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# South Africa: South Gauteng High Court, Johannesburg
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## Hull v Free Market Foundation (Southern Africa) and Others (2021/39680)
[2023] ZAGPJHC 103 (8 February 2023)
Hull v Free Market Foundation (Southern Africa) and Others (2021/39680)
[2023] ZAGPJHC 103 (8 February 2023)
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sino date 8 February 2023
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
CASE
NUMBER:
2021/39680
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED. YES
Date:
8 February 2023
In
the matter between:
MICHAEL
ROBERT HULL
Applicant
and
THE
FREE MARKET FOUNDATION
(SOUTHERN
AFRICA)
First
Respondent
REX
VAN SCHALKWYK
Second
Respondent
ROBERT
WASSENAAR
Third
Respondent
EUSTACE
DAVIE
Fourth
Respondent
RUMBIDZAI
KANGARA
Fifth
Respondent
LOUW
LOUW
Sixth
Respondent
TERRY
MARKMAN
Seventh
Respondent
JOHANNA
McDOWELL
Eighth
Respondent
GERHARD
PAPENFUS
Ninth
Respondent
ROBERT
VIVIAN
Tenth
Respondent
GAIL
DAUS-VAN WYK
Eleventh
Respondent
THERESA
EMERICK
Twelfth
Respondent
WILHELM
HERTZOG
Thirteenth
Respondent
TEMBA
NOLUTSHUNGU
Fourteenth
Respondent
LAWRENCE
MAVUNDLA
Fifteenth
Respondent
This
judgment was handed down electronically by circulation to the
parties' and/or the parties' representatives by email and by
being
uploaded to Case Lines. The date and time for hand-down is deemed to
be 10h00 on 8 February 2023.
JUDGMENT
WANLESS
AJ
Introduction
[1]
This is an application for costs in terms of subrule 41(1)(c) of the
Uniform
Rules of Court. The application has been instituted by
THE
FREE MARKET FOUNDATION (SOUTHERN AFRICA)
(“the
Foundation”)
against one
MICHAEL ROBERT HULL (
“
Hull”).
[2]
The Foundation was founded in response to the apartheid regime’s
policies
of economic interventionism. It campaigned extensively for
the removal of restrictions on the movement and use of labour,
capital
and goods, across South Africa, with a view to allowing
people of all races to compete freely in all sectors of economic
life.
It held its inaugural congress in 1977, where a call was made
for the removal of racially discriminatory laws and the adoption of
a
free enterprise system. In addition to its research and lobbying for
a more just economic dispensation in the 1980’s the
Foundation
also led the liberalisation of the economy.
[3]
In addition the Foundation played a role in ending apartheid and in
the adoption
of the interim and present Constitution. The property
rights and limitations provisions as encompassed in sections 25 and
36 of
the Constitution of South Africa 1996, owe their existence, at
least in part, to the efforts of the Foundation’s
representatives.
At present the Foundation maintains a high public
profile through media and social media engagement and through regular
submissions
to Parliament on proposed legislation.
[4]
One of the Foundation’s most important projects is its Khaya
Lam (My Home)
Land Reform Project. Initiated in 2010 in the Free
State but now replicated in other parts of South Africa the project
aims to
have all council-owned properties in South Africa
(approximately 5 million) upgraded to full freehold title at no cost
to the lawful
residents. By providing title deeds the Khaya Lam
Project gives the landless a stake in the economy and the future of
South Africa.
At the time that this matter came before this Court,
over 10 000 transfers had been affected or were in the process
of being
effected and the Foundation had secured private sector
funding for an additional 20 000 transfers.
[5]
The history of the Foundation and its contribution to the betterment
of South
Africa and its citizens is truly remarkable. Against this
background the events which took place at the Foundation’s
annual
general meeting on the 29
th
of July 2020 are most
regrettable. Moreover, the events that have transpired thereafter and
the very fact that this Court has been
called upon to determine
issues of costs arising as a result of disputes between Foundation
members, is not only regrettable but
is in stark contrast to the core
values of the Foundation and the principles which it has so proudly
defended.
