Case Law[2025] ZAGPJHC 127South Africa
Furman and Another v City of Johannesburg and Others (2022/026555) [2025] ZAGPJHC 127 (3 February 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
3 February 2025
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# South Africa: South Gauteng High Court, Johannesburg
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## Furman and Another v City of Johannesburg and Others (2022/026555) [2025] ZAGPJHC 127 (3 February 2025)
Furman and Another v City of Johannesburg and Others (2022/026555) [2025] ZAGPJHC 127 (3 February 2025)
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sino date 3 February 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
Number: 2022/026555
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: YES
(2)
REVISED: YES
In
the matter between:
DARRYL
FURMAN
First Applicant
LINSEY
MICHELE FURMAN
Second Applicant
and
CITY
OF JOHANNESBURG
First Respondent
THE
CITY MANAGER (JOHANNESBURG)
Second
Respondent
THE
DIRECTOR, WATER SERVICES
(CITY
OF JOHANNESBURG)
Third Respondent
JUDGMENT
SMIT, AJ
Introduction
[1]
This
is the sixth instalment of what appears to be protracted agony for
the applicants.
[1]
[2]
Mr Darryl Furman and his wife,
Ms Linsey Furman co-own a property in Linksfield North,
Johannesburg. They have
been in constant dispute since at least 2017
with the first respondent (City of Johannesburg or “City”)
over what they
consider to be severely inflated and incorrect water
and electricity accounts. This dispute has resulted in five previous
hearings
and several orders of court (detailed below), aspects of
which the City has simply ignored.
[3]
In their exasperation, the Furmans have now
approached the Court for relief they say is justified by the City’s
obvious and
repeated contempt of court. In what came before me as the
return date of a
rule nisi
first
issued on 26 February 2024, and later extended on
20 May 2024, they sought
inter
alia
(as paraphrased) —
a.
Relief aimed to compel the City to reflect
that, as at 24 November 2023 (when the notice of motion was
amended), the amount
they owed to the City in respect of rates and
taxes, refuse, sewerage, electricity and water is nil Rand;
b.
Relief
aimed at compelling the City to issue, on demand by a conveyancer, a
clearance certificate in terms of section 118(1)
of the Local
Government: Municipal Systems Act (Systems Act);
[2]
and
c.
Relief aimed at declaring that the City is
in contempt of two previous orders of the Court and committing the
second respondent
(the City Manager) or the third respondent (the
Director of Water Services) to direct imprisonment.
[4]
As I explain below, the City remains in
contempt of court. Nevertheless, I conclude that the Furmans are not
entitled to any of
the relief embodied in the rule
nisi
,
given their cause of action and the way their application was framed.
[5]
Without expressing any view in that regard,
it may be that the Furmans are entitled to certain of the relief they
sought (even if
incrementally) by following the correct procedures –
most importantly by applying for clearance figures from the City –
and then, if aggrieved, by framing their cause of action correctly.
Assessing whether the Furmans may be so entitled will, in my
view,
have to be the function of a different court hearing a
differently-framed application.
[6]
In what follows, I set out the protracted
history of this application (even if briefly). I then explain why the
Furmans’ reliance
on the City’s contempt does not assist
them in this application. Next, I explain why they are not entitled
in the application
as currently framed to the substantive relief they
seek. Finally, I deal with the issue of costs.
Background and procedural
history
[7]
This
matter first came before the urgent court on 5 March 2019.
The founding affidavit in the urgent application explained
that the
Furmans had, in various ways, lodged disputes with the City over
their water and electricity accounts, from March 2017
onwards.
Despite the disputes, and the provisions of section 102(2) of
the Systems Act,
[3]
the City
took steps to disconnect their water and electricity.
[8]
The urgent court granted an order
by
agreement
that the City may not
disconnect the Furmans’ water and electricity supply. It also
ordered the City to “
meaningfully
engage the [Furmans] to reconcile the accurate amounts of their
electricity and water consumption
”.
