Case Law[2022] ZASCA 9South Africa
Arcus v Arcus (4/2021) [2022] ZASCA 9; [2022] 1 All SA 626 (SCA); 2022 (3) SA 149 (SCA) (21 January 2022)
Supreme Court of Appeal of South Africa
21 January 2022
Headnotes
Summary: Interpretation of s 11(a)(ii) of the Prescription Act 68 of 1969 – whether a maintenance order is a judgment debt, subject to 30 years’ prescription period, or any other debt, subject to three years’ prescription period – held: maintenance orders are final, executable and appealable – a maintenance order is thus a judgment debt for the purposes of the Prescription Act, and subject to 30 years’ prescription period.
Judgment
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## Arcus v Arcus (4/2021) [2022] ZASCA 9; [2022] 1 All SA 626 (SCA); 2022 (3) SA 149 (SCA) (21 January 2022)
Arcus v Arcus (4/2021) [2022] ZASCA 9; [2022] 1 All SA 626 (SCA); 2022 (3) SA 149 (SCA) (21 January 2022)
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sino date 21 January 2022
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
JUDGMENT
Reportable
Case
no: 4/2021
In
the matter between:
SIMON
ROY
ARCUS
APPELLANT
and
JILL
HENREE
ARCUS
RESPONDENT
Neutral citation:
Simon
Roy Arcus v Jill Henree Arcus
(4/2021)
[2022] ZASCA 9
(21
January 2022)
Coram:
DAMBUZA,
MOCUMIE and HUGHES JJA and KGOELE and SMITH AJJA
Heard:
18
November 2021
Delivered:
This
judgment was handed down electronically by circulation to the
parties’ representatives via email, publication on the Supreme
Court of Appeal website and released to SAFLII. The date and time for
hand-down is deemed to be 10:00 am on 21 January 2022.
Summary:
Interpretation
of
s 11
(a)
(ii)
of the
Prescription Act 68 of 1969
– whether a maintenance order is
a judgment debt, subject to 30 years’ prescription period, or any
other debt, subject to three
years’ prescription period – held:
maintenance orders are final, executable and appealable – a
maintenance order is thus a
judgment debt for the purposes of the
Prescription Act, and
subject to 30 years’ prescription period.
ORDER
On appeal from:
Western Cape
Division of the High Court, Cape Town (Francis AJ, sitting as court
of first instance):
The appeal is
dismissed with costs.
JUDGMENT
Smith
AJA (Dambuza and Hughes JJA concurring)
[1]
The
circumscribed issue for determination in this appeal is whether an
undertaking to pay maintenance in a divorce consent paper,
which was
made an order of court, gives rise to a ‘judgment debt’ as
contemplated in section 11
(a)
(ii)
of the Prescription Act 68 of 1969 (the
Prescription Act or
the Act),
with a prescriptive period of 30 years, or any ‘other debt’, as
contemplated in section 11
(d)
of the Act, with a prescriptive period of three years.
[2]
The
facts are common cause, but not really germane for the resolution of
the posed legal question. I therefore summarise them briefly
and only
to provide context.
[3]
When
the appellant and the respondent divorced each other on 27 July 1993,
they entered into a consent paper which,
inter
alia
,
provided that the appellant would pay maintenance for the respondent
until her death or remarriage, and for their two minor daughters
until they became self-supporting. The consent paper was made an
order of court.
[4]
It is
common cause that the appellant’s obligations to pay maintenance in
respect of the minor children terminated during 2002 and
2005,
respectively, when they became self-supporting.
[5]
Despite
the fact that the appellant failed to pay the maintenance stipulated
in the consent paper, the respondent did not take any
steps to
recover the arrear maintenance until December 2018, when she
instructed her attorneys to send a letter of demand to the
appellant.
Notwithstanding demand, the appellant failed to pay the arrear
maintenance, but commenced paying the monthly maintenance
due to the
respondent from January 2019.
[6]
On 27
August 2019, the appellant lodged an application in the maintenance
court for the retrospective discharge of his maintenance
obligations
in terms of the consent paper (the discharge application). That
application is still pending.
[7]
On 17
February 2020, the respondent caused a writ of execution to be issued
in respect of the arrear maintenance of some R3.5 million.
That writ
was served on the appellant on 18 March 2020.
[8]
Subsequently,
on 19 June 2020, the appellant brought proceedings in the Western
Cape Division of the High Court, Cape Town (the court
a quo) for an
order,
inter
alia
,
staying the writ of execution pending the determination of the
discharge application. He also applied for a declaration that all
maintenance obligations under the consent paper which accrued before
1 March 2017 (being the due date for payment of maintenance
three
years prior to the date of service of the writ) have been
extinguished by prescription.
[9]
In the
court a quo, as is the case before us, only the abovementioned issue
fell for decision. The court a quo (Francis AJ) held that
the
maintenance obligations in the consent paper arose from a ‘judgment
debt’ as contemplated in
section 11
(a)
(ii)
of the
Prescription Act and
are consequently subject to a 30-year
prescription period. The appellant appeals that judgment with the
leave of the court a quo.
