Case Law[2022] ZACC 42South Africa
Villa Crop Protection (Pty) Ltd v Bayer Intellectual Property GmbH (CCT 237/21) [2022] ZACC 42; 2023 (4) BCLR 461 (CC); 2024 (1) SA 331 (CC) (8 December 2022)
Constitutional Court of South Africa
8 December 2022
Headnotes
Summary: Amendment of Pleadings — misapplication of applicable test — application of incorrect test —introduction of the special plea of unclean hands — section 61(1)(g) of the Patents Act
Judgment
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## Villa Crop Protection (Pty) Ltd v Bayer Intellectual Property GmbH (CCT 237/21) [2022] ZACC 42; 2023 (4) BCLR 461 (CC); 2024 (1) SA 331 (CC) (8 December 2022)
Villa Crop Protection (Pty) Ltd v Bayer Intellectual Property GmbH (CCT 237/21) [2022] ZACC 42; 2023 (4) BCLR 461 (CC); 2024 (1) SA 331 (CC) (8 December 2022)
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sino date 8 December 2022
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case
CCT 237/21
In
the matter between:
VILLA
CROP PROTECTION (PTY)
LIMITED
Applicant
and
BAYER
INTELLECTUAL PROPERTY
GmbH
Respondent
Neutral citation:
Villa Crop Protection (Pty) Ltd v Bayer Intellectual Property GmbH
[2022] ZACC 42
Coram:
Kollapen
J, Madlanga J, Majiedt J, Mathopo J, Mhlantla J,
Mlambo AJ, Theron J, Tshiqi J and Unterhalter AJ
Judgments:
Mathopo J (minority): [1] to [53]
Unterhalter
AJ (majority): [54] to [93]
Heard
on:
26 May 2022
Decided
on:
8 December 2022
Summary:
Amendment of Pleadings — misapplication of applicable test
— application of incorrect test —introduction of the
special plea of unclean hands — section 61(1)(g) of the Patents
Act
ORDER
On
appeal from the High Court of South Africa, Gauteng Division,
Pretoria:
1.
The application for leave to appeal is granted.
2.
The appeal is upheld with costs, including the costs of two counsel.
3.
The order of the Commissioner of Patents is set aside and in its
place Villa Crop
is granted leave to amend by the introduction
of its “special plea in limine”.
JUDGMENT
MATHOPO J
(Mlambo AJ and Tshiqi J concurring):
Introduction
[1]
This is an application for leave to appeal against the
judgment and order of the Court of the Commissioner of Patents
in the
High Court of South Africa, Gauteng Division, Pretoria
(Court of Patents). It relates to an order granted by that Court
refusing the applicant, Villa Crop Protection (Pty) Ltd (Villa Crop),
leave to amend its plea in patent infringement proceedings
instituted
by the respondent, Bayer Intellectual Property GmbH (Bayer) as the
plaintiff, against Villa Crop as the defendant.
[2]
At
the heart of this application is whether the Court of Patents
correctly exercised its discretion when it refused Villa Crop
leave to amend its particulars of claim when it sought to introduce a
special common law defence of unclean hands.
[1]
Villa Crop contends that in breach of its duty as a patentee,
Bayer made statements in European countries (ECs) that
are in
direct contradiction to the case advanced in the infringement
proceedings.
Background
[3]
Bayer
is a registered proprietor of a South African patent number
2005/00230, (2005 patent) in respect of a chemical substance
referred to as spirotetramat, an active ingredient in a plant
protection product sold by it in South Africa under the
commercial
name of Movento.
[2]
Villa Crop is a proprietor of a product named Tivoli 240 SC
(Tivoli). Movento competes with Villa Crop’s
Tivoli which
also contains spirotetramat. Spirotetramat is a chemical compound
formed by different elements that bond together
in a fixed ratio
relative to each other. The ratio of the elements relative to each
other is usually expressed by a chemical formula.
The connectivity of
atoms of the various elements in a substance is usually depicted by a
structural formula that can be represented
in more ways than one.
[3]
[4]
Bayer instituted infringement proceedings in the Court of
Patents seeking protection for its compound spirotetramat. In those
proceedings,
Bayer sought to protect Movento from competition against
Villa Crop’s product, Tivoli. Bayer alleged that it had
suffered
damages as a result of the infringement of its patent by
Villa Crop.
[5]
Villa Crop
disputed the validity of the 2005 patent and was adamant that it
could not be infringed. Villa Crop claimed
that the patent is
liable to be revoked in terms of sections 61(1)(c),
[4]
25(1),
[5]
(6)
[6]
and (7)
[7]
of the Patents Act
[8]
in that the invention by Bayer is not new because it formed part of
the state of the art immediately before the priority date of
the
invention and that the patentee (Bayer) knew, alternatively,
reasonably ought to have known that the patent is not new.
[9]
[6]
In support of the allegation that Bayer knew or ought to have
reasonably known at the time that the statements or representations
were false, Villa Crop made reference to European patent number
O 915 846 (the basic patent). It also made reference
to the fact
that Bayer had, shortly after the making of the declaration, applied
for the relevant regulatory approval in various
ECs permitting the
commercial product containing spirotetramat to enter the market.
[7]
Villa Crop submitted that the chemical composition,
chemical structure and geometry of the compound disclosed in the
South
African patent number 1997/06915 (referred to as
Lieb et al
)
is exactly the same as the chemical composition, structure and
geometry of the compound spirotetramat and is equivalent to the
basic
patent. As a result, Villa Crop claimed an order revoking the
2005 patent.
Litigation history
Application for leave
to amend in the Court of Patents
[8]
Following the filing of their plea and counterclaim for
revocation, Villa Crop filed an application for leave to amend
its
particulars. Villa Crop sought to introduce a special plea based
on the principle of unclean hands and abuse of process by Bayer
of
its duty of good faith as a patentee.
[9]
Pruned to its essentials, the special plea amounted to this:
(a)
When Bayer applied for a Supplementary Protection Certificate (SPC)
in relation to spirotetramat, it
made certain representations during
the proceedings in the ECs which demonstrate that spirotetramat has
been in the public domain
since 1997. This means that it had been
described and disclosed well before the priority date of the 2005
patent. If this is so,
based on these representations, it can never
be said that Bayer’s 2005 patent was a novel disclosure. It is
on this basis
that Villa Crop argued that Bayer should not be
permitted to advance an evidently dishonest case.
(b)
Villa Crop argued that Bayer cannot contend in the infringement
proceedings that spirotetramat
had not been disclosed before. This,
according to Villa Crop, constitutes an abuse of the South
African patent system and
court processes.
[10]
In essence, the special plea sought to have the action
dismissed. In response, Bayer objected to the proposed amendment on
the following
grounds:
(a)
The special plea would enjoin the court to determine the
validity of the patent, an issue which
can only be determined after a
finding has been made that Bayer’s 2005 patent lacked novelty.
(b)
The proposed special plea is founded on allegations concerning facts
and circumstances relating to patent
laws and procedures of foreign
jurisdictions, dating back to eight years after the priority date of
the patent. The facts and circumstances
are irrelevant to the
validity of the patent.
(c)
The amendment sought is not
bona fide
but an abuse of process
calculated to delay the hearing of the trial causing prejudice
to Bayer.
[11]
The Court of Patents declined the proposed amendment. It took
the view that on Villa Crop’s approach, the Court
would be required to make a factual comparison of what was disclosed
in ECs regarding spirotetramat compared with what Bayer was
advancing
in the current proceedings. It reasoned that—
“
for this exercise
to yield a reliable and accurate finding a court will be required to
undertake an in-depth enquiry into the manner
in which each of the
various foreign jurisdictions deal with SPC applications in
accordance with, not only the sovereign patent
laws applicable in
each jurisdiction, but in accordance with commercial and other policy
considerations of an applicant for a patent.”
[10]
[12]
The
Court of Patents declined to exercise its discretion in favour of
Villa Crop. To this end, it relied on the reasoning of
this
Court in
Affordable Medicines
[11]
which held:
“
The principles
governing the granting or refusal of an amendment have been set out
in a number of cases. There is a useful collection
of these cases and
the governing principles in
Commercial
Union Assurance Co Ltd v Waymark N.O
.
