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# South Africa: South Gauteng High Court, Johannesburg
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## Minister of Police v Masibi (A3051/2022)
[2023] ZAGPJHC 1389 (29 November 2023)
Minister of Police v Masibi (A3051/2022)
[2023] ZAGPJHC 1389 (29 November 2023)
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sino date 29 November 2023
REPUBLIC
OF SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG
LOCAL
DIVISION, JOHANNESBURG
Case
No: A3051/2022
NOT REPORTABLE
NOT OF INTEREST TO
OTHER JUDGES
NOT REVISED
In
the matter between:
MINISTER
OF POLICE
Appellant
And
ISHMAEL
SHIMANE MASIBI
Respondent
Delivered: This judgment
was prepared and authored by the 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 Case Lines. The
date for hand-down is deemed to be
29 November 2023
JUDGMENT
BOTSI-THULARE AJ:
(NOKO J CONCURRING)
Introduction:
[1] This is an
appeal brought by the Minister of Police (appellant) against the
whole judgment and order delivered by Magistrate
Viana on 10 March
2022 at the Johannesburg Regional Court in favour of Ismael Shimane
Masibi (the respondent). The learned Magistrate
found that the arrest
and detention of the respondent on 5 May 2012 to 12 October 2012 were
unlawful.
Background Facts
[2] The following
facts are largely common cause or are not in dispute between the
parties. In the early hours of 05 May 2012,
respondent was arrested
without a warrant by members of the police service (SAPS) on
suspicion of business robbery and detained
at Mondeor Police Station
until his first appearance on 07 May 2012.
[3] On 11 May 2012
he attended an identification parade but was not pointed out by
anyone at said parade. He remained in custody
at Mondeor Police
Station until his next appearance on 14 May 2012. The matter was
postponed again, and the respondent was transferred
to Johannesburg
Central Prison until 12 October 2012 when the charges against him
were withdrawn and he was released.
[4] The respondent
instituted a delictual claim for unlawful arrest and detention
against the appellant with summons being
issued on 03 December 2012.
The trial was heard on 03 November 2021 and 02 February 2022.
Judgment was granted by the Magistrate
on 10 March 2022.
[5] At trial, the
appellant called one witness, Constable Sithole (Constable) who
testified that she was the investigating
officer assigned to
investigate a charge of theft of a motor vehicle and a business
robbery that occurred at McDonalds restaurant
early in 2012. She
attended the scene of crime along with Sergeant Rikhotso (Sergeant)
to obtain further information and received
statements from the staff.
She was informed that the manager of McDonalds, Bheki Ndlebe
(Manager) did not return to his shift after
the robbery. The
Constable and Sergeant then embarked on what is called “suspect
raiding”. They went to the manager’s
place of residence
and arrested him. He pointed at another suspect and that pointing led
to the arrests of other suspects with
the respondent being the last
person to be arrest on 5 May 2012.
[6] Although the
Constable was at the scene when the respondent was arrested, along
with several police officials, she was
in the police van and did not
personally effect the arrest. Instead, the Sergeant who effected the
arrest. It is noteworthy that
these other officials did not testify,
as the version was that they had either retired, resigned or were
sick. Though still a member
of SAPS at the hearing of the trial, the
Sergeant, for reasons unknown, did not testify. When asked why a
warrant of arrest was
not obtained as some time had passed between
the robbery and the arrest of the respondent she replied that Captain
Du Toit (Captain)
was of the view that they had sufficient evidence
to effect the arrest. It was the captain, a senior to both the
Constable and
Sergeant, who instructed the latter to arrest the
respondent.
[7] Constable was
not privy to the discussion between the Captain and Sergeant. In this
regard, it was her evidence that Sergeant
was following the Captain’s
instructions regarding the arrest and attended to the detention of
the respondent and the other
arrestees. The respondent was detained
at Mondeor Police Station.
