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Supreme Court of Appeal of South Africa

The Supreme Court of Appeal is, except in respect of certain labour and competition matters, the second highest court in South Africa. In terms of the Constitution, it is purely an appeal court and may decide only appeals and issues connected with appeals. (Banner image by Ben Bezuidenhout).
Physical address
Cnr Mirriam Makeba & President Brand Streets, Bloemfontein, Free State, 9301
111 judgments
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111 judgments
Citation
Judgment date
November 2000
Reported
Repeal did not defeat an accrued right to seek the Board’s recommendation under s 12(2)(c) of the Interpretation Act.
Customs and excise – rebate scheme – repeal of enabling note – whether right to approach advisory Board for recommendation survived repeal under s 12(2)(c) Interpretation Act – distinction between accrued, acquired and conditional rights – repeal not to affect accrued/acquired rights.
30 November 2000
Reported
Objective test: termination letters can constitute repudiation and third‑party communication may suffice as acceptance.
Anticipatory breach/repudiation – objective test; letters terminating distributorship construed in context may amount to repudiation; innocent party’s election to cancel may be manifested by conduct and communicated by third party; communication of election must come to repudiator’s attention but need not be personally transmitted by innocent party; later breaches by either party do not necessarily extinguish rival causes of action for damages.
30 November 2000
Reported
Manager’s temporary participations are secured loans, not trading stock, and incoming funds are held as agent, not taxable proceeds.
Income tax – definition of "trading stock" – participations in participation bonds held by manager are secured loans, not stock held for sale or exchange – Participation Bonds Act confirms agency/loan character – receipts from incoming participants held on behalf, not gross income – s 22 diminution claim based on interest paid in advance rejected.
30 November 2000
Reported
Engineer breached supervisory duties and contractor liable for nominated sub‑contractor; both independently liable for overlapping damages.
Construction contract – Identity of contractor – contractual interpretation and surrounding circumstances; Prescription – knowledge of identity of debtor and s 12(3) Prescription Act; Cession – scope of 'debts' in sale of business and effectiveness of subsequent cession; Nominated sub‑contractors (clause 61) – liability of contractor for nominated sub‑contractor; Professional services – scope of engineer’s supervisory duty to inspect materials and workmanship; Concurrent liability – plaintiff may sue contractor and supervising engineer for overlapping damage; Deduction of retention monies from awards.
30 November 2000
Reported
Whether estate duty payable by the executor is included in the s 4(q) deduction — court held it is excluded.
Estate duty – s 4(q) deduction – meaning of "accrues to" – whether estate duty payable by executor is included in deduction – entitlement under law of succession – role of long‑standing administrative practice in construing fiscal statutes.
29 November 2000
Reported
The Speaker can bind the legislature to pay legal costs for a s98(9) Constitutional Court referral; such undertaking is enforceable.
Constitutional law – s 98(9) interim Constitution – Speaker’s power to refer disputes to Constitutional Court – petitioners acting qua members of legislature. Administrative/constitutional finance – Speaker’s authority to bind legislature to pay legal costs incurred in resolving constitutionality disputes as part of legislative administration. Civil procedure – undertaking by public official – enforceability and consequences of repudiation; taxation of costs and recovery from legislature without formal notice to non‑party
29 November 2000
Reported
Whether a member’s resignation took effect earlier by agreement; court held the parties agreed early termination.
Cooperatives — membership resignation under statute (art 33(1)) — interpretation of resignation letter — agreement to accelerate statutory effective date — acceptance by council, payment and banking of cheque as evidence of consensus — continuous membership for distribution purposes.
29 November 2000
Reported
Applicants failed to establish reasonable grounds for apprehended bias by tribunal members; appeal dismissed with costs.
Industrial tribunal review – alleged bias – onus on applicant to establish actual or apprehended bias – reasonable suspicion test – necessity of record of proceedings for review – effect of respondent’s denial where allegations lack particularity.
29 November 2000
Reported
Fraudulent misrepresentation must be shown to have causally produced patrimonial loss; mere misdescription of contracting party was insufficient.
Delict — Fraudulent misrepresentation — Causation — Claimant must prove that misrepresentation influenced its decision and caused patrimonial loss; Misdescription of contracting party — Materiality and reliance; Damages — Quantum must reflect actual patrimonial loss, not enable unjust enrichment where contract was performed; Civil procedure — Absolution from the instance where causation and damage not proved.
