Case Law[2023] ZAGPJHC 897South Africa
Living Africa One (Pty) Ltd v Ekurhuleni Metropolitan Municipality and Another (A5019/2022) [2023] ZAGPJHC 897; [2023] 4 All SA 111 (GJ); 2023 (6) SA 551 (GJ) (11 August 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
11 August 2023
Headnotes
Summary:
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Living Africa One (Pty) Ltd v Ekurhuleni Metropolitan Municipality and Another (A5019/2022) [2023] ZAGPJHC 897; [2023] 4 All SA 111 (GJ); 2023 (6) SA 551 (GJ) (11 August 2023)
Living Africa One (Pty) Ltd v Ekurhuleni Metropolitan Municipality and Another (A5019/2022) [2023] ZAGPJHC 897; [2023] 4 All SA 111 (GJ); 2023 (6) SA 551 (GJ) (11 August 2023)
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sino date 11 August 2023
FLYNOTES:
EVICTION – Municipality –
Temporary
alternative housing
– Property sought to be
developed but occupied by informal settlements – Failure of
municipality to provide
temporary alternative housing for
execution of eviction order – Contempt of court –
Wilfulness and mala fides
not proved – Failure resulting in
infringement of constitutional rights – Owner arbitrarily
deprived of its right
to use and enjoy the property – Just
and equitable remedy – Constitutional damages –
Quantification of
deferred – Constitution, s 25(1).
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
Case
Number: A5019/2022
(1)
REPORTABLE: YES
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED.
Date:
11/08/2023
In
the matter between:
LIVING
AFRICA ONE (PTY)
LTD
Appellant
AND
EKURHULENI
METROPOLITAN MUNICIPALITY
First Respondent
MUNICIPAL
MANAGER: EKHURHULENI
METROPOLITAN
MUNICIPALITY
Second Respondent
Coram:
Coppin, Opperman et Dippenaar JJJ
Summary:
Appeal
- Failure of municipality to provide temporary alternative housing
for execution of eviction order - contempt of court -
wilfulness and
mala fides
not proved - Failure resulting in infringement of
constitutional rights - just and equitable remedy - constitutional
damages -
quantification of deferred.
JUDGMENT
COPPIN
J (OPPERMAN
et
DIPPENAAR JJ CONCURRING)
[1]
This
is an appeal to the Full Court of this Division, with the necessary
leave, against a decision of Francis J (the court
a
quo
)
of 16 September 2021 in terms of which the court
a
quo
dismissed: (a) the appellant’s application to hold the
respondents (the municipality and its municipal manager) in contempt
of court – the orders relating to the temporary accommodation
of illegal occupants on the appellant’s land known as
a Portion
of the Remaining Extent of the Farm Driefontein 85, Registration
Division IR. Province of Gauteng (the property) and
(b) a
constitutional damages claim brought by the appellant for the alleged
infringement of its rights in terms of section 25(1),
alternatively
sections 25(2) and (3), and section 34 (1), read with section 1, of
the Constitution, because of the continued illegal
occupation of the
property.
[2]
Accordingly,
the main issues that arise for consideration in this appeal are: (a)
the contempt; (b) the alleged infringement of
the constitutional
rights as aforementioned; and (c) the appropriateness of
constitutional damages as just and equitable relief,
if any such
infringements have been proved. The facts relevant to the issues are
set out in detail in the judgment of the court
a
quo
,
consequently in this judgment a repeat of only the salient facts
should suffice.
Salient
Facts
[3]
Between
October and December 2013 representatives of the appellant met with
representatives of the municipality in order to inform
the
municipality that the appellant intended developing the property and
presented the municipality with a proposal regarding the
relocation
of the Angelo Informal Settlement. There was no response from the
municipality and the appellant proceeded to apply
to the Gauteng
Local Division of the High Court for an order removing the informal
settlements from the property. In that application
the first
respondent was cited as “the unlawful invaders of the Angelo
dump” and the second respondent there was cited
as “the
unlawful occupiers of the Angelo dump”. The municipality was
also cited in those proceedings as a respondent.
[4]
On
1 August 2014 Sutherland J (as he then was) made an order evicting
the first and second respondents in those proceedings from
the
property. In terms of the order, they were to vacate the property on
or before 1 February 2015 and if they did not
vacate the
property by then, the Sheriff or his lawful deputy were authorised
and directed to evict them from the property. The
unlawful occupiers
in that application were also interdicted and restrained from
re-entering the property after they had been evicted
therefrom, as
aforesaid. The court also authorised the Sheriff or his deputy to
evict them if they re-occupied the property in
those circumstances.
[5]
Of
significance in this matter is the following order granted by
Sutherland J on that occasion:
“
6.
The [municipality] is to provide temporary emergency accommodation
for any of the First and Second Respondents who may be entitled
to
such temporary emergency accommodation, and to take any and all steps
necessary prior to 1
st
February
2015 to identify those who may require it.”
[6]
The
order of Sutherland J was not appealed against and it is further not
disputed that the municipality did not comply with that
order by the
deadline, that is 1 February 2015. As a result, the appellant
approached the court again for relief.
[7]
On
6 October 2015 Mashile J granted an order (i.e. a structured
interdict) in effect, confirming that the municipality was
constitutionally
and statutorily obliged to ensure that it complied
with paragraph 6 of Sutherland J’s order. Mashile J further
declared that
the municipality’s failure to comply with its
obligations in that regard has infringed the appellant’s right
not to
be arbitrarily deprived of its property as contemplated in
section 25 (1) of the Constitution.
[1]
[8]
Mashile
J further ordered the municipality to:
“
3.1
[U]ndertake a survey of the occupiers of the property on or before
the 15
th
October
2015;
3.2
report, on oath, to this Court on or before the 22
nd
October 2015 with the outcome of the survey undertaken and included
therein, [and] to provide the details of [its] plan of action
to give
effect to Sutherland J’s Order, including the particulars of
any application to the Gauteng Department of Housing
for the
provision of funds for any project to be undertaken and the timing of
[its] compliance with Sutherland J’s Order.”
[9]
In
terms of Mashile J’s order the appellant was also given the
entitlement to comment on the municipality’s report within
one
week, after which the matter could be set down by either party for
such relief “as is just and equitable in the circumstances.”
The municipality was also ordered to pay the appellant’s costs
on the attorney and client scale.
[10]
The
order of Mashile J was also not appealed against and had also not
been complied with. The deadline set for the municipality
to survey
the occupiers of the property came and went and an exchange of
correspondence between the parties followed.
[11]
It
is common cause that during December 2015 the municipality applied to
the National Government for funding for the relocation
of the illegal
occupiers of the property, but the application was unsuccessful and
there was no follow-up. During March 2016 the
municipality
(seemingly) completed a household audit of the occupiers and at the
end of 2016 started a public consultation process
regarding the
relocation. However, no plan of action was submitted.
[12]
According
to the municipality the final audit report, which was compiled by PMM
Mobile Solutions, and which utilised youth from
the area to undertake
the audit, reflected the following: that there were a total of 748
households involved; potential qualifiers
and non-qualifiers for a
full housing subsidy were noted, as well as persons having an income
exceeding R3500, as well as those
who previously benefited from the
housing subsidy scheme; their citizenship and those individuals with
dependants and; those who
are single (and with no dependants) were
also noted.
[13]
In
2017 the municipality purchased Germiston Extension 46 for an amount
of R12 100 000.00 (twelve million and one hundred
thousand
rand) from the appellant for the purpose of re-locating the unlawful
occupiers. This land was part of the appellant’s
proposed
“Green Reef” development.
[14]
In
2017 steps were taken by the municipality to develop the land it
purchased from the appellant, and the municipality and the appellant
exchanged correspondence and held meetings at the instance of the
appellant where possible solutions to the appellant’s plight,
namely the continued occupation of its land by the illegal occupants,
was discussed.
