Case Law[2024] ZACC 20South Africa
Greater Tzaneen Municipality v Bravospan 252 CC (CCT 342/22) [2024] ZACC 20; 2025 (1) BCLR 1 (CC); 2025 (1) SA 557 (CC) (2 October 2024)
Constitutional Court of South Africa
2 October 2024
Headnotes
Summary: Compensation for services delivered pursuant to an unlawful tender process — court not placed in a position to decide substantive basis for compensation — in the interests of justice not to delay compensation — unacceptable conduct for organs of state to use own unlawful conduct to avoid compensating innocent contractors
Judgment
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## Greater Tzaneen Municipality v Bravospan 252 CC (CCT 342/22) [2024] ZACC 20; 2025 (1) BCLR 1 (CC); 2025 (1) SA 557 (CC) (2 October 2024)
Greater Tzaneen Municipality v Bravospan 252 CC (CCT 342/22) [2024] ZACC 20; 2025 (1) BCLR 1 (CC); 2025 (1) SA 557 (CC) (2 October 2024)
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sino date 2 October 2024
Latest amended version 16
October 2024.
FLYNOTES:
CONSTITUTION – Just and equitable remedy –
Unlawful
tender process
–
Municipality
behaved unconscionably – Accepted services from contractor
without paying – Part of broader phenomenon
of organs of
state seeking to rely on own unlawful conduct to avoid
compensating innocent contractors – Supreme Court
of Appeal
order that contractor receive just and equitable compensation –
Once amount determined by High Court –
Outcome plainly in
the interests of justice – Leave to appeal refused.
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case
CCT 342/22
In
the matter between:
GREATER
TZANEEN
MUNICIPALITY
Applicant
and
BRAVOSPAN
252
CC
Respondent
Neutral citation:
Greater Tzaneen Municipality v Bravospan 252 CC
[2024]
ZACC 20
Coram:
Bilchitz AJ, Chaskalson AJ,
Dodson AJ, Madlanga J,
Majiedt J,
Mathopo J, Mhlantla J,
Theron J and Tshiqi J
Judgments:
Bilchitz AJ
(concurring): [1] to [53]
Chaskalson AJ
(majority): [54] to [63]
Dodson AJ
(concurring): [64] to [68]
Heard on:
20 February 2024
Decided on:
2 October 2024
Summary:
Compensation for services delivered pursuant to an unlawful
tender process — court not placed in a position to decide
substantive
basis for compensation — in the interests of
justice not to delay compensation — unacceptable conduct for
organs of
state to use own unlawful conduct to avoid compensating
innocent contractors
ORDER
On
appeal from the Supreme Court of Appeal (hearing an
appeal from the High Court of South Africa, Limpopo Division,
Polokwane):
1.
Leave to appeal is refused.
2.
The applicant is ordered to pay the
respondent’s costs in this Court, including the costs of two
counsel.
JUDGMENT
BILCHITZ AJ
(Mathopo J concurring):
Introduction
[1]
The
Constitution enjoins organs of state to maintain and promote a high
standard of professional ethics.
[1]
Moreover,
when contracting for goods and services, organs of state are mandated
to do so in accordance with systems that are fair,
equitable,
transparent, competitive and cost-effective.
[2]
This
case concerns a municipality, the Greater Tzaneen Municipality
(Municipality), the applicant in this matter, that purported
to
extend an existing contract for the provision of security services,
in the absence of a lawful tender process. Upon recognising
the
failure to conform to its own procurement processes, the Municipality
applied to invalidate the extension of the contract.
Notwithstanding the invalidity application, the Municipality
requested the respondent, Bravospan 252 CC (Bravospan), to continue
providing services but failed to pay for them.
[2]
The
contract was declared invalid in one set of legal proceedings but no
order was made concerning compensation for the services
that had
already been delivered. Bravospan then brought separate
proceedings to claim payment for the performance it had
rendered.
The High Court found in favour of Bravospan based on the common law
of unjustified enrichment. The present
application is against
the Supreme Court of Appeal’s order that Bravospan was entitled
to claim compensation but on a different
underlying legal foundation
to the decision of the High Court – namely, through the
exercise of a court’s power to
make any order that is just and
equitable in terms of section 172(1)(b) of the Constitution.
[3]
Background
[3]
In 2013, the Municipality advertised
a tender for the supply of security services. In the
advertisement, the duration of the
contract was not clearly
stipulated. At a briefing session, the Municipality informed
the potential bidders (including Bravospan)
that the initial term of
the contract would be for 12 months and could be subject to an
extension, depending on price.
[4]
Following a competitive bid process,
Bravospan was awarded the tender to provide the Municipality with
security services.
On 20 November 2013, the parties entered
into a written agreement, the terms of which required Bravospan to
provide the following
services:
“
4.6.1
Installation and commissions of CCTV surveillance system at the
following Municipal areas:
- Civic Centre (main
building) – CBD streets
- Tzaneen Library
- Tzaneen Testing Ground
- Municipal Stores
- Electrical Power
Station
- Nkowankowa Testing
Ground
- Mechanical Workshop
4.6.2
Maintenance, repairs and support of CCTV system
4.6.3
To provide staff to monitor the control room for 24 hours [seven]
days a week.”
[5]
The clause relating to the duration
of the contract provided as follows:
“
5.1
The value of this contract shall be R2 757 666.60 for a
period of 12 months.
Should the Municipality wish to
extend the service, written agreement must be negotiated and signed
by the two parties especially
on prices.”
[6]
Pursuant to the conclusion of the
agreement, Bravospan set up a fully equipped control room and
installed monitoring equipment at
the contractually specified sites.
All invoices for these services were honoured and paid in full by the
Municipality in
terms of the agreement.
[7]
Shortly before the termination of
the contract, the parties entered into negotiations to extend the
agreement for a further 24 months.
During these negotiations,
Bravospan specifically asked the Municipality about the validity of
an extension agreement without an
additional bid process. The
Municipality, on the strength of a legal opinion it obtained, assured
Bravospan that the agreement
could be lawfully extended without the
need for a further tender process.
[8]
On 28 August 2014, the parties
purported to extend the duration of the agreement for a further
period of 24 months (extension agreement),
without an additional
tender process. The terms of the extension agreement included
additional sites at which Bravospan would
provide security services.
The agreed value of the contract was increased accordingly to
R9 624 000.
[9]
Despite the litigation discussed
below, Bravospan continued to provide the services specified in the
extension agreement to the
Municipality until the end of the 24 month
period (31 October 2016) and delivered monthly invoices to the
Municipality.
The Municipality failed to honour these
invoices. A demand for the Municipality to compensate Bravospan
for the services
delivered in terms of the extension agreement
resulted in litigation and the present application before this Court.
Litigation
history
High
Court – the invalidity application
[10]
On 9 February 2015, the Municipality
brought an application in the High Court of South Africa,
Limpopo Division, Polokwane
(High Court) seeking an order declaring
the extension agreement null and void, or, in the alternative,
reviewing and setting aside
the agreement. Bravospan opposed
the application and filed a counter application for the payment
of R2 005 000,
that comprised the amount for services
rendered in terms of the extension agreement, as at the date of the
proceedings.
