Case Law[2022] ZAGPJHC 353South Africa
Essack and Another v Sun International South Africa (Pty) Ltd and Others (2020/23294) [2022] ZAGPJHC 353; 2022 (6) SA 221 (GJ) (24 May 2022)
High Court of South Africa (Gauteng Division, Johannesburg)
24 May 2022
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Essack and Another v Sun International South Africa (Pty) Ltd and Others (2020/23294) [2022] ZAGPJHC 353; 2022 (6) SA 221 (GJ) (24 May 2022)
Essack and Another v Sun International South Africa (Pty) Ltd and Others (2020/23294) [2022] ZAGPJHC 353; 2022 (6) SA 221 (GJ) (24 May 2022)
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sino date 24 May 2022
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
CASE
NO: 2020/23294
REPORTABLE:
NO
OF
INTEREST TO OTHER JUDGES: NO
REVISED
24
May 2022
In
the matter of:
SUHAIL
ESSACK
First
Plaintiff
NASEERA
CASSIM
Second
Plaintiff
And
SUN
INTERNATIONAL SOUTH AFRICA (PTY) LTD
First Defendant
NORTH
WEST GAMBLING BOARD
Second Defendant
NATIONAL
GAMBLING BOARD
Third Defendant
JUDGMENT
BESTER
AJ
[1]
The plaintiffs sue the first defendant for losses incurred by the
first
plaintiff gambling at Sun City, a casino owned by the first
defendant. The first defendant delivered an exception to the
particulars of claim.
# The claim
The claim
[2]
The plaintiffs plead that the first plaintiff is a businessman, who
is
married to the second plaintiff under Islamic rites. He was
designated as an excluded person for all gaming entities in Gauteng
and nationally, as from 6 November 2017. Although not
specifically pleaded, it appears from the notice attached to the
particulars
of claim that the exclusion was done at his own request,
in Gauteng. The first defendant operates a casino at Sun City, is a
licensee
in respect thereof, and is subject to the North West
Gambling Act, 2 of 2001.
[3]
As to the conduct complained of, the plaintiffs plead that the first
plaintiff
obtained free and unfettered access to the casino, remained
on the premises freely and unhindered, was permitted by the first
defendant
to “
use the second plaintiff’s card on the
basis that his own card was banned and/or despite knowing that he was
not the owner
of the card”
and allowed to “
draw
money
” on the card, was encouraged and permitted to gamble
by the first defendant, and lost the sum of R5.2 million.
[4]
On the basis on these allegations, the plaintiffs advance two causes
of
action, a claim relying on the breach of a statutory duty and
Aquilian liability.
[5]
For the statutory claim, the plaintiffs aver that the
National
Gambling Act 7 of 2004
, the North West Gambling Act 2 of 2001 and the
North West Gambling Regulations impose obligations on the part of the
first defendant
with “
the benefits flowing from the
non-observance of the duties imposed are for the benefit of the
plaintiffs alternatively the first
plaintiff
”. The only
provisions specifically pleaded are regulations 22(2) and 23 under
the North West Gambling Regulations. The ‘benefits’
are
not identified in the pleading.
[6]
Regulation 22 provides:
“
(1) An
excluded person who enters licenced premises from which he or she is
excluded or partakes in any gaming from which
he or she is excluded,
shall be guilty of an offence.
(2) A person
excluded from premises in another province shall not partake in
gambling activities in the Province.”
[7]
Regulation 23 imposes duties upon the licensee as follows:
“
(1)
Whenever an identified excluded person enters or attempts to enter or
is upon
licenced premises from which he or she is excluded, the
licensee and its agents or employees shall –
(a)request such excluded
person not to enter, or if on the premises, to immediately leave;
(b)notify the South
African Police Service to evict such person if such excluded person
fails to comply with the request of the
licensee, its agents or
employees; and
(c) notify the Board of
the presence of any excluded person on the licenced premises.
(2)
A licensee shall not knowingly allow an excluded person
to partake in
any gambling from which such person is excluded.”
[8]
The plaintiffs plead the following allegations regarding the first
defendant’s
alleged breach of statutory duties:
“
12.
