Case Law[2024] ZAGPJHC 1057South Africa
Afhco Calgo M3 Consortium (Pty) Ltd v City of Johannesburg Metropolitan Municipality and Others (2022/322) [2024] ZAGPJHC 1057 (18 October 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
18 October 2024
Headnotes
Summary: Opposed application to rectify and recalculate a municipal account - Restatement of trite principles pertaining to applications – Restatement of factors to be considered in an application for leave to file a further affidavit – Unfounded opposition to main application – Respondents and its representatives should not have permitted the matter to proceed to court – Disregard of prior judicial dicta and warnings – Restating and quoting of various judgments of this court warning the first respondent, its deponent and its legal representatives of consequences of misconduct in proceedings – Litigation is not a game, nor a zero-sum context.
Judgment
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## Afhco Calgo M3 Consortium (Pty) Ltd v City of Johannesburg Metropolitan Municipality and Others (2022/322) [2024] ZAGPJHC 1057 (18 October 2024)
Afhco Calgo M3 Consortium (Pty) Ltd v City of Johannesburg Metropolitan Municipality and Others (2022/322) [2024] ZAGPJHC 1057 (18 October 2024)
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sino date 18 October 2024
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
Case
Number: 2022/322
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: YES
(3)
REVISED: YES
In
the matter between:
AFHCO
CALGO M3 CONSORTIUM (PTY) LTD
Applicant
and
CITY
OF JOHANNESBURG METROPOLITAN
MUNICIPALITY
First
Respondent
JOHANNESBURG
WATER
Second
Respondent
FLOYD
BRINK
Third
Respondent
Summary
:
Opposed application to rectify and recalculate a municipal account -
Restatement of trite principles pertaining to applications
–
Restatement of factors to be considered in an application for leave
to file a further affidavit – Unfounded opposition
to main
application – Respondents and its representatives should not
have permitted the matter to proceed to court –
Disregard of
prior judicial dicta and warnings – Restating and quoting of
various judgments of this court warning the first
respondent, its
deponent and its legal representatives of consequences of misconduct
in proceedings – Litigation is not a
game, nor a zero-sum
context.
Costs
:
Relevant considerations that warrant punitive costs orders, including
attorney client costs orders against litigants.
JUDGMENT
AMM, AJ
# Introduction
Introduction
1.
The applicant is the registered owner of a
residentially zoned immovable property situated in Jabulani Soweto.
The property was
registered in the applicant’s name during
2017. There are 288 residential units erected on the property.
2.
During January 2022, the applicant
instituted long-form application proceedings against the respondents.
3.
The applicant seeks, in broad terms, relief
aimed at the rectification and recalculation of the applicant’s
water and sewerage
consumption charges under account number 552005181
(meter reference 1047408). An attorney own client costs order is also
sought
against the first and second respondents. The respondents
oppose the application.
4.
The reason for the application is the
claimed unilateral change to the tariff at which the applicant is
billed for its water and
sewerage consumption at the property. This
unilateral tariff change is reflected for the first time in the
applicant’s May
2018 account statement. In its supplementary
founding affidavit, the applicant asserts that up and until May 2018
it was billed
on a residential tariff. Thereafter, and for reasons
unexplained, it was billed on a commercial tariff. The applicant
asserts that
it should, as it had previously been, be billed for its
water and sewerage consumption on a residential tariff.
5.
There is also the first respondent’s
last-minute interlocutory application. The first respondent seeks
leave to file a further
affidavit. Within the context of the first
respondent’s interlocutory application and this judgment, I
refer to the applicant’s
application as the “main
application” and the first respondent’s application as
“the interlocutory application”.
6.
Before dealing with the interlocutory
application, I first set out certain trite principles pertaining to
motion proceedings. I
then traverse the relevant context and
chronology of material events that informs both the main application
and the interlocutory
application.
#
# A restatement of
certain trite principles pertaining to applications
A restatement of
certain trite principles pertaining to applications
## Introduction
Introduction
7.
Within the context of these proceedings
(i.e., both the main and interlocutory applications), certain basic,
fundamental and essentially
imbricated principles pertaining to
application proceedings need restating.
8.
These principles traverse that ordinarily
required of affidavits in motion / application proceedings, and the
number or set of affidavits
ordinarily allowed in motion /
application proceedings.
##
## That required of
affidavits in motion application proceedings
That required of
affidavits in motion application proceedings
9.
The following imbricated principles
pertaining to that required of affidavits are particularly pertinent:
9.1.
the
affidavits filed
in
application proceedings assume the function of both the pleadings and
the evidence in action proceedings;
[1]
9.2.
the
deponent to an affidavit must have the requisite personal knowledge
of the
facts
deposed
in the affidavit (such that an affidavit, strictly speaking, must
contain only matters of fact within the personal knowledge
of the
deponent - where this is not the case, a confirmatory affidavit by
the relevant individual holding such personal knowledge
is to be
provided);
[2]
9.3.
the
rules of evidence must be adhered to and complied with, namely
deponents
can only depose to admissible evidence;
[3]
and
9.4.
a
deponent’s assertion that information is within his or her
personal knowledge “is of little value without some indication,
at least from the context, of how that knowledge was acquired”.
[4]
10.
Apropos that required of an answering
affidavit specifically, it is trite that an answering affidavit:
“…
cannot
confine itself to bare or ambiguous denials but must make a real
attempt to grapple with all of the relevant factual allegations
made
by the opposing party”.
[5]
11.
Regard
must also be had to the following warning sounded by
Heher
JA in
Wightman
t/a JW construction v Headfour (Pty) Ltd and Another
[6]
:
“
There
is this a serious duty imposed upon a legal adviser who settles an
answering affidavit to ascertain and
engage
with facts which his client disputes and to reflect such disputes
fully and accurately in the answering affidavit. If that does
not
happen it should come as no surprise that the court takes a robust
view of the matter.”
##
## Ordinarily only
three sets of affidavits are allowed in motion proceedings
Ordinarily only
three sets of affidavits are allowed in motion proceedings
12.
The bedfellow of these general
principles
is the longstanding rule in motion proceedings that only three sets
of affidavits are allowed, and that no further affidavits may
be
filed without the leave of the court.
13.
As
the Supreme Court of Appeal explained in
Hano
Trading
[7]
,
uniform
rule 6 “sets out the sequence and timing for the filing of the
affidavits by the respective parties” and that
“[u]nlike
actions, in application proceedings the affidavits take the place not
only of the pleadings, but also of the essential
evidence which would
be led at a trial. It is accepted that the affidavits are limited to
three sets”.
14.
Similarly,
in
Zarug
v Parvathie N.O.
[8]
,
the court held:
“
Normally
in motion proceedings the rule is that three sets of affidavits are
allowed
and that no further affidavits may
be filed without the leave of the Court. Such leave is in the
discretion
of the
Court
and
that discretion must be exercised judicially upon a consideration of
the facts of each case …”
.
15.
The
rationale for permitting the filing of only three sets of affidavits
in a specific sequence is sound. If it were otherwise,
as the court
in
Wingaardt
and Others v Grobler and Another
[9]
explained,
parties
would
be free to continually present new or fresh evidence to the court as
and when it pleases them and when it becomes available.
#
# The relevant context
and chronology of material events
The relevant context
and chronology of material events
## The launching of
the main application and the founding affidavit
The launching of
the main application and the founding affidavit
16.
As foreshadowed above, the applicant
launched the main application during January 2022.
17.
In its founding affidavit, the applicant
alleges, in essence, that the immovable property in issue (i) is
zoned residential 3, (ii)
has been developed, built and used for
residential purposes only, (iii) comprises a residential housing
estate of some 288 residential dwelling
units, and (iv) is categorised by the first respondent as
“residential” for
rates and taxes purposes.
18.
Accordingly, the applicant contends that it
is to be charged for the water and sewerage services and consumption
at the applicable
residential multi-dwelling unit tariff. Instead,
the applicant claims that it has been billed “at the incorrect
commercial
tariffs instead of the correctly applicable residential
tariffs”.
19.