The
facts
[6]
Prior to the 29
th
of July 2020 various factions within the
membership of the Foundation had become embroiled in certain
disputes. This judgment will
not be burdened unnecessarily by dealing
with the nature of those disputes, particularly in light of the fact
that the sole issue
which this Court has been asked to determine is
that of costs.
[7]
The annual general meeting
(“the AGM”)
of the
Foundation held on the 29
th
of July 2020 was, looked at
objectively, chaotic. Whether or not it resulted in a lawful election
of the Foundation’s Board
is not for this Court to determine.
It is simply necessary to note, at this stage, that Hull (a member of
the Foundation and who
was present at the AGM) was, at all material
times, of the opinion that the Board elected at the AGM was
illegitimate.
[8]
On or about the 21
st
of July 2021, notice was given to the
Foundation’s members that a special general meeting
(“the
SGM”)
had been called for the 19
th
of August
2021 for the purposes of voting on the adoption of certain proposed
amendments to the Foundation’s Constitution.
Hull attended the
SGM and proposed a motion that the SGM be adjourned since an
application
(“the main application”)
was about to
be issued. He explained to the meeting that in the main application
relief would be sought from this Court,
inter alia
, declaring
that any amendments to the Constitution and restrictions these would
impose on voting at general meetings, would be
null and void since
they would be passed by an illegitimate Board. In the premises, he
advised the members that, based on what
he believed, it would be in
the interests of all the members of the Foundation that the
legitimacy of the Board be determined
before
any amendments to
the Constitution took effect and explained that it was critical that
the legitimacy of the Board was resolved
prior to the 2021 AGM.
[9]
At the end of the day, no amendments were effected to the
Constitution and the
main application was instituted, in this Court,
on or about the 20
th
of August 2021. In the main
application Hull was the Applicant; the Foundation was the First
Respondent and the remaining fourteen
(14) respondents were the
members of the Board. Only the Foundation opposed the relief sought
by Hull in the main application.
[10]
The litigation then took its course. On the 4
th
of October
2021, Hull gave notice of his intention to amend his Notice of
Motion. The application to amend was unopposed and Hull
tendered to
pay the costs occasioned by the application. Hull applied for an
order striking out specific sections of the answering
affidavit and
some of the confirmatory affidavits filed by the Foundation. The
Foundation also instituted an interlocutory application
whereby it
sought an order that certain sections of Hull’s founding and
replying affidavits be struck out.
[11]
On the 18
th
of November 2021 the Foundation’s 2021
AGM was held at which a new Board was duly elected. It is common
cause between the
parties that this event resulted in both the main
application and the interlocutory applications in respect thereof
becoming moot.
[12]
Following the aforegoing and on or about the 1
st
of
December 2021 the Foundation served and filed a supplementary
affidavit in the main application. In addition thereto, on or
about
the 10
th
of January 2022, the Foundation applied to the
Deputy Judge President, Gauteng Division (Johannesburg) for the main
application
to be certified of a commercial nature and heard in the
commercial court. This application was dismissed.
[13]
On or about the 10
th
of March 2022 the Foundation filed
Heads of Argument in respect of the main application wherein the
merits of the main application
were dealt with at length.
[14]
Hull withdrew the main application formally in terms of subrule
41(1)(a) on or about the 23
rd
of March 2022. This
withdrawal of the main application did not include a tender to pay
the Foundation’s costs.
[15]
On or about the 7
th
of April 2022 the Foundation
instituted the present application in terms of subrule 41(1)(c) for
costs. This resulted in a full
blown application for costs which was
heard by this Court, as an opposed motion, on the 18
th
of
October 2022.
The
Foundation’s case
[16]
In the first instance, the Foundation relies on the general principle
that a litigant who withdraws
legal proceedings must pay the costs
occasioned thereby unless there are very sound reasons as to why the
other party should not
be entitled to costs. The Foundation also
seeks a costs order on a punitive scale on the basis that,
inter
alia
, the main application never had any prospects of success. As
such, it is submitted, it falls within the extended meaning of being
“vexatious” and the Foundation further submits that this
Court should, in its discretion, order that Hull pay the costs
on the
scale of attorney and client.