The first defendant’s conduct … constituted a breach/es
of its statutory duty/duties and caused the
plaintiffs, alternatively
the first plaintiff to suffer damages in that:
a.
the plaintiff was an excluded person;
b.
the first defendant allowed the first plaintiff to enter upon and/or
to remain on its premises;
c.
the first defendant did not take the prescribed measures as
contemplated in the NWGR
[1]
to
refrain the first defendant from entering upon its premises or to
remove him therefrom;
d.
the first defendant facilitated the first plaintiff in gaming at its
premises; and
e.
the first defendant did not take any steps to prevent the first
plaintiff from gaming at its premises.”
[9]
In the alternative, the plaintiffs plead that the first defendant
“
owed the plaintiffs, alternatively the first plaintiff a
duty of care to ensure that the first plaintiff does not obtain
access
to the first defendant’s casino for purposes of engaging
in gambling activities.
” The plaintiffs plead that this
duty arises from the following facts:
“
16.1 By engaging
in the business of facilitating gaming and becoming a licensee, the
first defendant took on the obligation to ensure
that it conducts its
business responsibly and reasonably and in particular;
16.1.1. to
prevent an excluded person from entering or remaining on its
premises;
16.1.2. to
not facilitate or allow an excluded person to engage in gaming
activities; and
16.1.3. to
safeguard the use of the second plaintiff’s card by a third
party.
16.2
The plaintiffs aver that the first defendant was negligent in the
conduct of its business
in permitting or bringing about a situation
whereby the first plaintiff engaged in gambling activities at its
premises, and for
the reasons more fully set out in paragraph 8
above.
16.3
The first defendant knew or reasonably ought to have known that by
allowing the first plaintiff
access to and/or permitting him to
remain on the licenced premises and/or facilitating and/or permitting
him to engage in gaming,
the first plaintiff could suffer harm.
16.4
The first defendant knew or reasonably should have known that the
first plaintiff was not
the authorised holder of the second
plaintiff’s card and that the use of the second plaintiff’s
card by the first plaintiff
could result in harm to the second
plaintiff.
16.5
The first defendant was negligent in that it failed to take steps to
prevent the first
plaintiff from using the second plaintiff’s
card, alternatively the first defendant was grossly negligent in that
it facilitated
such use.
16.6
The first defendant was negligent in that it failed to take measures
to prevent the first
plaintiff from entering upon and/or remaining on
the licenced premises.
16.7
The first defendant was negligent in that it failed to prevent the
first plaintiff from
participating in gaming activities,
alternatively facilitated such gaming activities.
16.8
As a result of the aforesaid the first plaintiff suffered harm.”
# The exception
The exception
[10]
The first defendant advanced four grounds of exception. It
contends that the particulars
of claim do not disclose a cause of
action based on regulations 22 and 23 of the North West Gambling
Regulations, or otherwise
in terms of the
National Gambling Act, the
North West Gambling Act or the North West Gambling Regulations.
The plaintiffs’ failure to refer to any specific provisions
in
the National Act or the North West Act gave rise to a separate
ground, namely that the particulars of claim are vague and
embarrassing.
[11]
The first defendant also contends that the particulars of claim do
not disclose a cause
of action under the
Lex Aquilia
on the
basis that the facts pleaded do not give rise to a common law duty on
the part of the first defendant to the plaintiffs.
As a result,
it argues, the particulars of claim lack the necessary averment that
the first defendant’s conduct towards the
first plaintiff was
wrongful.
[12]
Lastly, the first defendant contends that the particulars of claim do
not disclose a cause
of action in favour of the second plaintiff at
all. Ms Bismilla, for the plaintiffs, indicated that the second
plaintiff does not
rely on regulation 23, and that her Aquilian claim
is limited to an alleged duty on the part of the first defendant to
have safeguarded
the second plaintiff’s ‘card’
against abuse by the first defendant. The first plaintiff does
not rely on
the allegations regarding the card for his claims. Ms
Bismilla conceded, correctly in my view, that insufficient
allegations have
been made to establish a claim in favour of the
second plaintiff. The fourth ground of exception was thus conceded.
[13]
In
Pretorius
the Constitutional Court summarised the
principles pertaining to exceptions:
“
In deciding an
exception a court must accept all allegations of facts made in the
particulars of claim as true; may not have regard
to any other
extraneous facts or documents; and may uphold the exception to the
pleading only when the excipient has satisfied
the court that the
cause of action or conclusion of law in the pleading cannot be
supported on every interpretation that can be
put on the facts.