The applicant further states in its
founding affidavit that despite endeavouring to engage with the first
and second respondent,
the applicant is still billed at the
commercial
tariffs, as opposed to the
relevant residential tariffs. In the interim, the applicant contends
that it has paid, and will continue
to pay, for all consumption
charges at the applicable residential tariff.
##
## The respondents’
(first) answering affidavit
The respondents’
(first) answering affidavit
20.
The respondents filed their answering
affidavit during March 2022. The deponent to the respondents’
answering affidavit is
Tuwani Ngwana. He is employed by the first
respondent as “Legal Assistant: Revenue and Debt Collection”.
21.
In
overview, the respondents, per their answering affidavit, do not deny
or place the following seriously or issuably
[10]
in dispute: (i) that stated above regarding the residential zoning,
rating and use et cetera of the applicant’s property,
and (ii)
that the applicant has paid that due in terms of the relevant
residential tariff.
##
## The thrust of the
respondents’ opposition in their (first) answering affidavit
The thrust of the
respondents’ opposition in their (first) answering affidavit
22.
The thrust of the respondents’
opposition to the main application, as set out in their answering
affidavit, is to be found
in a series of staccato and needlessly
repetitive statements, of the following type:
22.1.
the applicant “must submit the
Application for Tariff Changes, for the respondents to consider
changing its tariff from commercial
to residential rates” (see
paragraphs 9, 10 and 11 of the answering affidavit);
22.2.
“
the applicant [has] failed to make
the necessary applications for the change of tariff for water and
sewerage services” (paragraph
14);
22.3.
“
the second respondent has no record
of the applicant making an application for water and sanitation to be
charged on [sic] residential
meter and sewerage tariffs”
(paragraph 16);
22.4.
“
the applicant is obliged to make an
application for the conversion of its municipal services billing
tariff, to be converted from
commercial to residential tariff”
(paragraph 27);
22.5.
“
[t]he applicant is required to make
the necessary application with the second respondent to be charged on
the correct tariff”
(paragraphs 30 and 32);
22.6.
“
[t]he applicant is required to make
the necessary application with the second respondent, for it to
consider changing the levying
[sic] the water and sewerage rate from
commercial to residential rate” (paragraph 34);
22.7.
[t]he applicant must “[s]ubmit an
application for change of tariffs from commercial to residential
rates” (paragraph
46.2); and
22.8.
“
[d]espite being advised to do so,
[the applicant has] failed to submit an application for Application
for Tariff Changes”
(paragraph 66.1).
23.
The high-water mark of the respondents’
opposition to the main application can be found in paragraphs 27 and
66.4 of their
answering affidavit; namely that the applicant’s
only relief is to apply for the conversion of its municipal service
tariff
billing from commercial to residential. Paragraphs 27 and 66.4
respectively read:
“
27
.… the respondent [sic] cannot revise and correct the billing
tariff of the applicant for water
and sewerage services, such conduct
will be ultra vires and unlawful.”
“
66.4
The respondent’s, cannot
mero mutu
[sic] change the tariff levied against it for water and sewerage
services, without an application for Application for Tariff Changes,
being submitted and appropriately approved by the respondents.”
24.
Mr Ngwana, on behalf of the respondents,
repeats these sentiments in paragraphs 67 and 68
of the respondents’ answering affidavit by asserting:
“
67.
The applicant is legally obliged to submit an
application for Application for Tariff Changes, in order for its
property … to be considered for a change of tariff from
commercial to residential rate.
68.
The applicant cannot use the above Honourable Court to impose a
decision, which the applicant has not
made an application thereto
[sic], for the consideration of the respondents. Such decision would
be ultra vires, irrational and
unlawful.”
25.
The applicant filed its replying affidavit
During April 2022.
##
## The “May
2018” amendments to the main application
The “May
2018” amendments to the main application
26.
During June 2022, the applicant
simultaneously filed a uniform rule 28 notice to amend its notice of
motion and applied for leave
to file a supplementary affidavit.
27.
The import of the applicant’s
amendment to its notice of motion and the need for its supplementary
affidavit pertained to
the aforesaid May 2018 date. The applicant had
initially sought, when bringing the main application, a March 2017
commencement
date for the rectification and recalculation of its
water and sewerage consumption charges. The amendment and
supplementary affidavit
sought to reduce this commencement date to
May 2018.
28.
The May 2018 commencement date is pursued
within the following factual context: The applicant asserts that the
first respondent
had initially correctly billed the applicant for its
water and sewerage consumption on the relevant residential tariff
with effect
from the date of the transfer of the property to the
first respondent (March 2017), but with effect from the applicant’s
May 2018 statement of account, the previously applied residential
tariff “was unilaterally, arbitrarily and without cause,
changed to the Commercial tariff, by the First Respondent”.
29.
Despite the respondents’ opposition,
and pursuant to uniform rule 30 and 30A notices and applications, the
applicant, per
orders of Benson AJ. (dated 23 August 2023), obtained
the necessary leave to pursue the May 2018 date within the aforesaid
factual
context.
##
## The respondents’
supplementary affidavit
The respondents’
supplementary affidavit
30.
On 24 November 2023, the respondents filed
what they label as an “answering affidavit to the applicant’s
supplementary
affidavit”. Again. Mr Ngwana is the respondents’
deponent. His position with the first respondent remains unchanged.
For reasons unexplained, the affidavit was deposed to only on 30
November 2023. Nevertheless, despite taking some three months
to file
their supplementary answering affidavit, there is little that is new,
or noteworthy, in this (second) answering affidavit.
31.
Importantly, but ultimately fatally for the
respondents, the respondents’ second answering affidavit does
(i)
not
deny that the applicant was charged until May 2018 on the relevant
residential tariff, (ii) nor deal with the subsequent May 2018
tariff
change to a commercial tariff, (iii) nor provide a reason or
explanation for the tariff change.
32.
Instead, the supplementary answering
affidavit essentially repeats and restates the themes of the
respondents’ original answering
affidavit. In summary, the
import of the supplementary answering affidavit is set out in
paragraphs 9 to 12, which read:
“
9.
…, the respondents advised the applicant to submit an
application for tariff change ….
10.
As at the date of this affidavit, the applicant has failed and/or
refused to submit an application for
tariff change. This only proves
that this application is mala fide and without merit. …
11.
The respondents are duty bound to follow the relevant laws and
policies in relation to changing of tariff.
They cannot unilaterally
change tariffs without following due process. Such conduct will be
ultra vires and illegal.
12.
Furthermore, the respondents cannot revise the account whereas [sic]
there is no application in its
records as the account is revised
[sic] from date of the application.”
## Events subsequent
to the respondents’ supplementary affidavit
Events subsequent
to the respondents’ supplementary affidavit
33.
The applicant subsequently filed a
supplementary replying affidavit to the respondents’
supplementary answering affidavit.
It did so on 12 December 2023.
34.
After initially making application for a
set down date during March 2024 (per the relevant practice
directives), the applicant,
on 3 September 2024, set the main
application down for hearing on the opposed motion roll for the week
commencing Monday, 7 October
2024.
35.
More
than a month later, at 10:49 am on Friday, 4 October 2024, the
first respondent served its interlocutory application;
to which I now
turn.
[11]
#
# The first respondent’s
interlocutory application
The first respondent’s
interlocutory application
## Introduction
Introduction
36.
As already mentioned, the first respondent
seeks leave in its interlocutory application to file a further
affidavit in the main
application. The first respondent’s
interlocutory application is dated Friday, 4 October 2024. It is
brought under the rubric
of uniform rule 6(5)(e). It is supported by
a single affidavit, also dated 4 October 2024, which affidavit
purports, at the same
time, to also be the further affidavit that the
first respondent seeks leave to file.
37.
The applicant opposed the first
respondent’s interlocutory application. It wisely did not seek
for an opportunity to file
an answering affidavit in opposition to
the interlocutory application. Instead, the applicant pursued its
opposition on the basis
that that the first respondent failed to make
out a proper case for the granting of the discretionary relief
sought. The interlocutory
application was thus argued based on that
asserted in the first respondent’s further affidavit alone.
