was
that only 8.1% (30% of 27%) of PCMs generated revenue in which
Mr Makate was entitled to share.
[79]
The Supreme Court of Appeal dealt with this criticism in four
sentences, the last
of which reads: “The CEO provides no answer
for this in his reasons for the determination”. It is
unclear whether
– in this quoted sentence – the Supreme
Court of Appeal was still summarising Mr Makate’s criticism or
whether
it was expressing its own conclusion. The Supreme Court
of Appeal did not return to the subject later in its judgment.
One is forced to conclude that it accepted the criticism without
further reasoning, and agreed that the CEO had given no reasons
for
the reduction.
[80]
Once again, the Supreme
Court of Appeal seems to have been unaware of what the CEO had said
on the 70% reduction, and – as
result – it failed to deal
with any of the evidence adduced by the parties on the subject of
incremental revenue. In
his determination, the CEO said that
the parties were in agreement that the revenue in which Mr Makate
was entitled to share
was confined to incremental revenue generated
by PCM; in other words, as the CEO said, “only that revenue
which but for the
PCM, would not have been generated”.
The CEO proceeded to give examples to illustrate why not all of the
27% return
calls would generate incremental revenue for Vodacom.
[61]
[81]
Addressing the revenue share model, the CEO emphasised that the
relevant responding
calls were those which were incremental in
nature, and commented: “There can never be any data which can
tell whether a responding
call would have been made anyway and I can
only rely on my best estimate made on the strength of my insights and
impressions over
the years”. On this basis, he assumed
that 30% of the causally relevant return calls would have been
incremental, “although
this is very generous” (i.e., in
Mr Makate’s favour).
[82]
The CEO’s views did not go uncontested. Post the
determination and during
the litigation, Mr Makate filed the
affidavit of Professor Harvey Wainer, an accountancy expert.
The purpose of the affidavit
was to attack the CEO’s view that
return calls made by certain contract customers did not generate
incremental revenue.
The CEO responded to Professor Wainer’s
views in a supplementary explanatory affidavit. There is
nothing in the Supreme
Court of Appeal judgment to show that it was
aware of or gave consideration to any of this evidence. The
judgment does not
disclose a “path of reasoning” that
explains why, in determining a 30% allowance on the 27% return calls,
the CEO had
(in the language of the
Bekker
test) exercised his
judgement “unreasonably, irregularly or wrongly” so as to
lead to a “patently inequitable
result”. It must be
emphasised that, even if Mr Makate’s Model 9A were preferred to
the CEO’s revenue share
model, the need for a reduction in
order to limit the revenue to incremental revenue would still have to
be
considered
by the Supreme Court of Appeal, even if it was
thereafter rejected on a reasoned basis.
[83]
I
continue with other examples of the Supreme Court of Appeal
disregarding evidence on fundamental issues. I say disregarding
when, in fact, it may well not even have been aware of the evidence.
The Supreme Court of Appeal said that it could find
no objection by
Vodacom to Mr Makate’s models on compensation similar to
that of a third-party service provider.
[62]
In similar vein, the Supreme Court of Appeal said that “
absent
any
evidence that Mr Makate’s computation is wrong . . . I can find
no reason why Mr Makate’s computation should not
be accepted as
correct”.
[63]
This
is astounding.
[84]
First, Mr Makate’s models, which the Supreme
Court of Appeal says were not objected to by Vodacom, concerned the
hotly contested
issue of the computation of compensation. Why
would Vodacom have appealed at all if it was not contesting
Mr Makate’s
models? Unsurprisingly, Vodacom submits
that “[t]he entire debate in [the Supreme Court of Appeal]
turned on the question
whether the models presented by Mr Makate
or those of the CEO should be preferred”. In what is a
clear demonstration
that Mr Makate’s models were at issue, the
minority engages with this debate at great length in paragraphs
62
-
202.
[85]
Second, with all this in mind, how could the
Supreme Court of Appeal say that evidence that Mr Makate’s
computation was wrong
was
absent
?
In argument before us, Vodacom cites examples of the issues that it
addressed countering Mr Makate’s models and,
therefore,
computation. It does so with reference to the CEO’s
determination. These examples were: PCM volumes;
incremental
revenue; call duration; effective call rate; duration of the
contract; and
mora
interest
and the time value of money.