[10]
It is
perhaps necessary to mention that although the learned acting judge
was not convinced that there were reasonable prospects of
success on
appeal, he was of the view that ‘the issue relating to the
prescriptive period applicable to debts created by maintenance
orders
is compelling enough to warrant the scrutiny of a higher court’ and
granted leave for that reason.
[11]
Sections
11
(a)
(ii)
and
11
(d)
of the
Prescription Act read
as follows:
‘
The periods of
prescription of debts shall be the following:
(a)
thirty
years in respect of –
. . .
(ii) any
judgment debt;
.
. .
(d)
save where an Act of
Parliament provides otherwise, three years in respect of any other
debt.’
[12]
Although
the appellant accepts that a maintenance order has characteristics of
a civil judgment, namely that it is executable without
further proof
and appealable, he contends that:
(a)
Having
regard to the objectives of the Act, a ‘judgment debt’ for the
purposes of s 11
(a)
(ii),
is one which is final in the sense of it being appealable, capable of
execution and unalterable by the court which granted it.
(b)
Because
maintenance orders are variable by the court which granted them and
are susceptible to ongoing disputes which may require
evidence, they
lack the certainty to qualify as a judgment debt for purposes of the
Prescription Act.
(c
)
And
since maintenance is intended for consumption and not accumulation,
it is appropriate that the debts arising from maintenance
orders
should prescribe within three years, as they should be enforced
promptly.
[13]
In
order to provide proper context to the appellant’s contentions, it
is necessary to state upfront that it matters not that the
appellant’s obligations to pay maintenance arose from an agreement,
which was made an order of court, as opposed to a maintenance
order
granted by a maintenance court in terms of the Maintenance Act 99 of
1998 (the
Maintenance Act). This
is so because the definition of ‘a
maintenance order’ in the
Maintenance Act includes
a maintenance
order made by a court in terms of the Divorce Act 70 of 1979 (the
Divorce Act).
[14
]
A
resolution of this appeal will, to a great extent, depend on the
determination of the question of whether maintenance orders possess
the essential nature and characteristics of civil judgments. It would
thus be instructive to survey authoritative pronouncements
made by
our courts in this regard.
[15]
A good
starting point would be Z
weni
v Minister of Law and Order
,
[1]
where this Court
held that ‘[a] “judgment or order” is a decision which, as a
general principle, has three attributes, first,
the decision must be
final in effect and not susceptible of alteration by the court of
first instance; second, it must be definitive
of the rights of the
parties; and third, it must have the effect of disposing of at least
a substantial portion of the relief claimed
in the main proceedings’.
And in
Kilroe-Daley
v Barclays National Bank Ltd
,
[2]
this Court held that
a ‘judgment debt’ for the purposes of section 11
(a)
(ii)
of the
Prescription Act ‘refers
, in the case of money, to the
amount in respect of which execution can be levied by the judgment
creditor; that in the case of any
other debt steps can be taken by
the judgment creditor to exact performance of the debt, ie delivery
of the property, or performance
of the obligation. A further feature
of a judgment debt is that the judgment is appealable’.
In
Strime
v Strime
,
[3]
it was held that
‘[a] claim for arrear maintenance under a Court’s order is
exigible without any averment or proof that the plaintiff
had, in
order to maintain herself, incurred debts during the period in
question and notwithstanding the fact that she earned, or
could have
earned, an income from employment’. And in
Eke
v Parsons
,
[4]
the Constitutional
Court held that the effect of settlement agreements incorporated into
court orders is that it changes ‘the status
of the rights and
obligations between the parties. Save for litigation that may be
consequent upon the nature of the particular order,
the order brings
finality to the
lis
between
the parties; the
lis
becomes
res
judicata
(literally, “a matter judged”). It changes the terms of a
settlement agreement to an enforceable court order’. Lastly, in
Myathaza
v Johannesburg Metropolitan Bus Services (SOC) Limited t/a Metrobus
and Others
,
[5]
the Constitutional
Court, in a pronouncement that, in my view, is emphatically
dispositive of all the appellant’s arguments, held
that:
‘
The three-year
period is meant for claims or disputes which are yet to be determined
and in respect of which evidence and witnesses
may be lost if there
is a long delay.’
And that:
‘
. . . a debt
contemplated in the
Prescription Act cannot
be reviewed or appealed
against, except if it is a judgment debt.’
[6]
[16]
A
maintenance order possesses another important attribute of a final
civil judgment, namely that it is appealable. In terms of
s 25
of the
Maintenance Act, ‘any
person aggrieved by any order made by a
maintenance court under this Act may, within such period and in such
manner as may be prescribed,
appeal against such order to the High
Court having jurisdiction’. In addition, a person who is served
with a demand to pay in terms
of a maintenance order is compelled to
comply with that order until he or she is able to demonstrate a
change in circumstances justifying
a variation of the order.
[17]
It is
thus manifest that maintenance orders are: (a) dispositive of the
relief claimed and definitive of the rights of the parties,
to the
extent that they decide a just amount of maintenance payable based on
the facts in existence at that time; (b) final and enforceable
until
varied or cancelled; (c) capable of execution without any further
proof; and (d) appealable.
