Case Law[2024] ZASCA 26South Africa
SAP SE v Systems Applications Consultants (Pty) Ltd t/a Securinfo and Another (376/2022) [2024] ZASCA 26; [2024] 2 All SA 639 (SCA); 2024 (5) SA 514 (SCA) (20 March 2024)
Supreme Court of Appeal of South Africa
20 March 2024
Headnotes
Summary: Application for recusal – reasonable apprehension of bias – trial judge – misconceiving the issue in the evidence – preventing counsel from properly developing a line of cross-examination – irritatedly abstracting himself from the hearing and directing that the cross-examination continue in his absence – test satisfied.
Judgment
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# South Africa: Supreme Court of Appeal
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## SAP SE v Systems Applications Consultants (Pty) Ltd t/a Securinfo and Another (376/2022) [2024] ZASCA 26; [2024] 2 All SA 639 (SCA); 2024 (5) SA 514 (SCA) (20 March 2024)
SAP SE v Systems Applications Consultants (Pty) Ltd t/a Securinfo and Another (376/2022) [2024] ZASCA 26; [2024] 2 All SA 639 (SCA); 2024 (5) SA 514 (SCA) (20 March 2024)
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sino date 20 March 2024
FLYNOTES:
PROFESSION – Judge –
Recusal
–
Reasonable
apprehension of bias – Trial judge misconceiving the issue
in the evidence – Preventing counsel from
properly
developing a line of cross-examination – Irritatedly
abstracting himself from the hearing and directing that
the
cross-examination continue in his absence – Reasonable
apprehension that judge has shown himself to have closed
his mind
to evidence and submissions of counsel – Belated improbable
explanation by judge for his abrupt departure
serves simply to
exacerbate the apprehension – Test satisfied.
THE SUPREME COURT OF
APPEAL OF SOUTH AFRICA
### JUDGMENT
JUDGMENT
Reportable
Case
no: 376/2022
In the matter between:
SAP SE
APPELLANT
and
SYSTEMS APPLICATIONS
CONSULTANTS
(PTY) LTD t/a
SECURINFO
FIRST RESPONDENT
UNGANI INVESTMENTS
(PTY) LTD
SECOND RESPONDENT
Neutral
citation:
SAP
SE v Systems Applications Consultants (Pty) Ltd t/a Securinfo and
Another
(Case no 376/2022)
[2024] ZASCA
26
(20 March 2024)
Coram:
PONNAN, GORVEN and MEYER JJA and KOEN and BAARTMAN
AJJA
Heard
:
20
& 21 February 2024
Delivered
:
20
March 2024
Summary:
Application for recusal –
reasonable apprehension of bias – trial judge –
misconceiving the issue in the evidence
– preventing counsel
from properly developing a line of cross-examination –
irritatedly abstracting himself from the
hearing and directing that
the cross-examination continue in his absence – test
satisfied.
ORDER
On
appeal from
:
Gauteng Division of the High Court,
Johannesburg (Tsoka J, sitting as court of first instance):
1
The application for leave to appeal succeeds.
2
The appeal is upheld.
3
The first and second respondents are directed, jointly and severally,
to
pay the costs of the application for leave to appeal and of the
appeal, such costs to include the costs of two counsel.
4
The orders of the court
a quo
dated 13 November 2020 and 7
December 2021 under case number 20378/2008 are set aside and replaced
with the following:
‘
a.
The application for recusal is granted and the first and second
respondents in the
recusal application are directed, jointly and
severally, to pay the costs of the application, including the costs
of two counsel;
b.
The plaintiff and the second defendant are directed, jointly and
severally, to
pay the costs of the trial, including the costs
reserved by Satchwell J on 25 May 2011, such costs to include the
costs of two
counsel and the qualifying costs of the first
defendant’s experts, Professors Wagner and Wainer and Messrs
Burke and O’Neill.’
JUDGMENT
Ponnan JA (Gorven and
Meyer JJA and Koen and Baartman AJJA concurring):
[1]
In 2008, the first respondent, Systems Applications Consultants (Pty)
Limited, trading
as Securinfo (SAC), a local software development
company, caused summons to be issued out of the Gauteng Division of
the High Court,
Johannesburg (the high court) for damages in the
amount of €609 803 145 against the appellant, Systems
Applications
Products AG (since renamed SAP SE) (SAP), a German
global software company involved in the development and sale of
software systems
application products. SAC’s assertion, denied
in general terms by SAP, is that it had concluded a Software
Distribution Agreement
(the SDA) with a German IT consulting company,
SAP Systems Integration (SAPSI), in respect of a software security
product (Securinfo)
that had been developed by it. The broad thrust
of SAC’s case is that, subsequent thereto, SAP acquired a
controlling share
in SAPSI and an interest in a competing security
product known as VIRSA and thereafter unlawfully interfered in the
SDA.
[2]
In the particulars of claim (as amended) annexed to the summons, it
was alleged on
behalf of SAC that:
‘
12.
In terms of the SDA:
12.1.
SAPSI was obligated to use all reasonable efforts to promote and
extend the market for the Plaintiff’s
product to all potential
licensees and to work diligently to obtain orders for the Plaintiff’s
product;
12.2.
SAPSI undertook that it would not during the currency of the SDA
market or distribute, either directly or
through intermediaries, any
products directly or indirectly competing with the Plaintiff’s
product;
12.3.
The SDA would endure for a period of 3 years.
12A
The Plaintiff had an established and operating business in exploiting
its Securinfo products .
. . including in particular with SAPSI . . .
(“the Plaintiff’s business”).
13.
From August 2004
alternatively
from after August 2004 but by
March 2005 at the latest, the Defendant had knowledge of the
conclusion of the SDA between the Plaintiff
and SAPSI and of the
Plaintiff’s business.
14.
The Defendant was at all material times under a legal duty:
14.1.
not to intentionally and unlawfully interfere with the
contractual relationship between SAPSI and the Plaintiff
with the
intention of causing the Plaintiff a loss in terms of section 826 of
the German Civil Code (“the BGB”); and
14.2.
not to intentionally
alternatively
negligently and unlawfully
injure the Plaintiff’s business in terms of section 823(1) of
the BGB.
15.
Between February 2005 and the expiry date of the SDA and in breach of
the aforesaid legal
duties, the Defendant acting directly and/or
through its wholly owned subsidiaries:
15.1.
ceased its support and promotion of the SAPSI-Securinfo partnership
based on the SDA (or at all) and the
sale of the Plaintiff’s
product to SAP customers globally;
15.2.
promoted the marketing and sale of the IT security product and/or
products produced by Virsa Systems Inc,
a company then incorporated
in accordance with the laws of the United States of America (such
product and/or products hereafter
referred to as “VIRSA”)
by all its subsidiaries, including SAPSI, and discouraged the sale of
the Plaintiff’s
product and other similar or competing
products.
. .
.
16.
But for the actions of the Defendant, SAPSI would not have breached
the SDA and would have
continued implementing the business
relationship with the Plaintiff as set out . . . above.
17.
The Defendant foresaw and intended that its said conduct in
interfering with and/or causing
SAPSI to breach the SDA would cause a
loss to the Plaintiff, alternatively, the Defendant with reckless
regard for the consequence
of causing Plaintiff a loss, nonetheless
interfered with and/or caused SAPSI to breach the SDA as aforesaid
and the Defendant is
accordingly liable to compensate the Plaintiff
for such loss in terms of section 826 of the BGB above
alternatively
the Defendant’s conduct described in paragraph 15 above
constituted the unlawful and intentional
alternatively
negligent
injuring of the Plaintiff’s business and the Defendant is
accordingly liable to compensate the Plaintiff for the
loss sustained
in consequence of such injury in terms of section 823(1) of the BGB
above.
18.
By reason of the aforesaid breaches of its legal duties by the
Defendant, the Plaintiff
suffered a direct loss of sales of its
security software, which, but for the intentional and unlawful
conduct of the Defendant,
it would otherwise have made.’