[11]
The
Municipality contended that the extension agreement was concluded
without a tender process and, therefore, was not in compliance
with
section 217(1) of the Constitution,
[4]
sections 111
[5]
and 112(1)
[6]
of the Local Government: Municipal Finance Management Act
[7]
and Circular 62
[8]
issued by the
National Treasury which contains guidelines and measures to improve
accountability and transparency in municipal
procurement
processes.
[9]
In its
founding affidavit, the Municipality submitted that in terms of its
own policy, based on Circular 62, competitive
bids had to be invited
when any goods or services were procured in excess of R200 000
(VAT inclusive) or for any contract
that exceeded one year in
duration. In addition, the policy required the preparation and
publication of a bid specification
inviting qualifying bids, which
are evaluated by a Bid Evaluation Committee. The award of a
preferred bidder is then decided
by a Bid Adjudication Committee.
[12]
In its opposing papers, Bravospan
submitted that the Municipality had failed to adhere to clauses 14
and 15 of the extension agreement,
which provided for the settlement
of disputes by consultation and, if that fails, a referral of the
dispute to arbitration.
On the merits, Bravospan placed
reliance on clause 5.1 of the agreement, which permitted the
possibility of negotiating and agreeing
upon an extension. It
submitted that this clause was complied with and, therefore, the
extension agreement was properly negotiated
and valid. Further,
it alleged that the defence of estoppel was available to it, given
the express recordal that the Municipality
was represented by the
acting municipal manager who was duly authorised to enter into the
contract by the municipal council.
The Municipality provided
Bravospan with no reason to suspect that its internal processes were
not followed when the extension
agreement was concluded.
[13]
On 8 July 2015, the Municipality
made a written offer of settlement to Bravospan and on 10 July 2015,
it wrote to Bravospan requesting
it to continue rendering services
until a new service provider was appointed. On 13 July 2015,
Bravospan appears to have
accepted the offer of settlement but the
negotiations did not proceed any further and the matter was argued
before the High Court
on 29 April 2016.
[14]
On 19 August 2016, Mokgohloa DJP
delivered judgment in favour of the Municipality and held that the
extension agreement was
invalid for want of compliance with the
Municipality’s legal obligations when conducting procurement
processes. Bravospan’s
reliance on estoppel was rejected
on the basis that to uphold the transaction would grant validity to a
contract that was unlawful
and
ultra
vires
(beyond the Municipality’s
legal powers). Nothing was said about compensation for the
services already delivered.
As a result, the following order
was granted:
“
1.
The extension of a service level agreement concluded between the
[Municipality] and
[Bravospan] is declared null and void.
2.
The counter-application is dismissed with costs.
3.
[Bravospan] is ordered to pay the costs of the application on an
attorney and
client scale.”
[15]
Aggrieved by this order, Bravospan
brought an application for leave to appeal to the Full Court of the
High Court, which was dismissed
by Mokgohloa DJP on
9 November 2016. A subsequent application for leave
to appeal to the
Supreme
Court of Appeal
suffered the same
fate on 27 February 2017.
High
Court – the compensation application
[16]
On
8 September 2017, Bravospan delivered a notice in terms of section
3(2) of the Institution of Legal Proceedings against Certain
Organs
of State Act
[10]
(Legal Proceedings Act) to the Municipality. That
notice related to an intended damages claim against the Municipality.
[17]
On 19 January 2018, Bravospan issued
summons in the High Court and claimed from the Municipality an amount
of R9 624 000,
comprising the contractual amount specified
in the extension agreement. In its particulars of claim,
Bravospan relied on
four alternative causes of action, namely, (a)
delict; (b) fraudulent misrepresentation; (c) unjustified
enrichment; and (d)
constitutional damages. The Municipality
opposed the action and raised four special pleas: (a)
res
judicata
(the claim has already been
adjudicated); (b) non compliance with section 3(2) of the
Legal Proceedings Act;
(c) that constitutional damages
did not constitute an appropriate remedy; and (d) prescription.
[18]
In the pre-trial minute of 21
September 2020, the parties agreed to a separation of the question of
liability from the determination
of the quantum of compensation that
might be found to be due. The only issue before the High Court
was, therefore, to determine
the question of liability. It was
agreed by the parties that if the High Court found in favour of
Bravospan, the issue
of quantum would be referred to mediation.
[19]
On 2 February 2021, the High Court,
per Makgoba JP, delivered a judgment on the merits and found in
favour of Bravospan on
the basis of the unjustified enrichment cause
of action. The Court held that it was unnecessary to consider
the other three
causes of action. It dismissed the
Municipality’s special pleas in relation to
res judicata
,
non compliance with the Legal Proceedings Act and prescription.
The following order was granted:
“
41.1.
[Bravospan] has made out a case against the defendant based on unjust
enrichment.
41.2.
The [Municipality] is ordered to pay [Bravospan] an amount determined
under the disputed quantum.
41.3.
The [Municipality] [is] to pay the costs of this action on [the]
party and party scale.”
Supreme
Court of Appeal – the compensation appeal
[20]
With leave granted by Makgoba JP,
the Municipality, on 29 April 2021, appealed to the
Supreme Court of Appeal
against Makgoba JP’s judgment and order. The appeal
was limited to the two special pleas that had been dismissed
by the
High Court: first, that Bravospan had failed to comply with the
provisions of section 3(2) of the Legal Proceedings
Act and
second, that a portion of Bravospan’s claim had prescribed.
[21]
During the hearing, the
Supreme
Court of Appeal,
of its own accord,
raised the possibility of granting compensation under section
172(1)(b) of the Constitution and ordered the parties
to deliver
supplementary heads of argument on that issue. The parties
complied with this order.
[22]
On
7 November 2022, the
Supreme
Court of Appeal
found
that no case had been made out on the two grounds of appeal. It
went on to hold, however, that the High Court had
incorrectly
awarded compensation based on unjustified enrichment. South African
law, it reasoned, had not yet recognised
a general enrichment action
and that made the finding of the High Court not “sustainable in
law”.
[11]
It
nevertheless reasoned that it would be “manifestly unjust for
Bravospan to be afforded no compensation for the services
that it had
rendered to the [M]unicipality”.
[12]
In the
Supreme
Court of Appeal
’s
view, there were exceptional circumstances warranting an order of
compensation under an alternative legal foundation, namely,
section 172(1)(b) of the Constitution.
[23]
The Supreme Court of Appeal held
that section 172(1)(b) confers a wide discretionary power upon courts
to make any order that is
just and equitable. That power, the
Court held, would normally be triggered when a court declares a law
or government conduct
invalid. The Court found that this power
enables a court to address circumstances that could lead to injustice
where parties
have materially changed their position on the
assumption that the law or conduct relied upon was valid. It
also found that
there was no reason, in principle, why relief under
subsections 172(1)(a) and (b) could not be claimed in separate
proceedings.
As a result, the
Supreme
Court of Appeal
made the following
order:
“
1
The appeal is upheld with no order as to costs.
2
The order of the High Court is set aside and replaced with the
following:
‘
(a)
It is declared that [Bravospan] is entitled to compensation for the
services rendered to
the [Municipality] during the period from
1 November 2014 to 31 October 2016 as a just and
equitable remedy
under section 172(1)(b) of the Constitution;
(b)
Costs of the hearing on the merits are reserved.’
