Case Law[2022] ZACC 43South Africa
South African Human Rights Commission v Standard Bank of South Africa Ltd and Others (CCT 291/21) [2022] ZACC 43; 2023 (3) BCLR 296 (CC); 2023 (3) SA 36 (CC) (9 December 2022)
Constitutional Court of South Africa
9 December 2022
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## South African Human Rights Commission v Standard Bank of South Africa Ltd and Others (CCT 291/21) [2022] ZACC 43; 2023 (3) BCLR 296 (CC); 2023 (3) SA 36 (CC) (9 December 2022)
South African Human Rights Commission v Standard Bank of South Africa Ltd and Others (CCT 291/21) [2022] ZACC 43; 2023 (3) BCLR 296 (CC); 2023 (3) SA 36 (CC) (9 December 2022)
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sino date 9 December 2022
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case
CCT 291/21
In
the matter between:
SOUTH
AFRICAN HUMAN RIGHTS
COMMISSION
Applicant
and
STANDARD BANK OF SOUTH
AFRICA LIMITED
First Respondent
NEDBANK
LIMITED
Second Respondent
FIRSTRAND
BANK
LIMITED
Third Respondent
EZRA
MAKIKOLE
MPONGO
Fourth Respondent
MYRA
GERALDINE
WOODITADPERSAD
Fifth Respondent
RADESH
WOODITADPERSAD
Sixth Respondent
JOYCE
HLUPHEKILE
NKWINIKA
Seventh Respondent
KARIN
MADIAU SAMANTHA
LEMPA
Eighth Respondent
NEELSIE
GOEIEMAN
Ninth Respondent
ANGELINE
ROSE
GOEIEMAN
Tenth Respondent
JULIA
MAMPURU
THOBEJANE
Eleventh Respondent
AUBREY
RAMORABANE
SONKO
Twelfth Respondent
ONESIMUS
SOLOMON MATOME MALATJI
Thirteenth Respondent
MODIEGI
PERTUNIA
MALATJI
Fourteenth Respondent
GRACE
MMAMTENA MAHLANGU
Fifteenth Respondent
KEY
HINRICH
LANGBEHN
Sixteenth Respondent
PRETORIA
SOCIETY OF
ADVOCATES
Amicus Curiae
Neutral citation:
South African Human Rights Commission v Standard Bank of
South Africa Ltd and Others
[2022] ZACC 43
Coram:
Kollapen
J, Madlanga J, Majiedt J, Mathopo J, Mhlantla J,
Theron J, Tshiqi J and Unterhalter AJ
Judgment:
Madlanga J (unanimous)
Heard
on:
19 May 2022
Decided
on:
9 December 2022
ORDER
On
appeal from the Supreme Court of Appeal (hearing an appeal from the
High Court of South Africa, Gauteng Division, Pretoria):
1.
Leave to appeal is granted.
2.
The appeal is dismissed.
3.
The Registrar of this Court must furnish a copy of this judgment to
the Minister of
Justice and Correctional Services.
JUDGMENT
MADLANGA
J (Kollapen J, Majiedt J, Mathopo J, Mhlantla J, Theron J, Tshiqi J
and Unterhalter AJ concurring):
Introduction
and background
[1]
At the
heart of this application is whether a High Court may decline to
adjudicate a matter over which it and the Magistrates’ Courts
have concurrent jurisdiction. A related question is whether the
main and local seats of a Division of a High Court may
each
refuse to hear a matter in respect of which the other has concurrent
jurisdiction.
[1]
[2]
The application arises from 13 matters instituted in the Gauteng
Division
of the High Court. It is brought by the South African
Human Rights Commission (SAHRC), which was an amicus curiae before
the
High Court and Supreme Court of Appeal. The 13 matters
concerned the enforcement of payment by the first to third
respondents,
Standard Bank of South Africa Ltd, Nedbank Ltd and
FirstRand Bank Ltd (the banks), against debtors who are all
natural persons.
The debtors had either taken up mortgages or
purchased motor vehicles on credit and had defaulted on repayment.
They took no part
in the High Court proceedings. The banks sought
default judgment and – in the case of mortgages –
orders declaring
the debtors’ residential properties specially
executable. It must be noted that in respect of most of these
matters, the
amounts claimed fell within the Magistrate’s
Court’s jurisdiction.
[3]
The matters
were set down for hearing before a Full Court of the Gauteng Division
of the High Court in terms of a practice
directive issued by the
Judge President of that division. The directive required the
parties to address the following questions:
whether the High Court is
obliged to entertain matters that fall within the jurisdiction of the
Magistrate’s Court purely
because the High Court has
concurrent jurisdiction; whether the provincial division of a High
Court is obliged to entertain
matters that fall within the
jurisdiction of a local division simply because the provincial
division has concurrent jurisdiction;
and whether financial
institutions ought not to consider costs implications and access to
justice concerns of financially distressed
people when deciding in
which of two courts with concurrent jurisdiction to litigate.
[2]
Even after set down, the debtors did not participate. At the
High Court’s request, the Pretoria Society of Advocates
assisted them pro bono.
[4]
Three of the matters were subsequently withdrawn because the debts
had
been settled and another was withdrawn as the amount claimed
exceeded the jurisdiction of the Magistrate’s Court.
[5]
The Full
Court held as follows: it is an abuse of process of court to
institute in the High Court claims that fall within the jurisdiction
of the Magistrate’s Court; and the High Court may exercise
a discretion to entertain matters over which it has concurrent
jurisdiction with the Magistrate’s Court.
