Case Law[2024] ZAGPJHC 419South Africa
Millu v City of Johannesburg Metropolitan Municipality and Another (25039/2021) [2024] ZAGPJHC 419 (18 March 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
18 March 2024
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# South Africa: South Gauteng High Court, Johannesburg
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## Millu v City of Johannesburg Metropolitan Municipality and Another (25039/2021) [2024] ZAGPJHC 419 (18 March 2024)
Millu v City of Johannesburg Metropolitan Municipality and Another (25039/2021) [2024] ZAGPJHC 419 (18 March 2024)
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sino date 18 March 2024
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case no: 25039/2021
1.
REPORTABLE:
yes
2.
OF
INTEREST TO OTHER JUDGES: yes
In
the matter between:
PETER
TANYA MILLU
Applicant
And
CITY
OF JOHANNESBURG METROPOLITAN
First
Respondent
MUNICIPALITY
CITY
POWER SOC LTD
Second Respondent
JUDGMENT
This
judgment is delivered by upload to the digital data base of the Court
and by transmission email to the parties on 19 March
2024 at 10h00.
Sutherand
DJP:
[1]
The applicant is a ratepayer and owner of a house within the area of
jurisdiction of the respondent, the City of Johannesburg,
(the City).
The application is for a temporary interdict, and subsidiary relief,
pending a final reconciliation of an account for
services rendered by
the City to the applicant’s home. The application before
me is to strike out the City’s
defence, including its answering
affidavit.
[2]
The dispute is about whether or not the accounts of the City rendered
to the applicant for electricity supplied to the
applicant’s
home are accurate. Overshadowing that core dispute is an egregious
tardiness on the part of the City and its
legal representatives,
about which more shall be said hereafter.
[3]
The main application was launched on 21 May 2021. This hearing takes
place on 4 March 2024, almost three years later.
[4]
The City, having served a notice to oppose about two months late,
eventually filed an answering affidavit on the eve of
an application
brought to seek default judgment set down on 6 January 2022, a delay
of approximately 8 months. Naturally, this
nick-of-time-act
precipitated a postponement. No condonation was sought, nor is it
apparent any thought was given to that step.
[5]
The applicant then brought an application to strike out the answering
affidavit for want of condonation, but then acquiesced
in the delay
and in September 2023 withdrew it for the pragmatic purpose of
accelerating progress in the litigation. A replying
affidavit was
thereafter filed by the applicant on 15 September. This was a few
days late. This lateness was thereupon pounced
upon by the City who
insisted a condonation application be brought, a plainly shameless
demand given its own extraordinary delay
in filing its answering
affidavit. The applicant then incurred the costs of the condonation
application to which no serious opposition
could conceivably have
been offered.
[6]
The case should have then moved to a hearing. The practice of this
Division requires both parties to file heads of argument
prior to
seeking a set down date. The applicant filed heads. The respondent
did not.
[7]
As a result, in accordance with the practice of the Division, the
applicant sought an order in the Special Interlocutory
Court to
compel the delivery of heads of argument from the respondent. The
relevant part of the order granted, in the presence
of the
respondent’s legal representatives, on 2 October 2023 is thus:
‘
(1)
The respondents shall deliver their heads of argument, practice note,
chronology and list of authorities within 10 days from
service of
this order.
(2)
Failing compliance with (1) the applicant shall be entitled to
approach this honourable court to have the respondent answering
affidavit and/or defence struck out.
(3)
the respondents are granted leave to deliver a supplementary
affidavit within 5 days of service of his order.’
[8]
This order was thereafter served on the City on 15 November 2023.
Compliance was due on 22 November 2023. There was no
compliance
within that period or at all up to the day of this hearing, five
months later. No explanation is on record for non-compliance,
still
less an application for condonation.
[9]
As a result of this non-compliance, in line with the relief granted
on 2 October 2023, an application was launched to
strike out the
defence of the City. When that case came before the court, the
respondent’s representatives opposed the matter.
Dippenaar J
ordered thus:
(1)
‘The application to strike out is postponed to the SIC on the
roll of 4 March 2024.
(2)
The respondents shall deliver an answering affidavit, if any, on or
before 29 February 2024 the applicant shall deliver
a replying
affidavit on or before 29 February 2024.
(3)
Both parties shall deliver heads of argument on or before 29 February
2024.’
[10]
The applicant filed heads of argument timeously. The City filed no
answering affidavit. The city delivered brief heads
of argument in
respect of the striking out application after the prescribed
deadline.