[8] Subsequent to
the arrest, an identification parade was held on 11 May 2012. The
Constable, who was the investigating officer
was not present at the
parade and was not aware of its outcome as the docket was with the
captain. It is common cause that the
respondent was not identified at
the identification parade. During cross-examination the Constable was
asked why she failed to
bring to the court’s attention the
outcome of the parade, she stated, “I see no reason to explain
to the court something
I did not know”. As investigating
officer, it was her duty to bring the docket to court. When asked
about the respondent’s
further detention for a further five
months, she was of the view that the court must have had reason to
remand the respondent for
a further five months. She stated it was
the court’s responsibility to decide whether to keep the
respondent in custody or
release him.
[9]
The respondent testified on his own behalf and said that he operates
a taxi service, and on 01 April 2012, at around 20:00,
he was called
by Ramoba who requested transportation. Ramoba was no stranger to the
respondent as he used to transport Ramoba’s
child to school.
The respondent picked Ramoba and another person (Galela) at the
agreed location He charged them a fee and the
two men asked to be
dropped off at the McDonald’s and that is what he did.
[10] As he was about to
depart, the respondent was again approached by Ramoba and Galela who
required further transport to their
respective homes. He charged them
an agreed amount. It appears from the record that the respondent may
have stayed a few minutes
after dropping off Ramoba and Galela. When
cross-examined on this, he explained he had insufficient space to
turn and had to turn
around to exit through the drive-through, and
whilst on his way to the exit he encountered Ramoba and Galela again
who asked him
to return them to their respective homes.
[11] The Magistrate found
no discrepancies between the respondent’s warning statement and
his evidence during examination
in chief regarding the dropping off
and picking up of Ramoba and Galela. In the court
a quo
’s
view, the respondent merely confirmed with more detail his version
mentioned to the police in his warning statement, during
examination
in chief. The court found that the warning statement was terse,
giving only a brief explanation of the events. That
at court, the
respondent had the opportunity to explain more fully what transpired
at McDonald’s.
Court a quo’s
findings
[12] The court
a quo
rejected the Constable’s evidence, finding that it was mostly
inadmissible hearsay. Further, that there was no evidence directly
or
indirectly implicating the respondent in the robbery. Furthermore,
there was no evidence showing that the respondent benefitted
from the
spoils of the robbery nor was there evidence to show that he was
aware that Ramoba and Galela were involved in a robbery.
[13]
In finding that the respondent’s arrest and detention were
unlawful the court considered the jurisdictional facts that
must be
present for an arrest without warrant in terms of (s 40 (1)(b) of the
Criminal Procedure Act
[1]
(CPA),
which provides that an arrest without a warrant is only permissible
where a police officer has a reasonable suspicion that
the person so
arrested has committed an office listed in Schedule 1. Once these
jurisdictional facts are present, the discretion
to arrest or not
arises.
[2]
The court accepted
the Constable’s evidence that she did not carry out the arrest,
but rather the Sergeant, in the presence
of other police officials.
This he did on the instructions of the Captain. Accordingly, the
court found, it was the Captain who
carried out the arrest and it was
he, who must harbour the reasonable suspicion. Neither the Sergeant
nor the Captain testified.
Therefore, the Captain’s true state
of mind and what suspicion he harboured remained unknown.
[14]
Even the Captain harboured a suspicion based on the information about
the vehicle the respondent was driving (a green Honda),
it must be
shown that such suspicion was reasonable. Relying on
Barnard
v Minister of Police and Another,
[3]
the court found that the Captain did not investigate exculpatory
statements offered by the suspect (the respondent) before he formed
a
reasonable suspicion for purposes of a lawful arrest. The evidence
was that at the time of arrest, he was asked if he was Shakes,
he
answered in the affirmative and then he was told he is under arrest
for business robbery. He explained that he knew nothing
about a
robbery. All information the police obtained, information the court
assumed was also available to the Captain was received
from Ramoba.
The
statement by Ramoba merely states the respondent was contacted for
transportation, it does not implicate him in a robbery
.
There was no evidence on how the Captain processed the information.
The court found that the respondent was not questioned, and
his
exculpatory explanation was not investigated, even in a cursory
manner, he was simply arrested. In these circumstances, the
court
a
quo
held it cannot be said that the Captain and Sergeant had sufficient
information to form a reasonable suspicion. Accordingly, the
appellant had failed to show the jurisdictional facts that should be
present to effect a lawful arrest of the respondent without
a
warrant.