3
The matter is referred back to the High Court to determine the
quantum
of that compensation in accordance with the applicable law.”
[24]
It is paragraphs 2 and 3 of this
order against which the Municipality seeks leave to appeal in this
Court and asks us to overturn.
In
this Court
Applicant’s
submissions
[25]
On jurisdiction, the Municipality
submits that its application for leave to appeal concerns the proper
interpretation and application
of section 172(1) of the Constitution,
which is a constitutional matter. The key issue is whether a
court other than the
court making a declaration of invalidity can
subsequently, on the basis of a fresh claim, grant compensation in
terms of section
172(1)(b). The Municipality asserts that leave
to appeal should be granted because the application has reasonable
prospects
of success on this point.
[26]
On the merits, the Municipality
submits that the
Supreme
Court of Appeal
was not entitled to
grant relief
mero motu
(of its own accord) on the basis of section 172(1)(b) when that
matter was not squarely before it. The causes of action
underlying the claim had not been formulated in terms of this
section, nor was the awarding of compensation a “constitutional
matter” as contemplated in section 172(1).
[27]
Moreover, section 172(1)(b) cannot
be invoked in separate court proceedings to those in which a
declaration of invalidity in terms
of section 172(1)(a) is made.
The court considering invalidity is the only court competent to make
a compensation order in
terms of section 172(1)(b). Ordinarily,
declarations of invalidity have retrospective effect and it is for
the court making
that order to decide whether to limit
retrospectivity. The Municipality contends that section
172(1)(b) is not a self standing
provision upon which a damages
claim can be founded.
Respondent’s
submissions
[28]
Bravospan submits that leave to
appeal ought to be denied. It avers that the
Supreme
Court of Appeal’s
judgment is
in all material respects correct and there are no reasonable
prospects of success.
[29]
On the merits, Bravospan submits
that it pleaded a cause of action rooted in the Constitution, namely,
constitutional damages, before
the High Court. In addition, it
contends that evidence was led in support of all four causes of
action and that it was the
High Court that decided to make a
finding on one cause of action and not the others. That,
however, does not mean that
the High Court had dismissed the other
causes of action. The
Supreme
Court of Appeal
, therefore, had not
raised section 172(1)(b)
mero motu
and it was open to it to consider that section as an alternative
basis for awarding compensation.
[30]
Moreover,
relying on this Court’s decision in
Steenkamp
,
[13]
the
Supreme
Court of Appeal
had found correctly that the improper performance of an
administrative function entitles the aggrieved party to appropriate
relief.
Section 172(1)(b) could also be invoked in separate
proceedings to a declaration of invalidity where a basis for that
relief was
pleaded.
[31]
Bravospan submits that it was an
innocent contractor who had taken the additional precautionary step
of enquiring into the legality
of awarding such a contract without a
bid. The Municipality led it to believe that the extension
agreement was lawful.
Even during the invalidity proceedings,
it was the Municipality that had requested it to continue providing
the security services.
As a result, submits Bravospan, the
Municipality acted in bad faith and its conduct was unfair. On
the other hand, it contracted
with the Municipality in good faith and
in an honest manner. Despite the invalidity of the extension
agreement, justice and
equity dictate that it should be compensated
for the services it provided to the Municipality. Thus,
Bravospan submits that
the
Supreme
Court of Appeal
was entitled to make
an order for compensation under section 172(1)(b).
Analysis
Jurisdiction
[32]
In terms of section 167(3)(b)(i) of
the Constitution, this Court has the power to decide constitutional
matters. This case
concerns a claim for compensation based on
the delivery of services pursuant to the extension of an agreement
between the Municipality
and Bravospan that was later declared
invalid.
[33]
The issue raised in this application
is not about the validity of the contract. That has already
been decided. The question
before us concerns whether the
Supreme Court of Appeal was correct of its own accord to overturn the
High Court’s finding
on unjustified enrichment and, instead,
utilise section 172(1)(b) of the Constitution as the basis to found
liability for compensation
in separate proceedings from those in
which the contract was declared invalid. That is a
constitutional issue relating to
the interpretation and application
of a constitutional provision and, therefore, engages our
jurisdiction.
Leave to appeal
[34]
It
is trite that this Court will only grant leave to appeal when it is
in the interests of justice to do so.
[14]
That enquiry is a broad test involving the balancing of several
considerations including, but not limited to, the public
interest in
hearing the matter and the importance of the issues raised.
[15]
This Court will also consider whether the issues before it have
been properly identified, framed and ventilated, allowing
for the
rendering of an authoritative decision that takes account of all the
relevant dimensions it must consider.
[16]
[35]
The
central question that is the subject of this appeal relates to
whether section 172(1)(b) can be a self-standing basis for
awarding compensation
in
separate proceedings
to those in which a contract was declared invalid in terms of
section 172(1)(a) of the Constitution.
[17]
[36]
That
question arises only as a result of the decision of the Supreme Court
of Appeal to go beyond the two grounds of appeal which
it dismissed.
In this regard, the Supreme Court of Appeal briefly considered and
rejected the finding of the High Court that
compensation could be
awarded on the basis of unjustified enrichment. Instead, the
Supreme Court of Appeal,
mero
motu
,
developed an alternative basis to award compensation rooted in
section 172(1)(b) of the Constitution. Prior precedent supports
the right of a court to raise a legal issue
mero
motu
where it considers an error of law to have been made.
[18]
[37]
Nevertheless,
as has been made clear by this Court, the Constitution envisages one
system of law
[19]
and does not
seek to replace the entire edifice of the common law with separate
constitutional actions.
[20]
Section 173 of the Constitution recognises the inherent power
of superior courts to develop the common law. Moreover,
in
terms of section 39(2) of the Constitution, when developing the
common law, courts are obligated to promote the spirit,
purport and
objects of the Bill of Rights.
[21]
In
Carmichele
,
[22]
this Court recognised that “under the Constitution there can be
no question that the obligation to develop the common law
with due
regard to the spirit, purport and objects of the Bill of Rights is an
obligation which falls on all of our courts including
this
Court”.
[23]
[38]
The
Constitution recognises that the common law we inherited included
elements of significant value whilst also needing to be thoroughly
decolonised and adapted to a modern, diverse and democratic African
society. That process is an ongoing one and, where relevant,
requires a deep interpenetration of constitutional norms into the
common law.
[24]
In
transforming the common law, it is important to bear in mind the need
to draw on values rooted in South Africa such as
ubuntu
.
[25]
What emerges from this Court’s jurisprudence
[26]
and philosophical writings,
[27]
is that
ubuntu
requires acting in ways that promote harmonious relationships and
co-operation with others. That value is of importance not
only
in the context of public law but also private law, though there
remains much work to be done to develop its implications in
the
latter area.
[28]
[39]
The
Supreme Court of Appeal did not engage with whether the common law
should be developed to address the predicament of contractors
such as
Bravospan. Yet, on its face, this case has many of the
hallmarks of an unjustified enrichment action.
[29]
Visser writes that “[a] large part of the law of
enrichment has to do with reclaiming transfers made in terms of void
contracts or transfers outside the four corners of a valid
contract”.
