Case Law[2024] ZASCA 108South Africa
Sanoj Jeewan v Transnet SOC Limited and Another (696/2023) [2024] ZASCA 108 (4 July 2024)
Supreme Court of Appeal of South Africa
4 July 2024
Headnotes
Summary: Civil procedure – prescription – whether the high court was correct in finding that the appellant’s claim for contractual and delictual damages had prescribed – whether s 39(2) read with s 34 of the Constitution should be invoked in order to re-interpret the Prescription Act 69 of 1969 – whether the Biowatch principle on the issue of costs should apply in this case.
Judgment
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## Sanoj Jeewan v Transnet SOC Limited and Another (696/2023) [2024] ZASCA 108 (4 July 2024)
Sanoj Jeewan v Transnet SOC Limited and Another (696/2023) [2024] ZASCA 108 (4 July 2024)
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sino date 4 July 2024
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
FLYNOTES:
CIVIL PROCEDURE – Prescription –
Dismissal
–
Claim
for contractual breach alternatively delictual damages arising
from alleged unlawful termination of contract –
Whether
claim against employer became due when dismissed or later when
arbitration award issued – Appellant was aware
on date of
dismissal of unfairness and of identity of debtor – Cause of
action for contractual damages arose on date
of dismissal –
High Court upheld special plea of prescription – Appeal
dismissed –
Prescription Act 68 of 1969
,
s 11(d).
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
### JUDGMENT
JUDGMENT
Not
Reportable
Case
no: 696/2023
In
the matter between:
SANOJ
JEEWAN
APPELLANT
and
TRANSNET
SOC LIMITED
FIRST RESPONDENT
ERNEST
& YOUNG (EY)
SECOND RESPONDENT
Neutral
citation:
Sanoj
Jeewan v Transnet SOC Limited and Another
(696/2023)
[2024] ZASCA 108
(4 July 2024)
Coram:
MOLEMELA P and WEINER and MOLEFE JJA and KOEN and SEEGOBIN AJJA
Heard:
3 May 2024
Delivered:
This judgment was handed down electronically by circulation
to the
parties’ representatives by email, publication on the Supreme
Court of Appeal website and released to SAFLII. The
date and time for
hand-down of the judgment is deemed to be 11h00 on 4 July 2024.
Summary:
Civil procedure – prescription – whether the
high court
was correct in finding that the appellant’s claim for
contractual and delictual damages had prescribed –
whether
s
39(2)
read with s 34 of the Constitution should be invoked in order
to re-interpret the
Prescription Act 69 of 1969
– whether the
Biowatch
principle on the issue of costs should apply in this
case.
ORDER
On
appeal from:
Gauteng Division of the High Court, Pretoria (Mabuse
J sitting as a court of first instance):
1 The appeal is
dismissed, save to the extent set out below.
2 The appeal in
relation to the orders upholding the special pleas of jurisdiction
and
res judicata
is upheld.
3 The order of the
High Court is set aside and replaced with the following order:
‘
3.1 The
special plea of prescription is upheld.
3.2 The special
pleas of jurisdiction and
res judicata
are dismissed.
3.3 The
plaintiff’s claim is dismissed.
3.4 There is no
order as to costs.’
4 There is no
order as to costs in this Court.
JUDGMENT
Seegobin AJA (Molemela
P and Weiner and Molefe JJA and Koen AJA concurring):
Introduction
[1]
This appeal lies against the judgment and order of the Gauteng
Division of the High Court, Pretoria, (the high court)
(per Mabuse
J). The high court upheld three special pleas in respect of
jurisdiction, prescription and
res judicata
raised by the
first respondent against the appellant’s claim for damages
arising out of his alleged unfair dismissal which
occurred on 14 May
2010. Leave to appeal was refused by the high court on 14 March 2023
but granted by this Court on 13 June 2023.
Background
facts
[2]
The appellant, Mr Sanoj Jeewan (Mr Jeewan), was employed by the first
respondent, Transnet SOC Limited (Transnet), as
a Corporate
Governance Manager, in terms of a written contract of employment (the
employment contract) which came into effect on
2 October 2006.
Transnet had a Fraud Prevention Plan which included such policies as
a Code of Ethics, a Policy on Declaration
of Interest and Related
Disclosures, a Gift Policy and an Anti-Fraud Policy.
[3]
As Corporate Governance Manager, Mr Jeewan was regarded as the
forensic champion of Transnet. His duties included the
co-ordination
of investigations, forensic fraud prevention and detection, the
taking of remedial and corrective action, reporting
non-compliance
with the Fraud Prevention Plan to Transnet’s Forensic Working
Group and ensuring that everyone in his division
was familiar with
the contents of the plan and all concomitant policies. Mr Jeewan also
oversaw the internal control and compliance
functions at Transnet.
Following a forensic investigation conducted by the second
respondent, Ernest & Young (EY), Transnet
preferred charges of
misconduct against Mr Jeewan. The essence of the charges was that he
had breached his contract of employment
and code of ethics by
establishing and participating in a fraudulent scheme with an
external recruitment service provider.
[4]
After interviewing him in connection with such charges on 20 April
2010, Transnet suspended Mr Jeewan on 21 April 2010.
On the same date
he submitted a letter of resignation. Despite the letter of
resignation, Transnet decided to institute disciplinary
proceedings
against him. Mr Jeewan was notified on 7 May 2010 that he was
required to attend a disciplinary hearing on 14 May 2010.
The hearing
commenced on 14 May 2010 and was thereafter postponed to 17 May 2010.
Mr Jeewan was subsequently found guilty. He was
dismissed with
immediate effect in terms of a letter signed by Transnet on 14 May
2010.
[5]
The termination letter further informed Mr Jeewan that he had the
right to refer his dismissal to either the Commission
for
Conciliation, Mediation and Arbitration (CCMA) or to the Transnet
Bargaining Council (TBC) within thirty days of his dismissal.
Mr
Jeewan indeed referred a dispute of unfair dismissal to the TBC in
terms of s 191 of the Labour Relations Act 66 of 1995 (LRA)
on the
grounds that his dismissal was procedurally and substantively unfair.
The relief he sought before the TBC was reinstatement
to his former
employment.
[6]
Arbitration of the dispute between Mr Jeewan and Transnet took place
before the TBC on 1 and 2 September 2011, and thereafter
on 24 and 25
January 2012 before Commissioner, Ms Esther van Kerken (Ms Van
Kerken). On the last day of the hearing, Mr Jeewan
withdrew the
ground predicated on substantive unfairness, but persisted with the
ground that his dismissal was procedurally unfair.
On 1 February 2012
Ms Van Kerken issued an award in terms of which she held that Mr
Jeewan’s dismissal was procedurally fair.
Neither Mr Jeewan nor
Transnet sought to review the arbitration award or make it an order
of court.
[7]
On 29 January 2015, Mr Jeewan served summons on Transnet and EY
claiming damages in the amount of R57 374 996.02
for breach
of his employment contract, alternatively, for delictual damages in
the same amount in terms of the common law. The
damages claimed were
calculated to run from 2010 to 2034, the latter date being the year
when Mr Jeewan would have retired upon
turning sixty-three years of
age as provided for in clause 15.1.3.
[1]
In essence, Mr Jeewan’s delictual claim against Transnet was
premised on the fact that Transnet had acted wrongfully and
unlawfully when it dismissed him prematurely on 14 May 2010. In
response, Transnet delivered a detailed plea which incorporated
three
special pleas. The first concerned an absence of jurisdiction on the
part of the high court to entertain the matter, the
second was that
Mr Jeewan’s claim had prescribed in terms of s 11
(d)
of the Prescription Act
68 of 1969 (Prescription Act), and the third related to
res
judicata
.
[8]
The parties subsequently agreed that the three special pleas should
be adjudicated by the high court before all else.
This was achieved
through a special case based on an agreed set of facts in terms of
rule 33(1) of the Uniform Rules. As alluded
to already, the high
court upheld each of Transnet’s special pleas and dismissed Mr
Jeewan’s claim with costs. EY,
although cited as a second
defendant in the action, did not participate in the special case
before the high court, nor does it
participate in this appeal. In
this Court Mr Jeewan represents himself as he did in the high court.
Issues
on appeal
[9]
In the heads of argument filed in this Court, Transnet conceded,
correctly, that it could no longer defend the high court’s
judgment on the special pleas of jurisdiction and
res judicata
.
In oral submissions before us, counsel for Transnet effectively
abandoned the high court’s judgment on these two issues.
