Case Law[2022] ZASCA 165South Africa
The Compensation Commissioner & Others v Compensation Solutions (Pty) Ltd and Compensation Solutions (Pty) Ltd v The Compensation Commissioner & Others (997/2021; 1175/2021) [2022] ZASCA 165 (29 November 2022)
Supreme Court of Appeal of South Africa
29 November 2022
Headnotes
Summary: Compensation for Occupational Injuries and Diseases Act 130 of 1993 (the Act) – interpretation of court order of 31 July 2009 (the 75-day order) – whether order applies to medical accounts that formed the subject matter of application 35047/2009 or whether it also applies to medical accounts to be submitted after 31 July 2009 – whether compliance with the so-called W.CI.20 procedure reflected in the applicable regulations issued pursuant to the Act is mandatory and a jurisdictional prerequisite to legal proceedings – whether s 32 of the Act prohibits the cession by medical service providers of their medical accounts.
Judgment
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## The Compensation Commissioner & Others v Compensation Solutions (Pty) Ltd and Compensation Solutions (Pty) Ltd v The Compensation Commissioner & Others (997/2021; 1175/2021) [2022] ZASCA 165 (29 November 2022)
The Compensation Commissioner & Others v Compensation Solutions (Pty) Ltd and Compensation Solutions (Pty) Ltd v The Compensation Commissioner & Others (997/2021; 1175/2021) [2022] ZASCA 165 (29 November 2022)
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sino date 29 November 2022
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
### JUDGMENT
JUDGMENT
Reportable
Case
No.
997/2021
In
the matter between:
THE
COMPENSATION COMMISSIONER
FIRST APPELLANT
THE
DIRECTOR-GENERAL,
DEPARTMENT
OF LABOUR OF THE
NATIONAL
GOVERNMENT OF THE
REPUBLIC
OF SOUTH AFRICA
SECOND APPELLANT
THE
MINISTER OF
LABOUR
THIRD APPELLANT
and
COMPENSATION
SOLUTIONS (PTY) LTD
RESPONDENT
Case
no: 1175/2021
And
in the matter between:
COMPENSATION
SOLUTIONS (PTY)
LTD
APPELLANT
and
THE
COMPENSATION COMMISSIONER
FIRST RESPONDENT
THE
DIRECTOR-GENERAL,
DEPARTMENT
OF LABOUR OF THE
NATIONAL
GOVERNMENT OF THE
REPUBLIC
OF SOUTH AFRICA
SECOND RESPONDENT
THE
MINISTER OF
LABOUR
THIRD RESPONDENT
Neutral
citation:
The
Compensation Commissioner & Others v Compensation Solutions (Pty)
Ltd
(Case no 997/2021) and
Compensation
Solutions (Pty) Ltd v The Compensation Commissioner & Others
(Case no 1175/2021)
[2022] ZASCA 165
(29 November 2022)
Coram:
PONNAN, VAN DER MERWE and MOTHLE JJA and GOOSEN
and DAFFUE AJJA
Heard
:
28 September 2022
Delivered
:
29 November 2022
Summary:
Compensation for Occupational Injuries
and Diseases Act 130 of 1993 (the Act) – interpretation of
court order of 31 July 2009
(the 75-day order) – whether order
applies to medical accounts that formed the subject matter of
application 35047/2009 or
whether it also applies to medical accounts
to be submitted after 31 July 2009 – whether compliance with
the so-called W.CI.20
procedure reflected in the applicable
regulations issued pursuant to the Act is mandatory and a
jurisdictional prerequisite to
legal proceedings – whether s 32
of the Act prohibits the cession by medical service providers of
their medical accounts.
ORDER
On
appeal from:
Gauteng Division of the
High Court, Pretoria (Teffo J, case no 30147/2018) and (Fourie J,
Mali J and Makhoba J, case no 34386/2020
& 34387/2020) sitting as
court of first instance):
1
In the first appeal under SCA case no
997/2021:
1.1
The appeal is upheld with costs, including
the costs of two counsel where so employed.
1.2
The order of the high court is set aside
and replaced with the following:
‘
a.
The application succeeds with costs, including the costs of two
counsel where so employed.
b. An order issues in
accordance with Prayer 1 of the notice of motion.’
