Case Law[2023] ZAGPJHC 1502South Africa
Motupa v Minister of Police (2017/11257) [2023] ZAGPJHC 1502 (21 August 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
21 August 2023
Headnotes
Summary
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Motupa v Minister of Police (2017/11257) [2023] ZAGPJHC 1502 (21 August 2023)
Motupa v Minister of Police (2017/11257) [2023] ZAGPJHC 1502 (21 August 2023)
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sino date 21 August 2023
IN
THE HIGH COURT OF SOUTH AFRICA,
GAUTENG
DIVISION, JOHANNESBURG
CASE
NO: 2017/11257
1.
REPORTABLE: NO
2.
OF INTEREST TO OTHER JUDGES: YES
In
the application by
MOTUPA,
MMAPUTHI MARIA
APPLICANT
AND
THE
MINISTER OF POLICE
RESPONDENT
In
re
the matter between
MOTUPA,
MMAPUTHI MARIA
PLAINTIFF
and
THE
MINISTER OF POLICE
FIRST
DEFENDANT
NATIONAL
COMMISSIONER OF POLICE
SECOND
DEFENDANT
STATION
COMMISSIONER NORKEM PARK
THIRD
DEFENDANT
JUDGMENT
MOORCROFT
AJ:
Summary
Settlement
– attorney briefed by a party has the authority to compromise
claim – actual or ostensible authority –
apparent
authority not limited by instructions not known to other party
Agreement
– may be entered into under circumstances where parties foresee
that there might be outstanding issues to negotiate
– parties
may
expressly or by implication leave
outstanding issues to future negotiation while entering into a
binding agreement
Order
[1]
In this matter I make the following order:
1.
The respondent is ordered to pay the amount
of R 4 918 244.00 to the applicant;
2.
The respondent is ordered to pay interest
on the above amount at the rate of 10.5% per annum from date of
service of summons to
date of payment;
3.
The respondent is ordered to pay the cost
of the action and the cost of the application;
[2]
The reasons for the order follow below.
Introduction
[3]
The applicant as plaintiff claimed damages from the Minister as first
defendant and respondent arising out of a shooting
incident. She was
shot by a member of the South African Police Service under
circumstances where the member was mentally unfit
and did not qualify
to possess a firearm allocated to him by the Police Service. The
respondent conceded liability. (The second
and third defendants are
the National Police Commissioner and the Station Commander of the
Norkem Park Police Station and it is
not necessary to differentiate
between the three defendants in the trial action as the first
defendant as the responsible Minister
is liable,
nomine officio
,
for delicts committed by members of the Service acting within the
course and scope of their duties or in circumstances such as
the
present.)
[4]
The claim for medical expenses and the interest of 10.5%
per annum
payable on the claim became settled by 17 October 2022. The only
outstanding issues then were the claim for past and future
loss of
income and general damages.
[5]
The applicant now alleges that both these claims have been
compromised and that the compromise offer was accepted by her.
This
compromise is denied by the respondent.
[6]
On 31 October 2022 the State Attorneys in their capacity as the
attorneys of record for the respondent, made a written
offer to the
applicant. The offer was summarised as follows:
23.
I therefore, believe that a fair and reasonable offer for settlement
would be as follows:
Past
and future loss of income
R2 618 244.0
Past
and future medical expenses
R 800 000.00
(
As agreed)
General
Damages
R1 000 000.00
[7]
This offer was revised and increased in an email on 7 November
2022 – the amount of R2 618 244 was
increased by
R500 000 to R3 118 244.
[8]
The offer was accepted on 10 November 2022. The applicant’s
attorneys wrote as follows to the respondent’s
attorneys on 10
November 2023:
Dear
Sir
We
refer to your email dated 7 November 2022.
After
discussing the matter with our client, our client has advised us that
sheaccepts your counter proposal which we hereby do.
In
this regard we highlight the agreed damage quantum:
1.
Loss of income(past and future)
R3 118 244.00
2.
Medical expenses
R 800 00.00
3.
General Damages
R1 000 000.00
Therefore
the terms of the Settlement is asfollows,by way of the summary.
1.
Payment is the sum of R 4 918 244.00 (to be made by the
Defendants jointly and severally the one pay the other
be absolved
2.
Interest on the above damage amount at a rate of 10.5% per annum,
calculated from date of service of Summons until date
of full and
final payment;
3.
Taxed or agreed cost, on a party to party scale (inclusive of cost of
senior counsel)
4.
Full and final settlement
Kindly
confirm that the above is in order, and in the interim we will
prepare the necessary Settlement Agreement for signatures.