What
effect this late abandonment will have on the issue of costs in this
appeal, will be dealt with below. In the result, the
central issue to
be determined herein is whether Mr Jeewan’s claim against
Transnet had prescribed within a period of three
years from his
alleged unfair dismissal on 14 May 2010 in terms of
s 11
(d)
of
the
Prescription Act, as
contended for by Transnet, or whether, the
debt which Mr Jeewan relies on for the relief claimed in his action
against Transnet,
only arose on 1 February 2012 when the arbitration
award was issued, as contended for by Mr Jeewan.
The
special case
[10]
After a brief introductory paragraph, the agreed special case placed
before the high court for adjudication, was the
following:
‘
A. THE
PARTIES
1. The plaintiff is
SANOJ JEEWAN (aka MARK)
, an adult male whose residential
address is at 1[…] W[…] E[…] Street, A[…]
C[…], R[…]
N[…], C[…], PRETORIA.
2. The first
defendant is
TRANSNET SOC LIMITED
, a state-owned company, duly
established in terms of the Legal Succession to the South African
Transport Services Act 9 of 1989
and incorporated with share capital
in accordance with the company laws of the Republic of South Africa,
and operating through
its
TRANSNET ENGINEERING
division, with
its principal place of business at 160 Lynette Street, Kilner Park,
PRETORIA.
3. The second
defendant is
ERNEST & YOUNG (‘EY’)
, South
Africa, a registered firm of accountants and auditors with full legal
capacity, with its principal place of business at
1[…] R[…]
Road, S[…], JOHANNESBURG. At all material [times] hereto EY
rendered internal audit and forensic
services to the first defendant.
B. AGREED FACTS
Plaintiff’s
employment until dismissal on 14 May 2010
4. The plaintiff
was employed by the first defendant as Corporate Governance Manager
and the related contract of employment
came into effect on 2 October
2006.
5. At all material
times hereto, the first defendant had a Fraud Prevention plan which
included such policies as Code of Ethics,
Policy on Declaration of
Interest and Related Disclosures, Gift Policy and Anti-Fraud Policy.
6. As Corporate
Governance Manager the plaintiff was the forensic champion of the
first defendant and his duties included
the coordination of
Investigations, forensic fraud prevention and detection, taking
remedial and corrective action, reporting to
the first’s
defendant’s Forensic Working Group and ensuring that everyone
in his division knew the contents of the
Fraud Prevention Plan and
all the concomitant policies. The plaintiff also oversaw the internal
control and compliance function
at the first defendant.
7. Following a
forensic investigation conducted by the second defendant, the first
defendant laid charges of misconduct against
the plaintiff. The
charges against the plaintiff were mainly that he had breached his
contract of employment and the Code of Ethics
in that he had
established and participated in a fraudulent scheme with an external
recruitment service provider.
8. Subsequent to
the disciplinary hearing, the plaintiff was found guilty and was
summarily dismissed on 14 May 2010.
Dispute at Transnet
Bargaining Council
9. The plaintiff
referred a dispute of unfair dismissal to the Transnet Bargaining
Council in terms of section 191 of the
Labour Relations Act 66 of
1995 (“LRA”) on the grounds that his dismissal was
procedurally and substantively unfair.
10. Arbitration of
the dispute between the plaintiff and the first defendant took place
at the Transnet Bargaining Council
on 1 and 2 September 2011 and on
24 and 25 January 2012 before Commissioner Ms Esther Van Kerken (“
Van
Kerken
”).
11. With regard to
his allegation that his dismissal was procedurally unfair, the
plaintiff raised five objections but dropped
two and persisted with
three, namely
11.1. Lack of
impartiality on the part of the chairperson of the disciplinary
hearing evidenced by statements he had
made during the course of the
disciplinary hearing;
11.2.
Inadequate time given to the plaintiff to prepare for the
disciplinary hearing; and
11.3. Failure
on the part of the first defendant to call
viva voce
evidence
at the disciplinary hearing, thereby depriving the plaintiff of any
opportunity to cross-examine witnesses.
12. On the last day
of the arbitration, namely 25 January 2012, the applicant withdrew
the dispute as regards substantive
unfairness of his dismissal, and
remained with procedural unfairness. The plaintiff did not testify.
Award of
Commissioner
13. On 1 February
2012, Commissioner Van Kerken issued an award in terms of which she
held, amongst others, that the first
defendant effected the dismissal
of the plaintiff with a fair procedure. Copy of the award is attached
hereto duly marked as “
SC1
”.
14. Neither the
plaintiff not the first defendant made application for the review of
the arbitration award nor application
to make the award an order of
the Court.
Plaintiff’s
current civil action
15. On 29 January
2015, the plaintiff served summons on the first defendant, claiming
damages in the amount of R57 374 996.02
for breach of his
contract of employment, alternatively a delictual claim for the same
amount of money in terms of common law.
Copy of the amended
particulars of claim is attached hereto duly marked as Annexure
“
SC2
”.
16. The essence of
the plaintiff’s claim in delict against the first defendant is
that the first defendant acted wrongfully
when it prematurely
dismissed him on 14 May 2010.
First
defendant’s plea
17. The first
defendant delivered a plea, comprising of three special pleas and a
plea-over to the plaintiff’s claim,
copy whereof is attached
hereto and duly marked as Annexure “
SC3
”. The
first defendant’s three special pleas, which appear in
paragraphs 1 to 14 of its plea, are the following: –
17.1. Absence of
Jurisdiction of this Honourable Court;
17.2. Prescription
of the claim; and
17.3.
Res
judicata
18.
The parties have agreed that the three special pleas which the first
defendant has raised be decided separately by this
Honourable Court
as each of them has the potential to dispose of this case, thereby
saving the Court time and the parties time
and costs. Accordingly,
the parties have also agreed that the determination of the merits of
the plaintiff’s claim be stayed
pending the determination of
the three special pleas.
C. QUESTIONS OF
LAW IN DISPUTE
19. The questions
of law in dispute to be adjudicated by this Honourable Court are the
following:
19.1. Whether this
Honourable Court has jurisdiction to hear the claim of the plaintiff.
19.2. Whether the
claim of the plaintiff has become prescribed in terms of
sections
11(d)
of the
Prescription Act 68 of 1969
.
19.3. Whether the
plaintiff’s claim stands to be dismissed on the basis of the
principle of
res judicata
.
D. CONTENTIONS
OF THE PARTIES
First defendant’s
contentions
20.
As regards the special plea of
absence of jurisdiction
, the
following are the contentions of the
first defendant
: –
20.1. This
Honourable Court has no jurisdiction to hear the plaintiff’s
claim for damages because: –
20.1.1. The basis
of the plaintiff’s claim is that the first defendant dismissed
him substantively and procedurally
unfairly on 14 May 2010 (
Vide
paragraphs 3.6, 4.1.1, 4.21, 4.2.2, 5.2 and 5.7 of the plaintiff’s
particulars of claim).
20.1.2. In terms of
section 191 of the Labour Relations Act 66 of 1995 (“
LRA
”),
the power to determine whether a dismissal is procedurally or
substantively unfair lies with the Commission for Conciliation,
Mediation and Arbitration (“
CCMA
”) or the relevant
bargaining council.
20.1.3. In the case
of the plaintiff the power lies with the Transnet Bargaining Council.
20.2. Accordingly, the
first defendant contends that this Honourable Court does not have
jurisdiction to hear the plaintiff’s
claim and that the
plaintiff’s claim be dismissed with costs.
21. With regard to
the special plea of
prescription
, the first defendant contends
as follows: –
21.1. The
basis of the plaintiff’s claim for damages against the first
defendant is his alleged unfair dismissal
from employment which took
place on 14 May 2010.
21.2. The
claim constitutes a debt for purposes of
sections 11(d)
and
12
of the
Prescription Act 68 of 1969
.
21.3. The
debt was due and owing by the first defendant on 14 May 2010, the
date on which the first defendant dismissed
the plaintiff.
21.4. The
plaintiff commenced action by means of summons which he served on the
first defendant on 29 January 2015 which
is more than three years
after the date on which the debt arose.
21.5. In the
premises the Plaintiff’s claim has become prescribed in terms
of
section 11(d)
of the
Prescription Act 68 of 1969
.
21.6.
Accordingly, the first defendant contends that the plaintiff’s
claim be dismissed with costs.
22.