[3]
[6]
On appeal,
the Supreme Court of Appeal overturned the decision of the
Full Court. In its reasoning it highlighted the significance
of
sections 21 and 27 of the Superior Courts Act,
[4]
which it described as “critical provisions” of the Act
and section 169(1) of the Constitution.
[5]
Relying on
Agri
Wire
,
[6]
it held that it was obligatory for the High Court to entertain
matters in respect of which it has concurrent jurisdiction
with the
Magistrate’s Court (mandatory jurisdiction principle).
In
this Court
[7]
The SAHRC now comes before us, not as an amicus curiae (which it was
previously),
but as an applicant for leave to appeal. We are
satisfied that it does have the requisite interest to bring the
application. The 13 debtors,
who have never participated
before any of the Courts below, remain supine. Pursuant to its
application, we admitted as amicus curiae
the Pretoria Society of
Advocates which represented the 13 debtors pro bono at the
High Court’s request. We are
indebted to it for its assistance
to this Court.
The SAHRC’s
submissions
[8]
The SAHRC readily conceded that it is not supporting the High Court’s
holding that it is automatically an abuse of court process to
litigate in the High Court matters that fall within the monetary
jurisdiction of the Magistrate’s’ Courts.
Consequently, the SAHRC appears to accept that a holding of
abuse
of process can only come about upon the High Court being
satisfied that litigation is, in fact, an abuse of process. What
the SAHRC considers an abuse is a litigant routinely litigating
in the High Court matters that fall within the jurisdiction
of
Magistrates’ Courts. It submits that the right of access
to court dictates that there be a default rule that matters
in
respect of which the High Court and Magistrate’s Court
have concurrent jurisdiction must be litigated in the
latter Court.
According to the SAHRC, just as courts enunciated the common law
mandatory jurisdiction principle – a
subject to which I return
below – they should equally be able to pronounce this default
rule. Exceptions to this rule may
be instances where the plaintiff or
applicant satisfies the High Court that there is a cogent reason why
the matter must be entertained
by the High Court. Examples of these
reasons would include the following: that there is no risk of an
infringement of the absent
respondent or defendant’s right of
access to court; that the matter is too complex for adjudication in
the Magistrate’s Court;
or that the Magistrate’s Court
concerned is dysfunctional.
[9]
The SAHRC
submits that the Constitution does not impose an obligation on the
High Court to hear all matters within its jurisdiction.
That is
so because section 169(1) of the Constitution provides that the
High Court “
may
”
(not “must”) decide such matters. The SAHRC contends that
the word “may” is permissive in respect
of the
jurisdiction conferred on all Superior Courts by the relevant
constitutional provisions, namely section 169(1) (High Court),
section 168(3) (Supreme Court of Appeal) and section 167(3)
(Constitutional Court). It adds that the permissive
nature of “may”
in section 169(1) is typified by the fact that this Court –
in matters in respect of which
it unquestionably has
jurisdiction – may decline to entertain them if it is
not in the interests of justice to
do so; an example being
applications for leave to appeal.
[7]
[10]
In
addition, the SAHRC submits that no statute obliges the High Court to
exercise its jurisdiction. There being no obligation, the
High Court
is entitled to decline jurisdiction over matters that may more
appropriately be heard by other courts. The SAHRC
further
submits that the common law mandatory jurisdiction principle
introduced in
Goldberg
is pre-constitutional.
[8]
It is
now subject to the Constitution. It also contends that, although
Agri Wire
was
decided after the Constitution had taken effect, it did not hold that
the principle applies even when a fundamental right is
implicated. In
addition, the SAHRC submits that the mandatory jurisdiction principle
is inconsistent with judicial independence,
and thus unconstitutional
as it impedes the High Court’s rational management and use
of judicial resources.
[11]
The SAHRC
also contends that Magistrates’ Courts are generally more
accessible than High Courts. There are only 14 High
Courts in
South Africa, which are mainly located in large urban areas. On
the contrary, there are 82 regional Magistrates’ Courts
and 468 district Magistrates’ Courts. The SAHRC submits
that distressed debtors who default on their loan agreements
generally have limited financial means, as was the case with the
defendants before the High Court in this matter.
[9]
The limited number of High Courts necessitates that litigants travel
long distances and, once at the seat of the court, that they
secure
and pay for accommodation for the duration of the proceedings,
something impecunious litigants – like those involved
in this
matter – can ill afford.
[12]
In
illustrating its point about the injustice that the mandatory
jurisdiction principle occasions, the SAHRC adverts to the country’s
province with the largest land mass, the Northern Cape. It makes the
point that there are very long distances between some locations
within that province and the seat of the High Court in
Kimberley. It gives the example of a defendant who advises the High
Court: of their willingness to defend; the fact that they cannot
afford the travel costs to and from the High Court and costs
of
accommodation at the seat of the High Court; and that – as
there are no such costs at the Magistrate’s Court
located
close to their home – they can defend the action there. The
SAHRC also avers that, unlike Magistrates’ Courts,
the
High Court does not have designated interpreters for civil
matters. It submits that all these violate the right of access
to
court of impecunious litigants, a right protected by section 34
of the Constitution.
[10]
The
SAHRC submits that the applicant or plaintiff’s entitlement –
as
dominus litis
– to choose a forum is at variance with the right of access to
court and thus cannot stand.
[13]
Lastly, the
SAHRC makes a few submissions concerning the issue of congestion of
High Court rolls by matters falling within
the jurisdiction of
Magistrates’ Courts and related issues like access to
court, and the need to address these issues
by practice directives
issued by Judges President. It argues that the issuing of the
practice directives should be possible in
terms of the inherent
jurisdiction enjoyed by the High Court to protect its own
process.