[86]
How – in the face of all of this – the
Supreme Court of Appeal held that it could find no objection to Mr
Makate’s
models and that there was no evidence that his
computation was wrong escapes me. This is a very fundamental
issue because
the computation is what the entire litigation was
about. This means the Supreme Court of Appeal was unaware of or
disregarded
evidence on what the entire case was about. If that
is not a total failure in the performance of the duty of proper
consideration,
I do not know what is.
[87]
Another feature that I must touch on is the
apparent readiness of the Supreme Court of Appeal to accept
whatever Mr Makate
said. This may already be apparent in parts
of what I have said above. But here is what I want to deal with
now:
“
[The
High Court] did not undertake the second leg of the
Bekker
test.
What compounds the matter is that the remedy as crafted, is not what
Mr Makate sought because, as is evidenced from
the amended notice of
motion delivered on 9 January 2019, Mr Makate sought that the
determination of the CEO be set aside and substituted,
instead of
remitting it for reconsideration to the CEO. To that extent it
erred. It follows, therefore, that this Court
is at large to
interfere with the order of the High Court.”
[64]
[88]
I
cannot conceive of any basis on which Mr Makate was – as the
Supreme Court of Appeal seems to suggest – automatically
entitled to whatever he asked for. The Supreme Court of
Appeal makes this bald statement without explaining it.
It
also seems to have given
no consideration to the fact that, in granting Mr Makate what he
wanted – under paragraph
2(b) of its order
[65]
– it was granting an order which had not been sought by way of
cross-appeal and was thus not properly before it. I
explain why
this was not properly before the Supreme Court of Appeal later.
It
may well be that in the end Mr Makate will get what he is asking
for. But that is a conclusion which must be reached after
a
proper consideration of the issues.
[89]
The Supreme Court of Appeal also appears not to have considered the
substantive content
of the substituted order it impermissibly granted
in favour of Mr Makate. The Supreme Court of Appeal simply
copied
paragraph 2 of Mr Makate’s High Court notice of
motion verbatim, thus incorporating the revenue-sharing range of
5%-7.5%
and the two alternative forms of interest. If the
Supreme Court of Appeal had properly considered the relief, it would
have
realised that – although a litigant can claim relief
across a range or in the alternative – a court has to fix the
relief with precision. As previously mentioned, the range and
alternatives resulted in huge monetary differences.
[90]
There is the question of call duration and its relevance to the
revenue share.
Mr Makate’s Model 9A distinguished
between “Total Call Revenue” and “Total PCM
Revenue”, the
latter being the sum of total call revenue plus
additional items described as “PCM Advertising Revenue”,
“Please
Recharge Me Revenue” and “Vodacom Operating
Countries”. The Total Call Revenue was (in round figures)
R196.84
billion while the Total PCM Revenue was R273.39 billion.
However, according to the CEO, Mr Makate abandoned the
additional
items at the hearing before him, pressing for a share only
of Total Call Revenue. As a result, the High Court’s
order
was confined to the Total Call Revenue. Mr Makate’s
Model 9B, described as a “brief summary of Model 9A”,
was likewise confined to Total Call Revenue. So, the Supreme
Court of Appeal seems not to have been aware of the distinction
between Total Call Revenue and Total PCM Revenue and that, as a
result of the additional items, a share of the latter would be
vastly
higher than a share of the former.
[91]
In Model 9A, the average
duration of an incremental call ranged from 3.68 minutes to 7.61
minutes over the 18-year period.
However, the High Court
directed the CEO to determine Mr Makate’s compensation afresh
on the basis,
inter alia
,
of an average call duration of two minutes, noting in its judgment
that in argument Mr Makate “eventually agreed that
he is
not opposed to the application of a call duration of two
minutes”.
[66]
Unsurprisingly, therefore, call duration was not an issue in the
Supreme Court of Appeal.