[18]
The
appellant contended that, despite these attributes, a maintenance
order, nevertheless, cannot constitute a final judgment for
the
purposes of the
Prescription Act, since
it can be varied by the court
which granted it, for sufficient reason or good cause. It is thus not
unalterable by the court which
made the original order, and in this
sense resembles an interlocutory order or ruling which is open to
reconsideration, variation
or rescission by the court which granted
it, on good cause shown or altered circumstances. In addition,
maintenance orders are susceptible
to further disputes regarding the
extent or existence of the liability. This means that the debt
arising from a maintenance order
is not certain and is contingent in
nature, in as much as they can be varied or discharged with
retrospective effect, so that arrears
sought to be enforced by way of
a writ of execution may be reduced or even extinguished through
variation of the maintenance order.
For these reasons debts which
arise from maintenance orders cannot be regarded as ‘judgment
debts’ for the purposes of the
Prescription Act, or
so the argument
went.
[19]
In my
view, this argument is not sustainable. As mentioned, a maintenance
order fixes the obligations between the parties until such
time as it
is discharged on application by either party. This can only happen if
new circumstances arise upon which the original
order can be
reconsidered. That the maintenance order is subject to variation in
this sense, does not detract from the fact that
the court granting
the maintenance order has done so on a consideration of the facts
placed before it at the time. Its decision,
either by way of a
reasoned judgment or by agreement between the parties, disposed of
the
lis
which was in existence between the parties at that point in time. An
application for variation of that order thus introduces a new
lis
,
the party applying for such an order contending that circumstances
have changed to such an extent that they justify a reconsideration
of
the original decision. Thus, the matter is
res
judicata
on the facts which were before the court that made the original
maintenance order. Obligations arising out of maintenance orders
are
therefore not ‘claims or disputes which are yet to be
determined’,
[7]
and are therefore
not subject to a three-year prescription period.
[20]
Section
8
of the
Divorce Act 70 of 1979
, which provides that a maintenance
order ‘may at any time be rescinded or varied’, is thus an
exception to the general rule that
an order of court once pronounced
is final and immutable.
[8]
In the event, the
court that made the maintenance order is not at liberty to reconsider
its original decision on the same facts. It
can only vary or
discharge the order if new facts are presented, which justify a
reconsideration of the order. An aggrieved party
who wishes to
challenge the soundness of the original decision without establishing
changed circumstances can only do so by way of
an appeal.
[21]
The
appellant’s argument had another string to its bow. He asserted, in
addition, that his submissions in this regard find support
in the
fact that the
Maintenance Act (in
particular subsections 24(1) and
(2)) draw a distinction between maintenance orders and orders for a
once off payment of a specified
sum of money, with only the latter
being described as a civil judgment.
Section 24(1)
provides that ‘any
order or direction made by a maintenance court under this Act shall
have the effect of an order or direction
of the said court made in a
civil action’. And in terms of subsection (2), ‘any order made
under sections 16(1)
(a)
(ii),
20 or 21(4) [which are for payment of once off specified sums of
money] shall have the effect of a civil judgment of the maintenance
court concerned and shall be executed as provided in Chapter 5’ of
the
Maintenance Act.
>
[22]
According
to the appellant the distinction between the two categories is
important, since a civil judgment is a final judgment, whereas
a
maintenance order is not, because it is variable following an enquiry
in terms of Chapter 3 of the
Maintenance Act. He
contended that it is
significant that no provision is made for the variation of orders for
payment of a specified sum of money in
terms of
ss 16
,
20
and
21
of
the
Maintenance Act. And
, furthermore, it is only upon conviction for
an offence of failure to pay in accordance with a maintenance order
under
section 31
, that the court can make an order for payment of the
arrears in terms of
section 40(1)
that will have the effect of a
civil judgment. On a proper construction of these sections, the
Maintenance Act clearly
distinguishes between a maintenance order and
a civil judgment, which contemplates a final judgment for payment of
a specified sum
of money. The latter is not subject to variation
following an inquiry in terms of
section 16
of the
Maintenance Act,
or
so the argument went.
[23]
To my
mind, this argument is also flawed. First, the attempt to draw a
distinction between an ‘order’ and a ‘judgment’ is
contrived
and does not find any support in decided cases. In
Zweni
,
this Court held that ‘the distinction between “judgment” and
“order” is formalistic and outdated; it performs no function
and
ought to be discarded’. The court emphasised that ‘the
distinction now is between “judgments or orders” (which are
appealable
with leave) and decisions which are not “judgments or
orders”.
[9]
[24]
Second,
section 24(1)
of the
Maintenance Act provides
that a maintenance
order shall have the effect of an order or direction of the court
made in a civil action. This means that a maintenance
order has the
same legal consequences which flow from an order made in a civil
action. In my view, there can be no clearer declaration
of the
legislature’s intention to visit upon a maintenance order the legal
characteristics of a civil judgment. Paradoxically then,
and properly
construed, the sections relied upon by the appellant are destructive
of his arguments.