[15]
On the respondent’s detention for a period of 174 days, the
court
a
quo
had no doubt on the liability of the appellant for the unlawful
detention from 05 May 2012 until 14 May 2012, a period of days.
The
court found the appellant liable for the further detention of the
respondent from 14 May 2012 until 12 October 2012. Relying
on
De
Klerk v Minister of Police
[4]
where the majority of the Constitutional Court held that the
Magistrate concerned should not be exclusively liable for the
court-ordered
detention after the unlawful arrest, given the original
delict by the arresting officer and a subjective foresight of the
subsequent
detention and the harm associated therewith, the court
a
quo
held the defendant liable for this period. This was compounded by the
fact that the Constable, despite being the investigating
officer, did
not acquaint herself with the contents of the docket, nor did she
bring it to the attention of the court the outcome
of the
identification parade. This failure, so found the court, led to the
respondent appearing another 15 times and remaining
in custody for
nearly 6 months. The court noted the lacklustre approach to the
matter by members of the SAPS and their failure
to bring essential
information to the attention of the prosecutor or court. That the
matter was simply left in the court’s
hands, whilst the
appellant’s employees were aware the matter would be
mechanically remanded.
[16]
Having considered the principles enunciated in
Seymour
[5]
on the trial judge’s wide discretion to award what it considers
to be fair and adequate compensation, the fact that he was
awoken at
night whilst at home with this family, pointed with a firearm and
arrested in their presence, the conditions of the cell
he was
incarcerated in, and embarking on a comparative study of similar case
law, the court awarded the plaintiff
R
400 000.00 plus interest at 15.5% from 11 January 2013 being the
date of issue of the demand.
Grounds for appeal
[17] The appellant
alleges the court
a quo
misdirected itself in several aspects
and raises these grounds of appeal:
17.1
That the Magistrate misdirected
himself or made an error in law when he found that the evidence of
the Constable was inadmissible
hearsay – that no evidence was
shown that the respondent was either directly or indirectly
implicated in the robbery that
occurred at McDonald’s.
17.2
That he misdirected himself or made an
error in law when he found that the arrest was effected on the
command of the Captain, though
the physical part of the arrest was
carried out by the Sergeant. Accordingly, that it was the Captain who
carried out the arrest.
17.3
That he misdirected himself by
finding that appellant failed to show the jurisdictional facts that
should be present to effect a
lawful arrest.
17.4
That he misdirected himself when he
granted the respondent the amount of R 400 000.00 with interest
from 11 January 2013 the
date the letter of demand was issued.
17.5
That he misdirected himself when he
awarded interest at the rate of 15.5% when the current rate is 7.5%.
Issues for
determination
[18] The issued to be
determined in this matter are the following:
18.1 Whether the evidence
led by the Constable before the court
a quo
regarding the
unlawful arrest and detention was hearsay?
18.2 Whether the
jurisdictional requirements of a lawful arrest and detention without
warrant were met?
18.3 Whether the claim
amount granted with interest is payable as at the date of letter of
demand or at the date of the judgement?
18.4 Whether the awarded
interest is at the prescribed rate as gazette?
Law applicable to
the facts
[19]
It is generally accepted that a court of appeal would not be inclined
to reject the factual findings of the trial court in
the absence of
demonstrable and material misdirection by the trial court. The
findings of fact by the trial court are presumed
to be correct and
would only be disregarded if the recorded evidence showed them to be
clearly wrong.
[6]
I have
not been able to find any demonstrable errors on the part of the
trial court to justify interference with its credibility
findings.
[20] It is trite that an
appellate court will not lightly interfere with the decision of a
lower court exercising a discretion when
determining an issue unless
the discretion was not exercised judicially and properly. Put
differently, when a lower court exercises
a discretion in the true
sense, it would ordinarily be inappropriate for an appellate court to
interfere unless it is satisfied
that this discretion was not
exercised judicially, or that it had been influenced by wrong
principles or a misdirection of the
facts. To achieve this, the
appellate court must investigate whether the discretion was in the
true sense or in the loose
sense.