The purpose of an exception is to protect litigants against claims
that are bad in law or against an embarrassment
which is so serious
as to merit the costs even of an exception. It is a useful
procedural tool to weed out bad claims at
an early stage, but an
overly technical approach must be avoided.”
[2]
# The statutory claim
The statutory claim
[14]
The particulars of claim identify only regulations 22 and 23. The
relevance of regulation
22 is clear – it provides that the
first plaintiff, who was listed as an excluded person in Gauteng, is
also an excluded
person in the North West Province. The duties
relied upon by the plaintiffs, are those contained in regulation 23,
and Ms
Bismilla’s argument on behalf of the plaintiffs was
appropriately limited to reliance thereon.
[15]
Although
the plaintiffs need not necessarily specify a statutory provision, it
must be clear from the pleading that a particular
provision is
relevant and operative.
[3]
The
plaintiffs do not identify any provisions in the
National Gambling
Act or
the North West Gambling Act, and the only reasonable reading
of the particulars of claim is that the statutory claim is limited
to
reliance on regulations 22 and 23, with the statutes referred to
forming part of the legislative framework within which the
regulations find application. In the circumstances I do not agree
with the first defendant that the pleading is vague and
embarrassing.
[4]
[16]
In
Olitzki
the Supreme Court of Appeal explained the place of
statutory provisions in damages claims as follows:
“
Where the legal
duty the plaintiff invokes derives from breach of a statutory
provision .... The focal question remains one of statutory
interpretation, since the statute may on a proper construction by
implication itself confer right of action, or alternatively provide
the basis for inferring that a legal duty exists at common law.
The process in either case requires a consideration of the
statute as
a whole, its objects and provisions, the circumstances in which it
was enacted, and the kind of mischief it was designed
to prevent.
But where a common-law duty is at issue, the answer now depends less
on the application of formulaic approaches
to statutory construction
than on a broad assessment by the Court whether it is ‘just and
reasonable’ that a civil
claim for damages should be accorded.
‘The conduct is wrongful, not because of the breach of the
statutory duty per
se, but because it is reasonable in the
circumstances to compensate the plaintiff for the infringement of his
legal right’.
The determination of reasonableness here in
turn depends on whether affording the plaintiff a remedy is congruent
with the court’s
appreciation of the sense of justice of the
community. This appreciation must unavoidably include the
application of broad
considerations of public policy determined also
in the light of the Constitution and the impact upon them that the
grant or refusal
of the remedy the plaintiff seeks will entail.”
[5]
[17]
Gambling in South Africa is regulated at both national and provincial
level, it being an
area of concurrent legislative competence in terms
of Schedule 4 to the Constitution. The
National Gambling Act
provides
the overarching framework for the regulation of gambling,
including establishing uniform rules and standards and national
regulatory
institutions, whilst much of the detail is addressed in
provincial legislation, which also allows for the establishment of
provincial
institutions.
[18]
The
National Gambling Act, in
its preamble, as follows:
“
It is desirable to
establish a certain uniform rules and standards, which will safeguard
people participating in gambling and their
communities against the
adverse effect of gambling, applying generally throughout the
Republic with regard to casinos, racing,
gambling and wagering, so
that –
*gambling activities are
effectively regulated, licenced, controlled and policed;
*members of the public
who participate in any licenced gambling activity are protected;
*society and the economy
are protected against over-stimulation of the latent demand for
gambling; and
*the licensing of
gambling activities is transparent, fair and equitable;”
[19]
Section 14
of the
National Gambling Act deals
with excluded persons.
Sub-sections (1) to (6) provide for persons to register themselves
for exclusion from gambling activities,
and for circumscribed
interested parties to apply to a competent court for a person’s
exclusion.
[20]
Section 14(7)
requires the National Gambling Board to establish and
maintain a national register of excluded persons, and to make the
information
in the register continuously available to each provincial
licensing authority and every person who is licensed to make a
gambling
activity available to the public.
[21]
Subsections (10) and (11) sets out the duties of gambling licensees
in respect of taking
steps to prevent excluded persons to participate
in gambling.