[25]
In the
light of these findings, there is no room for the interpretation of
s
11
(a)
(ii)
to give effect to the policy considerations mentioned by the
appellant. The appellant contended that the following policy
considerations
militate against a finding that maintenance orders are
subject to a 30-year prescription period: (a) maintenance orders are
intended
to provide for immediate living expenses and sustenance and
should therefore be promptly enforced; (b) permitting a maintenance
creditor
to wait up to 30 years to enforce a maintenance order could
cause hardship to a maintenance debtor who, having been lulled into a
false sense of security by the inaction of the maintenance creditor,
has not provided for the liability, only to be surprised by
a vast
claim for arrear maintenance, plus accrued interest; (c) a 30-year
prescriptive period allows the potential for abuse where
a
maintenance creditor seeks to exploit a subsequent windfall in the
life of the maintenance debtor; and (d) it is difficult for
maintenance debtors to defend against stale maintenance claims, and
unreasonable to expect them to preserve documents for up to 30
years
to deal with such claims.
[26]
Apart
from the fact that these are considerations that the legislature may
contemplate if it desires to enact amendments to the maintenance
laws, I am not convinced that these factors support the case for a
shorter period of prescription. As was pointed out by the
respondent’s
counsel, there can be little doubt that a longer
period of prescription is in the best interests of those vulnerable
individuals
who are usually the beneficiaries of maintenance orders,
namely divorced women and minor children. Moreover, in my view, the
potential
prejudice that a 30-year prescription period would have for
the maintenance debtor, is also exaggerated. Apart from the fact that
any such prejudice can be avoided by the debtor doing what all
responsible citizens are supposed to do, namely to comply with court
orders, it is inconceivable that any such prejudice can arise when,
in appropriate circumstances, the debtor would be able to apply
for
either prospective or retrospective variation of the order. In the
event, the Constitutional Court’s pronouncement in
Myathaza
,
to the effect that the three-year prescription period is meant for
claims which are still to be determined, is dispositive of this
argument. As mentioned earlier, a maintenance order fixes the
obligations of the judgment debtor until such time as it is
discharged
or varied upon the establishment of new facts.
[27]
I am
also of the view that the appellant’s extensive references to
maintenance dispensations in foreign jurisdictions are misplaced.
The
fact that other countries have elected to enact statutory provisions
to provide for specific periods of prescription in respect
of
maintenance orders cannot assist in the interpretation of the
Prescription Act as
enacted and implemented in South Africa.
[28]
The
court a quo accordingly made the correct order and the appeal must
fail. The appeal is accordingly dismissed with costs.
J E SMITH
ACTING JUDGE OF
APPEAL
Mocumie JA and
Kgoele AJA
[29]
We
have read the main judgment by our colleague Smith AJA, with whom our
other colleagues agree. We agree with most of what is said
in it,
including the order it proposes. We write separately, as our approach
differs from the main judgment. Our approach endorses
the approach
adopted by the court of first instance (Francis AJ) and emphasises
that the construction and interpretation as contended
for by the
appellant would perpetuate the hardships suffered by the most
vulnerable groups in our society: women and children. This
is so
because, at the core, the issues in this appeal involve the proper
interpretation and application of the
Maintenance Act, which
was
mainly enacted to provide for a fair recovery of maintenance money,
and to avoid the systemic failures to enforce maintenance
orders and
habitual evasion and defiance with relative impunity.
[10]
[30]
The
words of the Constitutional Court in
Bannatyne
v Bannatyne and Another (Bannatyne)
,
[11]
almost two decades now, still ring hollow for many women, because of
maintenance debtors who take advantage of the weaknesses of
the
maintenance system to escape their responsibility by using every
loophole in the law. This appeal highlights the disadvantages
which
the rightful court ordered-maintenance beneficiaries continue to
suffer at the hands of maintenance defaulters. The appeal
stems from
the judgment of the Western Cape Division of the High Court, wherein
Francis AJ (the high court) made a declaratory order
that the
maintenance obligations contained in the consent paper, which was
made an order of the court,
is
subject
to
a
30-year
prescription
period
in
terms
of
s
11
(a)
(ii)
of
the
Prescription Act 68 of 1969 (the
Prescription Act). The
appeal is
with leave of the high court.
[31]
Mr
Simon
Roy
Arcus
(the
appellant)
and
Mrs
Jill
Henree
Arcus
(the
respondent), who was cited as the first respondent in the proceedings
before the high court, were married some 19 years and two
children
were born out of their marriage. Although the children did not take
part in this appeal, they were cited as the second and
third
respondents before the high court. The marriage was dissolved in
terms of a consent agreement entered into between the parties,
which
was incorporated into the divorce order granted by the former Cape of
Good Hope Provincial Division on 27 July 1993. The appellant
failed
to pay the cash maintenance portion agreed upon, namely the R2 000
per month in respect of the respondent and R750 per month
in respect
of each child from the date of the divorce (27 July 1993) until
January 2019. The respondent did not demand payment of
the arrear
maintenance until December 2018. For that reason, the respondent
caused a writ of execution to be issued against the appellant,
dating
back to July 1993, as the law allows her to, in the amount of R 3
223 190.70 (as amended). The writ of execution was
stayed pending the
outcome of the proceedings before the high court, which led to this
appeal. The appellant also applied for retrospective
discharge of his
maintenance obligations under the divorce order, which application is
pending before the magistrate court in terms
of the Maintenance Act
of 99 of 1989 (the
Maintenance Act).