With regard to the special plea of
res judicata
the
first defendant contends as follows: –
22.1. The
basis of the plaintiff’s claim is that he was procedurally and
substantively unfairly dismissed by the
First Defendant from his
employment on 14 May 2010.
22.2. The
plaintiff referred a dispute to the Transnet Bargaining Council
(“
Council
”) in terms of section 191 of the Labour
Relations Act 66 of 1995 (“
LRA
”), alleging that
his dismissal was substantively and procedurally unfair. (
Vide
paragraph 3.7 of the plaintiff’s particulars of claim
).
22.3. On 1
February 2012 a Commissioner of the Council issued an award to the
effect that the dismissal of the plaintiff
was procedurally and
substantively fair.
22.4. In
terms of section 143 of the LRA the arbitration award issued by the
Commissioner is final and binding on the
parties.
22.5. The
plaintiff’s current claim for payment of damages suffered as a
result of his alleged unfair dismissal
by the first defendant is a
claim for the same thing on the same ground and against the same
party.
22.6. The
first defendant accordingly pleads that the plaintiff’s claim
was finally adjudicated by the Council,
a forum of competent
jurisdiction and should therefore be dismissed with costs.
Plaintiff’s
contentions
23. The contentions
of the plaintiff appear in paragraphs 1 to 9 his replication to the
first defendant’s plea, copy
whereof is attached hereto duly
marked as Annexure “
SC4
”.
24. The following
are the contentions of the plaintiff as regards the first defendant’s
special plea of
absence of jurisdiction
.
24.1. The
plaintiff’s claim is not for relief available to him in terms
of the
Labour Relations Act, Act
66 of 1995 (“the LRA”).
The plaintiff seeks no relief in terms of the LRA.
24.2. The
plaintiff’s claim is premised on common law breach of his
contract of employment, and alternatively delict.
24.3. Accordingly,
this Honourable Court does have jurisdiction to hear the plaintiff’s
claim.
25. With regard to
the first defendant’s special plea of
prescription
, the
plaintiff’s contentions appear in paragraphs 4 to 6 of his
replication to the first defendant’s plea and are the
following: –
25.1. It is
denied that the debt was due and owing by the first defendant on 14
May 2010.
25.2. The
plaintiff’s claim arose on 1 February 2012 when the arbitration
award was issued.
25.3. The
plaintiff’s claim is therefore not prescribed.
26.
With regard to the first defendant’s special plea of
re
judicata
, the plaintiff’s contentions appear in
paragraphs 7 to 9 of his replication to the first defendant’s
plea and are the
following:
26.1. The
plaintiff’s claim is for damages on the basis of his unlawful
dismissal, and alternatively delict.
26.2. The
plaintiff’s cause of action in his present cases is different
to the cause of action at the arbitration.
26.3. The
plaintiff’s present claim is, accordingly, not for the same
thing, and on the same ground.
E. RELIEF
SOUGHT BY THE PARTIES
27.
The parties seek the following relief: –
27.1. The
first defendant seeks an order upholding all or any of its three
special pleas and dismissing the plaintiff’s
claim against it
with costs.
27.2. The
plaintiff prays for an order dismissing first defendant’s three
special pleas with costs in the cause.
F. HEADS OF
ARGUMENT
28.
For the purpose of the hearing of this Special Case, the first
defendant is to deliver a paginated index
and its heads or argument
by
23 April 2021
.
29.
The plaintiff is to deliver his heads of argument by
23 May 2021
.’
[11]
As the special case indicates, the pleadings that formed the basis of
the agreed facts and issues to be determined, were
attached to the
document. The pleadings included the amended particulars of claim,
Transnet’s plea and Mr Jeewan’s
replication to the
special pleas.
High
Court’s findings on the special pleas raised by Transnet
[12]
In summary, the high court made the following findings regarding the
issue of jurisdiction. It held that the focal point
of this matter
relates to the unfair dismissal of Mr Jeewan by Transnet, which is in
essence an employment related matter. In order
for the high court to
determine whether Transnet breached the employment contract, the
court would have to apply the requirements
found in the LRA to
determine if Mr Jeewan was unfairly dismissed. Therefore, Mr Jeewan
cannot distance himself from the application
of the LRA. It further
held that Mr Jeewan had misdirected himself by attempting to resolve
his dispute with Transnet via the high
court instead of making use of
the mechanisms set out in the LRA. He should have, according to the
high court, first started with
the LRA instead of bringing the matter
to the high court for adjudication as it did not have jurisdiction
regarding this matter.
[13]
Regarding the issue of prescription the high court made the following
findings. It accepted that in respect of both of
Mr Jeewan’s
contractual and constitutional rights, the high court retained its
jurisdiction in terms of the Constitution.
It further accepted that,
based on his particulars of claim, Mr Jeewan had two claims arising
from the same set of facts. The one
arises from an infringement of
his rights in terms of the LRA over which the labour forums have
exclusive jurisdiction to the exclusion
of the high court. The other
arises from an infringement of his common law rights or, since he was
employed in the public sector,
an infringement of his constitutional
rights over which both the high court and the labour court have
concurrent jurisdiction.
The high court accordingly concluded that,
having regard to the allegations contained in his particulars of
claim, Mr Jeewan should
have asserted his claim based on an
infringement of his common law or constitutional rights, within three
years of 14 May 2010.
The fact that he did not do so meant that any
claim he had was extinguished by prescription.
[14]
On the issue of
res judicata
, the high court held that
Transnet had managed to prove
res judicata
in that on 1
February 2012, the Commissioner of the TBC (a forum of competent
jurisdiction) had delivered an award to the effect
that the dismissal
of Mr Jeewan was procedurally and substantively fair. Therefore, his
current claim for payment of damages suffered
as a result of his
alleged unfair dismissal by Transnet, is a claim for the same relief
based on the same ground and against the
same party. The court
further held that Mr Jeewan’s matter had fully and finally been
adjudicated upon. Furthermore, as held
by the high court, Transnet
managed to show that the matter brought before it constituted the
same matter that Mr Jeewan had brought
before the TBC and therefore
Transnet’s special plea of
res judicata
was upheld.
Mr
Jeewan’s case
[15]
Mr Jeewan contends that his claim against Transnet became due only on
1 February 2012 when the arbitration award was
issued, and not on 14
May 2010 when he was dismissed. He proffers three arguments in this
regard. The first is that the debt was
not immediately claimable by
him on 14 May 2010. The second is that there was no immediate
obligation on Transnet to perform, in
relation to the debt, on 14 May
2010. The third is that the high court, in dealing with the issue of
prescription, failed to apply
the provisions of s 39(2)
[2]
read with s 34
[3]
of the
Constitution.
[16]
In advancing his first argument, Mr Jeewan relies on this Court’s
judgment in
Deloitte
Haskins & Sells Consultants (Pty) Ltd v Bowthorpe Hellerman
Deutsch (Pty) Ltd
[4]
(
Deloitte
Haskins
)
which held, with regard to s 12(1)
[5]
of the
Prescription Act, that
‘prescription shall commence to
run as soon as the debt is due. This means that there has to be a
debt immediately claimable
by the creditor or, stated in another way,
that there has to be a debt in respect of which the debtor is under
an obligation to
perform immediately. It follows that prescription
cannot begin to run against a creditor before his cause of action has
fully accrued
ie before he is able to pursue his claim’.
[17]
With regard to
s 12(1)
of the
Prescription Act, Mr
Jeewan contends
that no debt was due on 14 May 2010 because he was advised by
Transnet to refer his dismissal for arbitration to
either the CCMA or
the TBC. He contends that by referring the dispute to the TBC,
prescription of his claim was not interrupted
but merely delayed or
postponed until the proceedings before the TBC were finalised. As
authority for that proposition, he relied
on a dictum in
Chirwa
v Transnet Limited and Others
[6]
(
Chirwa
)
which held that ‘[w]here an alternative cause of action can be
sustained in matters arising out of an employment relationship,
in
which the employee alleges unfair dismissal or an unfair labour
practice by the employer, it is in the first instance through
the
mechanisms established by the LRA that the employee should pursue her
or his claims’. Relying on
Deloitte
Haskins
,
he argued that since the proceedings before the TBC were finalised on
1 February 2012, this was the date when Transnet became
under an
immediate obligation to perform. In other words, this was when all
the necessary elements of his cause of action came
into existence,
thus entitling him to enforce his claim.
