Case Law[2023] ZAGPJHC 454South Africa
Harrowlane Investments (Pty) Ltd t/a Foodtown Hyper Savemore Cash and Carry v Zulu and Others (2021/45993) [2023] ZAGPJHC 454 (10 May 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
10 May 2023
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Harrowlane Investments (Pty) Ltd t/a Foodtown Hyper Savemore Cash and Carry v Zulu and Others (2021/45993) [2023] ZAGPJHC 454 (10 May 2023)
Harrowlane Investments (Pty) Ltd t/a Foodtown Hyper Savemore Cash and Carry v Zulu and Others (2021/45993) [2023] ZAGPJHC 454 (10 May 2023)
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REPUBLIC OF SOUTH AFRICA
IN THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION, JOHANNESBURG
CASE NUMBER:
2021/45993
NOT REPORTABLE
NOT OF INTEREST TO OTHER JUDGES
REVISED
10.05.23
In
the matter between:
HARROWLANE
INVESTMENTS (PTY) LTD
t/a FOODTOWN
HYPER SAVEMORE CASH & CARRY
Applicant
And
PHILLEMON
PAULRON ZULU
(ID NUMBER:
[…])
First Respondent
SIPHO
MAGUDULELA
Second
Respondent
GENERAL
INDUSTRIES WORKERS UNION OF SA
Third Respondent
GORDON NHLAPO
(ID NUMBER,
[...])
Fourth
Respondent
NOMALI MBULI
(ID NUMBER,
[...])
Fifth Respondent
NTOMBENHLE
NYAMBOSE
(ID NUMBER,
[…])
Sixth Respondent
THABO DAVID
MOLOI
(ID NUMBER
[…])
Seventh
Respondent
THE EMPLOYEES
AS PER ANNEXURE “X”
Eighth
Respondent
UNKNOWN
MEMBERS OF THE PUBLIC
Ninth Respondent
SUNVILLE
MEDIA (PTY) LTD
Tenth Respondent
Neutral
Citation
:
Harrowlane Investments (Pty) Ltd t/a Foodtown Hyper
Savemore Cash & Carry v Phillemon Paulron Zulu and Others
(Case No: 2021/45993) [2023] ZAGPJHC 454 (11 April 2023)
JUDGMENT
WANLESS
AJ
Introduction
[1]
This is an application by HARROWLANE INVESTMENTS
(PTY) LTD t/a
FOODTOWN HYPER SAVEMOOR CASH & CARRY (“the
Applicant”) that the GENERAL INDUSTRIES WORKERS UNION OF SA
(“the
Third Respondent”) pay the costs of the application
instituted by the Applicant in this Court under case number
2021/45993,
as it is more clearly set out hereunder.
[2]
It is common cause in this matter that:
2.1 On the 7
th
of September
2021, employees of the Applicant embarked on an unprotected strike.
The strike was orchestrated by the Shop Steward,
Mr Nhlapo and a Mr
Magudulela, a Union organizer.
2.2 The actions of the striking
employees escalated and various acts of damage to property, assaults
and intimidation took place
between the 7
th
of September
to the 6
th
of October 2021.
2.3 On the 6
th
of October
2021 the Applicant was granted urgent interim interdictory relief by
this Court under case number 2021/45993 against
not less than ten
(10) Respondents. The return date of the application was 13
January 2022.
2.4 On the return date the matter was
enrolled on the unopposed Motion Court roll. The only
opposition thereto was that of
the Third Respondent who had filed its
notice of intention to oppose together with its Answering Affidavit
on the 10
th
of January 2022.
2.5 The Third Respondent, in its
Answering Affidavit, did not oppose the relief sought by the
Applicant but disputed only its liability
to pay the costs of the
application jointly and severally with the other nine (9)
Respondents.
2.6 On 13 January 2022 the interim
order was confirmed save that the issue of costs against the Third
Respondent which had initially
been reserved in respect of all the
Respondents, was postponed
sine die
(the other Respondents
being ordered to pay the costs of the application jointly and
severally the one paying the others to be
absolved).
[3]
In the premises, the sole issue to be determined by this Court is
whether the Third Respondent should be ordered to pay the
costs of
the application, jointly and severally the one paying the others to
be absolved, with the other nine (9) Respondents cited
as such by the
Applicant in that application.