[9]
Following the urgent court’s order,
there were many engagements between the City and the Furmans. They
were, from the Furmans’
perspective, abortive. Despite
admissions that one or more of the meters at the Furmans’
property are inaccurate and undertakings
to address this, the Furmans
continued to experience what they allege to be inaccurate and
severely inflated readings. The Furmans
thus continued to lodge
disputes with the City and to engage it, seemingly to little effect.
[10]
At some stage in 2021, the water and
electricity meters at the property were changed, for reasons that are
not common cause. The
Furmans allege that their readings remain
inaccurate. They received many strange and, on their face,
nonsensical accounts from
the City. They hired a rates agent to
engage with the City, also to little apparent effect. At some stage,
they started receiving
accounts referring to the meter number of what
they say is a “
ghost meter
”
(i.e. one which is not installed at their property).
[11]
Throughout
the period, the City’s engagements with the Furmans were
haphazard, opaque and inconclusive. The City did not adhere
to its
own dispute resolution mechanism, as set out in its by-laws.
[4]
It did not issue anything cognisable as a decision on the disputes
submitted to it, although it did – from time to time –
issue re-billed accounts which were confusing, inconsistent and
further muddied the waters. In addition, the City levied interest
on
amounts it described as overdue, which now runs to several thousand
rands per month.
[12]
Again, at various times, the Furmans
continued to be harassed by debt collection agencies and persons
threatening to cut off their
supply of water and electricity. (It is
unclear whether these persons were authorised by the City to do so or
were rogue actors
taking advantage of the situation – the
Furmans allege that they had to pay “
fees
”
to these persons in what may amount to blackmail to stave off a
disruption of their supply.)
[13]
Although this had been threatened since
June 2019, the Furmans brought a further application on
21 September 2022. They
filed a comprehensive founding
affidavit setting out the history of inconclusive engagements with
the City following the order
of the urgent court. As I explain below,
the City (eventually) filed an answering affidavit
on
the day this matter was set down to be heard (19 November 2024).
The answering affidavit did not meaningfully dispute
most of the
allegations in the founding affidavit.
[14]
In their founding affidavit, the Furmans
referred to correspondence of June 2022, in which they indicated
to the City that
they intended to sell the property and would need to
resolve these issues in order to obtain rates clearance figures and a
clearance
certificate. Nevertheless, they did not – at the time
– take any action or claim any relief in that regard.
[15]
The September 2022 application came
unopposed before this Court on 17 January 2023, which granted
inter alia
the
following relief (paraphrased) —
a.
The City was ordered to comply with the
urgent court’s order;
b.
The City was ordered to cease threatening
to cut off the Furmans’ electricity and water supply or to
actually disconnect it
before complying with the urgent court’s
order;
c.
The City was ordered to replace each
defective water and electricity meter at the property and to dispatch
properly experienced
meter readers to the property co confirm that
the meters have been correctly installed and are working properly;
d.
The City was ordered to review its accounts
from November 2015 onwards, and to provide correct meter readings to
the applicants,
“
so that the
parties are able to meaningfully engage in an attempt to rectify the
incorrect accounts
”; and
e.
The City was ordered to render a full
corrected account from November 2015 onwards, supported by
documentation and vouchers and
to debate it with the Furmans.
[16]
The City did not comply with these orders.
[17]
As a result, on 11 July 2023, the Furmans
brought an application for contempt of court (under the same case
number as the September 2022
application and under which this
matter was heard). The contempt application cited the City Manager
and the Director of Water Services
in
their official capacities
. Among other
relief, the applicants asked for their committal to imprisonment or
for the City to pay a fine.
[18]
The founding affidavit in the contempt
application flagged further harassment from debt collectors. It
indicated that the sale of
the property was “
imminent
”
and that rates clearance figures and a rates clearance certificate
would need to be obtained (but without having applied
for these as
yet). The Furmans anticipated that the amount reflected in the rates
clearance figures would be inflated, not only
because it would
contain incorrect arrears amounts, but also because the prepayments
required would be calculated on inflated historical
figures.
[19]
Thus, the Furmans said, they would be
prejudiced by incorrect and inflated rates clearance figures. Had the
City complied with the
Court’s previous orders, they would not
have been in this position. The founding affidavit asked for the
imprisonment of
“
the [City]
represented by its City Manager and/or the Director of Johannesburg
Water
”.
