Case Law[2023] ZAGPJHC 1397South Africa
Airports Company of South Africa SOC Limited and Others v CT MED and Trauma (Pty) L t/a Cape Medics (A5072/2021) [2023] ZAGPJHC 1397 (30 November 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
30 November 2023
Headnotes
Summary: Contempt of court proceedings - Wilfulness and mala fides considered in the context of an arbitration clause embodied in an agreement made an order of court – although stay of proceedings to have the disputes determined in terms of the arbitration clause not squarely requested, court should have had regard to it for purposes of assessing wilfulness and mala fides in the context of this case as contemnor relied upon such clause albeit for a different purpose i.e. that it constituted a bar per se.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Airports Company of South Africa SOC Limited and Others v CT MED and Trauma (Pty) L t/a Cape Medics (A5072/2021) [2023] ZAGPJHC 1397 (30 November 2023)
Airports Company of South Africa SOC Limited and Others v CT MED and Trauma (Pty) L t/a Cape Medics (A5072/2021) [2023] ZAGPJHC 1397 (30 November 2023)
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sino date 30 November 2023
REPUBLIC
OF SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
Case No: A5072/2021
NOT REPORTABLE
NOT OF INTEREST TO
OTHER JUDGES
REVISED
In the matter between:
AIRPORTS
COMPANY OF SOUTH AFRICA SOC LIMITED
1
st
Appellant
MPOFU:
NOMPUMELELO
2
nd
Appellant
MATSHEGO:
BADISA
3
rd
Appellant
MBOMVU:
BONGIWE
4
th
Appellant
and
CT
MED AND TRAUMA (PTY) LTD t/a CAPE MEDICS
Respondent
Heard:
19 April 2023
Delivered:
30 November 2023
Summary:
Contempt of court proceedings -
Wilfulness and mala fides considered in the context of an arbitration
clause embodied in an agreement
made an order of court –
although stay of proceedings to have the disputes determined in terms
of the arbitration clause
not squarely requested, court should have
had regard to it for purposes of assessing wilfulness and mala fides
in the context of
this case as contemnor relied upon such clause
albeit for a different purpose i.e. that it constituted a bar per se.
ORDER
On
appeal from: Gauteng Division of the High Court, Johannesburg
(Crutchfield AJ):
(a)
The appeal is upheld with each party to pay
their own costs.
(b)
The order of the court
a
quo
is set aside and replaced with the
following:
‘
The
application is dismissed. Each party is to pay their own costs.’
This
judgment was handed down electronically by circulation to the
parties’ legal representatives by email. The date and time
for
hand-down is deemed to be 30 November 2023.
JUDGMENT
Ingrid Opperman J
(Coppin and Dippenaar JJ concurring)
Introduction
[2]
The
Airports Company South Africa Soc Limited (
ACSA
)
and its responsible executives, the second, third and fourth
appellants, were held in contempt of an Order of Court issued on
10
June 2020 (
the
Court Order
).
The Court Order incorporated a written settlement agreement that had
been entered into between ACSA and the respondent (
Cape
Medics
),
which settlement agreement made provision for the settlement
agreement itself to be made an order of court. The Court Order and
ACSA’s knowledge thereof are common cause in this appeal. The
issue is whether ACSA failed to discharge the evidential burden
in
relation to wilfulness and
mala
fides
[1]
.
[3]
Before exploring this question I need to
unpack the dispute which culminated in the conclusion of the
settlement agreement.
The facts
underpinning the contractual relationship between ACSA and Cape
Medics
[4]
In terms of the
Airports Company Act 44 of
1993
, ACSA is the organ of state responsible for the maintenance,
management, control and operations of airports in South Africa. The
three airports implicated in the present appeal are OR Tambo
International Airport (
ORTIA
)
in Johannesburg, Cape Town International Airport (
CTIA
)
and King Shaka International Airport (
KSIA
)
in Durban, (collectively ‘
the
airports’
).