38.
However, Ms Lombard, who appeared for the
applicant, placed on record that if the interlocutory application
succeeded and the first
respondent was permitted to file its further
affidavit, the applicant would require an opportunity to file an
affidavit in response
to the first respondent’s further
affidavit. Mr Sithole, who appeared for the first respondent,
conceded that the applicant
would be entitled to such an opportunity.
He was however equivocal when asked whether the first respondent
should be permitted
to file a further affidavit in response to the
applicant’s aforesaid affidavit.
39.
The
argument in the interlocutory application consumed the entire morning
of the court hearing on Monday, 7 October 2024.
[12]
Given other opposed motion commitments, and the availability and
convenience of counsel, the matter was adjourned at 2 pm on Monday,
7
October 2024 to 2 pm, Thursday, 10 October 2024.
40.
After hearing further submissions from 2 pm
to 2:30 pm on 10 October 2024, I dismissed the first
respondent’s interlocutory
application. In doing so, I ordered
that the first respondent was liable for the costs of its application
on an attorney client
basis. I advised the parties that my reasons
for the dismissal and costs orders would be included in my judgment
in the main application.
My reasons follow below.
## The case for the
requested leave (such as it is)
The case for the
requested leave (such as it is)
41.
As already indicated, the first
respondent’s further affidavit serves two purposes. Its first
purpose is an endeavour to explain
the reasons for its late filing.
Its second purpose is to set out the “evidence” that the
first respondent seeks to
introduce into the main application via the
filing of its further affidavit.
42.
The first respondent’s case, in
respect of the further affidavit’s first purpose, is set out in
the laconic and perfunctory
terms in paragraph 34 of its founding
affidavit. The paragraph reads:
“
34.
The evidence attached to this affidavit are [sic] evidence which only
came to the attention of the Municipality’s
representatives
recently and with the new Counsel being on brief, it became important
that same is to be brought before court and the Applicant
is aware of
this evidence as it receives a monthly tax invoices and the evidence
brought herein is nothing new to the Applicant,
as it is the one who
made the application as indicated above.”
43.
As to the further affidavit’s second
purpose, the “evidence” that the first respondent seeks
to introduce falls
into two broad classes. They are (i) “evidence”
pertaining to the applicant’s (alleged) indebtedness to the
respondent
- this evidence, in turn, is comprised of a bundle of
invoices, and a document that purports to be a payment schedule; and
(ii)
“evidence” pertaining to the applicant allegedly
having applied for a “change of tariff to business” and
comprises an email and assumedly an accompanying application form and
also assumedly the invoices.
44.
More specifically, the email in issue is an
email by “Luelle Padayachee”, sent at 14:13 pm on
Wednesday, 2 October
2024. Ms Padayachee is presumably an employee of
the first respondent. The Padayachee email reads:
“
Dear All,
As discussed,
1.
Customer applied for a new water meter 150 mm connection,
notification number 700300026127 in 2017
for a business supply
2.
Coj [sic] was initially billing customer for water and sewer
availability charges, along with rates for
vacant charges.
3.
Until such time that the developers started developing the property
in 2018 where the business water
meter was installed and started
billing for water [a]nd sewer business consumption from 2018 to
current
.”
45.
Also included in the second class of “evidence”
is a document that purports to be a “SAP” electronic /
data
printout representing an apparent application by the applicant
to the first respondent for a “new water connection 150 MM
pipe”. The application is seemingly dated 11 April 2017.
46.
Mr Sithole, appearing for the respondents,
argued that the first class of documents’ materiality and
relevance pertained to
the interdictory relief sought by the
applicant. The applicant, so Mr Sithole argued, was not entitled to
broad ranging or blanket
interdictory relief in circumstances where
the applicant owed an amount in respect of its water and sewerage
consumption charges.
As to the second class of “evidence”
and accompanying “documents”, Mr Sithole argued that
these were material
and relevant to the question of when and why
there was the change in the tariff charged to the applicant.
##
## The relevant legal
principles in an application for leave to file a further affidavit
The relevant legal
principles in an application for leave to file a further affidavit
47.
In amplification of the legal principles
traversed above, there are several established legal principles
dealing with an application
to file a further affidavit.
48.
First,
uniform rule 6 sets out the number of, and order in which, affidavits
are to be filed. Uniform rule 6(d)(e) initially regulates
that
relevant to a replying affidavit but includes the following important
rider: “The court may in its discretion permit
the filing of
further affidavits.” The general rule is thus that only three
sets of affidavits are permitted, save with the
leave of the court
exercising its discretion. It is obvious that this discretion must be
exercised judiciously.
[13]
49.
What
considerations then ought to be brought to bear when a court engages
its uniform rule 6(d)(e) discretion? Existing and recognised
considerations provide valuable input and direction. Given inter-alia
section 173 of the Constitution;
[14]
these considerations cannot constitute a
numerus
clausus
of considerations. They, in any event, never have.
50.
In
their commentary on uniform rule 6(d)(e), the authors of Erasmus
[15]
collect and restate the following considerations (described as
“factors”) relevant to the exercise of the court’s
discretion: (i) the reason the evidence was not produced timeously;
(ii) the degree of materiality of the evidence; (iii) the possibility
that it may have been shaped to “relieve the pinch of the
shoe”; (iv) the balance of prejudice to the applicant if
the
application is refused and the prejudice to the respondent if it is
granted; (v) the stage which the particular litigation
has reached
which includes considering the need for finality, and the
undesirability of a reconsideration of the whole case; (vi)
the
convenience of the court (to which Opperman J adds the consideration
of whether the court has been afforded sufficient time
to consider
the further affidavit
[16]
);
(vii) the “healing balm” of an appropriate order as to
costs; (viii) the general need for finality in judicial proceedings;
and (ix) the appropriateness, or otherwise, in all the circumstances,
of visiting the fault of the attorney upon the head of his
client. I
do not understand these considerations to enjoy any primacy or
preference except to state that considerations of justice
and
fairness are of vital importance
[17]
.
51.
The
authors of Erasmus
[18]
also
add:
“
It
is essentially a question of fairness to
both
sides
as to whether or not further sets of affidavits should be permitted.
There should in each case be a proper
and satisfactory explanation, which negatives mala fides or culpable
remissness
, as to why the facts or
information had not been put before the court at an earlier stage,
and the court must be satisfied that
no prejudice is caused by the
filing of the additional affidavits which cannot be remedied by an
appropriate order as to costs.”
52.
All
things considered, and questions of prejudice and costs momentarily
set aside
[19]
, a court in the
exercise of its discretion ought generally to be inclined to permit
the case to be adjudicated on the full facts,
and in so doing permit
the further affidavit to be filed; provided, however, that the filing
of the further affidavit is
bona
fide
,
there is a reasonably, sufficient and satisfactory explanation which
negatives
mala
fides
or culpable remissness in the failure to tender the evidence earlier
in the proceedings; the matter sought to be introduced via
the
further affidavit is material, relevant, and admissible
[20]
and the administration
[21]
and
interests
[22]
of justice are
not prejudiced thereby.
53.
The
Constitutional Court has put the relevant threshold at “exceptional
circumstances”
[23]
having to exist which renders the evidence sought to be introduced as
material and relevant to a just and equitable determination
of the
dispute between the parties. I am however reluctant to apply the
“exceptional circumstances” test in the present
instance
because the first respondent gets nowhere near it.
##
## Analysing the
“explanation” and considering the merits of the
interlocutory application
Analysing the
“explanation” and considering the merits of the
interlocutory application
54.
I have nevertheless considered the “explanation”
provided in paragraph 34 of the further affidavit. I have also
considered
Mr Sithole’s accompanying submissions.
55.
I
accept for present purposes, as tendered by Mr Sithole from the bar
and not contained in the further affidavit, that Mr Sithole’s
attorney and he were only instructed in the matter on 2 October 2024.
But this advice is unhelpful for the first respondent.
It
demonstrates a general insouciance, if not recklessness, on the part
of the first respondent in protecting its own
interests
in this matter.