[22]
Item 7 of the Schedule of Transitional Provisions to the
National
Gambling Act provides
that, despite the coming into operation of
section 14
, sub-sections (1) to (6) remain inoperative until a day
declared by the responsible Minister by notice in the Gazette, after
the
National Gambling Board has established the National Register of
excluded persons required by
section 14(7).
It also provides
that sub-sections (10) to (12) remain inoperative with respect to any
gambling activity other than the use
of limited pay out machines,
until the date declared by the responsible Minister. The Minister has
not yet published notice of
this date.
[23]
Sun City is in the North West Province, where gambling is regulated
at provincial level
by the North West Gambling Act 2 of 2001. The
preamble to the Act recognises, amongst others: -
“
AND WHEREAS it is
recognised that public confidence and trust and the health, safety,
general welfare and good order of inhabitants
of the Province are
dependent upon the strict regulation of all persons, premises,
practices, associations and activities relating
to gambling.”
[24]
This Act
does not contain provisions similar to those contained in the
National Act regarding prohibited persons. However, Chapter
4 of the
North West Gambling Regulations
[6]
deals with excluded persons. Regulation 16 empowers the North
West Gambling Board to establish a list of persons to be excluded
from premises licenced under the Act and the regulations and provides
the criteria to be applied for inclusion on that list.
This
includes self-exclusion. Various provisions, set out in
Regulations 17 to 21, seek to give effect to the need to ensure
publicity and fairness in the exclusion process.
[25]
Regulation 22 prohibits a person excluded in another province (such
as the first plaintiff)
from partaking in gambling activities in the
North West Province.
[26]
Regulation 23 imposes a duty upon a licensee to not knowingly allow
an excluded person
to partake in any gaming from which such person is
excluded. It also must request an excluded person not to enter,
or if
on the premises, to immediately leave, it must notify the South
African Police Service to evict such a person if he fails to comply
with the request, and it must notify the Provincial Gambling Board of
the person’s presence on the licensed premises.
[27]
The statutory regime overseeing gambling activities has, as one of
its functions, the protection
of participants in gambling activities
and protecting their communities against the adverse effects thereof.
[28]
Regulation 22(1) stipulates that it is an offence for an excluded
person to enter licenced
premises and to partake in any gaming from
which he is excluded. Mr Friedman, appearing for the first defendant,
submitted that,
as the regulation does not make it an offence to not
adhere to regulation 23, this is indicative that the legislation does
not
impose a duty on the first defendant. However, this
loses sight of section 82(1)(i) of the North West Gambling Act,
which
stipulates that a person who contravenes or fails to comply with any
provision of the Act or any regulation made under section
84 is
guilty of an offence.
[29]
In my view, the significance of the transgressions being offences is
rather that they indicate
that the obligations of both the excluded
person and the licensee are owed to Society, which the legislation
seeks to protect,
through the State. Thus, the licensee must
notify the South African Police Service if a person refuses to leave
licenced
premises and notify the Provincial Gambling Board of the
presence of an excluded person on the licenced premises.
[30]
In
Junmao
[7]
Blieden J considered an exception to a similar claim under the
Gauteng Gambling Act 4 of 1995 and regulations, which are identical
to the North West regulations considered here. He concluded
that the duties imposed by the regulations upon the licensee
are not
to assist a compulsive gambler who requested to be evicted, but a
duty to the Province or State, through the Gambling Board.
[8]
My conclusion that the duties are for the benefit of the Community
seems to me to be in line with this conclusion. The regulatory
framework establishes institutions to protect the interests of the
Community.
[31]
Sight should not be lost of the fact that the first plaintiff is the
author of his own
misfortune. Having voluntarily placed himself
on the list of people excluded from gambling, he nonetheless went to
the Sun
City Casino and, on his own version, lost a substantial
amount of money.
[32]
The
plaintiffs’ proposition implies that a compulsive gambler may
retain his winnings when transgressing the regulations but
hold the
licensee of the gambling establishment liable for his losses. Such a
lopsided approach does not serve the purpose of the
provision, and is
not in the public interest.
[9]
[33]
In my view, the regulations, considered as a whole and in the context
of the regulation
of gambling overall, do not provide that the first
plaintiff should be afforded a civil remedy where a licensee such as
the first
defendant does not adhere to the prescripts of regulation
23.