[20]
The contempt application came unopposed
before this Court on 4 September 2023. The Court granted an
order (paraphrased)
—
a.
declaring the City to be in wilful contempt
of the order granted on 17 January 2023 and ordering it to
comply;
b.
interdicting (again) the respondents from
threatening to discontinue or restricting the water and electricity
supply to the property;
c.
postponing the relief regarding
imprisonment
sine die
;
and
d.
ordering the City to publish this Court
Order in writing to all its departments and employees, with the title
“ WARNING TO
COMPLY WITH COURT ORDERS”.
[21]
This Court also ordered the City to pay the
costs of the contempt application on a punitive scale.
[22]
The court order of 4 September 2023
did not lead to any action on the part of the City either.
[23]
As
a result, the Furmans amended their notice of motion in the contempt
application and filed a further affidavit on 27 November 2023.
They now sought the relief outlined in paragraph [3]
above,
which serves before me, as well as a further interdict (in roughly
the same terms as before). They sought to support the
relief in the
accompanying affidavit with the following further
[5]
allegations:
a.
The
previous order was served on the City, the City Manager and the
Director of Water Services.
[6]
b.
In response, attorneys acting for the City
requested CaseLines access. There was correspondence with these
attorneys, but ultimately
these attorneys failed to respond to the
Furmans’ demands.
c.
Evidently, the granting of further contempt
orders against the City would not afford the Furmans real relief.
d.
The inability to obtain (correct) clearance
figures and hence a clearance certificate based upon such figures
causes prejudice.
[24]
The matter came before this Court again on
26 February 2024. This Court issued the interdict (without
qualification) and
made the rest of the relief subject to a rule
nisi
,
requiring the City to show cause on 20 May 2024 why the
orders sought before me should not granted.
[25]
The rule
nisi
came before this Court on 20 May 2024.
For reasons which do not appear from the record, the Court extended
the rule
nisi
to
18 November 2024, when it was directed to be set down on
the opposed motion roll.
[26]
On 5 November 2024, the
applicants filed a further supplementary affidavit. They indicated
that the property had been
sold on 1 November 2024 and that
they would suffer loss if the City does not (speedily) issue a rates
clearance certificate.
They further indicated that, to date, the City
had made no effort to comply with the previous orders. They further
explained that
they were being charged interest on disputed overdue
amounts of between R3,500 and R4,000 per month.
[27]
The matter came before me on the opposed
motion roll for the week of 18 November. I directed that it be
heard on Tuesday 19 November.
Minutes before the hearing
was due to commence, the City filed an unsigned answering affidavit
(replaced by a signed version through
the course of the hearing).
Counsel also appeared for the City at the hearing. There was no
intimation before the morning of 19 November 2024
that the
City had briefed counsel.
[28]
Upon enquiry, the City’s counsel
indicated that he had been instructed to appear for the City five
days prior to the hearing,
on 14 November 2024. The
answering affidavit tendered no explanation for the belated
opposition to the application or
the belated instruction of counsel.
It also did not include an application for condonation. With some
understatement, it stated
as follows: “
This
affidavit is delivered late and the Municipality together with its
representatives apologise.
”
[29]
The Furmans’ counsel opposed the
admission of the City’s answering affidavit for these reasons.
I heard argument on
the issue. The City’s counsel argued that
his clients have been ordered, through the rule
nisi
,
to show cause on a particular date (being the date on the matter was
heard again). He thus argued that the City was acting within
its
rights to show cause by means of an affidavit filed on the day of the
hearing.
[30]
After hearing argument solely on the
admission of the answering affidavit, the matter stood down briefly
for the Court to consider
this issue. In the event, and on the same
day (19 November 2024), I ruled that the City’s
answering affidavit was
admitted before this Court without prejudice
to the Furmans’ right to object against the contents thereof.
(I included this
proviso, for reasons I explain below.)
[31]
I
ruled that the affidavit would be admitted, because the issuance of a
rule
nisi
seemingly
does permit the procedure – however potentially undesirable,
discourteous and wasteful – adopted by the City.