[15]
On
13 February 2017 the municipality informed that the first portion of
Germiston extension 46 had been cleared and pegged and was
ready for
the installation of temporary structures to accommodate the persons
that were to be relocated. The municipality’s
Roads and
Stormwater Department and its Parks Department assisted in the
clearing of the site. By 4 March 2017 95% of the area
had been
cleared. In May 2017 the City Planning Department of the municipality
approved the township plan.
[16]
However,
on 23 October 2017 the Gauteng Department of Agriculture and Rural
Development issued the municipality with a non-compliance
notice in
respect of the site. In terms of the notice the municipality was to
cease all work on the land that is known as Germiston
Extension 46,
and was also barred from relocating unlawful occupiers from the
Angelo Informal Settlement to that site. Businesses
situated adjacent
to Germiston Extension 46 also successfully brought an application in
the Gauteng Local Division of the High
Court for an interim interdict
to interdict and restrain the municipality from erecting structures
on the land and from allowing
persons from the Angelo Informal
Settlement to relocate to the site for the purposes of residing
there. The municipality was
also ordered to secure the site. The
businesses contended,
inter
alia
,
that the municipality had failed to comply with building laws.
[17]
According
to the municipality, this proved onerous. In compliance with the
court order, the process of relocating the unlawful occupiers
ceased.
The municipality contends that they could not secure the site
due to inadequate funds and had requested its Police
Department to
undertake ad hoc patrolling of the site. This, however, proved
ineffective due to limited capacity. As a result,
unauthorised
persons still accessed the site and vandalised it. Structures on the
site were stripped of material which was then
stolen.
[18]
The
municipality made efforts to have the non-compliance notice
withdrawn. It contends that it was not responsible for the
non-compliance
that had resulted in the notice being issued.
According to the municipality, it also engaged the relevant MEC and
in January 2017
submitted an environmental report to the Gauteng
Department of Agriculture and Rural Development in which it addressed
the alleged
non-compliance. The municipality contends that these
efforts proved unsuccessful. The Department was adamant that there
had to
be compliance first before the notice could be withdrawn.
[19]
In
early 2018, and according to the municipality, due to all the
difficulties it experienced in respect of its efforts to relocate
the
unlawful occupiers of the property to the site at Germiston Extension
46, it decided to relocate them to another site, namely,
Comet
Extension 17, instead. Comet Extension 17 is part of the farm
Driefontein and is situated in the Boksburg area. It had the
potential to accommodate 3300 high-density housing units. The initial
projected timeline for the installation of services at this
site was
as follows: the tender award date was 13 December 2018; the
introductory meeting was on 18 January 2019; the site hand
over
occurred on 27 March 2019; the contractual starting date was 1 April
2019; the anticipated duration of the project was 10
months and the
anticipated completion date was sometime in February 2020.
[20]
On
4 July 2019 the appellant brought an urgent application in the
Gauteng Local Division of the High Court under case number
2019/23725 to compel the municipality to comply with the orders that
had been granted by Sutherland J on 1 August 2014 and by Mashile
J on
6 October 2015. On 19 September 2019 Siwendu J granted an order
in favour of the appellant in that matter. In essence,
Siwendu J
ordered the municipality to ensure that the relocation of the
unlawful occupiers of the property was given effect to
by no later
than 30 September 2020, and referred the matter for case management.
[21]
On
28 November 2019, the case management judge, Meyer J (as he then was)
directed the municipality to provide a report by 5 December
2019
setting out the steps taken since the grant of Sutherland J’s
order on 1 August 2014. On 6 December 2019, Meyer J noted
a lack of
particularity in the report the municipality had submitted and
required it to submit a new report by 3 February
2020. The
municipality filed a report as ordered, although the appellant
contends that the report fell short of what Meyer J required.
The municipality further assured Meyer J in a letter that it
intends complying with the court orders made in respect of the
unlawful occupiers of the property.
[22]
On
28 February 2020, Meyer J directed the municipality to file monthly
reports regarding its compliance. On 5 August 2020 the parties
met on
Meyer J’s direction, where the municipality revealed that
compliance with those court orders would only be possible
in the
next 6 to 7 years. On 11 September 2020 Meyer J directed
timelines for the litigation, that culminated in the order
of Francis
J, which is the subject of this appeal, to be furnished.
[23]
The
municipality submitted further reports. It contends, basically, that
it needs more time to effect the relocation of the unlawful
occupiers
off the appellant’s property and that it cannot simply relocate
people from one point to another, but can only
do so after it had
made “alternative, decent accommodation available to them.”
It further contends that “the
relocation itself must be carried
out in a manner that is fair and protects the right to dignity of the
people concerned.”
[24]
The
municipality further contends that the required services at the
places to which these people are to be relocated takes time
to be
installed and requires planning by various of its departments, as
well as funding, approval from other organs of state, community
participation, et cetera, and that all of this cannot be accomplished
“overnight”. With reference in particular to
a timeline
that the municipality had agreed to with the appellant for compliance
with the order of Siwendu J, namely 30 September
2020, the
municipality contends that the date was unrealistic if regard is had
to the steps that still had to be taken to get the
alternative land
ready to receive occupants.
[25]
The
municipality submitted in the court
a
quo
and in this Court that it required an extension of the time period
within which it was required to fully implement the relevant
court
orders. Besides the logistical challenges, and resistance from
established communities, it cites financial and budgetary
constraints
as hindering the implementation of the court orders. In its
supplementary answering affidavit, which was deposed to
by the city
manager, Mr Davey, on or about 20 November 2020, it stated that as at
that stage the following was the position: in
respect of Germiston
Extension 46 – environmental authorisation was still required
as a precondition for proclaiming it as
a township and the
municipality was required to resubmit its application for the formal
housing project. In addition, the site
there required rehabilitation
which would take no less than 24 months.
[26]
According
to Mr Davey, in respect of Comet Extension 17, the following still
required attention: town planning; a handover of the
water and sewage
network after an audit had been completed; roads and storm water
services still required construction; the electricity’s
network
still required construction and implementation and top structure
construction was still required. Mr Davey stated
that this would
only commence once the budget application approval had been received
by the Gauteng Department of Human Settlements
and that at the stage
he made the affidavit the municipality anticipated “that it
would take a minimum of six years to complete
the whole project.”
Further, according to Mr Davey, it was anticipated that the
municipality would relocate the relevant
people as and when the
required housing units were completed from time to time.
[27]
At
the outset of the hearing on appeal, reference was made to further
reports that had been submitted by the municipality before
the
hearing of the appeal and after the judgment of the court
a
quo
.
The detail of those reports will only be dealt with insofar as it is
relevant to the issues in this matter and at that juncture.
For now,
it should suffice to indicate that in terms of the last report the
municipality submitted, it anticipates that the relocation
of the
unlawful occupiers off the appellant’s property is only likely
to occur in or about a few years’ time, that
is, by no earlier
than 2035 and possibly only by 2038.
The
Issues
(a)
The
alleged contempt
[28]
It
is now trite that the party in civil contempt proceedings, who
alleges that the other (the contemnor) is guilty of acting in
contempt of a court order, must establish (a) that the order alleged
to have been breached was granted against the contemnor; (b)
that the
order was served upon the contemnor or that the contemnor had
knowledge of it; and (c) that the contemnor did not comply
with the
order. Upon proof of those facts there is a presumption or inference
of wilfulness and
mala
fides
,
and the contemnor has an onus to rebut that inference on a balance of
probabilities. This may be done, for example, by establishing
that
the court order was not deliberately or intentionally disobeyed.
Before imposing a criminal sanction, the guilt of the contemnor
has
to be established beyond a reasonable doubt,
[2]
for other coercive remedies to be applied, the contempt must be
established on a balance of probabilities.