The practical rule that emerges from these cases is that amendments
will always be allowed unless the amendment is
mala
fide
(made
in bad faith) or unless the amendment will cause an injustice to the
other side which cannot be cured by an appropriate order
for costs,
or ‘unless the parties cannot be put back for the purposes of
justice in the same position as they were when the
pleading which it
is sought to amend was filed’. These principles apply equally
to a notice of motion. The question in each
case, therefore, is, what
do the interests of justice demand?”
[12]
[13]
The Court of Patents concluded that it would not be in the
interests of justice to embark upon a protracted enquiry particularly
since the main issue between the parties, namely: the validity of the
South African patent was still a live issue and thus left
the
question of unclean hands open. It expressed itself as follows:
“
This is a
complicated enquiry and would, in my view require expert and
technical evidence to explain to a court the law and process
applicable in the different jurisdictions in respect of the
applications for SPCs. This will, in my view, inevitably result in
the trial to be dragged out unnecessarily. Even if such a conclusion
is reached, the main issue in dispute, namely the validity
of the
South African patent, will remain alive. The validity of the 2005
patent is not for Bayer to prove, it is for Villa Crop
to do
so.”
[13]
[14]
Dissatisfied with the outcome, Villa Crop unsuccessfully
applied for leave to appeal to the Court of Patents. A further appeal
to the Supreme Court of Appeal suffered the same fate. So did its
subsequent application for reconsideration before the President
of
the Supreme Court of Appeal. Villa Crop now approaches this Court for
leave to appeal.
In this Court
Applicant’s
submissions
[15]
Before us, Villa Crop principally bases its argument on
three grounds. It contends that the Court of Patents incorrectly
applied the test to determine whether leave to amend should be
granted. It argues that the provisions of rule 28 of the
Uniform Rules
of Court which provides that amendments should
generally be allowed unless good cause is shown, were not properly
considered. To
this end, it submits that the question whether the
Court of Patents erred in refusing its application for leave to amend
engages
the jurisdiction of this Court in terms of section 167(3)(b)
of the Constitution. Villa Crop maintains this is so because
the
refusal by the Court of Patents is connected to its right of access
to courts as enshrined under section 34 of the Constitution.
It specifically contends that its right to a fair hearing including a
right to raise issues of honesty and integrity in the application
for
and maintenance of a patent as well as in patent litigation, are
matters of public interest.
[16]
Villa Crop
argues that the Court of Patents unjustifiably limited its right by
refusing leave to amend and in so doing denied
it the opportunity to
raise a separate self-standing common law defence of unclean hands.
In a nutshell, Villa Crop says it
would suffer injustice if
barred from raising the special defence. In support of its
proposition, it relied on the remarks by Khampepe
J in
Ascendis
[14]
to the effect that:
“
It is
well-established that
res
judicata
implicates
the rights contained in section 34. However, the High Court, as
will become evident later, extended the application
of
res judicata
and
as a result, adversely affected the right by denying the applicant an
opportunity to raise a defence, which potentially
taints the fairness
element of the hearing. This
prima
facie
extension
of
res
judicata
interferes with the applicant’s constitutional right to have
the merits of the separate, undecided causes of action heard
in Court
and thus gives this Court jurisdiction to decide the matter.”
[15]
[17]
Villa Crop also submits that the matter raises arguable
points of law of general public importance. It states that the
effect of granting it leave to amend would go beyond the interests of
the parties in the matter. In this regard, it maintains that
this Court would be sending a strong message to all patent
holders that they cannot approach courts to enforce patent rights
if
those rights were obtained dishonestly. This it states, is important
because the South African patent system does not have
a system
of assessing the validity of patents upon application.
[18]
Asserting
its right to introduce the special defence, Villa Crop also
contends that when Bayer applied for the SPC in ECs,
it represented
that spirotetramat was protected by its basic patent. However, in the
main action in South Africa, Bayer presented
spirotetramat as a novel
invention in its 2005 patent. Villa Crop submits that this is
contradictory as spirotetramat could
not have been a novel invention
when Bayer filed its 2005 patent. Consequently, Villa Crop
argues that the special plea of
unclean hands is directed
towards misrepresentations made by Bayer and if found that there was
dishonesty or
mala
fide
conduct, Bayer should be barred from pursuing the action against it.
It called in aid
Deton.
[16]
[19]
Lastly,
Villa Crop submits that the doctrine of unclean hands is part of
our common law, and it is in the interests of justice
that it be
granted leave to amend. Supporting its argument, it relied on
Zyp
Products
[17]
and
Tullen
Industries
[18]
where the courts emphasised that dishonesty must be proven by the
party alleging it, in order to rely on the doctrine. It also
argues
that the special plea of unclean hands is potentially
dispositive of the trial and in the event of it being successful,
it
would save the courts valuable time and resources.
Respondent’s
submissions
[20]
Bayer submits that the matter does not raise a constitutional
issue and nor does it raise an arguable point of law of general
public
importance and as a result, leave to appeal should not be
granted. It also contends that it is not in the interests of justice
for leave to appeal to be granted. In response to Villa Crop’s
submissions that this Court has jurisdiction, Bayer
submits that
this is not an issue of public importance. It argues that
Villa Crop’s attempt to clothe the issue as a
constitutional issue is misconceived. Bayer urges us to accept that
this case is simply about a misapplication of the legal test
which
according to a long line of cases in this Court, does not engage
the jurisdiction of this Court.
[21]
In addition, Bayer emphasises that Villa Crop’s
reliance on section 34 and
Ascendis
to assert that this
case raises a constitutional issue is misplaced. Bayer submits that
Ascendis
is distinguishable in that it dealt with the issue of
res judicata
that implicated the rights contained in
section 34 which provided this Court with jurisdiction to decide the
matter whereas that
is not the case in this matter.
[22]
Bayer submits that there are no reasonable prospects of
success that a court would find that the doctrine of unclean hands is
applicable
in the field of patent law or that it can find application
solely based on the allegations made by Villa Crop. Furthermore,
Bayer argues that Villa Crop’s reliance on
Deton
to
enforce the doctrine of unclean hands is equally misconceived because
that matter dealt with an amendment of a patent and not
pleadings.
[23]
Bayer
further contends that Villa Crop should not be granted leave to
amend because the proposed special plea would destabilise
the
existing patent system which only the Legislature can reform or
amend. In response to Villa Crop’s submission that
if the
appeal were to be successful and an amendment granted, Bayer states
that it will not be the end of the matter as the following
issues
would still require adjudication: (a) the validity in law, in
the context of patent litigation; of the special plea;
(b) the
factual matrix of the special plea and; (c) Villa Crop’s
counterclaim for the revocation of the patent,
which includes
reliance on lack of novelty and material grounds for the revocation
provided for in terms of section 61(1)(g)
[19]
of the Patents Act.
Issues
Jurisdiction and leave
to appeal
[24]
In
order for this Court to entertain this matter, Villa Crop must
show that the matter is a constitutional matter or that it
raises an
arguable point of law of general public importance.
[20]
Additionally, it must demonstrate that it is in the interests of
justice for leave to appeal to be granted.
[21]
Villa Crop advances three propositions in support of its
argument that this matter engages jurisdiction of this Court.
I
deal with these below.
[25]
First, Villa Crop argues that the matter raises a
constitutional issue as it implicates the right of access to courts
in terms
of section 34 of the Constitution. In support of its
argument, it relies on this Court’s judgment in
Ascendis
.
In essence, Villa Crop contends that by refusing leave to
appeal, the Court of Patents deprived it of its right to defend
itself in the patent infringement proceedings. It specifically
contends that its right to a fair hearing including a hearing on
the
merits of the dispute was unjustifiably limited. It went as far as to
suggest that the dictum by Khampepe J in
Ascendis
applies
with equal force to this case. I agree with Bayer that
Ascendis
is
distinguishable from this matter. In that matter, it was not the
refusal of an amendment
simpliciter
that was being held to
infringe upon the right of access to courts. Rather, it was the
question of
res judicata
which was at the heart of that
application.
