Case Law[2023] ZAGPJHC 910South Africa
M.D v M.D (2021/43212) [2023] ZAGPJHC 910; [2023] 2 All SA 736 (GJ) (2 February 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
2 February 2023
Headnotes
SUMMARY:
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## M.D v M.D (2021/43212) [2023] ZAGPJHC 910; [2023] 2 All SA 736 (GJ) (2 February 2023)
M.D v M.D (2021/43212) [2023] ZAGPJHC 910; [2023] 2 All SA 736 (GJ) (2 February 2023)
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sino date 2 February 2023
IN THE HIGH COURT OF
SUTH AFRICA
GAUTENG DIVISION,
JOHANNESBOURG
CASE NUMBER:
2021/43212
(1)
REPORTABLE: YES
(2)
OF INTEREST TO OTHER JUDGES: YES
(3)
REVISED: YES.
DATE: 2 February 2023
In the matter between: -
M,
D
Applicant
and
M,
D
Respondent
J U D G M E N T
DELIVERED
:
This judgment was handed down
electronically by circulation to the parties’ legal
representatives by e mail and publication
on CaseLines. The
date and time for hand-down is deemed to be 14h00 on 2 February 2023.
SUMMARY:
Rule
43
–
Filing
of affidavits
- The Court found that the
time
has arrived for
an urgent
reform of the rule.
The
right to equality and a fair trial is at the heart of rule 43
matters. Divorcing litigants are confined to the filing of two
sets
of affidavits only, yet other litigants are not. This found that this
position cannot be seen as anything but discriminatory
and must be
inconsistent with the constitution.
Financial
Disclosure
–
Supporting
documents
-
The provisions of Rule 43 limit
the annexures a party may attach to her affidavit. However, the court
must be made privy to all
relevant supporting documentation in order
to arrive at a just and equitable determination of the disputes
relating to maintenance
and a contribution to legal costs.
Rule
43
–
Contribution to legals
costs
- The court restated the
principle that the court must exercise its discretion under rule 43
in the light of the fundamental
right to equality and equal
protection before the law. An applicant will not enjoy equal
protection unless he or she is equally
empowered with ‘the
sinews of war’.
F. BEZUIDENHOUT AJ:
INTRODUCTION
[1]
It is an indisputable fact of
history that the only constant is change. The law and the Uniform
Rules of Court should be no exception,
more particularly the
provisions of rule 43.
[2]
This rule 43 application came before
me as a special allocation in terms of a directive issued by the
Deputy Judge-President of
this Division.
[3]
Essentially, the applicant (the
plaintiff in the pending divorce action) claims for an order
appointing a psychologist to conduct
an investigation into the best
interests of the minor boy child, D, who is presently 16 years of age
. She also claims for interim
spousal maintenance and a contribution
towards her legal costs. The applicant instituted a divorce action
against the respondent
in his personal capacity but also in his
nomine officio
capacity as trustee. There are no less than 15 defendants cited in
the divorce action. Both the application and the divorce action
are
vigorously opposed.
[4]
Due to the sheer volume, I requested
a hard copy set of the papers before the hearing, which was promptly
delivered to me in five
lever arch files. The files contained copies
of the pleadings in the pending divorce action, both affidavits filed
in the Rule
43 proceedings, the parties’ completed Financial
Disclosure Forms (“
FDF”
)
together with the supporting documents. The parties thereafter filed
supplementary affidavits accompanied by the required application
for
leave to do so.
HAS
UNIFORM RULE 43 STOOD THE TEST OF CHANGE?
[5]
An all too familiar mantra chanted
by courts is that rule 43 papers most often fail to focus attention
on material issues and are
riddled with emotive, inappropriate and
irrelevant vitriol.
[6]
A
mere glance at the files in this matter, let alone their content,
would more often than not illicit the immediate reaction from
the
presiding judge that the parties have flagrantly disregarded the
provisions of rule 43, which provides for the delivery
of
a sworn statement in the nature of a declaration, setting out the
relief claimed and the grounds therefor and the delivery of
a sworn
reply in the nature of a plea.
This
initial reaction may invariably dictate the fate of the application:
a postponement or a dismissal.
[1]
Neither outcome leads to any speedy resolution as envisaged by the
rule.
[7]
In
Dodo
[2]
it
was held that in special circumstances deviation from this norm may
be justified. In
E
[3]
the
full court, however, held that the court does not have a discretion
to permit departure from the strict provisions of
rule 43(2) and (3)
unless it decides to call for further evidence in terms of rule
43(5).
[8]
Although
I do not for one moment exclude or ignore the instances where
affidavits do contain irrelevant matter and are of no assistance
to
the court, I am not convinced that the default position of chastising
parties for the length of their papers is fair or justified
when
considering how the world has changed faster than anyone could have
imagined, yet the provisions of rule 43 have largely remained
untouched since their promulgation on the 12
th
of January 1965.
[4]
[9]
We find ourselves in the 21
st
century where the world is recognised as a global village, an
extended central nervous system connected by telecommunications,
the
media and the internet as a whole. The world became a global village
because a lot of things needed to change. There was a
need for
development and a need to bridge the gap between people of the world.
Yet, parties are expected to cast their case into
a mould which was
designed more than half a century ago.
[10]
In my view it is simply wrong and
causes an injustice to the parties, when the manner in which they
present their case is judged
against the backdrop of an archaic rule
that has unfairly stood the test of time in its current form. This is
especially so where
divorcing parties who seek interim relief, are
confined to the employ of the provisions of rule 43. They are
not spoiled for
choice as those who litigate in terms of rule 6 and
who are not limited in any manner to present their case. This is how
it should
be as it is in keeping with a legal system infused with
constitutional values.
[11]
The
right to equality and a fair trial is at the heart of rule 43
matters. Divorcing litigants are confined, yet other litigants
are
not. This position cannot be seen as anything but discriminatory and
must be inconsistent with the constitution.
[12]
Divorce is a frequently messy and
invariably stressful business. Parties should not have to experience
the additional anxiety of
impractical and unjust restrictions imposed
by the rule when presenting their case.
[13]
The importance of interim relief
granted in rule 43 proceedings cannot be overstated. More often
than not, orders granted under
the provisions of rule 43 lead to the
speedy resolution of the divorce action, or at the very least, to a
limiting of the disputed
issues. Rule 43 proceedings are in this
regard particularly useful where the court hearing the rule 43
application is armed
with all the facts and supporting documentary
evidence to equip it to arrive at a proper determination of the
issues.
[14]
The
courts have to a great extent acknowledged the importance of rule 43
applications.
TS
[5]
and
E,
are
prime examples
.
A
court has the power to manage and order financial disclosure of
financial information and specified financial documents regarding
the
parties’ income, expenses, assets and liabilities. This
division has pioneered the establishing of a specialised family
court, thereby lending credence to the importance of family law and
related matters. How is it then that parties are still
limited
to depose to affidavits akin to sworn statements and replies with
very few annexures, and, to add insult to injury, are
limited to two
sets of affidavits only ?
[15]
The
time has clearly arrived for
a
dire and urgent reform of the rule. This will achieve a proper
ventilation and determination of the issues. It will obviate the
time
wasted in raising and entertaining technical points such as the
length of the affidavits and the hearing of applications for
leave to
file replying affidavits.
THE
FDF DILEMMA
[16]
I would be remiss if I did not raise
the practical difficulties experienced with the application of the
directive relating to the
filing of FDF’s. The form states that
when it is delivered to the opposing party, it must be accompanied by
all supporting
documents mentioned in the body of the form. It then
goes on further to state that no supporting documents must be filed
in court.
This creates an obvious conundrum. The provisions of Rule
43 limit the annexures a party may attach to her affidavit.
TS
and E reinforced the importance of a
full financial disclosure in order to enable the court to arrive at a
just determination of
the financial disputes. Parties have exchanged
the supporting financial documents, but the court is not privy to
them. Consequently,
the parties cannot refer the court to the
supporting documents and the court is in no better position to
conduct an analysis of
the parties’ financial affairs.
[17]
This precarious position inevitably
leads to a contravention of the provisions of the FDF by legal
practitioners who upload the
supporting documents onto
caselines
/courtonline
with the
bona
fide
intention of presenting their
clients’ case in the best possible way, as they are duty-bound
to do. Courts are understandably
inconsistent in their approach when
allowing or disallowing the uploading of the supporting documents,
which instils uncertainty
in parties and legal practitioners. This is
unnecessary and can and should easily be remedied in my view by way
of a further directive
and the amendment of the standard FDF form.