[29]
The
issue in this matter is whether the respondents had rebutted the
inferences of wilfulness and
mala
fides
on
a balance of probabilities, or to put it differently, whether they
had managed to establish a reasonable doubt that their failure
to
comply with the court orders was not wilful and
mala
fide.
[30]
The
court
a
quo
found that the respondents had succeeded in that regard. The court
a
quo
,
in essence, found that the efforts made by the municipality, which
could not be contested by the appellant, and were effectively
common
cause, demonstrated that its non-compliance with the court orders
(including the time stipulations therein) was not wilful
and
mala
fide.
It
found that the steps that had been taken were serious and that the
municipality had spent money in its effort to relocate the
unlawful
occupiers and that there was no evidence that this had been done in
bad faith.
[31]
The
court
a
quo
summed up the position as follows:
“
It
is clear from what is stated in the [appellant’s] founding and
supplementary affidavits and the correspondence attached
thereto that
it cannot be said that the respondents have been unreasonable or that
they simply sat back and did absolutely nothing
about complying with
the court orders in issue. It shows that the respondents have taken
serious, deliberate and reasonable steps
within their powers to
comply and give effect to the court orders. The mere fact that it has
taken long to fully comply with the
court orders is not indicative of
the respondents’ intention to violate the dignity, reputation
and authority of this court.
The delays were occasioned by all the
processes which must be embarked upon in order to construct decent
temporary emergency accommodation.
The respondents had gone further
to actually provide permanent accommodation to the relevant affected
individuals. This was consistent
with the respondents’
obligations in terms of the Constitution.”
[32]
The
court
a
quo
went further to find that the appellant had not produced any evidence
which would justify it to conclude that the respondents have
deliberately violated the dignity, authority and reputation of the
court. It found, effectively, that the respondents had made
genuine
efforts to comply with the court orders and the case management
directions. Furthermore, it found that the respondents
had
meaningfully engaged with the appellant and the court in respect of
the steps that they had taken to comply with the court
orders.
[33]
The
court
a
quo
found, in effect, that realistically, the relocation of the concerned
individuals could only take place after the construction
of permanent
structures and that this would take a number of years and required
adequate funding. These persons, according to the
court
a
quo
,
could not simply be relocated, but their relocation ought to occur in
a manner that is consistent with the municipality’s
constitutional obligations, meaning that these persons had to be
“relocated in a manner which is protective” of their
rights in terms of the Constitution. In conclusion, the court
a
quo
found that there was no factual or legal basis for it to declare that
the respondents were in contempt of the court orders that
had been
made.
[34]
The
court
a
quo
rejected the appellant’s criticism of the steps that the
respondents had taken. It found that even if it were to accept that
the delays experienced by the respondents were as a result of alleged
general institutional incompetence and maladministration
that did not
mean that such incompetence or maladministration was deliberate, or
wilful or
mala
fide
.
Of significance, the court
a
quo
found that the effect of the order of Siwendu J was to alter the
timeframes set in the judgments of Sutherland J and Mashile J.
It held as follows:
“
What
happened in the past about the non-compliance of the two court orders
is strictly speaking not a factor that needs to be considered
by this
court simply because the time period within which the respondents had
to act was extended.”
In
coming to its conclusion, that it had not been established that the
respondents had acted in contempt of the court orders, the
court
a
quo
also took into account the “serious interaction”
of the parties to find a solution to the problem of the illegal
occupiers
of the appellant’s property.
[35]
On
appeal the appellant argued, essentially, that it is apparent from
the papers that the requirements for finding that the respondents
had
acted in contempt had been met and that the presumption of wilfulness
and
mala
fides
had not been rebutted by the respondents. In particular, it
contended: (a) that the appellant’s conduct was not relevant
to
the enquiry whether the respondents had rebutted the presumption of
wilfulness and
mala
fides
and that the court
a
quo
erred
in taking into account such conduct in that regard; (b) that the
following facts on their own and cumulatively showed wilfulness
and
mala
fides
on the part of the respondents and that the court
a
quo
erred in not finding accordingly, namely: (i) there was a seven-year
period of delay since the order of Sutherland J; (ii) Siwendu
J’s
order was granted by agreement between the parties, and the
respondents consciously agreed in that order to comply with
Sutherland J’s order by 30 September 2020; (iii) they did not
contend there that the date was unrealistic and their change
in
attitude gives rise to a reasonable inference that at the time of the
agreement inadequate facts had been placed before Siwendu
J.
[36]
The
appellant further contends (iv) that despite agreeing then to the
date of 30 September 2020, it appeared (i.e. at the time
of the
matter being argued in the court
a
quo
)
that the order of Sutherland J would “only be implemented
possibly by, but in all likelihood only well after 2027, which
can
only mean that [the order made by Siwendu J] was, at best, recklessly
agreed to by [the municipality].”; (v) instead
of focusing on
providing emergency temporary accommodation as was required in the
order of Sutherland J, the municipality chose
to focus on providing
permanent accommodation for the illegal occupants of the appellant’s
property. This deliberate choice
was a significant cause for the
delay in compliance with Sutherland J’s order; and (vi)
“obvious extensive poor planning
and lack of foresight”
on the part of the municipality contributed to the non-compliance
with Sutherland J’s order.
According to the appellant, this is
evident,
inter
alia
,
from the facts alleged in the interdict by the business community in
respect of the occupation of the Germiston Extension 46 land;
and
(vii) very little had been done by the municipality to accelerate
compliance with the court orders and the progress reports
were
submitted merely to comply with the case management directions but do
not demonstrate the respondents’ commitment to
comply with any
of the relevant court orders.
Discussion
[37]
The
appellant’s conduct was relevant in considering the question
whether the respondents were in contempt, as it was in response
to,
or support of, all the efforts made by the respondents to comply with
the court orders requiring the relocation of the illegal
occupiers.
Hence the court
a
quo
did not err in taking such conduct into account and, instead, would
have erred by ignoring it.
[38]
There
is no evidence that the respondents simply wilfully and
mala
fide
ignored the court orders, but there is ample evidence that the
respondents acted with good intention and that they encountered
a
myriad of obstacles in their efforts to relocate the unlawful
occupiers of the appellant’s property. In all probability
they,
including the appellant, had grossly underestimated the enormity or
the true depth of the challenges that such a relocation
would
present, and as a result, unrealistic deadlines or timelines were
fixed or agreed to.
[39]
Institutional
incompetence, maladministration and a lack of adequate resources,
further bedevilled the execution of the task of
the relocation, but
there is no definitive evidence that competence and optimum
utilisation of the resources available to the respondents
would have
resulted in the deadlines that had been set or agreed to, or
anticipated by the appellant, and stipulated in the respective
orders, being met by those dates.
[40]
The
efforts made by the respondents cannot simply be ignored and their
conduct in attempting to give effect to the court orders
is wholly
inconsistent with an inference of wilfulness and
mala
fides
.
Even if some of the difficulties the respondents experienced may have
been as a result of incompetence and could, arguably, have
been
avoided, that still, does not mean that they were wilful or
mala
fide
.
[41]
Taking
all the facts into account there is a reasonable doubt that the
respondents wilfully and
mala
fide
disobeyed the court orders. Or to put it differently, it has not been
proven beyond a reasonable doubt, or on a balance of probabilities
that the respondents acted in contempt of the court orders, or that
they wilfully and in bad faith set out to violate the dignity,
authority and reputation of the court by not complying to the letter
with the court orders that were made. Non-compliance on its
own,
provided it is
bona
fide
,
does not constitute contempt.
[3]
[42]
Without
detracting from what is stated above, there is no evidence that the
second respondent, the City Manager, Mr Davey, who is
cited in his
personal capacity, deliberately defied any of the court orders. It
had to be shown that he himself, wilfully and maliciously
failed to
comply with the court orders
[4]
.
In my view, the respondents managed to rebut the inference of
wilfulness and
mala
fides
and the court a quo’s conclusion to that effect cannot be
faulted.
