Case Law[2023] ZAGPJHC 1375South Africa
Democratic Alliance v City of Johannesburg Metropolitan Municipality and Others (2023-041913) [2023] ZAGPJHC 1375 (27 November 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
27 November 2023
Headnotes
“What the principle of legality entails in the present context is that our President may only exercise power that was lawfully conferred on her and in the manner prescribed…”[4]
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Democratic Alliance v City of Johannesburg Metropolitan Municipality and Others (2023-041913) [2023] ZAGPJHC 1375 (27 November 2023)
Democratic Alliance v City of Johannesburg Metropolitan Municipality and Others (2023-041913) [2023] ZAGPJHC 1375 (27 November 2023)
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sino date 27 November 2023
REPUBLIC
OF SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
CASE NO: 2023-041913
NOT REPORTABLE
NOT OF INTEREST TO OTHER
JUDGES
REVISED
27/11/23
In
the matter between:
THE
DEMOCRATIC ALLIANCE
Applicant
And
CITY
OF JOHANNESBURG METROPOLITAN MUNICIPALITY
First
Respondent
COUNCIL
OF THE CITY OF JOHANNESBURG
METROPOLITAN
MUNICIPALITY
Second
Respondent
THE
CITY MANAGER OF THE CITY OF JOHANNESBURG
METROPOLITAN
MUNICIPALITY
Third
Respondent
FLOYD
BRINK
Fourth
Respondent
THE
EXECUTIVE MAYOR OF THE CITY OF JOHANNESBURG
METROPOLITAN
MUNICIPALITY
Fifth
Respondent
THE
SPEAKER OF THE CITY OF JOHANNESBURG
METROPOLITAN
MUNICIPALITY
Sixth
Respondent
COLLEEN
MAKHUBELE
Seventh
Respondent
MEMBER
OF THE EXECUTIVE COUNCIL FOR CO-OPERATIVE
GOVERNANCE
AND TRADITIONAL AFFAIRS, GAUTENG
PROVINCIAL
GOVERNMENT
Eighth
Respondent
MINISTER
OF COOPERATIVE GOVERNANCE AND
TRADITIONAL
AFFAIRS
Ninth
Respondent
THAPELO
AMAD
Tenth
Respondent
JUDGMENT
ON LEAVE TO APPEAL
S BUDLENDER AJ:
[1]
On 7 November 2023, I delivered my judgment
in the main application.
[2]
On the same day, the first to seventh
and tenth respondents in the main application delivered an
application for leave to appeal
against the whole of the judgment.
[2.1]
It is, on reflection, somewhat surprising
that all of these respondents would deliver an application for leave
to appeal when only
five of them opposed the main application. But no
point was made of this and so I likewise make nothing of it.
[2.2]
I refer to the parties seeking leave to
appeal as “the City” and to the party opposing leave to
appeal as “the
DA”.
A PRELIMINARY ISSUE
[3]
It is necessary to deal with one
preliminary issue.
[4]
After I had asked the parties to arrange a
mutually convenient date for the hearing of the application for leave
to appeal, the
attorneys for the City wrote a letter expressing doubt
as to whether I should hear the application for leave to appeal.
Their
concerns rested primarily on the fact that, since hearing the
main application, I had left the Bar and taken up a position employed
by a private entity in the position of General Counsel. This
prompted a response from the attorneys for the DA, disagreeing
with
the stance of the City.
[5]
I thereafter wrote to both parties on 14
November 2023 as follows:
[5.1]
Section
48
of the
Superior Courts Act 10 of 2013
seemed to make clear that my
powers as an acting Judge extended to dealing with applications for
leave to appeal after my acting
period expires.
[1]
[5.2]
In those circumstances, my understanding
was that it remained my duty to hear and determine the application
for leave to appeal.
[5.3]
I noted that the City had indicated that it
may wish to write to the Judge President regarding this matter.
I emphasised that
it was, of course, at liberty to do so and the
Judge President would then have to deal with whatever request is made
of him.
[5.4]
Unless otherwise directed by the Judge
President, I was intending to hear the application for leave to
appeal on 22 November 2023,
as arranged between the parties.
[6]
When the matter commenced on 22 November
2023, it was confirmed by counsel for the City that:
[6.1]
The City had decided not to write to the
Judge President;
[6.2]
The City accepted that I was empowered by
section 48
of the
Superior Courts Act to
decide the application for
leave to appeal; and
[6.3]
The City did not wish to apply for my
recusal.
[7]
I therefore proceeded to hear the matter
and reserved judgment for a brief period.
THE MERITS OF THE
APPLICATION FOR LEAVE TO APPEAL
[8]
The test for leave to appeal is well known
and was cited by both sets of counsel. It is not necessary to
rehearse it here.
It suffices to say that:
[8.1]
The first basis on which leave to appeal
may be granted is where the court comes to the conclusion that the
appeal would have a
reasonable prospect of success.