[18]
With regard to the third argument advanced by Mr Jeewan, he contends
that since the provisions of the
Prescription Act limit
rights
guaranteed by s 34 of the Constitution, the high court was obliged to
invoke the provisions of s 39(2) of the Constitution
when
interpreting the
Prescription Act, as
was done by Froneman J in
Myathaza
v Johannesburg Metropolitan Bus Services
(SOC)
Limited t/a Metrobus and Others
[7]
(
Myathaza
).
One of the findings made by Froneman J was that since arbitrations
under the LRA were in fact adjudicative proceedings as contemplated
by s 34 of the Constitution, prescription would commence to run only
on finality of such proceedings. On this basis, Mr Jeewan
argues that
the referral of his dismissal to the TBC for arbitration constituted
‘adjudicative proceedings’ which involved
the ‘service
of a process’ that interrupted prescription in terms of s
15(1)
[8]
of the
Prescription
Act. Furthermore
, his unfair dismissal constitutes a ‘debt’
for purposes of the
Prescription Act and
in the circumstances,
prescription was delayed in terms of
s 13(1)
(f)
.
[9]
Finally, on the issue of costs, Mr Jeewan argues that since he raises
fundamental issues which have a bearing on an infringement
of his
rights guaranteed in
s 39(2)
and s 34 of the Constitution, the
principles laid down in
Biowatch
Trust v Registrar Genetic Resources and Others
[10]
(
Biowatch
)
should apply.
Transnet’s
case
[19]
In broad terms, Transnet contends that whereas before the TBC Mr
Jeewan was asserting his rights in terms of the LRA
not to be
unfairly dismissed, his claim before the high court is one for
damages arising from an alleged breach of his employment
contract and
an infringement of his rights in terms of the common law. Relying on
this Court’s judgment in
Makhanya
v University of Zululand
,
[11]
(
Makhanya
)
Transnet argues that the service of any process on it by Mr Jeewan
for the enforcement of his LRA rights could not, in the
circumstances,
interrupt the running of prescription involving his
rights in terms of the common law. On this basis, so it argues, his
claim for
damages, which arise from an alleged breach of his
employment contract, constitutes a ‘debt’ which arose as
soon as
he was dismissed on 14 May 2010.
[20]
As far as the provisions of s 39(2) and s 34 of the Constitution are
concerned, Transnet argues that there would be no
need for this Court
to interpret the provisions of the
Prescription Act as
was done by
Froneman J in
Myathaza
. It contends that the two cases are
clearly distinguishable. In
Myathaza
the applicant had secured
an arbitration award in his favour which became the subject of review
proceedings before the labour court
when his former employer,
Metrobus, made application for the award to be reviewed and set
aside. This meant that the applicant
could not implement or execute
the award whilst the review proceedings were still pending in the
labour court. When the applicant
subsequently applied to have the
award made an order of court, he was faced with a plea by Metrobus
that the arbitration award
had prescribed in terms of the
Prescription Act three
years after it was issued. Mr Jeewan’s
case is different, so it is argued. Since he is asserting his rights
in terms of his
employment contract and the common law, nothing
prevented him from instituting his action for damages on termination
of his employment
on 14 May 2010.
[21]
As to the applicability of the
Biowatch
principle on the issue
of costs, Transnet contends that
Biowatch
is not intended to
protect every private individual who sues or litigates against the
State. In Mr Jeewan’s case, it is argued
that he was not
asserting rights protected by the Constitution and as such,
Biowatch
finds no application.
Discussion
and findings
[22]
Since the primary issue in this appeal is one of prescription, it is
perhaps convenient to preface this discussion with
what was said by
the Constitutional Court in
Road
Accident Fund and Another v Mdeyide
[12]
(
Mdeyide
)
regarding the important role that time limits play in litigation. The
Court said the following:
‘
In the interests
of social certainty and the quality of adjudication, it is important
though that legal disputes be finalised timeously.
The
realities of time and human fallibility require that disputes be
brought before a court as soon as reasonably possible.
Claims
thus lapse, or prescribe, after a certain period of time. If a
claim is not instituted within a fixed time, a litigant
may be barred
from having a dispute decided by a court. This has been
recognised in our legal system – and others –
for
centuries.’
[13]
The
Court also said the following:
‘
This Court has
repeatedly emphasised the vital role time limits play in bringing
certainty and stability to social and legal affairs
and maintaining
the quality of adjudication. Without prescription periods, legal
disputes would have the potential to be drawn
out for indefinite
periods of time bringing about prolonged uncertainty to the parties
to the dispute. The quality of adjudication
by courts is likely
to suffer as time passes, because evidence may have become lost,
witnesses may no longer be available to testify,
or their
recollection of events may have faded.
[14]
The quality of adjudication is central to the rule of law. For
the law to be respected, decisions of courts must be
given as soon as
possible after the events giving rise to disputes and must follow
from sound reasoning, based on the best available
evidence.’
[15]
[23]
In order to decide the issue of prescription in this appeal, it is
necessary, I believe, to first examine the nature
of the claim that
Mr Jeewan seeks to assert in the high court. As the agreed facts in
the special case show, he seeks no relief
in terms of the LRA. His
claim is one for damages arising from an alleged unlawful termination
(by Transnet) of his employment
contract. In other words, his claim
is based on an infringement of his common law rights and not the LRA.
The contractual basis
for the relief he seeks is that his employment
contract was terminated wrongfully and unlawfully on 14 May 2010. Had
this not occurred,
his contract would have terminated naturally when
he retired at the age of sixty-three in 2034.
[24]
It is perhaps convenient to briefly set out the current state of the
law in circumstances where a litigant, such as Mr
Jeewan, may be
faced with several different causes of action arising from the same
set of facts. In
Makhanya
,
[16]
this Court said the following:
‘
The LRA creates
certain rights for employees that include “the right not to be
unfairly dismissed and [not to be] subjected
to unfair labour
practices”.
[17]
I will
refer to those rights interchangeably as ‘LRA rights’.
Yet employees also have other rights, in common with
other people
generally, arising from the general law. One is the right that
everyone has (a right emanating from the common law)
to insist upon
performance of a contract. Another is the right that everyone has (a
right emanating from the Constitution and elaborated
upon in the
Promotion of Administrative Justice Act) to just administrative
action.
[18]
Thus there is the
potential (I emphasise that I refer only to the potential) for three
separate claims to arise when an employee’s
contract is
terminated. One is for infringement of his or her LRA right. Another
is for infringement of his or her common law right.
And where it
occurs in the public sector, a third is for infringement of his or
her constitutional right.
An LRA right is
enforceable only in the Commission for Conciliation, Mediation and
Arbitration (CCMA)
[19]
or in
the Labour Court.
[20]
(I will
refer to them interchangeably as the ‘Labour Forums’
except where it becomes necessary to distinguish them).
The common
law right is enforceable in the high courts
[21]
and in the Labour Court.
[22]
And the constitutional right is enforceable in the high courts
[23]
and in the Labour Court.’
[24]
[25]
Whilst some confusion and uncertainty may have existed with regard to
the issue of jurisdiction,
[25]
exclusive or otherwise, between the high court and the labour court
arising from certain relevant provisions of the Constitution,
[26]
the LRA
[27]
and the Basic
Conditions of Employment Act
[28]
(BCEA), when dealing with certain labour related matters, this was
authoritatively put to rest by the Constitutional Court in
Baloyi
v Public Protector and Others
[29]
(
Baloyi
).
[26]
The facts in Baloyi were the following: Ms Baloyi was employed by the
Office of the Public Protector on a five-year contract
with effect
from 1 February 2019. The contract provided for a six-month probation
period (ending on 31 July 2019), which could
be extended for not more
than twelve months. At the end of the probationary period, the Office
of the Public Protector would be
entitled to either terminate Ms
Baloyi’s employment in terms of clause 5.3 or confirm her
appointment if it was satisfied
with her ‘level of performance’
in terms of clause 5.5.
[27]
Ms Baloyi’s six-month probation period ended on 31 July 2019.
On 8 October 2019, Ms Baloyi received a letter from
Mr Mahlangu, the
Chief Executive Officer of the Public Protector, inviting her to make
representations on the confirmation of her
employment contract. She
did so in writing on 15 October 2019. On 21 October 2019, Ms Baloyi
received another letter from Mr Mahlangu,
stating that the Office of
the Public Protector was unable to confirm her permanent employment
and that her contract would terminate
on 31 October 2019. The reasons
provided were that she was ‘not suitable for the role of COO
taking into account her overall
capability, skills, performance and
general conduct in relation to the position’.