[3]
SAP filed several special pleas and a plea over, inter alia, putting
in issue the
conclusion of the alleged SDA. It also denied having
unlawfully interfered with the SDA and disputed liability for the
damages
claimed.
The issues of
the merits and quantum having been separated, the matter proceeded to
trial in respect of the former before Tsoka
J. The trial commenced in
October 2020 and ran in total for some 74 days, generating a record
in excess of 60 volumes comprising
some 12 000 pages. In the
course of the trial, SAC ran out of funds and had to turn to the
second respondent, Ungani Investments
(Pty) Limited (Ungani), for
funding to enable it to continue to prosecute the claims. Ungani came
to be joined by consent as the
second defendant to the proceedings in
its admitted capacity as the funder of SAC’s litigation against
SAP to meet any order
for costs that may issue against SAC.
[4]
The hearing was conducted virtually on the Zoom platform in
accordance with the then
prevailing practice in the high court as a
result of the COVID 19 pandemic. Throughout the proceedings, all of
the participants
were connected to the same virtual meeting, which
was designed, as closely as possible, to resemble proceedings in open
court.
The trial was recorded (both audio and video) and transcribed
on a daily basis by RealTime Transcriptions. It was envisaged that
all the usual formalities and decorum of the court would be observed,
such as the judge and counsel were robed; the witnesses testified
under oath and, whilst the court was in session, the proceedings were
at all times to be presided over by the presiding judge,
who could be
observed on a video link and heard on an audio link.
[5]
On Friday, 6 November 2020, when the trial was into its 20
th
day and whilst one of SAC’s witnesses, Mr Mario Linkies, was
being cross-examined by counsel for SAP, the following occurred:
‘
MR
BADENHORST SC: So is your evidence, and let me just get clarity on
this once and for all, you are saying at the beginning Mr
Tattersall
asked for the signed agreement, and that means July/August 2004,
correct?
MR LINKIES: This could
be, yes, yes.
MR BADENHORST SC: And
then he asked you once, at a later time, but only once he did not ask
frequently, is that what you said?
MR LINKIES: He may have
asked me again but I am not sure (inaudible).
. . .
MR LINKIES: Yes, he may
have asked me, I do not recall it, but he may have asked me once or
twice or thrice, I am not sure, but
it was not a big issue, but he
certainly talked about the contract and the final signature, ja,
especially at the beginning; later
on, I do not think we talked about
that, but at the beginning I am sure we talked about this, because
for me it was also an issue
to get this done.
MR BADENHORST SC: . . .
We have found several indicators in the months from August to
February 2005, in every month there is an
indication of some issue
being raised concerning the signed agreement, it is either by Mr
Tattersall to you, or yourself raising
the issue with your
colleagues, and I will put to you that it is very likely that all
these instances are related back to your
and Mr Tattersall discussing
this problem of not having the signed contract . . .
. . . Then on the 21
September 2004 you wrote that email to your colleagues about
“Tattersall is ‘breathing down my
neck’”,
remember that?
MR LINKIES: Ja, ja, I saw
this email.
MR BADENHORST SC: And I
put to you that if one reads all the emails exchanged on that day
about that particular subject, it is obvious
that it was Mr
Tattersall who was indeed “breathing down your neck”. Do
you agree with me?
MR LINKIES: No, he was
not; again, I expressed and I used certain German wording to push my
own organisation, and I do this all
the time, but we informed Mr
Tattersall on the fact that he should not be worried. This we told
him all the time, and we informed
him that we are working based on
the SDA, but I was not a lawyer and I was not in charge of making
sure, or have a good understanding
if the contract had been legally
bound or not; for me it was clear that once Mr Ahrens told us it is
done and we got approval from
him, that we can work based on the SDA,
but what you are asking maybe about my understand of Mr Tattersall’s
understanding,
and I cannot comment on that, I can only tell you what
I have told Mr Tattersall, and maybe if Mr Tattersall was asking me
often,
but he did not ask me often, it was not an issue for him, but
it was an issue for me to make sure I get internally all the
signatures,
and that is why I was following up every few months,
every month even, this was just my way of doing it –
MR BADENHORST SC: Yes, Mr
Linkies, you have said this before, I just do not know why you keep
on going on about an issue that I
did not ask you about. My question
to you, what I am putting to you is simply that this email . . . that
is on the screen, of 21
September 2004 speaks for itself. The email
you wrote is in its terms saying, “I regret to have to follow
up again, but urgently
request the approval of the contract with
Securinfo, as we have had the details scrutinised by various
colleagues”, no doubt
you are referring to the internal
approval process, “There should be no further problems. Peter
Tattersall is ‘breathing
down my neck’, and I can quite
understand that Securinfo wants a definite statement on whether the
partnership with SAPSI
is now put on an official basis or whether we
do not have legal certainty. That of course has implications for our
collaboration.”
. . . And then the
crucial statement, I am therefore at present refraining from a
further conversation with Peter until the matter
is clarified on our
side . . . So, Mr Linkies, you have a very clear choice here before
His Lordship. You either have to own up
and say, yes, of course what
I wrote there is correctly recording the facts. Mr Tattersall was
breathing down my neck. He was asking
for the contract. As I said
numerous times later on the proceedings I showed you how you told Mr
Hoffman that Mr Tattersall was
asking at regular intervals for the
contract. Isn’t that what you said in December 2006?
MR LINKIES: I don’t
know what I said there, but certainly this text here is part of my
following up that the internal list
has been done. This is what I’m
also – what I always do. This was part of my job. And my
understanding at that time
and maybe even now is that a contract has
to be signed. This is my understanding
MR BADENHORST SC: Mr
Linkies, I’m sorry. You can go round and round my question. I
can assure you that –
. . .
. . . Now you’ve
seen the email. The question is, is your email correct or not?
MR LINKIES: My email at
that point is very, very clear. I wanted to push my own organisation
to make sure we have the in –
we are doing our internal tasks
but I used – of course I used some people. In that case I used
Peter Tattersall of Securinfo
to push my own people and this is
something I’m doing also with my kids you know. I do this –
those things. Maybe it’s
right, maybe wrong but this is what I
do.
MR BADENHORST SC: So is
what you’re saying is you were lying to your colleagues?
MR LINKIES: Why are you
saying I am lying? I don’t – I didn’t lie.
. . .
MR BADENHORST SC: But
then you must agree if you’re not – you will only not be
lying if in fact Mr Tattersall was sitting
on your neck because . . .
You’re saying to your colleagues, Manfred and Frank, that is
Manfred Wittmer and Frank Off, you’re
saying Peter Tattersall
is breathing down my neck. Now did – was he breathing down your
neck or not? If you’re saying
to His Lordship he was not
breathing down my neck then what you wrote there is a lie.
MR LINKIES: I pushed my
organisation –
COURT: Mr Badenhorst may
we proceed please and then you can argue that point. The question has
been answered repeatedly.
MR BADENHORST SC: M’Lord,
I am putting to the witness that he was lying in his email and he has
to –
COURT: He said the answer
is no. I was pushing my own organisation.
MR BADENHORST SC: But,
M’Lord, with great respect if he’s pushing his own
organisation by using –
COURT: Yes.
MR BADENHORST SC: A false
statement, I’m entitled to force him to answer it. It’s
not a matter of argument. It’s
a matter –
COURT: When you’ve
finished you’ll let me know. I’m taking a break.
MR BADENHORST SC: That is
now interesting. It is now 11:11.
[COURT
ADJOURNS
COURT RESUMES]
[11:14] COURT: I’m
back.
MR BADENHORST SC: M’Lord,
I just want to place on record that Your Lordship walked out of court
now, at about 11 minutes past
11, when Your Lordship simply announced
that you are simply taking a break and that we must let you know,
when I have finished.
COURT: You keep repeating
one question after the other, and you want a different answer.