56.
This
insouciance, if not recklessness,
is
amplified because there is no explanation for the late instruction. I
pause to mention that Mr Ngwana’s silence on this
score is
deafening within the context of Sutherland DJP’s March 2024
judgment in
Millu
v City of Johannesburg Metropolitan Municipality and Another
[24]
(“
Millu
No. 1
”).
I also mention Mr Sithole appeared for the first respondent in that
matter, instructed by the same firm of attorneys who
are presently
also the attorneys of record for the respondents in the matter before
me.
57.
The further affidavit is contaminated by a general insouciance, if
not recklessness, on the part of the first respondent
in protecting
its own
interests in this matter.
57.1.
For
example, the aforementioned late change in the first respondent’s
external legal team is unexplained. T
he further affidavit
additionally fails to (i) identify who specifically are “the
Municipality’s representatives”;
(ii) when the “evidence”
first came to the attention of the “the Municipality’s
representatives”
and particularly the deponent; (iii) the
relevance of “new Counsel on brief”, and (v) when “new
Counsel”
was placed on brief.
57.2. To the above
list of concerns regarding, and omissions in, the further affidavit,
I add the first respondent’s
failure to explain (i)
Ms
Padayachee’s prior absence, and lack of participation in this
application (if this is the case), (ii) Ms Padayachee’s
belated
recent involvement (if this is the case); (iii); the nature of Ms
Padayachee’s belated involvement and (iv) the source
or origin
of Ms Padayachee’s knowledge.
57.3.
The second class of
evidence
is
not new evidence. It relates to an application made in 2017. The
respondents have already filed two answering affidavits in the
main
application. They did so in March 2022 and November 2023
respectively. The explanation tendered, such as it is in the further
affidavit, does not meaningfully, if at all, address and grapple with
the omission of the second class of evidence from the two
prior
answering affidavits.
58.
Simply put, the further affidavit is bereft of the
necessary particularity allowing me to be satisfied that there is a
reasonably
sufficient explanation or reason for the “evidence”
contained therein not being produced timeously. The first respondent
fails to provide a proper and satisfactory explanation sufficient to
negative its
mala fide
s
or culpable remissness. I am equally unable to conclude that the
filing of the further affidavit is
bona
fide
within the context of it being the
(third) affidavit tendered on the part of the first respondent in the
main application.
59.
Ultimately,
Mr Sithole faintly conceded that the first respondent’s
explanation (such as it is) for its late further affidavit
is
unsatisfactory. I agree, but in a louder voice.
60.
Even if my aforesaid findings and views, in the exercise of my
discretion, are misplaced, I am not satisfied that the
“
evidence”
sought to be introduced is admissible, let alone material and
relevant to a just and equitable determination of
the dispute between
the parties.
61.
My dissatisfaction is informed by the following:
(i) Mr Ngwana, on the face of things, lacks the required
personal knowledge to depose to the further affidavit, (ii)
the
further affidavit is not accompanied by a confirmatory affidavit of
Ms Padayachee; (iii) the further affidavit seeks to introduce,
for
the first time, what appears to be a new defence to the main
application not previously raised; and (iv) even if it were to
be
introduced, the new defence does not actually constitute a defence to
the main application.
62.
As already indicated in paragraph 9 above, absent an appropriate
confirmatory affidavit, the contents of an affidavit
must fall within
the personal knowledge of the deponent, and affidavits are required
to contain admissible evidence. The further
affidavit fails to meet
either of these requirements.
63.
Mr Ngwana is the first respondent’s deponent to the further
affidavit; albeit he now describes himself as being
employed as a
“Legal Adviser” by the first respondent. Mr Ngwana states
the following in paragraph 2 of the further
affidavit:
“
Subject
to the contents directly attributed to an individual within the
employ of the respondent the
contents
of
this affidavit fall within my personal knowledge, save where the
contrary appears from the context hereof and are [sic] to the
best of
my belief both true and correct.”
64.
Ignoring
its paucity of necessary grammar, paragraph 2 is entirely
unsatisfactory. Mr Ngwana and the drafters of the further affidavit
have contemptuously ignored Sutherland DJP’s dicta and
instruction in paragraph 45 of
Millu
No. 1
.
[25]
Equally damning is paragraph 2’s generic and empty verbiage of
the type specifically frowned upon by the Supreme Court of
Appeal.
[26]
65.
The first respondent’s difficulties do not end here. The
further affidavit is not accompanied by a confirmatory
affidavit of
Ms Padayachee. The further affidavit also does not
endeavour to engage with the requirements of
The
Law of Evidence Amendment Act, No. 45 of 1988
, pertaining to the
admission of hearsay evidence.
As
such, everything attributed to Ms Padayachee in the further affidavit
is hearsay and inadmissible; especially the Padayachee
email and what
appears to be its annexures.
66.
Leaving aside
the invoices attached to the
further affidavit, both the SAP application form (assumedly an
annexure to the Padayachee email),
and the “payment schedule”
(annexure COJ10) attached to the further affidavit, appear to be
documents
or evidence
that originate or
exist
in an electronic format (
electronic
or data messages). As such,
the
Electronic
Communications and Transactions Act, No. 25 of 2002 (ECTA) applies.
The first respondent however fails to attempt to render these
admissible
under section 15(4) of ECTA.
67.
The
judgment of Opperman J. (sitting in the
Free
State High Court
,
Bloemfontein)
in
Sheffryk
v MEC for Police, Roads and Transport: Free State Province
[27]
opens with the following salutary and apt statements:
“‘
Two
wrongs do not make a right.’ A document is a document and
hearsay evidence is hearsay evidence; opinion evidence is opinion
evidence. The Law of Evidence on the admissibility of the evidence
prevails. It is said that a document only proves what is written
in
it, but not the truth of what is written. Before the contents of a
document may be presented as the truth, the admissibility
requirement
must be fulfilled. The contents must not be irrelevant, the document
must not contain an inadmissible confession, etc.
Because a document
usually reflects somebody’s knowledge and thoughts, particular
care must be taken to ensure that it does
not infringe the hearsay
rule and perhaps the opinion rule.”
68.
With the above in mind, it would be both a
fruitless and improper exercise of my discretion to permit the filing
of the further
affidavit where its content and annexures are
inadmissible.
69.
That said, even if any of the
further affidavit’s
content and annexures could or should be
regarded or treated
as admissible, both classes of evidence in issue are immaterial and
irrelevant generally, and more so
immaterial and
irrelevant to a just and equitable determination of the dispute
between the parties. This is because:
69.1. The SAP
application is merely an application form; evidencing, at best for
the first respondent, only the following
(i) the fact of an
application, and (ii) an accompanying payment of an application fee;
nothing more. The first respondent and
the further affidavit do not
assert that the application was successful and, if so, when it was
approved by the first and/or second
respondents, and subsequently
implemented.
69.2. The SAP
application form appears to pertain to an application for a “new
water connection”; yet it is incorrectly
suggested in paragraph
18 of the further affidavit that the application is an application
for a tariff change.
69.3. The SAP
application form further appears to pertain to a new connection for a
“bus” rate (presumably a reference
to “business”),
yet the applicant was initially billed at the relevant residential
rate meaning that the (common cause)
facts belie and contradict the
contents of the application form.
69.4. The further
affidavit fails to explain any connection between the application and
the common cause May 2018 change in
tariff. This is pertinent because
the SAP application form is dated 11 April 2017, while the common
cause change in tariff from
residential to commercial took place in
May 2018; some 13 months later.
70.
Turning to the invoices attached to the further affidavit, their
purported relevance is claimed to rest on evidencing
the extent of
the applicant’s indebtedness to the first respondent. The
applicant’s position, as stated in its founding
affidavit, is
that it has paid the amounts owed in accordance with the residential
tariff. The respondents do not issuably deny
this. Inasmuch as the
applicant has been billed at the higher commercial tariff, there
would therefore understandably, on the respondents’
version, be
an amount owed. But this is not the issue. The first respondent fails
to indicate via the further affidavit and the
invoices, what amount,
if any, the applicant is in arrears vis-à-vis a residential
tariff. As such, the invoices attached
to the further affidavit are
unhelpful, irrelevant and immaterial.