(b)
Constitutional
damages
[43]
The
court
a
quo
held that since it was found that the respondents were not guilty of
contempt of court the issue of constitutional damages fell
away.
Accordingly, the court
a
quo
did not consider that aspect of the case.
[44]
The
appellant contends that the court
a
quo
was wrong, because that aspect was not dependent on whether the
respondents were guilty of contempt, but was a self-standing claim
based on the infringement by the municipality of its rights in terms
of sections 25 and 34 of the Constitution.
[45]
In
its original notice of motion in the application brought in the court
a
quo
,
the appellant, in addition to seeking an order that the matter be
treated as one of urgency, sought an order in the following
terms:
“
2
That the first and second respondents are in contempt of the orders
of the Honourable Messrs Justice Sutherland
and Mashile of
1 August 2014 and 6 October 2015 respectively;
3.
That
the first respondent is fined an amount of R1 000 000.00
(One Million Rand);
4.
That
the second respondent is fined an amount of R250 000.00 (Two
Hundred and Fifty Thousand Rand) which amount is to be paid
de
bonis propriis
,
alternatively the second respondent is to be imprisoned for a term
deemed appropriate by the Honourable Court;
5.
That
the penalties in paragraphs 3 and 4 above be suspended on condition
that the first and second respondents procure the relocation
of the
residential occupiers of the applicant’s property, as reflected
in the orders referred to in paragraph 2 above, within
1 (one) month
of any order of this Honourable Court;
6.
Alternatively
to paragraph 5 above, that the first and second respondents are to
relocate any residential occupiers of the said
property within 1(one)
year of the date of any order of this Honourable Court on condition
that the first respondent pays to the
applicant rental for its
property, reflected in the orders referred to in paragraph 2 above,
in the amount of R1.00 (one rand)
per square metre from the date of
non-compliance with the order of the Honourable Mr Justice Sutherland
dated 1 August 2014, until
final relocation of all residential
occupants;
7.
Further
and/or alternative relief;
8.
That
the costs of this application be reserved for consideration at the
hearing of this application.”
[46]
In
paragraph 9 of its founding affidavit , the appellant, in essence,
repeats the relief it sought in its notice of motion. It is
thus
clear from its application that its monetary claim of one rand per
square metre was an alternative to its prayer that the
fines imposed
on the respondents for contempt be suspended on condition that the
respondents relocate the illegal occupiers of
its property within one
year of the order that it wanted the court
a
quo
to make in respect of the contempt. Furthermore, the monetary relief
sought was claimed in the event that the respondents did not
procure
the relocation within one year of the court’s orders.
[47]
Monetary
relief is thus claimed as an alternative condition of suspension of
the penalty sought. It is thus self-evident that if
the respondents
were not found to be in contempt and no penalties (or fines) were
imposed, the issue of the suspension, including
the conditions of
such suspension, would not have arisen for decision.
[48]
The
claim of one rand per square metre in the appellant’s original
papers was not the constitutional damages claim which the
appellant
is referring to. In its amended notice of motion, the appellant
inserted a paragraph in terms of which it seeks an order
that the
municipality be declared to have infringed its rights in terms of
section 25(1), alternatively sections 25(2) and (3)
and section 34,
read together with section 1(c) of the Constitution, in that it
“failed to provide temporary emergency accommodation
to the
unlawful occupiers” of the appellant’s property pursuant
to the eviction order of Sutherland J of August 2014.
[49]
In
addition, in its amended notice of motion, the appellant sought an
order declaring that it was entitled to the payment of compensation
in respect of the occupation of its property by the unlawful
occupiers from 1 February 2015. And it alleged further in that
document
that just and equitable relief for the infringement of its
rights would be compensation in the amount of R6.50 (six rands
and fifty cents) per square meter, totalling R3 672 500.00
(three million six hundred and seventy two thousand five
hundred
rands) per month.
[50]
In
its supplementary founding affidavit, the appellant clarifies that
the constitutional damages remedy which it is seeking is separate
and
distinct from the citation for contempt. The appellant further avers
that the common law remedy of contempt cannot effectively
address the
harm that it suffered through the unlawful infringement of its rights
in terms of sections 25 and 34 of the Constitution.
[51]
Hence,
the appellant’s claim for “constitutional damages”
is not dependent on a finding that the respondents were
in contempt
of court. The court
a
quo
thus erred in concluding that it became a “non-issue”
because of its finding that the respondents were not in contempt.
Accordingly, the court
a
quo
had to deal with the claim for constitutional damages notwithstanding
its finding on the contempt issue.
[52]
Even
though the court
a
quo
did not deal with that issue, this is not a matter where that issue
ought to be referred back for a decision by that court. Given
all the
circumstances, including the interests of justice, it is appropriate
for this court to deal with the issue, even though
it is effectively
raised for the first time, on appeal.
[5]
[53]
In
terms of the court orders that are the subject of this appeal, the
municipality was obliged to provide emergency temporary housing
to
those illegal occupiers that would require the same upon their
eviction from the appellant’s property. The failure to
provide
such alternative housing meant that the evictions could not be
carried out. The survey conducted by the respondents seem
to indicate
that more than 700 households would be affected, but does not clearly
spell out whether certain or all of those households
would be in need
of emergency housing upon their eviction from the property.
[54]
The
end result is that even though an eviction order was issued as long
ago as August 2014 by Sutherland J, and was to be executed
by 1
February 2015, the unlawful occupiers effectively still remain in
occupation of the appellant’s property, and will in
all
probability still remain in occupation of that property for an
indefinite period, or at least for many more years until the
municipality relocates them.
[55]
In
Blue
Moonlight
,
[6]
the Constitutional Court, in determining the question of whether it
was just and equitable to grant an eviction under the Prevention
of
Illegal Eviction from and Unlawful Occupation of Land Act (PIE),
[7]
considered the property owner’s rights to property; the right
of the occupiers to housing and equality; and the local government’s
legal obligation to provide temporary emergency housing in the event
of an eviction. The CC held, concerning the continued occupation
by
the occupiers of the owner’s land after process had been issued
for their eviction, that “the owner, who is aware
of the
presence of occupiers over a long time, must consider the possibility
of having to endure the occupation for some time.”
[8]
However, the CC also went on to hold that “[o]f course a
property owner cannot be expected to provide free housing for the
homeless on its property for an indefinite period.”
[9]
[56]
The
Constitutional Court further held that “in certain
circumstances an owner may have to be somewhat patient, and accept
that the right of occupation may be temporarily restricted . . . An
owner’s right to use and enjoy property at common law
can be
limited in the process of the justice and equity enquiry mandated by
PIE.”
[10]
[57]
The
appellant contends that the municipality’s conduct in failing
to relocate the unlawful occupiers of its property has resulted
in a
breach of section 25(1) of the Constitution, alternatively, that its
property has been temporarily expropriated in breach
of sections
25(2) and (3) of the Constitution.
[58]
The
appellant argues that part of the order made by Mashile J on 6
October 2015, was to declare that the municipality’s failure
to
provide the temporary emergency accommodation to those unlawful
occupiers that require such accommodation had infringed the
appellant’s right not to be arbitrarily deprived of its
property as contemplated in section 25(1) of the Constitution and
the
municipality has never appealed that order of Mashile J.
[59]
The
appellant further contends that the municipality’s continued
failure to relocate the occupiers of its property interferes
with its
ability to use, enjoy and exploit the property and that it is
prevented from developing, selling or using the property.
It further
argues that this interference with its rights to use, enjoy and
exploit the property, is a “deprivation of property”
as
contemplated in section 25(1) of the Constitution and that the
deprivation is substantial.
[11]
[60]
In
Mkontwana
[12]
the Constitutional Court held that whether there has been a
deprivation depends on the extent of the interference with or
limitation
of the use, enjoyment and exploitation of the right. It
further held that substantial interference or limitation that goes
beyond
the normal restrictions on property use or enjoyment found in
an open and democratic society would amount to deprivation.