[28]
Ms Baloyi launched an urgent application in the Pretoria high court,
on the basis that the termination of her employment
was unlawful and
that Ms Mkhwebane, in her capacity as the Public Protector, had not
complied with her constitutional obligations
in terms of s 181(2) of
the Constitution. The alleged unlawfulness of the termination had two
aspects: first, the termination amounted
to a breach of contract and,
secondly, it amounted to an exercise of public power that breached
the principle of legality, a standard
to which all exercises of
public power are measured. Ms Baloyi founded her case on ‘contract,
the Constitution and the Public
Protector’s public duties as an
organ of state’.
[29]
The relief sought by Ms Baloyi in the high court was three-fold.
First, a declaratory order that the decision to terminate
her
employment contract was unconstitutional, unlawful, invalid and of no
force and effect. Second, flowing from that, an order
setting aside
the termination decision. Third, a declaratory order to the effect
that Ms Mkhwebane, in her official capacity, had
failed to fulfil her
obligations under s 181(2) of the Constitution.
[30]
The high court dismissed Ms Baloyi’s application on the basis
that it did not have jurisdiction over the dispute
and that it should
have been brought before the labour court. The high court reasoned
that Ms Baloyi’s contention that her
employment contract had
been terminated unlawfully rested on the allegation that it was
terminated contrary to the Policy on Probation
and Disciplinary
Policy of the Office of the Public Protector and was taken by an
official without the necessary authority. It
also attributed
significance to the fact that Ms Baloyi’s employment contract
contained a clause stating that the employment
relationship could be
terminated at the end of the probationary period in accordance with
the requirements of the LRA. The high
court also noted that Ms
Baloyi’s employment contract incorporated the Policy on
Probation of the Office of the Public Protector,
which stipulates
that ‘following the recommendation to annul the appointment,
Human Resource Division should take the necessary
steps as per the
provisions of the [LRA]’.
[31]
The high court concluded that not only did Ms Baloyi make allegations
that in essence raised ‘a labour dispute
as envisaged by the
LRA, the employment contract itself point[ed] to the LRA as the
vehicle for vindicating the rights under it’.
Relying on dicta
from the Constitutional Courts judgments in
Chirwa
[30]
and
Gcaba
v Minister of Safety
and Security
,
[31]
(
Gcaba
)
the high court concluded that it was precluded from hearing the
matter. The high court did not consider whether the decision to
terminate Ms Baloyi’s employment was taken for an ulterior
purpose, nor did it consider whether the conduct of Ms Mkhwebane
was
otherwise unconstitutional insofar as it allegedly fell short of what
is required by s 181(2) of the Constitution. It made
no ruling
regarding the declaratory relief.
[32]
Significantly in
Baloyi
,
the Constitutional Court found, amongst others, that s 157(1)
of the LRA does not afford the labour court with general jurisdiction
in employment matters and, as a result, the high court’s
jurisdiction will not be ‘ousted by s 157(1) simply because
a
dispute is one that falls within the overall sphere of employment
relations’.
[32]
It found
that both the LRA and the BCEA expressly recognise that there are
certain matters in respect of which the labour court
and the high
court enjoy concurrent jurisdiction. In relevant part, s 157(2) of
the LRA provides:
‘
The
Labour Court has concurrent jurisdiction with the High Court in
respect of any alleged or threatened violation of any fundamental
right entrenched in Chapter 2 of the Constitution of the Republic of
South Africa, 1996, and arising from –
(a)
employment
and from labour relations;
(b)
.
. .
(c)
.
. . .’
[33]
It recognised that similarly, s 77(3) of the BCEA
[33]
provides that the Labour Court ‘has concurrent jurisdiction
with the civil courts to hear and determine any matter concerning
a
contract of employment
,
irrespective of whether any basic condition of employment constitutes
a term of that contract’. It found that disputes arising
from
employment contracts do not, without more, fall within the exclusive
jurisdiction of the labour court is further made clear
by s 77(4) of
the BCEA, which emphasises that the exclusive jurisdiction of the
labour court referred to in s 77(1) –
‘
does
not prevent any person relying upon a provision of [the Employment
Act] to establish that a basic condition of employment constitutes
a
term of a contract of employment in any proceedings in a civil court
or an arbitration held in terms of an agreement.’
[34]
Apart from its other findings relating to the exclusive jurisdiction
of the labour court to hear labour related matters
as well as the
concurrent jurisdiction of both the labour court and the high court
to deal with other rights of employees arising
from the general law,
the following passage from
Baloyi
insofar as it is relevant to
the nature of the right being asserted by Mr Jeewan, is instructive:
‘
The mere potential
for an unfair dismissal claim does not obligate a litigant to frame
her claim as one of unfair dismissal and
to approach the Labour
Court, notwithstanding the fact that other potential causes of action
exist. In other words, the termination
of a contract of
employment has the potential to found a claim for relief for
infringement of the LRA,
and
a claim for enforcement of a right that does not emanate from the LRA
(for example, a contractual right). The following dictum
of the
Supreme Court of Appeal in
Makhanya
,
which squarely addressed a contractual cause of action in the
employment context, is apposite in this regard:
“
The LRA creates
certain rights for employees that include the right not to be
unfairly dismissed and [not to be] subjected to unfair
labour
practices. . . . Yet employees also have other rights, in
common with other people generally, arising from the general
law.
One is the right that everyone has (a right emanating from the common
law) to insist upon performance of a contract.
When
a claimant says that the claim arises from the infringement of the
common-law right to enforce a contract, then that is the
claim, as a
fact, and the court must deal with it accordingly. When a
claimant says that the claim is to enforce a right
that is created by
the LRA, then that is the claim that the court has before it, as a
fact. When he or she says that the
claim is to enforce a right
derived from the Constitution, then, as a fact, that is the claim.
That the claim might be a bad claim
is beside the point.”’
[34]
Although
these remarks were made in the context of a jurisdiction issue, they
are equally apposite in relation to the plea of prescription
that was
raised in this matter.
[35]
As the Constitutional Court accepted in
Baloyi
,
[35]
the approach endorsed in
Makhanya
aligns with a series of
judgments of this Court
[36]
that have confirmed that a contractual claim arising from a breach of
a contract of employment falls within the ordinary jurisdiction
of
the high court, notwithstanding the fact that the contract is one of
employment.
[36]
The following further extracts from
Baloyi
confirm that
employees are not deprived of their common law remedies on
termination of a contract of employment:
‘
Indeed,
contractual rights exist independently of the LRA. As the Supreme
Court of Appeal has on numerous occasions emphasized,
section 23 of
the Constitution does not deprive employees of a common law right to
enforce the terms of a fixed-term contract of
employment and the LRA,
in turn, does not confine employees to the remedies for “unfair
dismissal” provided for in
the Act.
[37]
Chapter VIII of the LRA is “not exhaustive of the rights and
remedies that accrue to an employee upon termination of contract
of
employment.”
[38]
Matters
“concerning a contract of employment, irrespective of whether
any basic condition of employment constitutes a term
of that
contract”, are expressly noted in section 77(3) of the
Employment Act as falling within the
concurrent
jurisdiction of the High
Court and the Labour Court. The question whether contractual
claims arising from employment contracts
fall within the concurrent
jurisdiction of the High Court and the Labour Court has not
explicitly arisen before this Court. However,
as noted above, the
Supreme Court of Appeal has explained on numerous occasions, with
reference to the reasoning of this Court
regarding jurisdiction over
claims based on administrative action in the labour sphere, that the
High Court retains its jurisdiction
in respect of claims arising from
the enforcement of contractual rights in the employment context.
[39]
This finding is borne out by the plain language of section 77(3) of
the Employment Act, quoted above, and sections 157(1) and 157(2)
of
the LRA.’
[40]
[37]
On the above reasoning, the Constitutional Court held that:
‘
A claim for
contractual breach, absent reliance on any provision of the LRA, can
be identified on Ms Baloyi’s papers. The
LRA does not
extinguish contractual remedies available to employees following a
breach of their contract of employment, or unlawful
termination
thereof. While she may also have a claim for unfair dismissal in
terms of the LRA, Ms Baloyi has elected not to pursue
this claim.
Nothing in the LRA, or the BCEA, required her to advance that claim
in the Labour Court.’