71. Turning to the
question of prejudice, there is no reason why there should be any
(further) delays in this matter. I had
already read the papers and
affidavits filed of record in the main application prior to the
commencement of argument. I had prepared
for the argument. Permitting
the filing of the further affidavit will result in an unavoidable
postponement of the main application,
burdening the administration
and interest of justice. The main application will be required to be
re-enrolled and argued at a later
date, needlessly delaying the
enrolment of another matter on that opposed motion roll, and
requiring another judge to (re)read
the papers and affidavits the
main application. There is also no reason for the applicant being
frustrated in having its day in
court. It is entitled to its main
application being heard. The matter has already been needlessly
delayed by the respondents within
the context of their ill-advised
rule 30 / 30A applications. Moreover, it is not in the interests of
the public purse for this
application to remain unresolved given that
the respondents’ litigation is funded by the public purse.
72.
In addition to the above, the interlocutory application is, I
believe, not pursued in good faith. It is pursued by the
first
respondent in order to “
relieve the pinch of
the shoe” by
endeavouring to introduce a new defence and
evidence into the main application
at the
proverbial last minute. The “defence” foreshadowed in the
further affidavit pertains, then incorrectly, to assumedly
evidencing
an application for a change in tariff. The attached SAP application
form however is an application for a new line, not
a change in
tariff. This evidence
(i) on the face of it was
always available to the respondents; and (ii) should have been
introduced some 2½ years ago. Given
the circumstances, the
further affidavit is a death’s hour endeavour to breathe life
into the respondents’ moribund
opposition to the main
application.
73.
In
concluding
the
discussion and analysis on this
topic,
the following dicta of Cloete JA in
Rhoode
v De Kock and Another
[28]
is appropriate:
“
[19]
In view of the conclusion to which I have come in the previous
section of this judgment, no point would be served
in granting the
relief sought by the appellant. He would not be entitled to make
allegations in a further set of affidavits that
should have been in
his answering affidavit, in the absence of any explanation as to why
they were not there in the first place
(
Kasiyamhuru
v Minister of Home Affairs and Others
1999
(1) SA 643 (W)
at 649F – 650E) - and there was none; accordingly, the
shortcomings in his case, which I have held to be fatal, could not
be
remedied.”
74.
In summary,
the content and annexures sought to be
introduced via the further affidavit are inadmissible, immaterial,
irrelevant and, moreover,
the administration and interests of justice
would be prejudiced by the further affidavit’s admission. The
interlocutory application
is moreover not
bona
fide
.
75.
In the circumstances, after having due regard to the various
circumstances (factors) set out in above (appropriately weighed,
measured and counter-balanced), I decline to exercise my discretion
to grant the first respondent the belated indulgence sought.
Otherwise stated, the first respondent’s interlocutory
application is dismissed.
##
## The costs
consequences of the interlocutory application
The costs
consequences of the interlocutory application
76.
On the
question of costs, not only is there no reason why costs should not
follow the result
[29]
,
but
I also believe that, in the exercise of my discretion and mindful
that
a
punitive costs order is not awarded easily or readily
,
a punitive costs order
is
justified and warranted.
77.
The
interlocutory application (i) constitutes an abuse
of
court process
[30]
,
and
(ii) the first respondent, in bringing and in pursuing its
interlocutory application in the circumstances that it did, has
misconducted itself in the conduct of the matter.
[31]
The interlocutory application was pursued on vacuous and
ill-considered grounds. It ignored trite and established principles
of
the law of evidence. No
worthy
cause or worthy motive informed the bringing of the interlocutory
application.
It
has moreover frustrated and delayed argument and the final
determination of the main application, and the orderly progression
of
the opposed motion court roll that served before me that week.
78.
Most
importantly, however, the first respondent inexpiably ignored the
warnings furnished by Sutherland DJP
and
Benson AJ.
In
the latter respect, the following findings of Benson AJ.
[32]
,
in disposing of the respondents’ uniform rule 30 and 30A
application and granting attorney client costs orders, requires
restating:
“
The
fact that the respondents are seasoned litigants, and that they
utilise public funds to finance such litigation, also warrants
censure. The obstructive attitude which they have displayed in
relation to the applicant’s approach to the intended (and
now
perfected) amendment, is unfathomable, yet warrants an adverse costs
order as against them.”
79.
There is
also the after-the-fact endeavour by the first respondent to file
what it labels as a “confirmatory affidavit”
by Ms
Padayachee. This affidavit is dated 7 October 2024. Duly considered,
(i) the Padayachee affidavit is not merely a confirmatory
affidavit;
(ii) it fails to identify to which of Mr Ngwana’s three
affidavits it pertains; and (iii) it purports, without
explanation
and unsatisfactorily, to remedy the patent evidential shortcomings in
the interlocutory application. Leave was not
sought to file the
Padayachee affidavit. It was not accompanied by an application for
its submission. I thus regard the Padayachee
affidavit as
pro-non
scripto
.
[33]
80.
If any regard, however, is to be had to the Padayachee affidavit,
stripped to its essence and true purpose, it serves
as the first
respondent’s proverbial white flag within the context of the
inadmissibility of the evidence sought to be introduced
via the
further affidavit.
81. Additionally,
when asked on what basis the first respondent believed it was simply
entitled to file the Padayachee affidavit,
Mr Sithole unsustainably
argued that this was because (i) Mr Sithole previously indicated that
the first respondent intended filing
the affidavit, and (ii) the need
for the affidavit arose because of points which I had
mero motu
raised.
82.
Each of these arguments lack obvious merit. Simply stating that you
are going to do so something does not entitle you
to simply do it,
especially if such requires the leave of the court. Additionally, I
was also not providing the first respondent
with legal advice on how
to present, evidence and substantiate its case in the interlocutory
application. I was engaging with counsel
on concerns I had with the
first respondent’s case. Mr Sithole additionally falsely argued
that I had somehow previously
indicated that I would permit the
filing of the confirmatory affidavit by indicating that if the
interlocutory application were
to succeed, the applicant would be
permitted to file a further affidavit.
83.
The endeavour to justify the filing of the Padayachee affidavit on
the strength of these fallacious arguments, in the
absence of an
application for leave to file the affidavit, is
mala fide
and
constitutes misconduct in the proceedings. The grant of a punitive
costs order is therefore necessary and warranted.
#
# The merits of the main
application
The merits of the main
application
84.
I now turn to determine the merits of the
main application.
As set out above, the
respondents repeatedly contended that the applicant has not made
application for a change in tariff from commercial
to residential,
and the respondents cannot
mero motu
change the applicable tariff.
85.
A consideration of the admissible
affidavits filed in the application, and the relevant invoices,
demonstrates that the applicant
was billed at the
relevant
residential tariff up until the receipt of its May
2018 statement; evidencing
a change in
tariff from residential
to commercial.
86.
The respondents do not explain the reasons
for the change in the tariff. They should have done so, particularly
within the context
of their repeated assertions that (i) a tariff
change can only take place within the context of an appropriate
application being
made for a tariff change, and (ii) the applicant,
despite the express invitation to do so, not making an application
for a tariff
change.
87.
As set out above, the respondents’
position in opposing this application is, as ultimately stated in the
supplementary answering
affidavit, the following
:
“The respondents are duty bound to follow the relevant laws and
policies in relation to changing of tariff. They cannot
unilaterally
change tariffs without following due process. Such conduct will be
ultra vires and illegal”.
But this is
exactly the point. This is exactly what the first and second
respondents have in fact done. It is common cause (or not
seriously
or genuinely disputed by the respondents) that
there
was a tariff change in the applicant’s May
2018 account statement. The respondents do not, assert, let alone
present any admissible
evidence, that the applicant applied
for
a change in tariff from the (common cause)
historically applied residential rate to a commercial or business
rate. This change thus
took place unilaterally and without an
application being made for the change. The tariff change is thus
“
ultra vires and illegal”.
88.