2
In the second appeal under SCA
case no 1175/2021
2.1
The appeal is dismissed with costs,
including the costs of two counsel where so employed.
2.2
The cross-appeal is dismissed with costs,
including the costs of two counsel where so employed.
2.3
The State Attorney shall not be entitled to
recover from its clients the fees and expenses of more than one
senior and one junior
counsel.
3
The costs occasioned by the
postponement of the matter on 5 September 2022 shall be costs in the
appeals.
JUDGMENT
Daffue
AJA (Ponnan, Van der Merwe and Mothle JJA and Goosen AJA concurring)
Introduction
[1]
Before us are two related appeals.
Foundational to each is a settlement agreement reached between the
parties on 31 July 2009 (the
settlement agreement) and, by consent,
made an order of court by Makhafola AJ on that day. That order has
come to be described
in the litigation as the 75-day order. In the
first matter, the high court (per Teffo J) held that the settlement
agreement, and
by extension the 75-day order, was ‘intended to
regulate the future relationship between the parties’. In the
second,
a specially constituted court (per Fourie, Mali and Makhoba
JJ), sitting as a court of first instance, took the view that Teffo
J
was ‘clearly wrong’. We are accordingly required to
resolve that difference of opinion.
[2]
In June 2009, Compensation Solutions (Pty) Ltd (CompSol), a private
company that conducts
the business of factoring the accounts of
medical service providers (MSP’s), brought an application in
the Gauteng Division
of the High Court, Pretoria (the high court)
under case no 35047/2009 against the Compensation Commissioner (the
Commissioner),
the Director-General of the Department of Labour (the
DG) and the Minister of Labour (the Minister) as first, second and
third
respondents respectively (collectively referred to as the State
parties). That matter was settled and pursuant to the settlement
agreement the 75-day order issued.
The two judgments on
appeal to this Court
[3]
Under case no 30147/2018, the State parties inter alia sought a
declaratory order
that the 75-day order was ‘specifically meant
and intended to settle the issues and claims that were the subject
matter of
litigation between the parties as on [31 July 2009,
incorrectly referred to as 2 June 2009 in the notice of motion] and
upon which
[Makhafola AJ] was called upon to adjudicate’. On 17
July 2020 the application was dismissed with costs by Teffo J (the
first
judgment), who also subsequently dismissed an application for
leave to appeal. The appeal by the State parties, under appeal number
997/2021, against the order of Teffo J is with the leave of this
Court.
[4]
In September 2020, the Judge President of the high court constituted
a special court
consisting of three judges to sit as a court of first
instance to consider several claims that had been instituted under
case numbers
34386/2020 and 34387/2020 by CompSol, as plaintiff,
against the Commissioner and the DG, as defendants. This, because the
same
legal issues had featured in many other matters between the same
parties. The defendants raised several special pleas, eight of
which
eventually came to be considered by the high court as discrete legal
issues, without the need for the hearing of oral evidence.
[5]
On 11 August 2021 a unanimous judgment was delivered by the three
judges (the second
judgment). The first special plea was upheld. It
found, contrary to the first judgment, that the settlement agreement
and 75-day
order did not ‘regulate the processing and payment
of claims submitted [by CompSol] after 31 July 2009’. The
second
special plea, dealing with the alleged premature institution
of proceedings on the basis of non-compliance with the so-called
W.CI.20
procedure reflected in the applicable regulations, was
dismissed. The third special plea, pertaining to the alleged
prohibition
of the cession of medical claims relied upon by CompSol,
suffered the same fate. The fourth special plea relating to CompSol’s
alleged non-compliance with
ss 1
and
2
of the
State Liability Act 20
of 1957
was upheld. This issue, against which there is no appeal and
which pertains to whether the Minister should have been joined, will
be returned to shortly. The fifth special plea was abandoned and the
full court dismissed the other special pleas, all of which
are
irrelevant for purposes of this appeal.
[6]
CompSol applied for leave to appeal against the upholding of the
first special plea,
whilst the Commissioner and DG applied for leave
to cross-appeal the dismissal of the second and third special pleas.
On 14 September
2021 the high court granted leave to the parties to
appeal and cross-appeal to this Court. The appeal and cross-appeal
are before
us under appeal number 1175/2021.