[11]
On Monday 4 March 2024, the matter then came before me. After the
hearing commenced, my attention was drawn to the fact
that the
respondent had, whilst the case was being heard, uploaded a
supplementary affidavit. No application was made to me to
do so, and
no thought had been given to the need for leave to do so nor the need
for condonation in not adhering to the order of
2 October 2023 as
cited above. Moreover, no heads of argument on the main case were
uploaded. From the bar, counsel for the City
told me that he had
settled heads of argument in the main case on Friday 1 March, ie one
court day before this hearing into the
striking out of the defence.
Why this document was not uploaded was not explained, still less why
the question of condonation was
not contemplated.
The
case advanced to strike out the defence
[12]
The practice directives of the Gauteng Division of the High Court
established a Special Interlocutory Court (SIC).
[1]
Its function is to provide swift relief to overcome an adversary’s
obstructiveness which improperly delays the orderly progress
of
litigation.
[13]
The relevant provisions relating to the SIC, in the Directive 1 of
2021, which were applicable at the relevant time are:
‘
CHAPTER
8: THE TRIALS INTERLOCUTORY COURT: ROLE AND FUNCTIONS, APPLICABLE TO
ALL CATEGORIES OF MATTERS
[2]
33.[There
is established a] Motion Court, the [Special] Interlocutory Court,
dedicated to interlocutory matters in Civil Trials
to address issues
of non-compliance with this Directive, the practice manual of the
Court and any Rule of Court,….
34….
35.In
an application to strike out a non-compliant Defendant’s
defence, such application shall be set down on notice and filed
before noon on a Thursday of a week, one clear week before the week
in which the matter is set down.
36.…...
37.…..
38.Any
party who, having reason to be aggrieved by the other party’s
neglect, dilatoriness, failure or refusal to comply with
any Rule of
Court, provision of the Practice Manual or provision of this
Directive, must utilise the Special Interlocutory Court
to compel
compliance from the delinquent party.
39.Furthermore,
any breach by a Legal Practitioner to promote and advance the
efficacy of the Legal Process as stipulated in paragraph
60.1 of the
Code of Conduct for Legal Practitioners may be referred to the Legal
Practice Council for investigation into possible
professional
misconduct.
[3]
39…..
40
Among the matters which this court will deal with will be:
40.1
the failure to deliver timeously any practice note or Heads
of Argument that are due,
40.2
a failure to comply with Rule 36,
40.3
a failure to sign a Rule 37 minute promptly,
40.4
a failure to comply timeously with any undertaking given in a
Rule 37 conference,
40.5
a failure to secure an expert timeously for an interview with
a patient,
40.6
a failure to secure a meeting of experts for the purpose of
preparing joint minutes,
40.7
non-compliance with any provision of this directive,
40.8
any other act of non-compliance in respect of an obligation
that rests upon a party which may imperil expeditious progress
of a
matter may be the subject matter of an application to compel; the
list is not limited.
41
In a proper case, punitive costs (including an Order disallowing
legal practitioners’ from charging a fee to their clients)
may
be awarded where recalcitrance or obfuscation is apparent and is the
cause of inappropriately delaying the progress of any
matter.
’
(Emphasis added)
[14]
That text of the Directive was amplified with effect from 26 February
in a revision, contained in Directive 1 of 2024,
which reads thus:
‘
27.10:
An application in the SIC shall not be postponed or deferred because
it becomes opposed since that would have the effect
of undermining
the very function of the SIC. Opposed matters shall therefore
be disposed of within the week in which they
are set down. The
opposing litigant may file such papers to succinctly set out the
basis of the opposition as the presiding Judge
may permit.
27.11:
To prevent unnecessary delays, additional costs, and a waste of
court resources caused by non-compliance with orders handed down
in
the SIC, a party may seek an order in the SIC that provides for the
ipso facto
striking out of the claim or defence
in the event that the other party fails to comply with an order
granted by the SIC within a
specified time, provided that-
27.11.1
The order has been served on the delinquent party, and
27.11.2
A rule of court provides that such non-compliance entitles
an aggrieved party to apply to strike out the claim or defence.’
(Emphasis
added)
[15]
The applicant relies on the order of 2 October 2023, cited above, to
seek the relief.
[16]
It is necessary, first, to deal with the effect of an order of court
and the failure of a litigant to comply. Self–evidently,
whether or not there is a contempt depends on the fact-specific
circumstances. Not every non-compliance with an order constitutes
a
contempt of that order. In this case, however, in my view, the only
reasonable inference to draw from the facts is that there
has been an
egregious contempt of an order of this court. Moreover, a contempt
which is calculated not only to stimy the adversary
by inordinate
delay, but also constitutes an abuse of the court process. Delay has
characterised the City’s conduct from
the beginning of the
litigation. In particular, the elapse of a period of over 5 months in
the face of an order court to file the
heads of argument and still
not file the heads is especially egregious. Moreover, there is no
explanation and, in particular, no
condonation application, nor,
indeed, even the tender of a condonation application in regard to the
non-compliance with the order
of court.