[92]
There is a broadly linear relationship between Total Call Revenue and
the assumed
average duration of a call. If in a particular year
the average call duration were assumed to be six minutes, the
resultant
Total Call Revenue would be about three times higher than
if one assumed an average call duration of two minutes. The
average
call duration (not weighted) across the full period covered
by Model 9A is 5.9 minutes. In short, the Total Call Revenue
ordered by the Supreme Court of Appeal, and the resultant
pre-interest compensation to which Mr Makate would be entitled,
is likely to be around three times higher than revenue based on the
call duration of two minutes that was uncontested before the
Supreme
Court of Appeal. Reference in the order to Model 9A, 9B
and 9BB effectively meant that the order incorporated
the
significantly higher call duration – and not the uncontested
two-minute call duration. Notably, though, the Supreme Court
of Appeal did not mention call duration at all in its judgment. One
is driven to conclude that – insofar as the model
it ordered
should be applicable related to call duration – the Supreme
Court of Appeal was unaware of the content of that
model. It is
easy to make this conclusion regard being had to the significant
difference between the call duration in that
model and the
uncontested call duration.
[93]
To conclude, the evidentiary matters and legal
questions highlighted above and which the Supreme Court of Appeal
disregarded or
of which it was unaware or on which it was confused
were key to the determination of the contest between the disputants.
The confusion or disregard or lack of awareness of the evidence and
arguments led to the Supreme Court of Appeal not assessing and
deciding on central issues and crucial evidence. As indicated
above, it cannot do that. To put it bluntly, the real
appeal
was not decided. That constituted a total failure of justice in
breach of the rule of law and the fair hearing right
protected in
section 34 of the Constitution.
[94]
On the
factual issues, here is what differentiates the above analysis from
what was at issue in
Boesak
,
[67]
Mbatha
[68]
and similar cases. In each of those cases, the factual
perspective that was being advanced was calculated to demonstrate
that the facts ought to have been decided in favour of the party
concerned. Of course, this Court held that the contest on
the
factual matter did not engage its jurisdiction. In the present
case, the treatment of the facts is not about which version
should
take precedence. Rather, it seeks to demonstrate that the
Supreme Court of Appeal misunderstood, disregarded, was
confused
about, or was unaware of the facts to the extent that it failed to
decide the appeal before it. This judgment does
not pronounce
one way or the other on the factual issues that have been dealt with.
Absence of cross-appeal
[95]
Although my conclusion on the failure of justice point is dispositive
of the appeal and
thus renders moot the ground of appeal that –
absent a cross-appeal by Mr Makate – the Supreme Court of
Appeal
lacked jurisdiction, I believe that it is necessary to deal
with this ground of appeal, albeit briefly. That is so because
it is desirable to correct any misapprehension which the Supreme
Court of Appeal’s judgment may have brought about.
And
full argument was presented on this ground. The correction will
be of assistance to courts that are bound by decisions
of the
Supreme Court of Appeal.
[96]
The central issue in
Vodacom’s appeal before the Supreme Court of Appeal was whether
the CEO’s determination was reasonable
in accordance with the
Bekker
test.
[69]
As stated above, Vodacom
supported that determination. The Supreme Court of Appeal held
that – based on the
Bekker
test – the
CEO’s determination “was wrong”.
[70]
It did not end there.
It went on to hold that the High Court’s order did not accord
with what Mr Makate had asked
for in his notice of motion, which
was that the CEO’s determination be set aside and substituted
with the High Court’s
own determination.
[71]
The Supreme Court of
Appeal emphasised that Mr Makate sought a substitution, not
remittal. It then held that it could find
no reason why Mr
Makate’s computation of reasonable compensation should not be
accepted. For that reason, instead of
remittal, Mr Makate’s
calculation should have been accepted. It proceeded to make the
substituted order.
That is the order that has the strange
features mentioned above.
[72]
[97]
Earlier I highlighted
that Mr Makate did not cross-appeal to the Supreme Court of Appeal.
Before us Vodacom argued that the
Supreme Court of Appeal lacked
jurisdiction to grant the substituted order in the absence of a
cross-appeal. I agree.
Mr Makate argued that
the
Supreme Court of Appeal did not exceed its jurisdiction. That
is so because the issue of substitution was pleaded before
the High
Court. And it was relevant to the order made by that Court and
to the proceedings before the Supreme Court of Appeal.