MR BADENHORST SC: M’Lord,
with great respect, I would like to record that Your Lordship was
asking me about the questions
that I had been putting. I responded to
Your Lordship to say why I was putting the question and why it was
important for me to
get an answer from the witness and that I have
and am obliged in terms of high authority, namely the SARFU case to
put to the witness
when I will ultimately be arguing that he is a
lying witness and that –
COURT: That’s the
point, I say, I said that’s a point. May I do that.
MR BADENHORST SC: Yes,
but I have a more serious issue, M’Lord, that I have to raise
because it concerns the conduct of the
bench. Your Lordship was so
upset with me that is consistently with Your Lordship’s
constant attitude towards my side to
take a clearly one sided
approach to this matter. Your Lordship stormed out of Court and you
were so upset with me that you said
I must call you back when I have
finished and I wish to put, place that on record because it’s a
deeply concerning attitude
from the bench.
COURT: Please do so.
MR BADENHORST SC: I have
done so, M’Lord and the record will read for itself.
COURT: Yes.
MR BADENHORST SC: I
really hope, M’Lord, that we are engaged here in a very complex
and long matter and I am urging Your Lordship
to take a balanced view
and to treat both sides even handed. Your Lordship –
COURT: (Inaudible).
MR BADENHORST SC: M’Lord,
Your Lordship has taken a very clear sympathetic approach to Mr
Tattersall. You’d constantly,
constantly taken a very hostile
attitude to my questioning and to my approach to the matter and I
cannot understand it because
I’ve noted M’Lord for a very
long –
COURT: That is new to me.
. . .
MR BADENHORST SC: M’Lord,
I have noted my position and I would ask Your Lordship to take the
tea adjournment.
COURT: Yes, we will take
the tea adjournment. He said I’ve constantly been hostile.
MR BADENHORST SC: M’Lord,
I do not wish to say anything more, the record will speak for itself
and I am simply urging Your
Lordship to please adopt an even handed
approach to the parties in this matter. I do respectfully request
Your Lordship to patiently
await the case that we will present for
the defendant, the first defendant, and to give the first defendant
confidence that it
will have a hearing on equal terms before this
Court and that it will receive the attention that it deserves without
bias, fear
or favour.
COURT: Yes, (inaudible)
but I’ve said to you, you said, I took a – constantly
been hostile to your client’s case.
MR BADENHORST SC: That is
what I have said, M’Lord.
COURT: Yes. Is that
correct?
MR BADENHORST SC: M’Lord,
I’m afraid that is the impression that I have.
COURT: Sorry, no, no I
asked a different question. I’m not asking you about your
impression. Is that correct that I was hostile?
MR BADENHORST SC: M’Lord,
I have said what I have wanted to say and I’m not going to be
forced by Your Lordship to say
anything else. I have said what I
wanted to say and that is where I end.
COURT: And which is
(inaudible).
MR BADENHORST SC: Which
is what I said, M’Lord. Must I repeat it?
COURT: Yes.
MR BADENHORST SC: I have
the impression that Your Lordship has taken a very sympathetic view
towards the plaintiff’s case
and a very hostile approach
towards the defendant’s case. Your Lordship at one stage I may
remind you made the laconic remark
that, who are these defendants, do
they believe in the supernatural and that was at a stage as early as
the opening address. That
kind of remark M’Lord does not go
unnoticed, it has a deeply disturbing effect on a –
COURT: – it was
during argument where the defendant (inaudible).
MR BADENHORST SC: Why,
with the greatest respect, does the Court say those things to
belittle a very serious defence that the defendant
is pursuing in a
very large and complex case.
COURT: So, do you want me
to recuse myself, is that the indication?
MR BADENHORST SC: I have
no instructions M’Lord, as far as that is concerned.
COURT: You must take
instructions during the tea break?
MR BADENHORST SC: I
shall, M’Lord.
COURT: Thank you.
[COURT
ADJOURNS
COURT RESUMES]
[11:33] MR BADENHORST SC:
My Lord –
. . .
MR BADENHORST SC: My
Lord, may I report back. I’ve had an opportunity to only have a
very brief discussion with my instructing
attorney, and I will . . .
need to ask Your Lordship to allow me further time to take
instructions on Your Lordship’s question
to me and I would
propose M’Lord that we take the adjournment for the –
long adjournment now, until Monday morning,
and then I will have an
opportunity. My instructing client is in Germany. We obviously have
to explain the situation fully to the
people who have to make the
decisions, and I will need time for that, M’Lord. So I ask that
Your Lordship adjourns the proceedings
now until Monday morning at
09:30?’
[6]
On 9 November 2020, SAP brought an application, which was opposed by
SAC, for the
recusal of Tsoka J. In support of the application, it
was stated by Mr Alexander Leyh, SAP’s senior legal counsel:
’
27.
Upon reading the transcript, listening to and watching the relevant
part of the audio visual recording
of the proceedings on 6 November
2020 and receiving confirmation from Dr Levenstein that it fairly
reflects what occurred and on
the basis of Dr Levenstein’s
affidavit attached, I state the following:
27.1.
SAP has not, prior to the events recounted in Dr Levenstein’s
affidavit, ever experienced a judicial
officer conducting himself or
herself in the manner revealed from the transcript and Dr
Levenstein’s observations.
27.2.
Hitherto, judicial officers always permitted SAP to present its case
– as plaintiff or as defendant
– while (in addition and
especially) always remaining in attendance and presiding over the
proceedings at all times. This
is not to say that there have not been
frank (or indeed vigorous) exchanges between SAP’s lawyers and
the Court on occasion;
I say only that the conduct displayed by the
presiding Judge in the present instance, namely a unilateral and
intemperate exit
from the trial proceedings and a refusal to listen
to what counsel for SAP wanted to ask of SAC’s principal
witnesses, and
suggesting that the proceedings should continue in the
absence of the Judge, has never occurred.
. . .
27.5.
SAP considers the Court’s conduct on 6 November 2020 to be
alarming and intolerable.
27.6.
SAP apprehends on the basis of the events described herein and in the
affidavit of Dr Levenstein, that the
Presiding Judge, for whatever
reasons, will not be impartial.
27.7.
SAP has lost confidence in the ability of the Presiding Judge to
fairly and impartially arrive at the balanced
and reasoned decisions
required for the numerous important questions of fact, German law and
credibility arising in this matter.
27.8.
SAP reasonably perceives, on the basis of the Court’s conduct
on 6 November 2020, that it has closed
its mind to persuasion to a
case contrary to that put forward by the SAC’s witness, Mr
Mario Linkies, on a key issue in the
trial, namely whether the
plaintiff had knowledge at all times that the agreement relied on by
the plaintiff for its claim would
only be valid when it was signed
for SAPSI (which never happened). This is a fundamental point in the
case; SAC’s case pivots
on it.
27.9.
The Court’s apparent closure of its mind to persuasion contrary
to SAC’s case on that key issue
in the trial, causes SAP
reasonably to perceive that the Court’s mind is (or most likely
will be at the appropriate time)
similarly closed to persuasion
against SAC’s case on other issues in the trial.
27.10. The Court’s
perceived bias is manifested by the following conduct of the
Presiding Judge on 6 November 2020:
27.10.1.
The Presiding Judge’s refusal to permit counsel for SAP
to put
SAP’s case on a key issue (and conclusion, based upon that
case) to the witness;
27.10.2.
And thereafter, when counsel for SAP sought to resist and then
to
persist, the Presiding Judge instructing counsel for SAP to let the
Court know “when he (had) finished”, declaring
“I’m
taking a break” and then ‘storming out of Court’
(by abruptly and in a visibly angry state abandoning
his seat in
front of the Zoom monitor and walking away so that he was no longer
visible to those attending the proceedings and
only returning after
several minutes).
27.11. The Court’s
conduct is clearly visible on the external camera which was set up to
record and project to all attendees
the movements of the Presiding
Judge.