[17]
It is trite that since ancient times it has been recognised that
courts enjoy an inherent jurisdiction to protect the
integrity of the
court process. The sheer arrogant indifference of the City and its
dishonourable behaviour is manifest. Organs
of state are expected to
behave honourably. Apparently, the City expects that it can at the
same time disrespect the fundamentals
of the litigation system and
continue with impunity to participate in that litigation system to
protect its rights. Such behaviour
cannot be tolerated precisely
because it is calculated to abuse the process of the court.
[18]
The striking out relief is resisted by the respondent, relying on
three main contentions. These are dealt with in turn.
Argument
No 1:
[19]
It is argued that a strike out of the defence is inappropriate
because the opportunity existed for the applicant to set
down the
matter on the opposed motion roll in the absence of the City’s
heads of argument. The intellectual premise for this
contention is
obscure. It ignores the fact of non-compliance with an order of the
court. This argument of the City, as do the other
contentions dealt
with hereafter, wholly fails to grasp the gravity of the manifest
defiance of the court order. In this case the
critical issue is not a
mere failure to comply, it is the pernicious expectation of impunity
with which the City has defied the
order of court.
Argument
No 2:
[20]
Second, the contention is advanced that there is no Rule of Court
which explicitly sanctions a strike-out of a defence
because of the
failure to file heads. For this submission, the revised text in
paragraph 27.1.2 of the SIC procedure, cited above,
that became
effective on 26 February 2024, is invoked. The argument overlooks the
fact that the caveat was absent from the Directive
applicable during
the material time that the application to strike out was being
processed; although in these circumstances it
is immaterial which
version of the SIC procedure applies. Also, the respondent’s
contention ignores the fact of the order
of court having been defied.
[21]
More importantly, the argument misconstrues the import of the
provisions of para 27.1 and 27.2 of the revised Directive.
The text
does not mean that a rule of court specifically stating that a
non-compliance with a requirement to file heads of argument
is a
necessary precondition to a strike out of a defence. Rather, it means
that circumstances exist, as contemplated by the Rules
of Court,
which would justify a striking out of a defence. Rule 30A (1)
provides:
(1)
Where a party fails
to comply
with these rules or with
a request made or notice given pursuant thereto, or
with an order
or direction made by a court
or in a judicial case management
process referred to in rule 37A, any other party may notify the
defaulting party that he or she
intends, after the lapse of 10 days
from the date of delivery of such notification, to apply for an order
—
(a)
that
such rule, notice, request, order or direction be complied with; or
(b
)
that the claim or defence be struck out.
(emphasis added)
[22]
The clear import of this Rule of Court is that it embraces the order
of 2 October 2023, as cited above.
Argument
no 3:
[23]
The third argument engages with the nature of the remedy of striking
out a defence
per se.
Incontrovertibly, an order that a
defence be struck out is a discretionary remedy. As such, a court
must exercise a judicial discretion
and may decline to exercise the
power to strike out in an appropriate fact-specific case.
[24]
This led to the invocation, on behalf of the City, of the decision by
Wilson J in
Capitec Bank Ltd v Mangena [2023] ZAGPKHC 225 (16
March 2023.)
The contention advanced is that this decision
is authority for the proposition that a striking out of a defence
cannot be
granted in application proceedings unless, if, upon a
scrutiny of the respondent’s answering affidavit, no defence
exists.
This contention exaggerates and distorts what was
really held in that case.
[25]
In
Capitec,
the applicant bank had taken default judgment
against Ms Mangena, the respondent, a homeowner, who had defaulted on
a mortgage
bond, for the outstanding balance due and payable. The
order did not include making the property executable. Ms Mangena then
brought
a rescission application founded on the allegation that she
had not received the summons. Ms Mangena failed to file heads of
argument
in her rescission application. The Bank brought an
application to strike out Ms Mangena’s claim to a rescission,
based on
that default. All of these machinations took place in the
opposed motion court. The applicant bank invoked para 9.8.2 (12) of
the
Practice Manual of the Johannesburg High Court. Wilson J in
Capitec
held:
[2]
The basis for the application was said to be section 9.8.2 (12) of
this court’s practice manual. That section of the practice
manual authorises an application to this court for an order
compelling a party who has not timeously filed heads of argument in
an opposed motion to file their heads within a period of not less
than 5 days, failing which “the defaulting party’s
claim
or defence [will] be struck out”. The provision appears to be
inspired by similar sections of the Uniform Rules of
Court which
entitle a party, in appropriate circumstances, to apply for the
striking out of a defence or the dismissal of a claim.