[9]
The question for decision now is whether this correspondence
constitutes a settlement of the outstanding issues.
[10]
The respondent raises three defences and these will be dealt with
under separate headings below. These defences are that
there exist
factual disputes that preclude a decision on application, that the
settlement agreement was conditional and subject
to further full and
final instructions, and the lack of authority of the State Attorney
to conclude a settlement agreement.
Factual
disputes
[11]
The allegation of factual disputes is a bald statement and no actual
factual disputes are identified on the papers. I
conclude upon a
reading of the affidavits and particularly the documents relied upon
as constituting the settlement agreement that
there are no factual
disputes arising from the papers.
[12]
The factual disputes that are referred to, relate in the main to
matters that preceded the making of the offer and they
relate to the
expert reports.
The
absence of full and final instructions, and the authority of the
State Attorney to reach a compromise
[13]
The State Attorney acting for the respondent, Mr Mpulo, settled the
merits, the medical expenses portion of the damages
claim and the
interest rate in October 2022. On 17 October 2022, the parties
agreed that the two outstanding issues on the
quantum
namely
past and future loss of income and general damages should be settled
through negotiation.
[14]
Mr Mpulo admits that he received instructions from the respondent to
send the letters of October and November 2022. The
letters are
unconditional and not open to the interpretation that these are mere
proposals for discussion subject to full and final
instructions. The
applicant accepted the offers.
[15]
The applicant argues in addition that even if it were accepted that
Mr Mpulo did not have actual authority, then he certainly
had
ostensible authority. He was the State Attorney acting for the
respondent. The respondent by appointing the State Attorney,
represented that Mr Mpulo had authority to act for and to bind the
respondent.
[16]
In
Hlobo
v Multilateral Motor Vehicle Accident Fund
[1]
Plewman JA said
[2]
that the
Courts encourage parties to deal with their disputes by attempting to
reach a compromise
[3]
and the
practice is well-established.
[4]
A
compromise
disposes
of the proceedings.
[5]
The
conduct of a party's case at the trial of an action is
under the control of the party's counsel and counsel
has authority to
compromise the action.
[6]
The
apparent authority of counsel cannot be limited by instructions
unknown to the other party.
[7]
The attorney of record stands in the same position as counsel.
[8]
[17]
In
Minister
of Police v Van der Watt and Another
[9]
Kubushi J (speaking for the Full Court
of
the Gauteng Division of the High Court in Pretoria) concluded
[10]
that -
“…
.by
merely appointing the State Attorney to represent the appellant in
resisting the first respondent’s claim, the appellant
represented to the first respondent and to the world at large, that
the State Attorney had the necessary authority to settle the
claim.
There was no information conveyed to the first respondent’s
legal representatives that the settlement reached
was against the
express instructions of the appellant and for that reason they must
reasonably have believed that the State Attorney
and counsel had the
requisite authority to settle the claim. The appellant is
accordingly bound to the settlement agreement
on the basis of the
State Attorney’s apparent authority.
[11]
[18] I find that
the State Attorney made an offer to the applicant’s attorneys
on 31 October and 7 November 2022 in
respect of the outstanding
issues, namely the loss of earnings claim and the general damages
claim.
Did the applicant make
a counter-offer?
[19]
The question then is whether the offer was accepted as is stated in
the second line of the applicant’s attorneys’
letter of
10 November 2022, or whether the letter constitutes a counter-offer.
[20]
On 11 November 2022 the applicant’s attorney wrote to the
respondent’s attorney, as follows:
Dear
Sir,
With
reference to the abovementioned matter and settlement reached.
We
attach hereto the settlement agreement for your clients
signature,kindly note that our client has already signed same.
We
trust you find the above in order.
[21]
The draft written settlement agreement sets out the exact same terms
of the settlement, as follows:
2.
the damage quantum is calculated as follows namely:
2.1
Loss of income(past and future)
R3 118 244.00
2.1.1
Medical expenses
R 800 00.00
2.3
General Damages
R1 000 000.00
3
The document provides for certain aspects not agreed on in the
correspondence, namely -
3.1
costs on a party and party scale, inclusive of the cost of
senior counsel;
3.2
the agreement to be made an order of court, and
3.3
the draft document confirms that the offer is in full and
final settlement of all claims.
4
Neither counsel dealt expressly with the question whether the
applicant’s letters of 10 and 11 November 2022 constituted
a
counter-offer. It was argued on behalf of the respondent that there
was no offer to be accepted, and therefore no counter-offer,
while
the applicant did not regard the proposed written settlement
agreement of 11 November 2022 as a counter-offer. I therefore
invited
both parties to file further heads of argument on this question and
they both did so.