27.12. SAP, Mr
Hamel and I agree with Dr Levenstein that it is clear that the
Presiding Judge became visibly upset and acted
in rage when counsel
for SAP explained to him that it was his (counsel’s) duty to
put to the witness that he had lied in
the email to his colleagues
dated 21 September 2004 at 1:25:59 PM (referred to as SI_0729 in the
trial bundle);
27.12.1.
By his conduct and words – which were clearly intended
and also
appeared to be unambiguously conveying a refusal to listen to (let
alone consider) SAP’s case being put to the witness
Mr Linkies
– the Presiding Judge then in fact refused to listen to or
observe the proceedings and evidence on a central issue
in the case,
extraordinarily suggesting that counsel for SAP should carry on with
his questions in the absence of the Presiding
Judge.
27.12.2.
The latter suggestion (communicated by the Presiding Judge’s
statement shortly before his abrupt exit that, “When you’ve
finished you’ll let me know. I’m taking a break”)
clearly conveys the impression to any informed and objective observer
that his mind is closed to SAP’s version being put
to the
witness and to any evidence that SAP might elicit from the witness Mr
Linkies affecting his credibility;
27.12.3.
The submissions made by counsel for SAP at the relevant time
based on
universally accepted authority – not only fell on deaf ears but
were actively proscribed by the Court, and this
to such a degree that
when counsel for SAP sought to persist, the presiding Judge simply
exited the proceedings in a rage and advised
counsel for SAP to
continue in the Court’s absence and to let the Court know “when
(counsel had) finished”.
27.12.4.
The meaning and implication being that the Presiding Judge was
content for the proceedings to continue in his absence and without
the Presiding Judge listening to or taking any interest in the
further cross-examination of SAC’s witness by counsel for SAP.
27.12.5.
The Court’s attitude thus displayed founds a reasonable
perception of bias on the part of the Presiding Judge who should
accordingly recuse himself.
27.13. SAP
reasonably perceives – on the basis of the behaviour and
utterances of the Presiding Judge on 6 November
2020 – that the
Presiding Judge is biased and will not be impartial.
27.14. Accordingly,
SAP verily believes that it will not receive a fair trial before the
Presiding Judge.
28.
In the circumstances, it is with deep regret that SAP requests the
recusal of the Presiding
Judge.’
[7]
Dr Eric Levenstein, a director of Werksmans Incorporated, SAP’s
attorney of
record, who deposed to a confirmatory affidavit in the
recusal application, had this to say:
‘
5.
The immediately relevant events
appear from pages . . . of the transcript.
6.
I confirm that it fairly reflects and records what was said, subject
to correction
of the following errors (which are established on the
basis of me personally listening to and viewing the original zoom
audio visual
recording):
6.1.
At page 95 the transcript contains the following inaccurate entry in
brackets:
“
[COURT
ADJOURNS
COURT RESUMES]”
Which is inaccurate –
there was no adjournment of the Court proceedings at that time.
. . .
6.6.
It was obvious to all the observers that the presiding Judge had not
taken an adjournment for
any of the usual reasons, such as a tea or
lunch or comfort break. These breaks are always clearly announced by
the presiding Judge
at the appropriate time before the Court rises
and before he leaves his post.
. . .
10.
I confirm the following, with reference to the transcript and
audio/video tape of the proceedings
on 6 November 2020:
10.1.
One of the key issues in the case before the presiding Judge is
whether or not a software distribution agreement
(or SDA) was
concluded between SAC and a subsidiary of SAP, called SAPSI. SAC’s
claim against SAP turn on the proposition
that the SDA was concluded.
SAP disputes this central plank of SAC’s case.
10.2.
SAC’s case on this issue, briefly summarised, is that the
representative of SAC (Mr Tattersall) prepared
a draft SDA (which
contains a “term” clause of 3 years from date of
signature, together with a “no prior representations”
clause) for consideration and discussion by representatives of SAPSI
including, among others, the witness in question, Mr Mario
Linkies
(who was formerly – in 2004 – a consultant employed by
SAPSI)
10.3.
SAC’s case is, further, that SAC’s representative (Mr
Tattersall) signed the SDA on behalf of
SAC on 6 August 2004 at a
meeting held in Bensheim in the presence of Mr Linkies and two other
SAPSI employees namely Mr Wittmer
and Mr Ahrens.
10.4.
SAC’s case goes on to allege, having abandoned its pleaded case
that SAPSI also signed the SDA on
an unknown date by an unknown
person, that SAC and SAPSI thereafter concluded the SDA in various
ways, in terms of principles of
German law, without a signature by
SAPSI.
10.5.
In support of that case, SAC’s two main witnesses, Messers
Tattersall and Linkies, testified that
Mr Tattersall did not inquire
after 6 August 2004 whether SAPSI had signed the SDA because (so Mr
Tattersall’s testimony
went) Mr Tattersall considered the SDA
to have been concluded (in one of the ways allegedly permitted by
German law, namely by
conduct).
10.6.
In terms of the relevant provisions of German law, the so-called
“good faith contractor”, that
is, one who contracts with
another in good faith, is entitled in certain circumstances to assume
for his benefit that the other
contracting party’s
representative is authorised to represent that party in concluding a
contract – it is a form of
ostensible authority.
10.7.
The critical issue, however, is that these provisions of German law –
referred to as
Duldungsvollmacht
and
Ansheinsvollmacht
–
protect only the good faith contractor, that is, the contractor who
does not have knowledge of any defect in authority of
the other
party’s representative to conclude the contract on that party’s
behalf.
10.8.
These issues were submitted and explained to the presiding Judge by
counsel for SAP earlier in the proceedings
on 6 November 2020, as
appears in the transcript from page 72 line 20 to page 2802 line 19.
10.9.
In doing so, counsel for SAP was referring (and referred the Court)
to the agreed legal propositions recorded
in the joint expert minute
dated 17 September 2020 (signed by three professors of German Law,
two of whom SAC intends calling and
one who SAP intends calling)
notably paragraphs 2, 3 and 4, as follows:
2.
“Under German law, the formation of a contract requires the
consent of
both parties which may be expressed tacitly or by conduct
including implementation. In the case of corporations, consent of a
duly
authorised agent is necessary. German company law provides that
the power to bind the corporation is vested in the members of the
management board. In addition, other corporate officers, such as a
“Prokurist”, may be granted authority to bind the
corporation individually or together with others.
3.
The contractual assent of corporate employees other than duly
authorized agents
is not sufficient to bind the corporation to an
agreement. The German-law doctrines of “tolerated power of
representation
(
Duldungsvollmacht
)” and “apparent
power of representation (
Anscheinsvollmacht
)” have as
their common purpose to protect the good faith contractor. They
require that the represented legal juristic person
knows the actions
of the person representing it and does not impede such actions. They
also both require that the other party to
the contract acted in good
faith, i.e. that it relied and had reason to rely on the perceived
authority of the would-be agent.
4
Section 154 para 2 BGB does not stipulate a form requirement. Rather,
it
stipulates a rule of interpretation: where the parties have
privately agreed to reduce their agreement to writing, when in doubt,
no agreement is formed until the relevant document was signed.”
10.10. In this
legal context, it was essential for SAP, in meeting SAC’s case
that Mr Tattersall had not inquired after
the meeting of 6 August
2004 whether the SDA had indeed been signed by SAPSI, to put to Mr
Linkies that the contemporaneous documentary
evidence indicated that
Mr Tattersall had indeed made such inquiries after 6 August 2004. Mr
Linkies, too, had testified for SAC
that Mr Tattersall had not made
such inquiries, therefore it became necessary to put SAP’s
version to him on that issue.
10.11. Accordingly,
counsel put it to Mr Linkies (who agreed) that he was Mr Tattersall’s
main contact person at SAPSI
at the relevant time and counsel for SAP
also put a variety [of] contemporaneous documents to Mr Linkies in
support of its case
that Mr Tattersall had indeed made inquiries with
Mr Linkies about obtaining a signed SDA from SAPSI.