For example,
Rule 35 (7) of the Uniform Rules of Court provides that a party that
is delinquent in making discovery of documents
may have their claim
or defence struck out.’
[26]
The sole question that the court in
Capitec
had to decide was
whether or not
the failure to file heads of argument
was an
appropriate premise upon which to strike out the applicant’s
case for the rescission.
There had not been a prior order
compelling Ms Mangena to file heads within a specified period and
she was axiomatically not in default of compliance with such a
court
order, still less in contempt of an order of court. This is a
material distinction from the present case.
[27]
In
Capitec,
the Court’s ultimate decision was that the
application of the bank to dismiss the rescission application should
fail and
a further order was made sending the rescission dispute to a
hearing on its merits. In the course of reaching this conclusion, two
principled propositions were articulated.
[28]
First, it was noted that in motion proceedings the affidavits
constitute both pleadings and evidence. This broad proposition
is
per
se
uncontroversial. However, the question of status of the
‘evidence’ in the affidavits and considerations of when
regard
could properly be had to the contents, at different stages of
the litigation, were not addressed in the judgment; plainly, argument
had not been addressed to the court on this aspect and it was
therefore not considered.
[29]
The second proposition is that a court that grants a discretionary
remedy must do so upon a holistic appreciation of
all that is before
the court. On that premise the court had regard to the defence set
out in Ms Mangena’s affidavit and made
a qualitative assessment
of the prospects of success.
[30]
The critical passages in the
Capitec
judgment read thus:
‘
[5] The strike-out
and dismissal procedures are particularly well-suited to action
proceedings because no evidence of the claim
has generally been led
at the time they are engaged. In striking out a claim or defence, a
court does no more than bring an early
end to a trial action because
of a party’s persistent failure to observe the rules. In doing
so, the court need not have
regard to the merits of the action, or
the strength of the claim or defence to be struck out.
Indeed, the
court cannot do so
,
because it will not have seen or heard the
evidence
necessary to sustain the claim or defence to be
dismissed or struck out.
[6] Motion proceedings
are different. Every affidavit in motion proceedings contains both a
pleading and the evidence necessary
to sustain it. When a court is
asked to dismiss a claim o
r strike out a defence
for failure to file heads of argument promptly
,
it does so once all the evidence thought necessary to sustain the
claim or defence has been placed before it
.
It seems to me that, in these circumstances, a court is not at
liberty simply to ignore the affidavits and to dismiss a claim
or
strike out a defence merely because one of the parties has failed to
take an important procedural step.
The
court must go further, and satisfy itself that, on the evidence
before it, the claim or defence sought to be dismissed or struck
out
has no intrinsic merit.’
(Emphasis added)
[31]
It is argued on behalf of the applicant that although it is truism
that an affidavit is composed of both pleadings and
evidence, that
statement requires an important qualification: the evidence in the
affidavit is not yet ‘received’ by
a court
qua
evidence until the matter is heard on the merits and therefore a
court entertaining an interlocutory application does not have
any
‘evidence’ before it but rather, what is in the affidavit
is simply
potential
evidence, that at the main hearing, may or
may not be relied upon. Accordingly, this thesis means that a court
hearing an interlocutory
application cannot legitimately have regard
to the contents of the affidavit for the purpose of an assessment of
the merits of
a defence. It is argued that there is authority for
this proposition.
[32]
In
Elher (Pty) Ltd v Silver
1947 (4) SA 173
(W),
the court was
engaged with an application to strike out various parts of affidavits
filed to resist an ejectment, on the grounds
that they were
irrelevant and hearsay. The application to strike out the passages
was refused. At p 176 -177 the court held:
‘
After
all, what is the real nature of the objection? This is not an
objection to a pleading, it is an objection to evidence which
is
proposed to be tendered to the Court that hears the application
.
How can a Court which is not hearing the application disallow
evidence which it is proposed to tender later on as irrelevant to
the
merits of the dispute? The Court which ultimately decides the
application may have quite a different view as regards the relevancy
of some of the passages when all the evidence is presented to it and
the matter has been fully argued.
A
great waste of time, energy and expense is involved in the procedure
which Mr.
Miller
has followed. First of all, there
must be a full-dress argument or, at any rate, very considerable
argument on the merits
in order to enable the Court to decide whether
the passages objected to are or are not relevant. Then a decision as
regards the
relevancy of various passages must be given. Then more
evidence is to be filed by the petitioner, and finally the merits
must be
argued again before that Court which hears the application. I
do not agree that Mr.