[5]
On 19 January 2018 and in order to procure
various services to the airports, including emergency medical
services, ACSA issued Request
for Proposal No. COR130/2016 being a
"
Request for Proposals for the
Provision of Legislative Medical and Emergency Medical Services,
Occupational Medicals and Low Cost
Medical Aid at Airports Company of
South Africa's Airports
" (
the
RFP)
. The RFP comprised five parts,
being: Part A: Occupational Services; Part B: Supply of Emergency
Medical Assistance and Emergency
Medical Transportation;
Part C:
Supply of Ambulances (fully converted) (small type ambulance);
Part
D:
Supply of Medical Equipment; and Part E: Supply of Furniture.
[6]
Part A of the RFP was awarded by ACSA to
Novamix and Part B to Cape Medics. Pursuant thereto ACSA and Cape
Medics entered into a
written Service Level Agreement on 25 June 2018
(
the SLA
).
Cape Medics was thus only awarded Part B.
[7]
At the time of the award by ACSA of Part A
to Novamix, and of Part B to Cape Medics, no award was made by ACSA
in respect of
Parts C
, D or E of the RFP. Accordingly, as at the
effective date of the SLA, no service provider had been appointed by
ACSA to supply
Ambulances (in terms of
Part C)
, the medical equipment
(in terms of
Part D)
nor the furniture (in terms of Part E) of the
RFP. Without the medical equipment and the furniture which was needed
to be able
to render emergency medical services, such services could
apparently not be rendered. To have emergency medical staff on
standby,
but without the necessary equipment and furniture, was,
argued Cape Medics, tantamount to sending troops into combat without
weapons
and ammunition - they were rendered impotent and ineffectual.
[8]
On 13 March 2020, ACSA sent a notice of
termination to Cape Medics. In response and by virtue of ACSA’s
alleged breaches
of the SLA to perform various of its contractual
obligations in terms of the SLA, Cape Medics launched an application
under case
number 10223/2020 (
the SLA
application
) which in turn culminated
in the Settlement Agreement and Court Order. In Part A, the urgent
part of the SLA application, the relief
sought was to interdict the
termination of the SLA whilst in Part B of the SLA application (the
ordinary course part of the SLA
application), Cape Medics sought the
review and setting aside of the decision by ACSA to terminate the
SLA.
[9]
In terms of the Settlement Agreement (which
settled both Parts A and B), ACSA rescinded the purported notice of
termination and
it was agreed that the SLA, with its full terms and
conditions save as otherwise recorded in the Settlement Agreement,
would remain
effective for the five year period thereof.
[10]
The breach by ACSA of its obligations to
provide the required ambulances featured prominently in the SLA
application, but in terms
of the Settlement Agreement, it was agreed
that ACSA would be relieved of the obligation to provide the
ambulances required for
the provision of emergency medical services
at the airports, and that at no extra cost, Cape Medics would utilise
its own ambulances
in providing these services.
[11]
Non-compliance with clauses 5.1.5 and
5.1.10 of the Settlement Agreement formed the focal point of
the contempt application
in the court
a
quo
. The breaches by ACSA of the
Settlement Agreement which founded the contempt relief claimed
related to nine categories of
equipment which ACSA had allegedly
remained in default of providing.
The SLA and the
Settlement Agreement
[12]
The SLA was concluded on 25 June 2018 and
was for a duration of 5 years from its conclusion. The settlement
agreement was concluded
on 10 June 2020 and was to subsist for the
term of the SLA. The Settlement Agreement incorporated by reference
the terms of the
SLA. It recorded that such terms remained effective
save as expressly provided in the Settlement Agreement.
[13]
In terms of clause 5.1.5, ACSA was to
provide the equipment that was required and necessary for the
operation of Parts D and E of
the RFP and Clause 5.1.10 dealt with
ACSA’s obligations to enable Cape Medics to approach the KZN
Department of Health for
licensing at KSIA.
[14]
A clause which took centre stage during the
appeal hearing, is the dispute resolution clause 1.1.18 in the
Settlement Agreement:
‘……
.In
an event of any dispute, such affected party shall invoke the Dispute
Resolution Mechanism as set out in the SLA.’