[30]
Authors
who have attempted to systematise enrichment liability in our law
view it as essentially involving the enrichment
of one party at the
expense of another party who is impoverished in a manner that is
unjustified or without legal cause.
[31]
[40]
For
a cause of action rooted in unjustified enrichment to be successful
in a case such as the present, we would need to consider
developing
the common law and address a number of important legal questions on
which there has been much academic discussion in
recent years.
These include, for instance, whether the applicable specific
condictiones
(enrichment actions) could be extended to apply in circumstances
where services (and not money or goods) were delivered;
[32]
and, potentially, whether it is desirable to develop the common law
to recognise a general enrichment action, which was contemplated
but
not effected in
McCarthy
.
[33]
For present purposes, I merely point out that the common law of
unjustified enrichment, either in its pre-constitutional
form or duly
developed in accordance with sections 39(2) and 173 of the
Constitution,
[34]
may well be
capable of accommodating an innocent contractor in the position of
Bravospan. To adjudicate on this question, such
an innocent
contractor would have to bring a properly pleaded claim to be
compensated for the amount by which its performance pursuant
to an
invalid contract has enriched the organ of state that received its
services.
[41]
Crucially,
Bravospan, at no point, cross-appealed against the finding of the
Supreme Court of Appeal relating to unjustified enrichment
–
and so that matter is not properly before us. As a result, no
written argument was presented by counsel on the important
questions
raised above relating to the development of the common law of
unjustified enrichment. We also lack the benefit
of any
in-depth reasoning both in the High Court and the Supreme Court
of Appeal in this regard. Ordinarily, this Court
has held that,
when developing the common law, it should have the benefit of
judgments from the High Court and the Supreme Court
of Appeal.
[35]
For these reasons, it is not open to us to examine whether
developing the common law could potentially offer the most
appropriate
avenue for an underlying cause of action in cases such as
the present one (nor would it be desirable).
[42]
Instead,
we are being invited to ignore the potential relevance of the common
law, and recognise a separate, direct constitutional
cause of action
rooted in section 172(1)(b) of the Constitution, in the manner
developed by the Supreme Court of Appeal to
address the injustice
that would result from denying Bravospan a claim. In my view,
we should not accept that invitation.
Our courts have an
obligation to develop the common law, and such an approach is
particularly relevant to the realm of public
procurement. When
they enter into contracts, organs of state are bound by public law
duties but also engage in relationships
which exhibit features that
are generally regulated by the domain of private law. As a
result, public procurement law straddles
the boundary between public
and private law.
[36]
The
Constitution enjoins us to harmonise these different domains and
allow them mutually to enhance one another.
[37]
[43]
The
common law of unjustified enrichment may be capable of development in
light of constitutional imperatives to cover cases such
as the
present. At the same time, the development of constitutional
law in these circumstances may also benefit from an engagement
with
the accrued wisdom of the common law. Unfortunately, the way
this case unfolded in the lower courts means that, if we
grant leave
to appeal, we are placed in the untenable position to make an
authoritative pronouncement with far reaching implications
with
only an incomplete and partial view of the legal possibilities
available. It is, therefore, not in the interests of
justice
for us to grant leave to appeal.
[38]
[44]
The
disagreement with my Colleague Chaskalson AJ (second judgment)
is a narrow but important one. I cannot agree that
the primary
reason for refusing leave to appeal can be that the outcome achieved
through doing so accords with a judge’s
sense of justice.
This is particularly so where the reasoning in the lower courts for
reaching that outcome is the very basis
of the appeal. Indeed,
that is precisely the situation in this case: the grounding for this
appeal by the Municipality is
a challenge to the reasoning of the
Supreme Court of Appeal to award compensation to Bravospan on the
basis of section 172(1)(b)
of the Constitution. To affirm the
outcome of the Supreme Court of Appeal judgment but not to engage
with its reasoning –
and the desirability or otherwise of this
Court doing so – fails to grapple with the very basis of the
leave to appeal application,
which is that the result could not be
reached in a legally justifiable way.
[39]
[45]
I
have grave reservations about interpreting the “interests of
justice” test for leave to appeal to grant this Court
a
free standing discretion to make ad hoc decisions, on the
basis that it approves of the outcome of refusing leave.
The
second judgment quotes the approach adopted in
Fraser
[40]
as support for its approach. In my view,
Fraser
should only be applied in very limited circumstances, if at all –
otherwise, it opens the door for judges to decide the substantive
outcome of a case without adequate reasoning, representing a major
widening of unguided judicial discretion at the leave to appeal
stage.
That
would be inimical to the culture of justification – a central
dimension of the rule of law –
that
courts in South Africa are tasked with defending and enacting
through their own practices.
[41]
Principled
legal reasoning is a guard against decision making based purely
on judicial intuitions about outcomes which may
lead to both just and
unjust results. It is perhaps for this reason that the approach
adopted in
Fraser
has not been applied since 1998. There is no need to
resuscitate this troubling precedent to decide this matter given the
settled principles that this Court has adopted in deciding leave to
appeal applications.
[42]
[46]
This
case is also different to
Fraser
in several respects.
Fraser
was concerned with circumstances where the fundamental rights of a
party not involved in the litigation – a vulnerable
child
– and their best interests would be seriously affected were a
substantive finding to be made in favour of the father.
In
those circumstances, the Court was faced with balancing the interests
of a litigant against a vulnerable third party when considering
whether to grant leave to appeal.
[43]
[47]
The circumstances in this case are
entirely different. There are only two parties to this
litigation and the issue does not
concern fundamental rights but
compensation pursuant to a declaration of invalidity. No
vulnerable third party will be harmed.
The Court is thus duty
bound to provide adequate reasons – other than in relation
primarily to achieving a desirable outcome
– for why it grants
or refuses leave to appeal. I have sought, in this judgment, to
explain why granting leave, in
the circumstances in which this case
unfolded, would be undesirable given courts’ substantive duty
to develop the common
law, the lack of a cross appeal and the
lack of argument before this Court as to how the law should optimally
unfold in this
sphere where several options exist. These are
not merely supplementary reasons – as the second judgment holds
–
but the primary grounds on which the leave to appeal
application must fail.
[48]
This
finding has an undesirable consequence – that this Court is not
able to clarify the exact legal basis for awarding compensation
to
Bravospan. Nevertheless, it cannot be in the interests of
justice to prolong this matter through sending it back to the
High
Court for further argument. After almost eight years since
Bravospan ceased providing services to the Municipality,
it still has
not been paid for its work. No evidence on the record indicates
that Bravospan was anything other than an innocent
contractor.
Despite challenging the validity of the contract, the Municipality
requested that Bravospan continue providing
the services – its
refusal to pay for those services suggests that it sought to acquire
the benefit of the services without
paying for them. Indeed,
during the hearing, it was pointed out that the same attorneys that
launched the review application
requested Bravospan to continue
providing its services. Although they differed on the
underlying legal principles, both the
Supreme Court of Appeal and the
High Court were agreed that, after close to a decade of waiting,
Bravospan should receive compensation
for the services that it
provided to the Municipality. It cannot, therefore, be in the
interests of justice to prolong this
litigation and delay an award of
compensation any longer.
[44]
[49]
Unfortunately,
the circumstances of this case are not unique.