THE
APPLICANT’S CLAIM
[18]
The applicant claims the following
relief in terms of her latest draft order provided to the court on
the 26
th
of January 2023: -
[18.1]
That psychologist, Mr Anthony Townsend, is
appointed to conduct an investigation into the best interests of the
minor child, D,
and to provide the parties and the court with his
written report setting out his opinions, findings and recommendations
regarding
the nature and extent of any interventions, including
therapeutic interventions that, in his opinion, are required and
appropriate
to restore the relationship between the applicant and D
as well as the manner in which the parties should exercise their
parental
responsibilities and rights, including care and contact in
respect of D;
[18.2]
That the respondent pays the costs of
Townsend directly to Townsend on demand, including any deposit
required by Townsend;
[18.3]
That D and both parties shall cooperate
with the process of Townsend to the full extent required by him
inter
alia
by attending all such interviews,
evaluations and assessments required by Townsend, completing all
questionnaires and/or other
forms and providing Townsend with all
information and/or documentation required by Townsend;
[18.4]
That both parties shall complete and sign
Townsend’s mandate upon receipt thereof from Townsend;
[18.5]
That the respondent shall pay a cash
monthly amount of R95 000.00 in respect of spousal maintenance
directly into the applicant’s
Capitec bank account, the first
payment in the amount of R95 000.00 (less the amount of
R30 000.00 already paid by the
respondent) in respect of
maintenance for January 2023 be paid forthwith and thereafter
all further payments to be paid on
the first day of each and every
succeeding month;
[18.6]
That the monthly cash contribution be
increased annually on the first day of the month succeeding the
anniversary date of the order
and every twelve months thereafter at a
rate of 6 % per annum;
[18.7]
That the respondent makes payment directly
to the creditor or service provider of the following monthly expenses
on due date: -
[18.7.1]
The medical aid premiums to retain the
applicant on her current medical aid scheme that she is currently a
dependent on as well
as any medical and dental expenses not covered
by the benefits of the medical aid scheme, excluding any elective
cosmetic and/or
orthodontic costs;
[18.7.2]
The levies, rates, taxes and all other
imposts, including water and electricity, homeowners and household
insurance, security and
alarm system costs in respect of the property
registered in the applicant’s name, being Erf X, Clifton,
Cape Town;
[18.7.3]
The insurance premiums in respect of the
BMW X5 and the Mini motor vehicle;
[18.7.4]
The reasonable cost of maintenance and
repairs in respect of the aforesaid motor vehicles;
[18.7.5]
The cost of licensing of the aforesaid
motor vehicles;
[18.7.6]
The premiums in respect of the applicant’s
existing life insurance policies, dread disease policies and
retirement annuity
policies;
[18.7.7]
That the respondent shall reimburse the
applicant by payment into the applicant’s Capitec account
within five calendar days
of production by her of an invoice and
proof of payment of all reasonable medical and dental expenses
incurred in respect of the
applicant;
[18.7.8]
That the respondent shall guarantee all of
the obligations of the lessee, ABC (Pty) Ltd, in respect of the lease
concluded between
ABC (Pty) Ltd and DEF (Pty) Ltd in respect of the
apartment situated at Unit Y, The Houghton Hotel, Houghton
Estate, namely: -
[18.7.8.1]
Payment of the monthly rental in the sum of
R33 000.00, which includes the costs of water, electricity,
domestic effluent and
meter reading fees;
[18.7.8.2]
Any reasonable market-related escalation to
the rental at the expiry of the lease, should the applicant elect to
remain in occupation
of the property, together with the costs of
water, electricity, domestic effluent and meter reading fees;
[18.7.9]
Payment of the cost of DSTV and Wi-Fi;
[18.7.10]
That the respondent shall pay a first
contribution towards the applicant’s legal costs in the sum of
R6 million by making
payment into the applicant’s
attorneys’ trust account as follows: -
[18.7.10.1]
R1 million within 48 hours of the grant of
the order;
[18.7.10.2]
R2 million by no later than 28 February
2023;
[18.7.10.3]
The balance in equal monthly instalments of
R500 000.00, the first such instalment to be paid on or before
28 March 2023
and thereafter on or before the 28
th
day of each following month until the full amount has been paid;
[18.7.11]
That the respondent shall pay the costs of
the application, including the costs of senior counsel.
THE RESPONDENT’S
TENDER
[19]
The respondent’s draft order
presented to this court on 16 January 2023 contained the
following tender: -
[19.1]
The respondent would pay a cash monthly
amount of R40 000.00 to the applicant and that this amount shall
be increased annually
on the first day of the month succeeding the
anniversary date of the order and every twelve months thereafter at
the Consumer Price
Index;
[19.2]
The respondent would make payment of the
following monthly expenses: -
[19.2.1]
The monthly medical aid premiums to retain
the applicant as a dependent on the medical aid scheme she is
currently a dependent on;
[19.2.2]
Insurance premiums in relation to
disability, life and dread disease cover, such premiums to be paid
directly to the insurer;
[19.2.3]
The monthly insurance premiums in respect
of the BMW X5 and the Mini motor vehicles;
[19.2.4]
The reasonable cost of maintenance and
repairs of the motor vehicles, subject to the respondent agreeing in
advance to the cost
as quoted by any service provider in writing and
prior to any work being commenced with on either vehicle and on the
basis that
both parties are entitled to require competitive
quotations for any maintenance work or repairs required for either
motor vehicle;
[19.2.5]
The annual cost of licensing the motor
vehicles, provided that the applicant furnishes the respondent with
any documentation or
information necessary and requested by the
respondent for the licensing of the vehicles timeously;
[19.2.6]
The respondent shall reimburse the
applicant by payment into the applicant’s bank account within
seven calendar days of production
by her of an invoice and proof of
payment of all reasonable medical and dental expenses, excluding
elective cosmetic and/or aesthetic/beautification
and/or orthodontic
expenses not covered by the medical aid, subject to the applicant
obtaining the respondent’s written consent
before incurring a
medical expense in excess of an amount of R2 000.00 per event,
save in the event of a medical emergency;
[19.2.7]
The respondent shall guarantee the
obligations of the lessee, ABC (Pty) Ltd, in respect of the lease
concluded between ABC (Pty)
Ltd and DEF (Pty) Ltd, namely: -
[19.2.7.1]
Payment of the monthly rental in the sum of
R33 000.00, which amount includes the cost of water,
electricity, domestic effluent
and meter reading fees as provided for
in the signed lease agreement;
[19.2.7.2]
The payment of any reasonable
market-related escalation to the rental at the expiry of the current
lease agreement, should the applicant
remain in occupation of the
property;
[19.2.8]
The monthly cost of the applicant’s
DSTV and Wi-Fi;
[19.2.9]
Each party to pay their own costs of the
application.
[20]
The respondent made no tender for a
contribution towards the applicant’s legal costs.
[21]
On the second day of the hearing,
that is the 26
th
of
January 2023, the respondent presented a new draft order which
included an improved tender. The material difference
between the two
tenders may be summarised as follows: -
[21.1]
The respondent increased the monthly cash
contribution from R40 000.00 to R60 000.00;
[21.2]
The respondent tendered an annual increase
of the monthly cash contribution at the rate of 6 % per annum;
[21.3]
Regarding the applicant’s medical
expenses, the respondent requires his written consent before
incurring a medical expense
in excess of an amount of R6 000.00
per event, save in the event of a medical emergency;
[21.4]
The respondent tendered a contribution
towards the applicant’s legal costs in the amount of
R3 123 453.00, which
would be paid as follows: -
[21.4.1]
R963 453.00 within 48 hours of the
grant of the order;
[21.4.2]
R650 000.00 by no later than the 28
th
of February 2023;
[21.4.3]
R1 200 000.00 by no later than
the 28
th
of February 2023;
[21.4.4]
R310 000.00 by no later than the 28
th
of February 2023;
[21.5]
The costs of the application to be costs in
the divorce action.
SUPPLEMENTARY
AFFIDAVITS
[22]
The applicant filed a supplementary
affidavit on the 17
th
of January 2023. The affidavit included an application for leave
to file a further affidavit. According to the applicant,
the need for
a supplementary affidavit was occasioned by certain information that
came to her knowledge pursuant to a subpoena
duces
tecum
which was issued against
Discovery Insure in respect of claims made by the respondent to
support losses incurred during the period
1 January 2021 to
1 November 2022, including documents relating to such
claims. The documents under subpoena
were provided to the applicant’s
attorneys of record on the 2
nd
of December 2022. The documentation revealed that on the 24
th
of December 2021 Discovery Insure made payment to an entity, TP
Investment (Pty) Ltd (“
TP
”)
of four separate amounts totalling R963 423.00 and on
22 September 2022 under the same claim number paid
the
respondent an additional amount of R276 860.00.
[23]
The respondent filed a supplementary
answering affidavit. He objected to the filing of a further founding
affidavit by the applicant
and described the attempt to do so as an
abuse of process. However, the supplementary answering affidavit in
my view went far beyond
the scope of the supplementary founding
affidavit. The respondent glibly dealt with the statement and
supporting documentation
that Discovery Insure honoured payment in
respect of these claims: -
“
The
claims were legitimately and validly submitted and paid with the
assistance of my insurance broker.”