[7]
Thereafter, CompSol applied to the President of this Court for the
consolidation of
the two appeals. That, however, was to misconceive
the position. No provision exists in the rules either in this Court
or the high
court for a consolidation of appeals. What should have
been requested, given the common ground in both appeals and for
reasons
of convenience, was that both matters be set down for hearing
on the same day before the same panel of judges. That, in the event,
happened.
[8]
The Minister did not initially feature as a party in appeal number
1175/2021. Prior
to the hearing of the matter, the presiding judge
requested the Registrar to despatch the following note to the
parties:
‘
Inasmuch
as leave was neither sought nor granted to appeal against paragraph 4
of the order of the Court below:
1. The appellant is
required to indicate as a matter of urgency whether there has been:
1.1 compliance with
s 2
of the
State Liability Act 20 of 1957
; and
1.2 the Minister has been
joined as a nominal defendant (see Judgment para 105 – record
page 280)?
2. If not, whether the
appeal can proceed in the absence of (1.1) and (1.2) above?’
[9]
In response, the parties asserted that it was not necessary for the
Minister to be
joined as a party and that the matter should be heard
and finalised in the Minister’s absence. This view was shaped
in part,
it would seem, by the erroneous view that the appeals had
been consolidated. However, when the issue was raised again at the
hearing
on 5 September 2022 it was conceded that the Minister was a
necessary party. Consequently, both matters had to be postponed to 28
September 2022 for hearing, with directions for the joinder of the
Minister. The Minister thereafter filed an affidavit, with the
leave
of this Court, to which CompSol responded. In the affidavit and in
oral argument before us, the Minister supported the position
of the
Commissioner and the DG.
Relevant factual
background leading up to the 75-day order
[10]
MSP’s who have provided medical aid to employees are entitled
to the payment of the costs
of such medical aid subject to the
provisions of the Compensation for Occupational Injuries and Diseases
Act 130 of 1993 (the Act)
and the regulations. Traditionally medical
accounts were submitted by individual MSP’s to the Commissioner
in respect of
services rendered by them. Compsol has its principal
place of business in Port Elizabeth, from where it conducts, as
mentioned
above, the business of factoring medical accounts payable
in terms of the Act. According to the uncontested evidence in the
application
for declaratory relief it has approximately 1400 MSP’s
as its customers, consisting of some 4 000 individual service
providers.
It handled, at that time, 45% of all medical accounts
submitted to the Commissioner. In terms of written agreements with
these
customers, Compsol purchases the right, title and interest in
medical account claims against the Commissioner at a discount and
takes cession thereof to allow it to submit claims for payment of the
medical accounts so factored and to claim payment of the
validated
medical accounts for its own account.
[11]
CompSol confirmed in its answering
affidavit in the application for declaratory relief that it had
experienced inordinate delays
with the finalisation of payment, which
caused it to launch the application in 2009. The second judgment
summarised CompSol’s
version and, inter alia, stated that as at
18 May 2009, an amount of about R137 million was outstanding and that
5 500 new claims
were submitted weekly.
[12]
As mentioned, numerous actions had been
instituted by Compsol against the Commissioner and DG in the high
court since the grant
of the 75-day order. In these actions Compsol
invariably relied on the 75-day order as a cause of action.
The issues
[13]
Against that background, three issues arise for determination. These
are whether:
(a)
on a proper interpretation, the settlement agreement and the 75-day
order applied only to
the medical accounts that formed the subject
matter of the application that served before Makhafola AJ or also to
accounts that
were to be submitted by CompSol in the future;
(b)
CompSol had commenced proceedings prematurely in that it did not
comply with the W.CI.20
procedure contained in the applicable
regulations issued under the Act; and
(c)
s 32 of the Act prohibits cession of the MSP’s claims
relied upon by CompSol.
Issue (a) is common to
both appeals and, if answered in favour of the State parties, would
necessarily be dispositive of both appeals
in their favour. Issues
(b) and (c) form the subject of the cross-appeal by the State parties
under appeal number 1175/2021.