The argument continues that Vodacom’s complaint was that, in
effect, the High Court order was a substitution. As a
result,
the appropriateness of that substitution was fully ventilated by the
parties before the Supreme Court of Appeal, concludes
the argument.
In support of his argument, Mr Makate relied on this Court’s
judgment in
Saratoga
Avenue
.
[73]
He argued that an appellate court is empowered to make the order that
the court below should have made, and the latter order
becomes the
order of the court below.
[98]
This argument is unavailing. If I understand
it correctly, the debate about substitution that Mr Makate says took
place in
the Supreme Court of Appeal concerned the High Court order
which, according to him, Vodacom considered to be a substitution of
the CEO’s determination. That is the substitution that
was fully ventilated. It is not, and could not have been,
the
same as the substituted order made by the Supreme Court of Appeal.
[99]
So, the Supreme Court of Appeal decided a case that was not before it
and which Vodacom
was not called upon to answer. In
Gent
the
Supreme Court of Appeal held:
“
In
Shatz
Investments (Pty) Ltd v Kalovyrnas
[
1976
(2) SA 545
(A)
]
this court was confronted with the question whether, without any
cross-appeal, it could correct an order of a trial court by making
a
prayer for interest, which that court had not granted.
Trollip JA said the following:
‘
The
court a quo did not award it, possibly because it was not claimed in
the pleadings. But, be that as it may, in the absence
of any
cross appeal to correct the order of the court a quo to
plaintiff’s advantage and defendant’s detriment
by
including an award of such interest, we cannot deal with it.’
This dictum reaffirmed
trite principles. These are that a respondent in an appeal may
support the order appealed against on
any ground that properly
appears from the record. In order to obtain a variation of the
order, however, a respondent must
cross-appeal with the necessary
leave, save perhaps in exceptional circumstances where there is no
prejudice to the appellant.”
[74]
[100]
This principle predates the Constitution. In
the current constitutional era, the principle assumes a
constitutional dimension.
It fits squarely within the dictates
of the section 34 guarantee of a fair hearing. It is at
variance with a fair hearing
for a court to decide an issue that has
not been pleaded and which the affected party was not called upon to
answer. In
Koch & Kruger
Brokers
this Court held:
“
Jurisdiction
is determined by an applicant’s pleaded case. I am
satisfied that the complaint that the High Court strayed
beyond the
separated issue and thereby violated the applicants’ section 34
rights engages our constitutional jurisdiction.”
[75]
[101]
The
Gent
quotation above refers to
the question of prejudice: “In order to obtain a variation of
the order . . . a respondent must
cross-appeal . . . , save perhaps
in exceptional circumstances where there is no prejudice to the
appellant”.
[76]
Vodacom and Mr Makate adopt contrasting views on the impact of
the order of the Supreme Court of Appeal. The difference
hinges
on the nature of prejudice suffered by Vodacom as a result of the
order. On the one hand, Mr Makate argues that no
prejudice is
suffered by Vodacom because the amount due from Vodacom under the
order of the Supreme Court of Appeal is lower than
the amount due
under the High Court’s order. On the other hand, Vodacom
contends that the Court should not follow this
utilitarian
understanding of prejudice and argues that prejudice is not about the
outcome but consists in the violation of the
court process.
[102]
In accordance with the High Court remittal order, the CEO is yet to
make fresh calculations followed
by a second determination. I
am loath to engage in any comparisons of the amounts involved in the
manner suggested by Mr
Makate. Overall, I find Vodacom’s
approach on prejudice more convincing as it accords with section 34
of the Constitution
and the right to have a fair process. By
deciding a case that was not before it, the Supreme Court of Appeal
deprived Vodacom
of the opportunity to make submissions on whatever
issue it might have been minded to on the possibility of a
substituted order.
[103]
I do not find it necessary to deal with the
remaining grounds of appeal.
Remedy
[104]
This
judgment merely highlights the fatal shortcomings in the Supreme
Court of Appeal’s judgment. It does not make its
own
decision on any of the attendant issues. Those are the very
issues that ought to have been decided by the Supreme Court
of
Appeal. It seems to me the just and equitable remedy
[77]
is for the appeal to be decided on its merits by the Court that ought
to have decided it. More importantly, in the main,
what remain
for determination in the appeal are factual questions that do not
ordinarily fall for determination by this Court.