[17]
Arising from (and related to) the aforegoing, it was also submitted
on behalf of the Foundation that
the main application was, in effect,
a review proceeding despite the manner in which it had been styled.
As such, the actual relief
sought was to set aside an administrative
action taken by the Foundation and as defined by the
Promotion of
Administrative Justice Act 3 of 2000 (“PAJA”).
It is
averred by the Foundation that the manner in which Hull styled the
main application was in fact intentional and not an error.
This
submission is based on the fact that subsection 7(1) of PAJA contains
a time limitation of 180 days. In the premises, the
Foundation
submits that Hull brought the main application outside of PAJA to
avoid non-compliance with the aforesaid subsection
of PAJA. Hence, it
is submitted that not only would the main application have been
dismissed but, in light of Hull’s devious
actions as aforesaid,
costs should be awarded on the higher or punitive scale. A cost order
is sought by the Foundation in respect
of the main application; the
interlocutory applications referred to above and the present
application in terms of subrule 41(1)(c)
on the scale of attorney and
client, such to include the costs of two Counsel.
[18]
A further ground initially relied upon by the Foundation was the
so-called “
doctrine of laches”
premised on the
basis that Hull would not have been entitled to any relief in the
main application in light of the delay in instituting
the main
application and the prejudice caused thereby to the Foundation. This
ground was expressly abandoned by the Foundation
at the hearing of
this matter by Counsel for the Foundation on the basis that this
doctrine has no applicability in our law.
[19]
The
actual
order sought by the Foundation in this matter,
reads as follows:
“
(a)
The Applicant pay the costs in respect of the above application on
the scale as between attorney and client including
the costs of two
Counsel which costs shall include those related to the interim
[1]
applications brought by the Applicant and Respondent respectively and
the costs connected with the filing by the First Respondent
of its
supplementary affidavit dated the 1
st
December 2021 but excluding those costs related to (the) application
by the Applicant for case management.
(b) The
Applicant further pay the costs of this application on the scale as
between attorney and client including the
costs of two Counsel. “
Hull’s
case
[20]
It was submitted on behalf of Hull that the overriding principle in
respect of costs is that all costs,
unless expressly otherwise
enacted, are in the discretion of the Court. Further, it was
submitted that the provisions of subrule
41(1)(c) in no way fetters
this Court’s discretion in respect of costs. More particularly,
it was submitted on behalf of
Hull that once the main application
became moot then neither party should have taken any further steps in
the litigation process
thereby avoiding incurring any further legal
costs.
[21]
As to the submissions made by the Foundation that the main
application had no prospects of success
since it should have been
brought in terms of PAJA, it was submitted that PAJA was never
applicable since the election of the Foundation’s
Board was not
an “
administrative action”
as defined by PAJA.
[22]
The
actual
order sought on behalf of Hull, reads as follows:
“
(a) each
party is to pay its own costs in the main application, save for the
costs occasioned by the applicant in the main
application’s
amendment of its notice of motion, which shall be paid by that (sic)
applicant;
(b) the
application in terms of Rule 41(1)(c) is dismissed with costs as
occasioned by the employment of two counsel”.
The
law
[23]
Subrule 41(1) reads as follows:
“
(a) A
person instituting any proceedings may at any time before the matter
has been set down and thereafter by consent between
the parties or
leave of the court withdraw such proceedings, in any of which events
he shall deliver a notice of withdrawal and
may
embody
in such notice a consent to pay costs, and the taxing master shall
tax such costs on the request of the other party.
(b)
………………………………………………..
(c) If no
such consent to pay costs is embodied in the notice of withdrawal,
the other party may apply to court
on
notice
for an order for costs.”
[2]
[24]
As was
submitted by Adv Whitcutt SC (on behalf of Hull) it is trite but
nevertheless an important general principle to bear in mind,
particularly in the present matter, that the overriding principle in
respect of costs is that they are in the discretion of the
Court.
