Case Law[2023] ZACC 27South Africa
Koch & Kruger Brokers CC and Another v Financial Sector Conduct Authority and Others (CCT 229/22) [2023] ZACC 27; 2023 (11) BCLR 1329 (CC) (15 August 2023)
Constitutional Court of South Africa
15 August 2023
Headnotes
Summary:
Judgment
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## Koch & Kruger Brokers CC and Another v Financial Sector Conduct Authority and Others (CCT 229/22) [2023] ZACC 27; 2023 (11) BCLR 1329 (CC) (15 August 2023)
Koch & Kruger Brokers CC and Another v Financial Sector Conduct Authority and Others (CCT 229/22) [2023] ZACC 27; 2023 (11) BCLR 1329 (CC) (15 August 2023)
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sino date 15 August 2023
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case
CCT 229/22
In
the matter between
KOCH
& KRUGER BROKERS CC
First
Applicant
DEON
KRUGER
Second
Applicant
and
THE
FINANCIAL SECTOR CONDUCT AUTHORITY
First
Respondent
THE
OMBUD FOR FINANCIAL SERVICES PROVIDERS
Second
Respondent
JUSTICE
YVONNE MOKGORO N.O.
Third
Respondent
THE
FINANCIAL SERVICES TRIBUNAL
Fourth
Respondent
GEORGE
BABEN
Fifth
Respondent
LUCILLE
MIRIAM BABEN
Sixth
Respondent
Neutral
Citation:
Koch
& Kruger Brokers CC and Another v Financial Sector Conduct
Authority and Others
[2023] ZACC 27
Coram:
Zondo
CJ, Kollapen J, Madlanga J, Majiedt J, Makgoka AJ, Mathopo J,
Potterill AJ, Rogers J and Van Zyl AJ
Judgment:
Rogers
J (unanimous)
Decided
on:
15
August 2023
Summary:
Section
34 of Bill of Rights — separated issue — High Court
allegedly straying beyond separated issue —
separated
issue misconceived
ORDER
On
appeal from the High Court of South Africa, Gauteng Division,
Pretoria:
1.
Leave to appeal is refused.
2.
The applicants are ordered to pay, jointly and
severally, any costs incurred by the fifth and sixth respondents
in
making written submissions in response to this Court’s
directions dated 17 April 2023.
JUDGMENT
ROGERS J
(Zondo CJ, Kollapen J, Madlanga J, Majiedt J, Makgoka AJ, Mathopo J,
Potterill AJ, and Van Zyl AJ concurring):
[1]
This is an
application for leave to appeal a judgment of the High Court of South
Africa, Gauteng Division, Pretoria (Mabuse J).
The High Court’s
judgment was on a separated issue. Litigants and courts must
always carefully consider whether it
is convenient to adjudicate a
separated issue. If it is, the parties must formulate the
separated issue precisely.
Judges must apply their minds to the
parties’ proposal and satisfy themselves that the separation is
convenient and that
the issue has been properly defined. The
issue thus defined should be recorded in an order made by the Court
in terms of
rule 33(4) of the Uniform Rules.
[1]
The parties and the Court should also be clear on what relief will
follow if the separated issue is decided one way or the
other.
Despite judicial warnings on these matters,
[2]
they continue to be ignored. The present case, which we are
deciding on written submissions without an oral hearing, is an
object
lesson in what can go wrong.
[2]
In August 2008 and September 2009, the fifth and sixth respondents,
Mr George Baben
and his wife, Mrs Lucille Baben, invested
R780 000 in two property syndication schemes via Sharemax
Investment (Pty) Ltd (Sharemax).
They did so on the advice of
the second applicant, Mr Deon Kruger, who conducts business as a
financial adviser through the first
applicant, Koch & Kruger
Brokers CC. The Babens were to receive monthly interest, which
they did until August 2010.
In September 2010, the South
African Reserve Bank (SARB), which considered Sharemax’s
operations to be unlawful, instructed
Sharemax to stop accepting
further money and to repay all existing investors. Monthly
payments ceased and the property syndication
schemes collapsed.