The
jurisdiction of this Court is confined to constitutional issues and
arguable points of law of general public importance which
ought to be
considered by it.
[78]
In
this judgment we dealt with factual issues, without deciding them,
purely to demonstrate the Supreme Court of Appeal’s
failure to
comply with the duty of proper consideration. We cannot
suddenly be at large, as the legal language says, to determine
those
factual issues.
[105]
In sum, it seems to me, therefore, that the matter
must be remitted to the Supreme Court of Appeal for a proper
determination
of the appeal. And that must be before a
differently constituted panel of that Court.
Costs
[106]
Obviously, costs in this Court must follow the
result. About costs of the abortive Supreme Court of
Appeal hearing, none
of the parties is to blame. It seems to me
that an appropriate costs order is that each party must bear their
own costs.
Those wasted costs are confined to the costs
directly relating to the abortive hearing in the Supreme Court
of Appeal.
The other costs incurred to date in the Supreme
Court of Appeal – in particular, the preparation of the record
and written
argument – have not been wasted, and will be
determined when the Supreme Court of Appeal, upon remittal, decides
the appeal.
[107]
Vodacom asked for costs
of three counsel. Having regard to the size of the record,
[79]
the complexity and novelty of the issues and the very large amount at
stake, I think that is a fair and just request. Mr
Makate
himself saw the need to take the precaution of having three counsel
appear for him before us. His written argument
was settled by
six counsel, three of whom were silks. So, costs of three
counsel will be awarded.
Order
[108]
Accordingly, the following order is made:
1.
Leave to appeal is granted.
2.
The appeal is upheld.
3.
The order of the Supreme Court of Appeal is set aside.
4.
The matter is remitted to the Supreme Court of Appeal to be reheard
by a differently constituted
panel of Judges of that Court.
5.
Each party must pay their own wasted costs in respect of the abortive
hearing of the matter
in the Supreme Court of Appeal.
6.
The first respondent must pay the applicant’s costs in this
Court, including the costs
of three counsel.
For the Applicant:
W Trengove SC, R
Solomon SC, M Gumbi SC and A Raw instructed by Leslie Cohen
and Associates
For the First
Respondent:
R
Michau SC, S Scott and D Mutemwa
instructed by
Stemela and Lubbe Incorporated
## [1]Makate
v Vodacom (Pty) Ltd[2016]
ZACC 13; 2016 (4) SA 121 (CC); 2016 (6) BCLR 709 (CC).
[1]
Makate
v Vodacom (Pty) Ltd
[2016]
ZACC 13; 2016 (4) SA 121 (CC); 2016 (6) BCLR 709 (CC).
[2]
Makate
v Joosub N.O.
[2022]
ZAGPPHC 55;
[2022] 2 All SA 226
(GP) (High Court judgment).
[3]
Vodacom
(Pty) Ltd v Makate
[2024]
ZASCA 14
;
[2024] 2 All SA 1
(SCA);
2024 (3) SA 347
(SCA)
(Supreme Court of Appeal judgment).
[4]
The
Supreme Court of Appeal was split 3-2.
[5]
Section
1(c) of the Constitution provides that the Republic of South Africa
is founded on values that include the supremacy of
the Constitution
and the rule of law.
[6]
Before some date in 2007 when Vodacom terminated the practice,
p
repaid
and top-up customers had to use their recharge airtime within a
limited time (the window) after which “they were
locked”
and would be in a state of being without airtime (unless they
recharged before they were locked) even if their
airtime was not
fully used up.
[7]
The concept of “
incremental
calls” is about this. Not all calls made pursuant to a
PCM generate revenue for Vodacom. Such calls
are not
incremental. Examples are the following. A customer has
a contract in terms of which they pay, for example,
R100 for 100
minutes of talk time per month. Because of PCMs that the
customer receives, their normal 80-minute use per
month increases to
90 minutes. Because the 90 minutes is within the 100-minute
monthly talk time, the PCMs do not generate
additional revenue for
Vodacom. Also, there are those instances where a customer
invariably makes certain calls to a specific
person, but the person
sometimes sends PCMs instead of waiting for the calls that are sure
to come (e.g., where the PCM sender
is indicating that they are
ready to take the regular call). In both instances, the calls
will not be incremental.