[7]
[21]
In
Trencon
Construction v Industrial Development Corporation of South Africa
Limited and Another
[8]
the court, dealing with the issue of the court exercising a
discretion stated the following:
“
[85]
A discretion in the true sense is found where the lower court has a
wide range of equally permissible options available to
it. This type
of discretion has been found by this Court in many instances,
including matters of costs, damages and in the award
of a remedy in
terms of section 35 of their Restitution of Land Rights Act. It is
“true” in that the lower court has
an election of which
option it will apply and any option can never be said to be wrong as
each is entirely permissible.
[86] In contrast,
where a court has a discretion in the loose sense, it does not
necessarily have a choice between equally permissible
options.
Instead, as described in Knox, a discretion in the loose sense-
‘
means
no more than that the court is entitled to have regard to a number of
disparate and incommensurable features in coming to
a decision.
’
[87]
This court has, on many occasions, accepted and applied the
principles enunciated in Knox and Media Workers Association. An
appellate court must heed the standard of interference applicable to
either of the discretions. In the instance of a discretion
in the
loose sense, an appellate court is equally capable of determining
that matter in the same manner as the court of first instance
and can
therefore substitute its own exercise of the discretion without first
having to find that the court
of
first instance did not act judicially. However, even where a
discretion in the loose sense is conferred on a lower court, an
appellate court’s power to interfere may be curtailed by
broader policy considerations. Therefore, whenever an appellate
court
interferes with a discretion in the loose sense, it must be guarded.”
[22] An appellate court’s
discretion is therefore restricted.
Application
First Ground
[23] The appellant takes
issue with the finding by the court
a quo
that the evidence of
the Constable was inadmissible hearsay evidence. In its heads of
argument, the appellant goes into detail
on the involvement of the
Constable as investigating officer, in the investigation of the
robbery and the eventual apprehension
of the alleged suspects.
Essentially, the appellant seeks to show that Constable had deep and
intimate knowledge of the matter
and all the arrests. It is conceded
that though she did not effect the physical arrest of the respondent,
she was present on the
day and said arrest was done after the
investigation was done. Accordingly, it is submitted her evidence
cannot be classified as
inadmissible hearsay as she was always
involved in the arrest of the respondent on the reasonable suspicion
that he has committed
the offence.
[24] The
respondent
contends the court
a quo
made no misdirection regarding the
Constable’s Sithole
evidence. She
was not the arresting officer as she was not physically present when
the arrest was effected and therefore could not
testify regarding the
jurisdictional requirements set out in s 40 (1)(b) of the CPA.
[25] Hearsay evidence is
regulated by s 3 of the Law of Evidence Amendment Act.
[9]
It provides:
“
3.
Hearsay evidence
(1) Subject to the
provisions of any other law, hearsay evidence shall not be admitted
as evidence at criminal or civil proceedings,
unless-
(a) each party against
whom the evidence is to be adduced agrees to the admission thereof as
evidence at such proceedings;
(b) the person upon
whose credibility the probative value of such evidence depends,
himself testifies at such proceedings; or
(c) the court, having
regard to-
(i) the nature of the
proceedings;
(ii) the nature of the
evidence;
(iii) the purpose for
which the evidence is tendered;
(iv) the probative
value of the evidence;
(v) the reason why the
evidence is not given by the person upon whose credibility the
probative value of such evidence depends;
(vi) any prejudice to
a party which the admission of such evidence might entail; and
(vii) any other factor
which should in the opinion of the court be taken into account,
is of the opinion that
such evidence should be admitted in the interests of justice.
(2) The provisions of
subsection (1) shall not render admissible any evidence which is
inadmissible on any ground other than that
such evidence is hearsay
evidence.
(3) Hearsay evidence
may be provisionally admitted in terms of subsection (1)(b) if the
court is informed that the person upon whose
credibility the
probative value of such evidence depends, will himself testify in
such proceedings: Provided that if such person
does not later testify
in such proceedings, the hearsay evidence shall be left out of
account unless the hearsay evidence is admitted
in terms of paragraph
(a) of subsection (1) or is admitted by the court in terms of
paragraph (c) of that subsection.