[6]
[24]
Ms Segal, who appeared on behalf of
the respondent, did not, wisely in my view, vigorously oppose the
application for leave to file
a further affidavit.
[25]
The issues raised in the
supplementary founding affidavit are material in the determination of
the rule 43 application. The
amount of time that counsel spent
on making submissions in relation to the content of these affidavits,
is demonstrative of this
fact. I accordingly ruled that both
supplementary affidavits would be permitted.
THE
ADMISSIBILITY OF ANNEXURES “DM7” and “DM9”
[26]
The respondent in his answering
papers, objected to the admissibility of two documents attached to
the founding papers. These documents
reflect
inter
alia
the respondent’s assets and
liabilities. The basis of the respondent’s objection was that
these documents were provided
by him on a without prejudice during
settlement or mediation discussions. It was not the respondent’s
case that the information
reflected on the documents were incorrect
or unauthentic.
[27]
The respondent did not bring an
application to strike out these annexures. Ms Segal for the
respondent, was constrained in her argument
to strike out the
annexures in the absence of an application to strike out and left the
decision whether to admit the documents
in the hands of the court.
[28]
The respondent, for reasons dealt
with later, has not been forthcoming with his financial disclosure.
In addition, he does not dispute
the correctness of these documents.
The parties’ financial positions lie at the root of this
application. The annexures are
therefore admitted into evidence.
THE FACTS
[29]
The applicant is a 54-year old
woman. She describes herself as a housewife. This is denied by the
respondent who states that the
applicant is a football club owner and
manager.
[30]
The respondent is a businessman and
a qualified chartered accountant. This is common cause.
[31]
The parties married on 13 March 1994
out of community of property in terms of an antenuptial contract
which incorporated
the provisions of the accrual system as provided
for in chapter 1 of the
Matrimonial Property Act, 88 of 1984
. In
terms of the antenuptial contract: -
[31.1]
the respondent excluded from the accrual
all life endowment insurance policies and retirement policies taken
out by him on his life
and declared that the net value of his estate,
excluding insurance policies at the commencement of the marriage, was
R2.3 million;
[31.2]
The applicant declared that the net value
of her estate at the commencement of the marriage was R50 000.00.
[32]
Three children were born of the
marriage. The eldest daughter, S, is a major and an accountant
previously employed in such capacity.
S resides with the respondent
and D in an apartment in the northern suburbs of Johannesburg. S has
been joined in the main divorce
action as the fifth defendant by
virtue of her direct and substantial interest in the action.
[33]
L, the parties’ second born
child, is a major and unemployed. She obtained a B.Com degree from
the University of Witwatersrand
and presently resides separately from
the respondent with her boyfriend in the same complex. L is cited in
the main action as the
sixth defendant in that she may have a direct
and substantial interest in the judgment of the trial court in
respect of certain
of the relief claimed by the applicant in the
divorce action.
[34]
D, the only and youngest son, is a
grade-10 learner at a private school in Johannesburg. He resided with
the applicant at the former
matrimonial home until approximately
10 October 2021 when he, without prior discussion with the
applicant, went to live
with the respondent at The Houghton.
[35]
It is common cause that the marriage
relationship between the parties has irretrievably broken down.
[36]
It is further common cause that the
parties attempted mediation prior to the institution of the divorce
action. The mediation was
unsuccessful.
THE DIVORCE ACTION
[37]
During September 2021 the
applicant instituted a divorce action against the respondent in his
personal capacity, cited as the
first defendant, and in his
representative capacity, cited as the second defendant and thirteen
others in which action the applicant
claims various forms of relief
as more fully set out in the particulars of claim. The applicant
claims against the respondent in
his personal capacity
inter alia
a decree of divorce, lifelong maintenance and an amount equal to one
half of the difference between the net accruals of the parties’
respective estates.
[38]
The applicant cited the respondent
as the second defendant in his representative capacity as: -
[38.1]
a trustee of The H Trust, a South African
Trust which has registered in its name two luxury apartments situate
in a development
known as The Houghton, both of which are rented to
tenants;
[38.2]
protector of The S Trust which holds
inter
alia
the shares in BPH Ltd BVI, the
shares in BB Ltd BVI and SI Ltd BVI;
[38.3]
settlor and protector of the B Trust;
[38.4]
settlor and protector of the C Trust.
[39]
Save for The H Trust, all the other
mentioned Trusts are situated in the British Virgin Islands and hold
substantial assets worth
several hundreds of millions of Rands.
[40]
The applicant states that there are
at least two additional trusts, namely the SM Trust, which is a Trust
situated in the BVI and
the OS Trust. The SM Trust, according to the
respondent’s pleadings, owns the shareholding in two private
USA companies,
which companies are the registered owners of two
valuable apartments in New York City, namely: -
[40.1]
X Place, which the respondent attributed a
value of R80 million; and
[40.2]
Y Street, which the respondent attributed a
value of R27 million.
[41]
The PS Trust reflects the respondent
as the settlor and the trustee as one Peter Rosenberg who
resides in Pennsylvania, USA.
[42]
The applicant cited the third
defendant as the registered owner of a luxury property in Clifton.
She alleges that the third defendant
holds this property as nominee
for the respondent. The respondent alleges that the third defendant
is not the beneficial owner
and claims that it is in fact the BPH Ltd
BVI, whose shares are held in the S Trust.
[43]
The third defendant raised an
exception to the applicant’s particulars of claim, which
exception is yet to be determined.
[44]
The trustees of the BVI Trusts, WH
Ltd BVI and Intelligent SI Ltd BVI have not entered an appearance to
defend.
[45]
The S, B and FM Trusts have within
their structures properties to the value of approximately
R166 million, on the respondent’s
version.
[46]
The eighth defendant is a trustee of
a Mauritian Trust, however, no further information has been provided
in regard to this Trust.
The Trust representative, Peter Todd,
declined to provide any further information unless requested by a
Mauritian court process.
LIFESTYLE OF THE
PARTIES AND THE FAMILY
[47]
It
can hardly be persuasively argued by the respondent that the family
has not lived a life of extravagance and luxury. The description
by
D, the parties’ youngest son says it all: “
We’ve
lived like the richest people in the world..”
[7]
[48]
The
former matrimonial home has been described by the respondent as a
palatial home in the northern suburbs of Johannesburg, which
property
is registered in the name of TP, a non-trading company. On the
respondent’s own version the former matrimonial home
was
beautifully renovated with expensive furnishings, mostly paid by the
companies owned by the Trusts. The trustees were prepared
to pay for
the renovations and the majority of the invoices were sent to the
trustees and paid by them.
[8]
[49]
To
mention but a few of the luxurious furnishings, a diamond bathtub
imported from the United Arab Emirates and valued at $19 797.00
was installed in the applicant’s ensuite bathroom, and a
crystal chandelier of five metres long and five metres in diameter
to
the value of $54 772.60 was erected above the staircase.
[9]
Clearly no expense was spared.
[50]
The family holidayed locally at
luxury homes in Clifton and were able to enjoy holidays abroad during
the course of which they purchased
luxury items under designer
labels, including Dolce & Gabbana, Gucci and Louis Vuitton.
The respondent purchased designer
handbags and sunglasses as gifts
for the applicant.
[51]
At
some stage the parties intended to emigrate as a family to the USA
and the respondent stated that he is hopeful that he would
be able to
afford the fees of L to study abroad and be accepted into an American
College.
[10]
[52]
Even after the irretrievable
breakdown of the marriage and separation of the applicant and the
respondent, the respondent and the
children continue to live a lavish
lifestyle which includes: -
[52.1]
Holidaying
in Zanzibar and in the USA in mid-2021. The respondent admits that he
purchased goods abroad and claims that this holiday
was funded from
the proceeds that he received from the sale of study material in
January 2020 in the amount of $100 000.00;
[11]
[52.2]
Rented
two apartments in October 2021, one for himself, S and D at
R60 000.00 per month and one for L and her boyfriend at
the rate
of R33 000.00 per month;
[12]
[52.3]
Arranged an overseas holiday for himself
and D to the UK in November/December 2021;
[52.4]
Frequently travelled to Cape Town on his
own or with the children for holiday breaks;
[52.5]
Holidayed in Israel and London in
April 2022 with D, S and L;
[52.6]
Holidayed twice with S in late June/early
July 2022 in New York and Turkey;
[52.7]
Paid for a holiday for S to Israel by
herself;
[52.8]
Paid for an overseas school trip for D to
holiday in Israel in July 2022;
[52.9]
Visited Spain with D in August 2022;
[52.10]
Bought expensive designed items and other
goods and purchased expensive gifts for third parties.