[41]
[38]
Against the backdrop of the legal principles enunciated by this Court
in the number of decisions referred to above, and
as confirmed by the
Constitutional Court in
Baloyi
,
there can be no doubt that Mr Jeewan’s claim as well, which is
located in the common law, falls within the ordinary jurisdiction
of
the high court. It follows that the high court’s conclusion on
the issue of jurisdiction was incorrect. Furthermore, since
the LRA
does not extinguish contractual remedies available to employees
following a breach of or unlawful termination of a contract
of
employment,
[42]
it further
follows, by parity of reasoning, that the high court’s finding
that the matter was
res
judicata
on
account of the claim pursued at the TBC and finalised in terms of the
arbitration award was similarly incorrect. In the circumstances,
Transnet’s concessions on the issue of jurisdiction and res
judicata, albeit late, are nonetheless correct. The real issue
of
course is whether his claim has prescribed in terms of s 11
(d)
of the
Prescription Act.
It
is to this issue that I now turn.
[39]
Section 12(1)
of the
Prescription Act provides
that ‘subject to
the provisions of ss (2), (3) and (4), prescription shall commence to
run as soon as the debt is due’.
For purposes of the Act, the
term ‘debt due’ means a debt, including a delictual debt,
which is owing and payable.
A debt is due in this sense when the
creditor acquires a complete cause of action for the recovery of the
debt, that is when the
entire set of facts which the creditor must
prove in order to succeed with his or her claim against the debtor is
in place or,
in other words, when everything has happened which would
entitle the creditor to institute action and to pursue his or her
claim.
[43]
A ‘cause of
action’ for purposes of prescription means –
‘
.
. . every fact which it would be necessary for the plaintiff to
prove, if traversed, in order to support his right to the judgment
of
the Court. It does not comprise every piece of evidence which is
necessary to prove each fact, but every fact which is necessary
to be
proved.’
[44]
[40]
A close examination of the allegations set out in his amended
particulars of claim as well as the agreed facts contained
in the
special case, indicates that Mr Jeewan pursues a claim for
contractual breach alternatively delictual damages arising from
the
unlawful termination of the contract. The series of allegations he
relies on in paragraph 4 of the particulars of claim for
a
contractual breach are precisely the same as for his delictual claim
in paragraph 5, save that he now pleads wrongfulness, intention
and/or negligence on the part of Transnet.
[41]
As correctly pointed out by Transnet’s counsel, Mr Jeewan makes
the following concession:
‘
It is common cause
that my LRA claim at the TBC is not the same as my contractual claim
in the High Court.’
The
significance of this concession is that whilst he pursued a claim for
reinstatement before the TBC, his claim before the high
court is for
damages arising out of a breach of his contract of employment
alternatively delictual damages for unlawful termination
of his
contract in terms of the common law. As the background facts
indicate, Mr Jeewan was fully aware of the sequence of events
that
led to the holding of the disciplinary hearing against him on 14 and
17 May 2010. He was also fully aware of the fact that
despite the
hearing being postponed to 17 May 2010, he was effectively dismissed
on 14 May 2010 when Transnet had signed the termination
letter. He
was consequently aware, on 14 May 2010, of the fact that his
dismissal was unlawful. And, of course, he was aware
of the
identity of the debtor. All this points to the fact that his ‘cause
of action’ for contractual damages arose
on 14 May 2010.
[42]
For his delictual claim, the requirements of fault and unlawfulness
do not constitute
factual
ingredients of the ‘cause of
action’, but amount to
legal
conclusions to be drawn
from the facts:
‘
A cause of action
means the combination of
facts
that are material for the
plaintiff to prove in order to succeed with his action. Such facts
must enable a court to arrive at certain
legal
conclusions regarding unlawfulness and fault
,
the
constituent conclusions regarding the unlawfulness of a delictual
cause of action
being
a combination of factual and legal conclusions, namely, a causative
act, harm, unlawfulness and culpability or fault.’
[45]
(Emphasis added.)
[43]
Mr Jeewan’s argument that there was no immediate obligation on
the part of Transnet to perform, in relation to
the debt, on 14 May
2010, is not borne out by the agreed facts contained in the special
case. In the special case, Transnet admitted
firstly that Mr Jeewan’s
claim constituted a ‘debt’ for purposes of
ss 11
(d)
and
12
of the
Prescription Act. And
secondly, that the debt was due
and owing by it on 14 May 2010 when it dismissed him. The fact that
Mr Jeewan referred his unfair
dismissal to the TBC for arbitration,
as he was advised to do by Transnet, is an election that he made at
the time. This does not,
in any way, detract from the fact that his
contractual debt became due on 14 May 2010 and as such was hit by the
provisions of
s 11
(d)
of the
Prescription Act.
[44
]
The final submission to consider is whether the high court was
obliged to
re-interpret the provisions of the
Prescription Act
having
regard to
s 39(2)
and s 34 of the Constitution on the basis
that the
Prescription Act limits
rights in terms of the Bill of
Rights. Inasmuch as the high court’s judgment is silent on this
aspect, we were informed by
Mr Jeewan that this issue was raised by
him in his heads of argument before that court. Counsel for Transnet
did not contend otherwise.
Whilst it is true that the
Prescription
Act does
limit rights in the Bill of Rights, I do not believe, for
the reasons set out herein, that
s 12
of the
Prescription Act needs
to be interpreted any differently in respect of the claim being
asserted by Mr Jeewan in these proceedings. As mentioned already,
his
present claim is for damages arising out of a contractual breach that
took place on 14 May 2010. This claim was not dependent
on the
outcome of any other claim for relief arising out of an infringement
of the LRA. As the
ratios
both in
Makhanya
and
Baloyi
confirm, on the termination of an employment contract an employee can
find a claim for relief for infringement of the LRA, and
a claim for
enforcement of a right that does not emanate from the LRA, for
example, a contractual right. It is clear from
Baloyi
that
there is no obligation on such a litigant to wait for the LRA
processes to be exhausted before invoking common law remedies.
In Mr
Jeewan’s case, the route he elected to follow was to seek
re-instatement of his employment. From the date of dismissal,
the
running of prescription was triggered. It was only when the award was
made against him that he decided to follow a different
route, that
is, sue for damages. By then it was already five years down the line
and his claim had already prescribed.
[45]
I am accordingly of the view that Mr Jeewan’s reliance on the
judgment of Froneman J in
Myathaza
is misconceived. As
Transnet correctly argues, the two cases are distinguishable in the
manner already alluded to in paragraph
18 above.
[46]
As alluded to earlier, the facts in
Myathaza
are
clearly distinguishable from the present matter. Mr Myathaza was
asserting rights solely in terms of the LRA whereas Mr Jeewan,
having
failed with his dispute before the TBC, then decided to pursue a
claim for damages arising out of a contractual breach and
in terms of
the common law. Mr Jeewan was aware of every fact which it would be
necessary for him to prove, if traversed, in order
to support his
litigation in the high court. Whilst there may have been a need to
re-interpret the
Prescription Act in
terms of
s 39(2)
and s 34 of the
Constitution in Mr Myathaza’s case, no such need arises in Mr
Jeewan’s case. As observed by the Constitutional
Court in
Baloyi
,
where more than one potential cause of action arises because of a
dismissal dispute, ‘a litigant must choose the cause of
action
she wishes to pursue and prepare her pleadings accordingly’.
[46]
Thus, pursuant to Mr Jeewan’s dismissal, nothing stopped him
from approaching the high court sooner for purposes of pursuing
his
common law claim. All in all, I am of the view that none of the
arguments advanced by Mr Jeewan regarding the issue of
prescription
in this appeal are sustainable. The appeal directed to that leg of
the appeal must accordingly fail.
[47]
However, as stated before, Transnet’s concessions in respect of
the special pleas pertaining to jurisdiction and
res judicata
,
respectively, were correctly made, and the appeal directed at the
orders of the high court upholding those two special pleas must
succeed, as these orders were not formally abandoned and therefore
still stand. This, however, does not detract from the fact that
in
the stated case, Transnet sought an order ‘upholding all or any
of its three special pleas’. Thus, Transnet would
have been
entitled to the dismissal of Mr Jeewan’s claim. This brings me
to the issue of costs.
Costs
[48]
As I pointed out at the outset of this judgment, Mr Jeewan represents
himself in these proceedings. Ordinarily he would
not have incurred
any legal costs except for certain out of pocket expenses for travel
and accommodation, etc. and certain disbursements
for procuring the
record. The general rule for the award of costs in constitutional
litigation between a private party and the
State is that, if the
private party is successful, costs should be paid by the State, and
if unsuccessful, each party should pay
its own costs.