[32
]
The
appellant's case before the high court is summarised aptly by Francis
AJ
in
para 9 as follows:
‘
The
applicant contends that a court order for the payment of maintenance
pursuant to a consent
paper
gives rise to an ordinary “debt”, which prescribes in 3 years,
and not a “judgment debt”, which only prescribes after
30 years.
The applicant advanced the following arguments in support of this
contention:
A judgment debt is
final and conclusive in nature and cannot be altered by the court
which pronounced it, i.e. one the effect whereof
is res judicata.
Because maintenance orders are capable of being varied, substituted,
discharged on good cause, or even varied with
retrospective effect, a
maintenance order is not final and conclusive and lacks the
attributes of a final judgment and is, therefore,
not a judgment
debt.
Various provisions
of the
Maintenance Act draw
a distinction between maintenance orders
for the payment of maintenance and orders for the payment of a
once-off specified amount
of money, with only the latter order giving
rise to a civil judgment; and
The policy
imperatives underlying the
Prescription Act are
not served by
interpreting the words “any judgment debt” in
section 11(a)(ii)
as including a maintenance order, regardless of the fact that such an
order may emanate from a judgment of the High Court: a creditor
is
responsible for enforcing his or her rights timeously and must suffer
the consequences of failing in this regard and, conversely,
a debtor
must be protected against a stale claim which has existed for such a
long time that it is difficult to defend against it.’
[33]
For
the respondent, it was contended that, whilst it is possible for a
maintenance order to be varied as the circumstances change
(in terms
of s 8(1) of the Divorce Act 70 of 1979 (the
Divorce Act)), this
does
not mean that when a consent paper is made an order of court, as in
this case, the dispute between the parties is not definitively
settled at that point in time. It was submitted on behalf of the
appellant that although it is correct that once a court has made
a
consent order, it is
functus
officio
,
however, in relation to matrimonial disputes, that does not apply in
all circumstances. The principle of
res
judicata
only
applies to those terms of the order which deal with the proprietary
rights of the parties and the payment of
maintenance
to one of the spouses where there is a non-variation clause. In
PL
v YL
,
[12]
it was held that:
‘
A
further exception to the general rule that an order of court, once
pronounced, is final and immutable, is created by
section 8(1)
of the
Divorce Act. As
stated, in the absence of non-variation
clause
in the settlement agreement, it permits the court to rescind, vary or
suspend a maintenance
order
granted earlier. Further, there exists in principle no reason why the
parties may not
subsequently
seek an amendment thereof by mutual consent, or in circumstances
where the order
through
error or oversight does not correctly reflect their agreement. Not
only is the mandate of the court to exercise its discretion
in terms
of
section 7(1)
of the
Divorce Act derived
from the settlement
agreement, but the consent order itself is based on the terms of that
agreement. The legal nature of a consent
order was considered by the
appeal court in
Swadif
(Pty) Ltd v Dyke NO.
It
was held that where the purpose of the granting of the consent
judgment is to enable the parties
to
the agreement to enforce the terms thereof through the process of the
court, should the need therefor arise, the effect of the
order is to
replace the right of action on the agreement by a right to
execute
on the judgment: “[i]t seems realistic, and in accordance with the
views of the Roman-
Dutch
writers, to regard the judgment not as novating the obligation under
the bond, but rather as strengthening or reinforcing it.
The right of
action, as Fannin J puts it, is replaced
by
the right to execute, but the enforceable right remains the same.”
The consent order accordingly does not have the effect of
eliminating
the contractual basis thereof. Rather, through operation of the
res
judicata
principle,
the judgment constitutes a bar to any action or proceedings
on
the underlying settlement agreement. The provisions of the agreement
are instead to be enforced
by
the remedies available to a judgment creditor on a judgment. It is of
course always open to the
parties
to abandon the judgment in whole or in part and to enter into a new
agreement. Save for the aforegoing, the effect of the
consent order
is otherwise that it renders the issues between the parties in
relation to their proprietary rights and the payment
of maintenance
to a former spouse, where the agreement includes a non-variation
clause,
res
judicata
,
and thus effectively achieves a
“
clean
break” as envisaged by the scheme of the Divorce Act.’
[34]
Having
considered the submissions of both parties and the applicable legal
principles,
the
high
court
concluded
on
the
basis
of
ss
24
,
26
and
4>
40
of the
Maintenance Act
that
because
the
maintenance
order
which
the
court
granted
upon the divorce of the parties was a civil judgment, the failure by
the appellant to pay maintenance for all those years
was a judgment
debt which triggered the application of
s 11
(a)
(ii)
of the
Prescription Act and
therefore, the prescription period of 30
years.
[35]
The
high
court
subsequently
granted
an
order that the maintenance obligations
contained
in
the consent paper that was made an order of court on 27 July 1993
under
case
number 7177/1993, is subject to a 30-year period as prescribed in
s
11
(a
)(ii)
of
the
Prescription Act. It
is this order that the appellant challenges with
leave of the high court.
[36]
The
sole issue for determination before this Court, as was in the high
court, is
whether
an undertaking to pay maintenance in a divorce consent paper which
was made an order of court gave rise to a ‘judgment debt’
as
contemplated in
s 11
(a)
(ii)
with
a prescriptive period of 30 years, or ‘any other debt’ as
contemplated in
s 11
(d)
of
the
Prescription Act, with
a prescription period of three years.
