Case Law[2022] ZASCA 151South Africa
Democratic Alliance v Brummer (793/2021) [2022] ZASCA 151 (3 November 2022)
Supreme Court of Appeal of South Africa
3 November 2022
Headnotes
Summary: Plea of res judicata by reason of issue estoppel in action for damages arising from alleged unlawful termination of membership – prior judgment of court dismissing application for order reinstating membership – whether same issue (eadem quaestio) decided in prior judgment requiring close examination of the basis upon which application dismissed – such relief not sought and court finding that the issue not fully ventilated – dismissal of application not amounting to determination of the issue at stake in later damages action – no scope for issue estoppel to apply.
Judgment
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## Democratic Alliance v Brummer (793/2021) [2022] ZASCA 151 (3 November 2022)
Democratic Alliance v Brummer (793/2021) [2022] ZASCA 151 (3 November 2022)
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sino date 3 November 2022
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
### JUDGMENT
JUDGMENT
Not
Reportable
Case
No: 793/2021
In
the matter between:
DEMOCRATIC
ALLIANCE
APPELLANT
and
# JOHANN WICHARDT GREYLING
BRUMMER
RESPONDENT
JOHANN WICHARDT GREYLING
BRUMMER
RESPONDENT
Neutral
citation:
Democratic Alliance v
Brummer
(793/2021)
[2022] ZASCA 151
(3 November 2022)
Coram:
DAMBUZA ADP and MOLEMELA and MOTHLE JJA
and MUSI and GOOSEN AJJA
Heard:
8 September 2022
Delivered:
3 November 2022
Summary:
Plea of
res judicata
by reason of
issue estoppel in action for damages arising from alleged unlawful
termination of membership – prior judgment
of court dismissing
application for order reinstating membership – whether same
issue (
eadem quaestio
) decided in prior judgment requiring
close examination of the basis upon which application dismissed –
such relief not sought
and court finding that the issue not fully
ventilated – dismissal of application not amounting to
determination of the issue
at stake in later damages action –
no scope for issue estoppel to apply.
#### ORDER
ORDER
On appeal from:
Western Cape Division of the High Court sitting as court of
appeal, (Gamble and Saldanha JJ concurring, and Wille J
dissenting).
The
appeal is dismissed with costs, such costs to include the costs of
two counsel.
JUDGMENT
Goosen
AJA (Dambuza ADP and Molemela and Mothle JJA and Musi AJA concurring)
[1]
The appeal is against an order of the Western Cape High Court, on
appeal, confirming
an order of a trial court dismissing a special
plea of
res judicata
raised by the appellant in an action for
damages against it. I shall, for the sake of convenience, refer to
the parties by name.
The appellant is the Democratic Alliance (the
DA), a registered political party. The respondent, Johann Brummer
(Brummer) is a
former member of the DA. The appeal is with the leave
of this court.
[2]
It is common cause that Brummer was a member of the DA since 2000. He
was elected
as a municipal councillor in the Bitou Local Municipality
in December 2000. He was re-elected in successive local government
elections,
including in 2011, when the DA secured political control
of the council. He served as a member of the Bitou Local Council and
on
the Eden District Council. In July 2012 his membership of the DA
was terminated because of his alleged failure to pay certain
mandatory
financial contributions to the DA.
[3]
The termination of his membership sparked an urgent application in
the Western Cape
High Court to secure the reinstatement of his
membership (the re-instatement application). The application was
unsuccessful. Thereafter,
Brummer commenced an action for damages
flowing from the unlawful termination of his membership. In this
action the DA filed a
special plea of
res judicata
in the form
of issue estoppel. The question was decided as a separated issue by
the trial court (Martin AJ), which dismissed the
special plea. Leave
was granted by this court to the DA to appeal that order before the
full court of the Western Cape Division.
The full court, by majority,
dismissed the appeal.