THE RESPONDENT’S
INCOME
[53]
In his answering affidavit, the
respondent tells the court that he has always been involved in the
field of education. His main
source of income prior to 2017 was
derived from the rendering of services to various local education
companies. These companies
tendered for contracts with the Department
of Education for the supply of hardware which incorporated a software
package. The respondent
alleges that this source of work is no longer
available to him due to an adverse and false media release in 2016
which alleged
that one of the companies he was employed by was
complicit in tender rigging. The adverse media release also led to a
SARS enquiry
related to the company which tendered for the work and
in regard to the respondent personally as he was a director of the
company
in question. As a consequence, the respondent alleges that he
has been battling to secure work and now provides educational
consulting
services in order to earn an income.
[54]
As
far as his current educational consulting services are concerned, the
respondent alleged that he currently provides educational
consulting
services on a contract basis and that he would provide copies of the
invoices that he has rendered for the period January 2020
to
date. He stated that he nets approximately R180 000.00 per month
or R2.16 million per annum from this endeavour.
[13]
[55]
The respondent states that:
“
If
the status quo relation to the family’s expenses is preserved,
[his] income should be sufficient to provide for the expenses,
and if
not, [he] will be required to loan a small amount to provide for the
family’s reasonable requirements.”
[14]
[56]
The
respondent admits that he generates a rental income from three
properties registered in his personal name, however, he alleges
that
the rental from these properties had been utilised for many years to
reduce the mortgage bonds and to pay for unexpected maintenance
and
repairs that are required from time to time.
[15]
[57]
The respondent left it to his
counsel to analyse the invoices rendered by him, to calculate the tax
liability and to arrive at a
net monthly income. These are facts one
would reasonably expect to be stated by the respondent under oath in
his answering papers.
[58]
The
calculation exercise embarked upon by the respondent’s counsel
revealed an average net monthly income of R189 107.00
over a
period of 26 months. This calculation does not take into account
the once-off payment of $100 000.00 that the
respondent received
in February 2020. Divided over a period of 26 months, this
amount equates to an additional R60 000.00
per month.
Consequently the argument was therefore made on behalf of the
respondent that his net monthly income equates to R257 730.00.
This is a far cry from the net monthly amount of R180 000.00
disclosed by the respondent under oath.
[16]
[59]
If accepted that the amount of
R257 730.00 is a true reflection of the respondent’s
monthly income, it was submitted
that when subtracting the
respondent’s monthly expenses of R294 100.00 per month,
the respondent experienced a monthly
shortfall of R44 000.00,
which would be covered by loans.
[60]
The fact of the matter is that the
respondent’s numbers and versions simply do not add up. I say
so for,
inter alia
,
the following reasons: -
[60.1]
The respondent attached to his financial
disclosure form (FDF) a 2020 tax assessment in which his gross income
for the year of assessment
was reflected as R39 163.00 and his
taxable income as R28 093.04;
[60.2]
In his FDF, the respondent estimated his
net income from self-employment for the next 12 months as unknown;
[60.3]
His total monthly expenses of R294 100.00
do not include the applicant’s spend on the TP credit cards or
her other expenses
that are and have been paid by the respondent;
[60.4]
The respondent has not disclosed all his
bank accounts or accounts in which he has an interest, nor did he
provide the required
six months of bank statements in respect
thereof. Amongst others, the respondent has not provided copies of
the bank statements
for the Standard Bank CB FC Standard Bank
account, foreign bank accounts in the USA and the UK, including bank
statements for the
following Barclays accounts: -
[60.4.1]
Savings Reserve Account;
[60.4.2]
Foreign Currency Premier World Account;
[60.4.3]
Foreign Currency Reserve Account;
[60.4.4]
A second Foreign Currency Reserve Account;
[60.5]
The respondent failed to disclose any of
the bank accounts in the name of TP and he has furthermore not
disclosed the earned rental
income from three apartments that he owns
in London;
[60.6]
His tax returns submitted to His Majesty’s
Revenue Service in the United Kingdom are particularly telling. The
respondent
marked all the requested information in the 2019 tax
return as not applicable;
[60.7]
On the 18
th
of
February 2019 the respondent received correspondence from Her
Majesty’s Revenue and Customs informing him that
the 2018 to
2019 tax return could not be accepted as it was missing the residence
remittance basis supplementary pages. The respondent
was charged
penalties for the late filing of his tax returns;
[60.8]
On
the 8
th
of April 2019 the respondent seemingly replies to the enquiry in
manuscript. The letter is not addressed to anyone in particular
and
no proof of transmission is attached. Copies of 2019 and 2020 tax
returns follow, but are in most instances scantily completed
and
indication that the returns have been submitted or assessed. Yet, the
respondent insists on corresponding with Her Majesty’s
Revenue
Services in manuscript and again without submitting any proof of
transmission or receipt;
[17]
[60.9]
The respondent failed to disclose copies of
bank statements for the Barclay account number XXXXX, which is an
account into which
regular transfers of approximately £10 000.00
monthly are paid;
[60.10]
The respondent failed to disclose bank
statements relating to the Discovery credit card or the two Visa
credit cards in the name
of PH LLC or MR LLC;
[60.11]
The
respondent also skirted the issue regarding the settling of the
mortgage bonds over the three London apartments and how this
was
extinguished. In his FDF he alleges debt owing to BPH BVI in the sum
of £869 852.00 in respect of loans owing for
these
properties;
[18]
[60.12]
The consulting invoices rendered by the
respondent also requires closer scrutiny. He tendered invoices for
the period January 2020
to July 2022. The applicant
complains that despite a number of requests, the respondent has not
provided invoices for the
period January 2020 to December 2020.
The invoices that have been provided are addressed to ABC (Pty) Ltd.
The respondent’s
daughter, A, is the director of ABC (Pty) Ltd.
The invoices bear no VAT number and no address, and they do not
provide any detail
of the services rendered either;
[60.13]
The
respondent alleges that he obtained loans from time to time from
entities owned by the Trusts in order to supplement his income
and to
provide for the family’s expenses. In fact, according to the
respondent as at December 2020 his loans totalled
approximately
R25 million. These loans have since increased to R31 902 100.00
without any explanation for the increase
or why the directors of the
companies who have loaned money to him permit such loans or how the
loans are going to be repaid or
what the terms of the loans are,
including interest;
[19]
[60.14]
Moreover, it seemed particularly difficult
for the respondent to explain away the letter of wishes he addressed
to the S Trust on
the 9
th
of January 2019
where he stated as follows: -
“
During
my lifetime I would like you to take note of my wishes I may have
from time to time make known to you in connection with
the
administration of the Settlement and the distribution of capital and
income. In particular I would like you to pay me such
part or parts
of the capital and income as I may from time to time request.”
[20]
[60.15]
The aforesaid statement is unequivocal and
unambiguous and demonstrates that the respondent has access to
additional financial resources,
which include the assets and funds of
the BVI Trusts, the H Trust and the various entities whose bank
accounts are under his direct
or indirect control.
[61]
I simply cannot ignore WhatsApp
correspondence that the respondent addressed to the applicant on the
7
th
of
September 2020 when he left the matrimonial home: -
“
I
don’t want to fight with you or anyone – it must just be
amicable – we can carry on as is –
money
no issue
– just need to share everything.”
[21]
(emphasis
added)
[62]
More than a year later, the
applicant received a WhatsApp message purportedly drafted by D. The
following was said: -
“
We
have no problem being fair and everyone living well but we won’t
allow your approach to succeed.”
[63]
That the respondent is financially
savvy and an innovative strategist when it comes to business and the
structuring of his financial
affairs is unquestionable. One such
example is his actions in 2020 when he approached a mutual friend of
the parties who lives
in Canada with the following proposal: -
“
I
have to think of the worst scenarios and so anything that I own or
even that is not owned by me but linked to my sister or family
I need
to brake (sic) the chain – the only way we do that is to sell
Move the proceeds somewhere safe – because this
is our house
and where we live we can’t contemplate actually selling it and
moving out – hence the solution to sell
it but also be able to
live in it etc…”
[64]
This
proposal was made at a time when the respondent was concerned that
the matrimonial home may be at risk because of a SARS investigation
into one of the companies earlier referred to.
[22]
[65]
The
respondent does not deny the fact that he made such a proposal.
[23]
[66]
The respondent’s knack for
business is exemplary on his own version: -
“
I
can make money over and over again in my sleep and I will do so after
this divorce.”
[24]
[67]
On 8 January 2021 the respondent
sent the applicant a WhatsApp message and said that: -
“
If
I haven’t taken on this BLT
[25]
obligation I would have officially retired and wanted to spend the
rest of my life enjoying what I have slaved for 26 years –
so
unfortunately I will see it through and after that when it has ended
I intend to retire and live and enjoy and just be there
for the
kids.”
[26]
[68]
Again
the respondent does not deny these statements he made. He attempts to
explain them away by stating that they were made in
anger and
disappointment at the manner in which the applicant was seeking to
obtain benefits to which she was not entitled.
[27]
What those benefits are, is not stated.
[69]
The
respondent receives rental income from two Clifton properties, one
registered in the name of the applicant and one registered
in the
name of the respondent’s nominee. The applicant complains that
she asked the respondent to provide details of the
rental income,
which he has failed to do.