Calls that do generate revenue are
incremental.
[8]
These
are as summarised by the minority in the Supreme Court of Appeal
judgment above n 3
at
para 57. Even on Vodacom’s responses, I rely on the
minority’s summary.
[9]
55 of 1975. Section 2A(5) provides:
“
Notwithstanding
the provisions of this Act but subject to any other law or an
agreement between the parties, a court of law, or
an arbitrator or
an arbitration tribunal may make such order as appears just in
respect of the payment of interest on an unliquidated
debt, the rate
at which interest shall accrue and the date from which interest
shall run.”
[10]
The
High Court order read:
“
In
the result the following order is made:
(1)
The application to strike out is dismissed with no
order as to
costs.
(2)
The determination by the CEO is referred back
to the first
respondent who is obliged to make a fresh determination with the
following directives:
(a)
The applicant is entitled to be paid 5% of the
total voice revenue
generated from the PCM product from March 2001 to March 2021 by the
second respondent;
(b)
That total voice revenue includes PCM revenue
derived from prepaid,
contract (both in bundle and out bundle) and interconnect (MTR) fees
as set out in the second respondent’s
annual financial
statements as well as the information provided in annexures
16(a)-16(r) produced by the second respondent (CL021-1
to CL021-21)
and collated in annexure NM29 (CL034-1 to CL034-2).
(3)
The first respondent must determine the annual
effective rate, which
effective rate should be a blend between contract effective rate and
prepaid effective rate, and in each
case the respective rates are
not to be less than the published ICASA effective rate:
3.1
The first respondent must assume that the average call duration of
the
return calls is 2 minutes;
3.2
For the purposes of the first respondent’s determination it
must
not be less than the published ICASA effective rate;
3.3
For the purposes of the first respondent’s determination it
must
be assumed that the PCM count in Model 9A is correct. Model 9A
is to be found on NM30, (CL035-1 to CL035-8 and CL036-1);
3.4
The applicant is entitled to 27% of the number of PCMs sent daily as
being revenue generated by the return calls to the PCM.
(4)
The applicant is also entitled to the time value
of money calculated
at 5% for each successive year that the second respondent owes to
the applicant and the capital amount or
annual portion thereof.
(5)
That the first respondent must finalise his determination
within one
month of this order.
(6)
Each party is to pay their own costs for the negotiations
referred
to by the Constitutional Court.
(7)
The costs of this application are to be paid on
a party and party
scale, which costs shall include the costs of two counsel.”
[11]
Supreme
Court of Appeal judgment above n 3
at
para 37.
[12]
Id.
[13]
The
full order reads:
“
1
Save to the extent set out below, the appeal is dismissed with
costs,
including those of two counsel where so employed.
2
The order of the High Court is set aside and substituted
with the
following:
‘
(a)
The decision of the first respondent delivered on 9 January 2019,
determining
the compensation to be paid to the applicant by the
second respondent, is reviewed and set aside.
(b)
The decision referred to in paragraph 1 is substituted with a
decision
that the applicant is entitled to be paid 5%-7.5% of the
total revenue of the PCM product from March 2001 to date of judgment
by the second respondent, together with the
mora
interest
thereon, alternatively interest in terms of
section 2A(5)
of the
Prescribed Rate of Interest Act 55 of 1975
as amended, and that the
total revenue of the PCM product shall be that set out in Model 9A,
9B & 9BB submitted to the
first respondent by the applicant
(annexure NM30–NM32 to the supplementary founding affidavit).
(c)
It is directed that first respondent represented by the second
respondent
shall bear the costs of the negotiations referred to in
the Constitutional Court judgment, which costs shall include:
(i)
drafting of the submissions;
(ii)
preparation for and the hearing before the first respondent;
(iii)
reservation, preparation and qualifying fees of experts involved in
the negotiations
and hearing on an attorney and own client scale.
(d)
The costs of this application are to be paid, jointly and severally,
by the first and second respondents, the one absolving the other.’”
[14]
F
Von Steinaecker v C F Kneisel
(1898)
19 NLR 153.
[15]
Rand
Refinery (Pty) Ltd v Sehunane N.O.