(4) For the purposes
of this section-
“
hearsay
evidence
” means evidence,
whether oral or in writing, the probative value of which depends upon
the credibility of any person other
than the person giving such
evidence;
“
party
”
means the accused or party against whom hearsay evidence is to be
adduced, including the prosecution.”
Second and Third
Grounds
[26]
Duncan
[10]
is the leading case on the jurisdictional facts that must be present
for an arrest without warrant to be lawful.
The
onus of proof for lawful arrest rests with the appellant, who should,
on a balance of probabilities, show and satisfy the court
that the
peace officer reasonably suspected that the respondent committed an
offence referred to in Schedule 1. Section 40(1)(b)
does not
necessarily require direct evidence but rather the arresting officer
should hold a suspicion which should be formed on
reasonable grounds.
Accordingly, the circumstances giving rise to the suspicion must be
such as would ordinarily move a reasonable
man to form the suspicion
that the arrestee has committed a Schedule 1 offence.
[27] Reaffirming
Duncan
,
the court in
Mabona
and Another v Minister of Law and Order
[11]
stated the following on reasonable suspicion:
“
There
can be no doubt that he was given information which caused him
subjectively to suspect the plaintiffs of involvement in the
robbery.
The question is whether his suspicion was reasonable. The test of
whether a suspicion is reasonably entertained within
the meaning of s
40(1)(b) is objective (S v Nel and Another
1980 (4) SA 28
(E) at
33H). Would a reasonable man in the second defendant's position and
possessed of the same information have considered that
there were
good and sufficient grounds for suspecting that the plaintiffs were
guilty of conspiracy to commit robbery or possession
of stolen
property knowing it to have been stolen? It seems to me that in
evaluating his information a reasonable man would bear
in mind that
the section authorises drastic police action. It authorises an arrest
on the strength of a suspicion and without the
need to swear out a
warrant, i.e. something which otherwise would be an invasion of
private rights and personal liberty. The reasonable
man will
therefore analyse and assess the quality of the information at his
disposal critically, and he will not accept it lightly
or without
checking it where it can be checked. It is only after an examination
of this kind that he will allow himself to entertain
a suspicion
which will justify an arrest. This is not to say that the information
at his disposal must be of sufficiently high
quality and cogency to
engender in him a conviction that the suspect is in fact guilty. The
section requires suspicion but not
certainty”.
[28]
To ascertain whether a suspicion that a Schedule 1 offence has been
committed is “reasonable”, there must obviously
be an
investigation into the essentials relevant to each particular
offence.
[12]
[29]
In Law of Damages
[13]
, the
authors state that in wrongful or malicious arrest cases, the
following factors play a role in the assessment of damages:
“
[The
circumstances under which the deprivation of liberty took place; the
presence or absence of “improper motive” or
“malice”
on the part of the defendant; the harsh conduct of the defendants;
the duration and nature of the deprivation
of liberty; the status,
standing, age, health and disability of the plaintiff; the extent of
the publicity given to the deprivation
of liberty: the presence or
absence of an apology or satisfactory explanation of the events by
the defendants; awards in comparable
cases; the fact that in addition
to physical freedom, other personality interests such as honour and
good name as well as constitutionality
protected fundamental rights
have been infringed; the high value of the right to physical liberty;
the effect of inflation; the
fact that the plaintiff contributed to
his or her misfortune; the effect that the award may have on the
public purse; and according
to some, the view that actio iniuriarum
also has a punitive function”.
[14]
[30]
On the authority of
Bhika
v Minister of Justice and Another
[15]
it is abundantly clear that even though the physical act of arrest
may have been carried out by subordinates, the officer ordering
the
arrest is to be considered the arrestor.
[31] It is uncontested
that the Constable did not effect the physical arrest of the
plaintiff, rather the
Sergeant arrested
on
the orders of the
Captain
. This, the
respondent contends in his heads of argument, is on its own unlawful.
Neither the Sergeant nor the Captain testified
to their suspicion and
the reasonableness thereof.