[45]
As Navsa ADP stated in
Govan
Mbeki
:
“
This
case is part of an ever growing, and frankly disturbing, long line of
cases where municipalities and organs of state seek to
have their own
decisions, upon which contracts with service providers are
predicated, reviewed and overturned, for want of legality,
more often
than not after the contracts have run their course and services have
been rendered thereunder.”
[46]
[50]
It
is clear too that the conduct of municipalities who behave in the way
described by Navsa ADP fails to meet the ethical standards
that
are expected from all government bodies exercising public power.
Section 195(1) of the Constitution outlines the democratic
values and principles that govern public administration. An
important principle in the present context is that “[a]
high
standard of professional ethics must be promoted and
maintained”.
[47]
As has been mentioned, a central value this Court has previously
identified, with which public authorities must comply, is
ubuntu
.
An ethic of
ubuntu
is inconsistent with taking advantage of others and requires conduct
that involves treating everyone with whom one comes into contact,
with the utmost respect in all interactions. This is
particularly important in the relationship between the government and
its citizens
[48]
– and,
significantly, that includes the conduct of the government in
relation to innocent contractors with whom it engages.
Requesting
a contractor to provide services and then refusing to pay them is a
prime example of unethical conduct.
[51]
For these reasons, I find that it is
not in the interests of justice to grant leave to appeal. The
practical effect of this
finding is that the matter is remitted to
the High Court for a determination of the quantum of
compensation owed to Bravospan.
Costs
[52]
Bravospan has requested that, in the
event of a result in its favour, this Court award it costs, including
the costs of two counsel,
both in the Supreme Court of Appeal and in
this Court. The Municipality has not been granted leave to
appeal and it also
behaved in a disreputable manner in representing
that the extension was lawful, requesting that services continue to
be provided
and failing to pay Bravospan. It is therefore
appropriate to award costs against the Municipality. Bravospan
is thus
entitled to its costs, including the costs of two counsel, in
this Court. Since leave to appeal was not granted and Bravospan
did not cross-appeal, the costs order in the
Supreme
Court of Appeal cannot be interfered with
.
Order
[53]
The following order is made:
1.
Leave to appeal is refused.
2.
The applicant is ordered to pay the respondent’s
costs in this
Court, including the costs of two counsel.
CHASKALSON AJ
(Madlanga J, Majiedt J,
Mhlantla J,
Theron J and Tshiqi J concurring):
Introduction
[54]
I have had the pleasure of reading
the judgment of my Colleague Bilchitz (first judgment).
I agree that this application
for leave to appeal must be dismissed
because it is not in the interests of justice for leave to appeal to
be granted. I
reach this conclusion on grounds that are similar
to those of my colleague. However, I prefer to emphasise
different considerations.
Leave
to appeal and the interests of justice
[55]
The essential facts of this matter
are set out in the first judgment. Those facts show that the
Municipality has behaved unconscionably.
The Municipality
wrongly assured Bravospan that it could lawfully extend the contract
without a new tender process. It accepted
services from
Bravospan under the extended contract without paying for these
services. After it launched its review application,
it induced
Bravospan to continue providing services under the extended contract
while the review application was pending.
It took the benefit
of those services. Yet, it still failed to pay Bravospan for
the services. When the Municipality’s
review application
was successful, it resisted Bravospan’s action for compensation
for the services that it had provided.
It did so on the basis
of technical defences and without calling a single witness at trial
to answer Bravospan’s case on
the merits.
[56]
It is now more than nine years since
the Municipality stopped paying Bravospan for services from which it
was benefiting and that
Bravospan was providing at its repeated
requests. It is certainly not in the interests of justice to
allow the Municipality
to continue to avoid paying Bravospan fairly
for the services that it has taken from Bravospan. The effect
of the judgment
of the Supreme Court of Appeal is that
Bravospan will finally receive just and equitable compensation for
these
services once the amount of such compensation has been
determined in a hearing before the High Court. That
outcome is
plainly in the interests of justice. In my view,
that should be the beginning and end of this application for leave to
appeal.
Analysis
[57]
This
Court grants leave to appeal only when it is in the interests of
justice to do so.
[49]
While reasonable prospects of success are a necessary requirement for
an application for leave to appeal, they are not decisive.
[50]
More than 25 years ago, this Court explained in
Fraser
[51]
that substantive issues relevant to the interests of justice may
sometimes require the refusal of leave to appeal even in cases
where
the appeal has reasonable prospects:
“
The
Constitution requires that provision be made for a litigant to appeal
to this Court against the decision of any other court,
‘when it
is in the interests of justice and with leave of (this) Court’.
The prospects of success are obviously
an important issue in deciding
whether or not to grant leave to appeal. But they are not the
only issue to be considered
when the interests of justice are being
weighed.
.
. .
The
matter must now be brought to an end. Accordingly, even if it
could be shown that there were reasonable prospects of success
in
respect of the complicated procedural and jurisdictional issues that
have been raised (and we express no opinion thereon), it
is not in
the interests of justice that a further appeal should be heard on
them. In these circumstances no purpose would
be served by
setting down the application for leave to appeal and direct access to
debate the issues that have been raised.
The applications must
therefore be refused.”
[52]
[58]
Fraser
was
a case where the best interests of a minor child required an end to
proceedings. So, the interests of justice precluded
the grant
of leave to appeal even if the applicant had reasonable prospects of
success on the merits. The present case does
not involve the
best interests of a minor child. Nevertheless, the logic of
Fraser
applies
to this application for leave to appeal.
[59]
The judgment of the Supreme Court
of Appeal will ensure that, after close to a decade of waiting,
Bravospan will finally receive
just and equitable compensation for
the services that it has provided to the Municipality. That is
plainly in the interests
of justice. To grant leave to appeal
would delay compensation further. That would be contrary to the
interests of justice.
Therefore, leave to appeal should be
refused.
[60]
There are additional reasons why the
interests of justice support the dismissal of the application for
leave to appeal on this narrow
basis. First, such an approach
will send a clear message to the Municipality and other organs of
state that they must pay
for services that are provided to them by an
innocent contractor. This is not a case where there is any
pleaded allegation,
still less evidence, of corruption or other
wrongdoing on the part of Bravospan that would justify the
Municipality’s refusal
to pay it. Instead, the
Municipality is opportunistically raising its own irregular conduct
to avoid paying Bravospan.
As is clear from [49] of the first
judgment, the Municipality’s unconscionable conduct in the
present case is part of a broader
phenomenon of organs of state
seeking to rely on their own unlawful conduct to avoid compensating
innocent contractors for services
that those contractors have
provided to them. This Court must make clear that conduct of
this sort will not be tolerated.
[61]
Second,
there are good reasons of legal policy not to address the
Municipality’s prospects of success. In order to address
prospects of success, it would be necessary to consider the
relationship between section 172(1)(a) and (b) of the
Constitution.
That relationship raises complicated issues of
constitutional law and legal policy. This Court should not
express itself
unnecessarily on these issues unless it is confident
that it can do so without potentially causing problems for the
disposition
of different matters involving these issues in the
future.
[53]
I have no
such confidence.