[15]
The Dispute Resolution Mechanism as set out
in clause 25.1.1 of the SLA provides, in relevant parts, for
arbitration as follows:
‘
Any
dispute of whatsoever nature which arises out of or in connection
with this Agreement, including any dispute as to the validity,
existence, enforceability, interpretation, application,
implementation, breach, termination or cancellation of this Agreement
or as to the Parties’ rights and/or obligations in terms of
this Agreement or in connection with any documents furnished by
the
Parties in terms of this Agreement,
shall
be submitted to binding arbitration
before a single arbitrator in terms of this clause 25 (Dispute
Resolution) and, except as otherwise provided herein, the rules
for
the time being as stipulated by the Arbitration Foundation of
Southern Africa.’ (emphasis provided)
[16]
Clause 25.2 authorises the approach to the
High Court for urgent or interim relief. It stands undisputed that
the breach of clauses
5.1.5 and 5.1.10 and the approach to the High
Court for a finding of contempt by virtue thereof, did not occur
urgently nor was
the relief sought interim in nature. The exception
provided for in clause 25.2 of the SLA does therefore not have
application.
[17]
Mr Mokhari SC, representing ACSA, argued
that Cape Medics’ failure to have acted in accordance with
clause 25, is fatal to
a finding of contempt as the steps provided
for, submitting the dispute to determination by an arbitrator in
accordance with the
rules for the time being as stipulated by the
Arbitration Foundation of Southern Africa, and the consequential
determination of
that arbitration were an essential pre-requisite
before any contempt proceedings could be brought by Cape Medics. I
should mention
that of course if Mr Mokhari is correct then the
arbitrator’s award would still have to be made an order of
court in terms
of section 31 the
Arbitration Act 42 of 1965
, as
amended (
the
Arbitration Act)
before
the award could form the basis of a contempt application as an
arbitrator’s award must first be made an order of court before
it can form the foundation of a finding of contempt,
section 31
of
the
Arbitration Act reading
:
‘
31(1)
An award may, on the application to a court of competent jurisdiction
by any party to the reference after due notice to the
other party or
parties, be made an order of court.
(2)
The court to which application is so made, may, before making the
award an order of court. correct in the award any clerical
mistake or
any patent error arising from any accidental slip or omission.
(3)
An award which has been made an order of court may be enforced in the
same manner as any judgment or order to the same effect.
‘
[18]
Prior to the hearing in the court below,
ACSA submitted a supplementary affidavit, the receipt of which by the
court below was not
opposed. The Group Legal Counsel for ACSA, Mr
Ntsonkota, sought leave to file the affidavit arguing that the
content of the affidavit
was primarily a legal point but that it is
intertwined with the facts and as such, could not ‘
solely
be raised from the bar’
. It was
received by the court
a quo.
[19]
Mr Ntsonkota may for purposes of this
judgement be considered ‘the mind’ of ACSA, and, speaking
to ‘wilfulness
and mala fides’ on behalf of ACSA he says:
’
15.
I am advised that an Order of this nature is not capable of being
breached, and even if not complied with, does not give rise
to
contempt of Court. The question that arises is what happens if one of
the parties to this agreement breaches any of the terms
of the
agreement set out in clause 5.1. Does that entitle the aggrieved
party to approach Court for contempt. The answer is found
in
paragraph 28 of the settlement agreement (SLA). Clause 28 deals with
breach. It provides as follows:
"Without
derogating from the provisions of clause 26 (
Termination
)
above, if any Party breaches any provision or term of this Agreement
and fails to remedy such breach within 10 days of receipt
of written
notice requiring it to do so then the aggrieved Party shall be
entitled, without notice and in addition to any other
remedy
available to it at law or under this Agreement (including obtaining
an interdict but excluding cancellation or termination
of this
Agreement which remedy shall only be available to the Parties in
terms of clause 26 (
Termination
)
above) to claim specific performance of any obligation whether or not
the due date for performance has arrived, in either event
without
prejudice to the aggrieved Party's right to claim damages."
16.
The remedy of an aggrieved party is founded in clause 28 and not in
contempt proceedings. It was therefore incumbent upon the
applicant
to have invoked clause 28 if it believed that the respondents have
breached the SLA. The settlement agreement cannot
be divorced from
the SLA because it has been incorporated into the SLA. The remedies
provided for in the SLA are the remedies which
must be resorted to by
the parties to the agreement.’
[20]
This, contends Mr Ntsonkota, coupled with
the already quoted paragraph 25 arbitration clause, precluded Cape
Medics from proceeding
with contempt proceedings.