[4]
It must be noted that at the hearing of this application The Third
Respondent sought leave to file a Supplementary Affidavit
deposed to
by one PHILLIP ZWANE on the 3
rd
of November 2022.
This was originally opposed by the Applicant but during the course of
argument this opposition was withdrawn
by the Applicant’s
Counsel. In light thereof and in the interests of justice the late
filing of the said affidavit was condoned
and the Supplementary
Affidavit was accepted as part of the evidence before this Court to
be considered when determining this application.
The Applicant’s Case
[5]
The Applicant submits that:
5.1
The
Third Respondent has consented to the
rule
nisi
order being granted.
5.2
The
Third Respondent is responsible for the actions of its members which
includes the actions of its Union organizer and Shop Steward.
5.3
This
Court is precluded from revisiting the merits of the application and
that the only issue for this Court to determine is, having
consented
to the order, should the Third Respondent pay the costs? The
Applicant relies on
Society for the
Prevention of Cruelty to Animals, NO, WO 916 (Bloemfontein) v De
Swart and Others
1969 (1) SA 655
(O) at
page 687 paragraphs G-H in support thereof.
The Third Respondent’s
Case
[6]
On behalf of the Third Respondent it was submitted
that:
6.1
It
is not linked to any particular unlawful conduct and therefore should
not pay the costs of the application;
6.2
It
played a critical role in ensuring that the strike ends and the
Applicant cannot deny such interventions. Having stated
clearly
to the Applicant that it was not condoning the actions of the members
and that it has not been involved in any starting
and perpetuation of
the strike, it further requested meetings with the Applicant some of
which the Applicant refused and had to
ask the CCMA to intervene
through Commissioner Sithole and there were numerous engagements with
the Applicant and members by, amongst
others, Phillip Zwane’.
6.3
The
Third Respondent disagrees with the Applicant that this Court cannot
revisit the basis of the Third Respondent’s argument
as the
Applicant states that “
the Third
Respondent is responsible for the actions of its members”
.
6.4
The
consent to the order by the Third Respondent does not mean that it
accepted liability for the strike but meant that it could
not have
been its purpose to engage in or to promote illegalities. Most
cost orders which have been granted by courts against
Unions are due
to the Unions’ involvements or complacency in the strike which
cannot be found in this matter. Reliance is
placed on
Algoa
Bus Co (Pty) Limited v Transport Action Retail & General Workers
Union & Others
(2015) 36 ILJ 2292
(LC);
Verulam Sawmills (Pty) Ltd v
Association of Mine Workers and Construction Union (AMCU) &
Others (unreported judgment J1580/15,
20 October 2015)
.
6.5
A
bona fide
and
material dispute of fact exists upon the application papers before
this Court as to the involvement, if any, of the Third Respondent
in
the strike. In the premises, in line with the
Plascon-Evans
test, this Court cannot reject the version of the
Third Respondent and in the exercise of its discretion, should not
order the Third
Respondent to pay costs.
The Law
[7]
In
the first instance, it is necessary to consider the matter of
Society
for the Prevention of Cruelty to Animals, NO, WO 916 (Bloemfontein)
referred to above and relied upon by
the Applicant. The relevant principles as set out therein are,
inter
alia
, the following:-
7.1
Where
a
rule nisi
was
issued in interdict proceedings and a Respondent did not appear to
oppose but objected to the payment of costs and, by consent,
the
question of costs stood over for argument, costs had to be decided on
the basis that the rule had been correctly confirmed;
7.2
as
the Applicant was the successful party, that it was entitled to its
costs unless the Respondent could show special reasons why
it should
not be entitled thereto.
[8]
This Court is in agreement with the principles so
clearly stated by De Villiers J in the aforesaid matter. There is no
doubt that
the reasoning therefor, based,
inter
alia
, on the fact that the confirmation
of the
rule nisi
in
the absence of an application to vary or set it aside, gave rise to
an order of court, which until challenged, remained intact
and had to
be obeyed. Allied to this, was that the same order was, until
set aside, proof of an applicant's success in the
application.
This, in turn, gives rise to the generally acceptable principle in
our law that, unless exceptional circumstances
exist, costs should
normally follow the result and a successful party should not be
deprived of his or her costs.
[9]
However, there is a
further general principle that must be borne in mind. This is the
overriding principle in respect of costs that
they are in the
discretion of the Court.