10.12. Four such
documents – all dated 21 September 2004 – were critical
to this issue, and ultimately provoked
the events which form the
subject matter of this application, namely
. . .
10.14. The critical
one proved to be “EL 3A”, an agreed English translation
of which reads as follows:
“
From:
Linkies, Mario
To: Wittmer, Manfred;
Off, Frank
Cc: Hoefer, Dirk
Subject: Securinfo:
Vertrag/Contract
Date: Tuesday, September
21, 2004 1:25:59 PM
Importance: High
Sensitivity: Confidential
Hello Manfred, Frank:
I regret to have to
follow up again, but I urgently request the approval of the contract
with Securinfo. As we have had the details
scrutinised by various
colleagues, there should be no further problems. Peter Tattersall is
breathing do(w)n my neck, and I can
quite understand that Securinfo
wants a definite statement on whether the partnership with SAP SI is
now put on an official basis,
or whether we do not have legal
certainty. That of course has implications for our collaboration. I
am therefore at present refraining
from a further conversation with
Peter until the matter is clarified on our side.
Thank you and kind
regards . . .
Mario Linkies”
10.15. During his
evidence in chief, and in cross-examination, the witness (Mr Linkies)
testified that where his email speaks
of Mr Tattersall “breathing
down my neck” to obtain the signature, this was in fact not
true: in essence, he had written
that simply to put pressure on his
colleagues to approve and sign (or have approved and signed) the SDA
. . .’
[8]
On 13 November 2020, Tsoka J, in dismissing the recusal application,
recorded:
‘
[8]
SAP SE’s alleged bias is based on what transpired on 6 November
2020. Although the
recordings of the proceedings of that day are
attached to the application, the readings, bar few typographical
errors and few inaudibles,
appear to be correct. However, the
application is based on selective, subjective and contrived
interpretation as to what happened
on that day without taking into
account the correct facts and the context that led me to leave the
court, with the camera and microphone
unmuted as I urgently had to go
to the bathroom.
. . .
[16]
Counsel’s so-called right to force Mr Linkies to answer the
already answered question just
before tea break, which question was
asked on more than one occasion and the same answer was given by the
witness, irritated me
with the result that I took my face mask and
left the court for the bathroom. Although irritated, at no stage did
I storm out of
court in a rage as alleged. Neither did I raise my
voice hence I informed counsel that I am taking a break and when he
got the
answer he wanted, he will let me know. This is the reason why
both the camera and the microphone were left unmuted. Hopefully,
counsel in my absence would indeed force Mr Linkies to give the
answer he required, which answer would, undoubtedly, in the short
break I took, would appear on the record.’
[9]
The matter thereafter proceeded on the separated issue to finality
before Tsoka J,
who, on 7 December 2021, delivered a written
judgment, in which he concluded:
‘
[214]
In the result, the following order is made –
214.1 It is
declared that the first defendant, SAP SE, is in breach of its legal
duties to the plaintiff, SAC, as provided
for in section 826
alternatively section 823 of the BGB;
214.2 In
consequence of paragraph 1 above, the first defendant, SAP SE, is
liable to the plaintiff, SAC, for such damages
as may be shown to
have been suffered by the plaintiff as a consequence of such
breaches;
214.3 The
first defendant, SAP SE, is liable to pay the plaintiff’s costs
of suit, including the costs of three
counsel where three counsel
were so employed;
214.4 The
first defendant, SAP SE, is liable to pay the plaintiff’s
qualifying costs of the plaintiff’s
expert, Professor
Dauner-Lieb;
214.5 The
first defendant, SAP SE, is liable to pay the costs reserved by
Satchwell J on 25 May 2011.’
[10]
On 28 December 2021, SAP applied to the learned judge for leave to
appeal to this Court in respect
of both his judgment on the recusal
application as well as his judgment on the merits. Both applications
were dismissed in an all
too brief judgment consisting of four
paragraphs spanning less than two pages in the record. This despite
the learned judge having
earlier recorded in his judgment on the
merits:
‘
[213]
The issues raised in the determination of the merits is not only
complex but difficult as well. The determination
of the merits
involved foreign law, in the present matter codified German Law. Most
of the issues raised at this stage are contained
in voluminous emails
written by Germans and in the German language. Utilization of three
counsel, one or some of whom speak German,
was not only reasonable
but necessary and warranted as well. In my view, the employment of
three counsel, where such counsel were
so employed, cannot, in the
circumstances of this matter, be regarded as unreasonable.’
[11]
On 5 May 2022, SAP petitioned this Court for leave to appeal. On 13
July 2022, the two judges,
who considered the petition, referred the
applications for leave to appeal in respect of both the merits and
the recusal for oral
argument in terms of
s 17(2)
(d)
of the
Superior Courts Act 10 of 2013
and directed the parties to be
prepared, if called upon to do so, to address the court on the
merits.
As observed in
Body
Corporate of Marine Sands v Extra Dimensions 121 (Pty) Ltd
:
‘
.
. . Different considerations come into play when considering an
application for leave to appeal as compared to adjudicating the
appeal itself. As to the former, it is for the applicant to convince
the court that it has a reasonable prospect of success on
appeal.
Success in an application for leave to appeal does not necessarily
lead to success in the appeal. Because the success of
the application
for leave to appeal depends,
inter
alia
,
on the prospects of eventual success of the appeal itself, the
argument on the application would, to a large extent, have to address
the merits of the appeal.’
[1]
[12]
It would be appropriate to begin with the recusal appeal, which
brought to the fore the question
whether the learned judge’s
conduct bore the appearance of bias. The law will not lightly suppose
the possibility of bias
in a judge. But, there is also the simple
fact that bias is such an insidious thing that even though a person
may in good faith
believe that he was acting impartially, his mind
may unconsciously be affected by it.
[2]
It is settled law that not only actual bias but also the appearance
of bias disqualifies a judicial officer from presiding (or
continuing
to preside) over judicial proceedings. ‘A judge who sits in a
case in which she or he is disqualified from sitting
because, seen
objectively, there exists a reasonable apprehension that the judge
may be biased, acts in a manner inconsistent with
s 34 of the
Constitution and in breach of the requirements of s 165(2) and the
prescribed oath of office’.
[3]
The disqualification is so complete that continuing to preside after
recusal should have occurred renders the further proceedings
a
nullity.
[4]
Where the offending
conduct sustains the inference that in fact the presiding judge was
not open-minded, impartial or fair during
the trial, this Court will
intervene and grant appropriate relief.
[5]
In such a case the Court will declare the proceedings invalid without
considering the merits.
[13]
The key issue for consideration and determination is whether the
conduct complained of by SAP
created a reasonable apprehension of
bias on the application of the test laid down by the Constitutional
Court in
President of the Republic of South Africa and Others v
South African Rugby Football Union and Others
(the
SARFU
test), namely:
‘
.
. . [t]he question is whether a reasonable, objective and informed
person would on the correct facts reasonably apprehend that
the Judge
has not or will not bring an impartial mind to bear on the
adjudication of the case, that is a mind open to persuasion
by the
evidence and the submissions of counsel.’
[6]
[14]
As I see it, Tsoka J appears to have erred in several fundamental
respects. First, the judge
appears to have misconceived the evidence.
The learned judge observed that he had become ‘irritated’
by SAP’s
counsel seeking ‘to force Mr Linkies to answer
the already answered question’, which was formulated in less
than clear
language as ‘the repetitive asking of Mr Linkies
that Mr Tattersall was breathing down his neck was continued even
though
the witness had already answered the question’. But, on
the evidence, properly construed, the question had not been
repeatedly
asked and repeatedly answered. This misunderstanding on
the part of the learned judge provoked the irritation and not just
his
summarily abandoning the hearing, but also directing that the
proceedings should continue in his absence. The line of
cross-examination
was undoubtedly material to SAC’s claim.