Fourth and Fifth
Grounds
[32] This is the ground
most seriously contested by the appellant and such contestations have
some merit.
[33] Judgment was granted
in favour of the
respondent
for the
amount of R 400 000.00, including interest from 11 January 2013,
when the letter of demand was issued. The defendant
complains that
the interest awarded was based on the rate of 15.5% and not the
prevailing rate, 7.5% for illiquid debt at the time
of judgment. In
the
respondent’s
heads of argument, the contention is that the rate is actually
7.25% and not 7.5%.
[34] The appellant
submits that the interest should have been granted from
the date
of payment of judgment
at the
legal rate at the time of
judgment
. That, at the date when summons was issued on
03
December 2012
, there was no debt due to the respondent as the
claim is delictual in nature and would only be due once judgment was
granted in
favour of the respondent and once the amount due is
determined. If this quantification on this rate is allowed, the in
duplum
rule will be violated.
[35] In
MEC:
Police, Roads and Transport Free State Provincial Government v
Bovicon Consulting Engineers CC and Another,
[16]
the court confirmed the settled position of
Paulsen
and Another v Slip Knot Investment 777 (Pty) Limited
[2015] (3) SA 479
(CC) and held that interests run anew from the date
that the judgment debt is due and payable. The rule is that the
arrear interest
stops accruing when the sum of unpaid interest stops
equals the extend of the outstanding capital.
[36]
On the question on when interest should begin to accumulate on
unliquidated claims, Ledwaba DJP stated the law thus in
Blything
v Minister of Safety and Security
,
[17]
a matter not dissimilar to the one in
casu
involving
damages for unlawful arrest and detention –
The Law
:
[11]Before the
introduction of section 2A (hereinafter referred to as "Act
55 of 1975"), no common law principle
or statutory enactment
provided for the award of pre-judgment interest on unliquidated
damages.
[12]Section 2A reads
as follows:
"2A.
Interest on unliquidated debts.-
(1)
Subject to the provisions of this section the amount of every
unliquidated debt as determined by a court of law, shall bear
interest
as contemplated in s 1.
(2) (a) Subject to any
other agreement between the parties and the provisions of the
National Credit Act, 2005
the interest contemplated in subs (1) shall
run from the date on which payment of the debt is claimed by the
service on the debtor
of a demand or summons, whichever date is the
earlier.
(5 ) Notwithstanding
the provisions of this Act but subject to any other law or an
agreement between the parties, a court of law,
.... may make such an
order as appears just in respect of the payment of interest on an
unliquidated debt, the rate at which interest
shall accrue and the
date which interest shall run.
[17] The
position in respect of unliquidated damages has been set out in
several judgments in our law and in Coetzee AJ in
Du Plooy
v Venter Joubert lng. en Ander
at paragraph [23] states as
follows:
"In as far as s 1
do not provide for the calculation of interest on unliquidated debts,
Grosskopf JA, prior to s 2A being enacted,
in SA Eagle Insurance Co
Ltd v Hartley, remarked as follows:
'.... If a plaintiff
through no fault of his own has to wait a substantial period of time
to establish his claim it seems unfair
that he should be paid in
depreciated currency. Of course, in respect of many debts this
problem is resolved (or partially resolved)
by an order for the
payment of interest, and the Prescribed Rates of Interest Act 55 of
1975 is flexible enough to permit the Minister
of Justice to
prescribe rates of interest which reflect the influence of inflation
on the level of rates generally (see s 1(2).
Its application is,
however, limited to debts bearing interest (s 1(1)); and it is trite
law that there can be no mora, and accordingly
no mora interest in
respect of unliquidated claims of damages. See Victoria Falls &
Transvaal Power Co Ltd v Consolidated Langlaagte
Mines Ltd 1915 AD at
31-33, a decision which has been consistently applied and followed,
also in this Court. It follows that there
is no mechanism by which a
court can compensate a plaintiff like the present for the ravages of
inflation in respect of monetary
losses incurred prior to the trial.'