[11]
According to
the SAHRC, the practice directives could differ based on the
“particular concerns” of the various
Divisions of
the High Court. For example, in some Divisions the question of the
overburdening of rolls may be the most important
consideration. In
others the issue may be the Northern Cape-type access to court
concern. The nub of the argument is that the Supreme
Court of Appeal
judgment precludes the issuance of the practice directives by Judges
President. The argument continues that this
is so because, according
to the Supreme Court of Appeal, a High Court is obliged to hear
everything.
Standard Bank’s
submissions
[14]
Standard Bank argues that the SAHRC’s conclusion that an
impecunious litigant may be denied access to court as a result of
their adversary litigating in the High Court, instead of the
Magistrate’s Court, depends on evidentiary matter,
which
the SAHRC never proffered. That, despite the SAHRC’s promise to
tender such evidence when it sought admission as amicus
curiae before
the High Court. This bank submits that evidence it presented in the
High Court points in the opposite direction.
It refers to evidence
that sought to establish that it chooses to litigate in the
High Court in order to
advance efficiency,
consistency, and cost savings in the administration of justice.
According to it, this promotes – rather
than impedes –
the right of access to court. Standard Bank contends that, contrary
to the SAHRC’s submission, observance
of the mandatory
jurisdiction rule is not only consistent with judicial independence,
it, in fact, promotes such independence.
It also argues that –
properly interpreted – the Full Court’s order is in
conflict with the scheme of jurisdictional
demarcation under the
Constitution.
Nedbank’s
submissions
[15]
Nedbank
points out that for more than a century the law has been that the
High Court cannot decline to exercise jurisdiction
merely
because Magistrates’ Courts share concurrent jurisdiction
with it.
[12]
What it may do –
where a litigant has succeeded in proceedings instituted in the High
Court when they could have litigated
in the Magistrate’s Court
– is to award costs on the Magistrate’s Court’s
scale. Nedbank then submits
that the common law rule has not been
altered by the Constitution; not by section 34 or section
173 of the Constitution,
which are the sections that bear relevance
to the issue. In addressing section 34, it argues – relying
on
Mukaddam
[13]
– that section 34 guarantees someone a right of access to
court, which does not translate into guaranteeing a right
of access
to a
particular
court. It does concede that in a given case a defendant may be able
to persuade a court that their right of access to court is
being
imperilled because they are required to defend the case in the
High Court instead of the Magistrate’s Court.
Coming
to section 173, Nedbank contends that this section is a
non-starter because it amounts to no more than a constitutional
codification of inherent jurisdiction. As such, section 173
could not – on its own – have altered the
pre constitutional
common law position.
[16]
Nedbank challenges what it calls the creation by the Full Court of a
rule that it is always
an abuse of process of court for a litigant to
litigate in the High Court if the Magistrate’s Court has
concurrent jurisdiction.
It does this for two reasons. First, whether
a procedural step is an abuse of process of court turns on evidence,
of which not
a scintilla was tendered by the SAHRC. Second, the
Constitution has not changed the age old common law rule
referred to earlier.
[17]
Nedbank submits that the reliance by the SAHRC on “may”
in section 169(1)
of the Constitution cannot take it far. This
section does not deal with the jurisdiction of a particular High
Court. It deals with
the jurisdiction of the High Court as a
constitutional institution which is a composite whole. If you ask the
question, does
the High Court have jurisdiction over a person,
the answer will be that the question is meaningless. Nedbank says the
answer
to the question is provided by section 21 of the
Superior Courts Act, not section 169 of the Constitution.
Section 21
specifies which High Court has jurisdiction over
what person. It argues, therefore, that in accordance with the
principle
of subsidiarity, you “cannot cut through the
lower level legislation”, the Superior Courts Act,
and
advance an argument pegged to higher level law, the
Constitution.
[18]
Nedbank takes issue with the idea that costs are less when litigants
litigate in the Magistrates’ Courts
than when they
litigate in the High Court. It avers that costs are often less in the
High Court. A stance shared by Nedbank and
the other banks is that
efficiencies enjoyed in litigating in the High Court result in
significant savings on costs. Nedbank goes
so far as to aver that
there is some dysfunctionality in Magistrates’ Courts.
[19]
Lastly,
Nedbank indicates that it disagrees with the other two banks on the
implications of rule 39(22) of the Uniform Rules of
Court.
[14]
The view of the other banks is that rule 39(22) constitutes the
sum total of the manner in which a matter may be transferred
from the High Court to the Magistrates’ Court. According
to the other banks, absent consent by the parties, there can
be no
transfer to the Magistrate’s Court in terms of the rule.
Nedbank contends that what the determinant should be
is the interests
of justice. As I understand the contention, the interests of justice
criterion cannot be constrained by, or subjected
to, the wording of
rule 39(22). To make its point, Nedbank borrows from the SAHRC’s
example of a litigant from a remote
area in the Northern Cape
who is forced to defend an action in Kimberley, the seat of the
High Court.
Nedbank
accepts that in that instance it would be competent for the
High Court to transfer the matter to the Magistrate’s Court.
FirstRand Bank’s
submissions
[20]
In certain
respects, the submissions of FirstRand Bank overlap with some of the
submissions by the other banks. I will highlight
a few of its
submissions. It submits that the legislative framework that permits
concurrent jurisdiction in our law and the mandatory
jurisdiction
principle, which is consonant with the imperatives of the
Constitution, facilitates the widest possible pool for the
exercise
of the right of access to courts. Relying on
Bester
,
[15]
it argues against denying litigants court access because of congested
rolls that hamper the proper functioning of courts.
[16]
Rather, a solution for such congestion must be found elsewhere.