[34]
There is a further reason why the claim does not withstand scrutiny
at the exception stage.
The plaintiffs do not rely on knowledge of
the first plaintiff’s identity on the part of the first
defendant. This
cannot be a requirement, they submit, because
any licensee could simply evade its responsibilities by choosing not
to identify
patrons and rely on their lack of knowledge as a
defence. However, as the first defendant points out, regulation
23 expressly
prohibits a licensee from not
knowingly
allowing
an excluded person to partake in any gambling.
[35]
It follows that the allegations contained in the particulars of claim
are not sufficient
to establish a claim based on a breach of a
statutory duty contained in the North West Gambling Regulations. In
the result,
the first defendant’s exception that the
particulars of claim do not disclose a cause of action on the basis
of the breach
of a statutory claim, must be upheld.
# The Aquilian claim
The Aquilian claim
[36]
The first
principle of the law of delict is that everyone must bear the loss he
or she suffers, and
Aquilian
liability
provides for an exception to the rule.
[10]
An act or omission causing pure economic loss, such as is claimed by
the plaintiffs, is also not
prima
facie
wrongful.
[11]
This accords
with the central constitutional values of freedom and dignity. As
Ngcobo J remarked in
Barkhuizen
,
albeit in the context of contractual freedom, “
Self-autonomy,
or the ability to regulate one’s own affairs, even to one’s
own detriment, is the very essence of freedom
and a vital part of
dignity”.
[12]
[37]
In
Steenkamp N.O.
the Constitutional Court considered the
following as relevant factors to be considered when determining
wrongfulness:
“
Our courts …
and courts in other common-law jurisdictions readily recognise that
factors that go to wrongfulness would include
whether the operative
statute anticipates, directly or by inference, compensation of
damages for the aggrieved party; whether there
are alternative
remedies such as an interdict, the review or appeal; whether the
object of the statutory scheme is mainly to protect
individuals or
advance public good; whether the statutory power conferred grants the
public functionary a discretion in decision
making; whether an
imposition of liability for damages is likely to have a ‘chilling
effect’ on performance of administrative
or statutory function;
whether the party bearing the loss is the author of its misfortune;
whether the harm that ensued was foreseeable.
It should be kept
in mind that in the determination of wrongfulness, foreseeability of
harm, although ordinarily a standard for
negligence, is not
irrelevant. The ultimate question is whether on a conspectus of
all relevant facts and considerations,
public policy and public
interest favour holding the conduct unlawful and susceptible to a
remedy in damages.”
[13]
[38]
Junmao
[14]
concluded that an excluded person does not have a common law
delictual claim flowing from the equivalent Gauteng statutory
provisions.
The plaintiffs accepted in argument that this was
the status of the law in 2004. They argued, however, that it
should be
re-evaluated because there has been a change in the
boni
mores
of society, and that current legal convictions favour a delictual
claim in these circumstances.
[39]
They were,
however, unable to point to any South African cases or academic
articles in support of this contention. They relied
on a 2010
report by the Gambling Review Commission
[15]
as illustrating that provisions regarding the exclusion of persons
from gambling are for their personal protection. Significantly,
however, the portion referred to, appears in the section under the
heading “The social impact of gambling”, and merely
states, with reference to the
National Gambling Act, that
it contains
a range of measures to protect the vulnerable and minimise the
potential negative socio-economic impact of gambling.
It takes
the matter no further than what we have seen from the preamble of
that Act, which commenced in 2004.
[40]
The first
defendant pointed to the foreign cases supporting the conclusions
reached in
Junmao
,
referred to in that judgment, as showing that in common law
jurisdictions, such claims are not recognised. The Court
referred
to
Merrill
v Trump Indiana
[16]
,
a case from the United States Court of Appeals for the Seventh
Circuit. The plaintiff requested to be placed on an exclusion
list, but the casino failed to do so, whereafter he gambled and
suffered losses. The court concluded that the casino should
not
be held responsible for the destructive effects of his relapse into
gambling.