[18] In terms of the
Prescribed Rates of Interest Act it is permissible to recover mora
interest on amounts awarded by a court which,
but for such award,
were unliquidated. Once judgment is granted such interest
shall
run from the date on which payment of the debt is claimed by the
service on the debtor of a demand or summons,
whichever date is
earlier - section 2A(2) (a) of Act 55 of 1975. The word "demand"
is defined in the Act to mean a written
demand setting out the
creditor's claim in such a manner as to enable the debtor reasonably
to assess the quantum thereof.
[19]In the
Kwenda
case
, Murphy J accepted that in the particular case, it was
reasonably possible for the defendant to assess the quantum once the
summons
was issued.
[20]In
Eden &
Another v Pienaar
referring to the criticism in
Hartley's
case
the Full Court of the then WLD, stated that the effect
of the inserted section 2A, is that; "the position in our law is
now both liquidated and unliquidated debt beat interest (the latter
from the date on which payment is demanded or claimed by summons)
at
the rate prescribed by the Minister of Justice in terms of s 1(2)."
[21]The Supreme Court
of Appeal in
Thorough Breeders Association v Price
Waterhouse
it was held that in the absence of a letter of
demand
, section 2A of Act 55 of 1975, ordained mora interest
at 15.5% per annum from the date of summons. The court observed
that
"if the award was one for mora interest there is no reason why,
having regard to s2A of the Act, interest should only
run from the
date of judgment and not from the date of summons." In
paragraph [79] the court concludes: "since no
demand prior to
summons was proved, the date for the commencement for the calculation
would therefore be the date upon which summons
was served."
[22]The Supreme Court
of Appeal further held, in
Steyn NO v Ronald Bobroff
that
the term mora simply means delay or default. The mora interest
provided for in the Act is thus intended to place the
creditor, who
has not received due payment ... in the position that he or she would
have occupied had the payment been made"
when it was first
requested from the defendant.
[23]In
Minister of
Safety and Security and others v Janse van der Walt
and
another the Supreme Court of Appeal ordered the first defendant
to pay the interest on the amount of damages awarded at
the rate of
15.5% per annum from the date of demand to the date of payment.
Similarly, the Supreme Court of Appeal in
Woji v The Minister of
Police
ordered the defendant to pay interest on the sum of
R500 000.00 at the rate of 15.5% per annum a tempore morae from
date of demand to date of payment.
[24]Having regard to
the above-mentioned case law and the reasoning therein concluding
that interest in illiquid claims for damages
may be awarded interest
a tempore morae from the date of demand or summons,
whichever is earlier, in terms of section
2A (2)(a) of Act 55 of
1975, it is clear in Takawira case the court in finding that interest
on an illiquid claim for damages,
can be determined from the date of
judgment.
Discretion in
terms of section 2A (5)
:
[25]In the unreported
case of
Nel v Minister of Safety and Security
Kubushi
J held that: The default position of the Act is that the amount
of every unliquidated debt as determined by any
court of law shall
bear interest at the prescribed rate a tempore morae, unless a court
of law orders otherwise. Where a court
deviates from this position,
an order that it may make, must appear just in the circumstances of
that case."
[26]In the current
matter, I find no circumstances justifying the deviation from the
prescribed rate.”
[37] The court then
proceeded to order interest at the rate of 15.5% per annum
as from
the date of demand
(which was 07 June 2021) to date of final
payment.
[38] Section 2A (5) gives
a court a discretion. There are a number of factors the court can
consider: the length of time from service
of summons to date of the
order of the court
a quo
; the in
duplum
rule; the fact
that money depreciates with time.
[39] Essentially, what is
fair in this case? In
Da
Cruz v Bernardo
[18]
one of the factors considered for purposes of interest was delays in
litigation with the court stating:
“
[61] Delays in
litigation may run longer than it took for the interest to equal the
capital at the applicable mora interest rate.
In these circumstances
it was preferable, as a matter of public policy and in the interests
of justice, for the court to retain
a discretion on how interest
should be awarded, exercised on the facts of each case. Where the
court had such a discretion, it
could exercise that discretion to
limit interest payable to a dilatory plaintiff or to allow that
interest where the defendant
was the reason for the delay. Section
1(1) of the Prescribed Rate of Interest Act provides the court with
that discretion. The
'special circumstances' which give a court the
discretion set out in s 1(1) of the Prescribed Rate of Interest Act
would include
circumstances where a plaintiff had been dilatory or
where delay ought not to be visited on one of the parties.”