[8.2]
The
second basis on which leave to appeal may be granted is where the
court comes to the conclusion that “
there
is some other compelling reason why the appeal should be heard
”
.
Even under this ground, however, “
the
merits remain vitally important and are often decisive
”
.
[2]
[9]
The City delivered heads of argument
running to just under fifty pages in advance of the hearing, while
the DA also delivered heads
of argument. I considered both sets
of heads of argument in detail in advance of the hearing.
[10]
As it happened, however, during the hearing
counsel for the City only dealt with three grounds of appeal:
[10.1]
The contention by the City that
section 54A
of the
Local Government: Municipal Systems Act 32 of 2000
did not
apply to the appointment of Mr Brink;
[10.2]
The contention by the City that a
procedural challenge to the resolutions was not available under the
principle of legality; and
[10.3]
The contention by the City that the remedy
granted impermissibly interfered with its powers because it required
it to appoint an
acting Municipal Manager.
[11]
I deal briefly with each in turn.
[12]
The
first
issue can be disposed of rapidly.
[12.1]
The judgment did
not
find that Section 54A of the Systems Act applied to the appointment
of Mr Brink.
[12.2]
The only reference to section 54A in the
section of the judgment on the merits was when it quoted from a
judgment of the Constitutional
Court as follows:
“
It
is hard to imagine clearer examples of substantive resolutions. They
are substantive resolutions with critical effects for the
City and
its residents. As the Constitutional Court has explained:
‘
[Section
54A] lays emphasis on the appointment of suitably qualified municipal
managers owing to the position they hold in the administration
of a
municipality. The role played by the managers is crucial to the
delivery of services to local communities and the proper
functioning
of municipalities whose main function is to provide services to local
communities.’
[3]
[12.3]
This is not a finding that section 54A
applied to the appointment of Mr Brink. It was merely a
statement about the important
role of Municipal Manager. That was the
case before and after section 54A was enacted.
[12.4]
When this was raised with counsel for the
City, he fairly abandoned reliance on this ground.
[13]
The
second
ground related to the availability of procedural challenges under the
principle of legality.
[13.1]
The argument was as follows: (a) the
judgment correctly found that only the principle of legality (not
PAJA) was applicable
to the resolutions; (b) the judgment invalidated
the resolutions based on procedural irregularities; (c)
however, review
for such procedural irregularities is only permitted
under PAJA – the most that one can do under the principle of
legality
is review for procedural irrationality.
[13.2]
I have given careful consideration to the
argument but am not persuaded that it has prospects of success.
[13.3]
The fundamental point about legality review
is that it requires that any decision taken must be intra vires –
that is within
the limits of the power conferred. That applies
both to procedural limits and substantive limits. This appears,
for
example, from the judgment of the Constitutional Court in
Law
Society
, where it held:
“
What
the principle of legality entails in the present context is that our
President may only exercise power that was lawfully conferred
on her
and
in the manner prescribed
…”
[4]
[13.4]
That makes clear the unsurprising
conclusion that a public power must be exercised in compliance with
both the procedural and substantive
constraints placed on it –
if not, it is unlawful and invalid and may be reviewed under the
principle of legality.
[13.5]
Of
course, a different question is whether the principle of legality
includes review for procedural
fairness
.
The Constitutional Court has held that it does not and that only
review for procedural
rationality
is available under the principle of legality.
[5]
[13.6]
But that has no bearing on the present
case. The judgment did not rely on procedural fairness. It
instead reached a conclusion
that the procedures required by the
Standing Rules and Orders were breached – thus rendering the
decisions procedurally unlawful
and invalid. This was expressly
pleaded in the founding affidavit.
[13.7]
Lastly, I note that in response to a
question during argument on the leave to appeal application, counsel
for the City expressly
accepted in this regard that the Standing
Rules and Orders were binding on the Council. That concession was
rightly made in my
view.
[13.8]
It seems to me that once one concludes that
the resolutions breached the procedures required by the Standing
Rules and Orders, it
must follow that this is a basis for a review
under the principle of legality.
[13.9]
I therefore do not consider that this
ground bears prospects of success.
[14]
The
third
ground relates to the question of remedy.
[14.1]
The remedy granted in paragraphs 1 and 2 of
the order set aside the two resolutions, which was then coupled with
a limited order
of suspension in paragraph 4 as follows:
“
The
orders in paragraphs 1 to 3 are suspended for ten court days from the
date of this order to allow for the appointment of an
Acting City
Manager.”
[14.2]
I engaged with counsel for the City about
the precise nature of the complaint raised by his clients. He
made clear that, assuming
for the sake of argument that the finding
on the merits was correct:
[14.2.1]
There was no objection to the order setting
aside the resolutions; and
[14.2.2]
There was no complaint that the 10-day
period of suspension was too short.
[14.3]
Rather, the complaint lay elsewhere.