[62]
Moreover,
the peculiarities of the pleading of the present case at trial and on
leave to appeal to this Court make it a particularly
unsuitable case
for pronouncing on both the general relationship between
section 172(1)(a) and (b) and the scope for
equitable
relief to be granted under section 172(1)(b) in proceedings
other than those in which a section 172(1)(a) order
has been
handed down. Before enshrining a section 172(1)(b) remedy
of the sort created by the Supreme Court of Appeal
judgment, this Court would have to consider whether the purpose
served by such an individualised damages remedy could better be
accommodated under a constitutionally developed common law enrichment
action. As a result of Bravospan’s pleading of
its claim
in the present matter and its failure to cross appeal against the
order of the Supreme Court of Appeal,
this issue was
not canvassed in the proceedings before us.
[54]
Conclusion
[63]
For the reasons set out above, this
application for leave to appeal must be dismissed and I support the
order proposed in the first
judgment. Even if the Municipality
were to have had reasonable prospects of success in relation to the
complicated remedial
issues that it raises regarding section 172
of the Constitution (and I express no views thereon), on the facts of
this case,
the interests of justice preclude
the grant of
leave to appeal.
DODSON AJ:
[64]
I
have had the benefit of reading the well-reasoned judgments of my
Colleagues Bilchitz AJ (first judgment) and Chaskalson AJ
(second judgment). I agree with the conclusion reached in both
judgments that it is not in the interests of justice to grant
the Municipality leave to appeal.
[55]
I
agree with the order in the first judgment, including the order as
to, and the reasons for, costs.
[56]
I
adopt the setting out in the first judgment
of
the background to the matter, the litigation history and the parties’
submissions.
[57]
I
agree with the finding that this Court has jurisdiction.
[58]
[65]
As
far as the reasoning on issues other than costs is concerned, I agree
with each judgment in part and disagree in part.
I agree with
the reasons given in the first judgment for holding that it is not in
the interests of justice to grant leave to appeal.
[59]
However, I do not associate myself with the questioning in the first
judgment of the correctness of
Fraser
.
[60]
I
would not venture down the
obiter
(in passing) path that the first judgment does in relation to the
possible development of an enrichment action to provide for cases
like the present one.
[61]
Nor
would I do so in relation to the possible development of a cause of
action based on section 195 of the Constitution and the
value of
ubuntu
,
as the first judgment seems to foreshadow.
[62]
[66]
The
second judgment finds that it is in the interests of justice to
refuse leave to appeal because doing so leaves in place a just
outcome.
[63]
The first judgment criticises this understanding of the interests of
justice on the grounds that this amounts to decision-making
based on
a judge’s sense of justice, not a legal reasoning process.
[64]
I agree with this criticism.
[67]
I
agree with the “additional reasons” given in the second
judgment for refusing leave to appeal, pertaining to the message
it
sends to municipalities and other organs of state to pay for services
provided by an innocent contractor, and the inappropriateness
of a
decision in this case on the relationship between section 172(1)(a)
and (b) of the Constitution.
[65]
[68]
It is on the above basis that I
concur in the order to be granted.
For the Applicant:
A
P J Els and T M Malatji
Instructed
by Maloka Sebola Attorneys
Incorporated
For the Respondent:
I
Hussain SC and N J Tee
Instructed
by MED Attorneys
Incorporated
[1]
Section
195(1)(a) of the Constitution.
[2]
Section
217(1) of the Constitution. See also
Steenkamp
N.O. v Provincial Tender Board, Eastern Cape
[2006] ZACC 16;
2007 (3) SA 121
(CC);
2007 (3) BCLR 300
(CC)
(
Steenkamp
)
at para 33.
[3]
Section 172(1) of the Constitution states:
“
When
deciding a constitutional matter within its power, a court—
(a)
must declare that any law or conduct that is inconsistent with
the Constitution
is invalid to the extent of its inconsistency;
and
(b)
may make any order that is just and equitable, including—
(i)
an order limiting the retrospective effect of the declaration of
invalidity; and
(ii)
an order suspending the declaration of invalidity for any period and
on any conditions, to allow the competent authority to correct the
defect.”
[4]
Section
217(1) states that “[w]hen an organ of state in the national,
provincial or local sphere of government . . . contracts
for goods and services, it must do so in accordance with a system
which is fair, equitable, transparent, competitive and
cost-efficient.”
[5]
Section
111 provides that each municipality must have and implement a supply
chain management policy that complies with the provisions
of the
Act.
[6]
Section 112(1) provides that a municipality’s supply chain
management policy must comply with the requirements in
section 217(1)
of the Constitution and lists certain
measures and processes that the policy must contain.
[7]
56
of 2003.
[8]
National Treasury
MFMA
Circular No. 62
Supply
Chain Management: Enhancing Compliance and Accountability
(July 2013).
[9]
Id at 1.
[10]
40
of 2002.
[11]
Greater
Tzaneen Municipality v Bravospan 252 CC
[2022] ZASCA 155
(Supreme Court of Appeal judgment) at para 15.
[12]
Id at
para
15.
[13]
Steenkamp
above
n 2.
[14]
S
v Boesak
[2000]
ZACC 25
;
2001 (1) SA 912
(CC);
2001 (1) BCLR 36
(CC) (
Boesak
)
at para 12. See also
Minister
of Finance v Afribusiness NPC
[2022] ZACC 4
;
2022 (4) SA 362
(CC);
2022 (9) BCLR 1108
(CC)
(
Afribusiness
)
at para 20 and
Road
Traffic Management Corporation v Waymark (Pty) Ltd
[2019] ZACC 12
;
2019 (5) SA 29
(CC);
2019 (6) BCLR 749
(CC)
(
Waymark
)
at para 28.
[15]
Afribusiness
id;
Waymark
id;
and
Steenkamp
above
n 2.
[16]
Crown
Restaurant CC v Gold Reef City Theme Park (Pty) Ltd
[2007]
ZACC 2
;
2007 (5) BCLR 453
(CC);
2008 (4) SA 16
(CC) at para 6.
See also the cases referred to in n 38.
[17]
We are concerned in this case with a “self-review” by a
municipality of its own conduct. This Court has held
that such
a review must be conducted in terms of the principle of legality and
hence section 172 of the Constitution is applicable
to relief in
this regard: see
State
Information Technology Agency SOC Ltd v Gijima Holdings (Pty) Ltd
[2017] ZACC 40
;
2018 (2) SA 23
(CC);
2018 (2) BCLR 240
(CC)
(
Gijima
).
[18]
This is an incident of the principle of legality:
see,
for instance,
CUSA
v Tao Ying Metal Industries
[2008]
ZACC 15
;
2009 (1) BCLR 1
(CC);
2009 (2) SA 204
(CC) at para 68; and
Quartermark
Investments (Pty) Ltd v Mkhwanazi
[2013] ZASCA 150
;
[2014] 1 All SA 22
(SCA) at para 20. This
approach was endorsed in
Sarrahwitz
v Martiz N.O.
[2015] ZACC 14
;
2015 (4) SA 491
(CC);
2015 (8) BCLR 925
(CC) at para
31 and more recently,
Miya
v Matleko-Seifert
2023 (1) SA 208
(GJ) at para 52. The supremacy of the
Constitution also supports raising constitutional questions
mero
motu
in certain circumstances
.