The
facts
[4]
On 21 April 2012, the DA wrote to Brummer advising him that he was in
arrears with
the payment of compulsory public representative
contributions due by him. The letter was delivered on 7 May 2012. His
attention
was drawn to clauses 3.5.1 and 3.5.2 of the DA’s
Federal Constitution which provides for cessation of membership in
the event
of a member being in arrears with the payment of such
contributions. The clauses read as follows:
‘
3.5.1
A member ceases to be a member of the Party when he or she:
…
3.5.1.9
is in default with payment of any compulsory public representative
contribution for a period of 2 (two) months after having been
notified in writing that he or she is in arrears and fails to make
satisfactory arrangements or fails to comply with such arrangement
for the payment of the arrears. …
3.5.2
A member, who ceases to be a member of the Party, loses all
privileges of Party membership and, if that member
is a public
representative, he or she also loses the office which he or she
occupies by virtue of his or her membership, with immediate
effect.’
[5]
On 13 August 2012, Brummer was advised by letter that, since payment
had not been
made to the DA, his membership had ceased. He was given
a period of 72 hours to make representations to the DA to furnish
reasons
why his membership had not terminated. On 20 August 2012, the
Federal Legal Commission of the DA terminated his membership with
effect from 31 July 2012. This was confirmed by the Federal Executive
Commission on the same date and Brummer was advised on 21 August
2012.
[6]
On 5 September 2012, Brummer launched the urgent re-instatement
application referred
to above. He cited the DA, the Municipal
Managers of the Bitou Local and Eden District Municipalities and the
Independent Electoral
Commission (the IEC). The notice of motion
claimed the following relief:
‘
2.
Interdicting the [DA and Municipalities] from taking steps to appoint
anybody to the
position … which has now been declared vacant.
3.
Directing the [DA] to immediately reinstate my membership of the DA,
and restore
my salaried position on the Bitou Local Municipality and
Eden District Municipality.
4.
Interdicting the [IEC] from filling the vacancy created by the
termination of
the Applicant’s membership in the [DA].
5.
Directing any of the Respondents to show cause on a return date to be
determined
by the Court, why the above interim order shall not be
made final.’
[7]
The re-instatement application came before Louw J on 6 September
2012. The hearing
was postponed to 12 September 2012 upon terms for
the filing of answering and replying affidavits. Louw J also ordered
that, pending
the hearing, the IEC be interdicted from filling the
vacancy created by the termination of Brummer’s membership of
the DA.
[8]
On 12 September 2012, the matter came before Traverso DJP. A full set
of papers had
been filed and the case was argued. Traverso DJP
delivered a short judgment dismissing the application with costs. No
appeal was
brought against the order dismissing the application.
[9]
On 24 November 2014, Brummer commenced an action against the DA in
which he claimed
damages founded upon the unlawful termination of his
membership of the DA (the damages action). He claimed damages in an
amount
of R2 717 182 plus interest, calculated with
reference to the income he would have earned as a councillor had his
membership
not been terminated. The DA opposed the action and filed a
plea. In December 2016, Brummer filed amended particulars of claim.
The amended particulars set out a claim for contractual,
alternatively delictual, alternatively constitutional damages. The
matter
was enrolled for trial in February 2019.
[10]
On 12 February 2019, the DA amended its plea to introduce a special
plea of
res judicata
in the form of issue estoppel. Brummer
filed a replication to the special plea on the same date. On 13
February 2019, the respective
parties filed further pleadings dealing
with the special plea. It is unnecessary to set out the terms of
these pleadings. It suffices
to state that the special plea was
premised upon the fact that the judgment of Traverso DJP ‘necessarily
involved a judicial
determination that the actions taken by the DA in
terms of clause 3.5.1.9 … and the termination of [Brummer’s]
membership
... were lawful’. Such a finding was, it was
pleaded, integral to the order granted by Traverso DJP. The parties
agreed that
the special plea be adjudicated as a separated issue and
proceeded to trial before Martin AJ on 14 February 2019. Both parties
led evidence on the separated issue. On 15 May 2019, Martin AJ handed
down his judgment (the trial court judgment), dismissing the
special
plea. Leave to appeal against that order was refused on 30 October
2019.
[11]
On 20 April 2020, this court granted the DA leave to appeal to the
full court of the division.
The full court heard the appeal on 18
January 2021. On 12 April 2021, it delivered its judgment. The full
court was divided. The
majority (Gamble and Saldanha JJ) dismissed
the appeal. The minority (Wille J) would have upheld the appeal.