29 November 2000
Reported
Affidavit allegation in litigation was not relevant for qualified privilege; trustees' employer held vicariously liable; R30,000 awarded.
Defamation — publication in affidavit during litigation — qualified privilege — relevance tested objectively — whether defamatory matter reasonably necessary to occasion Relevance — not coextensive with evidential relevance; value judgment by reason and common sense; speculative allegations lack relevance. Vicarious liability — director/trustee acting in insolvency matters — payments of trustee's fees to firm, provision of infrastructure and absence of contrary evidence ground prima facie liability Quantum — limited publication but permanent court record; award assessed on facts; R30,000 awarded
29 November 2000
Reported
Attachment to found jurisdiction fails where applicant does not plead fraud or collusion to overcome s 2 exclusion for court-ordered dispositions.
Insolvency — dispositions made in compliance with court order — s 2 exclusion — consent orders ordinarily qualify as orders — to set aside court-ordered dispositions applicant must allege and prima facie establish fraud, collusion or other improper conduct — attachment ad fundandam/confirmandam jurisdictionem requires proper pleading of cause of action.
28 November 2000
Reported
Employer not vicariously liable for employee’s deliberate forgery where acts were outside scope and no ostensible authority.
Delict and vicarious liability – employee fraud – requirement that wrongful act be committed in course of employment to impose employer liability. Scope of authority – actual, implied and ostensible authority – absence of employer representation to third parties precludes ostensible authority Evidence – reliance by victim on third‑party communications and bank reputation, not on employer’s manifestations of authority. Public policy – fairness considerations insufficient to make employer insurer for deliberate unauthorised fraud by employee
28 November 2000
Reported
A settlement reached by parties' attorneys is binding where the opposing party reasonably relied on the attorney's ostensible authority despite internal error.
Civil procedure — Compromise/settlement agreements — Enforceability of attorney-negotiated settlements — Ostensible/apparent authority of instructed attorney; Contract law — Unilateral mistake — Narrow scope to rescind where other party not misled; Public bodies — Status does not permit avoidance of lawfully concluded contracts.
28 November 2000
Reported
Res judicata and the "once and for all" rule do not bar a later damages claim where the earlier suit sought restitution.
Civil procedure – exceptio rei judicatae – requirements: idem actor, idem reus, eadem res, eadem causa petendi; comparison of entire claims required "Once and for all" rule – scope and limits; does not automatically require restitution and damages to be claimed in one action where remedies differ Contract – restitution (repayment) distinguished from damages Conventional Penalties Act – forfeiture clauses as penalties may bar subsequent damages claims (distinguishable cases)
28 November 2000
A court may order a lump sum for household necessaries as part of a just maintenance award under section 7(2).
Family law – Divorce Act s 7(2) – maintenance – scope of "maintenance" post-divorce – whether lump-sum awards for household necessaries may form part of maintenance; discretion of court to make just orders considering parties' means; distinction from s 7(3) redistribution where antenuptial accrual exclusions apply.
28 November 2000
Reported
Proclamation authorised liquidators to sue without creditors’ resolution; court properly exercised discretion to wind up insolvent company.
Company law – Liquidation – Authority of liquidators of a statutory corporation dissolved by proclamation – Annexure empowering liquidators to institute legal proceedings without creditors’ resolution or Master’s directions – generalia specialibus non derogant. Company law – Winding-up discretion – Suspension of business, insolvency under ss 344 and 345, and just and equitable grounds. Civil procedure – Alleged abuse of process and mala fides in timing of liquidation application; adequacy of explanations for delays. Effect of counterclaim on liquidation – Counterclaim insufficient to prevent winding-up where insolvency persists
28 November 2000
Reported
Appellant liable for failing to close hazardous mountain road during foreseeable landslide risk despite warning signs.
Delict — municipal/local authority liability for road safety; duty to take reasonable precautions; adequacy of warning signs; obligation to close hazardous road in foreseeable dangerous weather; negligence for administrative failure to appoint qualified decision-maker and use available weather/records.
27 November 2000
Reported
Sales of manufacturer‑used lease and promotional vehicles were capital disposals, not taxable revenue.