Parties must generally be presented with an opportunity to address
the point raised by the court
mero
motu
:
see, for instance,
Director
of Public Prosecutions, Transvaal v Minister for Justice and
Constitutional Development
[2009] ZACC 8
;
2009 (4) SA 222
(CC);
2009 (7) BCLR 637
(CC)
(
Director
of Public Prosecutions
)
at para 43 and
Matatiele
Municipality v President of the Republic of South Africa
[2006]
ZACC 2
;
2006 (5) SA 47
(CC);
2006 (5) BCLR 622
(CC) (
Matatiele
)
at para 68.
[19]
Pharmaceutical
Manufacturers Association of South Africa: In re Ex Parte President
of the Republic of South Africa
[2000]
ZACC 1
;
2000 (2) SA 674
(CC);
2000 (3) BCLR 241
(CC) at para 44.
[20]
See
the recent critique by Boonzaier “Common-Law Avoidance”
(2024) 141
South
African Law Journal
213 of a “trend” he identifies where the common law is
replaced by constitutional law. See also Zitzke
“Constitutional
Heedlessness and Over-excitement in the Common
Law of Delict’s Development” (2015) 7
Constitutional
Court Review
259 who argues for a balance between what he terms “constitutional
heedlessness” and “constitutional over excitement”.
[21]
Where the Constitution applies directly to private parties, the
common law may also be developed in terms of section 8(3)
of
the Constitution.
[22]
Carmichele
v Minister of Safety and Security
[2001] ZACC 22
;
2001 (4) SA 938
(CC);
2001 (10) BCLR 995
(CC).
[23]
Id at paras 34 and 39.
[24]
There
has been a live academic debate on the success or otherwise of this
project as well as its desirability: see, for
instance,
Woolman “The Amazing, Vanishing Bill of Rights”
(2007)
124
South
African Law Journal
762; Van der Walt “Normative Pluralism and Anarchy:
Reflections on the 2007 Term” (2008) 1
Constitutional
Court Review
77;
and Klare and Davis “Transformative Constitutionalism and the
Common and Customary Law” (2010) 26
South
African Journal on Human Rights
403.
[25]
S
v Makwanyane
[1995] ZACC 3
;
1995 (3) SA 391
(CC);
1995 (6) BCLR 665
(CC) at paras
305-7. See also Victor J’s judgment in
Beadica
231 CC v Trustees for the time being of the Oregon Trust
[2020] ZACC 13
;
2020 (5) SA 247
(CC);
2020 (9) BCLR 1098
(CC)
(
Beadica
)
at para 212.
[26]
Makwanyane
id at
paras
263 and 307. See also
Everfresh
Market Virginia (Pty) Ltd v Shoprite Checkers (Pty) Ltd
[2011] ZACC 38
;
2012 (1) SA 256
(CC);
2012 (3) BCLR 219
(CC) at
para 71 and
Dikoko
v Mokhatla
[2006] ZACC 10
;
2006
(6) SA 235
(CC);
2007 (1) BCLR 1
(CC) (
Dikoko
)
at para 68
.
[27]
Tutu
No
Future Without Forgiveness
(Ebury Publishing, London 1999) at 31 and 35, explains “Ubuntu
– [s]ocial harmony is for us the
summum
bonum
– the greatest good. Anything that subverts or
undermines this sought after good is to be avoided like the
plague.” See also Metz “Ubuntu as a Moral Theory
and Human Rights in South Africa” (2011) 11
African
Human Rights Law Journal
at 537-541;
Cornell
and Muvangua
Ubuntu
and the Law: African Ideals and Postapartheid Jurisprudence
(Fordham University Press, New York 2012) and
Tamale
Decolonisation
and Afro Feminism
(Daraja Press, Ottawa 2020) at
229-230.
[28]
See
Beadica
n 25
at paras 72-8 and 206-216. See also Bennett “An African
Doctrine of Equity in South African Public Law”
(2011) 57
Loyola
Law Review
709 at 717 and 720.
[29]
For
a similar case where unjustified enrichment law was applied, see
Mangaung
Metropolitan Municipality v Maluti Plant Hire
[2017] ZAFSHC 55.
[30]
Visser
Unjustified
Enrichment
(Juta & Co Ltd, Cape Town 2008) at 7. Indeed, the
condictio
ob turpem vel iniustam causa
is an enrichment action that encompasses specifically transfers made
pursuant to an illegal agreement (see Du Plessis
The
South African Law of Unjustified Enrichment
(Juta & Co Ltd, Cape Town 2012) at 197-8).
[31]
Visser
id at 8; Du Plessis id at 24; and Sonnekus
Unjustified
Enrichment in South Africa Law
2 ed (LexisNexis, Durban 2017) at 4.
[32]
Visser id at 222-5; Du Plessis id at 63-5; and Scott “
Transforming
the South African Law of Unjustified Enrichment”
(2017) 25
Restitution
Law Review
29
at 6.
[33]
McCarthy
Retail Ltd v Shortdistance Carriers
CC
[2001] ZASCA 14
;
[2001] 3 All SA 236
(A). There are a range
of views from academics about the desirability or otherwise of such
a development and how it should
be effected: see, for instance,
Visser id at 60; Du Plessis id at 6–10; Sonnekus above n 31 at
29-31; Evans-Jones and Fischer
“Unjustified Enrichment’s
Evolution in Mixed Legal Systems: Confronting McCarthy Retail Ltd”
(2019)
Acta
Juridica
395
and
Serfontein “What is Wrong with Modern Unjustified Enrichment
Law in South Africa” (2015) 48
De
Jure
388
at 394-401.
[34]
See
Scott above n 32 for some other ways in which the Constitution might
impact on unjustified enrichment law.
[35]
Amod v
Multilateral Motor Vehicle Accidents Fund
[1998] ZACC 11
;
1998 (4) SA 753
(CC);
1998 (10) BCLR 1207
(CC) at
para 33;
Carmichele
above n 22 at para 41.
[36]
See
Shabangu
v Land and Agricultural Development Bank of South Africa
[2019] ZACC 42
;
2020 (1) SA 305
(CC);
2020 (1) BCLR 110
(CC) at para
22. See also Quinot “Worse than Losing a Government
Tender: Winning It” (2008) 19
Stellenbosch
Law Review
101 at 119-120.
[37]
Such
an approach was suggested by Froneman J in
AllPay
Consolidated Investment Holdings (Pty) Ltd v Chief Executive
Officer, of the South African Social Security Agency
[2014] ZACC 12
;
2014 (4) SA 179
(CC);
2014 (6) BCLR 641
(CC) at
paras 29 and 67.
[38]
This
Court has on several occasions in the past refused leave to appeal
on grounds that the issues have not been adequately framed
or
argued: see, for instance,
Sali
v National Commissioner of the South African Police Service
[2014] ZACC 19
;
[2014] 9 BLLR 827
(CC);
2014 (9) BCLR 997
(CC) at
para 96;
Radio
Pretoria v Chairperson of Independent Authority of South Africa
[2004] ZACC 24
;
2005 (3) BCLR 231
(CC);
2005 (4) SA 319
(CC) at
paras 21-3;
Shaik
v Minister of Justice and Constitutional Development
[2003] ZACC 24
;
2004 (3) SA 559
(CC);
2004 (4) BCLR 333
(CC) at para
33.