[40] In
Motladile
v Minister of Police
[19]
the
SCA
awarded
damages with interest at 7% (the prevailing rate at the time) from
the date of service of summons to the date of payment.
Conclusion
[41] Given that there was
no reasonable suspicion to arrest the respondent, and that the said
arrestor did not give testimony in
court, it is an indication that
jurisdictional facts have not been met and therefore the evidence
given by the Constable since
she was not the arrestor is an
inadmissible hearsay. Therefore, in my view, the findings of the
court
a quo
in this regard, cannot be faulted.
[42] I
find that the interest should run from the date of the service of
summons in accordance with the prevailing interest rate
of 7% at the
time of the Magistrate Court judgment on 10 March 2022
.
[20]
[43]
This court has
partially allowed the appeal. For this reason, the cost order made by
the court
a
quo
should
be amended. The appellant’s grounds of appeal cannot be
construed to have been unreasonable in as far as the interest
rate in
concerned. With regards to the appeal relating to the merits and
quantum the opposition was reasonable hence the appeal
could not be
sustained. To this end the costs in the appeal should be that each
party pay respective costs whereas 50% of the respondent’s
cost
in the court a quo should be for the respondent’s account.
Order
In
the premises I make the following order.
1.1
The appeal is
dismissed in relation to the merits and quantum and each party to pay
their respective legal costs.
1.2
The appeal is
partially upheld and the order for the court a quo is substituted as
follows:
1.2.1.
“
Judgment
in favour of the plaintiff for R400 000.00 plus interest at the
rate of 7% per annum from date of service of summons
to date of
payment.
1.2.2.
Defendant
is ordered to pay 50% the plaintiff legal costs.”
1.2.3.
MD BOTSI-THULARE
ACTING JUDGE OF THE
HIGH COURT, JOHANNESBURG
IT
IS AGREED AND SO ORDERED
M V NOKO
JUDGE OF THE HIGH
COURT, JOHANNESBURG
APPEARANCES:
Appellant
Counsel
for the Appellant : Adv S Magaqa
Instructed
by : State Attorney
Respondent
Counsel
for the Respondent : Adv FF Opperman
Instructed
by : M Gowrie Attorneys
DATE
OF HEARING :
04 October 2023
DATE
OF JUDGMENT :
29 November 2023
[1]
51
of 1977.
[2]
Duncan
v Minister of Law-and-Order
1986 (2) SA 805
(A) at 818AG-H (“
Duncan
”).
[3]
2019
(2) SACR 31 (ECG).
[4]
2021
(4) SA 585 (CC).
[5]
Minister
of Safety and Security v Seymour
2006
(6) SA 320
(SCA).
[6]
S
v
Livanje
2020 (2) SACR 451
(SCA) at para18.
[7]
S
v
Francis
1991
(1) SACR 198
(A)
at para 204c-e.
[8]
2015
(5) SA 245 (CC).
[9]
45
of 1988.
[10]
Duncan
above n 3.
[11]
1988
(2) SA 654
(SE) at 658D-H.
[12]
Ramakulukusha
v Commander, Venda National Force
1989
(2) SA 813
(V) at 836G – 837B.
[13]
Potgieter,
Steynberg and Floyd
Visser
& Potgieter Law of Damages
3 ed (Juta, 2012).
[14]
Id
at 15.3.9.
[15]
1965
(4) SA 399
(W). The court here following the authority in earlier
cases
Birch
v Johannesburg City Counci
l
1949 (1) SA 231
(T) and
Minister
of Justice v Ndala
1956 (2) SA 777 (T).
[16]
[2023] ZASCA 99.
[17]
2016
JDR 1653 (GP).
[18]
2022 (2) SA 185 (GJ).
[19]
2023(2)
SACR 274 (SCA)
[20]
Published
under Government Notice
R1182
in
Government
Gazette
No
43873
of
6 November 2020.
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