[47]
This is known as the ‘
Biowatch
principle’. Mr
Jeewan contends that the principles in
Biowatch
[48]
should apply. Relying on
Makate
v Vodacom (Pty) Ltd
[49]
(
Makate
),
he contends that courts must always bear in mind the provisions of s
39(2) when interpreting legislation. If the provision under
consideration implicates the rights in the Bill of Rights, then the
obligation to apply s 39(2) is activated, thus enjoining the
court to
promote the purport, spirit and objects of the bill of rights when
interpreting the specific provision. In that judgment,
the
Constitutional Court found that it could not be disputed that s 10
read with
ss 11
and
12
of the
Prescription Act limits
the rights
guaranteed by s 34 of the Constitution.
[50]
It went on to find that in construing those provisions, the high
court ‘was obliged to follow s 39(2) irrespective of whether
the parties had asked for it or not’.
[49]
There are, however, exceptions to the
Biowatch
principle as set out in
Affordable
Medicines Trust v Minister of Health
,
[51]
a case decided before
Biowatch
,
in which Nqcobo J (as he then was) observed that there may be
circumstances which justify the departure from the general rule
on
costs in constitutional litigation, such as where the litigation is
frivolous
or
vexatious
.
Later on, in
Lawyers
for Human Rights v Minister in the Presidency and Others
,
[52]
the Constitutional Court explained the exceptions to the
Biowatch
principle
as follows:
‘
What is
“vexatious”? In
Bisset
this
Court said this was litigation that was frivolous, improper,
instituted without sufficient ground, to serve solely as an annoyance
to the defendant”. And a frivolous complaint? That is one with
no serious purpose or value. Vexatious litigation is initiated
without probable cause by one who is not acting in good faith and is
doing so for the purpose of annoying or embarrassing an opponent.
Legal action that is not likely to lead to any procedural result is
vexatious.’
[53]
[50]
Should Mr Jeewan be held liable for any costs now that he is
unsuccessful? Considering the dictum in
Chirwa
, which has been
alluded to earlier, I do not believe that the litigation that Mr
Jeewan embarked upon can be said to be improper,
frivolous or
vexatious. In my view, the
Biowatch
principle is applicable
both in respect of this appeal and the high court litigation.
[51]
There is a further reason why I do not believe that Mr Jeewan should
be liable for any costs. This arises from Transnet’s
late
abandonment of the issues of jurisdiction and
res
judicata
in
this Court. Having concluded, correctly, that the high court was
wrong on these issues and that it could no longer defend the
appeal
in that regard, Transnet could have abandoned the judgment on these
issues at a much earlier stage.
[54]
Instead it put Mr Jeewan to the inconvenience of having to prepare
his heads of argument on these issues as well. As a result,
two of
the orders granted by the high court fall to be set aside. In all the
circumstances, I consider that it would be fair if
both parties
carried their own costs herein.
Order
[52]
In the result, the orders I make are the following:
1 The appeal is
dismissed, save to the extent set out below.
2 The appeal in
relation to the orders upholding the special pleas of jurisdiction
and
res judicata
is upheld.
3 The order of the
High Court is set aside and replaced with the following order:
‘
3.1 The
special plea of prescription is upheld.
3.2 The special
pleas of jurisdiction and
res judicata
are dismissed.
3.3 The
plaintiff’s claim is dismissed.
3.4 There is no
order as to costs.’
4 There is no
order as to costs in this Court.
R
SEEGOBIN
ACTING
JUDGE OF APPEAL
Appearances
For
the appellant:
S Jeewan (in person)
For
the first respondent:
Adv M K Mathipa
Instructed
by:
Ningiza Horner Incorporated, Sandton
McIntyre van der Post,
Bloemfontein
[1]
Clause 15 of the employment contract deals with termination of
employment. It provides as follows:
‘
15.
TERMINATION
OF EMPLOYMENT
15.1
This contract of employment will terminate:
15.1.1
At the instance of the employee (resignation); or
15.1.2
At the instance of Transnet if Transnet terminates the Employee’s
employment for reasons relating to the employee’s
conduct,
capacity or the operational requirements of Transnet or any other
reason that is recognised by law as being sufficient;
or
15.1.3
At the end of the month in which he turns sixty-three years of age,
unless the Employee and Transnet agree otherwise in
writing, or the
Employee’s employment has been terminated for any other lawful
reason.’
[2]
Section 39(2) compels every court, tribunal or forum, when
interpreting any legislation, and when developing the common law,
to
promote the spirit, purport and objects of the Bill of Rights.
[3]
Section 34 accords to every person 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.
## [4]Deloitte
Haskins & Sells Consultants (Pty) Ltd. v Bowthorpe Hellerman
Deutsch (Pty) Ltd[1990]
ZASCA 136; 1991 (1) SA 525 (A); [1991] 1 All SA 400 (A) at 532H-I.
[4]
Deloitte
Haskins & Sells Consultants (Pty) Ltd. v Bowthorpe Hellerman
Deutsch (Pty) Ltd
[1990]
ZASCA 136; 1991 (1) SA 525 (A); [1991] 1 All SA 400 (A) at 532H-I.
[5]
Section 12(1)
of the
Prescription Act provides
that ‘subject
to the provisions of subsection (2), (3), and (4), prescription
shall commence to run as soon as the debt
is due’.
[6]
Chirwa
v Transnet Limited and Others
[2007]
ZACC 23
;
2008 (4) SA 367
(CC);
2008 (3) BCLR 251
(CC);
[2008] 2 BLLR
97
(CC); (2008) 29 ILJ 73 (CC) para 41.
## [7]Myathaza
v Johannesburg Metropolitan Bus Services (SOC) Limited t/a Metrobus
and Others[2016]
ZACC 49; (2017) 38 ILJ 527 (CC); [2017] 3 BLLR 213 (CC); 2017 (4)
BCLR 473 (CC); 2018 (1) SA 38 (CC).
[7]
Myathaza
v Johannesburg Metropolitan Bus Services (SOC) Limited t/a Metrobus
and Others
[2016]
ZACC 49; (2017) 38 ILJ 527 (CC); [2017] 3 BLLR 213 (CC); 2017 (4)
BCLR 473 (CC); 2018 (1) SA 38 (CC).
[8]
Section 15(1)
of the
Prescription Act provides
that the running of
prescription shall, subject to the provisions of subsection (2) be
interrupted by the service on the debtor
of any process whereby the
creditor claims payment of the debt.
[9]
Section 13(1)
(f)
of the
Prescription Act provides
that if the debt is the object of a
dispute subjected to arbitration, the period of prescription shall
not be completed before
a year has elapsed after the day referred to
in paragraph (i).
## [10]Biowatch
Trust v Registrar Genetic Resources and Others[2009] ZACC 14; 2009 (6)
SA 232 (CC); 2009 (10) BCLR 1014 (CC).
[10]
Biowatch
Trust v Registrar Genetic Resources and Others
[2009] ZACC 14; 2009 (6)
SA 232 (CC); 2009 (10) BCLR 1014 (CC).
## [11]Makhanya
v University of Zululand[2009]
ZASCA 69; 2010 (1) SA 62 (SCA); [2009] 8 BLLR 721 (SCA); [2009] 4
All SA 146 (SCA); (2009) 30 ILJ 1539 (SCA) paras 12-13.
[11]
Makhanya
v University of Zululand
[2009]
ZASCA 69; 2010 (1) SA 62 (SCA); [2009] 8 BLLR 721 (SCA); [2009] 4
All SA 146 (SCA); (2009) 30 ILJ 1539 (SCA) paras 12-13.
## [12]Road
Accident Fund and Another v Mdeyide[2010]
ZACC 18; 2011 (1) BCLR 1 (CC); 2011 (2) SA 26 (CC); See also the
remarks of Didcott J inLeach
Mokela Mohlomi v Minister of Defence1996
(12) BCLR 1559; 1997 (1) SA 124.
[12]
Road
Accident Fund and Another v Mdeyide
[2010]
ZACC 18; 2011 (1) BCLR 1 (CC); 2011 (2) SA 26 (CC); See also the
remarks of Didcott J in
Leach
Mokela Mohlomi v Minister of Defence
1996
(12) BCLR 1559; 1997 (1) SA 124.
[13]
Mdeyide
para
2.