The 75-day order
[14]
The settlement agreement reads:
‘
BY
CONSENT, IT IS ORDERED THAT:
1
The First Respondent [the Compensation Commissioner] shall process
all medical
accounts submitted to him in relation to medical aid
provided to employees by medical practitioners, as envisaged in the
Compensation
for Occupational Injuries and Diseases Act 130 of 1993
(“the Act”) within a reasonable time from the submission
of
such accounts.
2
In respect of the submission of a medical account relating to a claim
which
has been accepted (i.e. the first respondent has accepted
liability for the claim), and in respect of a medical account
submitted
after such acceptance, a reasonable time for the
First Respondent to process, validate and effect payment of such
validated
medical accounts is within 75 days of acceptance of a
claim, or where this occurs after the acceptance of the claim, the
date of
submission of such accounts. For avoidance of doubt, it is
recorded that in respect of medical accounts submitted before
acceptance
of a claim, the 75 days will be calculated from the date
of acceptance of the claim.
3
The First Respondent shall process the backlog of medical accounts
referred
to in Annexure JL12, at page 88 of the Record in this
application, by 30 October 2009.
4
The First Respondent shall pay the Applicant [Compensation Solutions
(Pty)
Ltd] interest at the current legal rate of interest (being 5.5
per cent per annum) on all currently outstanding medical accounts
to
which the letter of demand dated 25 March 2009 (record, pages 88-9)
relates, from such date of demand to the date of payment
of each such
respective account.
5
The Applicant will submit a CD to the First Respondent on a
fortnightly
basis containing a list of claims, and the First
Respondent shall thereupon provide the status of each claim, and
where the claim
has been accepted, the date of such acceptance, to
the Applicant within 7 (seven) days of receipt of the CD.
6
The parties record their mutual commitment to a functional process in
relation
to claims and medical accounts submitted by the Applicant,
and a good working relationship in that regard. Accordingly, to
resolve
any queries, disputes or discrepancies in relation to medical
accounts submitted for payment, the Applicant and the First
Respondent
(or his designated representatives) shall meet weekly at
the latter’s Port Elizabeth offices.
7
This agreement shall apply equally to the Second Respondent [the
Director
General] as the party principally responsible for compliance
with the obligations and performance of the functions set out in the
Act.
8
The Respondents shall pay the party and party costs of this
application,
as taxed or agreed, including the costs of two counsel.
9
The Respondents consent to this agreement being made an order of
court.
10
The parties accept the above undertakings in settlement of the above
application.
11
This agreement and its contents are confidential to the parties.’
Evaluation of the
parties’ submissions pertaining to the law, the facts and the
aforesaid two judgments
Does the 75-day order
regulate the processing and payment of medical claims submitted after
31 July 2009?
[15]
CompSol contended that the word ‘submitted’
in the 75-day order does not refer to the past tense as held in the
second
judgment, but should be construed to refer to the past,
present and future and therefore to include future claims as well,
especially
when the order is read in context. The phrase ‘medical
account(s) submitted’ is found in paragraphs 1, 2 and 6 of the
75-day order. There is a clear and apparent difference between the
wording of paragraphs 1, 2 and 6, on the one hand and paragraphs
3
and 4, on the other. Paragraph 1 does not take the matter any further
as it merely records that all medical accounts submitted
to the
Commissioner must be processed within a reasonable time. The first
group of paragraphs does not deal with the deadline of
30 October
2009 and interest payable, which is expressly dealt with in
paragraphs 3 and 4 in respect of the claims submitted by
18 March
2009, being the letter of demand dated 25 March 2009. These last
mentioned two paragraphs, dealing with the backlog as
at 18 March
2009 provide for processing of those claims by 30 October 2009 and
payment of interest thereon. They do not deal
with the thousands of
medical accounts submitted since 18 March 2009 until 31 July 2009.
[16]
In my view, the differentiation between the
two groups of paragraphs cannot lead to a conclusion that the parties
intended to include
future claims submitted after 31 July 2009. In
context, the word ‘submitted’ in these paragraphs points
to the past
tense and indicates that the parties intended to deal
only with medical accounts submitted before the date of the order, to
wit
31 July 2009. It seems to me that if the parties had future
claims in mind, they would have used words such as ‘medical
claims
to be submitted’.