[61]
According
to the appellant’s argument, Sutherland J undertook the same
justice and equity enquiry considered in
Blue
Moonlight
[13]
and effectively held that it was just and equitable to expect the
appellant to accept that its section 25 rights may be
temporarily
restricted for a period of another six months, i.e.
between the date of the order (1 August 2014) and the date of the
eviction
(i.e. 1 February 2015). And further, that Sutherland J
considered that it was just and equitable and possible for the
municipality
to relocate those unlawful occupiers that required
emergency accommodation in fulfilment of its constitutional duties.
[62]
The
appellant argues that the continued deprivation of its property,
beyond 1 February 2015 was unjustifiable because “it
takes
place outside the law of general application” that reasonably
promotes the limitation of its property rights in terms
of PIE.
[63]
Relying
on the decision in
Modderklip
,
[14]
counsel for the appellant submitted that the Supreme Court of Appeal
(SCA) in that matter held the local authority there liable
for
violating landowner’s rights in similar circumstances and that
there too the continued unlawful occupation of the owner’s
land, after an eviction order had been issued, came about because the
occupiers had nowhere else to go. According to the appellant,
the SCA
held there that the State could have ended the unlawful occupation by
either relocating the occupiers there to other land
or by purchasing
the Modderklip land. The appellant submits that, since that did not
happen there, the SCA held that the failure
of the State to provide
the unlawful occupiers with alternative housing constituted a breach
of their rights in terms of section
26(1) and (2) of the
Constitution, and that such finding led “ineluctably to the
conclusion that the State simultaneously
breached its section 25(1)
obligations”
[15]
toward
the owner of Modderklip. Given the similarities, so argued the
appellant, the same findings could be made in this matter.
[64]
In
addition to alleging an infringement of its section 25 rights, the
appellant alleged that its rights in terms of section 34 of
the
Constitution had been infringed. That section provides that
“[e]veryone 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.”
[65]
The
appellant contended that because it is precluded from executing
Sutherland J’s order as a result of the municipality’s
failure to provide emergency temporary accommodation to occupiers of
its property, its rights in terms of section 34 have been
limited
unjustifiably. For this claim the appellant once again relied on
Modderklip
,
albeit the Constitutional Court’s decision in that matter,
[16]
where the Constitutional Court held that the State had infringed a
landowner’s section 34 rights because it had not assisted
the
owner to execute the eviction order because of its failure to take
reasonable steps to ensure that the owner had an effective
remedy.
[66]
The
appellant argued that in this matter the municipality had to do more
than merely take reasonable steps to comply with the order
of
Sutherland J. It had to comply fully with that order, but, more
importantly, had to do so by the date specified in the order.
The
appellant argued that the municipality has not taken reasonable steps
to ensure that the appellant’s remedy was effective
as required
by the rule of law.
[67]
It
contended that a just and equitable remedy, as contemplated in
section 172(1)(a) of the Constitution, for the infringement
of
its section 25 and 34 rights, was an award of constitutional damages
and that such damages would not only serve to protect and
enforce the
Constitution, but to vindicate its rights and compensate it to the
extent that it is prevented from using, letting
out or selling that
portion of its property that is being unlawfully occupied. The
appellant contended that such an award is supported
by precedent of
the Constitutional Court and the SCA, and also refers in that regard
to the decision of the SCA in
MEC
for the
Department
of Welfare v Kate
[17]
and the Constitutional Court’s decisions in
Modderklip
[18]
and in
Thubakgale.
[19]
[68]
The
appellant also made submissions regarding the quantum of those
damages, but those are considered later in this judgment.
[69]
In
answer to the appellant’s arguments in support of its claim for
constitutional damages, the respondents essentially submitted
the
following: That the claim is based on the finding that the
respondents were in contempt of the court orders, and that contempt
cannot be enforced by such a claim; they contended that the relief
contemplated in section 172(1)(b) of the Constitution, which
may
include an award of constitutional damages, can only ensue upon an
order being granted in terms of section 172(1)(a), in terms
of which
a law or conduct that is inconsistent with the Constitution is
declared invalid to the extent of its inconsistency. Since
the
appellant had not been granted such an order, it cannot seek
constitutional damages as relief.
[70]
It
was argued by the respondents that in a previous hearing, Mashile J
already granted an order declaring that the municipality’s
failure to comply with the order of Sutherland J has infringed the
appellant’s right not to be arbitrarily deprived of its
property, as contemplated in section 25(1) of the Constitution, that
there was no basis for the appellant to seek the same relief
in this
matter and that the court in this matter was precluded from granting
such damages in those circumstances, because of the
“once and
for all rule”. According to this argument, Mashile J’s
order “brought to an end whatever cause
of action” the
appellant had relied on to enforce the municipality’s failure
to comply with the eviction order of Sutherland
J. They contended
that the order of Siwendu J merely fixed another date by which the
respondents had to comply with the orders
of Sutherland J and Mashile
J, and did not address the question of constitutional damages at all.
They submit the appellant should
have claimed damages in the matter
that served before Mashile J but since it did not do so, it was
precluded from claiming those
damages in this matter, essentially
relying on the same cause of action. The respondents argued that the
appellant’s rights
in terms of section 34 of the Constitution
were not infringed and remain unfettered. According to the
respondents, the appellant’s
complaint is about a failure to
comply with court orders and not about the judicial process
contemplated in section 34.
[71]
According
to the respondents, the facts in
Modderklip
are distinguishable from those in this matter and the steps taken by
the respondents to comply with the court orders “do
not justify
a conclusion that the delay in giving full effect to the court orders
entitles [the appellant] to constitutional damages.”
The mere
fact that there have been delays “does not on its own mean that
reasonable steps were not taken and does not justify
the
constitutional damages sought” by the appellant. The
respondents argued that the municipality could not simply relocate
the unlawful occupiers “on an extremely urgent basis without
having established appropriate and adequate housing for them”
and that such action would have violated their rights. The precaution
not to do so resulted in the delay.
[72]
Further,
on the same point, the respondents contended that on the versions of
both the appellant and the respondents, the relocation
of the
unlawful occupiers would take years because of the municipality’s
constitutional obligation to provide proper (alternative)
housing for
them. Those delays were exacerbated because the unlawful occupiers
“have built homes for themselves and [have]
established their
own communities” on the appellant’s property.
[73]
The
respondents argued that the mere fact that the appellant does not
have the use and enjoyment of the property, because it is
occupied
unlawfully, does not on its own mean that the municipality is as a
result liable for constitutional damages. The contend
that the award
of constitutional damages cannot be appropriate relief in
circumstances where the municipality was not given enough
time to
provide temporary emergency accommodation to those unlawful occupiers
that required it. The time given in the order of
Sutherland J was
insufficient, and the mere fact that the municipality did not
approach the court to vary the time period given
in Sutherland J’s
order (and had agreed to the time period in the order of Siwendu J)
does not mean that it has to be punished
as a result with an award of
constitutional damages against it.
[74]
Relying
on the Constitutional Court’s decision in
Residents
of Industry House
[20]
the respondents submitted that constitutional damages in this case
was not the “most appropriate remedy”. In that matter
the
Constitutional Court held that constitutional damages may only
be awarded if it is “the most appropriate remedy
available to
vindicate constitutional rights with due weight attached to other
alternative remedies available in the common law
and statutes”.
[21]
If there is such other appropriate relief “it becomes
unnecessary to award constitutional damages as an additional remedy
when the object of the damages is not to compensate the claimants for
the loss they have suffered, but to uphold the Constitution”
[22]
and that “[i]t is not fair to burden the public purse with
financial liability where there are alternative remedies that
can
sufficiently achieve that purpose.”