[41]
The next
case considered was
Reynolds
v Katoomba
[17]
,
a judgment in the Court of Appeal of the Supreme Court of New South
Wales. The plaintiff claimed damages on the basis that
the club
knew that he was a gambling addict and that it failed to take
adequate steps to stop or discourage him from gambling,
after having
undertaken and agreed to ensure that he does not continue to gamble.
The Court rejected his argument that the
club owed him a duty of
care. The Court referred to
Reeves
v Commissioner of Police
[18]
where Lord Hoffmann said:
“…
there is
a difference between protecting people against harm caused to them by
third parties and protecting them against harm which
they inflict
upon themselves. It reflects the individualist philosophy of
the common law. People of full age and sound
understanding must
look after themselves and take responsibility for their actions.
This philosophy expresses itself in the
fact that duties to safeguard
from harm deliberately caused by others are unusual and a duty to
protect a person of full understanding
from causing harm to himself
is very rare indeed.”
[42]
The plaintiffs however contend that, in the light of developments in
foreign jurisprudence,
the conclusion reached in
Junmao
that
no cause of action under the common law exists on these facts, should
be reconsidered. They accepted that all the cases
relied upon
are distinguishable on the facts. They submitted, however, that
the approaches followed in these cases are relevant,
and should sway
this Court to conclude that the common law should be developed to
recognise a claim in the current circumstances.
The first defendant,
on the other hand, pointed out that the facts of these cases are
critically important if they are to be of
any value to this Court.
[43]
In
Paton
Estate v Ontario Lottery and Gaming Corporation
[19]
the Ontario Court of Appeal stated that “
more
may be expected when an individual is obviously addicted to gambling
and out of control
”.
However, such a broad statement is of little if any value in
considering this exception. Regulation 23 already
stipulates
what is expected of the licensee. The question is whether a
failure to adhere to those requirements establishes
wrongfulness for
purposes of a delictual claim, which the reference to the statement
does not address.
[44]
In
Calvert
v William Hill Credit Limited
[20]
,
bookmakers introduced a voluntary arrangement for self-exclusion by
the closure of accounts. The plaintiff followed the
system but
for procedural failures was able to continue gambling, following
which he lost a substantial amount of money.
The court rejected
his argument that there was a duty of care on the bookmakers to
prevent or mitigate the consequences of his
self-inflicted harm in
those circumstances. On appeal, he argued for a specific duty
arising from particular undertakings
given to him that would not
allow him to make a telephonic bet. This was not adhered to.
The Appeal Court, for procedural
reasons, was willing to accept the
finding of the court of first instance that on the special facts of
the case there was a duty
to implement the assurances but did not
determine the point. The appeal ultimately failed on a
causation point. This
case is thus not of assistance to the
plaintiffs.
[45]
Dennis v
Ontario Lottery and Gaming Corporation
[21]
concerned a request to certify a class action under section 5(1) of
the Class Proceedings Act, 1992, which sets out requirements
to be
fulfilled in order for a class to be certified. One of those
requirements is that the pleadings must disclose a cause
of action.
However, the relevant statutory provision set a very low bar, and a
claim would only fail at the certification
stage if it is plain and
obvious that it cannot succeed. Contrary to the South African
approach, Canadian law adopts a principle
that novel claims should
almost never be excluded at the exception phase.
[22]
The application was dismissed on the basis that a class action was
not appropriate as individualised inquiries were needed
into the
nature, degree and consequences of each proposed class member’s
gambling propensity.
[46]
The passage
relied upon by the plaintiff appears in the judgment in the context
of the appropriateness of a class action, and lists
factors to be
considered in individualised claims. It seems to me a different
inquiry from whether a cause of action is disclosed.
Neither
the court of first instance, nor the Appeal Courts were willing to
recognise a general duty of care by the Ontario Lottery
and Gaming
Corporation to self-excluded gamblers. At best, the court was
willing to accept that the plaintiffs might succeed
but there were
“
many
significant legal hurdles for the appellants to overcome in making
out a claim, in particular, the exclusion of liability clause
and the
release in the self-exclusion form as well as the difficult issue of
proximity and duty of care and negligence.”
[23]
The case does not assist the plaintiffs either.
[47]
In
Ross
v British Columbia Lottery Corporation
[24]
the plaintiff brought an unjustified enrichment claim based on the
notion that her gambling contracts with the casinos were
unenforceable
because she was self-excluded at the time of her
gambling. She also brought a negligent misstatement claim.