[7]
[32]
The parties then agreed that the Furmans
would file a replying affidavit and that both parties would file
heads of argument by Thursday
21 November 2024. This meant
that the matter would be heard on Friday 22 November 2024.
The City’s course
of action thus created significant
inconvenience and time pressure for all concerned.
[33]
I included the proviso in my ruling
admitting the affidavit, because much of the answering affidavit
constitutes hearsay evidence
by a legal advisor in the employ of the
City. In it, she recounts “
discussions
”
with City officials giving rise to many of her allegations, without
naming such officials. No confirmatory affidavits were
filed for such
officials.
[34]
This
practice has been deprecated by Sutherland DJP in a similar matter,
where the City was represented by the same counsel.
[8]
The Deputy Judge President indicated, in no uncertain terms, that
this practice – designed to shield officials from
accountability
– must stop.
[9]
Yet, this instruction was flouted.
[35]
In substance, the City’s answering
affidavit denies that this Court has the power to make the orders
sought. It stated that
the court could not order a clearance
certificate to be issued without the prescribed procedures in the
Systems Act having been
followed. In this regard, the City stated:
“
The law is very clear that upon
receipt of a full compliant application for clearance figures and
payment of the amount determined
by the Municipality the clearance
certificate may then be issued.
”
[36]
The City further argued that the contempt
relief against the City Manager and the Director of Water Services
was incompetent, because
those officials were not properly joined to
this application.
[37]
In addition, the City alleges that the
Furmans did not follow the proper dispute resolution procedures,
without explaining why or
what the procedure entailed. It indicated
that (perhaps in the view of the unnamed officials) the water and
electricity meters
at the property were functioning correctly. It
annexed several unsigned and seemingly incomprehensible “
reports
”
prepared by equally unnamed officials, apparently prepared after the
court order of 4 September 2023, but which was not
provided to the
Furmans before they were annexed to the answering affidavit.
[38]
Finally, the City alleges that the Furmans
owe the City
R484 753.93 in arrear water and electricity
charges as at November 2024. The answering affidavit annexed a
full payment
history of the Furmans from November 2015 onwards, which
their counsel accepted as substantially correct. The payment history
showed
fairly regular payments of amounts estimated by the Furmans
(on what basis is not explained) to be owing to the City. Latterly,
these amounted to R7,500 per month, although it was higher in
some previous periods.
[39]
On the view I take of the matter, it is
unnecessary to delve further into the issues of fact raised by the
City (on the flimsy basis
of the say-so of its legal advisor) and the
contentions in the replying affidavit that the City’s version
could be rejected
on the papers.
The City’s contempt
is not the appropriate cause of action for the relief sought
[40]
After this regrettably long recitation of
the background to this application, it is necessary to revisit the
relief the Furmans
seek, through the confirmation of the rule
nisi
.
Its essence is to set the amount owing to the City to nil Rand (as of
24 November 2023); to compel the City to issue
on demand a
clearance certificate in terms of section 118(1) of the Systems
Act; and to commit the City Manager or the Director
of Water Services
to imprisonment.
[41]
The
Furmans’ counsel did not press for an order relating to the
officials’ imprisonment at the hearing, rightly so.
Although
this was not the Furmans’ stated reason for not pressing the
issue, the prayer for imprisonment could not be granted
without these
officials being joined to the contempt application
in
their personal names
(not solely their official capacities).
[10]
[42]
There was some debate before me whether the
Furmans had likewise abandoned a prayer declaring the City to be in
(continued) contempt
of court. It is unnecessary to resolve that
debate, because that order had already been granted on
4 September 2023.
It remains in effect. In my view, the
City has not demonstrated that it had in any way purged this
contempt. Nothing further needs
to be said on the subject.
[43]
The City’s continued (and in my view
unassailable) contempt forms the cause of action for the further
substantive relief the
Furmans seek, namely the setting of their
account to nil Rand and the issuance of the clearance certificate.