[37]
This
Court, must therefore consider whether the high court interpreted the
word ‘judgment debt’ as contemplated in
s 11
(a)
(ii)
of the
Prescription Act, with
a prescriptive period of 30 years, and
‘any other debt’ as contemplated in
s 11
(d)
of
the Act, with a prescription period of three years, correctly. For
this purpose, the proper approach to adopt in the interpretation
of
the statutes implicated, namely, the
Prescription
Act read
with the
Maintenance Act as
well as the
Divorce Act, is
as
was
recently
restated in
C:SARS
v United Manganese of Kalahari (Pty) Ltd
[13]
to take into
consideration
‘. . . the language used in the light of the ordinary rules of
grammar and
syntax;
the
context
in
which
the
provision
appears;
the
apparent
purpose
to
which
it is directed and the material known to those responsible for its
production . . . The inevitable point of departure [being]
the
language used in the provision under
consideration’.
[38]
The
section at the heart of this appeal,
s 11
of the
Prescription Act
provides
:
‘
The periods of
prescription of debts
The periods of
prescription of debts shall be the following:
(a)
thirty
years in respect of–
(i) any
debt secured by a mortgage bond;
(ii) any
judgment debt;
(iii) any debt owed
to the State. . . in respect of the right to mine minerals or other
substances;
. . .
(d)
Save
where an Act of Parliament provides otherwise, three years in respect
of any other debt.’
[39]
As
a starting point the law on consent papers incorporated into
agreements including divorce orders, commonly known as settlement
agreements or deeds of settlement, has been settled by the
Constitutional Court in
Eke
v Parsons (Eke)
[14]
as follows:
‘
The
effect of a settlement agreement order is to change the status of the
rights and obligations between the parties. Save for litigation
that
may be consequent upon the nature of the particular order, the order
brings to finality to the
lis
between
the parties; the
lis
becomes
res
judicata
(literally
“a matter judged”). It changes the terms of a settlement
agreement to an enforceable order. . . .’
[40]
On
the issue of the applicable period of prescription, in
Myathaza
v Johannesburg Metropolitan Bus Services (SOC) Limited t/a Metrobus
and Others
,
[15]
the Constitutional Court held that the three year prescription is
meant for claims and disputes ‘. . . which are yet to be determined
and in respect of which evidence and witnesses may be lost if there
is a long delay’. In
Reid
v Reid
,
[16]
the court stated, ‘.
. .
[w]hen
the consent paper is then made an order of Court,
res
judicata
is
established
on
the just amount payable as maintenance . . .’.
[41]
Following
the above precedents, it suffices to state the obvious, which was
common cause between the parties, that the consent paper
between the
appellant and
the
respondent which was incorporated into their divorce order created a
lis
between
them and the issue which was in dispute became
res
judicata
.
Such order became enforceable
inter
partes
upon
default or non-compliance by any of the parties. The parties only
differed on whether it had all the attributes of a final order
or
not, and thus ‘a judgment debt’ or ‘any other [ordinary] debt’,
which if breached became enforceable, and upon a warrant
of execution
to satisfy it being issued, it remained unsatisfied if it prescribed
within three years or 30 years in terms of the
Prescription Act.
[42]
The
word ‘judgment debt’ is not defined in the
Prescription Act and
so too the
word
‘any other judgment’. In its plain meaning ‘a judgment debt’
means an amount
of
money in a judgment awarded to the successful party which is owed to
them by the unsuccessful one. Any other judgment in the context
of
maintenance means any
order
granted by a court, either the magistrates' court or the high court.
The context
in
which the meaning of these words must be established is the
maintenance dispute
which
was finally settled between the parties by a consent paper. To
interpret the
Prescription Act and
whether three years or 30 years is
applicable to the arrears which the appellant owed over 19 years,
this Court must look at the
Prescription Act
in
the context of the
Maintenance Act with
specific reference to three
sections, namely,
ss 24
,
26
and
40
.
[43]
Under
the
Maintenance Act, when
a court orders a maintenance debtor to make
payment of a sum of money in terms of
s 24
,
[17]
that order has the effect of a civil judgment and it shall be
executed as provided. On the language used, ‘a civil judgment’;
this attracts a prescription period of 30 years.
Section 26
[18]
read in conjunction with
ss 7(1)
[19]
and 8(1)
[20]
of the
Divorce
Act provides
that the same enforcement mechanisms may be applied for
the
recovery
of
any
monies that may be owing pursuant to a maintenance order or an order
for a specified sum of money
made
by a maintenance court upon an inquiry (at an initial stage) and
thereafter, any
time
for
a rescission, variation
or
suspension
if
the
court
finds that there
are
sufficient
reason
therefor and even be substituted or discharged on good cause shown by
a maintenance court. This section makes reference to
the recovery of
monies pursuant
to
a maintenance order. This means that it is a civil judgment debt.
[44]
Over
and above,
s 40
[21]
of the
Maintenance Act provides
that an order of a court that grants an
order for the recovery of arrear maintenance shall have the effect of
a civil judgment of
the court. The section categorically states that
that order is a civil judgment. As the high court correctly found,
this section
(s 40) buttresses the reasoning that a maintenance order
has the effect of a civil judgment, because ‘if an order for arrear
maintenance
payments is to be regarded as a civil judgment, why
should the principal amount payable in terms of the original
maintenance order
be considered to be something other than a civil
judgment?’.