The Babens, an elderly retired couple, are among the many people who
lost money in Sharemax.
[3]
In December
2012, the Babens lodged a complaint against the applicants with the
second respondent, the Ombud for Financial Services
Providers, who is
appointed and functions in terms of Chapter VI of the Financial
Advisory and Intermediary Services Act
[3]
(FAIS Act). The Babens alleged that the applicants had wrongly
convinced them that the investment in Sharemax was sound and
risk-free and that all regulatory requirements had been met; and that
the applicants had not supplied them with documentation to
enable
them to study the property syndication schemes.
[4]
In terms of section 27(5) of the FAIS Act, the Ombud may follow and
implement
any procedure he or she deems appropriate. In terms
of section 28(1)(b), the Ombud may, in upholding a complaint, award
the
complainant “an amount as fair compensation for any
financial prejudice or damage suffered”. In the course of
the Ombud’s investigation, the applicants supplied information
and documents to the Ombud in response to requests from the
latter.
No oral hearing took place.
[5]
On 12 October 2018, the Ombud issued his determination. He
upheld the
Babens’ complaint and awarded them compensation of
R780 000 with interest at 10% per annum from the date of
determination
to date of payment. The Ombud found that the
Babens never received the Sharemax prospectus; no financial needs
analysis was
done; the Sharemax product was unsuitable and high-risk;
the applicants’ advice that the investment would be safe had
been
materially flawed and negligent; and that the Babens’ loss
was of the type that flowed naturally from the applicants’
breach of contract. The applicants contested, and still
contest, all these findings, asserting that they ignore the detailed
responses and documentation the applicants supplied to the Ombud.
[6]
Section 219
of the Financial Sector Regulation Act
[4]
(FSR Act) permits a person who is aggrieved by a determination of the
Ombud to apply to the fourth respondent, the Financial Services
Tribunal (Tribunal), for a reconsideration of the determination.
[5]
This is subject to section 28(5)(b) of the FAIS Act, which provides
that an application for reconsideration may only be pursued
with
leave granted by the Ombud or, if the Ombud refuses leave, by the
Chairperson of the Tribunal (Chairperson).
[6]
The Chairperson at the relevant time was the third respondent,
retired Justice Yvonne Mokgoro.
[7]
The applicants applied to the Ombud for leave to have the matter
reconsidered
by the Tribunal. The Ombud refused leave.
They applied to the Chairperson for leave, which she refused in a
decision
delivered on 12 April 2019. According to the
applicants, the Chairperson’s decision noted that the issues
she had considered
were a complaint of bias against the Ombud,
causation and the applicants’ duty to the Babens, which was to
ensure that they
could make an informed decision, in particular with
reference to the risks of the Sharemax product. The applicants
complain
that the Chairperson summarily concluded, without
elaborating on these issues or providing reasons, that no basis
existed to fault
the Ombud’s conclusions and that there was no
reasonable prospect that the Tribunal would decide the matter
differently.
[8]
The
applicants launched review proceedings in the High Court. They
sought the review and setting aside of the Ombud’s
determination and a substituted decision dismissing the Babens’
complaint. In the alternative, they sought the review
and
setting aside of the Chairperson’s dismissal of their
application for leave to pursue reconsideration in the Tribunal.
The review application was based on various grounds set out in
section 6 of the Promotion of Administrative Justice Act
[7]
(PAJA). The applicants summarise those grounds as being that
the Ombud and the Chairperson were biased or reasonably suspected
of
bias; that their actions were procedurally unfair; that their
decisions were materially influenced by an error of law; that
their
decisions were taken for ulterior purposes; that irrelevant
considerations were taken into account and relevant considerations
ignored; that they took their decisions in bad faith and acted
arbitrarily and capriciously; and that their decisions were
unconstitutional
and unlawful.