Miller's
client is entitled,
at this stage, to a decision on this issue. It is evident that what
the petitioner is really seeking is
legal advice from the Court. The
Court asked Mr.
Miller
why he himself could not
advise his client to ignore those allegations which he considered
were irrelevant or based on hearsay
evidence, and he indicated that
if his advice turned out to be erroneous his client would be at a
disadvantage. The petitioner
wishes to be told by this Court that he
need not deal with certain facts alleged, but this Court is not
trying the merits of the
dispute and those facts may turn out to be
important when all the evidence is before the Court and full argument
has been heard,
or may be so regarded by the Court that does
ultimately hear the application. There is authority for this view. In
the case of
Gilbert v Comic Opera Company
(16 Ch. D.
594)
the identical question arose and BACON, V.C., said:
.
. . Until the hearing I cannot tell whether the affidavits objected
to are really in reply or not. I have nothing to guide me
at this
stage of the proceedings. If they are not strictly in reply the Court
will not regard them at the hearing, but that is
a question which
cannot now be decided.'
The
head-note of the case reads:
'Affidavits
filed by a plaintiff in reply will not upon interlocutory motion be
ordered to be taken off the file upon an allegation
by the defendant
that they are not confined to matters strictly in reply: though at
the hearing, if it should turn out to be so,
the Court will not
regard them or may give leave to the defendant to answer them.'
It
is true that this was a decision on procedure under rules which
differ from our rules, but the ground for the refusal of the
Court to
entertain objections of this character before the hearing is one of
general principle. Furthermore, at this stage of the
proceedings the
contents of those affidavits are not tendered as evidence. The
evidence is merely being collected in the form of
affidavits to be
tendered later on to the Court that hears the application. It follows
from such cases as that of
Kingswell v Argus Co., Ltd
.
and
Kingswell v Robinson
(1913, W.L.D. 129)
that the
contents of such documents as affidavits are not before the Court as
evidence until the actual hearing of the case.
The
affidavits objected to are not now before me as evidence in the
application; they are merely documents filed with the Registrar
to be
used later as evidence, when the application is heard.
Two
illustrations will show some of the inconvenience involved in the
procedure now attempted to be followed: Mr.
Miller
contends
–
inter alia
- that certain evidence of
alleged duress does not amount to duress and he asks the Court to
decide that as there is no proper
evidence of duress all the evidence
directed to the proof of duress should be struck out. The Court which
is to decide this is
not hearing the application, but merely a
preliminary objection to evidence, nevertheless it is asked to decide
some of the issues
raised in the main application. Mr.
Miller
also
contends that a certain contract which is in issue between the
parties is a contract in writing and that certain evidence
tendered
in relation to that contract is inadmissible and should be struck out
because it seeks to vary the terms of the contract.
Mr.
Isaacs's
reply is that the contract is
ambiguous, that it is partly in writing and partly oral, and that in
any case the evidence objected
to does not contradict the writing but
explains it. These are all issues that will have to be decided by the
Court that hears the
application, but Mr.
Miller
claims
the right to have them decided in advance by the expedient of
applying to strike out certain evidence. Such a practice
would
produce grave difficulties and I am unable to sanction it by ordering
the deletion of any of the passages objected to, whether
on the
ground that they are irrelevant or that they are hearsay evidence.’
(Emphasis
added)
[33]
It is further argued that this passage from
Elher
was approved
in a footnote to a passage in
Helen Suzman Foundation v President
RSA
2015 (2) SA 1
(CC) at para [227]
which reads:
‘
It
is necessary to emphasise some obvious considerations at this stage.
In an application to strike out evidence on affidavit, neither
the
eventual veracity of the evidence nor the prospects of success of the
main application are at issue. This is a trite proposition
. The
only question in a striking-out application is whether the
evidence is admissible
. The truth of
the evidence plays no role at this stage; it is only determined at
the end of the matter if the evidence is admitted.’
(Emphasis
added)
[34]
It does not seem to me that
Elher’s
case or the
Suzman
Foundation
case establish a basis for the main contention
advanced on behalf of the applicant; ie, that the contents of the
evidence in affidavits
may not be examined at the interlocutory stage
in an application for the striking out of the defence. The gravamen
in both decisions
was the removal of evidential material, not the
striking out of a defence. There is authority, however, in the
Helen
Suzman Foundation
case that a court should not assess the
prospects of success of a defence at the interlocutory stage. In
Capitec
the court did so, presumably because this point was
not ventilated in that hearing and the attention of the Judge as not
drawn
to it. However, on the facts it is a harmless oversight because
the authorities, as I read them, require a lower bar not a higher
one, ie: is what is in the affidavit admissible? Even that requires a
court to consider the contents of the affidavit.