5
Where
parties negotiating an agreement reach agreement by way of offer and
acceptance the fact that there are still a number of
other
outstanding issues material to the contractual relationship upon
which the parties have not yet agreed may indeed prevent
the
agreement from having contractual force. This would be the case where
the parties contemplated that consensus on the outstanding
issues
would have to be reached before a binding contract could come into
existence. However, the existence of outstanding issues
do not
necessarily deprive an agreement of contractual force when the
parties intend to conclude a binding agreement while agreeing
either
expressly or by implication to leave the outstanding issues to future
negotiation. Should more terms be agreed subsequently
the second
contract would supersede the first; should more terms not be agreed
the first contract stands on its own.
[12]
6
In the present matter the parties were
involved in litigation in the court and at some stage the costs
aspect would have to be either
argued or settled.
7
Settlement agreements in litigation are
often reduced to writing, signed and made an order of court but doing
so is not a prerequisite
for enforceability when the agreement is
valid and enforceable in itself
.
8
The making and acceptance of the offer in
the correspondence referred to dealt with all the outstanding
issues in the litigation
and written agreement to the effect that the
agreement was in full and final settlement of all claims would merely
have confirmed
this fact. There is nothing on the papers to suggest
that the parties did foresee more litigation arising from the tragic
incident
and any subsequent claim could no doubt have been met with
the defence that the claim was compromised in 2022.
9
Under these circumstances I conclude that
the settlement reached had full contractual force irrespective of
whether the parties
agreed on costs of senior counsel, making the
agreement an order of court, and confirming that it was an agreement
in full and
final settlement of all claims. They were at liberty to
enter into a further or more detailed agreement but did not have to
do
so.
10
The settlement is therefore enforceable and
the applicant is entitled the relief it seeks. The costs should
follow the result but
I do not believe that the punitive cost order
argued for by the applicant is justified.
11
For the reasons set out above I make the order in paragraph 1.
J
MOORCROFT
ACTING
JUDGE OF THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION
JOHANNESBURG
Electronically
submitted
Delivered:
This judgement was prepared and authored by the Acting Judge whose
name is reflected and is handed down electronically
by circulation to
the Parties / their legal representatives by email and by uploading
it to the electronic file of this matter
on CaseLines. The date of
the judgment is deemed to be
21 AUGUST 2023
.
COUNSEL
FOR THE APPLICANT:
JW
KLOEK
INSTRUCTED
BY:
MINNIE
& DU PREEZ INC
COUNSEL
FOR THE RESPONDENT:
L
TYATYA
INSTRUCTED
BY:
STATE
ATTORNEY
DATE
OF ARGUMENT:
24
JULY 2023, additional heads filed 11 AUGUST 2023
DATE
OF JUDGMENT:
21
AUGUST 2023
[1]
Hlobo
v Multilateral Motor Vehicle Accident Fund
2001 (2) SA 59
(SCA).
[2]
Para 10.
[3]
Or, a
transactio.
[4]
See Rule 37(6)(c) that compel litigants to discuss
settlement at pretrial conferences, and now also Rule 41A that
encourages voluntary mediation.
[5]
See also
Estate
Erasmus v Church
1927
TPD 20
at 23.
[6]
R
v Matonsi
1958
(2) SA 450 (A)
456A - H and
Benjamin
v Gurewitz
1973
(1) SA 418 (A)
428E - F
.
[7]
Plewman JA referred to
Halsbury's
Law of England
4
th
ed vol 37 para 511. This
obiter
statement by Plewman JA was endorsed in
MEC
for Economic Affairs, Environment and Tourism v Kruizenga
[2010] ZASCA 58.
[8]
Waugh
and Others v H B Clifford & Sons Ltd and
Others
[1982]
1 All ER 1095
(CA) and
Alexander
v Klitzke
1917
EDL 408.
[9]
Minister
of Police v Van der Watt and Another [2021
]
ZAGPPHC 53 paras 45, 49, 55 and 58.
[10]
Para 50.
[11]
The learned Judge referred in footnote 10 to
MEC
for Health and Social Development of the Gauteng Provincial
Government v Mathebula and Others
[2016] ZAGPJHC 187 para 30.
[12]
Cgee
Alsthom Equipments et Enterprises Electriques, South African
Division v GKN Sankey (Pty) Ltd
1987 (1) SA 81 (A)
92C. See also
Command
Protection Services (Gauteng) (Pty) Ltd t/a Maxi Security v South
African Post Office Ltd
2013 (2) SA 133 (SCA)
para 12
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