[17]
The arrangements pertaining to weekly
meetings and the submission of CDs with lists of claims to be
forwarded to the Commissioner
on a fortnightly basis do not support
the construction advanced by Compsol. Their apparent purpose was to
address the problems
experienced by CompSol in respect of existing
claims. It could hardly be construed as imposing an obligation on the
DG to meet
with CompSol to regulate the processing of future claims
ad infinitum. The only business-like and sensible construction
therefore
is that the envisaged meetings could only relate to claims
that were already extant when the settlement agreement was concluded.
[18]
Bearing in mind the thousands of medical
accounts submitted since 18 March 2009 until the date of the
issuing of the application
at the beginning of June 2009, as well as
several thousand further accounts that would have been submitted in
the period from the
date of the application to 31 July 2009, I am
satisfied that the 75-day order regulated the backlogged claims as
well as all other
medical accounts which had already been submitted
by the time that the 75-day issued, but not any future accounts to be
submitted
after this date. CompSol conceded during oral argument that
the 75-day order does not explicitly refer to future claims (namely
claims to be submitted after 31 July 2009). It accordingly had
to accept that the order dealt with the subject matter before
the
court at the time, unless it contained a tacit term to the contrary.
It could not point to such a term and I find no such tacit
term in
the 75-day order.
[19]
Paragraph 10 of the 75-day order is the
final nail in CompSol’s coffin. It reads as follows, with my
emphasis: ‘The
parties accept the
above
undertakings
in settlement of the
above
application
.’ The ‘above’
application could have had nothing to do with future medical
accounts. The purpose was to settle
the issues that were before the
court at the time and not beyond. Put otherwise, the settlement
agreement as contained in the 75-day
order was backward-looking and
did not deal with medical accounts to be submitted in perpetuity.
[20]
Although this finding means that the State parties have been
successful in both appeals, it is
nonetheless important to recognise
that the parties agreed that the period of 75 days was a reasonable
period for the Commissioner
to process, validate and effect payment
of medical accounts. Also, the high court put its imprimatur on the
agreement. It follows
that the settlement agreement and 75-day order
will continue to have precedential value to which the parties are
bound, unless
a court may find in the future that in the given
circumstances of a particular case the Commissioner should not be
held to this
period.
Non-compliance with
the W.CI.20 procedure and premature actions
[21]
The first of the two issues in the cross appeal is the contention by
the State parties that CompSol
had instituted the actions prematurely
in that it had failed to comply with the mandatory billing procedure
set out in the regulations
issued in terms of the Act. According to
them, the so-called W.CI.20 procedure is a jurisdictional
prerequisite and CompSol’s
failure to comply therewith
constitutes a bar to proceeding. In the application for declaratory
relief CompSol provided uncontested
evidence in its answering
affidavit that the billing procedure was geared for singular accounts
only, but that this procedure had,
in any event, been abandoned by
the Commissioner with the introduction of the paperless electronic
system called ‘CompEasy’
and before that the ‘Umhleko’
system. Bearing in mind the test in
Plascon-Evans
Paints
Ltd v Van Riebeeck Paints (Pty) Ltd
[1]
(
Plascon-Evans
)
pertaining
to the adjudication of opposed applications, there is no reason not
to accept this version, especially as the Commissioner
did not
respond thereto in its replying affidavit.
[22]
The second judgment held that there was no indication that the
regulation pertaining to unpaid
medical accounts was intended to
regulate and prescribe the procedure to be followed regarding the
institution of legal proceedings
and that the apparent purpose of the
procedure was to regulate enquiries to avoid thousands of telephone
calls regarding unpaid
accounts. It held that if the legislature
intended to make compliance mandatory and a jurisdictional
requirement for the institution
of legal proceedings, that should
have been stated clearly. I agree. There is accordingly no merit in
the cross-appeal in respect
of the dismissal of this special plea.
Does s 32 prohibit the
cession of medical claims?
[23]
The remaining issue in the cross-appeal is whether s 32 of the Act
prohibits the cession of medical
claims. Section 32(1) reads as
follows:
‘
Notwithstanding
anything to the contrary in any other law contained, compensation
shall not-
(a)
be ceded or pledged;
(b)
be capable of attachment or any form of execution under a
judgment or order of a court of law;
(c)
. . .