[45]
Furthermore,
based
on
the acceptance of
Eke
that
once a settlement agreement
has
been made an order of court, it is an order like any other order and
changes the terms of the settlement agreement to an enforceable
court
order, a maintenance order
is
a civil judgment subject to
s 11
(a)
(ii)
of the
Prescription Act. In
our view and for
the
purposes of the conclusion we reach on the issue of the applicable
period of prescription, whether the order is incorporated in
a deed
of settlement or not in this matter,
makes
no
difference.
This
we
say
because,
throughout
all
the
relevant
sections
under Chapter 5, the
Maintenance Act makes
reference to ‘judgment’
and ‘order’. The terms cannot be interpreted other than with
reference to a civil judgment
and
order. Some of the provisions, such as
s 24(1)
in particular, even
make direct reference to ‘civil judgment’. The same applies to
s
24(2).
There is therefore, no justifiable distinction that can be
drawn between
ss 24(1)
and (2) if one applies the trite approach on
the interpretation of legislation, although differently couched.
[22]
The distinction sought to be made by the appellant between an order
and a judgment
that
the legislature intended for 3 years’ prescription to apply to an
order and 30 years
to
a judgment is superficial and does not exist in law.
[46]
In
conclusion, it is indisputable that the consent paper which contained
the agreement concluded between the appellant and the respondent
was
incorporated into their divorce order and became a court order; that
the maintenance question (dispute) was determined; and that
from that
moment (in 1993) it was beyond any doubt that the maintenance dispute
between them was finally disposed of. Thus, it could
hardly be
revisited, except if it was to be varied on the basis of the original
order and only when the circumstances which were
applicable at the
time of the original order have changed; which the appellant did not
do. Besides, a claim of maintenance under
a court order is exigible
without any averment or proof that the respondent had, in order to
maintain herself, incurred debts during
the period in question.
[23]
That the respondent did not claim the arrears over such a long period
is irrelevant for the purposes of the issue in dispute; that
of which
period of prescription is applicable. The high court was thus correct
to hold that ‘the maintenance obligations contained
in the consent
paper that was made an order of this court on 27 July 1993
under
case number 7177/93, [was a civil judgment] and is subject to a
30-year period as prescribed in
section 11(
a
)(ii)
of the Prescription Act’.
[47]
For
the sake of completeness, the appellant’s attempt to make a case
based on
public
policy is simply unfounded. The submission was made that the policy
imperatives underlying the
Prescription Act are
not served by
interpreting the words
‘any
judgment debt’ in
s 11(1)
(a)
(ii)
of the
Prescription Act as
including a maintenance order, regardless
of which court granted the order. Furthermore, that because a
maintenance order is intended
to provide for immediate living
expenses and substance, it should, therefore, be promptly enforced.
To enforce it much later would
result in great financial hardship for
a maintenance debtor who has been lulled into a false sense of
security by the inaction of
the maintenance creditor and who has not
provided for the liability. It would also be unreasonable and
burdensome to expect a maintenance
debtor to keep records for up to
30 years to deal with possible maintenance claims, so the submission
was concluded.
[48]
What
is extremely troubling is that the prejudice the appellant decries
affects
the
maintenance creditors (who are predominantly, as this case
demonstrates, women and children) far more than maintenance debtors
(who are generally men). The submission was made by the appellant
that to enforce the order and avoid prescription, a maintenance
creditor had the option of approaching the court every three years.
However, this will definitely cause hardship to the maintenance
creditors, as they will be compelled to approach the courts every
three years to enforce their claims to avoid prescription. In
Bannatyne
,
the Constitutional Court recognised that the gendered nature of the
maintenance system is undeniable. We can, therefore, not interpret
the
Prescription Act in
a manner that will be at odds with the
purpose of the
Maintenance
Act. To
do so will be to the disadvantage of a maintenance creditor
and will
fly
in the face of what the
Maintenance Act was
enacted to do, namely, to
avoid the
systemic
failures to enforce maintenance orders and habitual evasion and
defiance with relative impunity.
[24]
It would also give protection to maintenance debtors more than was
intended for. Consequently, the order of the high court ought
to
stand.
Order
[49]
It
is
for
these
additional
reasons
that
we
support
the
order
of
the
main
judgment
dismissing the appeal with costs.
B C MOCUMIE
JUDGE OF APPEAL
A M KGOELE
ACTING
JUDGE OF APPEAL
APPEARANCES
For
appellant:
D M Davis SC (with T
Smit)
Instructed
by:
Myburgh Attorneys Incorporated, Bellville
Webbers Attorneys,
Bloemfontein
For
respondent:
A Kantor SC
Instructed
by:
Salvatore Puglia Attorneys, Cape Town
Du Toit Lambrechts
Incorporated, Bloemfontein
[1]
Zweni v
Minister of Law and Order
[1993] 1 All SA
365
(A);
1993
(1) SA 523
(A) at 532I-533A.
[2]
Kilroe-Daley
v Barclays National Bank Ltd
[1984] ZASCA 90
;
[1984] 2 All SA 551
(A);
1984 (4) SA 609
(A) at
624D-F.