[28]
[70]
A search on an Airbnb website
reveals that the respondent is the host of the property held by his
nominee. The daily rental for
early December 2022 was
R14 000.00. The property was shown as being unavailable for
rental from the 9
th
of December 2022 to the 28
th
of January 2023, therefore a total of 51 days @ R14 000.00
per day. The rental income earned would be approximately R714 000.00.
[71]
On the 8
th
of January 2021 the respondent, following the applicant’s
request that he accounts to her for the rental income in respect
of
the two Clifton properties, stated as follows: -
“…
There
are about 14 properties as you know – if you want an update on
Clifton then please handle all 14 – please think
carefully what
you ask you…
I’m quite happy
to have much less responsibility now as I want to start enjoying the
lost years where all I’ve done
is literally worked – I’m
happy to let you run it...
Either
I continue to be the person who runs these things and ensures the
family has income and capital to live on forever and I’m
trusted to do this otherwise I want nothing to do with any of it –
I’m not updating you on every rental and every rental
enquiry.”
[29]
[72]
The respondent’s answer leaves
much to be desired: -
“
The
quotation in this paragraph does not demonstrate that I receive
income from the properties personally but simply that I manage
the
properties and have done so for years. I reiterate that I do not
receive any personal income from the properties. This income
is used
to service bonds, maintain the properties and pay the expenses and
holding costs of the properties.”
[30]
[73]
I was not impressed by the
respondent’s lack of disclosure, his fobbing off of critical
issues and is campaign of secrecy.
The respondent approached this
court with a disclosure of his financial affairs in the same way as
he has done with the applicant
throughout their marriage – on a
need-to-know-basis. A constant theme throughout the applicant’s
papers is the various
attempts she had to make and the legal costs
she had to incur in order to procure documentation regarding the
respondent’s
financial affairs, his business, and his assets,
whether directly or indirectly controlled by him. This is not the
conduct one
would expect of a litigant who is eager to resolve the
disputes.
THE APPLICANT’S
INCOME
[74]
The
applicant is a housewife and a director of CB FC, a non-profit
organisation which carries on the business of coaching football
to
children and sponsors a number of children whose parents are unable
to pay. Although the respondent describes the applicant
as a football
club owner and manager and surmises that she is baking goods which
she sells,
[31]
the income that
the applicant withdrew from CB FC is common cause.
[32]
[75]
The
respondent does not deny the fact that the applicant has been
financially maintained by him and that she is financially dependent
on him.
[33]
[76]
The
respondent also does not deny the fact that during February 2020
he gave the applicant a corporate credit card in the name
of TP to
replace her existing credit card. Her expenses on the card were paid
by TP and/or the respondent. At the time he provided
the applicant
with the TP credit card, he did the same for S and L. The applicant
tells the court that she used the TP credit card
to pay for certain
of her own personal expenses and some of the household expenses.
[34]
None of the statements are denied by the respondent.
[35]
[77]
In
December 2021, the respondent told the applicant that he would
reduce the limit on the TP credit card that the applicant
used from
R100 000.00 monthly to R50 000.00 monthly. He alleged that
this was a necessary cost-cutting measure to save
the family from
financial ruin and because the applicant was spending more than she
previously spent. With effect from 27 December 2021
the
limit on the TP credit card was reduced to R50 000.00 monthly
and thereafter the respondent refused to pay for other expenses
that
he had previously paid for. Clearly his conduct was punitive and was
designed to pressurise the applicant as alleged by the
applicant in
her founding papers.
[36]
[78]
In the premises and on a
consideration of the allegations contained in the founding and
answering papers in response, the respondent
can hardly deny the fact
that the applicant is financially dependent on him. To be fair to the
respondent, he has to a certain
extent acknowledged this fact by
virtue of the maintenance tenders that he has made in the two draft
orders provided to the court
prior to and during the argument of this
application. It is accordingly more a question of how much the
applicant requires as opposed
to her entitlement to maintenance.
THE PARTIES’
EXPENSES
[79]
In
addition to the use of the TP credit card, the applicant in her
founding papers listed numerous additional expenses paid by various
entities or by the Trusts for her benefit.
[37]
These included the salaries of two domestic workers, a gardener,
rates, taxes, imposts, water, electricity in respect of
the former
matrimonial home, the cost of holidays, air tickets, luxury
accommodation, motor vehicles, educational costs of children,
entertainment, gifts, the applicant’s cellphone, DSTV and
security alarm systems.
[80]
The
respondent embarked on what he refers to as a simple matter in order
to determine the
status
quo
in relation to each family member’s monthly expenses. This
exercise entails the examination of each family member’s
personal credit card statements.
[38]
[81]
The respondent prepared what he
alleges to be an analysis of the applicant’s monthly expenses
from time to time and extracted
in part from the TP credit card
statements. However, it very quickly becomes clear that the approach
employed by the respondent
is flawed. His analysis include items not
incurred by the applicant on her credit card and he estimates other
categories of other
expenses. The respondent does not set out the
basis for his estimates either. He discloses a schedule prepared by
him of the family’s
total expenses over a period of time, but
fails to disclose the source of these expenses.
[82]
During argument it was the
respondent’s incantation that the applicant has unjustifiably
increased her expenses since July 2021.
However, what the
respondent fails to consider is the applicant’s allegation that
she had access to other funds, namely cash
and the respondent’s
own Standard Bank account. The respondent also takes into account
that the period of his analysis included
a time when Covid lockdown
regulations were imposed and which by its very nature would have
impacted on the amounts spent by the
applicant.
[83]
During argument, Ms Woodward
for the applicant made certain deductions from the applicant’s
list of expenditure. These
expenses relate to a time when the
applicant resided in the former matrimonial home. The applicant’s
initial claim as formulated
in her notice of motion of the amount of
R100 000.00 was therefore reduced to an amount of R95 000.00
per month.
[84]
On
the respondent’s own version the applicant’s monthly
expenses amount to R85 465.00 per month. This amount includes
the direct costs paid by the respondent.
[39]
I take into account that the rental amount estimated at the time was
R20 000.00 and not the rental amount currently
incurred. Having
said that, I must also take into account that this is not a direct
expense paid by the respondent personally,
as is the case with some
of the other expenses which the respondent has undertaken to pay
directly.
[85]
According
to the respondent’s FDF, his personal monthly expenses,
excluding those expenses of the children, amount to R119 350.00.
[40]
[86]
Although the respondent’s
figures for day-to-day expenses seem substantially lower than those
of the applicant, I cannot ignore
the fact that the respondent’s
regular trips abroad, the travelling costs associated with such trips
and the international
spending that have not been disclosed. and
accordingly I must find that his monthly expenses as reflected in the
FDF are not commensurate
with his lifestyle.
[87]
I have thoroughly considered the
amount claimed by the applicant and compared it with the standard of
living of the parties and
the continued lifestyle of the respondent
and the children. Although the respondent continues to live the life
of Riley, I am of
the view that some of the applicant’s
expenses are exorbitant and have been justifiably criticised by the
respondent. The
amounts claimed for food, groceries, cleaning
materials, lunches and dinners, clothing and shoes, haircare and
beautification,
entertainment and recreation, and allocations for
local and international holidays come to mind. I have taken this into
account
in arriving at a reasonable and necessary maintenance figure.
CONTRIBUTION TOWARDS
LEGAL COSTS
[88]
The applicant claims a significant
contribution towards costs. It is also her first application for a
contribution towards her legal
costs.
[89]
The issues on the pleadings as they
presently stand are
inter alia
as
follows: -
[89.1]
The reasons for the breakdown of the
marriage insofar as it is relevant to the applicant’s claim for
spousal maintenance;
[89.2]
The manner in which the parties should
exercise parental rights and responsibilities in respect of D;
[89.3]
The applicant’s entitlement to
spousal maintenance, the period for which such spousal maintenance
should be paid and the amount
of maintenance;
[89.4]
The identity of the assets which comprise
each of the parties’ respective estates, the value of each
asset and the extent
of their liabilities;
[89.5]
Whether the immovable property registered
in the name of the third defendant is beneficially owned by the
respondent;
[89.6]
Whether
section 4(1)(a)
of the
Matrimonial
Property Act should
be interpreted in accordance with section 39(2)
of the Constitution to provide that “
the
net value of the estate of a spouse includes the financial value of
assets held by a trust de facto or de jure controlled by
the spouse
that would have acquired and owned the assets in his own name but for
the trust”
;
[89.7]
Whether The H Trust is a sham and whether
the assets purportedly held by the Trust are the assets of the
respondent and fall to
be calculated in the accrual of his estate;
[89.8]
Whether the BVI Trusts are sham Trusts and
whether the assets purportedly held by each Trust are the assets of
the respondent and
fall to be calculated in the accrual of the
estate;
[89.9]
Whether the respondent is the beneficial
owner of the shareholding of SI (Pty) Ltd and whether Intelligent
Solutions Investment
Ltd BVI is the nominee for and on behalf of the
respondent and whether the thirteenth defendant should be ordered to
deliver the
shares in SI (Pty) Ltd to the respondent;
[89.10]
Whether the respondent is the beneficial
owner of the shareholding of TP and whether TP Ltd, a BVI company
which holds the shares
in TP, does so as nominee for the respondent
and should be ordered to deliver the shares in TP to the respondent;
[89.11]
Whether the respondent is the beneficial
owner of the entire shareholding of SME (Pty) Ltd and an order that
Catherine Saleleni
Malapila holds the shares as nominee for and on
behalf of the respondent and should be ordered to deliver the shares
in the fourteenth
defendant to the respondent;
[89.12]
Which party/ies should bear the costs of
the action.