[26]
On
the facts of this case, there is no basis to suggest that the refusal
of an amendment unjustifiably limited Villa Crop’s
rights
of access to courts in terms of section 34. The question whether
each time section 34 is implicated the jurisdiction
of the Court
is engaged, was definitively answered by this Court in
NVM
[22]
where Rogers AJ, as he was then, writing for the majority, held:
“
To a greater or
lesser extent, the rights guaranteed in the Bill of Rights cover the
whole field of human existence. Almost any
case could be framed as
touching on one or other fundamental right. This is not enough to
make the case a constitutional matter.
This is shown by
Boesak
.”
[23]
[27]
In the circumstances of this case, a refusal to grant the
amendment does not raise a constitutional issue and Villa Crop’s
reliance on
Ascendis
is misplaced.
[28]
Villa Crop submits that this matter raises
arguable points of law of general public importance. Villa Crop
argues that
the nature of the South African patent system places
a duty on patentees to be honest when applying for patents and that
if
this doctrine was applicable, it would extend beyond the narrow
interests of the parties. It argues that this matter is of public
interest because it concerns honesty and integrity in the application
for and maintenance of a patent as well as in patent litigation.
[29]
Whether a matter raises an arguable point of law of
general public importance requires this Court to determine
whether the
point being raised is one of law and is arguable.
In
Paulsen
,
Madlanga J said:
“
It
cannot be any and every argument that renders a point of law arguable
for purposes of section 167(3)(b)(ii).
Surely,
a point of law which, upon scrutiny, is totally unmeritorious cannot
be said to be arguable
.
Indeed, in
Baloi
Centlivres JA
said ‘there are very few cases which are not arguable in the
wide meaning of that word’. The notion
that a point of law is
arguable entails some degree of merit in the argument. Although the
argument need not, of necessity, be
convincing at this stage, it must
have a measure of
plausibility
.
In what appears to have been a judge-created test, leave to appeal
under section 369 of the then applicable Criminal Procedure
and
Evidence Act could be granted if the question at issue was
arguable. Not surprisingly, in
Beatley & Co
Tindall AJP held that the word ‘arguable’ is used ‘in
the sense that there is substance in the argument advanced.’”
[24]
(Emphasis
added.)
[30]
There is no merit to Villa Crop’s argument. The
cornerstone of Villa Crop’s case is misrepresentation. The
patents system is capable of dealing with any misrepresentation that
Villa Crop alleges may have been made in South Africa.
It is
common cause that in the infringement proceedings, Villa Crop
asserted defences based on misrepresentation. If successful
in those
proceedings, the patent would be revoked.
[31]
What
makes Villa Crop’s special defence startling is that it
does not attack the validity of the patent. Villa Crop
purely
seeks to subvert the existing patent system and introduce reforms by
way of a special plea, something which belongs
to the terrain of
the Legislature. Allowing this would destabilise the patent system.
In
Ascendis
,
Cameron J cautioned against the destabilisation of our patent
system through novel defences such as the one advanced by
Villa Crop.
[25]
In my view, the special plea is nothing else but a stratagem to
insert into the South African patent system, a defence which
is
available to Villa Crop under the current patent system.
[32]
There is yet another reason, why Villa Crop’s
arguments do not raise an arguable point of law of general public
importance.
Its attack on the South African patent system and the
Patents Act that provides for its “depository” system was
also
not pleaded nor was it raised before the Court of Patents.
It is therefore important that a point be made clear that the
Patents
Act along with its depository system is not impugned in this
litigation.
[33]
I conclude that the issues implicated in this matter are too
narrow and do not implicate the interests of the public. These are
purely issues that involve two protagonists and not the general
public. The attempt by Villa Crop to widen the issues with
the
introduction of a special plea has no foundation. The crisp issue is
whether the Court of Patents correctly dismissed the application
for
amendment. I now address this issue.
Whether the
Commissioner of Patents misapplied the test
[34]
Villa Crop’s principal submissions are that the
Court of Patents incorrectly applied the legal test relating to
amendments.
Based on the plethora of decided cases, one would have
thought that the principle is now settled. It seems to me that
this Court
is yet again confronted with the issue whether it has
jurisdiction to decide a matter which concerns the mere application
of accepted
legal principles. This is so because Villa Crop
persists with its argument that because the Commissioner incorrectly
applied
the test, therefore this Court’s jurisdiction is
engaged.
[35]
The
starting point in considering whether this argument has merit is to
look at the judgment of the Court of Patents.
That
Court refused the amendment on the basis that allowing the special
plea would lead to “a complicated enquiry and would
require
expert and technical evidence to explain to a court the law and
process applicable in different jurisdictions in respect
of
applications for SPC”.
[26]
It concluded that it was not in the interests of justice to embark on
such a protracted enquiry.
[27]
The reasons advanced for the refusal of the amendment do not evince a
proper interrogation and application of the principles relating
to
amendments. The Court of Patents cites
GMF Kontrakteurs
[28]
which lists the applicable principles in granting amendments:
“
The granting or
refusal of an application for the amendment of pleadings is a matter
for the discretion of the Court, to be exercised
judicially in the
light of all the facts and circumstances of the case before it. The
principles relating to the exercise of that
discretion are well
settled. They were exhaustively reviewed in
Zarug v Parvathie N.O.
1962 (3) SA 872
(D). At 876A-D the following principles were set
out:
‘
1.
That the Court will allow an amendment, even though it may be a
drastic one, if it raises no new
question that the other party should
not be prepared to meet.
2.
With its large powers of allowing amendments, the Court will always
allow a defendant, even
up to the last moment, to raise a defence,
such as prescription, which might bar the action.
3.
No matter how negligent or careless the mistake or omission may have
been and no matter how
late the application for amendment may be
made, the application can be granted if the necessity for the
amendment has arisen through
some reasonable cause, even though it be
only a
bona fide
mistake.’
An amendment cannot
however be had for the mere asking. Some explanation must be offered
as to why the amendment is required and
if the application for
amendment is not timeously made some reasonably satisfactory account
must be given for the delay. Of course,
if the application to amend
is
mala
fide
or
if the amendment causes an injustice to the other side which cannot
be compensated by costs, or, in other words, if the parties
cannot be
put back for the purposes of justice in the same position as they
were in when the pleading it is sought to amend was
filed, the
application will not be granted.”
[29]
[36]
The material flaw in the judgment of the Court of Patents is
that, save for the superficial and fleeting references to cases
dealing
with amendments, no proper engagement with the principles can
be discerned. The Court of Patents simply overlooked, in large parts,
the principles governing the application for amendments. Even if one
were to read the judgment liberally, the only reference that
one can
find in the judgment relates to the overarching principles of the
interests of justice as stated in
Affordable Medicines.
The Commissioner of Patents only focussed on the interests of justice
criteria and refused to exercise her discretion in favour
of
Villa Crop. Relying on the interests of justice alone is not
enough. There clearly was no proper application of the legal
test.
[37]
I do
not think that mere reference to
Affordable
Medicines
can save the judgment from misapplication of the test. In my view,
the misapplication of the test is not sufficient to grant Villa Crop
jurisdiction before this Court. The decision of
Booysen
[30]
offers an instructive point of departure in this regard. That Court,
relying on the reasoning of this Court in
Phoebus
Apollo
[31]
held:
“
The thrust of the
argument presented on behalf of the appellant was essentially that
though the Supreme Court of Appeal has set
the correct test, it had
applied that test incorrectly ─ which is of course not
ordinarily a constitutional issue. This Court’s
jurisdiction is confined to constitutional matters and issues
connected with decisions on constitutional matters.”
[32]
[38]
In
University
of Johannesburg
,
[33]
this
Court reiterated that “it is trite that a wrong decision in the
application of the law raises neither a constitutional
issue nor an
arguable point of law of general public importance”.
[34]
Furthermore,
in
Mankayi
[35]
this Court
“refused to entertain appeals that seek to challenge only
factual findings or incorrect application of the
law by the lower
courts”.
[36]
This,
in my view, is the difficulty facing Villa Crop in this case.
[39]
Froneman
J in
Jacobs
,
[37]
concurring
with the first judgment said:
“
I
do not think it would generally be in the interests of justice to
grant leave to appeal
where
there has merely been a misapplication of accepted legal principles
.
A practical and functional arrangement based on a shared
constitutional endeavour between all courts should acknowledge that
the structure of our legal system is set up to allow other courts to
apply uncontroversial laws on a day-to-day basis.
It
is not for the Constitutional Court to engage in that exercise
.