Res
judicata
–
issue estoppel
[12]
The nature of a plea of issue estoppel has been explained by this
court on numerous occasions.
The explanation in
Smith
v Porritt
[1]
is worth reiterating.
‘
Following
the decision in
Boshoff v Union Government
1932 TPD 345
the
ambit of the
exceptio rei judicata
has over the years been
extended by the relaxation in appropriate cases of the common-law
requirements that the relief claimed
and the cause of action be the
same (
eadem res
and
eadem petendi causa
) in both the
case in question and the earlier judgment. Where the circumstances
justify the relaxation of these requirements those
that remain are
that the parties must be the same (
idem actor
) and that the
same issue (
eadem quaestio
) must arise. Broadly stated, the
latter involves an inquiry whether an issue of fact or law was an
essential element of the judgment
on which reliance is placed. Where
the plea of
res judicata
is raised in the absence of a
commonality of cause of action and relief claimed it has become
common place to adopt the terminology
of English law and to speak of
issue estoppel. But, as was stressed by Botha JA in
Kommissaris
van Binnelandse Inkomste v Absa Bank Bpk
1995 (1) SA 653
(A) at
669D, 670J-671B, this is not to be construed as implying an
abandonment of the principles of the common law in favour of
those of
English law; the defence remains one of
res judicata
. The
recognition of the defence in such cases will however require careful
scrutiny. Each case will depend on its own facts and
any extension of
the defence will be on a case-by-case basis. (
Kommissaris van
Binnelandse Inkomste v Absa Bank
(supra) at 670E-F.) Relevant
considerations will include questions of equity and fairness not only
to the parties themselves but
to others. As pointed out by De
Villiers CJ as long ago as 1893 in
Bertram v Wood
(1893) 10 SC
177
at 180, ‘unless carefully circumscribed, [the defence of
res judicata
] is capable of producing great hardship and even
positive injustice to individuals’.’
[13]
The first question is to determine whether, as a matter of fact, the
same issue of fact or law
which was determined by the judgment of the
previous court is before another court for determination. This is so
because if the
same issue (
eadem
quaestio
)
was not determined by the earlier court, an essential requirement for
a plea of
res
judicata
in the form of issue estoppel is not met. There is then no scope for
upholding the plea. It does not, however, necessarily follow,
that
once the inquiry establishes that the same issue was determined, the
plea must be upheld. That is so because the court considering
the
plea of issue estoppel is, in every case, concerned with a relaxation
of the requirements of
res
judicata
.
It must therefore, with reference to the facts of the case and
considerations of fairness and equity, decide whether in that case,
the defence should be upheld.
[2]
[14]
This first component of the enquiry requires a careful examination of
what issues of fact or
law were decided by the first court. In
Boshoff
v Union Government
[3]
(
Boshoff
),
the following statement by Spencer-Bower in
Res
Judicata,
was
held to be a correct:
‘
Where
the decision set up as a
res judicata
necessarily involves a
judicial determination of some question of law or issue of fact, in
the sense that the decision could not
have been legitimately or
rationally pronounced by the tribunal without at the same time, and
in the same breath, so to speak,
determining that question or issue
in a particular way, such determination, though not declared on the
face of the recorded decision,
is deemed to constitute an integral
part of it as effectively as if it had been made so in express
terms.’
[15]
Where the judgment does not deal expressly with an issue of fact or
law said to have been determined
by it, the judgment and order must
be considered against the background of the case as presented to the
court and in the light
of the import and effect of the order. Careful
attention must be paid to what the court was called upon to determine
and what must
necessarily have been determined, in order to come to
the result pronounced by the court. The exercise is not a mere
mechanical
comparison of what the two cases were about and what the
court stated as its reasons for the order made.
[4]
In
Boshoff
,
for instance, the plaintiff had sued for damages arising from an
unlawful cancellation of a lease and ejectment. The defendant
raised
a plea of
res
judicata
on the basis that the defendant had, in a prior action, obtained a
judgment for ejectment. The prior order was obtained by default
judgment. The court found that an order for ejectment could not have
been granted unless the court had found that the cancellation
of the
lease was lawful. The order that was granted was read against the
backdrop of the case as pleaded.