[90]
The pending divorce action is
clearly not a fight that will settle any time soon. The issues are
complex and the potential funds
involved, significant.
[91]
There are also other assets held in
a Trust in Mauritius, as appears from correspondence dealt with in
the papers and additional
companies the respondent may or may not
beneficially own, including L7 (Pty) Ltd.
[92]
The
respondent in his answering affidavit simply refers to his plea filed
in the divorce action. He appears not to deny the applicant’s
assertion that she has no liquid assets with which to place her
attorneys in funds to cover legal fees and disbursements.
[41]
[93]
The
applicant states that she has to date paid her attorneys the total
sum of R966 900.00. This amount she paid by way of loans
and the
sale of jewellery.
[42]
[94]
The
respondent is not far behind. He states that he has to date incurred
an amount of R838 800.00 in regard to his personal
legal costs.
In addition, he paid R354 000.00 towards a firm of attorneys
appointed to represent the Trusts. Curiously the
respondent states
that he paid the aforesaid amount on behalf of the Trusts and via a
loan.
[43]
[95]
The
respondent states that he has managed to fund his personal legal
costs from his own income.
[44]
This is a luxury not afforded to the applicant. The respondent
suggests that both he and the applicant would have to approach
the
trustees for loans and/or a distribution in order to fund their legal
costs in the divorce.
[45]
[96]
Both parties have appointed senior
counsel to represent them in the divorce action. In addition, the
applicant has acquired the
services of a chartered accountant,
Mr DP Sabbagh, in order to provide a report in his capacity
as a forensic accountant
which sets out his opinion and the reasons
for his opinion as to the identity of the assets and the value of the
assets that comprise
the respective estates of the parties. The
respondent has retained the services of Prof Harvey Wainer,
a forensic accountant,
to advise and assist him. This demonstrates
that the respondent acknowledges the need for the appointment and
involvement of expert
witnesses.
[97]
The respondent acquired the services
of one Miko Louw (“
Louw”
)
to scrutinise the draft bill of costs provided by the applicant in
support of her claim for a contribution. The applicant submits
that
Louw’s opinion is of little assistance to the respondent as
there is no evidence that Louw has any knowledge of the
issues
between the parties, the complexity, the standard to which the
parties are litigating and what work would be required to
get the
matter trial ready.
[98]
Louw opines that the applicant’s
claim for two attorneys to do the same work is unjustified. I have
been informed by Ms Woodward
that Ms Steyn, the junior
attorney who acted for the applicant, is no longer in the employ of
Billy Gundelfinger Attorneys.
Ms Woodward therefore, albeit for
a different reason, deducted the allowance for Ms Steyn, but
correctly indicated that
the workload would now be solely carried by
Prof Gundelfinger, the senior attorney and proprietor of the
firm. Accordingly
these additional expenses insofar as it relates to
an increase in the hourly rate would have to be taken into
consideration.
[99]
Other than making a bald statement
that the applicant is not entitled to a contribution to costs for
interlocutory applications,
Louw does not explain why she says so. I
therefore do not follow the argument that this amount falls to be
deducted. The same applies
for the deduction of applications to
compel.
[100]
Louw criticises the disparity in the
hourly rates between Prof Gundelfinger and Ms Lowndes. Louw
motivates this critique
on the basis that litigants are entitled to
equal representation. This certainly in my view does not imply that
litigants are expected
to employ attorneys whose charge out
rates are exactly the same.
[101]
I also do not see how Louw can
express the view that the employment of two counsel is unnecessary in
circumstances where the respondent
has only employed the services of
one counsel. Whether the applicant is entitled to employ two senior
counsel, even where they
deal with different aspects of the divorce
action, is probably the more prudent question to ask.
[102]
Louw’s criticism raised
against the hours spent on preparing requests for further
particulars, notices in terms of rule 35(3)
and preparation for
the first day on trial, bolsters the applicant’s argument that
Louw was not privy to the issues on the
pleadings at the time she was
called upon to consider the draft bill of costs. In my view, if Louw
was provided with a copy of
the pleadings, the financial disclosure
and the affidavits filed in the rule 43 application, she would
have been hard-pressed
to criticise the amount of hours that would go
into preparing for a matter of this magnitude.
[103]
It deserves mentioning that it would
seem that the respondent is himself not too convinced that Louw’s
criticism of the draft
bill of costs can be accepted as gospel.
Although Louw reduced the applicant’s bill of costs to
R2 646 592.75,
the respondent tendered an amount of
R3 123 453.00, which is R476 860.25 more than Louw’s
estimation.
[104]
I accept Ms Woodward’s
argument that she excluded fees relating to the rule 43
application on the basis that the
applicant seeks the costs of the
application. However, in my view even in an instance where a court
should find that costs of the
application should be costs in the
divorce action, fees and disbursements occasioned by the rule 43
application ought not
to find its way in the estimate for a
contribution of the legal costs in preparation for the first day on
trial. I have already
indicated that I hold that the employment of
two senior counsel is unjustified in the circumstances and I will
take this into consideration
in my award for a contribution.
[105]
I must express grave concern
regarding one of the sources the respondent wishes to utilise in
order to make payment of the respondent’s
contribution towards
her legal costs, and that is the Discovery Insure insurance claim
money. According to the respondent
this claim is under
investigation for fraud. On the applicant’s version she is
entitled to a portion of the amount as a reimbursement
of the losses
that she suffered during a robbery. The dispute is ongoing.
Initially when this issue was raised during argument,
the respondent
tendered to place these funds in trust with an attorney pending the
finalisation of the dispute. On the 26
th
of January 2023 when the respondent tendered a contribution towards
the applicant’s legal costs, he instructed his counsel
to
inform the court that the first payment would be made by using the
insurance money. This surely cannot be done in light of the
circumstances and will no doubt cause further and unnecessary
litigation. I have therefore provided for this eventuality
in
my order.
APPLICABLE LEGAL
PRINCIPLES
[106]
An applicant in an application for
spousal maintenance must demonstrate that the respondent owes her a
duty of support, that she
has a need to be maintained, and that the
respondent has adequate resources to discharge this duty. Having
considered the evidence,
whether contested or uncontested, I find
that the applicant has discharged this duty. The only issue therefore
remaining is the
quantum of such maintenance contribution.
[107]
The
guiding principle in exercising the discretion which the court has
when considering a claim for a contribution towards legal
costs, was
formulated in
Van
Rippen
[46]
as follows: -
“…
The
court should, I think, have the dominant objecting view that, having
regard to the circumstances of the case, the financial
position of
the parties, and the particular issues involved in the pending
litigation, the wife must be enabled to present her
case adequately
before the court.”
[108]
In
Cary
[47]
Donen AJ referred to the constitutional imperatives of the
quality before the law. He observed at the outset that he was
required to exercise his discretion under rule 43 in the light
of the fundamental right to equality and equal protection before
the
law. He held that there should be “
equality
of arms”
in order for a divorce trial to be fair, and came to the conclusion
that: -
“…
Applicant
is entitled to a contribution towards her costs which would ensure
the quality of arms in the divorce action against her
husband. The
applicant would not be able to present her case fairly unless she is
empowered to investigate respondent’s financial
affairs through
the forensic accountant appointed by her. That is applicant will not
enjoy equal protection unless she is equally
empowered with ‘the
sinews of war’. The question of protecting applicant’s
right to and respect for and protection
of her dignity also arises in
the present situation, where a wife has to approach her husband for
the means to divorce him. I therefore
regard myself as being
constitutionally bound to err on the side of the ‘paramount
consideration that she should be enabled
adequately to place her case
before the court’. The papers before me indicate that the
respondent can afford to pay the amount
claimed and that he will not
be prejudiced in the conduct of his own case should he be ordered to
do so.”
[109]
The claim for a contribution towards
costs in a matrimonial suit is
sui generis
.
It is an incident of the duty of support which spouses owe to each
other. It is clear from the authorities quoted above that the
purpose
of the remedy has consistently been recognised as being to enable the
party in a principal litigation who is comparatively
financially
disadvantaged in relation to the other side to adequately place her
case before the court.