[2023]
ZACC 28
; (2023) 44 ILJ 2434 (CC);
2023 (12) BCLR 1511
(CC);
[2023]
12 BLLR 1235
(CC) at para 19.
[16]
Bekker
v RSA Factors
1983
(4) SA 568
(T) at 573E-F.
[17]
Perdikis
v Jamieson
2002
(6) SA 356 (W).
[18]
Id at 364H-I.
[19]
Occupiers
of Saratoga Avenue v City of Johannesburg Metropolitan Municipality
[2012]
ZACC 9
;
2012 (9) BCLR 951
(CC) at para 7.
[20]
Jurisdiction
is determined by the pleadings. See
Gcaba
v Minister for Safety and Security
[2009]
ZACC 26
;
2010 (1) SA 238
(CC);
2010 (1) BCLR 35
(CC) at para 75
where this Court said that “[j]urisdiction is determined on
the basis of the pleadings . . . and not
the substantive merits of
the case”.
## [21]S
v Boesak[2000]
ZACC 25; 2001 (1) BCLR 36 (CC); 2001 (1) SA 912 (CC).
[21]
S
v Boesak
[2000]
ZACC 25; 2001 (1) BCLR 36 (CC); 2001 (1) SA 912 (CC).
## [22]Mbatha
v University of Zululand[2013]
ZACC 43; 2014 (2) BCLR 123 (CC); 2014 (4) BLLR 307 (CC); (2014) 35
ILJ 349 (CC).
[22]
Mbatha
v University of Zululand
[2013]
ZACC 43; 2014 (2) BCLR 123 (CC); 2014 (4) BLLR 307 (CC); (2014) 35
ILJ 349 (CC).
[23]
R
v Sheppard
2002
SCC 26
;
[2002] 1 SCR 869
at para 55.
[24]
Bernert
v Absa Bank Ltd
[2010]
ZACC 28
;
2011 (3) SA 92
(CC);
2011 (4) BCLR 329
(CC) at para 102.
[25]
S
v Basson
[2005]
ZACC 10
;
2005 (12) BCLR 1192
(CC);
2007 (1) SACR 566
(CC);
2007 (3)
SA 582
(CC) at para 69.
[26]
Social
Justice Coalition v Minister of Police
[2022]
ZACC 27
;
2022 (10) BCLR 1267
(CC) at para 51.
[27]
De
Beer N.O. v North-Central Local Council and South-Central Local
Council
[2001]
ZACC 9
;
2001 (11) BCLR 1109
(CC);
2002 (1) SA 429
(CC) at para 11.
[28]
There are exceptions to the duty to provide reasons, a ready example
being that apex courts do not have to give reasons for refusing
leave to appeal.
[29]
I
say the two duties are closely connected because it is through the
articulated reasons that we can actually see that there was
compliance with the duty of proper consideration.
[30]
Mphahlele
v First National Bank of South Africa Ltd
[1999]
ZACC 1
;
1999 (2) SA 667
(CC);
1999 (3) BCLR 253
(CC) at para 12.
[31]
Zayidov
v Azerbaijan (No.2)
,
no 5386/10,
ECHR
2022.
[32]
Zayidov
above
n 31
at
para 91.
[33]
Id (
emphasis
added).
[34]
Van
de Hurk v The Netherlands
,
no 16034/90, ECHR 1994 at para 59.
[35]
English
v Emery Reimbold and Strick Ltd
[2002]
EWCA Civ 605
at
para 9.
[36]
Flannery
and Anor v Halifax Estate Agencies Ltd
[1999]
EWCA Civ 811
, quoted in
English
id
at para 6.
[37]
Ruiz
Torija v Spain
,
no 18390/91, ECHR 1994 at para 29. See also
Garcia
Ruiz v Spain
,
no 30544/96, ECHR 1999 at para 26.
[38]
Ruiz
Torija
id
at para 29.
[39]
Hunter
v Transport Accident Commission
[2005]
VSCA 1
at
para 21.
[40]
English
above
n 35 at para 17.
[41]
English
above
n 35 at para 19.