Mr Sithole’s endeavours to argue -
presumably in support of justifying the tariff change - that
resolutions of the first respondent
pertaining to the applicable
tariffs cannot be simply ignored and, as such, a change in tariff
requires the making of an application.
He endeavours to buttress this
argument by stating that there must be an initial application “for
a line” to the applicant’s
property, and that this
initial application must be considered within the context of the
invoices rendered relating to “consumption”.
A
consideration of the first respondent’s resolutions is
irrelevant within the confines and ambit of the main application.
The
further arguments are also unsustainable because they are unsupported
by any admissible evidence and, in any event, they are
self-defeating.
89.
The respondents all also take issue, in
their supplementary answering affidavit, with the applicant’s
failure to disclose
the application it made for a residential tariff
when it applied for a water and sewerage account. I believe that the
respondents
do so improperly and opportunistically for at least two
reasons. First, their position is irreconcilable within the context
of
that which the respondents do not place in dispute in the main
application (see paragraphs 21 and 31 above), and second, the
respondents
could quite easily have put up the application themselves
at the proper time (i.e., when filing their answering affidavit and
supplementary
answering affidavit) but they failed to do so.
90.
Mr Sithole endeavoured to argue, as I
understood him, that I could not grant the relief sought by the
applicant in the absence of
the applicant making the relevant
application for a change in tariff. For me to do so, so the argument
went, would be unlawful.
This argument misses the point on the true
issues requiring determination in the main application, namely; (i)
who or what caused
the May 2018 change in tariff from residential to
commercial, and (ii) the consequences thereof.
91.
Moreover,
the first and second respondents have immutable statutory and legal
responsibilities, with the accompanying accountabilities.
On this
score, Van Der Merwe AJA
in
City
of Johannesburg Metropolitan Municipality and Others v Hlophe and
Others
[34]
,
as quoted in
Barstow
and others v City of Johannesburg Metropolitan Council
[35]
,
held (footnotes omitted):
“
In
my view, however, the decisive consideration is the principle of
public accountability. It is a founding value of the Constitution
and
central to our constitutional culture. In terms of s 152(1)(a)
of the Constitution the objects of local government include
to
provide accountable government for local communities. Section 6(1) of
the Systems Act provides that the municipality’s
administration
is governed by the democratic values and principles embodied in
s 195(1) of the Constitution. Section 195(1)(f)
of the
Constitution specifically states that public administration must be
accountable. In terms of s 6(2)(b) of the Systems
Act the
administration of a municipality must facilitate a culture of public
service and accountability amongst staff. Constitutional
accountability may be appropriately secured through the variety of
orders that the courts are capable of making, including a mandamus
.”
92.
As
evidence of the above, there are various judgments of this court
pertaining, directly and indirectly, to the reversing, revising
and
rectifying of the first and/or second respondents billing
practices.
[36]
So too,
granting interdictory relief of the type sought by the applicant.
[37]
93.
Mr Sithole also argued that I could not
grant the interdictory order sought by the applicant within its broad
and general terms
because the applicant may be in default of its
payment obligations in respect of debts falling beyond those which
form the subject
matter of the present dispute. I immediately
assuaged Mr Sithole’s concerns by stating that if I was
inclined to grant any
interdictory order, I would ensure that it is
carefully crafted to ensure that the interdictory order does not
trespass upon the
first and second respondents’ ability to
collect other debts that may be owed by the applicant. In any event,
if regard is
had to paragraph 1.5 of its notice of motion, the
applicant does not seek broad and unencumbered relief of the type
relief feared
by Mr Sithole.
94.
As already indicated, the issues to be
determined in the main application are and were relatively simple and
straightforward. These
were however needlessly complicated and
delayed by the litigation attitude adopted by the respondents to the
main application generally,
and the first respondent particularly
within the context of its interlocutory application.
95.
There is no admissible evidence before me
that the May 2018 tariff change is as a consequence of the applicant,
or anything it did.
By all accounts, the tariff change could only
have taken place at the instance of the first and/or second
respondents and under
their watch.
In t
he
circumstances, I cannot but find that the May 2018 tariff change from
the relevant residential tariff to a commercial (business)
tariff
took place unilaterally, arbitrarily and without appropriate legal
course, and must be reversed and rectified.
96.
In closing this topic, I am satisfied that
the applicant meets the requirements for the granting of the
mandatory and interdictory
relief sought. These requirements are
trite and do not need restating. The applicant has made its case for
the relief that it seeks,
and it must therefore succeed in the main
application.
#
# The costs consequences
of the main application
The costs consequences
of the main application
97.
Similarly to the dismissal of the first
respondent’s interlocutory application, there is no reason for
the costs of the main
application not to follow the result.
98.
The applicant asks however that the first
and second respondents, jointly and severally, and in solidum, the
one paying the other
to be absolved, pay the costs of the main
application on the punitive attorney and
own
client scale.
99.
When considering whether costs should be
awarded on a punitive scale, I remain sensitive to the consideration
that a punitive costs
order is not awarded easily or readily. That
said, based on the authorities already mentioned, if a party has
acted in an improper
manner, a court may, in the exercise of its
discretion pertaining to costs, show its displeasure with such
conduct by awarding
a punitive costs order. That said, an attorney
and own client costs order is rare.
100.
Ledwaba
AJ in
HR
Consulting (Pty) Ltd v Gomes and Others
[38]
provides
the following helpful excurses on attorney and own client costs
orders:
“
14.
The scale of attorney and client is extra ordinary and penal in
nature. It should be awarded where there is
blameworthy conduct
worthy of censure on the part of the guilty party such as fraudulent,
dishonest, vexation conduct that amount
to an abuse of court
processes.
[39]
The
costs on attorney and client scale may also be awarded to ensure more
effectively than it can do by means of a judgement for
party and
party costs that the successful party will not be out of pocket in
respect of the expense caused by the litigation. They
may also be
used by the courts to mark its disapproval of the conduct which
should be frowned upon and where such cost order is
justified having
regard to the particular circumstances of the matter.
[40]
They
may not only be meant to punish a losing party, but may be justified
where, in the view of the court, there are circumstances
which gave
rise to the litigation, or arising out of the conduct of a losing
party, which would render it just, equitable and necessary
to ensure
that a successful party is not out of pocket.
[41]
”
101.
Eksteen
JA explained in
Sentrachem
Ltd v Prinsloo
[42]
that
the granting of an order on the attorney and own client scale must be
seen as an attempt by the court to go a step further
than the
ordinary order of costs on the scale as between attorney and client,
to ensure that the successful party is indemnified
of all reasonable
costs of litigation.
[43]
Taxation
will therefore occur on a more liberal scale. Such a costs order,
however, does not sanction the recovery of excessive
and unreasonable
costs.
[44]
102.
Given the respondents’ conduct, and
on a conspectus of the main application as a whole,
it is
just, equitable, and
necessary to ensure that the applicant is not out of pocket. There
have been repeated unsuccessful endeavours
and efforts on the part of
the applicant to engage with the first and second respondents. The
ultimate lamentable product of these
unsuccessful endeavours and
efforts is the need for the applicant’s bringing of this
application; unduly, if not unnecessarily,
burdening both the
applicant and the public purse. The first and second respondents
could have avoided the need for the bringing
of this application, had
they simply applied their minds and meaningfully and timeously
engaged with the applicant.
103.
Mr
Ngwana and the first respondent’s legal advisers have eschewed
Strydom J.’s January 2023 express “stern warning”
in
Ulcombe
v City of Johannesburg
[45]
namely
that:
“ …
unfounded
opposition to applications where the aim of the applicant is to sort
out long-standing disputes pertaining to municipal accounts,
is
frowned upon by this Court.
The
impression of this court gained is that the legal adviser of the
City, Mr Thuwani Ngwana, did not properly apply his mind and
made no
attempt to resolve the issue. The attorney for the respondent should
not have allowed the matter to have found its way
onto the opposed
roll of this Court.”
104.