[1]
To this principle
this Court would add another. That is, each case should be decided in
light of its own particular facts.
Facts
[10]
In deciding whether the Third Respondent should be
ordered to pay the costs of the application jointly and severally
with all of
the other Respondents, it is necessary for this Court to
decide –
10.1
Whether
the Court is entitled to consider the merits of the application;
10.2
If
so, whether the Third Respondent's involvement (or lack thereof) in
the illegal strike is sufficient for this Court, in the exercise
of
its discretion, to order that the Third Respondent pay those costs.
[11]
As to 10.1 above, it is the opinion of this Court
that the Applicant's reliance on the matter of
Society
for the Prevention of Cruelty to Animals, NO, WO 916 (Bloemfontein),
hereafter referred to as “
Society",
is misconstrued. Counsel for the Applicant has
taken the principles so clearly enunciated by De Villiers J to the
extreme. In this
regard, it was submitted that since the
rule
nisi
was correctly confirmed (unopposed
by all of the Respondents except the Third Respondent who consented
to the rule but opposed the
granting of costs against it) that the
issue of costs (on the basis of the Society matter) had already been
decided.
[12]
This is
not
what was held in the Society matter by De Villiers
J. In that matter the learned Judge held that the question of costs
had to be
decided on the basis that the rule had been correctly
confirmed and, as the Applicant was the successful party, it was
entitled
to its costs
unless
the Respondent could show special reasons why it
should not be entitled thereto. That is very different to costs
already having
been decided, which flies in the face of the
overriding general discretion given to the Court in respect of costs
(as dealt with
earlier in this judgment).
[13]
That being the correct interpretation of our law,
it is clear that this Court is entitled to examine the merits of the
application
insofar as they may be relevant to this
particular
matter and to the issue of costs.
[14]
The relevant facts in relation to the aforesaid
inquiry are,
inter alia
,
the following:
14.1
The
relief in the urgent application was aimed at prohibiting the further
usage of a highly inflammatory message aimed as a “Clarion
Call” for action against Foodtown and its staff and at
interdicting the Respondents from intimidating and displaying
violence
aimed at the Applicant, its staff and customers.
14.2
Central
to the merits of the application was the conduct of the Second
Respondent, one Sipho Magudulela, a Union organizer; the
Fourth
Respondent, one Gordon Nhlapo, a Shop Steward and the other
Respondents (with the exception of the 10
th
Respondent, being members of the Third
Respondent).
14.3
On
the 7
th
of
September 2021 the Fourth Respondent gathered the Applicant’s
staff whereafter 61 employees stopped their work and began
to strike.
14.4
Various
acts of intimidation manifested, as displayed in the Founding
Affidavit. The parties participating on different levels of
this were
the Respondents which incorporated the list of 61 employees of
Foodtown.
14.5
A
“Clarion Call” was issued on the 17
th
of September 2021, being a message
distributed on social media which was highly inflammatory and aimed
at mobilising “Social
Justice Defenders” against the
Applicant.
14.6
On
the 20
th
of
September 2021, 36 employees and ex-employees attended at the gate of
Foodtown. They obstructed customers from entering and exiting
the
premises. Also on this date, it was recorded by one of the
staff members (being on the list of striking employees) that
“
the
shop was not going to open until further notice as no customer will
come to the store, the store managers are racist, the shop
will
remain closed until the store managers are removed, if the customers
buy from the shop, they will take it and throw it on
the floor”.
14.7
Further
threats were observed and Foodtown was made aware that the store
would be trashed and customers would be harmed. Notwithstanding
complaints to the SAPS, no form of action manifested therefrom.
14.8
The
store was closed on 20 September 2021 at 16h19 and the relevant
parties were notified of same.
14.9
A
written demand was directed to the Respondents to withdraw the
“Clarion Call” by 17h00 hours on 21 September 2021.
Only
the Third Respondent responded thereto, when it distanced itself from
the message and denied any wrongdoing.
14.10
The matter had reached a crescendo by Monday 20
September 2021 and Tuesday 21 September 2021. As a direct
result of the Respondents’
conduct the Applicant was forced to
close down out of fear of harm to its staff, customers and
infrastructure, including stock.
14.11
The intimidation, violence and threats to the
Applicant continued despite the demand to cease and desist from such
behaviour and
this resulted in the Applicant's business remaining
closed up to the hearing of the urgent application.