[44]
In
my view, this was misguided. Contempt of court is a crime;
[11]
not a cause of action for substantive relief:
“
It
permits a private litigant who has obtained a court order requiring
an opponent to do or not do something (
ad
factum praestandum
),
to approach the court again, in the event of non-compliance, for a
further order declaring the non-compliant party in contempt
of court,
and imposing a sanction. The sanction usually, though not invariably,
has the object of inducing the non-complier to
fulfil the terms of
the previous order.”
[12]
[45]
Our
courts have made it clear that contempt of court may give rise to two
types of orders (although they may overlap): either orders
coercing
compliance with previous orders of court;
[13]
or orders punishing a contemnor for the contempt.
[14]
The Furmans seek neither. They seek substantive relief (in the form
of resetting their account and issuance of a clearance
certificate).
[15]
[46]
There
is no question that the City’s obvious and continued contempt
sullies the authority of the court, detracts from the
rule of law and
prejudices the Furmans.
[16]
Neither opprobrium nor sympathy are causes of action for substantive
relief, however.
[47]
It
should be noted that the City’s contempt is not without
consequences. A declarator to that effect has been issued; and
it may
yet ground other relief, brought in appropriate proceedings, such as
barring the contemnor from access to civil courts until
the contempt
is purged.
[17]
[48]
The
Constitutional Court has, in this regard, noted that civil contempt
could give rise to remedies other than criminal sanctions,
including
a declaratory order, mandamus and a structural interdict.
[18]
It seems to me that these remedies must be calculated to coerce
compliance with the previous court orders; not to bypass
non-compliance
by granting substantive relief. It was not argued
before me, and no case was made out, that the law should be developed
in this
regard.
The Furmans did not make
out a cause of action for the relief they seek
[49]
In seeking to reset their account balance
to nil Rand and to compel the City to issue a clearance certificate,
the Furmans seek
an order through which the court assumes the power
of the City to make determinations in terms of statute.
[50]
This can, in my view, be achieved in
proceedings in which the Furmans makes out a case (in general terms)
that,
in relation to the relief they
seek
, they had made an application to
the City (following the correct procedures); their application had
not been processed or had been
processed incorrectly; and that it is
appropriate (notwithstanding the doctrine of separation of powers)
for the Court to order
the resetting the account and/or issuing the
clearance certificate.
[51]
In
this regard, it is incontrovertible that the relationship between the
Furmans and the City “
is
contractual in nature but also has administrative and statutory
components.
”
[19]
.
Thus, in seeking relief which amounts to the Court assuming the power
to exercise the statutory functions of the City, applicants
must pay
attention to “
the
court’s function and powers in the context of the relationship
between municipalities and citizens and the understanding
that relief
sought must comply with the legal prescripts which govern this
relationship
”.
[20]
[52]
The Furmans did not do so. They acted under
the misapprehension that the City’s contempt in itself would
afford them the relief
sought.
[53]
I
considered whether it would be open to the court nevertheless to
reach the conclusion that the facts set out in the Furmans’
application (including all the preceding affidavits incorporated by
reference) would ground the relief sought – notwithstanding
that their papers contain no reference to public law remedies which
would permit the Court to exercise the City’s statutory
powers
on its behalf.
[21]
[54]
In
my view there is at least one major obstacle to doing so.
[22]
[55]
The
Furmans have never approached the City to request the relief now
sought from the court. For example, as counsel for the City
noted in
argument, the Furmans have not even applied for clearance figures,
let alone a clearance certificate. The facts underlying
this judgment
strongly suggests that the City may not respond to such a request in
the manner the Furmans desire, but it seems
to me that the Court
cannot presume what the City’s response would be. The doctrine
of separation of powers demands that
courts should not usurp the
functions of the executive
before
the latter had been given a reasonable opportunity to exercise the
power in question.
[23]
[56]
This is particularly so in circumstances
where —
a.
Section 118(1) of the Systems Act
limits the amount to be paid to a municipality to obtain a clearance
certificate to “
all amounts that
became due in connection with that property for municipal service
fees, surcharges on fees, property rates and
other municipal taxes,
levies and duties during the two years preceding the date of
application for the certificate
”;
b.