[39]
In
the late 1990s, there was a well-known debate in academic journals
about the virtues or vices of judicial minimalism: see Currie
“Judicial Avoidance” (1999) 15
South
African Journal on Human Rights
138 and Roederer “Judicious Engagement: Theory, Attitude and
Community” (1999) 15
South
African Journal on Human Rights
486. This debate drew heavily on the work of Sunstein
“Foreword: Leaving Things Undecided”
(1996) 110
Harvard
Law Review
4, who launched a defense of decisional minimalism and described it
as “the phenomenon of saying no more than necessary to
justify
an outcome, and leaving as much as possible undecided”.
Without re-opening this debate, I wish to indicate
that even on the
definition of minimalism provided by Sunstein, judges must provide
the reasons that are necessarily required
to reach a decision. Prof
Stu Woolman, who sadly recently passed away, captures the strength
of the case against judicial
avoidance – and the harm it
causes to the rule of law and the Constitution – in his
seminal contribution, Woolman
The
Selfless Constitution: Experimentalism and Flourishing as
Foundations of South Africa’s Basic Law
(Juta, 2013) at 28-30. For the reasons given in the text, in
my view, the fact that the judges approve of the outcome of
the case
is not a sufficient basis for refusing leave to appeal, particularly
where the reasoning in the lower courts for reaching
that outcome is
the very basis of the appeal.
[40]
Fraser
v Naude
[1998]
ZACC 13; 1998 (11) BCLR 1357 (CC); 1999 (1) SA 1 (CC).
[41]
See
Mureinik “A Bridge to Where? Introducing the Interim Bill of
Rights” (1994) 10
South
African Journal on Human Rights
10
at 32. See also Ackermann J’s comments about the
constitutional state in
Makwanyane
n 25 at para 165.
[42]
Cohen
“The Jurisdiction of the Constitutional Court” (2021) 11
Constitutional
Court Review
1 helpfully summarises these principles at 42-3.
[43]
It
should be noted that
Fraser
had wide-ranging consequences both for the father and the child with
a minimally reasoned judgment. It has been noted that
this
judgment created a manifest injustice to the father in this case:
see Schäfer
The
Law of Access to Children
(LexisNexis, Durban 2007) 80.
[44]
This
case is thus not like
Carmichele
above n 22 where this Court found that the lower courts had failed
to consider the development of the law of delict and remitted
the
matter back to the High Court. In that case, both the legal
basis and eventual outcome had to be decided. In
this case,
remitting the matter back to the High Court would simply delay
the inevitable on which all courts that have considered
the matter
are
ad
idem
:
that Bravospan must be compensated.
[45]
There are a series of recent cases where courts have ordered the
payment of compensation to innocent contractors, who delivered
services and were not paid, in the same proceedings in which those
courts declared a contract (or administrative action) invalid:
see,
for instance,
Buffalo
City Metropolitan Municipality v Asla Construction (Pty) Ltd
[2019]
ZACC 15
;
2019 (4) SA 331
(CC);
2019 (6) BCLR 661
(CC)
at para 105;
Gijima
above
n 17
at
para 54; and
Sekoko
Mametja
Incorporated Attorneys v Fetakgomo Tubatse Local Municipality
[2022]
ZASCA 28
; 2022 JDR 0488 (SCA)
at para 15.
Where
a contractor comes to court and has been involved in corrupt
practices or does not have clean hands, different considerations
will apply. In some cases, the contractor can be non-suited to
avoid the abuse of court processes: see
Villa
Crop Protection (Pty) Ltd v Bayer Intellectual Property GMBH
[2022]
ZACC 42
;
2023 (4) BCLR 461
(CC);
2024 (1) SA 331
(CC) at paras 77-80
and 91 for the general principles in this regard. In other
circumstances, a balance will need to be
struck that is fair to all
parties, taking into account both the wrongdoing on the part of the
contractor as well as the organ
of state: see
Siyangena
Technologies (Pty) Ltd v PRASA
[2022] ZASCA 149
;
[2023] 1 All SA 74
(SCA);
2023
(2) SA 51
(SCA)
at
paras 37-46. It is interesting to consider, again, the
relationship between this rule of public law and the older
par
delictum
(equal guilt) rule in private law and its relaxation in
Jajbhay
v Cassim
1939 AD 537.
[46]
Govan
Mbeki
Municipality
v New Integrated Credit Solutions (Pty) Ltd
[2021] ZASCA 34
;
[2021] 2 All SA 700
(SCA);
2021 (4) SA 436
(SCA)
at
para 1.
[47]
Section
195(1)(a) of the Constitution.
[48]
Joseph
v City of Johannesburg
[2009] ZACC 30; 2010 (3) BCLR 212 (CC); 2010 (4) SA 55 (CC).
[49]
Section 167(6) of the Constitution.
[50]
Phumelela
Gaming & Leisure Limited v Gründlingh
[2006] ZACC 6
;
2006 (8) BCLR 883
(CC);
2007 (6) SA 350
(CC) at para
24 and
Boesak
above n 14 at para 12.
[51]
Fraser
above n 40.
[52]
Id at paras 7-10 (footnotes omitted).
[53]
In
Zantsi
v Council of State, Ciskei
[1995] ZACC 9
;
1995 (4) SA 615
(CC);
1995 (10) BCLR 1424
(CC)
(
Zantsi
)
at para 2, this Court quoted with approval the following
injunction of the United States Supreme Court in
Liverpool,
New York and Philadelphia Steamship Co v Commissioners of Emigration
113 US 33
(1885) at 39:
“
(N)ever
. . . anticipate a question of constitutional law in advance of the
necessity of deciding it; . . . never . . . formulate
a rule of
constitutional law broader than is required by the precise facts to
which it is to be applied.”
In
the three decades since
Zantsi
, this Court has adopted a less
cautious approach to constitutional adjudication. (See for
example
Jordaan v Tshwane MM
[2017] ZACC 31
;
2017 (6) SA 287
(CC);
2017 (11) BCLR 1370
(CC) at paras 6-8). However, it
remains sound policy of constitutional adjudication for this Court
not to determine new
issues of constitutional law unnecessarily,
unless it is confident that it can do so without creating
unanticipated problems
in future cases raising similar issues.
[54]
A similar point is made at [36] to [43] of the first judgment.
I do not express any views as to the scope of a properly
pleaded
constitutionally developed common law enrichment action to
accommodate contractors who find themselves in the position
of
Bravospan. I merely note that this is an issue that this Court
would want to explore before deciding to enshrine a free
standing
section 172(1)(b) remedy.
[55]
See
the first judgment at [51] and the second judgment at [63].
[56]
See
the first judgment at [52] to [53].
[57]
See
the first judgment at [1] to [31].
[58]
See the first judgment at [33].
[59]
See the first judgment at [34], [41] and [48].
[60]
See the last sentence of para [45] of the first judgment and
Fraser
above
n 40.
[61]
See the first judgment at [38] to [40] and [43].
[62]
See the first judgment at [50].
[63]
See the second judgment at [56] to [59].
[64]
See the first judgment at [44] to [45].
[65]
See the second judgment at [60] to [62].
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