This, it
seems, was based on an alleged promise by casino employees
that the plaintiff would be ejected from the casino if she tried to
gamble and suffer a loss, and that this promise turned out to be
untrue. Neither of these two causes of actions are of
assistance
in the current matter.
[48]
The plaintiff also brought a negligence claim which was rejected by
the court. It
held that the defence did not owe her a duty of
care to prevent gambling losses, although they did have a duty to
introduce and
implement a self-exclusion programme. The
programme had as one of its core components the requirement that the
problem gambler
had a primary obligation to control her gambling by
enrolling in the programme. Again, I find no support in this
case for
the plaintiffs’ contention that there are developments
in other jurisdictions suggesting that a change in South African
convictions
of the community have taken place over the past 17
years.
[49]
Burrell
v Metropolitan Entertainment Group
[25]
was considered at the exception stage, on the assumption that the
pleaded facts would be established at trial, similar to the approach
followed in our courts. This claim was also in the context of a
self-exclusion programme. The relevant regulations
made it an
offence both for an excluded person to enter and gamble at a casino
and for the casino to allow the excluded person
to gamble. The
Court saw this as evidence of a regulatory scheme in which there were
reciprocal obligations on both the problem
gambler and the casino to
protect the gambler from himself. The court acknowledged a
starting point of the enquiry as personal
autonomy but concluded that
the legislature had struck a rational balance between the personal
autonomy of gamblers and the duties
of the licensee, which included
the promotion of gambling, so that it would be inappropriate to
acknowledge a delictual duty of
care on top of this structure.
The Court found that it could not be entertained that a problem
gambler may “
test
the tables and keep his winnings, if any, but recover any deficit in
a tort claim akin to gambling loss insurance.”
[26]
If anything, this case, of which, of all the foreign cases referred
to, is the closest to the current matter of the facts
and the
legislation, speaks against the plaintiffs and is very much in line
with the exception raised by the first defendant.
[50]
Sinclair
v New Zealand Racing Board
[27]
involved a claim brought by the victim of problem gambling –
the plaintiff was defrauded by a problem gambler who enticed
her
through a romantic relationship to lend him large sums of money to
fuel his gambling. The court upheld the objection
to the claim
on the basis that the plaintiff was not part of an identifiable class
to whom the defendants could be said to owe
a duty of care, which
would imply an extensive duty of indeterminate liability.
[51]
I conclude that none of the foreign decisions relied upon by the
plaintiffs support their
proposition that there has been a shift in
the
boni mores
in common law jurisdictions in favour of
recognizing a claim as pleaded by the plaintiffs. There is thus no
support for the proposition
that this Court should conclude that the
boni mores
of our society has shifted in favour of recognising
a claim such as that proposed by the first plaintiff.
[52]
I am satisfied that the legal position as stated in
Junmao
is
still a correct statement of the legal convictions of the community.
The first plaintiff has also for the alternative claim
not pleaded
sufficient allegations to sustain a cause of action against the first
defendant.
# Conclusion
Conclusion
[53]
For the above reasons I conclude that the particulars of claim do not
disclose a cause
of action against the first defendant. The exception
was conceded in respect of the second defendant. The exception should
thus
be upheld, with costs. This should include the costs occasioned
by the delivery of additional submissions after the hearing.
[54]
An earlier exception was met with an amendment that gave rise to the
particulars of claim
in their current form. The first defendant,
correctly in my view, seeks the costs of the previous exception,
including the preparation
of heads of argument in respect hereof.
[55]
In the circumstances I make the following order:
1)
The first defendant’s exception to the plaintiffs’
amended particulars of claim is
upheld with costs, including the
costs of the additional submissions.
2)
The plaintiffs are liable for the first defendant’s wasted
costs in respect of its first
exception dated 14 December 2020 and
the preparation of the heads of argument in respect thereof filed on
10 February 2021.
3)
The plaintiffs are granted leave to amend their particulars of claim
by notice of amendment given
within 20 days from the date of this
order.
4)
If the plaintiffs fail to give such notice of amendment their claim
is dismissed with costs.