I
must also restate the following findings of Sutherland DJP in
Millu
v City of Johannesburg Metropolitan Municipality and Another
[46]
(which
apply equally in the present instance):
“
[2]
…
[there]
is an egregious tardiness on the part of the City and its legal
representa
tives…”
and
“
[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.”
and
“
[48]
... 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.”
105.
Regard
must also to be had to the
statements
of Sutherland J. (as he then was) in
Zipp
v Zipp
[47]
:
“
Too
often, legal practitioners display sycophantic acquiescence in their
client's desires. This is wrong. Diligent and professional
advice
includes frankly telling a would-be litigant what the realities of
the law are. Indulging in litigation which serves only
to wear down
the opposition or protract the case is a violation of the duty of
both attorneys and counsel to the process of the
court. Litigation is
not a free for all. Our adversarial system of litigation does not
license practitioners, whether attorneys
or counsel, to ignore their
duties to the court which requires them to act so as to promote the
efficacy and efficiency of the
process of the court. When
practitioners, in their zeal for loyalty to their clients, abandon
this duty they behave unprofessionally.
(See: D.Ipp, 'Counsel's
duties to the Court'
(1998) 114 LQR 63).
”
106.
As I have already indicated, the issues for
determination in the main application are and were relatively simple
and straightforward.
The applicant merely asks, via the main
application, that it be billed on the relevant historical pre-May
2018 residential rate.
This is particularly so because the May 2018
tariff change flies in the face, as already mentioned, of the
respondents’ stance
that a change in tariff requires an
application, and the first and second respondents “cannot
unilaterally change tariffs
without following due process”
because such “conduct will be ultra vires and illegal”.
The respondents’
inability to explain this change, despite
their statutory and public service obligations and accountabilities,
carries with it
the indubitable inference that the change took place
without due process, and was
ultra vires
and illegal. The respondents and their legal representatives
should not have allowed the main application to have found its
way
onto the opposed roll of this Court. An adverse costs consequence
must follow in these circumstances alone.
107.
As already mentioned, the same legal
representatives (counsel and firm of attorneys) who acted for the
City in
Millu No.1
appeared before me. While I accept that the respondents’
attorneys and counsel were only recently instructed in the main
application, it is disconcerting that they and Mr Ngwana nevertheless
appear to have paid scant, if any, regard to the aforesaid
dicta of
inter alia Sutherland DJP in
Millu No.1
,
Benson AJ. or Strydom J.
108.
I additionally agree with the applicant’s
assertion that the first and second respondents have mulcted the
applicant in unnecessary
and wasteful expenditure. All the applicant
requires is that (i) it be billed at the correct rate; and (ii) its
municipal account
is rectified. That said, the first and second
respondent’s conduct throughout their dealings with the
applicant’s legitimate
queries and endeavours is unacceptable,
high-handed and dismissive. The applicant further suggests that only
an order that the
first and second respondents pay the costs of the
main application on the attorney and own client scale will ensure
that this does
not happen again.
109.
That said, in all of the circumstances and
having regard to the first and second respondents’ conduct, as
traversed above
in this judgment generally, and in the exercise of my
discretion, a punitive attorney own client costs order is both
justified
and warranted.
110.
I have declined to impose a costs order or
fee sanction against the respondents’ legal representatives
solely because of their
late introduction and instruction in the main
application. I doubt, however, that another court will be as
forgiving in the future.
111.
In
closing this topic, the first and second respondents
,
its relevant decision-making representatives, its office bearers, and
its legal representatives (internal and external) are reminded
that
litigation is not a game
[48]
,
nor a “zero-sum context
”
[49]
.
They have fiduciary duties, especially when holding the public
pursue, to litigate responsibly. They should collectively and
individually keep the aforesaid in mind, and, at the same time, pay
heed to at least the quoted dicta and decisions of this court.
If
they fail to do so, punitive personal (
de
bonis propriis
)
[50]
costs
orders,
and fee forfeiture / disallowance orders, will ineluctably follow
against those deserving individuals, including internal
and external
legal representatives.
#
# Orders
Orders
112.
In the above circumstances the following
orders are made:
1.
The
first respondent’s interlocutory application (dated 4 October
2024) seeking leave to deliver the supplementary affidavit
of Tuwani
Ngwana is dismissed and the first respondent is ordered to pay the
costs of this
interlocutory
application on the attorney
client scale.
2.
Within
60 days of the grant of this order:
2.1
The
first and second respondents are ordered and directed to reverse all
amounts and charges levied on or at a commercial and business
tariff
/ rate pertaining to water and sewerage consumption on residential
water meter no. 1047408 (“the meter”) pertaining
to
account number
552005181
(“the account”) for Portion
4 of Erf (Stand) 2[…], Jabulani Township (“the
property”).
2.2
Further
to paragraph 2.1 above, the first and second respondents are ordered
and directed to reverse all VAT, interest, penalty
and ancillary
charges levied or rendered on the
account
in relation to the amounts and charges
to be reversed per paragraph 2.1 above.
2.3
The
first and second respondents are further ordered and directed, in
respect of the period subsequent to 1 May 2018, to charge
and bill
the applicant per the account for water and sewerage consumption
at
the correct and applicable residential water and sewerage tariff x
288 units residential units erected on the property as per
the meter.
2.4
The
first and second respondents must further reflect all the payments
made by the applicant on the account for the period
1
May 2018 to the date
on which
paragraphs 2.1 and 2.2 above are implemented.
2.5
The
first and second respondents are also directed and ordered to furnish
the applicant with accurate and rectified municipal account
statements demonstrating
and
confirming compliance with paragraphs 2.1 to 2.4 above.
3.
For
the purposes of paragraphs 2.1 to 2.4 above, the term(s) “reverse”
,
“charge”, “bill”
and “reflect”
may include any generally
accepted accounting practice to be used to correct the account in a
manner which will ensure compliance
with paragraphs 2.1 above
to
2.5 above
.
4.
The
first and second respondents (including any entity and/or person
acting under or through it / them) is interdicted and restrained
from
terminating the supply of water and sewerage services to the property
pending the rectification and recalculation of the applicant’s
municipal account as per
paragraphs
2.1 to 2.5 above.
5.
The
interdict in paragraph 4 above does not affect the first and/or
second respondents’ right to lawfully terminate the supply
of
water and sewerage services to the property in respect of amounts
accruing, owed and outstanding in respect thereof
subject
to such amounts not being amounts accruing, owed and outstanding
within the context of paragraphs 2.1 and 2.2 above.
6.
The
first and second respondents are ordered to pay the costs of the
(main) application under the above case number, jointly and
severally, in solidum, the one paying the other to be absolved, on
the attorney and own client scale.
G AMM
ACTING JUDGE OF THE
HIGH COURT
JOHANNESBURG
Delivered:
This judgment was prepared and authored by the Judge whose name is
reflected and is handed down electronically by circulation
to the
parties / their legal representatives by email and by uploading it to
the electronic file of this matter on CaseLines. The
date for
hand-down is deemed to be on
18 October 2024
.
For
the applicant:
Adv.
N Lombard
Instructed
by Mervyn Smith Attorneys
For
the first respondent:
Adv.
E Sithole
Instructed
by Madhlopa & Thenga Inc.
Hearing
Date:
10
October 2024
Judgment
Date:
18
October 2024
[1]
Swissborough
Diamond Mines v Government of the RSA
1999
(2) SA 279
(W) at 323 H–I
Hart
v Pinetown Drive-in Cinema (Pty) Ltd
1972
(1) SA 464
(D) 469,
Hano
Trading
v J R
209 Investments (Pty) Ltd
2013
(1) SA 161
(SCA)
–
these
principles applicable to founding affidavit apply mutatis mutandis
to both answering and replying affidavits. In respect
of an
answering affidavit see
Gold
Fields Ltd and Others v Motley Rice LLC
2015
(4) SA 299
(GJ) at 325 / para 122 et seq and
Director
of Hospital Services v Mistry
1979
(1) SA 626
(A) quoted therein
[2]
Van
Blerk,
Precedents
for Applications in Civil Proceedings
,
Juta, 2018, page 15, para
3.24
[3]
See
Pountas’
Trustee v Lahanas
1924
WLD 67
70;
Dennis
v Garment Workers’ Union Cape Peninsula
1955
(3) SA 232 (C), and
Dennis
v Garment Workers' Union, Cape Peninsula
1955 (3) SA 232 (C)
[4]
President
of The Republic of South Africa and Others v M & G Media Ltd
2012
(2) SA 50
(CC) and see
President
of the Republic of South Africa and Others v M & G Media Ltd
2011
(2) SA 1
(SCA) at par [38]
[5]
As
stated and summarised in Van Blerk
supra
page 15, para 3.31
[6]
[2008] ZASCA 6
;
[2008]
(3) SA 371
para 13
[7]
Hano
Trading
supra
para 10
[8]
Zarug
v Parvathie N.O.