(d)
be set off against any debt of the
person entitled to the compensation.’
[24]
The argument of the State parties is entirely dependent on the
proposition that the word ‘compensation’
in s 32(1)
includes the cost of medical aid. For the reasons that follow, the
proposition is untenable. Section 32 cannot be read
in isolation but
with regard to the scheme of the Act as a whole as well as its object
and purpose. The preamble confirms that
it is to provide for
compensation for disablement caused by occupational injuries or
diseases sustained or contracted by employees
in the course of their
employment or for death resulting from such injuries or diseases;
and
to provide for matters connected therewith
. As I shall show, the
Act draws a clear distinction between compensation and the cost of
medical aid.
[25]
The following relevant definitions are contained in s 1:
‘“
compensation
”
means compensation in terms of this Act and,
where
applicable medical aid or payment of the cost of such medical aid.
’
(Emphasis added.)
‘“
medical
aid
” means medical, surgical or
hospital treatment, skilled nursing services, any remedial treatment
approved by the Director-General,
the supply and repair of any
prosthesis or any device necessitated by disablement, and ambulance
services where, in the opinion
of the Director-General, they were
essential.’
[26]
The Commissioner is appointed by the Minister to assist the DG in the
performance of the functions
set out in s 4 of the Act and the
functions of the Commissioner are set out in s 6A. A Compensation
Fund (the Fund) has been established
in terms of s 15, consisting
inter alia of assessments paid by employers. Section 16 stipulates
that the Fund shall be under the
control of the DG and its moneys
shall be applied inter alia for ‘(a) the payment of
compensation,
the cost of medical aid
or other pecuniary
benefits to or on behalf of or in respect of employees in terms of
this Act where no other person is liable
for such payment;’.
(Emphasis added.) The differentiation between compensation and
medical costs is apparent.
[27]
Chapter IV deals with compensation for occupational injuries. Section
22, the first section under
Chapter IV, deals with the right of an
employee to compensation in the event of an accident resulting in the
employee’s disablement
and in the event of the employee’s
death, their dependents shall, subject to the provisions of the Act,
be entitled to the
benefits provided for and described in the Act.
Section 31 provides that the DG may hold an employer individually
liable to deposit
such security as in the opinion of the DG is
sufficient to cover the liabilities of the employer in terms of the
Act. The heading
of the section distinguishes between compensation
and the cost of medical aid. It states: ‘[s]ecurity for payment
of compensation
and cost of medical aid for employers individually
liable’. The same differentiation is found in s 26
entitling the
DG to refuse to pay either the whole or a portion of
compensation on the one hand and on the other to refuse to pay the
whole or
any portion of the cost of medical aid.
[28]
Section 34 stipulates that compensation owing to the death of an
employee shall not form part
of their estate. Surely, insofar as the
employee does not personally have to pay for the medical costs
incurred, no claim for payment
of medical costs incurred can form
part of the estate of the employee. Therefore, the reference to
compensation in this section
can only be compensation as determined
and calculated in Chapter VI.
[29]
Chapter VI deals with the determination and calculation of
compensation in ss 47 to 64. In terms
of these sections, compensation
excludes medical aid or payment of the cost of such medical aid.
Compensation for occupational
diseases is dealt with in Chapter VII
and again, if this chapter is considered in context, especially
pertaining to the calculation
of compensation, there can be no doubt
that medical aid or payment of the cost of medical aid is excluded
from compensation payable
as a result of an occupational disease
suffered by an employee.
[30]
Chapter VIII deals with medical aid in ss 72 to 79. It includes the
reasonable costs of conveyance
as provided for in s 72. Section 73
deals with reasonable costs incurred by or on behalf of an employee
in respect of medical
aid necessitated by an accident or disease. The
fees for medical aid shall be calculated in accordance with a tariff
determined
by the DG from time to time as provided for in s 76.
Section 77 prohibits contributions by employees towards the cost of
medical
aid supplied or to be supplied in terms of the Act.
[31]
Importantly, where it is intended that compensation includes the cost
of medical aid, as envisaged
in the definition of ‘compensation’,
the Act says so expressly. For example, subsec 36(4) provides that
for the purposes
of s 36, compensation includes the cost of medical
aid. Subsection 39(10), in turn, stipulates that for the purposes of
subsec
39(8), compensation includes the cost of medical aid.