[5]
[16]
Whether the findings made by the court or the order(s) granted are
correct is of no relevance.
A prior determination of an issue,
although wrong, may nevertheless support a plea of
res
judicata.
As held in
African
Farms and Townships Ltd v Cape Town Municipality
(
African
Farms
)
[6]
,
‘
Because
of the authority with which, in the public interest, judicial
decisions are invested, effect must be given to a final judgment,
even if it is erroneous. In regard to
res judicata
the enquiry
is not whether the judgment is right of wrong, but simply whether
there is a judgment.’
The
re-instatement application
[17]
The relief that was sought is set out above.
[7]
In argument before this court considerable attention was focussed
upon the nature of the application and the form of the relief
that
was requested. It was argued that since Brummer only sought interim
relief, as reflected in paragraph 5 of the order, Traverso
DJP was
not required to finally decide the issues raised. On this basis it
was submitted that the judgment was not dispositive
of any issue
raised before her, since it was relief sought in an interlocutory
proceeding. Counsel for the respondent, referred
to
African
Wanderers Football Club (Pty) Ltd v Wanderers Football Club
[8]
(
African
Wanderers
)
,
Cipla
Agrimed (Pty) Ltd v Merck Sharp Dohme Corporation and Others
[9]
(
Cipla
Agrimed
),
and
Mkhize
NO v Premier of the Province of KwaZulu-Natal
(
Mkhize
)
[10]
in
support of the proposition.
[18]
None of these cases, however, support the proposition. They did not
hold that the form of the
order is determinative of whether it is
final in effect.
Cipla
Agrimed
involved an instance where an interim order had been granted. Both
the minority and the majority held that it was not the form,
but
rather the effect of the order that is decisive.
[11]
In
African
Wanderers
[12]
Muller JA stated that in order to decide whether an interlocutory
order is appealable (as was required in that case),
‘
One
must therefore examine the issues raised before Howard, J., in the
interdict proceedings, and the manner in which he dealt therewith,
in
order to determine whether he meant to express a final decision
thereon, i.e.,
whether he intended to dispose finally of those
issues or any part of them
.’ (My emphasis.)
[19]
In the
Mkhize
matter the question arose in relation to the dismissal of an
application, rather than the granting of interim relief. The
following
passages from the judgment illustrate the approach that is
required in this matter.
[13]
‘
The
orders of Booyens AJ, the Supreme Court of Appeal and Sishi J all
concerned the rule
nisi
and the Van Zyl J order. The
pertinent question is therefore whether an order can be considered
final when it is concerned
with dismissal or discharge of interim or
interlocutory orders.
In
Cohn,
the
finality of a dismissed matter was considered and the Court stated:
"In
dealing with the position where an action is dismissed, Spencer Bower
says that the answer to the question whether anything
can be said to
have been decided, so as to conclude the parties, beyond the actual
fact of the dismissal depends upon whether .
. . the dismissal itself
is seen to have
necessarily involved a determination of any
particular issue or question of facts or law
, in which case there
is an adjudication on that question or issue; if otherwise, the
dismissal decides nothing, except that in
fact the party has been
refused the relief which he sought." (Own emphasis.)
Also
instructive is the more recent case of
Cipla
, which dealt
with the finality of court decisions in the context of whether or not
they could be appealed. In that case, the Supreme
Court of Appeal
listed the following attributes: "it must be final in effect; it
must be definitive of the rights of the parties;
and it must have the
effect of disposing of at least a substantial part of the relief
claimed".
It
appears that the question is whether Booyens AJ made a determination
of "any particular question of fact or law" with
the result
that his order was final. I believe that he did. In his judgment,
Booyens AJ stated:
"The
issue that falls to be decided is whether the death of the [deceased]
would put an end to his rights of review of the
decision of the
Premier and whether his minor son has got any right to claim that he
should be appointed Inkosi and the executrix
be appointed as Regent
until such time as he reached majority."