[15]
In the Third Respondent’s Answering
Affidavit and Supplementary Affidavit filed in respect of the issue
of costs only (to
which the Applicant elected not to reply) it was
averred,
inter alia
,
that:
15.1
The
non-opposition of the Third Respondent to the relief sought by the
Applicant in the urgent application is consistent with its
position
that it did not support any misconduct on behalf of its members.
15.2
The
Third Respondent took active steps on the day of the strike to
resolve issues between its members and the Applicant. This resulted
in these members returning to work.
15.3
The
Applicant is aware of other organisations involved including the ANC
and EFF but seeks to obtain an order for costs in respect
of the
Third Respondent simply based on the fact that members of the Third
Respondent were involved in the illegal strike.
15.4
Nowhere
in the Founding Affidavit of the Applicant is the Third Respondent
directly linked to any particular unlawful conduct.
15.5
The
Third Respondent co-operated with the Applicant at all material
times.
15.6
Allegations are made by the Applicant without any
real proof thereof.
Findings
[16]
In light of the
aforegoing, there is a clear dispute of fact on the application
papers before this Court as to whether or not the
Third Respondent
had either done nothing to discourage its members from striking or
that it had even distanced itself from the
illegal strike, which
would have justified this Court making an order that the Third
Respondent be liable for costs.
[2]
Moreover, there are
no grounds for this Court to reject the opposition of the Third
Respondent as being far-fetched or unreasonable.
[17]
In the premises, based on the principles as set
out in
Plascon-Evans
and
followed in a long line of decisions thereafter, this Court must find
that the Applicant has failed to prove that the Third
Respondent's
conduct contributed towards the illegal strike and resulted in the
Applicant having to institute the urgent application,
thereby
incurring costs.
[18]
Of course, the issue of costs is not subject to
either party discharging an onus of proof in the true sense. As set
out earlier,
this court has a general discretion in respect thereof.
Together therewith is the general principle, as set out in the
Society
matter,
that where a rule has been correctly confirmed (which is common cause
in this matter) an Applicant is
generally
,
entitled to its costs unless the Respondent can show special reasons
why this should not be so.
[19]
This Court has already stated that this principle
(whilst undoubtedly correct) should not be over-emphasized to the
detriment of
this Court's general discretion. In addition thereto, is
the genuine and
bona fide
dispute of fact as set out earlier in this
judgment. Also to be considered when exercising its discretion are
the probabilities
in this matter.
[20]
In this regard, this Court is satisfied that the
probabilities favour the version as put forward by the Third
Respondent. Indeed,
the facts in support thereof are largely, if not
wholly, undisputed on the application papers before this Court. This
is as a direct
result of the Applicant declining to file a Replying
Affidavit but electing (erroneously) to place great reliance on the
Society
matter
whilst misconstruing the true principles as set out therein. In
the premises and in the exercise of its general discretion
in respect
of costs (exercised judicially and after consideration of all the
facts) this Court finds that the application by the
Applicant that
the Third Respondent should pay the costs of the application, should
be dismissed, with costs.
Order
[21]
This Court makes the following order:
1.
The
application by the Applicant that the Third Respondent pay the costs
of the application jointly and severally with the First,
Second and
Fourth to Tenth Respondents (including any reserved costs in the
Application), is dismissed.
2.
The
Applicant is to pay the costs of the application as set out in
paragraph 1 of this order.
B.C. WANLESS
Acting Judge of the High Court
Gauteng Division, Johannesburg
Heard
: 16 November 2022
Ex Tempore
:
11
April 2023
Transcription
: 10 May 2023
Appearances
For
Applicant
:
WC
Carstens
Instructed
by
:
RC
Futter & Associates
For
Third Respondent
:
M
Bayi
Instructed
by
:
Bayi
Attorneys
[1]
Kruger
Bros & Wasserman v Ruskin
1918
AD 63
at 69;
Mouton
v Die Mynwerkersunie
1977
(1) SA 119
(A);
Weare
and Another v Ndebele NO and Others
(CCT15/08)
[2008] ZACC 20
;
2009 (1) SA 600
(CC) at 623.
[2]
Algoa
Bus Company, (Pty) Ltd v Transport Action Retail and General Workers
Union. (Thor, Targwu) and Another
[2015]
9 BLLR 952
(IC).
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