[9]
In advance of the High Court hearing, counsel for the applicants
approached
counsel for the Ombud and the Babens with a proposal that
the High Court be asked to determine, as a preliminary issue, whether
the investigation by the Ombud of the Babens’ complaint
justified the Ombud’s determination or the Chairperson’s
ruling that the applicants were the factual and legal cause of the
Babens’ loss. In their written submissions, the
applicants say that it has not been possible to establish how the
point in limine was formulated when orally conveyed to Mabuse
J.
[10]
In his judgment, Mabuse J recorded that he had been asked to
determine “
whether the loss suffered by the
[Babens], under the circumstances set out in the overview, was caused
by the breach of agreement
occasioned by the applicants, as it was
contended by the [Babens], or by the intervention of the [SARB], as
it was contended by
the applicants”. The “overview”
was set out thus in the preceding paragraph of the judgment:
“
Through
the advice of the applicants, who acted in their capacities as the
Financial Service Providers, the [Babens] invested their
money in
[Sharemax]. The money was used by Sharemax for the construction
of The Villa Retail Park . . ., which
was promoted by
Sharemax. The [SARB] regarded such investments as taking
deposits. It issued a directive in terms of
which it ordered
Sharemax to refund all the money Sharemax had received from investors
to the investors. At the material
of the directive
[sic]
,
Sharemax did not have any money to pay back to the investors. It
could therefore not refund the investors their money. The
scheme collapsed and the [Babens] lost their investments.”
[11]
It appears from the applicants’ submissions that they are
content with this formulation of the
separated issue. They
submit, however, that it is clear from the formulation that the
separated issue was confined to causation
and that, for purposes of
determining that issue, the High Court was required to accept,
without adjudicating, the Babens’
version on breach of
mandate. They contend that the applicants’ alleged
negligence would only have become an issue
for adjudication if the
High Court ruled that the SARB was not the cause of the Babens’
loss.
[12]
The matter
was argued on 18 August 2021. The High Court delivered judgment
on 3 November 2021.
[8]
Under a heading, “The intervention of the [SARB]”, the
Court recorded the applicants’ contention that the
Babens had
lost their money because of the SARB’s intervention. The
applicants invoked
Symons
N.O.
[9]
in support of this contention, where Ploos van Amstel J found that
the cause of the investor’s loss had been the intervention
of
the SARB, not the breach by the financial adviser.
[13]
The High
Court continued that in its view the SARB’s intervention was
one of the risks which the applicants should have investigated.
The applicants failed to thoroughly investigate Sharemax, which was
taking deposits from investors. The applicants should
have
investigated whether Sharemax was entitled to do so. This
included proof of registration in terms of section 11 of the
Banks
Act.
[10]
The High Court
referred, in that regard, to another Sharemax case,
Oosthuizen
,
[11]
where the investor’s case succeeded, and distinguished
Symons
N.O.
[14]
The Babens, according to the High Court, were not given a chance to
study documents and relied exclusively
on the applicants’
advice and representations. The probabilities were that the
documents signed by the Babens were
only given to them on the day
they signed and without their having fully read and understood the
documents. There was, said
the High Court, a negligent failure
by the applicants to carefully consider the risk profile of the
Sharemax investment, in circumstances
where the Babens required a
low-risk investment.
[15]
Under a new heading, “The case for the [Babens]”, the
Court said that the Babens’
case was based on an alleged
contract with the applicants, the alleged breach of that contract and
a contention that their damages
flowed naturally from the breach.
Because those damages flowed naturally, foreseeability was implied by
law, and there had
been no need for the Ombud to investigate whether
Sharemax’s complaint should have been anticipated or foreseen
by the applicants.
The crucial consideration was that the funds
were placed in a high-risk investment.
[16]
As against this, the High Court noted that the applicants argued
that, until the SARB’s intervention
in September 2010, the
Babens and all other investors had received their monthly interest.
At the time the investments were
made in 2008 and 2009, Mr Kruger
could not foresee that the SARB would bring the whole Sharemax
syndication scheme to a halt.