A
Bester
Acting
Judge of the High Court of South Africa
Gauteng
Local Division, Johannesburg
Heard:
22 November 2021
Judgment:
24 May 2022
Counsel
for the Plaintiffs:
Adv S Bismilla
Instructed
by:
Hajibey-Bhyat Inc
Counsel
for the First Excipient:
Adv A Friedman
Instructed
by:
Herbert Smith Free Hills South Africa
Attorneys
Inc
[1]
North West Gambling Regulations.
[2]
Pretorius
and Another v Transport Pension Fund and Others
2019 (2) SA 37
(CC) in [15]. Footnotes have been omitted.
[3]
Bato
Star Fishing (Pty) Ltd v Minister of Environmental Affairs and
Tourism and Others
[2004] ZACC 15
;
2004
(4) SA 490
(CC) in [27].
[4]
See
Jowell
v Bramwell-Jones and Others
1998
(1) SA 836
(W) at 899B/C – 900A on the approach to an
exception that a pleading is vague and embarrassing.
[5]
Olitzki
Property Holdings v State Tender Board and Another
2001 (3) SA 1247
(SCA) in [12]. Footnotes omitted. The passage was
endorsed in
BE
obo JE v MEC for Social Development, Western Cape
2022 (1) SA 1
(CC) in [11].
[6]
North-West
Gambling Regulations, 2002 published under GN353 of 2002 in pg5823
of 25 November 2002, as amended.
[7]
Junmao
v Akani-Egoli (Pty) Ltd t/a Gold Reef City Casino and Theme Park
2004 JER 0665 (W).
[8]
Junmao
supra
at p 16.
[9]
See
Cool
Ideas v Hubbard
2014 (4) SA 474
(CC) in [28
]:
“
A fundamental
tenet of statutory interpretation is that the words in a Statute
must be given their ordinary grammatical meaning,
unless to do so
would result in an absurdity. There are three important
interrelated riders to this general principle,
namely:
[a]
that statutory provisions should always be interpreted purposively;
[b] the
relevant statutory provision must be properly contextualised; and
[c]
all statutes must be construed consistently with the constitution,
that is, where reasonably possible, legislative
provisions ought to
be interpreted to preserve their constitutional validity. This
proviso to the general principle is
closely related to the purpose
of approach referred to in [a].”
[10]
Telematrix
(Pty) Ltd t/a Matrix Vehicle Tracking v Advertising Standards
Authority SA
2006 (1) SA 461
(SCA) in [12].
[11]
Telematrix
supra
in [13].
[12]
Barkhuizen
v Napier
[2007] ZACC 5
;
2007
(5) SA 323
(CC) in [57].
[13]
Steenkamp
N.O. v Provincial Tender Board, Eastern Cape
2007
(3) SA 121
(CC) in [42]. Footnotes omitted.
[14]
Junmao
supra.
[15]
Review
of the South African Industry and its Regulation,
a
report prepared by the Gambling Review Commission, September 2010.
[16]
Merrill
v Trump Indiana Inc.
[2003] USCA7 91
;
320 F.3d 729
; 2003 US App Lexis 3507; 7 Gaming Law Review 305.
[17]
Reynolds
v Katoomba RSL All Services Club Ltd
[2001] NSWCA 234.
[18]
Reeves
v Commissioner of Police of the Metropolis
[2001] 1 AC 360
at 368C-D.
[19]
Paton
Estate v Ontario Lottery and Gaming Corporation (Fallsview Casino
Resort and OLG Casino Brantford
)
2016 ONCA 458
[Paton Estate C], Rev’g
2015 ONSC 3130
[Paton
Estate SC].
[20]
Calvert
v William Hill Credit Limited
[2005] NSWSC 1223.
[21]
Dennis
v Ontario Lottery and Gaming Corporation
2013 ONCA 501.
Aff’g
2011 ONSC 7024
(Div Ct), Aff’g 2010
ONSC 1332.
[22]
Dennis
(Appeal Court)
at para 73.
[23]
Dennis
(Court of Appeal
at para 73.
[24]
Ross v
British Columbia Lottery Corporation
2014 BCSC 320.
[25]
Burrell
v Metropolitan Entertainment Group
2011 NSCA 108.
[26]
In
[43].
[27]
Sinclair
v New Zealand Racing Board
[2015] NZHC 2067.
sino noindex
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