[35]
The more significant proposition in
Capitec
is that a court
enjoys wide scope for the exercise of a judicial discretion. The
formulation of Wilson J in para [5] of the Capitec
Judgment has been
cited above. I would articulate what I understand his dictum to be in
more universal terms: a court shall never
exercise a discretion that
is inconsistent with the interests of justice. The veritable plethora
of authority from the Constitutional
Court judgments makes that
crystal clear. A holistic approach is therefore an axiomatic
corollary.
[36]
It was also argued that
Gefen and Another v De Wet No
2022 (3) SA
465
(GJ),
a decision referenced in
Capitec,
which held
that, in the context of the PIE Act, a court must examine everything
before ordering an eviction, is distinguishable
because the wider
scope of the courts’ power in such a case is expressly provided
for in section 4 (7) of the PIE Act. I
agree that on those grounds
the
Gefen
case is distinguishable. However, I do not read the
Capitec
judgment as relying on
Gefen
as authority for
the general proposition of a holistic approach to exercising a
discretion; rather the
Gefen
decision is alluded to as an
example of the propriety of a wide scope, a factor which seems to be
in keeping with constitutional
norms.
[37]
Turning to the facts, the question can be asked whether the interests
of justice are served by granting or refusing the
striking out of the
defence as a sanction for the defiance of a court order. In my view,
the manifest answer is that the interests
of justice are served by
the granting of the relief. I deal with the relevant considerations.
37.1 The defiance
of the court order is a serious affront to the process of court. This
proposition requires no elaboration.
37.2 The abuse of
the process of court which this defiance causes is intolerable. The
SIC procedure serves to protect the
process of court and litigants
are on notice as to the accountability which the court shall exact
for failures and defiant conduct.
37.3 The nature of
the relief sought in the main application is not final, inasmuch it
seeks merely to freeze the
status quo
whilst the two parties,
in accordance with the credit control regulations of the City,
achieve clarity on the sum properly due
and payable by the applicant.
Indeed, the relief is entirely procedural in character, and the
consequence of granting the order
sought shall not result in the City
forfeiting a single cent of what applicant might owe.
37.4 The
inadequacy of the respondent’s engagement with the case
advanced by the applicant is evident; the critical
jurisprudential
issue being whether the City has complied with its own regulations.
The allegations of its failure are not rebutted
but are evaded in the
answering affidavit. Shorn of the minutiae, the answering affidavit
whinges that the reconciliations are
now correct and it is up to the
applicant to point out an error, if one exists. No account of the
progress through the debt control
regulations is offered in the
answering affidavit, an aspect belaboured in the applicant’s
case.
[38]
Accordingly, it is appropriate to strike out the defence as a
sanction for defiance of the court order, the interests
of justice
not being compromised and the process of court requiring protection
from abuse.
[39]
Further, it is senseless to require the applicant to go through a
ritualistic application to set the matter down again
to obtain the
main order sought. It too shall be granted at this stage and thereby
arrest the unnecessary running up of yet more
costs.
The
delinquency of the City in the conduct of this case
[40]
The abusive manner in which the City has behaved causing undue delay,
has already been traversed. Who is responsible
for this sustained
pattern of utter disdain for the process of Court? What are
appropriate sanctions?
[41]
To determine these questions, I instructed counsel for the City to
file an affidavit and argument to inform me why the
pattern of delay
for the contempt of the court order of 2 October 2023 should not be
attributed to the attorney of record and counsel
briefed in the
matter. Moreover, if officials of the City were responsible, rather
than the legal representatives, I required that
the officials be
identified. In this regard, I required to be addressed on why the
City should not be ordered to pay attorney and
client costs and/or
the attorney of record be required to pay the attorney and client
costs de bonis proprius, and further why
an interdict should not be
issued that the legal representatives be forbidden to recover fees
for the work done on this case. I
also alerted counsel
for the City to the recent decision in the Constitutional Court,
Ex
Parte Minister of Home Affairs
2024 (2) SA 58
(CC).
In that case,
from para [90], the court deals with the abuses experienced in the
process and concludes in making a punitive order
similar to the order
I directed counsel to
address me on.
[42]
I received a single response penned by the attorney of record, Mr
Hugo Baloyi. The affidavit is on behalf of the firm
attorneys of
record and their counsel. What it contains is superficial. The
contents are, is essence, no more than a generic description
of their
duties to the client and a
plea ad misericordiam
that a costs
penalty against them would be unduly onerous because of the relative
junior standing in the legal profession.