[17]
The High Court concluded that “the applicants were negligent
when they advised the Babens to
invest their money in Sharemax”
and that they “failed to exercise the degree of skill, care,
and diligence which one
is entitled to expect from a financial
service provider”. The substantive order made by the High
Court was a “finding”
that “the loss of investments
suffered by the [Babens] is attributed to the breach of contract by
the applicants”.
[18]
The applicants’ applications for leave to appeal and
reconsideration failed in the High Court
and the Supreme Court of
Appeal. Their application was filed in this Court on 17 August
2022. The Babens’ attorneys
notified the Registrar that,
due to lack of funds, the Babens would abide this Court’s
decision. In other correspondence,
the Babens’ attorneys
said that their clients were 81 and 74 years old, Mr Baben was
seriously ill, they had been without
their pension money for the last
ten years and their reserves had been depleted.
[19]
On 17 April
2023, the Chief Justice issued directions, calling for submissions on
two broad questions: (a) the exact formulation
of the separated
issue which the High Court was asked to decide and
whether argument went beyond that issue; and (b) the
relevance
of the separated issue to the review application.
[12]
The Babens’ legal representatives were invited but not required
to file submissions. In the event, submissions
were received
from the applicants and from the Babens.
[20]
The submissions show that the separated issue was never precisely
defined. The Babens do not
accept that the separated issue was
defined in the terms initially proposed by the applicants in advance
of the hearing.
It appears that the High Court was not invited
to make, and did not make, an order in terms of rule 33(4), instead
acceding informally
to a request to hear argument on a separated
issue conveyed orally by counsel.
[21]
According to the applicants’ submissions, the question of
negligence did not form part of the
separated issue and was not
argued. They complain that the High Court decided the
issue of negligence without considering
any of the evidential
material put up in their affidavits and without hearing the
applicants’ counsel on that issue.
In response to a
question in this Court’s directions as to what order should be
made if this Court finds that the High
Court strayed beyond the
separated issue, the applicants contend that no further evidence is
needed on the question of causation.
This Court can determine
the issue and substitute the Ombud’s decision with one
dismissing the Babens’ complaint.
[22]
According to the Babens, the separated issue incorporated the
question of negligence in the context
of the Babens’ allegation
of a breach of contract. They submit that the issue of breach
of duty of care and negligence
are inextricably linked to the
question of foreseeability. They contend that their damages
flowed naturally from the breach.
They say that the question of
breach of mandate and negligence were fully argued. If,
however, this Court decides otherwise,
the matter should be remitted
to the High Court to determine the question of negligence.
[23]
In their founding papers in this Court, the applicants invoke our
constitutional and general jurisdiction.
They say that, by
dealing with the whole case instead of the separated issue, the High
Court violated the applicants’ right
in terms of section 34 of
the Bill of Rights to have a dispute resolved by the application of
law in a fair public hearing.
They also complain that, to the
extent that the High Court was entitled to go into the question of
negligence, the High Court failed
to apply binding legal principles
to the facts in answering that question, again violating their
section 34 rights. They
also assert that there is an arguable
point of law of general public importance arising from the conflict
which now exists between
the High Court’s judgment in the
present case and
Symons N.O.
[24]
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.
As to the High
Court’s alleged failure to apply binding legal principles,
closer analysis shows that the applicants’
real complaint is
that the evidence did not justify the High Court’s finding,
having regard in particular to the absence
of expert evidence.
Such a complaint does not without more clothe this Court with
jurisdiction.
[13]
The
applicants do not point to any legal principles which were misstated
by the High Court.
[25]
The differing conclusions reached in this case and
Symons N.O.
do not point to the existence of an arguable point of law. Even
prior to the High Court’s judgment in the present case,
there
existed differing outcomes in Sharemax litigation, including the
judgments in
Oosthuizen
(where the investor succeeded) and
Symons N.O
. (where the investor failed).
Oosthuizen
and
Symons N.O.
were actions for damages.