[3]
[25]
The correct
approach to costs in matters that become moot was succinctly dealt
with by the court in the matter of
Serwada
v Minister of Home Affairs for RSA
[4]
where it was held:
“
It seems to me
that the Court is not confronted with an ordinary situation of a
concession on the merits made through the withdrawal
of the
application. That the withdrawing party should bear the costs
cannot
be regarded as a hard and fast rule in this case. The court has a
general jurisdiction to make a proper allocation of costs
in the
exercise of its judicial discretion
………..
The Court must then
evaluate the
conduct
of the parties
which is relevant to costs”.
[5]
[26]
It was
further held in
Serwada
[6]
that
the relevant considerations in such a case are (a) the merits of the
application;(b) the manner in which the parties conducted
themselves
(elsewhere described as the reasonableness of the parties’
conduct)
[7]
and (c) whether any
party took unnecessary steps or adopted a wrong procedure.
[27]
This Court not only accepts the correctness of the principles as
enunciated in
Serwada
but intends to apply same, insofar as
they are applicable, in the present matter.
The
application of the “Serwada principles” to the facts of
the present matter
The
merits of the main application
[28]
Both parties are critical of one another in respect of the
institution of the main application and
the opposition to the relief
sought therein. On the one hand, Adv Davis SC (on behalf of the
Foundation) criticises Hull for the
delay in instituting the main
application and defends the right of the Foundation to oppose the
relief sought by Hull in that application
since, it is submitted, the
relief sought went to the very core of the manner in which the
Foundation functioned. On the other
hand, Adv Whitcutt SC criticised
the Foundation for defending the indefensible (the invalidity of the
election of the Board); being
the only party to oppose the
application (none of the remaining respondents did so) and defended
the right of Hull to institute
the main application in light of,
inter alia
, the important role the Foundation plays in South
African society which made the functioning; integrity, together with
the sanctity
of its constitution and voting procedures, worth
preserving. The aforegoing is merely a summary of the situation
leading up to
the institution of and the opposition to the main
application and the attitudes of the respective parties.
[29]
Insofar as the
actual
merits of the main application are
concerned, namely whether or not the Foundation’s Board was
validly elected at the AGM,
it is the opinion of this Court that it
is unnecessary for this Court, when deciding the present application
in terms of subrule
41(1)(c), to reach a final decision with regard
thereto. The reasons therefor are as set out hereunder.
[30]
In the first instance, there is potentially a genuine and
bona
fide
dispute of fact on the application papers before this Court
as to whether the proceedings at the AGM gave rise to a validly
elected
Board or not. As such, it may not be possible for this Court
to determine, as a fact, whether,
inter alia
, the requirements
of the Foundation’s constitution and the common law in respect
of the convening of a lawful AGM and election
of members to the
Board, were satisfied. In that event, it becomes unnecessary for this
Court to decide, as a matter of law, whether
the election of the
Board at the AGM should be classified as an administrative action and
the consequences thereof (if any) insofar
as this may relate to the
issue of costs.
[31]
In the
opinion of this Court, the decision not to enter into the factual
disputes and deal with the points of law surrounding the
unfortunate
incidents which took place at the AGM (thereby also not burdening
this judgment unnecessarily) is supported by the
fact that whilst
this Court accepts that all of the considerations as set out in
Serwada
may be important considerations in an application where proceedings
have been withdrawn as a result of being overtaken by circumstances
and becoming moot, every case must be judged on its own particular
facts and circumstances. In one case the consideration of the
merits
of the withdrawn proceedings may not only be capable of simple and
speedy resolution by the Court but may also be the determining
factor
in considering an application of this nature. In another case, for
one reason or another, it may not be possible for the
Court to decide
the merits of the withdrawn proceedings at all. In other matters
involving the withdrawal of proceedings as a result
of mootness and
the necessity to decide the issue of costs, it may be either (or
both) of the considerations of the conduct of
the parties or whether
any party took unnecessary steps or adopted a wrong procedure, that
necessitates a court placing more or
less emphasis on one or more of
the considerations as listed in
Serwada.