[32]
I agree with the second judgment that there are three categories of
persons who might be entitled
to claim in terms of the Act, to wit
employees, their dependants in the event of their death and MSP’s
who provided medical
aid. The central theme of the Act is the payment
of compensation to employees and their dependants, whereas the
payment to MSP’s
for medical aid rendered deals with ancillary
matters or matters connected therewith as contained in the preamble.
There can be
no doubt that the purpose of s 32 is to protect the
interests of employees against themselves in case of their
disablement and
their dependants in the case of their death.
Employees are also protected against their creditors as compensation
is not capable
of attachment or any form of execution. Furthermore,
no set-off is allowed against the debt of a person entitled to
compensation.
None of that finds application to MSP’s.
Consequently, for the reasons given,
the
cross-appeal must fail.
Costs
[33]
I referred to the fact that the hearing of the matter had to be
postponed on 5 September 2022.
There is no reason why those costs,
which were reserved, should not form part of the costs in the
appeals.
[34]
The judgment cannot be concluded without dealing with the
Commissioner’s decision to appoint
five counsel in appeal
1175/2021. When the matter was called on 5 September 2022, the State
parties were represented by seven counsel
in total, a senior and
junior in appeal 997/2021 and a senior and four juniors in appeal
1175/2021. This Court called for an explanation
as to why it was
deemed necessary to appoint so many counsel. When the appeal was
eventually heard, the State parties were only
represented by two
counsel in appeal 1175/2021 and as previously, the two other counsel
in appeal 997/2021. Money that could be
made available for the
payment of compensation to worthy claimants was wasted on unnecessary
legal costs. There was simply no explanation
as to why that many
counsel were briefed. It would accordingly not be appropriate for the
State Attorney to recover from its clients
in appeal 1175/2021 the
fees and expenses of more than one senior and one junior counsel.
Conclusion
[35]
The parties were in agreement that the costs should follow the
result. In conclusion, appeal
997/2021 should be upheld, such costs
to include the costs of two counsel where so employed. Both the main
and cross-appeals in
appeal 1175/2021 should be dismissed with costs,
such costs to include the costs of two counsel where so employed.
Order
[36]
The following order is made:
4
In the first appeal under SCA case no
997/2021:
4.1
The appeal is upheld with costs, including
the costs of two counsel where so employed.
4.2
The order of the high court is set aside
and replaced with the following:
‘
a.
The application succeeds with costs, including the costs of two
counsel where so employed.
b. An order issues in
accordance with Prayer 1 of the notice of motion.’
5
In the second appeal under SCA
case no 1175/2021
5.1
The appeal is dismissed with costs,
including the costs of two counsel where so employed.
5.2
The cross-appeal is dismissed with costs,
including the costs of two counsel where so employed.
5.3
The State Attorney shall not be entitled to
recover from its clients the fees and expenses of more than one
senior and one junior
counsel.
6
The costs occasioned by the
postponement of the matter on 5 September 2022 shall be costs in the
appeals.
J
P DAFFUE
ACTING
JUDGE OF APPEAL
Appearances
For
appellants in appeal 997/2021:
S
S Maakane SC and A N Tshabalala
Instructed
by:
State Attorney, Pretoria
State Attorney,
Bloemfontein
For
respondent:
P G Robinson SC and C J Welgemoed
Instructed
by:
VDT Attorneys, Pretoria
Phatshoane Henney
Attorneys, Bloemfontein
For
appellant in appeal 1175/2021
(respondent
in cross-appeal):
P G Robinson SC and C J Welgemoed
Instructed
by:
VDT Attorneys, Pretoria
Phatshoane Henney
Attorneys, Bloemfontein
For
respondents
(appellants
in cross-appeal):
J O Williams SC and
W N Mothibe
Instructed
by:
State Attorney, Pretoria
State Attorney,
Bloemfontein
[1]
Plascon-Evans
Paints Ltd v Van Riebeeck Paints (Pty) Ltd
[1984]
ZASCA 51
;
1984 (3) SA 623
(A).
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