Booyens
AJ then held that "the right [of the deceased to be Inkosi] is a
purely personal right of his. He cannot in any way
deal with this
right by transferring it in any way whatsoever." On this basis,
Booyens AJ held that Ms Mkhize did not have
legal standing to pursue
the review of the deceased's removal and dismissed her application
for substitution. Does this satisfy
the
Cipla
criteria?
Yes. The decision was final in effect as Booyens AJ made a final
determination of Ms Mkhize's legal standing with the
consequence that
she was barred from pursuing a review of the deceased's removal from
office – indeed, the Booyens AJ order
went so far as to bar
anyone besides the deceased from pursuing a review. It defined the
rights of the parties, specifically Ms
Mkhize's rights, and legal
standing. And the result was that the relief sought by Ms Mkhize was
disposed of entirely. In light
of the above, I must conclude that the
Booyens AJ order was final and fell within the purview of the
doctrine of
res judicata
.’
[20]
These passages illustrate that the focus is not, therefore, upon what
orders the respondent sought
before Traverso DJP. The form of the
application and the nature of the relief sought, i.e. that it was
interim, is not relevant.
The question is always, what issue of fact
or law was decided by the court in the proceedings, and was it
finally decided.
[14]
In order
to answer the question reference must be made to the founding
affidavit that served before Traverso DJP. It is against
that
background that the judgment must be read.
[21]
Brummer founded his re-instatement application upon two main grounds.
The first involved a challenge
to his alleged indebtedness to the DA.
Brummer alleged that he was not indebted or, if indebted, only in a
trifling amount. He
also alleged that his account was in credit. The
second, more significant challenge, was presented as a challenge to
the lawfulness
of the ‘process’ adopted by the DA. In
regard to clauses 3.5.1.9 and 3.5.2 of the DA constitution, Brummer
alleged
that:
‘
These
clauses, applied to the letter, as has been done, are nothing short
of un-Constitutional and draconian and fly in the face
of all that
the [DA] professes to hold dear, respect and stand for.’
[22]
He expanded upon the averment by alleging that the cessation of
membership envisaged by the clauses,
is in breach of the principle of
audi alteram partem
; that it denies due process by precluding
access to a review court to set aside a decision; and that the rules
of natural justice
are breached. The second component of the
unlawfulness challenge was that the procedure constituted unfair
administrative action
in circumstances where he had challenged the
underlying debt. He concluded this portion of his affidavit by
stating:
‘
I
submit that item 3.5.1.9 of the Federal Constitution is so
demonstrably unfair and unjust that it should be considered to be
pro
non scripto
and therefore of no force or effect. A determination
that can only be made by a competent court. If we cannot settle this
dispute,
I intend pursuing my rights, even if I have to approach the
Constitutional Court.’
[23]
It is unnecessary to detail the DA’s basis for opposition. It
suffices to say that, in
relation to the unlawfulness challenge, the
DA denied that the cessation of membership involved administrative
action. It denied
that the ‘factual determination’ of
indebtedness was procedurally unfair. In dealing with the relief
claimed, the DA
averred that the declaration of a vacancy in the
municipal councils occurred upon the IEC being notified of the
termination of
membership and that the filling of such vacancy was
within the province of the IEC. There was nothing that the DA could
or was
required to do in that regard. The relief sought was therefore
not competent.
[24]
A transcript of the proceedings before Traverso DJP was received in
evidence on appeal to the
full court. Extensive reference was made to
it in argument before this court. There are, however, only three
respects in which
the submissions made before Traverso DJP need be
considered. First, at the stage that the matter was argued on 12
September 2012,
the vacancies which had been declared in the
municipal councils, had been filled by the IEC. This occurred despite
the interim
order issued by Louw J. It appears from the record that
the DA had already advised the IEC of the termination of Brummer’s
membership before the urgent application was launched. The IEC had
already acted upon that information and proceeded to fill the
vacancies. The date on which this occurred is not clear. Be that as
it may. On the basis of what had already occurred by 12 September
2012, Brummer’s counsel conceded, quite correctly, that he
could not move for the orders as framed in the notice of motion.
The
orders could not be granted irrespective of the lawfulness, or
otherwise, of the termination of Brummer’s membership.