This Court understands the decision of
Serwada
to postulate certain broad considerations which should be taken into
account by the Court in applications of this nature. It could
never
have been the intention of the Court in
Serwada
to
limit or restrict a Court to those considerations only and further,
not to have had in mind, when outlining those considerations
for the
benefit of other courts to follow, that each case will have its own
peculiar facts and circumstances to which these various
considerations should be applied. To have done so (attempt to
restrict a court to certain considerations only) would have flown
directly in the face of the well-established principle of the general
and unfettered discretion vested in the Court in respect
of the issue
of costs.
[8]
[32]
That said, it is further the opinion of this Court that the remaining
considerations to be applied
to the facts of the present matter are
far more relevant when considering the issue of costs in terms of the
subrule 41(1)(c) application
instituted by the Foundation.
The
manner in which the parties conducted themselves and whether any
party took unnecessary steps or adopted a wrong procedure.
[33]
As should be clear from that already stated in this Judgment, this
Court will focus on the manner in
which the parties conducted
themselves
post
the event which caused the relief sought by
Hull in the main application to become moot. For the reasons already
dealt with by
this Court, it is the opinion of this Court that the
conduct of the parties prior thereto is of much lesser significance,
having
particular regard both to the nature of this application
and, once again, the extensive and complex dispute of fact in the
main application pertaining to the “in-fighting” which
had taken place between the various factions of the Foundation’s
membership.
[34]
Regarding the structure of this judgment, it would have become
evident that this Court has elected
to essentially consolidate the
consideration of conduct with that of the taking of unnecessary steps
and the following of wrong
procedure. This is because, in the present
matter, they are one and the same. In other matters, with different
facts, a distinction
between the two may be drawn. In the present
matter, it is not convenient to attempt to do so. It would also, in
the opinion of
this Court, be incorrect to attempt to do so on the
facts placed before this Court.
[35]
It is common cause in this application that when the new Board was
elected at the AGM held on the 18
th
of November 2021 the
relief sought in the main application and the interlocutory
applications ancillary thereto, became moot. Thereafter,
it is
further common cause that the Foundation served and filed a
supplementary affidavit in the main application. No explanation
has
been provided to this Court, on behalf of the Foundation, as to why,
when the Foundation and the Foundation’s legal representatives
knew (or ought reasonably to have known) that the main application
had now been overtaken by events, the Foundation nevertheless
elected
to increase costs by serving and filing the said supplementary
affidavit.
[36]
In addition thereto, it is further common cause that the Foundation
applied to the Deputy Judge President,
Gauteng Division
(Johannesburg) for the main application to be certified to be of a
commercial nature and heard in the commercial
court. This application
was dismissed. Once again, it appears that no explanation has been
provided by the Foundation for this
inexplicable behaviour of
proceeding with the main application as if the main application was,
for all intents and purposes, “alive
and well”.
[37]
To make matters worse the Foundation then proceeded to file Heads of
Argument in respect of the main
application This is also common cause
in the present application. It was pointed out to this Court by
Counsel for Hull that the
merits of the main application are dealt
with at length in these Heads of Argument. As far as this Court is
aware, this has not
been seriously disputed by the Foundation in this
application.
[38]
Shortly after the filing of the Heads of Argument by the Foundation,
Hull formally withdrew the main
application by way of the requisite
notice in terms of rule 41. It was submitted by Counsel appearing on
behalf of Hull that he
did so in an attempt to bring a halt to the
flood of unnecessary litigation which was continuing to come forth
from the Foundation
despite the fact that the relief sought in the
main and interlocutory applications had become moot.
Conclusion
[39]
This Court
has an unfettered discretion (to be exercised judicially) to make an
award in respect of costs in an application in terms
of subrule
41(1)(c) and this discretion is not restricted, in any way, by
previous decisions
[9]
where it
has been held that a party who withdraws an action should be held
liable for costs as an unsuccessful litigant,
[10]
or that a litigant who withdraws an action must show “very
sound reasons”
[11]
or
“exceptional circumstances”
[12]
not to pay costs. Further, it is clear that the distinguishing factor
in the present case is that the relief sought in the main
application
and the interlocutory applications became moot. Hence, other
considerations, as dealt with in,
inter
alia
,
Serwada
,
must apply when this Court exercises its discretion.