Unsurprisingly, the judgments, whether right or wrong, were based on
the differing evidence adduced
in the two cases. To the extent
that the merits of the Babens’ claim are relevant to the review
proceedings, those
merits turn on the evidence adduced on affidavit
in the High Court.
[26]
Although in one respect the pleaded section 34 case engages our
jurisdiction, the Court must still
decide whether it is in the
interests of justice to grant leave to appeal. Prospects of
success are relevant but are not
the only consideration.
[27]
The lack of precision in the formulation of the separated issue was
most unsatisfactory. No definitive
contemporaneous written
recordal of it exists. The parties appear to be content,
however, to accept the High Court’s
formulation: Was the
Babens’ loss occasioned by the applicants’ alleged breach
of contract or by the intervention of
the SARB? I am willing to
accept that this formulation required the High Court to assume,
without deciding, that the Babens’
version relating to the
alleged breach was correct. Although the Babens submit in this
Court that breach of mandate and negligence
were argued, they accept
the High Court’s formulation. If breach of mandate and
negligence were argued, therefore,
it was presumably with a view to
explaining to the High Court what the Babens’ version was, so
that this version would form
the assumed basis on which to decide the
causation issue.
[28]
The High Court’s judgment contains passages which could be read
as adjudicating the questions
of breach of mandate and negligence.
However, having regard to the way in which the High Court framed the
separated issue
and formulated its finding in the order, the binding
part of the judgment must be regarded as confined to the question of
causation.
Other “findings” by the High Court
should be understood as explaining the Babens’ version on
breach and negligence,
a version which had to be assumed correct for
purposes of causation.
[29]
However,
this is all by the way, because the separation on which the parties
and the High Court embarked was utterly misconceived.
I pass
over the question whether a separation of issues is permissible in
motion proceedings.
[14]
Assuming that a separation was procedurally permissible, the parties
in the High Court seem to have overlooked that the case
was a review
directed at decisions of the Ombud and the Chairperson, not an action
for damages by the Babens against the applicants.
Even in an
action for damages, I doubt that a separation would have been
appropriate, because there were contested facts about
the mandate,
the interactions between the Babens and Mr Kruger, the legality of
the Sharemax product and its riskiness. Findings
on those
contested matters could be expected to have a bearing on whether the
SARB’s action was an intervening event breaking
the chain of
causation between the alleged negligent advice and the Babens’
loss.
[30]
I repeat, though, that the case before the High Court was not an
action for damages but a PAJA review.
The submissions in this
Court suggest that the parties remain confused as to how the
separated issue was relevant to the grounds
of review. At the
risk of stating the obvious, the Ombud had the statutory
jurisdiction, and thus the statutory duty, to
determine the Babens’
complaint. Both the Babens and the applicants were entitled to
a proper adjudication of the complaint
by the Ombud. Provided,
however, that the Ombud determined the complaint without committing a
review irregularity, the Ombud’s
determination on the merits
was binding, subject only to reconsideration by the Tribunal.
The complaint required the Ombud
to determine whether the applicants
breached their mandate and whether the Babens’ loss was
attributable to that breach.
It was the Ombud’s finding
on these matters that was definitive.
[31]
The applicants would be entitled to argue, in the High Court, that
the Ombud’s finding on these
matters should be set aside
because of one or more review irregularities. They could argue,
for example, that the Ombud’s
determination on negligence or
causation ignored the applicants’ evidence or was vitiated by
error of law. If such
a review succeeded, the matter would –
absent exceptional circumstances – be remitted to the Ombud for
determination
afresh, because the statutory scheme is for the Ombud,
not the High Court, to determine the merits of the complaint.