[23]
[75]
The
respondents further submitted that the appellant has not made out a
case that it had suffered patrimonial loss as a result of
the
continued unlawful occupation, or that an award of constitutional
damages was “the most appropriate relief” in
the
circumstances and that there was no evidence upon which the court
could properly make such a finding. The respondents pointed
out that
there was,
inter
alia
,
no evidence of the size of the property of the appellant that was
unlawfully occupied.
[76]
Lastly,
the respondents argued that in terms of the Constitutional Court’s
decision in
Blue
Moonlight
,
the owner of land in whose favour an eviction order has been granted
may have to wait until alternative adequate housing has been
provided
before accessing and using its land. According to this argument, it
is only where the municipality has been granted a
reasonable time to
relocate the unlawful occupiers that the land owner can expect to
access and use its land at the end of that
period. In this matter, so
it was argued, the municipality has not been given reasonable or
sufficient time.
Discussion
[77]
In
Thubakgale
the Constitutional Court dealt with the general principles concerning
constitutional damages. It held:
“
Courts
are under an obligation in terms of section 38 of the Constitution to
grant ‘appropriate relief’’ when
approached by
anyone who seeks to enforce a right in the Bill of Rights that has
been infringed or threatened, and this may include
constitutional
damages. This court in
Fose
considered the meaning of ‘appropriate relief’
contemplated in section 7(4)(a) of the interim Constitution, which
contained similar wording to section 38. The majority said that
‘[a]ppropriate relief will in essence be relief that is
required
to protect and enforce the Constitution’. In that
case, the applicant sought constitutional damages in addition to
common
law damages (delictual damages) for an assault perpetrated
against him by the police. After a comprehensive excursus on foreign
jurisprudence, this Court observed that ‘it is preferable, for
the present, to refer to the ‘appropriate relief’
envisaged by section 7(4) merely as a ‘constitutional remedy’.
And, said this Court, ‘notwithstanding the differences
between
foreign jurisdictions and ours, appropriate relief can include an
award of damages, to compensate for a loss occasioned
by the breach
of a right vested in the claimant by the supreme law’, to be
adjudicated based ‘on the circumstances
of each case and the
particular right which has been infringed’.
Axiomatically,
appropriate relief must be effective if it is to fully and properly
vindicate the rights infringed… .
…
Self-evidently,
a determination of what constitutes appropriate relief must depend on
the facts of each case and necessarily involves
an evaluation of what
other remedies are available. Ultimately, the remedy must be
effective, suitable and just… .
…
Where
fundamental rights are proved to have been violated, there is no
entitlement to a particular remedy.”
[24]
[78]
From
the arguments of the parties the following questions arise for
consideration, namely, whether the appellant’s claim for
constitutional damages is based on the alleged failure of the
municipality to comply with the court orders, or is based on the
alleged infringement of its rights in terms of sections 25(1) and 34
of the Constitution.
[79]
If
the answer to the first part of the question is in the affirmative,
that would be the end of the enquiry in light of the decisions
of the
Constitutional Court in
Residents
of Industry House
[25]
and
Thubagale
.
[26]
If the answer to that part is in the negative and the answer to the
second part of the question is in the affirmative, that would
call
for the following further enquiries.
[80]
Namely,
whether the appellant was precluded from bringing the claim because
Mashile J had previously declared that the municipality’s
failure to comply with Sutherland J’s order has infringed the
appellant’s right not to be arbitrarily deprived of its
property as contemplated in section 25(1) of the Constitution and had
granted relief consequential thereto, i.e. is the issue of
the
constitutional damages
res
judicata
?
[81]
If
not, whether the rights of the appellant in terms of section 25(1)
and/or in terms of section 34(1) of the Constitution had been
infringed by the continued occupation of its property? And if so,
whether they have been infringed by the municipality? The alleged
infringement by the municipality would not only involve an enquiry
into the limitation of those rights, but also whether the limitation
has been reasonable and justifiable in an open and democratic society
based on human dignity, equality and freedom and taking into
account
the other factors listed in and as contemplated in section 36(1) of
the Constitution.
[82]
Only
if it is determined that the rights had been infringed, i.e. that
they had been limited unreasonably and unjustifiably, would
it be
necessary to declare the conduct resulting in the infringement to be
invalid or inconsistent with the Constitution, as contemplated
in
section 172(1)(a), and then to consider an order that is just and
equitable. As held in
Residents
of Industry House
,
[27]
constitutional damages can only be awarded if it is the most
appropriate remedy in the circumstances.
[83]
It
is only if constitutional damages are considered to be the most
appropriate that a consideration of the quantum would become
necessary. The decision of the Constitutional Court in
Modderklip
is relevant not only to the question of the infringement of the
alleged rights, but also to the appropriateness of constitutional
damages as a remedy and the quantification thereof. In respect of the
latter issue, the question may arise whether the Court may,
instead
of awarding a specific amount as damages, leave its quantification to
be determined by another process, as the SCA and
Constitutional Court
did in
Modderklip
.
The
basis of the claim
[84]
It
is apparent from a cursory reading of the appellant’s founding
papers that its claim for constitutional damages is based
on (an
alleged) infringement of its constitutional rights in terms of
section 25(1), alternatively sections 25(2) and 25(3) and
section 34,
read together with section 1(c), of the Constitution.
[85]
The
wording of section 34 has been referred to earlier. Section 1(c)
refers to the values of constitutional supremacy and the rule
of law
upon which the Republic of South Africa, as a sovereign and
democratic state, are founded.
[86]
Section
25(1) provides that “[n]o one may be deprived of property
except in terms of law of general application, and no law
may permit
arbitrary deprivation of property.” Section 25(2) and (3) deal
with the expropriation of property. The former
provides, essentially,
that expropriation may only be in terms of a law of general
application: (a) for a public purpose or in
the public interest; and
(b) subject to compensation, the amount of which and the time and
manner of payment of which have either
been agreed to by those
affected or decided on or approved by a court. The latter section
deals, essentially, with the determination
of the amount of the
compensation, and the manner and time of its payment. The section
provides that those:
“
[M]ust
be just and equitable, reflecting an equitable balance between the
public interest and the interests of those affected, having
regard to
all relevant circumstances, including
—
(a)
the
current use of the property;
(b)
the
history of the acquisition and use of the property;
(c)
the
market value of the property;
(d)
the
extent of direct state investment and subsidy in the acquisition and
beneficial capital improvement of the property; and
(e)
the
purpose of the expropriation.”
[87]
It
is apparent from section 25 that deprivation of property by the State
is permissible, as long as it is not arbitrary and it occurs
in terms
of a law of general application. And further, that the one deprived
has no right to the compensation envisaged there,
unless the
deprivation is substantial, or amounts to an expropriation of the
property.
[88]
The
appellant alleges that the said infringement came about due to the
municipality’s failure to provide temporary accommodation
to
the unlawful occupiers of its property who would require such
accommodation pursuant to the execution of the eviction order
granted
by Sutherland J. It is noteworthy that the appellant is not seeking
the damages as a penalty for the municipality’s
failure to
comply with the orders of Sutherland J, Mashile J or that of Siwendu
J, but is seeking it as compensation for the losses
it suffered
because of the infringement of its constitutional rights as
aforesaid, and in order to vindicate those rights.
[89]
The
facts in
Thubakgale
are distinguishable. There the High Court awarded damages to
residents against the municipality after the municipality had failed
to provide them with houses in accordance with a court order. There
the damages were clearly sought, not for the breach of Constitutional
rights, but for the municipality’s failure to comply with the
court order. It is in that context that the Constitutional
Court
overturned the award of the damages. It held, essentially, that a
claim for damages only for failing to comply with a court
order is
not known in our law and that the recognition of such a claim would
cause endless litigation and be contrary to the rule
of law.