[40]
The conduct of the Foundation pursuant to the AGM on the 18
th
of November 2021 is difficult to understand. This is particularly so
in light of the failure of the Foundation to explain that
conduct
either satisfactorily or at all. In the absence of a proper
explanation in respect thereof the only reasonable inference
this
Court can make (and is entitled to make on the facts placed before
it) is that the steps taken by the Foundation after the
18
th
of November 2021 were either done intentionally (in order to mulct
Hull with costs) or negligently. Either way the conduct of the
Foundation and the unnecessary steps taken, had that precise effect.
[41]
Even the
manner in which the present application in terms of subrule 41(1)(c)
was instituted is a matter of concern to this Court.
As correctly
pointed out during the course of argument by Adv Whitcutt SC the
Foundation served a notice in terms of the relevant
subrule
accompanied by an affidavit. It has long been held that an applicant
for an order for costs need only deliver a notice
of his intention to
ask for an order as to costs and no affidavit is required since the
relevant material is already before the
Court. A respondent is then
entitled to oppose the application and place an affidavit before the
court setting out the grounds
for his opposition if the facts
therefor are not clear from the main application.
[13]
By electing to institute the application in the manner that it did
the Foundation greatly increased the costs in this matter in
that not
only did this result in a full set of affidavits being filed and
served but an opposed application being placed before
this Court with
all of the consequent costs attached thereto. These costs would have
included,
inter
alia
,
the drafting of Practice Notes; Chronologies and Heads of Argument.
To the aforegoing must obviously be added the costs of the
legal
representation present at court to argue the matter on the opposed
roll. Apart from the attorneys representing the Foundation
and Hull,
both parties were represented by no less than two Counsel.
[42]
Of course, the floodgate of costs, already expended by an NGO and a
litigant in his personal capacity,
could have been brought to a halt
upon a proper and careful consideration of the status of the matter
following the AGM on the
18
th
of November 2021. At that
stage, well-knowing that the relief sought by Hull was moot the
appropriate action to be taken by the
Foundation at that crucial
stage (if any action was needed to be taken at all) was to apply a
measured and practical approach to
the question of costs. When no
notice withdrawing the main application in terms of subrule 41(1)(a)
was immediately forthcoming
from Hull then the Foundation could and
should have enquired from his attorneys whether he intended to file
one. The steps taken
on behalf of the Foundation, as set out above,
are unfathomable.
[43]
Moreover, even having committed the cardinal error of incurring
further unnecessary costs and then
instituting the application in
terms of subrule 41(1)(c) to recover all of its costs (on the
attorney and client scale no less)
the Foundation was presented with
still yet another opportunity to rectify its conduct. This
opportunity arose when, in opposition
to the application for costs,
it was tendered, under oath by Hull in his answering affidavit, that
each party should pay its own
costs in respect of the main
application (accompanied by a tender that Hull pay the costs
occasioned in respect of the amendment
to his Notice of Motion in the
main application). This tender, extremely reasonable in the
circumstances, was rejected outright
by the Foundation in its
replying affidavit. In addition thereto the Foundation persisted with
its claim for costs on the punitive
scale in respect of both
applications.
[44]
There is one other important issue that deserves mention. That is the
convenience of this Court. The
judgment in this matter has been
delayed somewhat longer than this Court would have hoped. In this
regard, the inability of this
Court to deliver this judgment sooner
is solely due to the onerous workload faced by this Court in the
Gauteng Division. Any delay
is not due to the complexity of the
issues involved despite the best attempts of this Court to deal with
same as thoroughly as
possible. Of course, this Court also had the
benefit of being greatly assisted by most able and well prepared
Counsel. Nevertheless,
the application in terms of subrule 41(1)(c)
has not only taken up valuable Court time on this Court’s
already burdened opposed
motion roll but has also taken up valuable
Court time in the preparation of this judgment.