[21]
Mr Mokhari was challenged by me during the
hearing to explain whether the argument came down to one which ousted
the jurisdiction
of the court. He stated unequivocally that it did
not. My understanding of the argument is this: ACSA held the view,
based on
bona fide
legal
advice received, that the SLA as amended by the Settlement Agreement
and embodied in the Court Order, precluded an approach
to court for
specific performance using contempt of court proceedings, at least
until the pre-requisite steps had been taken, as
outlined above. In
addition, the invoking of the arbitration clause, precluded reliance
on contempt of court proceedings. Both
of these features, if he is
correct, would negative ‘wilfulness and mala fides’ as
they could only be present once
the prior steps upon which the
parties had agreed, had been taken.
[22]
The court
a
quo
found that although the settlement
agreement, once made an order of court, retained its features as a
settlement agreement, it took
on new and additional features pursuant
to being made an order of court which included that it could be
enforced by way of contempt
proceedings.
[23]
Could wilfulness and mala fides be imputed
at the stage at which they were, or was the gun jumped?
[24]
Acting
Deputy Chief Justice Khampepe (as she then was) held in
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
[2]
:
‘
[27]
Contempt of court proceedings exist to protect the
rule of law and the authority of the Judiciary. As the
applicant correctly
avers, “the authority of courts and
obedience of their orders – the very foundation of a
constitutional order founded
on the rule of law – depends
on public trust and respect for the courts”. Any
disregard for this Court’s
order and the judicial process
requires this Court to intervene…….’
And further at [87]
‘…
..Here,
I repeat myself: court orders must be obeyed. If the impression
were to be created that court orders are not binding,
or can be
flouted with impunity, the future of the Judiciary, and the rule of
law, would indeed be bleak….’
[25]
The finding by Crutchfield AJ (as she then
was) is undoubtedly correct i.e. that the Court Order was enforceable
by way of contempt
proceedings. The question is, was it reasonable
under the circumstances for ACSA and its responsible executives to
expect that
the provisions of the SLA would be implemented i.e. that
the prior agreed upon dispute resolution clauses (including their
implied
terms) would be exhausted before such a drastic step could be
taken? If they subjectively understood the position differently does
this understanding negative wilfulness or mala fides?
[26]
Where
committal to prison is sought, contempt of court constitutes a
criminal offence.
[3]
In this respect, all major jurisdictions in the world are
ad
idem
.
[4]
[27]
Given
the extraordinary nature of contempt proceedings, and due to the
serious consequences of incarceration, our Courts have held
that
committal for contempt for non-compliance with Court orders should
only be engaged as a matter of last resort.
[5]
This position is consistent with the position taken on the
issue by Lord Omrod, in
Ansah
v Ansah
:
[6]
“
Such
a breach or breaches of an injunction in the circumstances of such a
case as this do not justify
the making of a committal order, suspended or otherwise. Breach of
such an order is, perhaps unfortunately, called contempt of
court,
the conventional remedy for which is a summons for committal. But the
real purpose of bringing the matter back to the court,
in most cases,
is not so much to punish the disobedience, as to secure compliance
with the order in the future. It will often be
wiser to bring the
matter before the court again for further direction before applying
for committal order. Committal orders are
remedies of last resort.”
[28]
In
Dezius
,
[7]
the Pretoria High Court held as follows:
‘
An
offender should not be deprived of his liberty except in accordance
with the precepts of fundamental justice and in compliance
with
procedural safeguards. The public sanction of imprisonment for
disobedience of a court order requires conclusive proof. It
is,
therefore, imperative that before a committal order is issued the
court should scrutinise the facts with great care.
’
[29]
We are charged to scrutinise the facts as
they feed into the wilfulness and mala fides issue, and these need to
be considered.
[30]
Having unpacked the SLA and settlement
agreement and the dispute that flowed therefrom, I now turn to the
non-compliance with the
contractual obligations and the inferences
drawn.
Non-compliance with
the contractual obligations and the inferences drawn
[31]
The court below found that:
‘
Objectively
considered, the respondents did not provide an exculpatory version
for their non-compliance. A finding of wilfulness
and mala fides
against the respondents is justified. It is the only inference
established by the respondents’ conduct.’
[8]
[32]
The Court below meticulously examined the
nine alleged instances of breach and having done so concluded that
ACSA had no defences
in law to the contractual breaches and from this
conclusion inferred wilfulness and mala fides.