[14]
See
Mohlomi
v Minister of Defence
[1996] ZACC 20
;
1997
(1) SA 124
(CC);
1996 (12) BCLR 1559
(CC) para 11. See also
Engelbrecht
v Road Accident Fund and Another
[2007]
ZACC 1
;
2007 (6) SA 96
(CC);
2007 (5) BCLR 457
(CC) para 29 and
Brümmer
v Minister for Social Development and Others
[2009] ZACC 21
;
2009 (6)
SA 323
(CC);
2009 (11) BCLR 1075
(CC) paras 64-67.
[15]
Mdeyide
fn 12
para 8.
## [16]Makhanyafn 11
paras 11-13.
[16]
Makhanya
fn 11
paras 11-13.
[17]
Section 185
of the LRA.
[18]
Section 33(1) of the Constitution: ‘Everyone has the right to
administrative action that is lawful, reasonable and procedurally
fair.’ The Interim Constitution provided a right in comparable
terms in s 24.
[19]
Created by s 112 of the LRA.
[20]
So far as disputes fall within the jurisdiction of the CCMA the
exclusivity of its powers is implicit in the procedures for
resolution of such disputes. As for the Labour Court, s 157(1) of
the LRA provides: ‘. . . [T]he Labour Court has exclusive
jurisdiction in respect of all matters that elsewhere in terms of
this Act … are to be determined by the Labour Court.’
(see
Fedlife
Assurance Ltd v Wolfaardt
2002
(1) SA 49
(SCA) (
Fedlife
),
on the meaning of that subsection, approved in
Fredericks
v MEC for Education and Training, Eastern Cape
2002 (2) SA 693 (CC)).
[21]
Section 169
(b)
of the Constitution. The
section assigns judicial authority to the high courts in the
following terms:
‘
A
High Court may decide –
(a)
any constitutional matter except a matter that:
(i)
only the Constitutional Court may decide; or
(ii)
is assigned by an Act of Parliament to another court of a status
similar to a High Court; and
(b)
any other matter not assigned to another court by an Act of
Parliament.
[22]
Section 77(3) of the Basic Conditions of Employment Act: ‘The
Labour Court has concurrent jurisdiction with the civil courts
to
hear and determine any matter concerning a contract of employment …’
[23]
Section 169
(a)
(ii)
quoted above.
[24]
Section 157(2) of the LRA: ‘The Labour Court has concurrent
jurisdiction with the High Court in respect of any alleged
or
threatened violation of any fundamental right entrenched in Chapter
2 of the [Constitution] and arising from … employment
and
from labour relations.’
## [25]Fredericks
and Others v MEC for Education and Training Eastern Cape and Others2002
(2) BCLR 113; 2002 (2) SA 693; [2002] 2 BLLR 119 (CC) (Fredericks).
[25]
Fredericks
and Others v MEC for Education and Training Eastern Cape and Others
2002
(2) BCLR 113; 2002 (2) SA 693; [2002] 2 BLLR 119 (CC) (
Fredericks
).
[26]
Section 169(1) of the Constitution 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.’
[27]
Section 157(1) of the LRA reads:
‘
Subject
to the Constitution and section 173, and except where
this
Act
provides
otherwise, the Labour Court has exclusive jurisdiction in respect of
all matters that elsewhere in terms of
this
Act
or
in terms of any other law are to be determined by the Labour Court.’
[28]
Section 77(1) of the BCEA provides:
‘
Subject
to the Constitution and the jurisdiction of the Labour Appeal Court,
and except where this Act provides otherwise, the
Labour Court has
exclusive jurisdiction in respect of all matters in terms of this
Act.’
## [29]Baloyi
v Public Protector and Others[2020]
ZACC 27; 2021 (2) BCLR 101 (CC); [2021] 4 BLLR 325 (CC); (2021) 42
ILJ 961 (CC); 2022 (3) SA 321 (CC).
[29]
Baloyi
v Public Protector and Others
[2020]
ZACC 27; 2021 (2) BCLR 101 (CC); [2021] 4 BLLR 325 (CC); (2021) 42
ILJ 961 (CC); 2022 (3) SA 321 (CC).
[30]
Chirwa
fn 6
para 161.
[31]
Gcaba v
Minister of Safety and Security
and
Others
[2009] ZACC 26
;
2010 (1) SA 238
(CC);
2010 (1) BCLR 35
(CC);
(2010) 31 ILJ 296 (CC);
[2009] 12 BLLR 1145
(CC) para 8.
[32]
Fredericks
fn 25 para 40. See also
Fedlife
fn 20
para 25, in which Nugent JA held that: ‘s 157 (1) does not
purport to confer exclusive jurisdiction upon the Labour
Court
generally in relation to mattes concerning the relationship between
employer and employees’. The approach endorsed
in
Fredericks
and
FedLife
was also followed in
various judgments of the High Court, including
Jacot-Guillarmod
v Provincial Government
1999
(3) SA 594
(T) at 600E-G and
Runeli
v Minister of Home Affairs
2000
(2) SA 314
(TKH) at 323-324.
[33]
While reference is made herein to the BCEA as it was done in
Baloyi
,
it finds no application in this matter.
[34]
Baloyi
fn 29
para 40.
[35]
Baloyi
fn 29 para 41.
[36]
Lewarne
v Fochem International (Pty) Ltd
[2019]
ZASCA 114
; (2019) 40 ILJ 2473 (SCA);
[2020] 1 BLLR 33
(SCA) para 9;
South
African Maritime Safety Authority v McKenzie
[2010] ZASCA 2
;
2010 (3)
SA 601
(SCA);
[2010] 3 All SA 1
(SCA) para 7 (
McKenzie
).
Manana
v King Sabata Dalindyebo Municipality
[2010]
ZASCA 144
;
[2011] 3 All SA 140
(SCA);
[2011] 3 BLLR 215
(SCA);
(2011) 32 ILJ 581 (SCA) para 23 (
Manana
);
and
Fedlife
fn 20 paras 4-5 and 24.
[37]
Fredericks
fn 25 para 40. See also
Fedlife
fn 20
para 25, in which Nugent JA held that:‘s 157(1) does not
purport to confer exclusive jurisdiction upon the Labour
Court
generally in relation to mattes concerning the relationship between
employer and employees’. The approach endorsed
in
Fredericks
and
FedLife
was also followed in
various judgments of the High Court, including
Jacot-Guillarmod
v Provincial Government
1999
(3) SA 594
(T) at 600E-G and
Runeli
v Minister of Home Affairs
2000
(2) SA 314
(TKH) at 323-324, see fn 32 above.
[38]
Fedlife
fn 20 para 22.
[39]
See,
for example,
Makhanya
fn
11 paras 12-13 and 18;
Fedlife
fn
20 paras 4-5 and 24;
Manana
fn
36 para 23; and
McKenzie
fn 36 paras 7-9.
[40]
Baloyi
fn 29 paras 46-47.
[41]
Ibid para 48.
[42]
Ibid.
[43]
See, for example,
Truter
and Another v Deysel
[2006]
ZASCA 16
;
2006 (4) SA 168
(SCA) para 16 (
Truter
);
Evins v
Shields Insurance Co. Ltd
1980
(2) SA 814
(A) (
Evins
)
at 838D-H, and
Deloitte
Haskins
fn
4 at 532H-I.
[44]
McKenzie
v Farmers’ Co-operative Meat Industries Ltd
1922 AD 16
at 23, cited
with approval in
Evins
at
838D-F.
[45]
See M M Loubser
Extinctive
Prescription
1
ed (1996) para 4.6.2 at 80-81;
Evins
fn 43 at 838D-H;
Deloitte
Haskins
fn
4 at 532H-I;
Truter
fn 43 para 17.
[46]
Baloyi
fn 29
para 38.
[47]
Biowatch
fn 10
para 43.
[48]
Biowatch
fn 10.
[49]
Makate
v Vodacom (Pty) Ltd
[2016]
ZACC 13; 2016 (4) SA 121 (CC); 2016 (6) BCLR 709 (CC).
[50]
Ibid
para 90.
[51]
Affordable
Medicines Trust v Minister of Health
[2005]
ZACC; 2006
(3) SA 247 (CC)
[2005] ZACC 3
; ;
2005 (6) BCLR 529
(CC) para 138.
[52]
Lawyers
for Human Rights v Minister in the Presidency and Others
[2016] ZACC 45; 2017 (1)
SA 645 (CC); 2017 (4) BCLR 445 (CC).
[53]
Ibid para 19.
[54]
Rule 41(2) of the Uniform Rules.
sino noindex
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