[45]
The
aforesaid comments of this Court should not be construed in any
manner whatsoever to be a reluctance on the part of this Court
to
deal with disputes between parties, particularly those involving the
important issue of costs. This Court is acutely aware of
and strives
on a daily basis to, uphold the protection of the Constitutional
rights of all litigants who appear before it. In this
regard,
reference is made particularly to section 34 of our Constitution.
[14]
[46]
At the same time, it is fairly trite and it has been accepted by our
courts that, in appropriate circumstances,
where the particular
litigation has been carried out in an unsatisfactory manner and where
that has resulted in an inconvenience
to the Court, a Court may, in
the exercise of its discretion in respect of costs, mark its
displeasure by making an award of costs
on a punitive scale. Despite
the aforegoing and despite the inexplicable conduct of the Foundation
in incurring unnecessary costs
and thereafter increasing those costs
considerably by the institution of the subrule 41(1)(c) application
(an application with
no prospects of success), thereby wasting the
valuable time and resources of this Court, this Court has decided
against marking
its displeasure by awarding the costs payable by the
Foundation on a punitive scale. Nevertheless, litigants should remain
aware
of the danger of not only causing pecuniary damage to that
litigant’s opponent by forcing the other party to incur
unnecessary
costs but should be conscious of the fact that the
Court’s time is not something which should be trifled with.
[47]
Having carefully considered all of the aforegoing, it is the opinion
of this Court that, in the exercise
of its general and unfettered
discretion pertaining to costs, in respect of the main application,
it would be just and equitable
if this Court granted an order whereby
each party pay their own costs. This is in fact in line with the
proposal made by Hull to
the Foundation in respect of these costs.
Such an order would be eminently reasonable taking into account,
inter alia
, the well-intended reasons (as misguided and as
unfortunate as they may have been) of both parties in entering into
the main application
and the various disputes of fact arising
therefrom. A tender was made by Hull (quite correctly) during the
course of the main application
to pay any costs arising as a result
of the amendment to his Notice of Motion. An appropriate order will
also be made in respect
of those costs. Of course, the interlocutory
applications instituted by both parties shall also form part of the
order that each
party pay their own costs since there are no valid
grounds to make a specific or separate order in respect thereof.
These interlocutory
applications were instituted during the course of
the main application and are subject to the same facts; principles
and findings
of this Court as those which apply, in general, to the
main application.
[48]
In order to
ensure that there is no possible confusion whatsoever in respect of
the order that this Court will make, the order that
each party pay
their own costs in respect of the main application
includes
those costs incurred in respect thereof after the 18
th
of November 2021. Once again, this is in line with the somewhat
generous order sought by Hull in this matter in respect of the
costs
incurred for the main application. This Court has declined, in the
exercise of its discretion and despite the actions of
the Foundation
after the 18
th
of November 2021 in relation to the main application, to make an
order that the Foundation pay the costs of the main application
which
were incurred after the matter became moot and before Hull withdrew
the main application. In passing, it is noted that the
Foundation, in
the order that it sought
[15]
specifically (and rather brazenly in light of this Court’s
findings pertaining to the actions taken by the Foundation after
the
main application became moot) asked for the costs of the Foundation
filing a supplementary affidavit. The costs thereof (together
with
other costs incurred by the parties after the 18
th
of November 2021 in respect of the main application) are to be borne
by each party, as are the costs of the failed application
by the
Foundation to have the main application classified as a commercial
matter and heard in the commercial court, together with
the
Foundation filing its Heads of Argument. In all of these instances
each party shall pay their own costs.
[49]
Having made the aforegoing order in respect of costs of the main
application, it must follow (and this
is also clear from the findings
of this Court as dealt with earlier in this judgment) that the
application in terms of subrule
41(1)(c) should be dismissed. .It
must also follow that the Foundation should be ordered to pay the
costs of the application in
terms of subrule 41(1)(c).There are no
reasons as to why this Court should exercise its discretion in favour
of the Foundation
and make any other order as to costs. Once again,
despite the fact that the Foundation asked this Court to grant costs
on a punitive
scale against Hull in respect of both applications,
Hull has, very reasonably, only asked that the Foundation pay the
costs of
this application on the party and party scale. In the
premises, it would be just and equitable if this Court simply made an
order
that the Foundation pay the costs of the application instituted
by the Foundation in terms of subrule 41(1)(c).