[33]
I take no issue with the finding by the
court below that ACSA failed to comply with its obligations but do
take issue with the inference
drawn that such non-compliance
justifies a conclusion of mala fides or wilfulness.
[34]
Ventilators
:
These items were not delivered, which was common cause. ACSA
contended that they were unavailable due to the prevailing Covid
pandemic which version was rejected because of an inadequacy of
evidence. It is common cause that Cape Medics had used its own
ventilators. ACSA contended that it occurred by virtue of an
agreement between the parties in terms of which ACSA would compensate
Cape Medics for such use. The court rejected this agreement on the
basis that it was unlikely that such agreement would have been
concluded having regard to the debt owed to Cape Medics and having
regard to the debt owed as recorded in clause 5.1.16 of the
Settlement Agreement.
[35]
That finding might be support for the
conclusion that there was no compliance with the contractual
obligation but in my view, weighs
on the discharge of ACSA’s
evidentiary burden in respect of the wilfulness enquiry. ACSA might
not have done enough to procure
alternate ventilators and its
explanation for its failure can rightly be labelled ‘insufficient’
but this does not
make its non-compliance intentional. Had the
dispute resolution clause been implemented, this inadequacy could
have been explored.
[36]
Defibrillators
:
The defibrillators provided by ACSA were not fit for purpose and the
court below accordingly held there to be non-compliance with
the
obligations embodied in the Settlement Agreement. It does not follow
from this that it was done wilfully or mala fide.
[37]
Medical privacy curtains
:
ACSA contended that the existing curtains were functional and alleged
financial constraints. Once again the court below rejected
the
explanation contending that it was inadequate.
[38]
It
is unnecessary to go through all the breaches as they all have one
thing in common, being a finding that the explanation advanced
was
supported by inadequate supporting evidence, did not constitute a
defence in law at all or did not rise to the level of factual
disputes as envisaged in
Plascon-Evans.
[9]
[39]
ACSA’s explanations for its failure
to comply coupled with the evidence of its attempts to comply
substantially with the Settlement
Agreement, in my view, negatives
wilfulness and mala fides because, the point is, they tried. The fact
that they did so poorly
or inadequately does not lead to a finding
that they disobeyed the Court Order wilfully or with mala fides.
[40]
In my view, the court below placed undue
emphasis on, as it labelled it, ‘the aggressive and accusatory
tone’ adopted
by ACSA in its correspondence exchanges and too
little heed was given to the caution expressed by Cameron JA (as he
then was) in
Fakie
:
“
The
test for when disobedience of a civil order constitutes contempt has
come to be stated as whether the breach was committed ‘deliberately
and mala fide’.
A
deliberate disregard is not enough, since the non-complier may
genuinely, albeit mistakenly, believe him- or herself entitled
to act
in the way claimed to constitute the contempt. In such a case good
faith avoids the infraction.
Even
a refusal to comply that is objectively unreasonable may be bona fide
(though unreasonableness could evidence lack of good
faith).”
[10]
[41]
It is further regrettable that the dispute
resolution clause, which provided for a speedy resolution of the
disputes (real or perceived),
was not resorted to. I must say that I
do think that it was wise to provide for arbitration in the
circumstances of this agreement.
The three airports mentioned are the
three largest in the country, the provision of emergency medical
services is no straightforward
matter and the evidence of witnesses,
potentially experts in the field specific to each airport, would seem
to me to be the kind
of evidence which an arbitrator would be ideally
suited to receive and make a determination (an award) on before the
sword of Damocles
that is a finding of contempt could fall on either
party or their responsible executives.
[42]
I
find that ACSA’s expectation that Cape Medics would first
implement the dispute resolution clause, prior to approaching
a court
for ‘
a
remedy of last resort
,’
[11]
was reasonable.
ACSA
held the view, based on
bona
fide
legal
advice received, that the SLA as amended by the Settlement agreement
and embodied in the Court Order, precluded an approach
to court for
specific performance using contempt of court proceedings. In the
circumstances of this case, having regard to the
road the parties had
travelled to get to court on 10 June 2020 and although the advice was
wrong ie that the court could not be
approached for a finding in
respect of contempt (having regard to the
Zuma
dicta),
it was not unreasonable in the circumstances of this case to have
laboured under this impression.