[17]
[21]
FirstRand Bank concludes that the default rule advocated by the SAHRC
would serve to limit
the myriad of courts to which plaintiffs and
defendants have access. It submits that the proposed rule by the
SAHRC accordingly
constitutes a limitation of the section 34
right. FirstRand Bank contends that the
dominus litis
principle is consistent with section 34.
The Pretoria Society of
Advocates’ submissions
[22]
The upshot of the Pretoria Society of Advocates’ submissions is
that the approach
adopted by the High Court in the present
matter constitutes a limitation of access to court.
Jurisdiction
and leave to appeal
[23]
The issues raised above are certainly of a constitutional nature, and
I need say no more.
Thus, our constitutional jurisdiction is engaged.
I must mention that in the Supreme Court of Appeal, the appeal
in this matter
was heard simultaneously with an appeal emanating from
the Eastern Cape Division of the High Court. Plainly – like the
Gauteng Division
– that High Court is also experiencing a
deluge of civil claims in respect of which Magistrates’ Courts
have concurrent
jurisdiction. I am sure that the Gauteng and the
Eastern Cape Divisions of the High Court are not outliers. Other
Divisions
are likely in the same boat. Most definitely, this makes it
imperative for us to pronounce on this issue for High Courts to
know how to handle the difficult position they are faced with. Also,
the SAHRC raises some cogent arguments, which do have reasonable
prospects of success. Thus, it is in the interests of justice that
leave to appeal be granted.
The
mandatory jurisdiction principle
[24]
An issue
that bears relevance to the mandatory jurisdiction principle is the
meaning of section 169(1) of the Constitution and the
implications of
that section to the issue at hand. Does it mean that the High Court
is at liberty not to entertain matters falling
within its
jurisdiction? As indicated above, the SAHRC answers this question in
the affirmative. At the centre of its proposition
was the idea that
the word “may” tells us that the section is
permissive:
[18]
the High Court
“may”, not “must”. And, as I said, the SAHRC
contends that this interpretation is true of
the provisions
conferring jurisdiction on all Superior Courts. That means “may”
in the sections conferring jurisdiction
on the High Court
(section 169(1)), the Supreme Court of Appeal (section 168(3))
and the Constitutional Court (section
167(3)) affords these
Courts a discretion. This contention must also apply to section 170
of the Constitution, which provides
that, amongst others,
Magistrates’ Courts “may decide any matter
determined by an Act of Parliament”. One
wonders what court,
other than the Supreme Court of Appeal, could hear
appeals that fall to be determined by it,
if it could exercise a
discretion and refuse to entertain them.
[25]
What of the matters falling within the Constitutional Court’s
exclusive jurisdiction
in terms of section 167(4) of the
Constitution? This section provides that “[o]nly the
Constitutional Court
may
”, and it then itemises what
falls under the exclusive jurisdiction of this Court. If the SAHRC’s
argument is correct,
“may” in section 167(4) must
mean the same thing as “may” in section 167(3). This then
raises the
question: how would a dispute falling within the exclusive
jurisdiction of this Court ever be determined if – through
the exercise of discretion – this Court could refuse to
entertain such dispute? One could come up with permutations
applicable
to the other Courts that enjoy jurisdiction under the
Constitution.
[26]
These are
not only imponderables; they point to the unpersuasive nature of
the SAHRC’s interpretation. Thus, the SAHRC’s
argument founded on “may” does not gain traction. How
then must we interpret section 169(1)? That section serves to
confer
a power on the High Court to entertain matters falling under the
categories set out in paragraphs (a) and (b) of the section.
[19]
Paragraph (a) concerns constitutional matters. Paragraph (b) is about
non constitutional matters (“any other matters”).
As
Nedbank submitted, this is open ended. It tells us nothing about
persons over which and in respect of what physical area
of the
country a particular Division of the High Court has jurisdiction. As
Makgoka JA says in a concurring judgment in
Mhlongo
(
Mhlongo
concurrence),
the point of reference for determining whether the court has
jurisdiction is “s[ection] 21 of the Superior
Courts Act, which
regulates the jurisdiction of the various divisions of the High Court
over persons and in relation to matters”.
[20]
[27]
The imponderables serve to show that it is unsurprising that, as far
back as 1938, Schreiner J
adopted the position that—
“
[o]n principle it
seems to me that in general a Court is bound to entertain proceedings
that fall within its jurisdiction . . .
. But apart from such cases
and apart from the exercise of the Court’s inherent
jurisdiction to refuse to entertain proceedings
which amount to an
abuse of its process . . . . I think that there is no power to refuse
to hear a matter which is within the Court’s
jurisdiction. The
discretion which the Court has in regard to costs provides a powerful
deterrent against the bringing of proceedings
in the Supreme Court
which might more conveniently have been brought in the
Magistrate’s Court.”
[21]
[28]
Likewise,
in
Agri
Wire
,
the Supreme Court of Appeal held that “
our
courts are not entitled to decline to hear cases properly brought
before them in the exercise of their jurisdiction”.
[22]
[29]
The assumption of jurisdiction should not be confused with the manner
in which a court
decides to exercise its jurisdiction. There is no
discretionary power to decline the assumption of jurisdiction over a
matter within
the jurisdiction of a court. But how a court decides to
exercise the jurisdiction it enjoys is a separate issue. That issue
includes
considerations as to whether in exceptional circumstances
jurisdiction is not exercised by reason of, for example, abuse of
process
or the stay of proceedings pending some other form of dispute
resolution, or on grounds of comity. In certain special
circumstances,
a South African court may take the view that
considerations of comity dictate that a matter is best left for
adjudication by a
foreign court, which has a closer connection to the
matter.