It
is trite that disputed debts flowing from consumption charges older
than three years have prescribed;
[24]
c.
Interest
on overdue amounts do not form part of the amounts contemplated in
section 118(1);
[25]
and
d.
There
is precedent for an order made
after
clearance figures had been requested and produced to reset the values
in those figures according to legal prescripts and/or to
compel
issuance of such certificate based upon corrected figures or after
payment under protest.
[26]
[57]
In
setting the requirement first to approach the City for clearance
figures or a clearance certificate, the Court is not setting
an
impossible hurdle. It seeks to ensure that the matter comes to court
in the correct posture, which allows for: a structured
debate on
whether internal remedies had been exhausted (or require to be
exhausted);
[27]
an assessment
whether the City had acted in accordance with the applicable
statutory prescripts, in particular in calculating the
outstanding
amounts; and an assessment whether the circumstances demand that the
Court should exercise the City’s statutory
powers
notwithstanding the doctrine of separation of powers.
[58]
The
Furmans’ counsel referred me to a passage from the
Constitutional Court’s judgment in
Mkontwana
to
make out a case for the relief sought.
[28]
Mkontwana
concerned
the constitutional validity of (
inter
alia
)
section 118(1) of the Systems Act insofar as it limited the
right of an owner of property from transferring that property
due to
outstanding consumption charges due by occupiers other than the
owner. The passage in
Mkontwana
on
which counsel relied, reads as follows:
“
[73]
This judgment holds that the owner of property is, in effect, obliged
to ensure that certain consumption charges
owing to the municipality
in connection with a property are paid before that property can be
validly transferred. The facts of
the cases before us show that there
is the possibility of a whole range of disputes that might arise in
the process of the application
of … s 118(1) . . . . . Some of
the disputes that may arise in connection with the consumption
charges alleged by the municipality
to remain owing in connection
with the property may concern the accuracy of the amount, whether the
sum relates to consumption
charges as contemplated by each of the
provisions and whether the amount alleged is limited to the relevant
period of two . . .
. years. In the nature of things, the resolution
of these disputes can take time. The passage of more than a
reasonable time between
the sale of property and its transfer can be
unduly onerous to both the parties to the sale. The delay could be
considerable if
the dispute between the parties cannot be resolved
without resorting to court proceedings. If municipalities keep
accurate and
full records and supply information to owners, the time
taken to resolve any disputes that may arise would be minimal in most
cases.
It must be pointed out however
that the owner who wishes to effect transfer of property reasonably
quickly in circumstances where
it is not possible to resolve a
dispute in connection with the amount of consumption charges required
to be paid to facilitate
transfer is not necessarily in an impossible
position. It may be possible, in appropriate cases, for an owner to
demonstrate that
she has a clear right to transfer, that there is a
dispute about this and that the balance of convenience justifies the
grant of
an order compelling a municipality to issue a certificate
subject to appropriate conditions pending the final determination of
court proceedings aimed at resolving the dispute.
A municipality or owner found, at the end of the day, to have been
wrong in the attitude taken at the time of transfer will have
to face
the appropriate consequences. It is therefore appropriate for all
owners and municipalities to negotiate meaningfully and
in good faith
when disputes around the application of s 118(1) . . . arise.”
(Emphasis added.)
[59]
This passage clearly refers to a situation
where there is a dispute between a property owner and a municipality
about the owner’s right to
transfer a property following a sale
.
On the papers before me, there is no such dispute as yet. The Furmans
entered into a sale agreement on 1 November 2024,
18 days
before this matter was set down for hearing. No clearance figures had
been applied for or furnished. The Furmans also
did not attempt to
make out a case in their papers for “
a
clear right to transfer, that there is a dispute about this and that
the balance of convenience justifies the grant of an order
compelling
a municipality to issue a certificate subject to appropriate
conditions pending the final determination of court proceedings
aimed
at resolving the dispute
” (in the
words of
Mkontwana
).
[60]
It seems to me, from the language employed
by the passage in
Mkontwana
,
what is envisaged is an interdict pending appropriate proceedings
aimed at resolving the dispute between the property owner and
the
municipality. It may well be possible to make out such a case, but it
was not the Furmans’ case before me, fairly assessed.