[15]
That Mr Tattersall was indeed breathing down Mr Linkies’ neck
to obtain a duly signed copy
of the SDA (as stated in Mr Linkies’
email), would certainly be supportive of SAP’s defence that he
(Mr Tattersall)
knew that the signature of the other party (SAP SI)
was required for a validly concluded agreement. In those
circumstances, so
the contention advanced by SAP goes, an essential
element of the German substantive law for SAC’s case would be
absent; namely,
for SAC to succeed on the strength of so-called
apparent authority (
Anscheinsvollmacht
)
or tolerated authority (
Dulldungsvollmacht
).
Both doctrines, so the contention proceeds, require that SAC in the
form of Mr Tattersall acted in good faith, i.e. that SAC
relied on
and had reason to rely on the perceived (apparent or tolerated)
authority of its would-be agent. This is an essential
requirement
under German Law that would not have been fulfilled if Mr Tattersall
knew at all times that an official signature by
SAP SI was required
and remained outstanding.
In this context,
it was necessary for SAC to prove that Mr Tattersall acted in good
faith in relying on the assurance that the SDA
had indeed been
concluded and that it was not necessary for an authorised person from
SAP SI to sign it. Whether or not he continued
asking if it had been
signed after receiving an assurance that it was operative was central
to this issue. If he persisted in requiring
a signed copy –
that had to bear on the issue of good faith alluded to above.
[16]
Mr Linkies testified that contrary to what he had expressly stated in
his email, Mr Tattersall
was in fact not ‘breathing down his
neck’. Rather, so testified Mr Linkies, he had expressed
himself in that fashion
to try to pressurise his colleagues to obtain
the necessary (SAP SI) signature on the SDA. SAP’s counsel
accordingly put
to Mr Linkies that he was therefore lying (to his
colleagues) in his email addressed to them. The response elicited
from Mr Linkies
was: ‘why are you saying I am lying? I don’t
– I didn’t lie’. SAP’s counsel then sought to
probe that response by asking: ‘If you’re saying to His
Lordship he (Mr Tattersall) was not breathing down my neck then
what
you wrote there is a lie?’ Before that question (a perfectly
legitimate line of enquiry on the face of it) could be
answered, the
learned judge interrupted the cross-examination, stating ‘the
question has been answered repeatedly’.
The question, however,
had not been answered – repeatedly or at all. The continuing
enquiry was not, as the judge incorrectly
found, directed at whether
Mr Tattersall was breathing down Mr Linkies’ neck. That
exchange had passed. It had, by that stage,
come to be unavoidably
accepted by Mr Linkies that the email had indeed stated in terms that
Mr Tattersall was breathing down his
neck. Mr Linkies had moved on to
testifying that he had simply written this to pressure his colleagues
and that in truth it would
be wrong to attribute to Mr Tattersall
what had been stated by him in his email. Mr Linkies denied that he
had lied to his colleagues
and challenged SAP’s counsel to
explain to him why he was accused of untruthfulness. Counsel sought
to rise to the challenge,
but was both incorrectly and prematurely
cut off by the judge. In order for it to be argued later that Mr
Linkies had lied, when
it was expedient for him to do so, it was
necessary for counsel to put to him why it would be submitted in due
course that the
judge should be slow to believe his evidence.
[17]
Properly understood, the cross-examination that prompted the abrupt
departure of the judge had
nothing to do with ‘the repetition
of a question which had already been put and answered multiple
times’. The judge
had prevented counsel from properly
developing the line of questioning by interjecting: ‘. . . may
we proceed please and
then you can argue that point. The question has
been answered repeatedly’. However, absent a proper factual
foundation, it
may likely not have been open to counsel to call Mr
Linkies’ mendacity into question. In fairness to Mr Linkies,
counsel
had to afford him an opportunity of dealing with the issue,
so that counsel could in due course submit that the evidence left no
room for an honest mistake and that Mr Linkies was content to resort
to a deliberate falsehood, when it was expedient for him to
do so.
[18]
Second, when counsel attempted to justify his line of questioning,
the judge became irritated
and summarily abandoned the proceedings
with the parting words, ‘when you’ve finished you’ll
let me know. I am
taking a break’. How long, it was
anticipated, the break was to last, no one was to know. What is more,
the judge expected
the cross-examination to continue in his absence.
In the judgment, the judge is at pains to emphasise this by stating:
‘
I
inform counsel that I am taking a break and when he got the answer he
wanted, he will let me know. This is the reason why both
the camera
and the microphone were left unmuted. Hopefully, counsel in my
absence would indeed force Mr Linkies to give the answer
he required,
which answer would, undoubtedly, in the short break I took, would
appear on the record.’
In that, the judge
appeared to operate on the fallacious supposition that the
cross-examination could indeed proceed in his absence.
It plainly
could not. Absent the judge, there was no properly or duly
constituted court. Such proceedings, as the judge envisaged
would
continue in his absence, would have been fatally flawed and not in
accordance with law.
[19]
Third, the extraordinary circumstances thus created by the judge were
compounded by the explanation
offered in the judgment on the recusal.
The application was not about an abandonment of the hearing because
the judge ‘urgently
had to go to the bathroom’. The first
time that mention was made of a bathroom break was in the recusal
judgment. It is common
cause that the bathroom explanation was not
mentioned at any of the following appropriate times: (a) immediately
upon the hearing
resuming (when the judge returned to the virtual
hearing hosted on the Zoom platform); (b) in the extensive
discussions with counsel
immediately thereafter; (c) when the judge
was informed that a recusal application would be brought; or (d)
during the hearing
of the recusal application. It follows that the
bathroom explanation did not form part of the factual substratum on
which the recusal
application fell to be determined because it was
not disclosed and thus not known to the reasonable, objective and
informed person
at the relevant time. It is also inconsistent with
the direction moments earlier ‘may we proceed please and then
you can
argue that point’. Thus, the bathroom explanation,
having not been disclosed at the appropriate time was not only
irrelevant
for the purposes of applying the
SARFU
test, but there is also much to be said for the suggestion that it is
improbable and thus tends to exacerbate the apprehension
of bias.
If
that was indeed the reason, the judge would have adjourned the court,
as he had done on every other occasion, instead of simply
leaving in
the expectation that the matter would proceed in his absence.
[20]
Fourth, the judge’s
ex post facto
explanation that ‘both
the camera and the microphone were left unmuted’ to ensure that
‘the answer . . . would
appear on the record’, finds no
purchase. An independent service provider, Realtime Transcriptions,
was responsible for recording
and transcribing the trial proceedings
and had access to the virtual hearing at all times for that purpose.
The fact that the judge
left ‘both the camera [sic] and the
microphone. . . unmuted’ was irrelevant to the recording of the
evidence, which
continued independently of any action on the part of
the judge. The relevance of the observation is that it confirms the
intention
of the learned judge that the hearing should continue in
his absence. However, had the proceedings continued, the judge would
not
have been in position to observe the witness and assess his
evidence in real time. It would have been well-nigh impossible for
the judge, who had abstracted himself from the proceedings, to make a
proper assessment of the credibility of the witness, with
reference,
inter alia, to demeanour, candour and the calibre and cogency of such
witness’ performance relative to other witnesses.
[21]
Fifth, the correct facts demonstrate to the reasonable, objective and
informed person that the
judge had closed his mind to – and was
not in the least interested in – appreciating the extent to
which or why Mr
Linkies had demonstrated himself to be a liar. This
was material evidence relevant to the success or failure of a
critical element
of SAC’s cause of action in respect of which
Mr Linkies was one of SAC’s key witnesses of fact. Tellingly,
as the judgment
on the merits demonstrates, the judge was far too
receptive to Mr Linkies’ evidence. On that score, the learned
judge held:
‘
[41]
Mr Linkies’ unchallenged evidence, despite SAP’s attempt
to put his evidence in doubt,
is that he himself pressurized Mr
Tattersall to push his own company to regularize the relationship
between SAC and SAP SI. In
fact, Mr Linkies denied that Mr Tattersall
“sat on his neck” by pressurizing him to produce the
signed SDA. . ..