[110]
In
Eke
v Parsons
[48]
it was stated that under the constitutional dispensation “
the
object of court rules is twofold. The first is to ensure a fair trial
or hearing. The second is to secure the inexpensive and
expeditious
completion of litigation and to further the administration of
justice.”
[111]
As
stated in
AF
v MF
:
[49]
-
“
The
legal rules pertaining to the reciprocal duty of support between
spouses are gender neutral so that an indigent husband may
claim
support from an affluent wife but the reality must be acknowledged
that given traditional childcare roles and the wealth
disparity
between men and women, it has usually been women who have had to
approach the court for a contribution towards costs
in divorce
litigation.”
[112]
Accordingly it would be unwise to
ignore the gender dynamic of rule 43 applications and it is
against this background that
the courts should exercise their
discretion when interpreting and applying rule 43.
[113]
According to the Constitutional
Court: -
“
Equality
of arms has been explained as an inherent element of the due process
of law in both civil and criminal proceedings. At
the core of the
concept is that both parties in a specific matter should be treated
in a manner that ensures they are in a procedurally
equal position to
make their case. In particular, weaker litigants should have an
opportunity to present their case under conditions
of equality.”
[50]
[114]
In
AF
Davis AJ noted that in the
unreported decision of
Du Plessis v
Du Plessis (an unreported decision)
,
Van der Merwe J had followed Cary and accepted “
the
relevance of the fundamental right to equality before the law”
.
[115]
Like Van der Merwe J, Davis AJ
followed suit and concluded thus: -
“
I
find myself in wholehearted agreement with the approach adopted by
Donen AJ and Van der Merwe J, which accords with
the
injunction in section 39(2) of the Constitution to promote the
spirit, purport and objects of the bill of rights when
developing the
common law.
The importance of
equality of arms in divorce litigation should not be underestimated.
Where there is a marked imbalance in the
financial resources
available to the parties to litigate, there is a real danger that the
poorer spouse – usually the wife
– will be forced to
settle for less than that to which she is legally entitled, simply
because she cannot afford to go to
trial. On the other hand the
husband, who controls the purse strings, is well able to deploy
financial resources in the service
of his case. That situation
strikes me as inherently unfair. In my view the obligation on courts
to promote the constitutional
rights to equal protection and benefit
of the law, and access to courts, requires that courts come to the
aid of spouses who are
without means, to ensure that they are
equipped with the necessary resources to come to court to fight for
what is rightfully theirs.
…
And
where an impecunious spouse has already incurred debts in order to
litigate, whether to family or to an attorney, I consider
that the
court should protect the dignity of that spouse by ordering a
contribution to costs sufficient to repay those debts.”
[116]
It was argued before me on behalf of
the respondent that the applicant is not entitled to all of her costs
claimed up until the
first day of trial. David AJ in
AF
v MF
strongly disagreed: -
“
In
my view the obligation to pay a contribution towards the wife’s
legal costs does not necessarily postulate an obligation
only to pay
for part of those costs… The extent of the contribution should
logically depend on how much, if anything, the
wife herself is able
to contribute…
To my mind the correct
approach to the question of an appropriate contribution towards costs
is that adopted in Zaduck v Zaduck
1966 (1) SA 78
(SR) at 81A-B by
Davies J, who declined to follow the rule that a contribution to
costs should not cover all the wife’s
costs. The learned judge
held that:
‘
[T]he
correct approach is to endeavour to ascertain in the first instance
the amount of money which the applicant will have to pay
by way of
costs in order to present her case adequately. If she herself is
unable to contribute at all to her costs, then it seems
to me to
follow that the respondent husband must contribute the whole amount
required. I see no validity in the contention that
in those
circumstances he should only be required to contribute part of the
amount involved.’
In my view it is
arbitrary to apply an inflexible rule if the wife who has no means of
funding the balance of her legal costs is
nonetheless only entitled
to part of the costs which she reasonably requires to fund her
litigation.”
THE MINOR CHILD
[117]
“
Mom,
I think we need to speak about the divorce and all the fighting that
has been happening… I’m not happy and have
been feeling
upset about everything. I’ve watched and been in the middle of
all this fighting for the last year now and because
of the fighting
our family has been separated and all I want is to be with my sisters
and be part of a family.”
[51]
-
the words of D.
[118]
D, is a highly intelligent and
talented 16-year old boy, who is caught up in a very acrimonious
dispute between his parents. He
must be absolutely torn apart that
his loyalties are pulled one way and then the other by the very
people who should be ensuring
that he has a secure, loving and stable
environment. I have no doubt that the emotional pressure on D can be
nothing short of enormous
and only by his parents achieving a full,
lasting resolution, can this boy hope to enjoy a normal, happy
childhood, or the precious
little of it that remains.
[119]
I conducted a chamber interview with
D in the presence of my Registrar. I needed to understand D’s
resistance to go for an
assessment and therapy.
[120]
In
the matter of D v P
[52]
the
learned Judge said "
The
courts as upper guardians of minors have the daunting task in
deciding the destiny of minors when their parents, either due
to
their own actions or due to particular circumstances forced upon
them, cannot agree on what would be in the best interests of
the
minor children. More than often, the parents tend to see the best
interests of their children through their own self cantered
interests, and then pose those interests as being that of the minor
child. Rightly or wrongly, that is life. It does, however,
impose a
greater duty upon the court to determine what the best interests of
the minor child are
."
[121]
This matter is no exception.
[122]
Delay
is inimical to the welfare of children particularly those embroiled
in such contentious proceedings, who continued to be harmed
both by
the psychological manipulation of the parent or others with whom they
reside and the continued denial of a relationship
with their other
parent. In recent years there has been an increased appreciation of
the seriousness of a child being denied a
relationship with a parent
within the realm of family law.
[123]
No matter the reason for not wanting to
see their other parent, custodial parents are responsible for making
sure that their child
sees their other parent. Family law courts want
to see co-parents working together to encourage their child to spend
time with
each parent. If the opposite is happening—even if it
is what the child wants, courts may not look as favourably upon the
parent who appears to be preventing visitations.
[124]
Even though D is on the brink of
adulthood, he is still a child and a troubled one at that in my
observation. The respondent must
keep this in mind. Of course, this
is a particularly emotional situation, and feelings of guilt could be
influencing his decisions.
But that does not reduce his
responsibility as a parent and a co-holder of parental
responsibilities and rights.
[125]
Section 6(5) of the Children’s
Act, 38 2005 does provide for the child’s views to be taken
into consideration. Therefore
it is incumbent upon the court and
parents to thoughtfully consider D’s opinions, but the court
and parents remain in charge,
so to speak. And accordingly, the
window of opportunity that is left before D enters adulthood must be
used in the best way possible
and this includes active encouragement
on the part of the applicant and the respondent for D to spend time
with both of them and
for the parents to be mindful of their own
behaviour or those around them that could influence D not wanting to
have a relationship
with his mother.
[126]
Afterall, the overriding and
paramount consideration in matters like this, is always what is in
the best interest of a child.
This is what is required by both
section 28(2) of the Constitution and section 9 of the
Children’s Act. I truly
hope that the order which I intend to
make will uphold and preserve D’s best interests now and in
years to come.
COSTS OF THE
APPLICATION
[127]
It is trite that the awarding of
costs is discretionary. There are usually no winners and no losers in
matters of this kind. However,
I cannot simply turn a blind eye to
the conduct of the respondent which has necessitated the applicant to
come to court at great
expense. The respondent initially made no
tender for a contribution towards the applicant’s legal costs
until the very last
day of argument.
[128]
The fact remains that the applicant
has been substantially successful in the relief that she sought and
will be out of pocket if
the costs occasioned by the application is
allowed to disappear in the mix of the divorce action proceedings.
[129]
I am not ignoring some of the
applicant’s exorbitant claims either and that is why I am
limiting the costs order that I intend
to grant to the first day of
the hearing only.
ORDER
In
the circumstances I make the following order: -
PENDENTE
LITE:
1.
Psychologist, Mr Anthony Townsend, is
appointed to conduct an investigation to the best interests of the
parties’ minor boy
child, D, and to provide the parties
and the court with his written report setting out his opinions,
findings and recommendations
regarding the nature and extent of any
interventions, including therapeutic interventions that, in his
opinion, are required and
appropriate to restore the relationship
between the applicant and D as well as the manner in which the
parties should exercise
their parental responsibilities and rights,
including care and contact in respect of D.
2.
The respondent shall pay the costs of
Townsend directly to Townsend on demand, including any deposit
required by Townsend.
3.
Both parties shall cooperate and shall
ensure that D cooperates with the process of Townsend to the full
extent required by him
inter alia
by attending all such interviews, evaluations and assessments
required by Townsend, completing all questionnaires and/or other
forms and providing Townsend with all information and/or
documentation required by Townsend.
4.
Both parties shall complete and sign
Townsend’s mandate upon receipt thereof from Townsend.
5.