For
example, what is the “
clear right
”
they sought to rely on? In the Furmans’ case, it was only the
City’s contempt, which for the reasons already
addressed does
not ground a right to substantive relief.
[61]
It follows that the Furmans are not
entitled to the relief they sought before me, i.e. the confirmation
of the rule
nisi
issued
on 26 February 2024 and extended on 20 May 2024.
[62]
This conclusion does not detract from (or
seek to qualify, in any way) the orders made by this Court on
4 September 2023
which,
inter
alia
declared the City to be in wilful
contempt of court and which issued an interdict against disconnection
of the Furmans’ water
and electricity supply. Likewise, this
conclusion does not detract from the (same) interdict granted by this
Court on 26 February 2024,
which was not subject to the
rule
nisi.
Costs
[63]
Certain of the previous orders made in
favour of the Furmans – including the order of 24 February 2024
– had ordered
the City to pay the Furmans’ costs, in some
instances on a punitive scale. The current costs order is therefore
only concerned
with the costs of this application insofar as they
were incurred after 26 February 2024.
[64]
As I explain above, the City remains in
continued and unpurged contempt of court. The City has paid little
regard to either its
procedural obligations appropriately to defend
the matter or its substantive obligations to comply with previous
court orders.
This is not, however, enough reason to saddle the City
with yet another costs order in respect of relief sought that was
premature.
I will therefore not make an order as to costs insofar as
they were incurred after 26 February 2024.
Order
[65]
I make the following order:
a.
The rule
nisi
issued on 26 February 2024
and extended on 20 May 2024 is discharged.
b.
The application embodied in the applicants’
supplementary notice of motion dated 24 November 2023 is
dismissed without
detracting from the orders made on 4 September 2023
and paragraphs 1 and 3 of the order on 26 February 2024.
c.
Each party is to pay their own costs
incurred after 26 February 2024.
DJ SMIT
ACTING JUDGE OF THE
HIGH COURT
JOHANNESBURG
Date of hearing: 19 and
22 November 2024
Date of judgment: 3
February 2025
For
the Applicant: JM Heher instructed by Fluxmans Inc.
For
the Respondent: EN Sithole instructed by Kunene Ramalapa Inc.
[1]
This matter (in various iterations) previously served before court
on 5 March 2019, 17 January 2023, 4 September 2023,
26 February 2024 and 20 May 2024.
[2]
32
of 2000.
[3]
Which,
in essence, provides that a Municipality may not implement debt
collection and credit control measures “
where
there is a dispute between the municipality and a person [liable for
payments to the municipality] concerning any specific
amount claimed
by the municipality from that person
”.
[4]
See
section 11 of City’s Credit Control and Debt Collection
By-laws of 2004.
[5]
The
further affidavit referred to and incorporated the preceding
affidavits, including in the urgent application, by reference.
There
was no debate before me as to whether that was appropriate.
[6]
The
returns of service show that the papers were served on officials in
the City’s legal department.
[7]
Manton
v Croucamp NO
2001 (4) SA 374
(W) at 382G-383A. See also
Eichhoff
v Eichhoff
1980
(4) SA 389
(SWA) at 391H and
Bergboerdery
v Makgoro
2000 (4) SA 575
(LCC) at para 11.
[8]
Millu
v City of Johannesburg Metropolitan Municipality
[2024] ZAGPJHC 419 (18 March 2024).
[9]
Millu
fn
8 above para 45.
[10]
Matjhabeng
Local Municipality v Eskom Holdings Ltd
2018 (1) SA 1
(CC);
2017 (11) BCLR 1408
(CC);
[2017] ZACC 35
a
t
paras 101-103. In addition, paragraph 9.19 of this court’s
Practice Manual requires
personal
service
of a contempt application that contains a prayer for the
imprisonment of the respondent. See also
Body
Corporate of the Tuzla Mews Scheme v Yang
[2001] 3 All SA 427
(W) at 430;
Millu
v City of Johannesburg Metropolitan Municipality (supplemental
judgment)
at
para 8
.