[42]
. . . Mr Linkies’ testimony that Mr Tattersall never
pressurized him to produce the signed
SDA, and that pressure on SAP
SI to sign the SDA came from him, remains unchallenged. The pressure,
if any, exerted on Mr Linkies
by Mr Tattersall is therefore not a
concession on Mr Tattersall’s part that he knew that the SDA
had not yet been approved,
authorized and signed.
[43]
In fact, Mr Linkies explained to the court that he, himself, was put
under pressure in order
to make the concession that Mr Tattersall
pressurized him to produce the signed SDA. He explained to the court
that he made the
concession as his life and that of his family was
put at risk. He testified that he received threatening telephone
calls with the
result that, to save his and his family’s lives,
he admitted that Mr Tattersall indeed did pressurize him. To save his
life
and that of his family, he left SAP. The result is that there is
therefore no basis to second-guess Mr Linkies’s evidence
that
he pressurized SAP SI for his own purposes for the signature of the
SDA. And that it was not in fact Mr Tattersall but himself
who
pressurized his employers, through Mr Tattersall, for the production
of the signed SDA. The pressure, if any, does not in any
way suggest
that there was not valid SDA. The pressure, if any, and from whatever
source it came from, in all probabilities, was
to regularized the
formal relationship between the two contracting parties. Nothing
else.’
[22]
With respect to the learned judge, those findings, on the face of it,
appear to be confusing
and contradictory. Moreover, as a careful
perusal of the record shows, scant regard was paid to important
concessions made by Mr
Linkies whilst under cross-examination. The
rather perfunctory and superficial analysis of Mr Linkies as a
witness does little
justice to the range of aspects on which SAP took
issue with Mr Linkies’ evidence and largely ignores both
internal and external
contradictions, any latent or patent bias –
such as there may have been, as also the probabilities. It also
largely ignored
the evidence adduced on behalf of SAP to gainsay Mr
Linkies evidence. Had counsel not been interrupted in his pursuit of
a perfectly
legitimate line of cross-examination, perhaps the judge
would have been less charitable in his assessment of Mr Linkies as a
witness.
The upshot is that it cannot with any confidence be said
that the conduct complained of did not impact substantively and
materially
on the merits of the claim asserted by SAC and did not
conduce to a reasonable apprehension of bias.
[23]
Sixth, even were it to be accepted that the question had indeed been
repeatedly asked and answered,
in instructing that the hearing
continue until SAP’s counsel had ‘finished’ before
leaving the platform, the
inescapable impression is that the judge no
longer took any interest in the further evidence on that issue, that
counsel was engaged
in a fool’s errand and that the judge had
not only closed his mind to any such answer as counsel may elicit in
cross examination,
but also that his mind was no longer open to
conviction. As it was put in
S v Le Grange
:
‘
It
must never be forgotten that an impartial judge is a fundamental
prerequisite for a fair trial. The integrity of the justice
system is anchored in the impartiality of the judiciary. As a matter
of policy it is important that the public should have confidence
in
the courts. Upon this social order and security depend. Fairness
and impartiality must be both subjectively present and
objectively
demonstrated to the informed and reasonable observer. Impartiality
can be described – perhaps somewhat inexactly
– as a
state of mind in which the adjudicator is disinterested in the
outcome, and is open to persuasion by the evidence
and submissions.
In contrast, bias denotes a state of mind that is in some way
predisposed to a particular result, or that is closed
with regard to
particular issues. Bias in the sense of judicial bias has been
said to mean ‘a departure from the standard
of even-handed
justice which the law requires from those who occupy judicial
office’. In common usage bias describes ‘a
leaning, inclination, bent or predisposition towards one side or
another or a particular result. In its application to legal
proceedings,
it represents a predisposition to decide an issue or
cause in a certain way that does not leave the judicial mind
perfectly open
to conviction. Bias is a condition or state of mind
which sways judgment and renders a judicial officer unable to
exercise his
or her functions impartially in a particular case.
Partiality
has both an attitudinal and behavioural component.’
[7]
(Footnotes
omitted.)
[24]
I recognise that presiding over a matter such as this can be a
difficult task. And, in a trial
of this length and complexity, the
burden on the presiding judge would have been all the greater. One
also knows all too well how
cross-examination can sometimes appear
protracted and seemingly irrelevant. ‘Impatience, though, is
something which a judicial
officer must, where possible, avoid and in
any event always strictly control. For, it can impede his perception,
blunt his judgment
and create an impression of enmity or prejudice in
the person against whom it is directed . . . It may serve to
undermine the proper
course of justice and could lead to a complete
miscarriage of justice. A judicial officer can only perform his
demanding and socially
important duty properly if he also stands
guard over himself, mindful of his own weaknesses (such as
impatience) and personal views
and whims and controls them.’
[8]
[25]
Whilst, no doubt, judicial officers can and do form provisional
views, including perhaps even
in respect of the credibility of a
witness, it remains the fundamental duty of every presiding officer
not to close their mind
to changing those provisional impressions,
until the last word has been spoken. After all, a cornerstone of any
legal system is
the impartial adjudication of disputes that come
before the courts. What is required is not only that the trial be
conducted open-mindedly,
impartially and fairly, but that such
conduct be manifest to all those who are concerned in the trial and
its outcome. In this
regard, language is important and in this case
the language employed is in some respects rather unfortunate. Even if
unintended,
the spectre that it raises is certainly suggestive of one
who has certain preconceived notions and who allows those notions to
affect his judgement.
[26]
In this matter, both parties were represented by very senior counsel.
A perusal of the record
reveals that the issues of fact that required
determination were of a rather involved and complicated nature. It is
therefore a
matter that occasions some surprise that the learned
judge should have found it necessary to intervene as he did. He, no
doubt
with good intentions, appears to have been anxious to ensure
that the matter should not drag on unnecessarily and sought, it would
seem, to expedite the hearing. In doing so, it appears that he may
have overlooked the judge’s usual role in a trial, thereby
denying himself the full advantage enjoyed by a trial judge who, ‘as
the person holding the scale between the contending
parties, is able
to determine objectively and dispassionately, from his position of
relative detachment, the way the balance tilts’.
[9]
[27]
There was some suggestion that as we are concerned with an isolated
occurrence, the threshold
set by the authorities - and consequently
the test for recusal - has not been met. It was stated on behalf of
SAC in answer to
the recusal application:
‘
.
. . fundamentally, no reasonable, objective and informed person could
reasonably conclude from this single interaction that the
Court was
biased or would not be impartial in deciding the matter. It is the
most remarkable feature of this recusal application
that it is
entirely founded on a single interaction . . .’
Although
SAP relies on an isolated incident; it is likely unprecedented. And,
as I have been at pains to demonstrate, not only is
the enquiry not a
hermetically sealed one, but also, in conducting himself as he did,
the learned judge breached several cannons
of good judicial
behaviour. Thus, the curtailment of a legitimate avenue of cross
examination and the failure to keep an open mind
on that issue
undoubtedly infected the substantive merits of the matter, thereby
resulting in a manifest failure of justice. It
is, after all, a
fundamental principle of our law and, indeed, of any civilised
society that a litigant is entitled to a fair trial.
The requirement
that justice must not only be done, but also to be seen to be done
has been recognised as lying at the heart of
the right to a fair
trial. This necessarily presupposes that the judicial officer is fair
and unbiased and conducts the trial in
accordance with those rules
and principles or procedure which the law requires.
[10]
The fairness of a trial would clearly be under threat if a court does
not (as happened here) apply the law and assess the facts
of the case
properly and impartially.