[30]
What of the SAHRC’s attempt at showing the existence of the
discretion it is advocating
by relying on the fact that this Court
may dismiss an application for leave to appeal on the basis that it
is not in the interests
of justice to grant leave? That is a bad
example because this Court actually does entertain the application
for leave to appeal.
In doing so, it then refuses leave in accordance
with an applicable rule of substantive law which is to the effect
that leave is
not granted if the interests of justice do not dictate
that it be granted. That outcome is the conclusion of the process of
entertaining
an application for leave to appeal. So, the Court does
not refuse to exercise its jurisdiction. It does the opposite: it
exercises
its jurisdiction. And, having done so, it dismisses the
application. That is a decision reached on the merits of the
application
in accordance with what may properly be considered in
determining such an application. What this Court does not get to
entertain
is the appeal. That, of course, is the natural consequence
of the refusal of leave. So, the SAHRC’s argument in this
regard
must fail.
[31]
Does the
right of access to court alter this approach? Subject to what I will
say shortly, I do not think so.
Mukaddam
says “
the
guarantee in section 34 of the Constitution does not include the
choice of . . . forum in which access to courts is to
be
exercised”.
[23]
I must
say though that this statement of law is stated in general terms and
could not have been intended to be absolute. For although
it is for
the plaintiff – and not the defendant – to choose the
court, the defendant may nevertheless be able to point
out to the
court that it will not be able to provide meaningful access to court,
a right guaranteed in the Constitution. Indeed,
even
Goldberg
,
the leading case on this subject in the pre-constitutional era, was
not absolutist in its formulation of the principle. It had
a
qualification.
Here it is: “
in
general
a court is bound to entertain proceedings that fall within its
jurisdiction”.
[24]
(Emphasis added.) The words “in general” are an
indication that there are exceptions to the rule. Indeed, the Court
mentioned an exception, which is that in the exercise of its inherent
jurisdiction, the High Court may refuse to entertain
proceedings
which amount to an abuse of its process.
[32]
Surely, this is but one example. There may be others
which – depending
on their nature – may also
warrant a departure from the mandatory jurisdiction principle. One
that readily comes to mind
is a situation where, without a doubt, a
defendant will effectively be denied access to court if they are
forced to defend an action
in a faraway High Court where –
because of the distance and attendant costs – they
are unable to defend
it, whereas they would be able to defend it in
the nearby Magistrate’s Court. Of relevance in this regard is
the Kimberley
example posited by the SAHRC. A development of the
common law mandatory jurisdiction rule (not the creation of a new
rule
that is at odds with it) must be cognisant of this additional
exception. That is, it must be within the High Court’s power
to
refuse to entertain a matter of this nature and to insist that it be
litigated in the Magistrate’s Court that enjoys concurrent
jurisdiction. This approach is consonant with section 8 of the
Constitution, which provides that the Bill of Rights (the right
of
access to court under section 34, in this instance) “binds
the legislature, the executive, the judiciary and
all organs of
state”.
[33]
As I
said, the SAHRC does not agree with the Full Court that litigating in
the High Court where one could have litigated in
the
Magistrate’s Court automatically constitutes an abuse of the
process of court. This point is well-made. The SAHRC submits,
instead, that the High Court must be satisfied in each instance that
the litigation in issue is, indeed, an abuse of process or
constitutes an infringement of the right of access to court, in which
event it may then not entertain the matter.
[25]
Obviously, that case by case approach cannot satisfy the
SAHRC, which is plainly opposed to the idea of matters falling
within
the jurisdiction of the Magistrate’ Court being routinely
litigated in the High Court.
[34]
The SAHRC then makes the submission that the High Court’s
exercise of discretion
must create a default rule to the effect that
all matters falling within the concurrent jurisdiction of the High
Court and Magistrate’s
Court must be litigated in the latter
Court. The exception is that
if a litigant wants
to bring a case that falls within the jurisdiction of the
Magistrate’s Court before the High Court
and it is
unopposed, the litigant must persuade the High Court that there is a
justification why that Court should hear the case.
The SAHRC
justifies the creation of this default rule on the basis that a case
involving an unrepresented defendant, this being
a common feature in
bank debt collection matters, “
does not lend
itself to a case-by-case judicial discretion
”.
[35]
I do not quite see how courts can create
such a rule. The SAHRC submits that just like courts created the
mandatory jurisdiction
principle, which is a common law rule, they
can also create the default rule. This misses the point. The law
affords the High Court
the power to entertain matters in respect
of which the Magistrate’s Court also has jurisdiction. All
that the mandatory
jurisdiction principle says is that the High Court
cannot run away from matters that fall within its jurisdiction. If a
matter
over which it has jurisdiction is brought before it, it must
exercise that jurisdiction. Of course, that is subject to the
exceptions
that are recognised by the principle itself. By contrast,
the effect of the proposed default rule is the creation of a
substantive
rule of jurisdiction to the effect that the High Court
will ordinarily defer to the Magistrate’s Court unless
there
is good reason to accept jurisdiction. That, when the law
affords it unqualified concurrent jurisdiction.
[36]
A constant refrain in the argument of the SAHRC has been the risk to
the institutional
efficiency of the High Court, as well as to the
access to justice guarantees in section 34. Both concerns are
valid. This
notwithstanding, the question of jurisdiction cannot
be moderated by those concerns beyond what I suggest in this
judgment.
A court either has jurisdiction or it does not and that
question is answered by reference, in this instance, to section 21 of
the
Superior Courts Act. Absent a constitutional challenge to section
21, the division of labour mandated by the Legislature between
courts
in respect of their jurisdiction must be honoured. For these reasons,
the default position advocated by the SAHRC is not
possible.