Tax law – capital versus revenue – disposal of assets manufactured for a taxpayer’s own use – effect of taxpayer’s intention, manner of realization and accounting treatment Tax law – lease and promotional schemes – employee benefit v. profit‑making scheme – receipts from disposal of earmarked vehicles as capital Tax law – regularity and extent of sales not determinative of revenue character
24 November 2000
Reported
Prescription begins once a creditor knows the basic facts and debtor’s identity, not only when full evidence to prove the claim exists.
Prescription – s 12(3) Prescription Act 18 of 1943 – commencement when creditor knows basic facts giving rise to debt and identity of debtor, not when creditor can finally prove entire case; collecting banker liability; demand letters and knowledge.
24 November 2000
Reported
Suicide by a person whose brain injury impaired judgment does not break the causal link to the negligent injury.
Delict — Causation — Suicide by person with impaired mind — Whether suicide constitutes novus actus interveniens — Brain injury and depression as causal link — Flexible approach to legal causation (factual causation and juridical inquiry) — Foreseeability and impaired volition.
24 November 2000
Reported
A Master may not use s414(2) to subpoena witnesses to pursue investors' delictual claims unrelated to the company's affairs.
Companies Act s 414(2) – Master’s power to subpoena and interrogate – limited to matters concerning the company or its affairs – cannot be used to pursue investors' delictual claims; s 424 – requisites for personal liability: carrying on the company’s business and requisite knowledge – brokers pursuing their own business and employer vicarious liability do not satisfy s 424; review under s 151 Insolvency Act – court may reconsider afresh where Master acted beyond competence.
22 November 2000
Reported
Long custodial sentences for juveniles set aside where no pre-sentencing probation/social reports were obtained.
Criminal law – Sentencing of juveniles – Pre-sentencing reports (probation officers/social workers/psychologists) required before custodial sentence – Trial court’s duty to obtain necessary reports – Failure to obtain reports vitiates sentence and warrants referral for re-sentencing.
21 November 2000
Reported
Financial assistance given only after conversion avoids s 38; substance, not form, determines liability.
Company law – s 38(1) Companies Act – prohibition on company giving financial assistance for purchase of its shares – substance over form; simulated transactions – conversion into close corporation – financial assistance given after conversion not within s 38(1) – purpose of s 38 to protect creditors – election to cancel requires clear and unequivocal notice.
10 November 2000
Reported
An unsuccessful tenderer is entitled to written reasons when the tender process constitutes administrative action under section 33.
Administrative law – procurement/tenders – invitation, consideration and award of tenders by a state-controlled company as administrative action – right to be furnished with written reasons under section 33(1)-(2) of the Constitution – public power/function test – waiver of constitutional rights and section 36 limitation – section 217 (procurement) considered but not decided.
9 November 2000
October 2000
Reported
No legal duty on police or prosecutors to detain or re‑arrest the accused; appeal dismissed with costs.
Delict — omissions: legal duty assessed by reasonableness and policy considerations; Prosecutorial discretion on bail — no absolute duty to oppose; Requirement of a special relationship between State actor and individual for liability; Relevance of psychiatric report and constitutional bail context to reasonableness; Absolutio from the instance upheld; appeal dismissed.
2 October 2000
September 2000
Reported
The respondent is not vicariously liable for its employee’s theft; the applicant bank remained liable for negligent collection.
Vicarious liability – theft by employee – application of subjective/objective two-tier test; employee on a "frolic of his own" is outside course and scope of employment. Banking law – duty of collecting bank to take care not to collect for person not entitled to proceeds. Concurrent wrongdoers – employer who is victim of employee’s theft is not necessarily answerable, and employee’s dolus does not absolve negligent third party
29 September 2000
Reported
Use of "Power House" on clothing did not infringe "Power" registrations; no likely confusion or sufficient similarity/detriment.
Trade marks — Infringement — s 34(1)(a): likelihood of deception/confusion must be assessed by global comparison and notional use; "Power House" distinguished from "Power"; no confusion. Trade marks — Dilution/unfair advantage — s 34(1)(c): "similar" requires a marked resemblance; superficial resemblance insufficient; must prove detriment or unfair advantage with evidence, not mere assertion
29 September 2000
A sheriff who attaches third-party property not in the debtor’s possession acts at his own risk and may be liable for resulting loss.