It
is important that the distinction is maintained, not least because
this Court does not have the capacity to hear every case of
alleged
misapplication.
In
maintaining the proper distinction between cases that this Court
should and should not hear, we have to recognise the need for
a
certain amount of judicial trust; we have to trust that the system of
appeals all the way up to the Supreme Court of Appeal will
ordinarily
return the correct result.
We
should be wary that so called ‘misapplication cases’
should not undermine that trust
.”
[38]
(Emphasis added.)
[40]
In
Jacobs
,
the applicants had submitted that the doctrine of common purpose was
incorrectly applied and that their sentences therefore resulted
in a
violation of their right not to be deprived of freedom arbitrarily
and without just cause as protected in section 12(1)(a)
of the
Constitution. Goliath AJ wrote the first judgment in which she held
that the applicants’ submissions did not involve
the
interpretation of the common purpose doctrine or its development
and that because only factual issues were involved, the
Constitutional Court had no jurisdiction to hear the appeal under
section 172(1)(a) of the Constitution.
[39]
Froneman J
in his judgment held that if there was indeed no factual finding on
when and where the fatal injury was inflicted
and that the factual
finding about a continuous act was flawed, the result would have been
that the
Full
Court simply misapplied the existing rule
in respect of the presence of the accused when the fatal blow was
struck.
[40]
He
concluded that in the absence of such an effort to develop the common
law he always understood the Constitutional Court not to
have
jurisdiction.
[41]
[41]
Rautenbach, in his article titled “Does
the Misapplication of a Legal Rule raise a Constitutional Matter: A
fifty-fifty Encounter
with Common-purpose Criminal Liability”,
states that an inept application of legal rules to the facts
of a case amounts to misapplication:
“
To the extent that
the application of a legal rule involves determining whether and how
the legal rule relates to a particular set
of facts, an application
of a legal rule always has at least two aspects. The first is to make
a finding in respect of the facts
to which the rule must be applied.
The second is to determine the meaning of the legal rule. An
incorrect assessment of the facts
or an incorrect interpretation of
the legal rule could amount to a misapplication. When one assigns a
meaning to a legal rule that
differs from the meaning previously
assigned to it, it could amount to a misapplication. It need not
necessarily be the case.
An
inept application of rules or principles of interpretation, or an
indefensible failure to apply aspects of the legal rule to
the proven
facts, or failure or unsuccessful efforts to interpret statutory
rules or to develop the common law and customary law
in conformity
with the Constitution would indeed result in misapplication
.”
[42]
(Emphasis added.)
[42]
My concern with my Brother
Unterhalter AJ’s stance (second judgment) is that it has
serious and far–reaching consequences.
In holding that the
Court of Patents committed an error of law, the second
judgment blurs the distinction between the
two principles. This will
undoubtedly lead to an influx of unmeritorious applications before
this Court. In my view, placing
undue weight on one leg of an
enquiry cannot, in itself, be classified as an error of law.
Similarly, in underscoring the interests
of justice factor, the
Commissioner of Patents was alive to the other requirements relating
to amendments and simply failed to
fully interrogate the said
requirements.
[43]
Here too, we are faced with an
instance where the Court of Patents correctly outlined the test but
failed to adequately apply the
test to the facts before it. This is
not a misreading of the test in
Affordable
Medicine
as postulated by second
judgment.
[44]
What in my view tends to diminish
the force of that finding is that it is not anchored in the
pleadings, there appears to be no
evidence to support it. None of the
parties advanced that argument either in the pleadings or during oral
argument before us. It
is abundantly clear that the parties correctly
conducted their case on the understanding that, what was at stake was
the misapplication
of the legal test by the Court of Patents. At no
stage whether expressly or impliedly was it suggested or urged upon
us that the
finding of the Court of Patents constituted an error of
law. The thrust of Villa Crop’s submissions was exclusively
directed
at what it considered to be the misapplication of the legal
test. I did not understand Villa Crop’s contentions to be any
different.
[45]
This
Court in
Gcaba
[43]
said:
“
Jurisdiction
is determined on the basis of the pleadings . . . and not the
substantive merits. . . . . In the event of the Court’s
jurisdiction being challenged at the outset (
in limine
),
the applicant’s pleadings are the determining factor. They
contain the legal basis of the claim under which the applicant
has
chosen to invoke the Court’s competence.”
[44]
[46]
The
kernel of its submissions was that its right of access to court was
infringed upon by the Court of Patents’ refusal to
allow it to
introduce the special defence of unclean hands. This point was set
out in Villa Crop’s written submissions and
argued with equal
force by its counsel during the hearing. What it in fact asked the
Court to determine is a factual comparison
between what was disclosed
in ECs against what Bayer was advancing in support of its action. In
essence, it contended that the
two versions are mutually
contradictory and indicative of the fact that Bayer did not approach
the courts with clean hands. These
are nothing but purely factual
issues which, on the authority of
Boesak
,
[45]
do
not engage the jurisdiction of this Court.
[47]
The second judgment concludes that the Court of Patents in
reaching its decision committed an error of law. It is trite that a
party
has to show that such error prevented a fair trial of issues.
In this case it was not shown that the Court of Patents committed
a
gross irregularity which amounted to an error of law. The
Commissioner of Patents was well aware of the principles concerning
amendments. The fallacy in the Court of Patents is that it placed
undue weight on one leg of the enquiry and in the process ignored
other essential requirements. In doing so, the Court of Patents fell
short of properly applying the legal test. I disagree with
the second
judgment that this constitutes an error of law.
[48]
It is therefore my conclusion that on this ground alone the
jurisdiction of this Court is not engaged.
Interests of justice
[49]
I
must make it clear that even if the matter did raise a constitutional
issue or an arguable point of law, this Court has previously
pronounced that leave may be refused if it is not in the interests of
justice for this Court to hear the appeal.
[46]
Importantly, in considering the interests of justice, prospects of
success, although not the only factor, are obviously an important
aspect of the enquiry.
[47]
In the present matter, while Villa Crop argues that the matter
raises a constitutional issue and an arguable point of law
of general
public importance, I am of the view that it is not in the interests
of justice to grant leave to appeal because there
are no reasonable
prospects of success.
[50]
Of significance here is that no
prejudice would be suffered by Villa Crop if the amendment is
refused, because it will not
be hampered from proceeding with its
counterclaim and resisting the action instituted by Bayer. The
refusal of the amendment will
not lead to the end of the matter, the
dispute remains, Villa Crop would still be able to argue the
same point in the special
plea and counterclaim based on material
misrepresentation as a ground for revocation. Tellingly, what counts
against Villa Crop
is that there are certain important issues
which remain to be adjudicated by the trial court. These include
the alleged anticipation or lack of novelty of the
2005 patent – in light of the disclosure in
patent number
EP 0 915 846 and whether it contains an
enabling disclosure of the invention claimed in the 2005 patent.
[51]
One
further matter that illustrates why Villa Crop’s
contentions cannot be correct is that the patent system is capable
of
dealing with the misrepresentation of the kind advanced by
Villa Crop. The refusal of the amendment would not put
Villa Crop
in a worse position than it would have been if the
amendment had been granted. There is accordingly no need to import or
introduce
the doctrine into our Patents Law even if it were to be
done under the realm of section 65(4).
[48]
The
concession by Villa Crop’s counsel during the hearing puts
paid to this argument, Villa Crop can still approach
the court
as it has done, to revoke the patent on the basis of lack of novelty
in terms of section 61(1)(g). On the other hand,
the grant of an
amendment would cause Bayer prejudice, which prejudice would not be
cured by an appropriate costs order or postponement,
because its
infringement action would be delayed. It is common cause that the
patent will expire in 2023 and Villa Crop’s
action would render
the patent nugatory. This is an injustice.
[52]
In
conclusion, another reason which militates against acceptance of
Villa Crop’s submissions is that the factual matrix
of
Villa Crop’s special defence involves a determination of
the factual disputes. A factor which Villa Crop conceded
before
the Court of Patents when it described its case as a “simple
factual issue”. It is trite that this Court will
refuse to
entertain appeals that seek to challenge only factual findings
[49]
and misapplication of the law by lower courts.
[53]
For these reasons, I would refuse the application for leave to
appeal with costs, including costs of two counsel.