[28]
Res
Judicata
[90]
The
respondents only raised this defence in argument, but did not raise
it in their affidavits in response to the appellant’s
claim for
constitutional damages. It is trite that a party that relies on that
defence must not only specifically raise it appropriately,
which
would have been in their responding affidavits in this case, but also
has an onus to prove the elements of the defence.
[29]
If not specifically pleaded, the defence is taken to have been
waived.
[30]
[91]
In
any event, the elements of the defence have not been proved by the
respondents. They are the following: (a) there must be a previous
judgment by a competent court; (b) between the same parties; (c)
based on the same cause of action; and (d) with respect to the
same
subject matter or thing.
[31]
In essence,
res
judicata
strictly means that a matter has already been decided by a competent
court on the same cause of action and for the same relief
between the
same parties.
[32]
And the crux
of the principle is:
“
[T]hat
where a cause of action has been litigated to finality between the
same parties on a previous occasion, a subsequent attempt
to litigate
the same cause of action by one party against the other party should
not be allowed. The underlying rationale for this
principle is to
ensure certainty on matters that have already been decided, promote
finality and prevent the abuse of court processes.”
[33]
[92]
The
appellant’s claim before Mashile J was based on alleged
infringement of its right in terms of section 25(1) of the
Constitution
by the respondent’s failure to comply with the
order of Sutherland J. There is also no proof that constitutional
damages
were sought as relief for such alleged infringement. Mashile
J found that the respondent’s conduct at that stage, did indeed
constitute the infringement as alleged. On the other hand, the claim
for constitutional damages before the court
a
quo
was based on an alleged infringement of the appellant’s rights
in terms of section 25(1), alternatively sections 25(2) and
25(3),
and section 34, read with section 1(c) of the Constitution, after the
respondents had failed to comply with the order of
Siwendu J in terms
of which they agreed that the unlawful occupiers of the appellant’s
property would be relocated by no
later than 30 September 2020.
Infringement
of rights
[93]
The
appellant’s cause of action, i.e. in respect of the damages
claim, is really focused on the limits to which an owner of
land, in
whose favour an eviction order has been granted, must wait until
alternative housing has been provided to the illegal
occupiers of its
land, and before being entitled to accessing and using its land. In
Blue
Moonlight
the Constitutional Court accepted that even though an owner of land
may have to endure the illegal occupation for some time after
having
obtained an eviction order, and had to be “somewhat patient”
and “accept that the right to occupation
may be temporarily
restricted”, the landowner “cannot be expected to provide
free housing for the homeless on its property
for an indefinite
period.”
[94]
Thus,
the appellant’s claim brings into sharp focus the question “how
long is long enough?” When does the continued
occupation of the
land at the instance of the state become an unlawful deprivation?
[95]
The
continued occupation of the appellant’s property by the
unlawful occupiers, despite the appellant having obtained an eviction
order as long ago as 1 August 2014, and that many years have passed
since, is a common cause fact. Effectively, the appellant’s
property serves as (free) accommodation until the respondents are
able to relocate the unlawful occupiers permanently, which is
also a
matter of uncertainty. A responsibility that is essentially that of
the municipality, has effectively been shirked by it,
and has been
made that of the appellant, while the respondents grope around to
find a permanent housing solution for the unlawful
occupiers.
[96]
Besides
failing in its constitutional duty toward the appellant, the
municipality failed in its constitutional duty towards the
Court in
not providing alternative emergency housing for those that require
such accommodation, as ordered by Sutherland J on 1
August 2014,
because if it did that then the eviction order granted could be
enforced. But until that happens the eviction order
cannot reasonably
be enforced.
[97]
While
the position of the unlawful occupiers draws sympathy, it is not the
appellant’s constitutional duty or obligation to
provide them
with adequate housing, or housing of any kind, on its property. That
is the duty of the State in terms of the Constitution.
There is no
proof that the appellant was culpable or had delayed in asserting its
rights to have the unlawful occupiers removed
from its property. On
the other hand, the respondents had a duty, as part of the State’s
responsibility to provide adequate
housing, to engage with those that
are unlawfully occupying the appellant’s property, as soon as
it became aware of such
occupation. The problem of removing the
unlawful occupiers may not have been so immense if the municipality
had been diligent in
executing its duties in that regard.
[98]
For
the municipality to now argue that it did not have enough time to
fulfil its constitutional obligations and comply with the
orders of
the courts, sounds fairly hollow in light of the following facts: The
respondents did not appeal against the orders of
Sutherland J,
Mashile J or Siwendu J. Instead, before Siwendu J, the respondents
expressly agreed to a deadline by which the unlawful
occupiers, who
required temporary accommodation, were to be relocated. Because of
their new position and responsibilities regarding
housing, their
knowledge of the availability of alternative accommodation or land
within the municipal area, and the problem of
squatting within its
boundaries, the respondents had to be acutely and timelessly aware of
what was and what was not legally attainable
within the time periods
stipulated in the court orders.
[99]
Until
alternative accommodation can be found for those illegal occupiers,
they remain on the appellant’s property and the
appellant would
until then be arbitrarily deprived of its right to use and enjoy the
property. Requiring the appellant to effectively
bear the burden of
providing free accommodation to the illegal occupiers to the extent
it has and may still have to, while the
respondents grope around to
find a permanent housing solution, is clearly not acceptable. The
interference with and limitation
of the appellant’s rights are
substantial and “go beyond the normal restrictions on property
use and enjoyment found
in an open and democratic society” and
amounts to an actionable deprivation.
[34]
Even though one cannot find expropriation as such, this deprivation
is deceivingly close.
[100]
Equally
unacceptable is the denial of an effective and appropriate legal
remedy for the position the appellant finds itself in.
The appellant
is precluded from executing the eviction order granted as long ago as
August 2014. In
Modderklip,
the Constitutional Court held that the State had infringed the
landowner’s rights of access to court in terms of section
34 of
the Constitution, because the State had failed to take reasonable
steps to ensure that the landowner was provided with an
effective
remedy as required by the rule of law.
[35]
[101]
The
respondents have not relied on any law of general application that
justifies their limitation of the appellant’s rights
in terms
of section 25(1), and section 34(1), read with section 1(c) of the
Constitution and therefore section 36 of the Constitution
is not
applicable. But even if it is, it has not been established that the
limitation of those rights of the appellant by the municipality
is
reasonable and justifiable in an open and democratic society based on
human dignity, equality and freedom, taking into account
the factors
contemplated in section 36 of the Constitution. That the municipality
in this case has failed to even take reasonable
steps, is evidenced
by the facts. Fundamentally, it failed to properly or reasonably plan
for the implementation of the eviction
order, and particularly, to
plan regarding the provision of alternative temporary housing to
those unlawful occupiers that required
it, and to relocate them
accordingly.
[102]
The
only ‘’just and equitable relief”” to grant
to the appellant for the unlawful infringement of its rights,
in
addition to a declaratory order, is an order for constitutional
damages. It will serve to assist the appellant to effectively
vindicate its rights. In addition to compensating it for the unlawful
occupation of its property in violation of its rights, such
a remedy
will,
inter
alia
,
ensure that the unlawful occupiers of its property are accommodated
until suitable alternative places to accommodate them are
found and
would alleviate the pressure of finding such alternatives very
urgently. Simply setting another date for the relocation
will not be
effective.
[103]
However,
the quantification of the damages is also in issue. In
Modderklip
,
the SCA alluded to some of the difficulties in that regard. The
submissions of the parties on that aspect do not address those
difficulties. A further enquiry regarding that aspect along the lines
considered by the SCA in
Modderklip
is required, namely, quantification in terms of section 12(1) of the
Expropriation Act.
[36]
As in
Modderklip
,
it would not serve the interests of justice to require the appellant
to institute new or fresh proceedings simply for the purpose
of such
quantification. A further fact to bear in mind is that if the State
should decide to expropriate the property of the appellant
that is
being unlawfully occupied, the amount awarded as compensatory relief
could be set off against the amount awarded as compensation
for such
expropriation.