[25]
Second, a reading of the transcript indicates that Brummer’s
counsel accepted that interim
relief could not be granted, at least
in relation to his re-instatement to positions in the municipal
councils. It is apparent
from the transcript, however, that he
prevaricated in relation to Brummer’s membership of the DA.
First contending for final
relief and then later for interim relief.
Nevertheless, he proceeded to present full argument before Traverso
DJP. A substantial
portion of his address concerned clause 3.5.1.9;
that it was contrary to public policy in that it deprived a member of
the right
to be heard and to challenge the basis upon which his
membership was terminated. Counsel who then appeared for Brummer,
submitted
to Traverso DJP that the ‘real issue…although
it is not identified as such in the notice of motion…is an
investigation
into clause 3.5.1.9 of the Federal Constitution of the
Democratic Alliance’. He went on to say that ‘this fact
is clear
from all the affidavits and annexures before the court which
were exchanged between the parties’ and that the issue had been
properly raised in the papers. In relation to this submission
Traverso DJP said that it was ‘a completely different issue
to
the one that I am asked to decide in terms of the notice of motion’.
[26]
These exchanges indicate that Brummer’s counsel had in mind
that the lawfulness of the
termination of Brummer’s membership
was squarely before Traverso DJP. It was upon this basis that he
later moved for
an amendment of the notice of motion. The
circumstances in which this occurred indicate that counsel came to
accept that the only
basis upon which he could obtain re-instatement
of membership of the DA, whether on an interim or final basis, was if
the court
granted a declaratory order that clause 3.5.1.9 was
invalid, either because it was in conflict with the Constitution or
was against
public policy. However, and this is the third aspect
which arises from the transcript, when he moved for an amendment of
the notice
of motion, Traverso DJP refused the amendment on the basis
that such a case had not been made out and that the issue was not
fully
ventilated on the papers.
[27]
After hearing argument in the matter Traverso DJP delivered a short
judgment dismissing the application
with costs. It is appropriate to
record the essential reasoning adopted by Traverso DJP.
‘
Mr
Knoetze conceded that as regards paragraph 3 above [a reference to
the interdict against the IEC], steps have already been taken
and
that one cannot interdict past action. Mr Knoetze further conceded
that the outcome of the remainder of the relief sought,
hinged on the
outcome of the Court issuing a declarator that clause 3.5.1.9 of the
Constitution of the 1
st
respondent be declared to be
against public policy and accordingly invalid.
No
such relief is asked in the original notice of motion and
consequently it was not dealt with in the heads of argument and in
my
view not properly ventilated in the papers.’
In
dealing with the amendment, Traverso DJP went on to state:
‘
I
am not inclined to grant the amendment. There has been no tender as
to costs. This matter is urgent. It was brought on an urgent
basis
and there seems to me to be no basis whatsoever for prolonging the
uncertainty in respect of a municipality such as the Bitou
Local
Municipality which we all know has got problems of its own. In any
event the proposed amendment introduces matters which
have not been
properly ventilated in the papers.’
The
judgment then records:
‘
In
the circumstances the application for the amendment of the notice of
motion at this late stage is dismissed and from that it
follows,
that, in view of the concessions made by Mr Knoetze that the balance
of the application can also not succeed.’
[28]
Counsel for the appellant¸ argued that in order to succeed in
obtaining orders for re-instatement
(whether interim or final)
Brummer had to establish that the termination of his membership was
unlawful on one or more bases. He
set out to establish that case
before Traverso DJP. He was required to advance his case upon every
ground available to him. He
did not do so. He therefore sought to
introduce a further ground, i.e., the constitutional invalidity
ground, at the hearing but
was not permitted to do so when the
amendment was refused. Since he pursued the relief, he must be bound
by the outcome notwithstanding
that he did not advance every ground
available to him. Once the question of lawfulness of the termination
of his membership is
decided, he is not at liberty to seek to advance
another ground not considered by the court. This, it was submitted,
is the essential
rationale for the
res judicata
principle. It
applies equally in relation to the
exceptio
in the form of
issue estoppel.