[43]
The affidavit does not say when they were instructed by Mr Ngwana,
the City’s legal advisor to settle an answering
affidavit or to
draft heads of argument. When referring to the interaction with the
officials of the City, from who instructions
on the facts could be
obtained, he simply says the ‘client’ was consulted and
that otherwise their link to the city
was the legal advisor Mr
Ngwana.
[44]
What could these scraps mean? Was the only real contact with the City
through Mr Ngwana? Mr Ngwana is the deponent to
the affidavits. I was
referred to other decided cases about disputes over charges and in
those matters too, the deponent on behalf
of the City is Mr Ngwana.
[45]
The practice of requiring a legal advisor to depose to the affidavits
is both a clue to the cause of the debacle and
a manifestation of the
City’s reckless attitude. It should be self-evident that
the City’s legal advisor has
no personal knowledge of the
accounting. He cannot ever be more than a conduit. His affidavit
craftily states that he makes it
based on the information provided to
him, deftly evading the typical formula that the deponent has access
to and control over the
documents
qua
evidence. From whom the
facts were truly obtained is never said, and in this wholly
unsatisfactory manner, the anonymous officials
who compose the
accounts are shielded from accountability. If Mr Ngwana is ever be
cross-examined on his affidavits it seems likely
that embarrassment
would soon follow. It must be stated bluntly that the affidavits in
litigation should be from persons who administer
the accounts. The
practice of a legal advisor being a deponent to facts of which he has
no personal knowledge must stop.
[46]
Despite the paucity of actual information, it is nevertheless
reasonably certain that this case is yet another neat example
of the
attorney and counsel being starved of substantive instructions from
the officials who have the substantive knowledge. It
also explains
the bland and evasive contents of the answering affidavit: ie, an
inability by Mr Ngwana to get real instructions.
One may speculate
that Mr Ngwana, dutifully, is driven to instruct the attorney and
counsel to come up with what they can and so
they busk along:
ergo,
the product is an answering affidavit brimming with rhetoric, rather
than meeting the applicant’s case head on.
[47]
Accordingly, in my view inaction by the legal representatives does
not appear to be the cause of the inordinate delay
and defiance.
However, the sycophantic deference to such abuses by the City by the
legal representatives is intolerable. Whether
or not an attorney,
placed in such an invidious position, should soldier on to do what he
can ethically do for a client or should,
ethically, withdraw as
attorney of record is an aspect of professional practice which ought
to be on the minds of professional
legal practitioners if they seek
to preserve decent reputations. In this case, a slavish
commitment to the client’s
interests wholly outweighed the
legal practitioner’s duty to the court and to the process of
court. The legal practitioners
are in breach of their
professional duties, as expressly stipulated in the Code of conduct
for Legal Practitioners, articles 60.1
and 60.1:
‘
[60.1]
A legal practitioner shall not abuse
or permit the abuse of
process
of court….and shall act in a manner that shall
promote and advance efficiency of the legal process.
[60.2]
A legal practitioner shall
not deliberately protract
the
duration of a case before a court or tribunal.
(Emphasis
added)
[48]
As for the officialdom of the City, the identity of the persons who
should be held accountable remains concealed. The
practice of
officials waging litigation with ratepayers’ money can perhaps
be arrested, if in future, litigants suing the
City for
non-performance cite the officials, who are allegedly delinquent, in
their personal capacities and, in addition, as a
matter of course,
cite the City Manager in his personal capacity as the official who
bears ultimate responsibility. The cavalier
attitude of public
officials merrily fighting a case with the public’s money
cannot be allowed to flourish.
[49]
In the affidavit of the attorney of record the only official
identified is the City’s legal Advisor Mr Ngwana.
In a prior
judgment of this Court Mr Ngwana had been warned of the risk of
punitive costs being awarded for dereliction of duty.
[4]
That risk has now materialised.
[50]
I require, in respect of Mr Ngwana, to be told on affidavit why he
should not personally pay a portion of the costs awarded
to the
applicant. Such representations must be uploaded by no later than 10
days after this judgment is delivered, whereupon I
shall amplify and
amend the order as to liability for costs, if appropriate to do so.
[51]
The City must pay the applicant ‘s costs on the attorney and
client scale. The attorney of record for the City
is interdicted from
recovering a fee from the City.
[52]
This judgment must be brought to the attention of the Mayor, the City
Manager, the head of revenue collection and the
chief legal advisor.
The
Order
(1)
The first and second respondents’ answering affidavit and
defence to the main application are struck out.
(2)
The first respondent is ordered and directed reverse all estimated
charges on the account rendered by the first respondent
under account
number 2[…] (“the account”), in respect of
electricity and charge the applicant by means of actual
readings
taken from the electricity meters: 383639, 836804, 836804, (“the
original meters”), and 14305995038, (“the
old meter”),
from January 2018 to date in respect of the consumption of
electricity on the property being 4[…] C[…]
Avenue E[…]
H[…] Extension 1, (“the property”).