[43]
The
invoking of the arbitration clause did not preclude reliance on
contempt of court proceedings but the court
a
quo
ought
to have expressly engaged with the question whether the proceedings
before it ought to have been stayed. This is perhaps because
a stay
was not sought expressly as is required in terms of
Parekh
v Shah Jehan Cinemas (Pty) Ltd and Others
[12]
per
Didcott J
and
the authorities following thereon.
[44]
Ordinarily and without the existence of a
court order, should a party take an arbitral dispute straight to
Court and the other party
does not object, the litigation follows its
normal course. A stay of the proceedings must be sought at which
point the court will
exercise a discretion whether to hold the
parties to the dispute resolution clause or not.
[45]
The distinguishing feature in this case,
and what should be remembered in this case, is that the court on 10
June 2020, when making
the settlement agreement an order of court,
also made the dispute resolution clause a part of that order. A
party to such
an arrangement could very well labour under the
impression that it will only face contempt proceedings after the
arbitration proceedings
have been completed and if a finding adverse
to them is made, after such award is made an order of court.
[46]
A stay of the proceedings for purposes of
implementing the dispute resolution clause was, as already pointed
out, not squarely sought
in this case. The court below did therefore
not exercise a discretion whether to call a halt to the proceedings
or not. It simply
tackled the disputes and made a finding. Whilst
this is admirable, the nuanced position advanced by ACSA was
overlooked being that
where a dispute resolution clause exists, and
the court has incorporated it by reference into a court order (as is
the case here)
a party may labour under an impression (mistaken) that
it will be enforced prior to resorting to contempt proceedings. This,
in
my view, negatives ‘wilfulness and mala fides’.
Conclusion
[47]
The evidence considered holistically, and
the considerations referred to herein, in my view, establishes a
reasonable doubt
as to whether
non-compliance with the obligations embodied in the Settlement
agreement and Court Order, was wilful and mala fide.
ACSA is entitled
to this doubt and I accordingly find that it discharged the
evidentiary burden and the findings in the court
a
quo
fall to be set aside.
[48]
I need to add this though: The manner in
which Cape Medics was treated by ACSA and the obstacles they had to
overcome in order to
do what they were contracted to do, placed them
in an unenviable position. It is not unsurprising that they turned to
the courts
for help.
[49]
Contempt is (when not exclusively coercive)
about the relationship between the contemnor and the court. That
being so, one would
have expected affidavits from all the executives
implicated (the cited respondents), giving chapter and verse of their
understanding
of the law, when the advice relied upon was dispensed,
by whom and how it impacted upon their, and consequently ACSA’s,
decisions.
ACSA’s argued position was that it held the view,
based on
bona fide
legal
advice received, that the SLA as amended by the Settlement Agreement
and embodied in the Court Order, precluded an approach
to court for
specific performance using contempt of court proceedings, at least
until the arbitration route had been followed.
What we have found is
that this advice was wrong. It does not constitute a bar
per
se
but did in the context of this case,
and because the dispute resolution clause was made an order of court,
the court
a quo
ought to have explored a stay of the proceedings and erred in not
exercising a discretion whether to continue with the proceedings.
[50]
What is lacking in this case is detail of
the legal advice which should be extensive such as, the extent of the
advice, the basis
for the advice and the date on which ACSA received
the advice.
[51]
This
Court is entitled (perhaps even obliged) to have regard to the source
of the legal advice. In
S
v Gibson
[13]
the
Court rejected the contention that the accused had acted recklessly
after he had acted on legal advice from a firm of attorneys
described
in the judgment as highly experienced in the relevant field of law.
The same does not hold true in this case. The
source of the
advice in this case is not spelled out. Although the threshold
for rejecting legal advice as a defence is high,
by virtue of the
inadequacy of evidence presented to the court, ACSA narrowly escaped
this consequence.
[52]
I intend expressing my displeasure at the
inadequacy of the evidence in an appropriate costs order in denying
the victors, ACSA
and its executives, the ordinary consequences of
success.
Limited
scope of the appeal
[53]
The appellants applied for leave to appeal
against the whole judgment and Orders of the Court
a
quo .