It was that by referring to the appointment of an Acting City Manager
in paragraph 4,
the order had impermissibly tied the Council’s
hands as to what it could do during the ten-day period.
[14.4]
I have considered this argument carefully
but do not consider that it bears prospects of success.
[14.5]
When
I enquired what else the Council might wish to do during the ten-day
period to fill the vacuum created by the setting aside
order, counsel
for the City pointed to the possibility of the MEC seconding someone
to be the City Manager. But the order
does not preclude that.
Section 54A(6) provides that “
The municipal council
may request the MEC for local government to second a suitable person,
on such conditions as prescribed,
to act in
the advertised position
until such time as a suitable candidate has been appointed.”
[6]
Thus,
the only way a secondment could occur is via an acting appointment –
which is what paragraph 4 of the order contemplates.
[14.6]
The other possibility that counsel for the
City offered was that the Council may wish to make a permanent
appointment within the
ten-day period, rather than an acting
appointment. This overlooks the fact that the main tenor of the
merits judgment was
that the permanent appointment of a City Manager
is a critical decision which, absent true urgency, cannot be rushed
and must follow
the proper process in the Rules and Standing Orders.
A permanent appointment now of City Manager in less than ten days
would not
meet these requirements, especially when the lesser route
of an acting appointment was available.
[14.7]
It therefore does not seem to me that the
complaint about paragraph 4 has prospects of success.
[14.8]
Lastly, it is appropriate to say something
about paragraph 3 of the order.
[14.8.1]
That is the order which, following from the
setting aside of the two resolutions, declared that any employment
contract and/or performance
contract any of the respondents may have
concluded with Mr Brink pursuant to the resolutions was
unconstitutional, unlawful and
invalid.
[14.8.2]
Though the issue was not pursued in oral
argument, the notice of appeal contended that no basis had been made
out for this order.
[14.8.3]
However,
the prayer concerning the contracts was sought in the Notice of
Motion and on
All
Pay II
,
the “default position” in s that the fate of the
contracts must follow the fate of the resolutions.
[7]
[14.8.4]
While I certainly had the power to depart
from this default position (a point emphasised by counsel for the
City) a proper case
had to be made out for this departure. As was
quite properly accepted by counsel for the City, no specific basis
was pleaded or
argued by the City for a departure from this position.
[14.8.5]
Once that is so, then the complaint about
paragraph 3 does not appear to me to have prospects of success.
[14.9]
The
conclusion that the remedial appeal grounds do not bear prospects of
success is significantly strengthened when one considers
that the
determination of a just and equitable remedy is a discretion in the
true sense and “
an
appellate court may not interfere unless it is clear that the choice
the court has preferred is at odds with the law. If
the
impugned decision lies within a range of permissible decisions, an
appeal court may not interfere only because it favours a
different
option within the range
.”
[8]
No basis was laid out to meet this test.
CONCLUSION
[15]
Having considered the three grounds of
appeal raised during oral argument and the remaining grounds raised
in the application for
leave to appeal and heads of argument, I am of
the view that:
[15.1]
the proposed appeal bears no prospects of
success; and
[15.2]
there is no other compelling reason for
leave to appeal to be granted.
[16]
I therefore make the following order:
The application for leave
to appeal is dismissed with costs, including the costs of two
counsel.
S BUDLENDER
ACTING JUDGE OF THE
HIGH COURT
DATE OF HEARING: 22
November 2023
DATE OF JUDGMENT: 27
November 2023
[1]
Section
48 provides: “Any person who has been appointed as an acting
judge of a Superior Court must be regarded
as having
been appointed also for any period during which he or she is
necessarily engaged in the disposal of any proceedings
in which he
or she has participated as such a judge, including an application
for leave to appeal that has not yet been disposed
of at the expiry
of his or her period of appointment.”
[2]
Caratco
(Pty) Ltd v Independent Advisory (Pty) Ltd
[2020]
ZASCA 17
;
2020 (5) SA 35
(SCA) at para 10.
[3]
At
para 34.3, quoting
Notyawa
v Makana Municipality and Others
[2019] ZACC 43
;
2020 (2) BCLR 136
(CC) at para 4
[4]
Law
Society
of
South Africa and Others v President of the Republic of South Africa
and Others)
[2018]
ZACC 51
;
2019 (3) BCLR 329
(CC);
2019 (3) SA 30
(CC) (11 December
2018) at para 48 (emphasis added)
[5]
Id,
at para 64.
[6]
Emphasis
added
[7]
Allpay
Consolidated Investment Holdings (Pty) Ltd and Others v Chief
Executive Officer of the South African Social Security Agency
and
Others
2014
(1) SA 604
(CC) at para 30
[8]
Trencon
Construction (Pty) Limited v Industrial Development Corporation of
South Africa Limited and Another
[2015] ZACC 22
;
2015 (5) SA 245
(CC);
2015 (10) BCLR 1199
(CC) (26
June 2015) at para 82 to 92
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