1962 (3) SA 872
(D) at page 873.
In
a similar vein to
Hano
Trading
and
Zarug
see
BP
Southern Africa (Pty) Ltd v Intertrans Oil SA (Pty) Ltd & Others
2017
(4) SA 592
(GJ) at para [17],
James
Brown & Hamer (Pty) Ltd (Previously Named Gilbert Hamer & Co
Ltd) v Simmons N.O.
1963
(4) SA 656
(A), page 660D-E,
Sealed
Africa (Pty) Ltd v Kelly and Another
2006
(3) SA 65
(W) at page 67B-E
[9]
Wingaardt
and Others v Grobler and Another
2010
(6) SA 148
(ECG) at paras [13] to [14]
[10]
When
referring to seriously or “issuably”, I do so within the
context of that stated in paragraphs 9 and 10 above
[11]
In
terms of my allocation directives, distributed on 25 September 2024,
the main application was allocated for hearing at 10:00 am
on
Monday, 7 October 2024
[12]
For
purposes of the Taxing Master, the argument was from 10 am to
1 pm save for the 11:1 5am to 11:30 am tea
break
[13]
M
&G
Media Ltd
infra
para
27
[14]
A
High Court has the inherent power to protect and regulate its own
process and to develop the common law, taking into account
the
interests of justice
[15]
Van
Loggerenberg,
Superior
Court Practice
,
Juta, Third Edition
[16]
White
Rock Property Trading (Pty) Limited v Khaka and Another
(19602/16) [2017] ZAGPJHC 175 (7 June 2017) para 11
[17]
M&G
Media Ltd v President of the Republic of South Africa and Others
2013
(3) SA 591
(GNP) para 27
[18]
Supra
[19]
Obviously,
if the prejudice suffered by the counter-party because of the
admission of the further affidavit cannot be remedied,
at least, by
an appropriate costs order, a court ought to be disinclined to
permit the further affidavit to be filed.
[20]
Supra
34
[21]
Rex
v Carr
1949
(2) SA 693
(A)
as
quoted in
M&G
Media Ltd supra
para
34
[22]
Ibid
[23]
M&G
Media Ltd supra
[24]
2024
JDR 1329 (GJ)(18 March 2024)
– see inter-alia paragraphs 43, 44 and 45
[25]
Paragraph
45 reads:
“
[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.”
[26]
President
of the Republic of South Africa and Others v M & G Media Ltd
supra
[27]
2022
JDR 1629 (FB) para 1
[28]
Rhoode
v De Kock and Another
2013
(3) SA 123 (SCA)
[29]
Vassen
v Cape Town Council
1918
CPD 360
and
Ferreira
v Levin NO and Others; Vryenhoek and Others v Powell NO and Others
[1996] ZACC 27
;
1996
(2) SA 621
(CC) para 3
[30]
Tjiroze
v Appeal Board of the Financial Services Board
2021
(1) BCLR 59 (CC) and
Public
Protector v South African Reserve Bank
2019 (6) SA 253
(CC) at para 8
[31]
Nel
v Waterberg Landbouwers Ko-operatiewe Vereniging
;
Van
Dyk v Conradie
1963
(2) SA 413
(C);
De
Goede v Venter
1959
(3) SA 959
(O);
and
Ward
v Sulzer
1973
(3) SA 701
(A)
[32]
AFHCO
Calgro M3 Consortium (Pty) Ltd v City of Johannesburg Metropolitan
Municipality and others
2023 JDR 3337 (GJ) para 37
[33]
Meropa
Communications (Pty) Ltd & Another v Verb Media (Pty) Limited
(29646/2016) [2017] ZAGPJHC 464 (11/8/2017) at para [13] - [15]
[34]
[2015]
2 All SA 251
(SCA) para 25
[35]
2023
JDR 2506 (GJ) para 14
[36]
See
inter
alia
Millu No.1
supra
,
and
K2012190864
(Pty) Limited v City of Johannesburg Metropolitan Municipality
2023 JDR 3948 (GJ),
Whyte
v City of Johannesburg
2023 JDR 0648 (GJ),
Douglas
and another v City of Johannesburg
Metropolitan
Municipality
2023 JDR 4243 (GJ),
Barstow supra
[37]
See
inter
alia
Millu
No.1 supra
and
Ackerman
v City of Johannesburg
and
others
2024
JDR 1449 (GJ) and
Barstow
supra
[38]
2024
JDR 2547 (LP) See also Cloete J, in
Fidelity
Bank Ltd vs Three Woman (Pty) Ltd
[1996]
4 All SA 368 (W)
[39]
Plastic
Converters of SA on Behalf of Members
v N
ational
Union of Metal Workers of SA
,
(2016) 37 ILJ 2815 (LAC);
Public
Protector v SA Reserve Bank
2019
(6) SA 253(CC)
para 8
[40]
Erasmus
Superior
Court Practice
:
Service 27, 2007- page B1-428A
[41]
The
Law Society of the Cape of Good Hope v Sizwe
2012
JDR 1012 (ECG)
para 4; and also
Nel
v Waterberg Landbouers
Ko-operatiewe
1946
AD 597
at
607; and
Fidelity
Bank Ltd
supra
[42]
1997
(2) SA 1
(A) at 22B-D
[43]
Also
see
Delfante
and Another v Delta Electrical Industries Ltd and Another
1992
(2) SA 221
(C) at 233B;
In
re Alluvial Creek Ltd
1929 CPD 532
at 535
[44]
Cambridge
Plan AG v Cambridge Diet (Pty) Ltd and Others
1990
(2) SA 574
(T) op 589D-G;
Malcolm
Lyons & Munro v Abro and Another
1991
(3) SA 464
(W) op 469D-E
[45]
18969/2022
(2023 02 01)
[46]
2024
JDR 1329 (GJ) (18 March 2024) (marked reportable)
[47]
Unreported
judgment in
GH
Zipp v LA Zipp
,
in the High Court of South Africa: Gauteng Local Division,
Johannesburg, Case number 2016/23915, judgment on 16 February 2017.
[48]
See,
inter
alia
,
the SCA decisions in
Cadac
(Pty) Ltd v Weber-Stephen Products Company and Others
2011 (3) SA 570
(SCA) para 10;
Madibeng
Local Municipality v Public Investment Corporation Ltd
2018
(6) SA 55
(SCA) para 30 and also
Tumileng
Trading CC v National Security and Fire (Pty) Ltd; E and D Security
Systems CC v National Security and Fire (Pty) Ltd
2020 (6) SA 624
(WCC) para 14,
MGB
v DEB
2013 (6) SA 86
(KZD) para 39,
Niewoudt
v Joubert
1988 (3) SA 84
(SE) at 91B/C.
[49]
Cf
The
Commissioner: Companies & Intellectual Property Commission v
Independent Music Performance Rights Assoc
2020
JDR 2598 (GP)
para [1]. See also
Cadac
(Pty) Ltd v Weber-Stephen Products Company and Others
2011 (3) SA 570
(SCA) para 10. And see:
Tumileng
Trading CC v National Security and Fire
(Pty) Ltd
2020 (6) SA 624
(WCC) para 14,
Niewoudt
v Joubert
1988 (3) SA 84
(SE) at 91B-C
[50]
Latin
for “straight from the pocket”
sino noindex
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