UNTERHALTER
AJ (Kollapen J, Majiedt J, Madlanga J, Mhlantla J and Theron J
concurring):
Introduction
[54]
I have had the pleasure of reading the judgment of my Brother,
Mathopo J (first judgment). Regrettably, I do not agree
with the order proposed or the reasons marshalled in support of it.
[55]
The first judgment declines jurisdiction. It does so on three
grounds. First, it is said that the refusal of an amendment does not
raise a constitutional issue. Second, the amendment sought does not
raise an arguable point of law of general public importance.
Third,
it is not in the interests of justice to entertain the appeal. I
consider the first judgment to have fallen into error in
arriving at
these conclusions, and I traverse each ground in turn. Before doing
so, a brief exposition of the pleadings, the application
for leave to
amend, and Bayer’s objection will be helpful.
The pleadings, the
application for leave to amend and the objection
[56]
Prior to Villa Crop’s application to amend, the dispute,
on the pleadings, was as follows. Bayer brought proceedings before
the Commissioner of Patents alleging that Villa Crop was
infringing its 2005 patent. Bayer made specific averments as to the
origin of the 2005 patent. Bayer alleged that Villa Crop’s
pesticide, TIVOLI 240 SC, infringed a number of claims of
the 2005
patent, and sought relief by way of an interdict, delivery-up and an
enquiry as to the reasonable royalty payable.
[57]
In its plea, Villa Crop claimed that the 2005 patent relied
upon by Bayer was invalid. Villa Crop also brought a
counterclaim
for the revocation of the patent and pleaded a number of
grounds of invalidity. Of particular relevance, it relied upon
section 61(1)(g)
of the Patents Act to revoke the 2005 patent.
It alleged that a false statement or representation was made in the
prescribed
declaration required in respect of the application for the
2005 patent. The false statement or representation, which was
material,
was known by the patentee or its predecessors in title to
be false at the time it was made, or ought reasonably to have been
known.
Villa Crop then pleaded, in detail, the basis for its
contention that the statement or representation was false.
[58]
On 15 April 2019, Villa Crop gave notice of its intention to
amend. It sought to introduce what it styled “a special plea in
limine” with the heading “Plea in limine: unclean hands;
abuse of process; breach by patentee of duty of good faith”.
Villa Crop invited the Commissioner to refuse to entertain
Bayer’s claim on the basis that Bayer was approaching the
Court
mala fide, dishonestly, and with unclean hands; that Bayer was in
breach of its duty of good faith; that it was engaging
in an abuse of
process; and depriving Villa Crop of its right to a fair trial. I
refer to these various complaints as the invocation
of the unclean
hands doctrine.
[59]
At the heart of Villa Crop’s reliance upon the unclean
hands doctrine is a claim of contradiction. What Villa Crop pleads is
that Bayer applied to various authorities in the European communities
for SPCs in order to obtain an extension of its basic patent.
In so
doing, Bayer represented that the active ingredient in its plant
protection product, spirotetramat, was protected by its
basic patent.
However, in South Africa, and after these European applications were
made, Bayer represented, at the time of filing
the 2005 patent, that
spirotetramat was a novel invention. This representation was also
perpetuated by Bayer in the proceedings
before the Commissioner of
Patents. Villa Crop’s case is that the representations made in
support of the SPCs contradict
those relied upon before the
Commissioner of Patents. Bayer thus comes before the Commissioner of
Patents in breach of the unclean
hands doctrine. This special plea,
it was submitted, relies upon a common law doctrine that prevents a
litigant from engaging the
courts on a dishonest basis; and it is a
defence that is quite distinct from the statutory grounds of
invalidity set out in the
counterclaim.
[60]
Bayer filed a notice of objection to the amendments sought to
be made by Villa Crop. The objection to Villa Crop’s
proposed
special plea is two fold. First, it is said that the
special plea is vague and embarrassing and lacks the averments
necessary
to sustain a defence. In support of this objection, Bayer
contends that the special plea proceeds on the premise that the
2005 patent is invalid, whereas the validity of the patent is the
subject of the counterclaim. Therefore, the special plea “seeks
to elevate to a special plea an alleged ground for the
invalidity of the patent where such ground forms part of the
counterclaim
itself”. Furthermore, the special plea is founded
on allegations of fact arising eight years after the priority date of
the
patent, and are thus irrelevant to the invalidity of the patent.
Second, Bayer objects on the basis that Villa Crop has unduly delayed
in seeking to introduce the special plea.
[61]
This then summarises the pleaded case before the Commissioner
of Patents, the amendment sought to be introduced and the objection
to it.
Jurisdiction
[62]
The first judgment declines the application for leave to
appeal on the basis that this Court’s jurisdiction is not
engaged.
It does so, in part, because the error of the Commissioner
of Patents is said to be an error of the application of law, and not
an error of law. The first judgment explains that the Commissioner of
Patents misapplied the law in deciding the application to
amend and
that the misapplication of law does not engage the jurisdiction of
this Court.
[63]
The
Commissioner of Patents, in her judgment, set out the well known
principles of an application to an amendment that is sought.
Those
principles are summarised in
Affordable Medicines
,
[50]
and are cited in the Commissioner’s judgment. The Commissioner
of Patents then made an evaluation of the application to amend.
She
decided the application on the basis of the following reasoning: “It
is not in my view, in the interests of justice to
embark on such a
protracted inquiry particularly as it detracts from the real issue in
dispute in the action”.
[51]
The first judgment construes this to be a misapplication of law.
[64]
I do not agree. The misapplication of law ordinarily occurs
when a legal standard that is correctly stated and adopted is then
applied
to the facts so as to derive a conclusion that cannot be
sustained. So, for example, a crime that requires intention when the
facts
merely support negligence cannot sustain a conviction because
the application of the law to the findings of fact does not support
the conclusion that the accused is guilty of the crime. Here though,
the Commissioner of Patents, having cited the well known
principles of law relevant to the application before her, then
pronounced and adopted an entirely different and incorrect standard:
the interests of justice. That is apparent from the salient passage
of her judgment quoted above. It is also apparent from the
reasoning
adopted by the Commissioner of Patents to arrive at her conclusion.
There is no trace in that reasoning that the Commissioner
of Patents
adopted the relevant legal principles that she had referenced.
Nothing is to be found of the permissive principle that
amendments
are always allowed, unless they are sought in bad faith or would
cause an injustice that cannot be remedied by an award
of costs.
Rather, the Commissioner of Patents adopted and applied a distinct
and incorrect standard: the interests of justice.
She then exercised
her discretion to refuse the application to amend, by recourse to
that incorrect standard.
[65]
The adoption of an incorrect legal standard to decide an
application to amend is to make an error of law. It is not a
misapplication
of law because the decision does not proceed from a
correct legal premise to an incorrect conclusion as a result of a
failure properly
to apply the law to the relevant facts. And it is an
error of law of no small consequence. The legal principles that are
restated
in
Affordable Medicines
reflect the constitutional
right to have a dispute resolved by the application of law before a
court. This entails the right of
a litigant to frame the dispute that
requires resolution, and in the present matter, to formulate a
defence. Hence, the importance
of the permissive principle, to which
I have referred.
[66]
The
Commissioner of Patents failed to adopt the permissive principle, but
instead arrogated to herself a broad discretion to decide
the
application to amend under the capacious concept of the interests of
justice. That is not our law. More particularly, as a
general
principle, courts do not decide for litigants what disputes the
interests of justice permit them to pursue before the courts.
Yet
that is what the Commissioner of Patents decided. The proposed
special plea, she found, would give rise to a protracted enquiry
that
detracts from the real issue in dispute in the action. A court cannot
exclude a cause of action or a defence because the enquiry
entailed
by it is protracted. That is for the litigant to decide. Nor should a
court decide for a litigant, at the stage of pleadings,
the real
issue in dispute. That too is a choice which the courts should afford
litigants considerable latitude to determine. What
is plain from the
reasoning of the Commissioner of Patents is that she considered
herself to enjoy a wide discretion to regulate
what disputes should
go to trial on the basis of the Court’s judgment as to what
disputes may usefully be litigated. That
is an error of law and one
that, if followed, would infringe upon the rights of litigants to
enjoy access to the courts, contrary
to section 34 of the
Constitution.