[3]
Strime v
Strime
[1983] 2 All SA 386
(C);
1983 (4) SA 850
(C) at 852C-E.
[4]
Eke v
Parsons
[2015] ZACC 30
;
2015 (11) BCLR 1319
(CC);
2016
(3) SA 37
(CC) para 31.
[5]
Myathaza v
Johannesburg Metropolitan Bus Services (SOC) Limited t/a Metrobus
and Other
[2016] ZACC 49
; (2017) 38 ILJ 527 (CC);
[2017] 3 BLLR 213
(CC);
2017
(4) BCLR 473
(CC);
2018 (1) SA 38
(CC) para 44.
[6]
Myathaza v
Johannesburg Metropolitan Bus Services (SOC) Limited t/a Metrobus
and Others
(supra fn 5) para 55.
[7]
Myathaza v
Johannesburg Metropolitan Bus Services (SOC) Limited t/a Metrobus
and Others
(supra fn 5).
[8]
Reid v
Reid
[1992] 3 All SA
354
(E);
1992
(1) SA 443
(E) at 447C.
[9]
Zweni v
Minister of Law and Order
(supra
fn 1) at 532E-G.
[10]
Bannatyne
v Bannatyne and Another
[2002] ZACC 31
;
2003
(2) BCLR 111
;
2003 (2) SA 363
(CC)
para 27
;
see also
S
S v V V
-
S [2018] ZACC 5; 2018 (6) BCLR 671 (CC).
[11]
Bannatyne
v Bannatyne and Another
[2002] ZACC 31
;
2003
(2) BCLR 111
;
2003 (2) SA 363
(CC)
(Bannatyne)
.
[12]
PL
v YL
[2013]
4 All SA 41
(ECG);
2013 (6) SA 28
(ECG) para 46; see also
Swadiff
(Pty) Ltd v Dyke N O
1978
(1) SA 928
(A) at 939E.
[13]
C:
SARS v United Manganese of Kalahari (Pty) Ltd
[2020]
ZASCA 16; 2020 (4) SA 428 (SCA).
[14]
Eke
v Parsons
[2015]
ZACC 30
;
2015 (11) BCLR 1319
(CC);
2016 (3) SA 37
(CC) para 31
citing with approval
the
judgment of the full court in
PL
v YL
2013
[2013] 4 All SA 41 (ECG); 2013 (6) SA 28 (ECG).
[15]
Myathaza
v Johannesburg Metropolitan Bus Services (SOC) Limited t/a
Metrobus
and Others
[2016]
ZACC 49
;
2017
(4) BCLR 473
(CC);
2018 (1) SA 38
(CC) para 44.
[16]
Reid
v Reid
[1992]
3 All SA 354
(E);
1992 (1) SA 443
(E) at 447B.
[17]
Section
24 provides:
‘
Effect
of orders of maintenance court
(1)
Save
as is otherwise provided in this Act, any order or direction made by
a maintenance court under this Act shall
have
the effect of an order or direction of the said court made in a
civil action.
(2)
Any
order made under section 16(1)
(a)
(ii),
20 or 21 (4) shall have the effect of a civil judgment of the
maintenance
court
concerned and shall be executed as provided.’
[18]
Section
26 provides:
‘
Enforcement
of maintenance or other orders
(1)
Whenever
any person –
(a)
against
whom any maintenance order has been made under this Act has failed
to make any particular payment in accordance with that
maintenance
order; or
(b)
against
whom any order for the payment of a specified sum of money has been
made under section 16(1)
(a)
(ii),
20 or 21(4) has failed to make such a payment, such order shall be
enforceable in respect of any amount which that person
has so failed
to pay, together with any interest thereon–
(i)
by
execution against property as contemplated in section 27;
(ii)
by
the attachment of emoluments as contemplated in section 28; or
(iii)
by
the attachment of any debt as contemplated in section 30.’
[19]
Section
7(1) provides that:
‘
A
court granting a decree 'of divorce may in accordance with a written
agreement between the parties make an order
with
regard to the division of the assets of the parties or the payment
of maintenance by the one party to the other.’
[20]
Section
8(1) provides that:
‘
A
maintenance order or an order in regard to the custody or
guardianship of, or access to, a child, made in terms of this Act,
may at any time be rescinded or varied or, in the case of a
maintenance order or an order with regard to access
to
a child, be suspended by a court if the court finds that there is
sufficient reason therefor . . . .’
[21]
Section
40(1) provides that:
‘
Recovery
of arrear maintenance
A
court with civil jurisdiction convicting any person of an offence
under section 31(1) may, on the application of the public prosecutor
and in addition to or in lieu of any penalty which the court may
impose in respect of that offence, grant an order for the recovery
from the convicted person of any amount he or she has failed to pay
in accordance with the maintenance order, together with any
interest
thereon, whereupon the order so granted shall have the effect of a
civil judgment of the court and shall subject to subsection
(2), be
executed in the prescribed manner.’
[22]
See footnote
15 above.
[23]
Strime v
Strime
[1983]
2 All SA 386
(C);
1983 (4) SA 850
(C) at 852D.
[24]
Bannatyne
para
27.
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