[29]
The argument is sound. However, it does not account for what occurred
at the hearing of the re-instatement
application. It does not account
for what Traverso DJP considered she was called upon to decide, nor
what she in fact decided.
[30]
I accept that the re-instatement application squarely raised a
lawfulness challenge. I also accept
that the same issue (
eadem
quaestio
) regarding the unlawfulness of the termination of
membership, is raised for determination in the damages action. In
relation to
each of Brummer’s alternative causes of action, as
pleaded, the lawfulness of the termination of his membership, whether
substantive or procedural, will be an essential element upon which
liability is established. So too the validity of the clauses
upon
which the DA relied.
[31]
The fact that the same issue arose before Traverso DJP is not in
itself sufficient to sustain
a plea of
res judicata
in the
form of issue estoppel. It must be established that the issue was
finally determined. Counsel argued that the order dismissing
the
application necessarily means that Traverso DJP found against Brummer
on the lawfulness challenge, since the order dismissing
the
application could not rationally have been given without such
finding. I disagree.
[32]
The argument does not acknowledge that, in this instance, there was
not only a single basis upon
which Traverso DJP might have dismissed
the application. She was dealing with an application for an
interdict, and so had to be
satisfied that all of the requirements
for such an order were met. In any event, by the time that the matter
was argued an interdict
against the IEC could not be granted. Nor
could an order preventing the DA and the municipalities from taking
steps to ‘appoint
anyone to the positions vacated’ by
Brummer. Those orders, on the facts, were no longer competent. What
remained was the
order seeking reinstatement of membership of the DA
coupled with a directive to the DA to restore Brummer into his
salaried positions
with the municipalities. This latter aspect of the
order was also not competent. That left only reinstatement to
membership of
the DA, which, in Traverso DJP’s view, required a
declaratory order.
[33]
Traverso DJP’s judgment, read in the light of the papers before
her and the conduct of
the hearing, does not support the conclusion
that she must have decided that Brummer’s membership
termination was lawful.
Her judgment indicates that she dismissed the
application because a case was not made out for granting the relief.
Apart from the
relief that was no longer competent, she understood
that in order to re instate Brummer to membership of the DA, and
provide
any consequential relief, it would be necessary to declare
that clause 3.5.1.9 was invalid and that his termination was
therefore
unlawful. But the learned judge held that such a case had
not been foreshadowed in the notice of motion and was not fully
ventilated
on the papers. Whether or not Traverso DJP was correct in
coming to that conclusion and to refuse the amendment, is not
relevant.
Having come to that conclusion, she dismissed the
application.
[34]
It was argued on behalf of the respondent that an order dismissing an
application is necessarily
equivalent to an order of absolution.
However, this Court held in
African
Farms
,
[15]
in relation to a similar argument, that:
‘
In
my view there is no substance in that argument. As Sande,
De
Diversis Regulis ad L.
207, points out, the
res judicata
is not so much the
sententia
, the sentence or the order made,
as the
lis
or
negotium
, the matter in dispute or
question at issue about which the
sententia
is given, or the
causa
which is determined by the
sententia judicis.’
[35]
In
MV
Wisdom C
[16]
Farlam JA stated that:
‘
It
is clear in our law that a defendant who has been absolved from the
instance cannot raise the
exceptio rei judicatae
if sued again
on the same cause of action: see
Grimwood v Balls
(1835) 3
Menz 448
;
Thwaites v Van der Westhuysen
(1888) 6 SC 259
;
Corbridge v Welch
(1891-2) 9 SC 277
at 279;
Van Rensburg v
Reid
1958 (2) SA 249
(E) at 252B-C; Herbstein & Van Winsen
The Civil Practice of the Supreme Court of South Africa
4 ed
1977 544 and 684; It was held in
African Farms and Townships Ltd v
Cape Town Municipality
1963 (2) SA 555
(A) at 563G-H that the
dismissal of an application (which ordinarily would be regarded as
the equivalent to granting absolution
from the instance :
Municipality of Christiana v Victor
1908 TS 1117
;
Becker v
Wertheim, Becker & Leveson
1943 (1) PH F34 (A)) can give rise
to the successful raising of the
exceptio rei judicatae
where,
regard being had to the judgment of the court which dismissed the
application,
the import of the order
[was] clearly that on the issues raised the Court found against the
appellant [which had been the applicant
in the previous proceedings],
and in favour of the respondent.