[42]
Compare
Crinion
v IG Markets Ltd
[2013]
EWCA Civ 587
at para 17 where the Court, commenting on what it
described as “seriously defective” judgments that were
the
subjects of appeal in
English
,
held that – in respect of those judgments –
the
courts concerned were still found to have performed their judicial
function properly.
[43]
Zayidov
above
n 31 and
Ruiz
Torija
above
n 37.
[44]
R
v Deschamplain
2004
SCC 76
;
[2004] 3 SCR 601
at para 34.
[45]
R
v Walker
2008
SCC 34
;
[2008] 2 SCR 245
at para 20.
[46]
Transport
Accident Commission v Kamel
[2011]
VSCA 110
at para 73.
[47]
Supreme Court of Appeal judgment above n 3 at para 26.
[48]
Id.
[49]
Id
at para 35.
[50]
Id
at
para 21.
[51]
Id
at paras 110-12, 125, 165 and 167.
[52]
On the rule, see
Plascon-Evans
Paints Ltd v Van Riebeeck Paints (Pty) Ltd
[1984]
ZASCA 51
;
[1984] 2 All SA 366
(A);
1984 (3) SA 623
(A).
[53]
Supreme Court of Appeal judgment above n 3 at paras 110-12,
125, 165 and 167.
[54]
As
authority relied on above shows, it is a breach of the duty of
proper consideration not to consider issues that are fundamental
to
the determination of a matter.
[55]
Supreme
Court of Appeal judgment
above
n 3
at
paras 110-12, 125, 165 and 167.
[56]
Id
at para
22.
[57]
To
recapitulate, the
Bekker
test,
as paraphrased in
Perdikis
above
n 17
at
para 7, is to this effect:
“
It
was held in
Bekker
. . . that a valuation can be rectified on equitable grounds where
the valuer does not exercise the judgement of a reasonable
[person]
that is, [their] judgement is exercised unreasonably, irregularly or
wrongly so as to lead to a patently inequitable
result.”
[58]
Supreme Court of Appeal judgment above n 3 at paras 23-4.
[59]
Compare
English
above
n
35
at
para
6
with reference to
Flannery
above
n 36
at
381 where it was held:
“
But
where the dispute involves something in the nature of an
intellectual exchange, with reasons and analysis advanced on either
side, the judge must enter into the issues canvassed before him and
explain why he prefers one case over the other.”
[60]
Supreme
Court of Appeal judgment
above
n 3
at
para 18.
[61]
I
have explained the concept of incremental calls above at n 7.
[62]
Supreme Court of Appeal judgment above n 3 at para 34.
[63]
Id at para 37 (
emphasis
added).
[64]
Supreme
Court of Appeal judgment
above
n 3
at
para 36.
[65]
This
is the paragraph that provides for a range of 5%-7.5% revenue share
and
mora
interest
or interest in terms of
section 2A(5)
of the
Prescribed Rate of
Interest Act.
[66
]
High Court judgment above n 2 at para 106.
[67]
Boesak
above
n 21.
[68]
Mbatha
above
n 22.
[69]
Bekker
above n 16.
[70]
Supreme Court of Appeal judgment above n 3 at para 34.
[71]
Id at para 36.
[72]
On the percentage of revenue to which Mr Makate is entitled, the
order stipulates it as 5%-7.5%. That range translates
to huge
differences in the amounts payable across the range. The order
should have made one specific choice. Also,
on interest the
order states two alternatives. On that too, which rate takes
precedence?
[73]
Saratoga
Avenue
above
n 19 at para 7.
[74]
Gent v
Du Plessis
[2020]
ZASCA 184
at
paras 15-16.
## [75]Koch
& Kruger Brokers CC v Financial Sector Conduct Authority[2023]
ZACC 27; 2023 (11) BCLR 1329 (CC) at para 24.
[75]
Koch
& Kruger Brokers CC v Financial Sector Conduct Authority
[2023]
ZACC 27; 2023 (11) BCLR 1329 (CC) at para 24.
[76]
Gent
above
n 74
at
para 16.
[77]
Section
172(1)(b) of the Constitution provides that “[w]hen deciding a
constitutional matter within its power, a court .
. . may make any
order that is just and equitable”.
[78]
Section
167(3)(b) of the Constitution.
[79]
The
record totalled 27 volumes and just under 3 000 pages.
sino noindex
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