They were granted leave to appeal
to the Full Court of the Gauteng Local Division on the ground of
whether or not the respondents’
non-compliance with the Court
Order granted on 10 June 2020 was both wilful and mala fide.
[54]
Relying
on
Leeuw v First National Bank Ltd
,
[14]
where the Supreme Court of Appeal held that a Court hearing an appeal
is entitled to make findings in relation to any matter dealt
with in
the impugned judgment provided the basis therefor has been laid in
the notice of appeal and heads of argument, this Court
was invited to
consider the appellants' appeal on all the grounds set out in the
notice of appeal.
[55]
Cape Medics did not take issue with the
legal principle distilled from
Leeuw
and as it turned out, this court made its finding on the issue of
wilfulness and mala fides only ie the issue on which leave to
appeal
was granted. It is accordingly not necessary to consider this feature
further.
Costs
[56]
The court below was correct in its
criticisms of the inadequacy of proof presented in what was a most
serious case. The failure
by any of the executives (the second, third
and fourth respondents) to have deposed to affidavits setting out
their states of mind,
the advice received, when so received and the
like, is startling. Although successful, I have a discretion in
awarding costs to
the successful party/ies and intend exercising it
against ACSA and the other appellants.
[57]
I accordingly make the following order:
(a)
The appeal is upheld with each party to pay
their own costs.
(b)
The order of the court
a
quo
is set aside and replaced with the
following:
‘
The
application is dismissed. Each party is to pay their own costs.’
I Opperman
Judge of the High
Court
Gauteng Division,
Johannesburg
Counsel
for the Appellants:
Adv WR Mokhare SC
and Adv MD Skhosana
Instructed
by
: Mashiane Moodley Monama Attorneys
Counsel
for the Respondent:
Adv PT Rood SC
Instructed
by
: MMfusi & Co Attorneys
Date
of hearing
: 19 April 2023
Date
of Judgment
: 30 November 2023
[1]
Fakie
N.O. v CCII Systems (Pty)Ltd
,
2006 (4) SA 326 (SCA)
[2]
(CCT
52/21)
[2021] ZACC 18
;
2021 (9) BCLR 992
(CC);
2021 (5) SA 327
(CC)
(29 June 2021)
[3]
Jayiya
v MEC for Welfare, Eastern Cape
Provincial
Government and Another
2004
(2) SA 611
(SCA) at para 18;
S
v Beyers
1968 (3) SA 70
(A) at 80A-B;
Butchart
v Butchart
1996 (2) SA 581
(W) at 586C;
Höltz
v Douglas & Associates
(OFS) CC en Andere
1991 (2) SA 797
(O) at 802;
S
v Baloyi
(Minister
of Justice and Another Intervening)
[1999] ZACC 19
;
2000 (2) SA 425
(CC) at para 22
[4]
See,
for example,
Comet
Products UK Ltd v Hawkex Plastics Ltd
[1971]
1 All ER 1141
(CA) at 1143
;
Hinch
and Macquarie Broadcasting Holdings Limited v Attorney-General for
the State of Victoria
[1987] HCA 56
;
(1987)
164 CLR 15
at 49; and
Videotron
Ltée v Industries Microlec Produits Électroniques
Inc
(1992)
96 DLR (4
th
)
376.
[5]
Dezius
v Dezius
2006
(6) SA 395
(T) at para 5.
[6]
Ansah
v Ansah
[1977]
2 All ER 638
(CA) at 643A-C.
[7]
Dezius
v Dezius
2006
(6) SA 395
(T) at para 5.
[8]
Paragraph
[110] of the judgment
[9]
Plascon-Evans
Paints Ltd v Van Riebeeck Paints (Pty)Ltd,
1984
(3) SA 623 (AD)
[10]
Id
at para 9.
[11]
Ansah
v Ansah
[1977]
2 All ER 638
(CA) at 643A-C.
[12]
Parekh
v Shah Jehan Cinemas (Pty) Ltd and Others
,
1980 (1) SA 301
(D) at 305 G-H;
Tahilram
v Trustees, Lukamber Trust and Another
,
2022 (2) SA 436
(SCA) paragraph [13]
[13]
1979
(4) SA 115
(D) at 131-132.
[14]
2010
(3) SA 410
(SCA) at para 5
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