[11]
Fakie
NO v CCII Systems (Pty) Ltd
2006 (4) SA 326
(SCA);
[2006] ZASCA 52
at para 6;
Matjhabeng
fn
10
at
para 50
.
[12]
Fakie
fn 11
at para 7.
[13]
The
relief sought by the Furmans (resetting their account and issuing
the clearance certificate) do not seek to coerce compliance
with the
previous orders. They seek to bypass such non-compliance.
[14]
Secretary
of the Judicial Commission of Inquiry into Allegations of State
Capture, Corruption and Fraud in the Public Sector including
Organs
of State v Zuma
2021 (5) SA 327
(CC);
2021 (9) BCLR 992
(CC);
[2021] ZACC 18
at
paras 47 and 54-55.
[15]
It
was not argued before me that issuing the substantive relief would
constitute punishment for the City’s contempt. It
seems, in
any event, that such punishment usually takes the form of a fine or
imprisonment:
Cape
Times Ltd v Union Trades Directories (Pty) Ltd
1956 (1) SA 105
(N) at 120D–E. See also
Burchell
v Burchell
[2005] ZAECHC 35
(3 November 2005) at para 27 for the possibility of
other civil sanctions.
[16]
Compare
Fakie
fn 11
para 8.
[17]
Fakie
fn 11 at para 16 referring to
Burchell
fn
15
at
para 27. See also
Matjhabeng
fn
10
at
para 66. The Furmans did not seek an order barring the City from
being heard until it has purged itself from its contempt.
[18]
Matjhabeng
fn
10
at
paras 53-54 and para 67.
[19]
Joseph
v City of Johannesburg
2010 (4) SA 55
(CC);
2010 (3) BCLR 212
(CC);
[2009] ZACC 30
;
Body
Corporate of Willow and Aloe Grove v City of Johannesburg
[2023] ZAGPJHC 1451 para 94.
[20]
Body
Corporate of Willow and Aloe Grove
fn
19 para 1. See also paras 6 and 19.
[21]
See
e.g.
Trencon
Construction (Pty) Ltd v Industrial Development Corporation of South
Africa Ltd
2015 (5) SA 245
(CC),
2015 (10) BCLR 1199
(CC);
[2015] ZACC 22
at
para 32.
[22]
I
express no view on whether this is the only obstacle. There may well
be others.
[23]
Compare
Body
Corporate of Willow and Aloe Grove
fn
19 at para 105.
[24]
See
Argent
Industrial Investment (Pty) Ltd v Ekurhuleni Metropolitan
Municipality
2017 (3) SA 146 (GJ).
[25]
Moatshi
v City of Tshwane Metropolitan Municipality
[2024] ZAGPPHC 331 (11 April 2024) at para 38.
[26]
YST
Properties CC v Ethekwini Municipality
2010 (2) SA 98
(D);
Akasia
Road Surfacing (Pty) Ltd v City of Tshwane Metropolitan Municipality
[2023] ZAGPPHC 668 (10 August 2023) para 55;
Sienaert
Prop CC v The City of Johannesburg Metropolitan Municipality
[2021] ZAGPJHC 490 (23 September 2021).
[27]
There
is a large body of case law, in this court and others, as to whether
a cognisable “
dispute
”
exists between a property owner or occupier and a municipality
regarding consumption and other charges and which would
have the
effect of suspending a municipality’s right to enforce debt
collection and credit control measures. A recent judgment
which is
of considerable assistance is
Ackerman
v City of Johannesburg
[2024] ZAGPJHC 334 (5 April 2024). While these issues were
extensively debated before me, they are ultimately not relevant in
light of my conclusion, and I prefer not to express views in that
regard.
[28]
Mkontwana
v Nelson Mandela Metropolitan Municipality; Bissett v Buffalo City
Municipality; Transfer Rights Action Campaign v MEC,
Local
Government and Housing, Gauteng (Kwazulu-Natal Law Society and
Msunduzi Municipality as amici curiae)
2005 (1) SA 530
(CC);
2005 (2) BCLR 150
(CC);
[2004] ZACC 9.
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