(3)
For the purposes of paragraph 2. above, the term reverse may include
any general accepted accounting practice to be used
to correct the
account in a manner which will correct the account to reflect the
actual electricity consumption at the property.
(4)
In consequence of the aforesaid correction as contemplated in
paragraphs 2 and above, the first respondent must reverse
all the
interest and penalty charges rendered on the account in relation to
the inaccurate estimated charges for electricity as
per the
applicable tariff to coincide with the actual electricity charges to
be rendered. The first respondent must further reflect
all the
payments made by the applicant on the account.
(5)
The first respondent is directed, and has the onus, to prove its
charges rendered on the account and the first and second
respondents
must provide the applicant with all the job cards evidencing the
actual electricity meter readings taken by the first
and second
respondents for the original and old meters from the date that the
said meters were installed on the property to the
date that they were
removed, and the applicable tariff charged for the consumption of
electricity which tariff must be provided
in writing.
(6)
The first respondent must provide the corrected account reflecting
the accurate electricity charges and the documents
required as
contemplated in paragraphs 2 to 5 above, with 60 (sixty) days,
(including weekends and public holidays), from the date
of this order
being served on the Respondents by delivering a copy thereof by email
to k[…] or by hand at Kaveer Guiness
Incorporated, G[…]
F[…], Z[…] P[…], 3[…] O[…] K[…]
Road, B[…].
(7)
The first respondent is to provide the applicant with a written
report explaining each and every entry on the applicant’s
account from January 2018 to date of this order with reference to the
job cards and the applicable tariff applied.
(8)
The reports referred to in paragraph 7 above shall be delivered
within 10(ten) days, (including weekends and public holidays),
of
delivery of the documents contemplated in paragraph 6 above.
(9)
The first (under or through it) and second respondents are
interdicted and restrained from terminating the supply of basic
municipal services to the property, based on disputed amounts
allegedly accruing during the period up until the date of this order,
and which dispute is captured in respect of query number 8004795013.
(10)
The above interdict does not affect the first and second respondents’
right to terminate the municipal supply to
the property, in respect
of amounts accruing from municipal consumption at the property after
the date of this order and falling
outside the ambit of the above
reference number.
(11)
The above interdict shall remain operative pending the exhaustion of
the first respondent’s internal dispute resolution
proceedings
inclusive of its/their appeal proceedings in respect of the reference
number and should these disputes still persist
thereafter, the
interdict shall remain operative pending the finalisation of legal
proceedings to be instituted within 20 (twenty)
days after the
exhaustion of the internal remedy procedures as aforesaid.
(12)
Should legal proceedings not instituted within the 20-day period
referred to in paragraph 11 above, the interdict shall
lapse.
(13)
The first and second respondents shall pay the costs of the
application on an attorney and client scale, which costs
shall
include the costs incurred on 14 February 2024 when appearing before
Dippenaar J.
(14)
The attorney of record of the Respondents is interdicted from
recovering a fee for any work done in this case.
(15)
Mr Ngwana, the legal advisor must make representations within 10 days
of the service of this order in which he offers
reasons why he should
not personally be ordered to pay 10% of the costs incurred; a failure
to timeously deliver such representations
shall result in a
supplementary order being made to that effect.
(16)
This judgment must be brought to the attention of the Mayor, the City
Manager, the Head of revenue collection in the
City and to the chief
legal advisor.
Roland
Sutherland
Deputy
Judge President,
Gauteng
Division, Johannesburg.
Heard:
4 March 2024
Judgment:
18 March 2024.
Appearances:
For
the Applicant:
Adv
J Peter SC
Instructed
by Kaveer Guiness Incorporated.
For
the First and Second Respondents:
Adv
E Sithole
Instructed
by Madhlopa and Thenga Incorporated.
[1]
Practice Directives by the Judge President have been issued from
time to time since August 2019. Included in the Directive is
the
procedure for the Special Interlocutory Court (SIC). The
versions of these directives relevant to this case are Directive
1
of 2021 and Directive 1 of 2024.
[2]
Despite being initially referred as the ‘Trials’
Interlocutory court the provisions were extended to cover all types
of proceedings.
[3]
The Code of conduct for Legal Practitioners et al, R198 of 29 March
2019, GG 42337, as amended, promulgated in terms of section
36(1)
the
Legal Practice Act 28 of 2014
. In particular. See article 3 and
60.1 and 60.2.
[4]
Ulcombe
Ltd v City of Johannesburg Case 18969/2022 (2023 02 01
)
per Strydom J.
sino noindex
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