[32]
It follows that a finding by the High Court that an assumed breach of
contract by the applicants did
or did not cause the Babens’
loss would be irrelevant, because it is not the High Court’s
opinion on that question
that matters. If the High Court
concluded, as it did, that the loss was caused by the applicants’
assumed breach, but
if the Ombud did not reach a proper decision on
that question, the High Court’s view could not save the Ombud’s
determination
from being impeached on review. Conversely, if
the High Court found, in accordance with the applicants’
contentions,
that their assumed breach did not cause the Babens loss,
that would not lead to the conclusion that the Ombud’s
determination
should be set aside on review. This is all
elementary, and flows from an appreciation that it was the Ombud, not
the High
Court, that was vested with the power to determine the
merits of the complaint.
[33]
So here we are, nearly two years after the misconceived preliminary
issue was argued, and all the parties
have to show for it is a
judgment which does not resolve any ground of review. I am
doubtful that the High Court’s
judgment can be deployed in any
useful way in determining the review. All the issues in the
review still remain to be argued
and determined.
[34]
In the circumstances, it is self-evidently not in the interests of
justice to grant leave to appeal,
even if the applicants had
reasonable prospects of showing that the High Court’s
determination on the causation issue was
wrong, a matter on which I
express no opinion. Our decision on the causation issue would
be no more useful in the review
proceedings than the High Court’s.
[35]
Although the High Court should never have been asked (and should
never have agreed) to decide the separated
issue, the applicants were
the parties who made the proposal, and both sides misguidedly agreed
to ask the High Court to decide
it. I do not think that justice
requires us, in the circumstances, to set aside the High Court’s
judgment. If
the judgment has proved to be a costly
irrelevancy, the applicants have only themselves to blame.
[36]
It follows that the application for leave to appeal must be refused.
To the extent that the Babens
have incurred costs in responding to
the Court’s request for submissions, the applicants must pay
those costs. I trust
that the parties will now proceed without
delay to argue the review in the High Court. The matter would
not have to return
to Mabuse J; it will be for the Judge-President to
allocate the review for hearing.
Order
[37]
The following order is made:
1.
Leave to appeal is refused.
2.
The applicants are ordered to pay, jointly and severally, any costs
incurred
by the fifth and sixth respondents in making written
submissions in response to this Court’s directions dated 17
April 2023.
For
the Applicants:
HF
Geyer instructed by Bieldermans
Incorporated
For
the Fifth and Sixth Respondents:
Cronje,
De Waal Skosana Incorporated
[1]
Rule 33(4) states:
“
If,
in any pending action, it appears to the court mero motu that there
is a question of law or fact which may conveniently be
decided
either before any evidence is led or separately from any other
question, the court may make an order directing the disposal
of such
question in such manner as it may deem fit and may order that all
further proceedings be stayed until such question has
been disposed
of and the court shall on the application of any party make such
order unless it appears that the questions cannot
conveniently be
decided separately.”
[2]
For three recent examples, see
Osman
Tyres and Spares CC v ADT Security (Pty) Ltd
[2020] ZASCA 33
;
[2020] 3 All SA 73
(SCA) at paras 12-3,
Petropulos
v Dias
[2020] ZASCA 53
;
2020 (5) SA 63
(SCA);
[2020] 3 All SA 358
(SCA) at
paras 67-9 and
Iveco
South Africa (Pty) Ltd v Centurion Bus Manufacturers (Pty) Ltd
[2020] ZASCA 58
at paras 25-31. The Supreme Court has
frequently quoted the following passage from Nugent JA’s
judgment in
Denel
(Pty) Ltd v Vorster
[2004] ZASCA 4
at para 3:
“
Before
turning to the substance of the appeal it is appropriate to make a
few remarks about separating issues. Rule 33(4) of the
Uniform Rules
– which entitles a court to try issues separately in
appropriate circumstances – is aimed at facilitating
the
convenient and expeditious disposal of litigation. It should
not be assumed that that result is always achieved by
separating the
issues. In many cases, once properly considered, the issues
will be found to be inextricably linked even
though at first sight
they might appear to be discrete. And even where the issues
are discrete the expeditious disposal
of the litigation is often
best served by ventilating all the issues at one hearing,
particularly where there is more than one
issue that might be
readily dispositive of the matter. It is only after careful
thought has been given to the anticipated
course of the litigation
as a whole that it will be possible properly to determine whether it
is convenient to try an issue separately.