The respondent shall pay a cash monthly
amount of R80 000.00 (Eighty Thousand Rand) in respect of
spousal maintenance directly
into the applicant’s Capitec bank
account number XXXX, the first payment in the amount of R80 000.00
(less the amount
of R30 000.00 already paid by the respondent)
in respect of maintenance for January 2023 be paid forthwith and
thereafter
all further payments to be paid on the first day of each
and every succeeding month.
6.
The monthly cash contribution of R
80 000.00 shall be increased annually on the first day of the
month succeeding the anniversary
date of the order and every twelve
months thereafter at a rate of 6 % per annum.
7.
The respondent shall make payment directly
to the creditor or service provider of the following monthly expenses
on due date: -
7.1
The medical aid premiums to retain the
applicant on her current medical aid scheme that she is currently a
dependent on as well
as any medical and dental expenses not covered
by the benefits of the medical aid scheme, excluding any elective
cosmetic and/or
orthodontic costs.
7.2
The levies, rates, taxes and all other
imposts, including water and electricity, homeowners and household
insurance, security and
alarm system costs in respect of the property
registered in the applicant’s name, being Erf X, Clifton,
Cape Town.
7.3
The insurance premiums in respect of the
BMW X5 , registration number and letters XXXX GP and the Mini motor
vehicle, registration
number and letters XXXX GP (“
the
vehicles”
).
7.4
The reasonable and economically viable cost
of maintenance and repairs in respect of the vehicles.
7.5
The cost of licensing of the vehicles and
shall on demand take all steps necessary to ensure that the vehicles
are licensed and
shall be responsible for payment of any fines
incurred as a result of his failure to license either of the vehicles
timeously or
at all.
7.6
The premiums in respect of the applicant’s
existing life insurance policies, dread disease policies and
retirement annuity
policies.
7.7
The respondent shall reimburse the
applicant by payment into the applicant’s Capitec account
within five calendar days of
production by her of an invoice and
proof of payment of all reasonable medical and dental expenses
incurred in respect of the applicant.
The respondent shall not be
liable to make payment of any elective cosmetic and/or orthodontic
costs.
7.8
The respondent shall guarantee all of the
obligations of the lessee, ABC (Pty) Ltd, in respect of the lease
concluded between ABC
(Pty) Ltd and DEF (Pty) Ltd in respect of the
apartment situated at Unit Y, Houghton Estate, namely: -
7.8.1
Payment of the monthly rental in the sum of
R33 000.00, which includes the costs of water, electricity,
domestic effluent and
meter reading fees;
7.8.2
Any reasonable market-related escalation to
the rental at the expiry of the lease, should the applicant elect to
remain in occupation
of the property, together with the costs of
water, electricity, domestic effluent and meter reading fees;
7.8.3
Payment of the cost of DSTV and Wi-Fi;
8.
The respondent shall pay a first
contribution towards the applicant’s legal costs in the sum of
R4.5 million (Four Million
And Five Hundred Thousand) by making
payment into the applicant’s attorneys’ trust account as
follows: -
8.1
R1 million within 48 hours of the grant of
the order.
8.2
R2 million by no later than 28 February
2023;
8.3
The balance in equal monthly instalments of
R500 000.00, the first such instalment to be paid on or before
28 March 2023
and thereafter on or before the 28
th
day of each following month until the full amount has been paid.
9.
The respondent shall not be entitled to
utilise any portion of the amount of R 963 000.00 paid by
Discovery Insure in respect
of the insurance claim which forms the
subject-matter of an ongoing dispute, to pay for the applicant’s
costs contribution,
without the prior written consent of the
applicant.
10.
The respondent shall pay the costs of the
application, including the costs of senior counsel, which costs shall
not include the
costs occasioned by the hearing of the application on
the 26
th
of January 2023.
F BEZUIDENHOUT
ACTING JUDGE OF
THE HIGH COURT
DATE OF
HEARING: 20
January 2023 and 26 January 2023
DATE OF
JUDGMENT: 2
February 2023
APPEARANCES:
On
behalf of applicant:
Adv
J A Woodward SC
Instructed
by:
Billy
Gundelfinger Attorneys
billy@gundelfinger.com
On
behalf of respondent:
Adv
L Segal SC
Instructed
by:
Lowndes
Dlamini Incorporated
gillian@lowndes.co.za
[1]
Maree
v Maree
1972
(1) SA 261
(O) at 263H;
Smit
v Smit
1978
(2) SA 720
(W) at 722G;
Nienaber
v Nienaber
1980
(2) SA 803
(O) at 806F;
Micklem
v Micklem
1988
(3) SA 259 (C)
at 262C;
Visser
v Visser
1992
(4) SA 530
(SE);
TS
v TS
2018
(3) SA 572
(GJ) at 584D–E and 585A–C;
Patmore
v Patmore
1997
(4) SA 785 (W)
at 788D;
Du
Preez v Du Preez
2009
(6) SA 28
(T) at 33B
[2]
Dodo
v Dodo
1990
(2) SA 77
(W)
at
79C–F
[3]
E
v E
2019
(5) SA 566
(GJ)
at
575B–577A
[4]
Published in
what was called the “Extraordinary Government Gazette”
No 999; volume 15
[5]
TS
v TS
2018
(3) SA 572 (GJ)
[6]
Respondent’s
supplementary answering affidavit: paragraph 37, p
004-5-16.
[7]
Founding
affidavit: annexure “DM 16”; p. 4-1-144: WhatsApp
message dated 26 October 2021.
[8]
Answering
affidavit: paragraph 1, p 004-1-215.
[9]
Answering
affidavit: annexure “OA14”, p 004-1-379.
[10]
Answering
affidavit: paragraph 174, p 004-1-232.
[11]
Answering
affidavit: paragraphs 240.1 and 240.2, p 004-1-246.
[12]
Answering
affidavit: paragraph 271, p 004-1-254.
[13]
Answering
affidavit: paragraph 82, p 004-1-200.
[14]
Answering
affidavit: paragraph 82, p 004-1-200.
[15]
Answering
affidavit: paragraphs 85 and 87, p 004-1-201 and 004-1-202.
[16]
Answering
affidavit: paragraph 82, p 004-1-200.
[17]
Answering
affidavit: annexure “OA10”, p 004-1-335 to 004-1-369.
[18]
Founding affidavit:
paragraph 35.8, p 4-52; annexure “DM9”.
[19]
Answering
affidavit: paragraph 79, p 4-1-199.
[20]
Particulars of
claim: annexure “G”, p 2-136.
[21]
Founding affidavit:
annexure “DM1”.
[22]
Founding affidavit:
paragraph 50, p 004-1-62.
[23]
Answering
affidavit: paragraphs 283 and 284, p 004-1-257.
[24]
Founding affidavit:
paragraph 70, p 004-1-72.
[25]
The
BLT referred to by the respondent is Blue Label Telecoms.
[26]
Founding affidavit:
paragraph 70, p 004-1-72.
[27]
Answering
affidavit: paragraph 313, p 004-1-264.
[28]
Founding affidavit:
paragraph 74, p 004-1-73.
[29]
Founding affidavit:
paragraph 75, p 004-1-74.
[30]
Answering
affidavit: paragraph 318, p 004-1-265.
[31]
Answering
affidavit: paragraph 4, p 4-1-174.
[32]
Answering
affidavit: paragraphs 254 to 265, pp 4-1-251 to 4-1-253.
[33]
Founding affidavit:
paragraph 42, p 004-1-56; answering affidavit: paragraphs
266 to
268, pp 004-1-253 to 004-1-254.
[34]
Founding affidavit:
paragraph 42, p 004-1-56.
[35]
Answering
affidavit: paragraphs 266 to 268, pp 004-1-253 to 004-1-254.
[36]
Founding affidavit:
paragraph 45, p 004-1-58.
[37]
Founding affidavit:
paragraph 47, pp 004-1-59 to 004-1-61.
[38]
Answering
affidavit: p 004-1-183.
[39]
Answering
affidavit: annexure “OA4”, pp 004-1-292 to 004-1-302.
[40]
Financial
Disclosure Form: p 016-33.
[41]
Founding affidavit:
paragraph 90, p 004-1-87.
[42]
Founding affidavit:
paragraphs 98 and 99, pp 004-1-89 to 004-1-90.
[43]
Answering
affidavit: paragraph 364, p 004-1-276.
[44]
Answering
affidavit: paragraph 365, p 004-1-276.
[45]
Answering
affidavit: paragraph 365, p 004-1-276.
[46]
Van
Rippen v Van Rippen
1949 (4) SA 634 (C).
[47]
Cary
v Cary
1999 (3) SA 615
(C).
[48]
Eke
v Parsons
2016 (3) SA 37 (CC).
[49]
AF
v MF
2019 (6) SA 422
(WCC) paragraph [14].
[50]
Eke
[51]
Founding affidavit:
annexure “DM15”.
[52]
D
v P
(82527/2016) [2016] ZAGPPHC 1078 (15 December 2016)
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