The
rule 39(22) argument
[37]
It was suggested by Nedbank that rule 39(22) provides a mechanism for
the transfer of matters
from the High Court to the Magistrates’
Courts in the interests of justice. On this basis, Nedbank submits
that there is
no need to interfere with the mandatory jurisdiction
principle. This argument is unsustainable as rule 39(22)
contemplates
only a transfer from the High Court to the Magistrates’
Court if the parties have consented to the transfer. It does not
involve the exercise of any judicial discretion. It is an
entitlement, if the requirements set by the rule are met: “[b]y
consent the parties to a trial shall be entitled . . . to have the
cause transferred”. In the absence of consent, the rule
is of
no assistance to a party who seeks to have a cause transferred to a
Magistrate’s Court, nor does it provide a
legitimate
escape route for overburdened Divisions of the High Court.
Practice
directives by Judges President
[38]
As indicated, the SAHRC argues that, but for the
Supreme Court of Appeal
judgment, the problem at hand
could be addressed by the issuance of practice directives by Judges
President. A court’s inherent
power in terms of section 173 of
the Constitution to protect and regulate its process does not
include a power to effect changes
to legislation or the Constitution.
In the context of what is at issue, this judgment explains the
substantive legal rules on jurisdiction.
Judges President may
only issue practice directives that accord with those rules.
The
Mhlongo
concurrence says:
“
Axiomatically, [a
court] cannot use the section 173 power to oust jurisdiction which it
ordinarily has. The same applies with equal
force to the right of
access to courts guaranteed in section 34. The section has no place
to the enquiry as to whether or not a
court has jurisdiction. No
reasons of equity could ever clothe a court with jurisdiction it does
not have.”
[26]
Harms
says inherent jurisdiction “does not include the power, for the
sake of convenience, to refuse to hear a litigant or
entertain
proceedings in a matter within its jurisdiction and properly before
the court”.
[27]
[39]
In sum, the SAHRC’s submissions on this issue do not assist.
Rationale
for the Full Court set-down
[40]
The High Court judgment says the
consequence of setting down in the High Court matters in respect
of which Magistrates’
Courts have jurisdiction is that—
“
the court roll in
the Gauteng Division, Pretoria, is congested resulting in matters
which legitimately belong to the High Court
being edged out and
their adjudication delayed. Further, it increases the workload for
Judges causing a delay in handing down
judgments and the waiting
period for dates of hearing. This results in the adage ‘justice
delayed is justice denied’
becoming a sad reality in this
Division.”
[28]
[41]
The
High Court then says this and the fact that impecunious litigants who
are forced to travel long distances at huge expense to
defend the
actions in the High Court or “opt” for not defending
because they cannot afford to, thus being denied
access to court, are
what motivated the Judge President to issue the practice
directive.
[29]
Plainly, the
difficulties highlighted by the High Court have serious adverse
consequences for the administration of justice in
the High Court. And
these difficulties are not new. Some 38 years ago, Coetzee DJP had
this to say in
Shiba
:
“
[A]
number of Judges in this Local Division alone . . . are required to
deal with what is in essence magistrate’s court work.
How long
this process can still continue before grave harm is done to the
administration of justice in this Division, is anybody’s
guess.
One thing is certain, this does not lie in the too distant future and
something will have to be done pretty soon before,
locally, its
wheels start grinding to a standstill. For now we have this latest
development, which has great potential seriously
to exacerbate these
problems. If left unchecked, it could become one of the last straws.
It becomes a question of weighing up the
desirability of keeping open
the Supreme Court’s doors for all causes at all times, which is
something that every Judge strains
to the utmost to maintain, against
the danger of fouling up the cogs of this very machine which must be
kept in reasonable running
order if it is to fulfil properly its
function of performing very essential public work. Those of my
Colleagues with whom I have
been able to discuss this question are
unanimous that it is imperative to do something drastic to stop this
deliberate policy,
which (unwittingly I believe) is calculated to
accelerate greatly the rate of the erosion.”
[30]
[42]
As the High Court judgment in the instant matter
shows, the problem has become worse. Therefore, although our final
decision does
not accept that of the High Court, we cannot make
light of the real problem that Court has highlighted. In the main,
that
is the problem of clogging up High Court rolls with matters
falling within the jurisdiction of the Magistrate’s Court.
Also,
as I said when considering whether leave to appeal should be
granted,
the Gauteng Division and the Eastern Cape Division,
another Division where the central issue in this matter has been
considered,
are not outliers. So, we have a huge problem on our
hands; a problem which – as the High Court says in this
matter –
manifests in inordinate delays in the hearing and
finalisation of matters in the High Court. That, of course, is a blot
on the
administration of justice.
[43]
Also, as typified by the matters which are the subject of these
proceedings, many of the
cases falling within the jurisdiction of
Magistrates’ Courts which are litigated by banks in the High
Court involve foreclosures.
Rule 46A(2)(b) of the Uniform Rules of
Court provides that “[a] court shall not authorise execution
against immovable property
which is the primary residence of a
judgment debtor unless the court, having considered all relevant
factors, considers that execution
against such property is
warranted”. These factors must surely involve in part a
consideration of the defendant’s personal,
family and other
circumstances. Where a defendant is not present at court, it is only
the information from the bank that is available
and the task required
by rule 46A becomes more difficult, if not impossible. How does
a court make the assessment in the absence
of the party who will be
most affected by the proposed order? To most people their home is
their most valuable asset. And yet indications
are that geography and
money do prevent some defendants from attending court (and this is an
unfortunate reality in our country)
to fight for the retention of
their homes.