[52]
[67]
Plainly, the permissive principle is not without limits.
Pleadings that are excipiable, or, as the holding in
Affordable
Medicines
affirmed, are introduced in bad faith or cause an
injustice that cannot be compensated by an order for costs, afford
grounds
for refusing a proposed amendment. What the Commissioner of
Patents did was to interpret
Affordable Medicines
as an
invitation to elevate the interests of justice as the ultimate
criterion by reference to which discretionary judicial power
is to be
exercised. That is not the holding in
Affordable Medicines
. It
is important that this legal error is corrected. By so doing, we are
not inviting disaffected litigants, whose amendments have
been
refused, to seek leave to appeal. We do no more than to correct an
error of law arising from a misreading of
Affordable Medicines
that, if replicated, would damage the rights of litigants to access
the courts, and thereby damage a central tenet of our system
of
justice. The refusal of Villa Crop’s proposed special plea
by the Commissioner of Patents was predicated upon an
error of law
that implicates the constitutional right of access to the courts.
That is a constitutional matter that engages the
jurisdiction of this
Court.
[68]
The
first judgment correctly observes that this Court’s
jurisdiction cannot be engaged in every case where a court decides
an
application to amend a pleading. Indeed not. But where a court does
so on the basis of an error of law that implicates the constitutional
rights of a litigant, the well-established jurisprudence of
this Court holds that our jurisdiction is engaged.
[53]
[69]
The first judgment, having decided that the refusal to grant
Villa Crop leave to amend does not raise a constitutional issue,
then considers whether the matter raises an arguable point of law of
general public importance. The first judgment holds that the
special plea has no merit. It does so on the basis that the
proposed special plea, if allowed, would subvert the existing
patent
system (and in particular its depositary system) because it would
allow a defence that does not attack the validity of the
2005 patent;
that it is a novel defence that would destabilise the 2005 patent
system; and, finally, the reform of the patent
system should be left
to Parliament.
[70]
The first judgment comes to these robust conclusions, even
though the Commissioner of Patents found it unnecessary to
determine
whether the unclean hands doctrine finds application
in patent law. Bayer, in its objection to the proposed special plea,
contended that the pleading is vague and embarrassing and lacks
averments necessary to sustain a defence. Bayer thus objected to
the
proposed special plea on the basis that it does not in law disclose a
defence to its claim. In essence, Bayer’s objection
is that the
grounds of invalidity that Villa Crop seeks to allege and prove are
to be found in the Patents Act, as indeed it has
pleaded in its
counterclaim. Bayer contends that there is no basis upon which Villa
Crop may invoke the unclean hands doctrine
to dismiss Bayer’s
claim for infringement, absent a determination of the validity of the
2005 patent.
[71]
Whether there is a common law doctrine of unclean hands that
can deprive a plaintiff of its claim for infringement, absent a
finding
of the invalidity of the 2005 patent on one or other of
the statutory grounds set out in the Patents Act, was a matter much
debated before us.
[72]
Our
courts have long recognised their power, in exceptional
circumstances, to prevent an abuse of process.
[54]
That power has more recently been affirmed,
[55]
and an abuse of process may include a litigant who comes to court
with unclean hands.
[56]
The power is an incident of the court’s inherent power to
ensure that those who use the process of law do not do so for
ulterior ends that undermine what the courts are established to
secure. It is a power most sparingly used. That is so because the
exercise of the power prevents a litigant from having their dispute
resolved before the courts, the very essence of their right
under
section 34 of the Constitution. But the authorities do bear out the
proposition that to dismiss a claim that a litigant would
pursue
before the courts on the grounds of abuse is not precluded because
that claim exists in law. The claim is dismissed because
the litigant
who would bring it is disqualified from doing so by reason of their
abuse.
[73]
Villa
Crop relied upon a number of cases that it contended recognised and
applied the doctrine of unclean hands, and the consideration
of the
doctrine was not ousted in cases concerning intellectual property
rights, more particularly in the law of trademarks and
patents.
[57]
The essential proposition was that the courts will not assist a
wrongdoer, irrespective of whether their rights derive from the
common law or a statute.
[74]
Bayer submitted that the proposed special plea would “insert
into the South African patent system a novel ground for the
revocation of patents”. Such an intervention, Bayer contended,
is entirely unnecessary because the statutory grounds for
the
revocation of a patent are sufficient, including lack of novelty and
material misrepresentation grounds, already invoked by
Villa Crop in
its plea. The recognition of the unclean hands doctrine, and its
application to patent law, it submitted, would destabilise
the basic
tenets of the patent system. As to the authorities relied upon by
Villa Crop, Bayer argues that
Deton
is distinguishable in
that it dealt with an application to amend the claims of a patent,
and not pleadings, the grant of which
is discretionary; whereas the
patentee’s right to enforce its patent is not.
[75]
The first judgment holds that Bayer’s submissions are
correct; that the special plea has no merit; and consequently,
Villa Crop’s application for leave to appeal does not raise an
arguable point of law of general public importance.
[76]
The first judgment, however, fails to recognise the frailties
of the contentions of Bayer that it is too quick to adopt. The
premise
of Bayer’s position is that the issues of infringement
and invalidity can only be determined by recourse to the Patents Act.
Accordingly, if Villa Crop can prove the invalidity of the
2005 patent by establishing a statutory ground of invalidity,
Bayer will have no right to claim an infringement. If Villa Crop
fails to prove the invalidity of the 2005 patent, how can
Bayer then
be deprived of its right to enforce a valid patent?
[77]
This binary position fails to appreciate the true juridical
nature of the power enjoyed by the courts to prevent an abuse of
process,
of which the doctrine of unclean hands is a species. An
abuse of process can occur in a variety of ways. The litigation may
be frivolous or vexatious. A litigant may seek to use the
legal process for an ulterior purpose or by recourse to conduct
that subverts fundamental values of the rule of law. The behaviour of
the litigant may be so tainted with turpitude that the court
will not
come to such a litigant’s aid. The unclean hands doctrine
references this latter type of abuse. It is the abusive
conduct of
the litigant that, in a proper case, may warrant the exercise of the
court’s power to non-suit such a litigant.
The court does so,
even though the litigant claims a right that they would vindicate in
the court proceedings. For this reason,
the power is to be exercised
with great caution. Put simply, the court enjoys the power to
safeguard the integrity of its process.
The court will only exercise
this power upon a careful consideration of the prejudice that this
may cause to the abusive litigant,
and, in particular, the harm that
may be occasioned to a litigant whose claim of right will not be
decided by the court. But the
court’s power to prevent the
abuse of its process is not determined by the right that the abusive
litigant claims.
[78]
Bayer’s central contention is that the proposed special
plea is a novel ground of revocation. That premise appears to me to
be faulty. Villa Crop’s claim of abuse against Bayer is not
that its 2005 patent is invalid, but that it has come to Court
tainted with turpitude by reason of its misrepresentations. Its
claims should not be entertained by the Court because of its conduct,
whether or not its patent is valid. It follows that Bayer’s
objection to the proposed special plea is aimed at the wrong
target.
The invocation of the unclean hands doctrine is a claim as to whether
Bayer is a litigant the courts should hear. It is
not a claim as to
whether its patent is valid, and hence whether Villa Crop’s
case is bounded by the four corners of
the Patents Act.
[79]
Entirely different questions arise as to whether the
misrepresentations relied upon by Villa Crop, even if proven,
would amount
to an abuse of process, and whether such an abuse would
warrant a court taking the drastic step of non suiting Bayer,
given
the rights it comes to Court to vindicate. But those are not
questions for us to determine. It suffices to observe that the power
of the courts to prevent abuse of process is well recognised. The
unclean hands doctrine marks out a species of such abuse. In
egregious cases that power may be exercised to non-suit a litigant.
The law of patents is not exempted from the application of
the
doctrine because abuse of process may occur just as surely among
litigants who claim rights in the law of patents, as it does
among
those who would make claims in the law of contract or delict.
[80]
It follows that, in my view, the refusal of the Commissioner
of Patents to grant the amendment sought by Villa Crop to introduce
the special plea does indeed raise an arguable point of law of
general public importance. How the standards of honesty expected
of a
litigant relate to their claims to enforce rights under the
Patent Act gives rise to arguable points of law that have
resonance beyond the particular dispute in this case. For this
reason, this Court’s jurisdiction is engaged.