But where the trial
court is satisfied that it is proper to make such an order –
and in all cases it must be so satisfied
before it does so –
it is the duty of that court to ensure that the issues to be tried
are clearly circumscribed in its
order so as to avoid confusion.
The ambit of terms like the ‘merits’ and the
‘quantum’ is often
thought by all the parties to be
self-evident at the outset of a trial but in my experience it is
only in the simplest of cases
that the initial consensus survives.
Both when making rulings in terms of rule 33(4) and when
issuing its orders a trial
court should ensure that the issues are
circumscribed with clarity and precision.”
[3]
37 of 2001.
[4]
9 of 2017.
[5]
Section 218 sets out the decisions which are subject to applications
for reconsideration in terms of section 219. In terms
of the
definition of “decision” in section 218, these include a
“decision of a statutory ombud in terms of
a financial sector
law in relation to a specific complaint by a person”, and such
an ombud is correspondingly defined as
a “decision-maker”.
Section 20A of the FAIS Act provides that the scheme in relation to
complaints set out in Part
I of Chapter VI is a statutory ombud
scheme for purposes of the FSR Act.
[6]
The Tribunal’s database on SAFLII includes ten reconsideration
decisions of the Tribunal in determinations by the Ombud
in favour
of clients in Sharemax cases. In seven instances the brokers
succeeded, in three they failed.
[7]
3 of 2000.
[8]
Koch &
Kruger Brokers CC v Financial Sector Conduct Authority
[2021] ZAGPPHC 755.
[9]
Symons
N.O. v Rob Roy Investments CC t/a
Assetsure
[2018] ZAKZPHC 71; 2019 (4) SA 112 (KZP).
[10]
94
of 1990.
[11]
Oosthuizen
v Castro
[2017] ZAFSHC 163; 2018 (2) SA 529 (FB); [2017] 4 All SA 876 (FB).
[12]
The questions to be addressed were set out thus in the directions:
“
(a)
In regard to the separated issue:
(i)
What was the exact formulation of the issue which the High Court was
asked to determine in limine?
(ii)
Did that issue include the question whether the applicants breached
their duties to the fifth and sixth respondents and in
particular
whether the applicants acted negligently?
(iii)
Was the question of breach of mandate and negligence fully argued as
part of the in limine issue?
(iv)
If the question of breach of mandate and negligence were not part of
the issue to be decided in limine, and if this Court
were to grant
leave to appeal, what would the appropriate order on appeal be?
(b)
The proceedings in the High Court took the form of a judicial
review, in terms of
section 6
of the
Promotion of Administrative
Justice Act 3 of 2000
read with section 235 of the Financial Sector
Regulation Act 9 of 2017, of decisions taken by the second and third
respondents.
That being so:
(i)
To what ground of review did the separated issue relate?
(ii)
Why would the High Court's own view on the merits of causation be
decisive of any issue in the review?”
[13]
Loureiro
v Imvula Quality Protection (Pty) Ltd
[2014] ZACC 4
;
2014 (3) SA 394
(CC);
2014 (5) BCLR 511
(CC) at para
33;
Booysen
v Minister of Safety and Security
[2018]
ZACC 18
;
2018 (6) SA 1
(CC);
2018 (9) BCLR 1029
(CC) at para 50 and
University
of Johannesburg v Auckland Park Theological Seminar
[2021] ZACC 13
;
2021 (6) SA 1
(CC);
2021 (8) BCLR 807
(CC) at para
49.
[14]
This was questioned in one of the judgments in
Ascendis
Animal Health (Pty) Limited v Merck Sharpe Dohme Corporation
[2019] ZACC 41
;
2020 (1) SA 327
(CC);
2020 (1) BCLR 1
(CC) at para
77, on the basis that rule 33(4) only applies to actions.
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