[50]
As noted earlier in this judgment the Foundation asked that Hull pay
the costs of two Counsel in respect
of both applications. Hull sought
an order that the Foundation pay the costs of two Counsel in respect
of the application in terms
of subrule 41(1)(c).It was also noted
earlier in this judgment that both parties had the luxury of being
represented by two Counsel.
No argument was placed before this Court
by either party as to why, in the event of a party being ordered to
pay costs, that order
should not include the costs of two Counsel. In
the premises, it will be ordered that the costs payable by the
Foundation will
include the costs of two Counsel.
[51]
Finally, it is the fervent wish of this Court that the Foundation and
its members not only continue
the commendable work carried out by the
Foundation as before but in doing so make every effort to preserve
the values and principles
upon which the Foundation is based. This
includes jealously safeguarding the Foundation’s coffers which
makes the implementation
of those values and principles possible.
Order
[52]
This Court makes the following order:
1.
Each party is to pay their own costs in the main application,
such to include the costs of all interlocutory applications and any
costs incurred after the 18
th
of November 2021, save for
the costs occasioned by the amendment to the Applicant’s Notice
of Motion, which costs shall be
paid by the Applicant in the main
application (Michael Robert Hull);
2.
The application in terms of subrule 41(1)(c) is dismissed;
3.
The Applicant (The Free Market Foundation – South Africa)
in the application in terms of subrule 41(1)(c) is to pay the costs
of that application, such costs to include the costs of two (2)
Counsel.
B.C.
WANLESS
Acting
Judge of the High Court
Gauteng
Division, Johannesburg
Heard
: 18
October 2022
Judgment
: 8
February 2023
Appearances
For
Applicant
: C
Whitcutt SC (with JN van der Walt)
Instructed
by
: Fasken
Attorneys
For
First Respondent
: NM
Davis SC (with E Sithole)
Instructed
by
: Marshall
Attorneys
[1]
It
shall be presumed that the use of the word “interim” in
the order prepared on behalf of the Foundation is an error
and what
was actually referred to were the interlocutory applications
instituted by the parties and dealt with in this judgment.
[2]
Emphasis
added.
[3]
Kruger
Bros & Wasserman v Ruskin
1918 AD 63
69 (Innes J); Mouton v Die
Mynwerkersunie
1977 (1) SA 119
(A); Weare v Ndebele
2009 (1) SA 600
(CC) 623.
[4]
[2011]
JOL 27643
(ECM).
[5]
Ibid.
paragraphs 4 – 5. Also see Erasmus v Grunow en n Ander
1980
(2) SA 793
(O) 798 – 799A.
[6]
At
paragraph 10.
[7]
Wildlife
and Environmental Society of South Africa v MEC for Economic
Affairs, Eastern Cape
2005 (6) SA 123
(ECD) 129B-E.
[8]
Paragraph
[24] ibid; footnote 3 ibid
.
[9]
Cronje
v Pelser
1967 (2) SA 589
(A) at 593.
[10]
Germishuys
v Douglas Besproeingsraad
1973 (3) SA 299
(NC); Waste Products
Utilization (Pty) Ltd v Wilkes (Biccari Interested Party)
2003 (2)
SA 590
(W) at 597A.
[11]
Germishuys
v Douglas Besproeingsraad
1977 (3) SA 299
(NC)at 300D – E.
[12]
Master
Blaster (Pty) Ltd v Sasol Dyno Nobel (Pty) Ltd
[2020] JOL 48140
(GP)
par. 15.
and
Tshabalala v Motloung
2020 JOL 49124
(FB) at paragraph 8.
[13]
Erasmus:
Superior
Court Practice [Service 5,2017] D1-551.
[14]
Access
to courts
.
-Everyone has the right to have any dispute that can be resolved.by
the application of law decided in a fair public hearing
before a
court or, where appropriate, another independent and impartial
tribunal or forum.
[15]
Paragraph
[19] ibid.
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