It
is thus clear that it is not the form of the order granted but the
substantive question (did it decide on the merits or merely
grant
absolution?) that is decisive in our law and that what is required
for the defence to succeed is a decision on the merits.’
[36]
In my view, Traverso DJP could not have intended her order dismissing
the application to mean that she had decided that the
membership
termination was lawful. This is so despite her expression of doubt
that the termination of membership was not unlawful
during exchanges
with counsel. To hold that the learned judge intended her dismissal
of the application to mean that she had decided
that question, would
be to accept that the she had, despite stating that the issue was not
properly and fully ventilated, indeed
decided the issue against
Brummer. Rather, Traverso DJP’s perfunctory treatment of the
matter indicates that she was not
prepared to decide that issue.
[37]
In these circumstances, the dismissal of the application amounted to
no more than an order of
absolution. Accordingly, a plea of
res
judicata
was not available and the appeal must fail.
[38]
It is regrettable that Traverso DJP did not expressly state, even if
briefly, what findings she
made and how those justify the order. This
is what one expects to find in a judgment. It ought to set out the
reasoning adopted,
so that the parties might understand what the
adjudicated result means. In this case, the paucity of the reasoning
gave rise to
the present dispute about the effect of the judgment.
Trial courts ought to be astute to avoid a situation where the effect
of
the orders they make become the subject of subsequent litigation
because they have failed to set out and explain the findings which
underlie their orders.
[39]
The judgment of the majority in the high court adopted a different
line of reasoning to that
followed here. An appeal, however, lies not
against the reasoning of the high court
.
It lies against the
order. In this instance the order is correct.
[40]
I therefore make the following order:
The
appeal is dismissed with costs, such costs to include the costs of
two counsel.
GG GOOSEN
ACTING JUDGE OF APPEAL
Appearances:
For the
appellant
A Kantor SC (with M Bishop)
Instructed
by
Minde Schapiro
& Smith Inc., Cape Town
Symington De Kok Inc.,
Bloemfontein
For the respondent
M G Swanepoel SC (with J J Nepgen)
Instructed
by
Nolte Smit Attorney,
Cape Town
Webbers Attorneys,
Bloemfontein.
[1]
Smith
v Porritt
[2007] ZASCA 19
;
2008 (6) SA 303
(SCA) para 10.
[2]
Prinsloo
NO and Others v Goldex 15 (Pty) Ltd and Another
[2012] ZASCA 28
;
2014
(5) SA 297
(SCA) para 26.
[3]
Boshoff
v Union Government
1932
TPD 345
at 350-351.
[4]
Aon
South Africa (Pty) Ltd v Van Den Heever NO and Others
[2017] ZASCA 66
;
2018
(6) SA 38
(SCA) para 40.
[5]
Boshoff
fn
3.
[6]
African
Farms and Townships Ltd v Cape Town Municipality
1963 (2) SA 555
(A) at 564C.
[7]
See
para 6 above.
[8]
African
Wanderers Football Club (Pty) Ltd v Wanderers Football Club
1977
(2) SA 38 (A).
[9]
Cipla
Agrimed (Pty) Ltd v Merck Sharp Dohme Corporation and Others
[2017] ZASCA 134;
2018
(6) SA 440 (SCA).
[10]
Mkhize
NO v Premier of the Province of KwaZulu-Natal
[2018]
ZACC 50; 2019 (3) BCLR 360 (CC).
[11]
Cipla
Agrimed
supra
para 19 (Rogers AJA) and para 48 (Gorven AJA (as he then was) for
the majority).
[12]
African
Wanderers
supra
at 46C.
[13]
Mkhize
supra
paras 41 – 45.
[14]
MV
Wisdom C: United Enterprises Corporation v STX Pan Ocean Co Ltd
[2008]
ZASCA 21
;
2008 (3) SA 585
(SCA) para 9.
[15]
African
Farms
(supra)
at 563E.
[16]
MV
Wisdom C
(supra)
para 9.
sino noindex
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