[37]
[104]
There
is no reason why the municipality should not be held liable for the
costs of the appellant, both, in respect of the application
and of
the appeal.
Order
[105]
The
following is ordered:
1.
The
appeal is upheld in part.
2.
The
order of the court
a
quo
is set aside and is substituted with the following order:
“
(a)
Declaring that it has not been proven that the Respondents were in
contempt of court and dismissing the application in respect
of that
aspect;
(b)
Declaring
that the First Respondent’s failure to provide the illegal
occupiers of the applicant’s property with alternative
temporary accommodation, resulting in the continued illegal
occupation by those occupiers of the applicant’s property,
without
compensation; and a resultant inability to give effect to the
eviction order of the High Court, unlawfully infringes the
applicant’s
rights in terms of section 25(1) and in terms of
section 34 read with section 1(c) of the Constitution;
(c)
Declaring
that the applicant is entitled to be paid compensation by the First
Respondent for such unlawful infringement as from
1 February
2015 until such infringement ceases;
(d)
The
compensation envisaged in (c) is to be calculated in terms of section
12(1) of the Expropriation Act 63 of 1975;
(e)
If,
with regard to the investigation and determination of the amount of
compensation to be awarded, the parties are unable to agree
on the
pleadings to be filed, discovery, inspection, or any other procedural
matter relating thereto, leave is hereby granted to
the parties to
apply to the High Court with jurisdiction for directions in that
regard in terms of section 33(5) of the Uniform
Rules of the High
Court;
(f)
The
First Respondent is to pay the costs of the application.”
3.
The
First Respondent is to pay the costs of the appeal.
P
COPPIN
JUDGE
OF THE HIGH COURT
GAUTENG
LOCAL DIVISION, JOHANNESBURG
I
CONCUR
I
OPPERMAN
JUDGE
OF THE HIGH COURT
GAUTENG
LOCAL DIVISION, JOHANNEBSURG
I
CONCUR
EF
DIPPENAAR
JUDGE
OF THE HIGH COURT
GAUTENG
LOCAL DIVISION, JOHANNESBURG
APPEARANCES:
For
the Appellant:
S Budlender SC and A Raw
Instructed
By:
Vermaak
Marshall Wellbeloved Inc.
For
the Respondents: C Georgiades SC
and B Bhabha
Instructed
By:
Mohamed Randera & Associates
Date
Heard:
19
April 2023
Judgment
Date:
This
judgment was handed down electronically by circulation to the
parties’ legal representatives by email. The date for hand-down
is deemed to be 11 August 2023.
[1]
The
Constitution of the Republic of South Africa Act 108 of 1996 (the
Constitution).
[2]
See,
inter
alia
,
Pheko
v Ekhurhuleni City
[2015]
ZACC 10
;
2015 (5) SA 600
(CC);
2015 (6) BCLR 711
(CC) (
Pheko
)
at paras 28-37 where the Constitutional Court approvingly applied
Fakie
NO v CCII Systems (Pty) Ltd
[2006] ZASCA 52
;
2006 (4) SA 326
(SCA) (
Fakie
);
Secretary
of the Judicial Commission of Inquiry into Allegations of State
Capture, Corruption and Fraud in the Public Sector Including
Organs
of State
v
Zuma and Others
[2021]
ZACC 18
;
2021 (5) SA 327
(CC);
2021 (9) BCLR 992
(CC) at para 37.
[3]
Fakie
above
n 2 at para 6;
Pheko
above n 2;
Matjhabeng
Local Municipality v Eskom Holdings Limited and Others; Mkhonto and
Others v Compensation Solutions (Pty) Limited
[2017] ZACC 35
;
2018 (1) SA 1
(CC);
2017 (11) BCLR 1408
(CC)
(
Matjhabeng
)
at
para
65.
[4]
Matjhabeng
id
at para 76.
[5]
Compare:
Stokwe
v Member of the Executive Council: Department of Education, Eastern
Cape and Others
[2019]
ZACC 3
; (2019) 40 ILJ 773 (CC);
2019 (4) BCLR 506
(CC) at paras
87-8.
[6]
City
of Johannesburg Metropolitan Municipality v Blue Moonlight
Properties 39 (Pty) Ltd
and Another
[2011] ZACC 33
;
2012 (2) SA 104
(CC);
2012 (2) BCLR 150
(CC) (
Blue
Moonlight
)
at para 40.
[7]
19
of 1998.
[8]
Blue
Moonlight
above
n 6 at para 40.
[9]
Id.
[10]
Id.
[11]
Mkontwana
v Nelson Mandela Municipality
(CCT57/03)
[2004] ZACC 9
;
2005 (1) SA 530
(CC);
2005 (2) BCLR 150
(CC)
(
Mkontwana
)at
para 32;
First
National Bank of SA Ltd t/a Wesbank v Commissioner for the South
African Revenue Services and Another; First National Bank
of SA Ltd
t/a Wesbank v Minister of Finance
[2002]
ZACC 5
;
2002 (4) SA 768
(CC);
2002 (7) BCLR 702
(CC) (
First
National Bank
)
at para 57.
[12]
Mkontwana
id
at para 32.
[13]
Blue
Moonlight
above
n 6 at para 40.
[14]
Modderfontein
Squatters, Greater Benoni City Council v Modderklip Boerdery (Pty)
Ltd (Agri SA and Legal Resources Centre, amici
curiae); President of
the Republic of South Africa and Others v Modderklip Boerdery (Pty)
Ltd (Agri SA and Legal Resouces Centre,
amici curiae)
(
Modderklip
)
2004 (6) SA 40 (SCA); 2004 (8) BCLR 821 (SCA).
[15]
Id
at para 28.
[16]
President
of the Republic of South Africa and Another v Modderklip Boerdery
(Pty) Ltd
[2005] ZACC 5; 2005 (5) SA 3 (CC); 2005 (8) BCLR 786.
[17]
[2006]
ZASCA 49; 2006 (4) SA 478 (SCA).
[18]
See
n 16 above.
[19]
Thubakgale
and Others v Ekhurhuleni Metropolitan Municipality and Others
[2021] 1 ZACC 45
;
2022 (8) BCLR 985
CC) (
Thubakgale
).
[20]
Residents
of Industry House, 5 Davies Street, New Doornfontein, Johannesburg
and Others v Minister of Police and Others
[2021]
ZACC 37
;
2023 (3) SA 329
(CC);
2022 (1) BCLR 46
(CC) (
Residents
of Industry House
).
[21]
Id
at para 118.
[22]
Id
at para 120.
[23]
Id
at para 120.
[24]
Thubakgale
n
19 above at paras 40-3.
[25]
Residents
of Industry House
n 20 above.
[26]
Thubakgale
n
19 above.
[27]
Residents
of Industry House
n 20 above at paras118 and 120.
[28]
Thubakgale
n
19 above at paras 188-190.
[29]
See
Tradax
Ocean Transportation SA v MV “Silvergate” properly
described as MV “Astyanax”
[1999]
ZASCA 30; 1999 (4) SA 405 (SCA).
[30]
See
Blaikie-Johnstone
v P Hollingsworth (Pty) Ltd
and Others1974 (3) SA 392 (D) at 395.
[31]
See
Ascendis
Animal Health (Pty) Ltd v Merck Sharpe Dohme Corporation and Others
[2019]
ZACC 41
;
2020 (1) SA 327
(CC);
2020 (1) BCLR 1
(CC) (
Ascendis
)
at para 71.
[32]
Id
at para 69.
[33]
Id
at para 70.
[34]
Mkontwana
above
n 11
at
para 32.
[35]
Modderklip
n 16 above at para 43.
[36]
Act
63 of 1975.
[37]
Modderklip
n 16 above at para 64.
sino noindex
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