The interests of
justice
[81]
Villa
Crop’s application for leave to appeal may be refused if the
interests of justice do not favour its grant. The first
judgment
concludes that it is not in the interests of justice to grant leave
because the appeal has no reasonable prospects of
success.
[58]
The first judgment finds this to be so for two reasons. First,
it holds that Villa Crop’s proposed special plea
raises
the same issue that it had already pleaded in its plea: material
misrepresentation as a ground of revocation.
[59]
Section 61(1)(g) of the Patents Act already provides for the
revocation of a patent on the basis that the prescribed declaration
contains a false statement or representation. As a result, the
refusal of the amendment will occasion Villa Crop no prejudice,
but
allowing the amendment will give rise to delay that will prejudice
Bayer.
[60]
I call this the finding of redundancy. Second, the determination of
the proposed special plea requires the determination of factual
disputes.
[61]
This Court will not entertain appeals that challenge factual
findings, and on this basis also leave to appeal should be refused.
I
call this the finding of factual disability.
[82]
I am
not in agreement with either of these findings. As to the finding of
redundancy, the statutory ground of revocation provided
for in
section 61(1)(g) of the Patents Act is not the cause of
action that Villa Crop seeks to advance in its proposed
special plea.
As I have already sought to explain, section 61(1)(g) is a statutory
ground of revocation. The proposed special
plea invokes the power of
the courts to prevent abuse of process. The basis upon which that
power is exercised is entirely distinct.
It has nothing to do with
revocation. The conduct that may constitute abuse is not confined to
the particular misrepresentation
or false statement referenced in
section 61(1)(g), nor are the averments made in the special plea
so confined.
[62]
[83]
The finding of redundancy is problematic on its own terms. If
the invocation of the unclean hands doctrine in the special plea was
simply redundant because it had already been raised in the plea, that
would not be a valid reason to refuse an amendment. Pleadings
are
often replete with repetitive averments. But that does not render a
pleading excipiable, nor, on that basis, does it establish
a reason
to resist an amendment. The finding of redundancy leaves unexplained
the first judgment’s definitive holding that
the proposed
special plea has no merit. If the proposed special plea is simply a
reincarnation of the statutory ground of revocation,
how is it
possible to hold that it lacks merit at this stage of the
proceedings? In fact, the first judgment considers the invocation
of
the unclean hands doctrine to lack merit because it does not warrant
recognition, and not because it simply covers the same
ground as
section 61(1)(g). The finding of redundancy appears to me to be at
odds with the first judgment’s holding as to
the merits of the
special plea.
[84]
Nor am I in agreement with the finding of factual disability.
The Commissioner of Patents refused Villa Crop’s application
to
amend. That decision entailed no findings of fact, and hence the
application for leave to appeal raises no challenge on questions
of
fact. Doubtless, if the amendment were to be granted, and the special
plea went to trial, there may well be disputes of fact
that require
resolution. But the trial court is the proper court for that to be
done. The merits of the application for leave to
appeal before
this Court concern the proper application of the correct test
for the grant or refusal of an amendment sought
to the pleadings.
That is not a matter that concerns disputes of fact.
[85]
For these reasons, I cannot agree that the interests of
justice are not served by entertaining this appeal.
Leave to appeal
[86]
The amendment sought by way of the introduction of the
proposed special plea was refused upon an adoption of the wrong
legal
test by the Commissioner of Patents. Villa Crop, as a
result, did not have its right to introduce a defence lawfully
adjudicated.
That directly affected its right of access to the courts
in terms of section 34 of the Constitution. The proposed special plea
gives rise to an arguable point of law of general public importance
and the interests of justice are served by granting leave.
This Court’s jurisdiction is thus engaged and leave should
be granted.
The merits
[87]
The principles governing the grant or refusal of an amendment
were restated in
Affordable Medicines.
They require no
further elaboration. The amendment should be allowed unless it is
brought in bad faith, or unless the amendment
will cause an injustice
to Bayer that cannot be cured by an appropriate order for costs.
[88]
The Commissioner of Patents relied upon a number of
considerations that are irrelevant. That the introduction of a
defence will
likely require technical and expert evidence is not a
reason that weighs against granting an amendment. The type of
evidence required
to prove a defence is not a criterion for refusing
an amendment. Nor can an amendment be refused because its
introduction is likely
to “drag out the trial”. Judicial
supervision of trial process may be required to use court time
effectively. But if
a litigant considers a claim or defence to be a
warranted addition to its case, it is not for the court to disallow
the amendment
because the trial will be lengthier, or, more
charitably, because the court has taken the view that the cost of the
extension is
not worth any enhanced prospect of success.
[89]
The Commissioner of Patents, as I have set out above,
considered that the interests of justice would not be served by
embarking
upon the protracted enquiry entailed by the proposed
special plea because it would detract “from the real issue in
dispute
in the action”, that is, the alleged lack of novelty of
the 2005 patent. This, too, is not a basis upon which an amendment
may be refused. It is sometimes appropriate (and even helpful) for a
Judge to indicate what the court considers the main issues
in a case
to be. But the court must ultimately respect the autonomy of a
litigant to plead their case as they will, provided that
the pleading
is not excipiable, nor brought in bad faith, or a cause of
irremediable prejudice. That the Commissioner of Patents
thought the real dispute lay in the case pleaded as to lack of
novelty provided no basis to deprive Villa Crop of the defence
it sought to plead in the proposed special plea.
[90]
The Commissioner of Patents found it unnecessary to decide
whether the unclean hands doctrine should be applied in the
field
of patent law. She thus declined to determine the objection
that Bayer had raised. That is to say, that the proposed special plea
is excipiable. I have already considered Bayer’s objection as
it bears upon jurisdiction. There I was required to do so under
the
less demanding standard as to whether the proposed special plea
raised an arguable point of law. Here I must decide whether
the
amendment cannot be granted because it does not disclose a defence in
our law.
[91]
For the reasons that I have set out above, I do not think that
is so. Abuse of process invites the court to non-suit a litigant by
reason of their conduct. And in the proposed special plea, that is
averred by reason of the turpitude that is said to attach to
Bayer by
virtue of the misrepresentations allegedly made by it. This, it is
said, warrants the exercise by the court of its power
not to assist a
party that has committed a substantial wrongdoing in connection with
the very patent that it would enforce. The
invocation of the unclean
hands doctrine is not reducible to the statutory claim of revocation.
It is a distinct cause of action,
and there is no reason why it
should not have application when the litigant in question comes to
court to vindicate rights under
the Patents Act. I find that the
proposed special plea is not excipiable on the grounds advanced by
Bayer. Whether the averments
made in the special plea would, if
proven, ultimately persuade a court to non suit Bayer is not a
question for us to determine
in deciding whether to grant the
amendment sought.
[92]
It remains for me to consider the question of delay. Bayer
submits that if the amendment were to be granted, the completion of
the
trial would be so long delayed that the 2005 patent would likely
expire before the trial ended. This is a question of prejudice
that I
must weigh. I find however that it is of insufficient weight to
warrant the refusal of the amendment. First, there is no
showing by
Bayer that, absent the amendment, the trial on the existing pleadings
would be completed (together with any possible
appeal) before the
2005 patent expires. Second, Bayer’s objection complained that
the amendment should have been sought earlier,
but did not raise the
issue of the expiration of the 2005 patent. We must consider whether
the Commissioner of Patents erred in
refusing the amendment at the
time it was sought, and not in the light of the time that has since
gone by. Third, while the expiration
of the 2005 patent will impact
upon the grant of interdictory relief, it will not prevent a court
from awarding damages. There
is thus insufficient prejudice
established by Bayer to justify denying Villa Crop its
presumptive right of defence.
[93]
For these reasons, the Commissioner of Patents erred in
refusing the amendment sought. Therefore, I grant leave to appeal;
uphold
the appeal with costs, including the costs of two counsel; set
aside the order of the Commissioner of Patents, and in its place
grant Villa Crop leave to amend by the introduction of its
“special plea in limine”.
Order
1.
The application for leave to appeal is granted.
2.
The appeal is upheld with costs, including the costs of two counsel.