[44]
Some
legislative steps that appear to bear relevance to these concerns are
afoot. A Lower Courts Bill
[31]
has been published for public comment. Section 22(4) of the Bill
appears broadly to make provision for what the SAHRC submitted
should
be enunciated by courts as a default position. And I use “appears”
advisedly because I do not want to pronounce
on the implications of
the section prematurely. The section provides:
“
If a plaintiff is
of the view that an action, the amount of which claim falls within
the jurisdiction of a District Court . . .
should more appropriately
be heard in a Regional Court or a Division of the High Court,
that plaintiff must—
(a)
apply to the Regional Court or the Division of the High Court in
which it is intended to
institute the action, and according to the
applicable rules in respect of applications in that court, for leave
to institute the
action in that court; and
(b)
set out reasonable grounds why the action should be heard in that
court.”
[45]
I do not purport to be exhaustive on the
provisions of the Bill that may be of relevance to the concerns
expressed by the Full Court.
Notwithstanding these legislative
steps, I think it proper that this judgment be brought to the
attention of the Minister of
Justice and Correctional Services
in case he finds some of the pronouncements that this Court makes of
relevance to the legislative
process.
[46]
In conclusion, the appeal must fail.
Costs
[47]
The banks indicated that they are not asking for costs against the
SAHRC. So, no costs
order will be made.
Order
[48]
The following order is made:
1.
Leave to appeal is granted.
2.
The appeal is dismissed
.
3.
The Registrar of this Court must furnish
a copy of this judgment to the Minister of Justice and
Correctional Services.
For
the Applicant:
M Chaskalson SC, E Webber and L Makapela instructed by Legal
Resources Centre
For
the First Respondent:
K Hofmyer SC and P Ngcongo instructed
by Edward Nathan Sonnebergs
Incorporated
For
the Second Respondent: A
Crockrell SC and N Luthuli instructed by Cliffe Decker Hofmeyr
Incorporated
For
the Third Respondent:
P G Cilliers SC and A P Ellis instructed
by Petzer, Du Toit and
Ramulifho Attorneys
For the Amicus
Curiae:
A Louw
SC, S Davies and S van der Walt instructed by Pretoria
Society of Advocates
[1]
Nedbank
Ltd v Thobejane and Similar Matters
2019 (1) SA 594
(GP) (High Court judgment) at para 1 sets out the
issue thus:
“
This
matter raises concerns that are twofold. The first is the ever
increasing tendency by litigants, mainly banks and other commercial
institutions, to enrol in the High Court, foreclosure applications
with amounts falling within the jurisdiction of the Magistrates’
Courts. Secondly, litigants taking advantage of concurrent
jurisdiction between the Gauteng Division, Pretoria and the Gauteng
Local Division, Johannesburg, by enrolling matters in Pretoria even
where it involves parties located within the jurisdiction
of the
Gauteng Local Division, Johannesburg.”
What
I refer to as a related question in the text is covered by
section
27(1)
of the
Superior Courts Act 10 of 2013
. Save for what I say in
n 22 below, I do not find it necessary to deal with this beyond what
this section provides.
[2]
I
have deliberately not itemised a question that required the parties
to address the question why the High Court should entertain
matters that fall within the jurisdiction of the Magistrates’
Court. I think this question is closely bound up with the
first two
that I have itemised.
[3]
High Court judgment above n 1 at paras 82-90.
[4]
10 of 2013.
[5]
Standard
Bank of SA Ltd v Thobejane; Standard Bank of SA Ltd v Gqirana N.O.
[2021]
ZASCA 92
;
2021 (6) SA 403
(SCA) at para16 (Supreme Court of Appeal
judgment).
[6]
Agri
Wire (Pty) Ltd v Commissioner of the Competition Commission
[2012] ZASCA 134
;
2013 (5) SA 484
(SCA).
[7]
See
S v
Boesak
[2000] ZACC 25
;
2001 (1) SA 912
(CC);
2001 (1) BCLR 36
(CC) at paras
10-12.
[8]
Goldberg
v Goldberg
1938
WLD 83.
[9]
In support, the SAHRC draws attention to the fact that in some cases
the arrears were relatively small amounts. The fact that
–
despite the real risk of each defendant losing their most valuable
asset, a home – they had failed to pay was indicative
of their
parlous financial circumstances. The highest amount of arrears was
R20 782.10 and the lowest was R7 772.18.
[10]
Section 34 of the Constitution provides that—
“
[e]veryone
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.”
[11]
Section 173 of the Constitution provides:
“
The
Constitutional Court, the Supreme Court of Appeal and the High Court
of South Africa each has the inherent power to protect
and
regulate their own process, and to develop the common law, taking
into account the interests of justice.”
[12]
Supreme Court of Appeal judgment above n 5 at para 26 citing
Koch
v Realty Corporation of South Africa
1918 TPD 356
at 359.
[13]
Mukaddam
v
Pioneer Foods (Pty) Ltd
[2013] ZACC 23
;
2013 (5) SA 89
(CC);
2013 (10) BCLR 1135
(CC)
at
para 1.
[14]
Rule
39(22) provides:
“
By
consent the parties to a trial shall be entitled, at any time,
before trial, on written application to a judge through the
registrar, to have the cause transferred to the magistrate’s
court: Provided that the matter is one within the jurisdiction
of
the latter court whether by way of consent or otherwise
.”
[15]
Standard
Credit Corporation Ltd v Bester
1987 (1) SA 812 (W).
[16]
Id at 820I.
[17]
Id.
[18]
Section 169(1) provides:
“
The
High Court of South Africa may decide—
(a)
any constitutional matter except a matter that—
(i)
the Constitutional Court has agreed to hear directly in terms of
section 167(6)(a);
or
(ii)
is assigned by an Act of Parliament to another court of a status
similar
to the High Court of South Africa; and
(b)
any other matter not assigned to another court by an Act of
Parliament.”