[28]
‘Because advocacy is an art and not a science, and because the
adversary system requires
deference to counsel’s informed
decisions, strategic choices must be respected in these circumstances
if they are based on
professional judgment’.
[11]
Judicial scrutiny of counsel’s performance must thus be highly
deferential.
[12]
In dealing
more generally with the role and attitude expected of a presiding
judge, Lord Denning MR had this to say in
Jones
v National Coal Board
:
‘
Now,
it cannot, of course, be doubted that a judge is not only entitled
but is, indeed, bound to intervene at any stage of a witness’s
evidence if he feels that, by reason of the technical nature of the
evidence or otherwise, it is only by putting questions of his
own
that he can properly follow and appreciate what the witness is
saying. Nevertheless, it is obvious for more than one reason
that
such interventions should be as infrequent as possible when the
witness is under cross-examination. It is only by cross-examination
that a witness’s evidence can be properly tested, and it loses
much of its effectiveness in counsel’s hands if the
witness is
given time to think out the answer to awkward questions; the very
gist of cross-examination lies in the unbroken sequence
of question
and answer. Further than this, cross-examining counsel is at a grave
disadvantage if he is prevented from following
a preconceived line of
inquiry which is, in his view, most likely to elicit admissions from
the witness or qualifications of the
evidence which he had given in
chief. Excessive judicial interruption inevitably weakens the
effectiveness of cross-examination
in relation to both the aspects
which we have mentioned, for at one and the same time it gives a
witness valuable time for thought
before answering a difficult
question, and diverts cross-examining counsel from the course which
he had intended to pursue, and
to which it is by no means easy
sometimes to return.’
[13]
[29]
Although mindful of the presumption of judicial impartiality, as the
Constitutional Court has
recognised, ‘there are of course
instances where a judicial officer may not be able to demonstrate
impartiality or there
may exist some apprehension of bias’ and
in such instances the presumption can be displaced by ‘cogent
evidence’.
[14]
In such
instances, ‘a judicial officer should not be unduly sensitive
and ought not to regard an application for his recusal
as a personal
affront’.
[15]
As Ngcobo
CJ put it in
Bernert
v ABSA Bank Ltd
:
‘
a
judicial officer should not hesitate to recuse himself or herself if
there are reasonable grounds on the part of a litigant for
apprehending that the judicial officer, for whatever reason, was not
or will not be impartial. In a case of doubt, it will ordinarily
be
prudent for a judicial officer to recuse himself or herself in order
to avoid the inconvenience that could result if, on appeal,
the
appeal court takes a different view on the issue of recusal’.
[16]
[30]
In the circumstances, the reasonable, objective and informed person
in SAP’s position would
apprehend that a presiding judge, who:
(a) prevents its counsel from cross-examining a witness in response
to a challenge from
such witness to be shown why his credibility is
being impugned; (b) then irritatedly abstracts himself from the
hearing, without
first adjourning; and, (c) whilst at the same time
directing that the hearing continue in his absence until counsel has
‘finished’,
has shown himself to have closed his mind to
the evidence and the submissions of counsel. The belated improbable
explanation by
the judge for his abrupt departure serves simply to
exacerbate the apprehension. It follows, as a consequence of the
cumulative
factors alluded to, that the question: whether a
reasonable apprehension of bias can be said to exist, must
accordingly be answered
in the affirmative. What results from this is
that the further judgment of Tsoka J on the merits is vitiated by the
nullity of
the proceedings, which occurred as a result of him
continuing to sit in a trial where recusal was required.
[17]
The only question is whether there is a reasonable apprehension of
bias: ‘if there is,
cadit
quaestio
(the
question falls away/the case is closed), no matter what effect this
might have on the particular proceedings’.
[18]
[31]
In the result:
1.
The application for leave to appeal succeeds.
2.
The appeal is upheld.
3.
The first and second respondents are directed, jointly and severally,
to pay
the costs of the application for leave to appeal and of the
appeal, such costs to include the costs of two counsel.
4.
The orders of the court
a quo
dated 13 November 2020 and 7
December 2021 under case number 20378/2008 are set aside and replaced
with the following:
‘
a.
The application for recusal is granted and the first and second
respondents in the
recusal application are directed, jointly and
severally, to pay the costs of the application, including the costs
of two counsel;
b.
The plaintiff and the second defendant are directed, jointly and
severally, to
pay the costs of the trial, including the costs
reserved by Satchwell J on 25 May 2011, such costs to include the
costs of two
counsel and the qualifying costs of the first
defendant’s experts, Professors Wagner and Wainer and Messrs
Burke and O’Neill.’
______________________
V M PONNAN
JUDGE
OF APPEAL
Appearances
For the appellant:CHJ
Badenhorst SC and K Spottiswoode
Instructed by:
Werkmans Inc., Johannesburg
Symington
De Kok Inc., Bloemfontein.
For the respondent:CDA
Loxton SC, AJ D’Oliveira and N Siboza-
Ruhinda
Instructed by:Bosch
Marais & Associates Inc., Johannesburg
Honey
Attorneys, Bloemfontein.
[1]
Body
Corporate of Marine Sands v Extra Dimensions 121 (Pty) Ltd
[2019]
ZASCA 161
;
2020 (2) SA 61
(SCA)
para
1
.
[2]
R
v Gough
[1993]
UKHL 1
;
[1993]
2 All ER 724
at
728.
[3]
S
v Basson
[2005]
ZACC 10
;
2005 (12) BCLR 1192
(CC);
2007 (3) SA 582
(CC) para 25;
South
African Human Rights Commission obo South African Jewish Board of
Deputies v Masuku and Another
2022
(4) SA 1
(CC) (
South
African Human Rights Commission
)
para 65.
[4]
Take
and Save Trading CC and Others v Standard Bank of SA Ltd
[2004]
ZASCA 1
;
2004
(4) SA 1
(SCA)
para 5.
[5]
S
v Rall
1982
(1) SA 828
(A)
at 833B;
S
v Meyer
1972
(3) SA 480
(A)
at 484D.
[6]
President
of the Republic of South Africa and Others v South African Rugby
Football Union and Others
[1999]
ZACC 9
;
1999
(4) SA 147
(CC) para 48. Recently affirmed by the Constitutional
Court in
South
African Human Rights Commission
fn
3 above para 63.
## [7]S
v Le Grange and Others[2008] ZASCA 102; 2009 (1) SACR 125 (SCA) 2009 (2) SA 434 (SCA);
[2010] 1 All SA 238 (SCA); 2010 (6) BCLR 547 (SCA) paras 21
and 22.
[7]
S
v Le Grange and Others
[2008] ZASCA 102; 2009 (1) SACR 125 (SCA) 2009 (2) SA 434 (SCA);
[2010] 1 All SA 238 (SCA); 2010 (6) BCLR 547 (SCA) paras 21
and 22.
## [8]Ibid
para 18.
[8]
Ibid
para 18.
[9]
Ibid
para 28.
[10]
S
v Tyebela
1989
(2) SA 22
(A)
at 29G.
[11]
Strickland,
Superintendent, Florida State Prison et al v Washington
[1984]
USSC 146
;
466
US 668
at
681.
[12]
Ibid
at 689.
[13]
Jones
v National Coal Board
[1957]
EWCA Civ 3.
[14]
South
African Human Rights Commission
fn 3 above para 60.
[15]
Moch
v Nedtravel (Pty) Ltd t/a American Express Travel Service
[1996]
ZASCA 2
;
1996 (3) SA 1
(A) at 13H-14C.
[16]
Bernert
v ABSA Bank Ltd
[2010]
ZACC 28
;
2011 (3) SA 92
(CC) para 36.
[17]
R
v Milne and Erleigh
(6)
1951 (1) SA 1
(A) at 6H;
Council
of Review, South African Defence Force, and Others v C Monning and
Others
1992
(3) SA 482
(A) at 495A-D.
[18]
South
African Human Rights Commission
fn 3 above para 74.
sino noindex
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