3.
The order of the Commissioner of Patents is set aside and in its
place Villa Crop
is granted leave to amend by the introduction
of its “special plea in limine”.
For the
Applicant:
R M Robinson SC, M B de Wet and K Boshomane
instructed by
Von Seidels
For the
Respondent: L
Bowman SC and B du Plessis SC instructed by DM
Kisch
Incorporated
[1]
The doctrine of unclean hands concerns the honesty of a party’s
conduct. It holds that where a party seeks to advance a
claim that
was obtained dishonestly or mala fide, that party should be
precluded from persisting and enforcing such a claim.
[2]
Villa Crop
Protection (Pty) Ltd v Bayer Intellectual Property GmbH
[2020] ZACCP 1 at para 3 (High Court judgment).
[3]
Id at para 4.
[4]
Section 61(1) provides that any person may at any time apply, in the
prescribed manner, for the revocation of a patent on any
of the
specifically listed grounds therein. One of the listed grounds for
revocation is that the invention concerned is not patentable
under
section 25.
[5]
Section 25(1) provides that “[a] patent may, subject to the
provision of this section, be granted for any new invention
which
involves an inventive step and which is capable of being used or
applied in trade or industry or agriculture”.
[6]
Section 25(6) states that “[t]he state of the art shall
comprise all matter (whether a product, a process, information
about
either, or anything else) which has been made available to the
public (whether in the Republic or elsewhere) by written
or oral
description, by use or in any other way”.
[7]
Section 26(7) provides that “[t]he state of the art shall also
comprise matter contained in an application, open to public
inspection, for a patent, notwithstanding that that application was
lodged at the patent office and became open to public inspection
on
or after the priority date of the relevant invention, if—
(a)
that matter was contained in that application both as lodged and as
open to public
inspection; and
(b)
the priority date of that matter is earlier than that of the
invention.”
[8]
57 of 1978.
[9]
High Court judgment above n 2 at para 5.
[10]
High Court judgment above n 2 at para 28.
[11]
Affordable
Medicines Trust v Minister of Health
[2005] ZACC 3; 2006 (3) SA 247 (CC); 2005 (6) BCLR 529 (CC).
[12]
Id at para 9.
[13]
High Court judgment above n 2 at para 29.
[14]
Ascendis
Animal Health (Pty) Ltd v Merck Sharpe Dohme Corporation
[2019] ZACC 41
;
2020 (1) SA 327
(CC);
2020 (1) BCLR 1
(CC).
[15]
Id at para 32.
[16]
Deton
Engineering (Pty) Ltd v JP Mckelvey
1997
BIP (CP).
[17]
Zyp
Products Coy Ltd v Ziman Bros Ltd
1926 TPD 224.
[18]
Tullen
Industries v A de Sousa Costa (Pty) Ltd
1976
(4) SA 218
(T) at 221.
[19]
Section 61(1) states:
“
Any
person may at any time apply in the prescribed manner for the
revocation of a patent on any of the following grounds only,
namely—
. . .
(g)
that the prescribed declaration lodged in respect of
the application for the patent or the statement lodged in terms of
section
30(3A) contains a false statement or representation which is
material and which the patentee knew or ought reasonably to have
known to be false at the time when the statement or representation
was made.”
[20]
Section 167(3)(b)(i) and (ii) of the Constitution.
[21]
Paulsen
v Slip Knot Investments 777 (Pty) Ltd
[2015] ZACC 5
;
2015 (3) SA 479
(CC);
2015 (5) BCLR 509
(CC)
(
Paulsen
)
at para 18.
[22]
NVM obo
VKM v Tembisa Hospital
[2022]
ZACC 11
;
2022 (6) BCLR 707
(CC)
.
[23]
Id at para 92.
[24]
Paulsen
above
n 21 at para 21.
[25]
Ascendis
above n 14 at para 139.
[26]
High Court judgment above n 2 at para 28.
[27]
Id at para 30.
[28]
Gmf
Kontrakteurs (Edms) Bpk v Pretoria City Council
1978 (2) SA 219
(T)
.
[29]
Id at 222B-F.
[30]
Booysen
v Minister of Safety and Security
[2018] ZACC 18
;
2018 (6) SA 1
(CC);
2018 (9) BCLR 1029
(CC).
[31]
Phoebus
Apollo Aviation CC v Minister of Safety and Security
[2002]
ZACC 26; 2003 (2) SA 34 (CC); 2003 (1) BCLR 14 (CC).
[32]
Id at
para
9. See also
Booysen
above n 30 at para 53.
[33]
University
of Johannesburg v Auckland Park Theological Seminary
[2021]
ZACC 13
;
2021 (6) SA 1
(CC);
2021 (8) BCLR 807
(CC).
[34]
Id at para 49.
[35]
Mankayi
v AngloGold Ashanti Ltd
[2011]
ZACC 3; 2011 (3) SA 237 (CC); 2011 (5) BCLR 453 (CC).
[36]
Id at para 12.
[37]
Jacobs
v S
[2019] ZACC 4
;
2019 (1) SACR 623
(CC);
2019 (5) BCLR 562
(CC).
[38]
Id at para 115.
[39]
Id
at para 44.
[40]
Id at para 108.
[41]
Id.
[42]
Rautenbach “Does the Misapplication of a Legal Rule Raise a
Constitutional Matter: A Fifty-Fifty Encounter with Common-Purpose
Criminal Liability” (2019) 4
SALJ
759.
[43]
Gcaba v
Minister for Safety and Security
[2009]
ZACC 26; 2010 (1) SA 238 (CC); 2010 (1) BCLR 35 (CC).
[44]
Id at para 75.
[45]
S v
Boesak
[2000] ZACC 25
;
2001 (1) SA 912
(CC);
2001 (1) BCLR 36
(CC) at para
35.
[46]
Id at para 12.
[47]
Id. See also
Fraser
v Naude
[1998] ZACC 13
;
1999 (1) SA 1
(CC);
1998 (11) BCLR 1357
(CC) at para
7.
[48]
Section 65(4) provides: “In any proceedings for infringement
the defendant may counterclaim for the revocation of the patent
and,
by way of defence, rely upon any ground on which a patent may be
revoked”.
[49]
Jacobs
above n 37 at para 38.
[50]
Affordable
Medicines
above
n 11 at para 9.
[51]
High Court judgment above n 2 at para 30.
[52]
Section 34 states the following:
“
Everyone
has the right to have any dispute that can be resolved by the
application of law decided in a fair public hearing before
a court
or, where appropriate, another independent and impartial tribunal or
forum.”
[53]
See
University
of Johannesburg
above
n 33 at para 47 where this Court held that “the test is that
the point of law must have reasonable prospects of success”.
The question is this: are there reasonable prospects that the lower
courts erred in their exposition of the law? See also
Paulsen
above n 21 at para 16 where this Court indicated that to raise
an arguable point of law, the point raised must (a) be one
of law;
(b) it must be arguable and (c) ought to be considered by this
Court. At para 21, the Court went on to say:
“
Surely,
a point of law which, upon scrutiny, is totally unmeritorious cannot
be said to be arguable. . . . The notion that a point
of law is
arguable entails some degree of merit in the argument. Although the
argument need not, of necessity, be convincing
at this stage, it
must have a measure of plausibility.”
[54]
L
F Boshoff Investments (Pty) Ltd v Cape Town Municipality; Cape Town
Municipality v L F Boshoff Investments (Pty) Ltd
1969
(2) SA 256
(C) at 275B-C.
[55]
Beinash
v Wixley
[1997]
ZASCA 32
;
1997 (3) SA 721
(SCA) at 734D-G, cited with approval by
this Court in
Lawyers
for Human Rights v Minister in the Presidency
[2016]
ZACC 45
;
2017 (1) SA 645
(CC);
2017 (4) BCLR 445
(CC) at para 20.
[56]
Mostert
v Nash
[2018]
ZASCA 62
;
2018 (5) SA 409
(SCA) at para 24.
[57]
Reference was made to
Deton
above
n 16 at 114 and 122;
Tullen
Industries
above
n 18 at 221; and
Zyp
Products
above
n 17 at 224.
[58]
See [49].
[59]
See [50].
[60]
See [50] to [51].
[61]
See [52].
[62]
See [38].
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