[19]
In
Van
Rooyen v S (General Council of the Bar of South Africa Intervening)
[2002] ZACC 8
;
2002 (5) SA 246
;
2002 (8) BCLR 810
at para 181 this
Court held that “may” conferred a power coupled with a
duty to exercise it. That decision was applied
by this Court in
South
African Police Service v Public Servants Association
[2006] ZACC 18;
2007 (3) SA 521
(CC);
[2007] 5 BLLR 383
(CC) at
paras 15-6.
[20]
Mhlongo
v Mokoena N.O.
[2022] ZASCA 78
;
2022 (6) SA 129
(SCA) at para 19. See also
section 21
of the
Superior Courts Act, which
provides:
“
(1)
A division has jurisdiction over all persons residing or being in,
and in relation to
all causes arising and all offences triable
within, its area of jurisdiction and all other matters of which it
may according
to law take cognisance, and has the power—
(a)
to hear and determine appeals from all Magistrates’ Courts
within its area
of jurisdiction;
(b)
to review the proceedings of all such courts;
(c)
in its discretion, and at the instance of any interested person, to
enquire into
and determine any existing, future or contingent right
or obligation, notwithstanding that such person cannot claim any
relief
consequential upon the determination.
(2)
A Division also has jurisdiction over any person residing or being
outside its area
of jurisdiction who is joined as a party to any
cause in relation to which such court has jurisdiction or who in
terms of a third
party notice becomes a party to such a cause, if
the said person resides or is within the area of jurisdiction of any
other Division.
(3)
Subject to
section 28
and the powers granted under section 4 of the
Admiralty Jurisdiction Regulation Act, 1983 (Act 105 of 1983), any
Division may
issue an order for attachment of property to confirm
jurisdiction.”
[21]
Goldberg
above
n 8 at 85-6.
[22]
Agri
Wire
above
n 6 at para 19. More fully this part of the judgment says “[s]
ave
in admiralty matters, our law does not recognise the doctrine
of
forum
non conveniens
,
and our courts are not entitled to decline to hear cases properly
brought before them in the exercise of their jurisdiction”
.
In the text, I have deliberately left out the first part of the
quote because I think some qualification is necessary. I do
not
believe that we can be as categorical as
Agri Wire
is on the non-recognition of the doctrine of
forum
non conveniens
outside of admiralty matters. The exception of admiralty matters
that
Agri
Wire
recognises is provided for in section 7(1)(a) of the Admiralty
Jurisdiction Regulation Act 105 of 1983. This section provides:
“
A
court may decline to exercise its admiralty jurisdiction in any
proceedings instituted or to be instituted, if it is of the
opinion
that any other court in the Republic or any other court or any
arbitrator, tribunal or body elsewhere will exercise jurisdiction
in
respect of the said proceedings and that it is more appropriate that
the proceedings be adjudicated upon by any such other
court or by
such arbitrator, tribunal or body.”
So,
a South African admiralty court may decline to exercise jurisdiction
even in instances where another South African admiralty
court
will exercise jurisdiction and it is more appropriate that the
proceedings be adjudicated by that other court. In terms
of the
section,
forum non conveniens
also applies intra-nationally.
Interestingly,
section 27(1)(b)
of the
Superior Courts Act
provides
for a similar species of
forum non conveniens
(or
should I say
forum conveniens
). This section provides:
“
If
any proceedings have been instituted in a Division [of the High
Court] or at a seat of a Division, and it appears to the court
that
such proceedings—
(b)
would be more conveniently or more appropriately heard or
determined—
(i)
at another seat of that Division; or
(ii)
by another Division,
that
court may, upon application by any party thereto and after hearing
all other parties thereto, order such proceedings to be
removed to
that other Division or seat, as the case may be.”
A
similarly worded provision, which was applicable when
Agri
Wire
was decided, was
section 9(1)
of the now repealed Supreme Court Act 59 of 1959. Also worth noting
is the fact that t
here are many instances which do not
involve a denial of jurisdiction but an exercise of jurisdiction.
One example is a stay pending
an arbitration or mediation. Another
is where, in special circumstances and outside of admiralty matters,
a South African court,
considers, on grounds of comity, a foreign
court to have a closer connection to the matter (see, for example
Bid Industrial Holdings (Pty) Ltd v Strang
[2007] ZASCA
144
;
2008 (3) SA 355
(SCA) at para 59).
[23]
Mukaddam
above
n 13 at para 28.
[24]
Goldberg
above
n 8 at 85.
[25]
In
Bester
above
n 15 at 813A the Court held that an abuse of process could be said,
in general terms, to occur when a court process “is
used by a
litigant for a purpose for which it was not intended or designed, to
the prejudice or potential prejudice of the other
party to the
proceedings”. A collection of authorities on, and a few
examples of what constitutes an, abuse of process
are to be found in
Price
Waterhouse Coopers Inc v National Potato Co Operative Ltd
[2004] ZASCA 6
;
2004 (6) SA 66
(SCA) at para 50.
[26]
Mhlongo
above n 20 at para 20.
[27]
Harms
Civil
Procedure in the Superior Courts
3rd ed (LexisNexis Butterworths, Durban 2016) at A3.3.
[28]
High
Court judgment above n 1 at para 2.
[29]
Id at para 5.
[30]
Standard
Bank of South Africa v Shiba
,
Standard
Bank v Van den Berg
1984
(1) SA 153
(W) at 156F 157A.
[31]
Lower Courts Bill (X-2022), 29 April 2022. Available at
https://pmg.org.za/bill/1079/
.
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