Civil procedure – sheriff’s liability – attachment of third-party property not in debtor’s possession – messenger/sheriff acts at own risk and is answerable to true owner Uniform Rule 9(8) – third-party security held only until judgment; entitlement to immediate return on judgment. Factual causation – but-for test; unlawful attachment causing increased risk leading to theft Precedent – Weeks v Amalgamated Agencies applied; absence of negligence not a defence to liability for wrongful attachment
29 September 2000
Reported
Appeal dismissed under s21A as any order would have no practical effect because the labour disputes were finally resolved.
s21A – appeal dismissal for lack of practical effect (mootness); Labour Relations Act – exclusive Labour Court jurisdiction; interim interdicts in industrial disputes; refusal to decide abstract or hypothetical issues; remittal and costs following dismissal.
29 September 2000
Reported
Section 99(5) of the Customs Act is a statutory expiry period extinguishing liability, not subject to Prescription Act interruptions.
Customs law – section 99(5) of Customs and Excise Act 91 of 1964 – statutory expiry/limitation period extinguishing liability after two years; Prescription Act 68 of 1969 (ss 13(1)(g), 16(1)) – inapplicable where inconsistent; accessory (surety) liability ceases when principal’s liability ceases.
29 September 2000
Reported
Section 69(3) warrants generally require notice unless concealment or necessity excludes audi; ex parte warrant set aside here, special costs order reversed.
Insolvency Act s69(3) – search and seizure warrants – audi alteram partem – statutory interpretation as to implied exclusion of notice – concealment v "otherwise unlawfully withheld" – ex parte applications and duty of disclosure – trustee’s representative capacity and de bonis propriis costs.
29 September 2000
Reported
A post‑prescription undertaking not to plead prescription is enforceable and not contrary to public policy; appeal dismissed.
Prescription law – undertaking not to plead prescription – validity where underlying debt already extinguished by prescription – Prescription Act 68 of 1969 (arts 10, 17). Public policy – contract freedom to forgo procedural defence – distinction between post‑prescription undertakings and advance waivers or consensual extensions. Effect of undertaking – does not revive extinguished debt but bars debtor from pleading prescription
29 September 2000
Whether a wholly suspended 15-year sentence for domestic murder was unduly lenient and warranted appellate interference.
Sentence — Murder by strangulation — Wholly suspended lengthy sentence — Trial judge misdirected by overemphasis on therapeutic mitigation — Domestic violence and need for deterrence — Condonation of late application for leave to appeal — Appellate interference — Sentence substituted to seven years' imprisonment.
29 September 2000
Reported
A local authority may withhold clearance certificates until municipal charges are paid; such payments by a liquidator are costs of realisation.
Municipal law – embargo provisions – s50 Local Government Ordinance – entitlement of local authority to withhold clearance certificate until specified charges paid. Insolvency law – s89 Insolvency Act – meaning and scope of costs of maintaining, conserving and realising property; effect of s89(4) and s89(5) on non‑tax municipal charges. Liquidator’s payments to obtain transfer – constitute costs of realisation and are not automatically recoverable from local authority. Creditor’s claims – pre‑insolvency debts remain due and payable and may be demanded under valid embargo provisions
29 September 2000
Reported
s44(2) requires creditor attachment before vesting; no attachment pre-27 April 1994, appeal dismissed.
Insurance Act s 44(2) — deeming operates "as against any creditor" and requires attachment in execution before vesting; Insurance Act s 44(1) — sequestration may include conclusion of s 34 Administration of Estates procedure; Effect of Brink v Kitshoff — deeming provisions invalid from 27 April 1994; Vesting requires acquisition of right before constitutional invalidation.
29 September 2000
Reported
An agency shop agreement that does not expressly provide for s 25(3) requirements is unenforceable and cannot be rectified.
Labour law; agency shop agreements — statutory formalities under s 25(3) LRA — requirement that agreement "provide" expressly for specified matters; substantial compliance and incorporation by reference rejected; rectification incompetent where agreement invalid for non-compliance with statutory form; appellate consideration of new point permissible where facts are common cause; waiver and costs.
29 September 2000
Reported
s84 presumption applied; defendant failed to rebut negligence and appeal dismissed.
Forest Act s84 – presumption of negligence in respect of veld/forest fires outside fire-control areas; onus shifted to defendant to rebut negligence; scope of onus (whether it includes disproving causative relevance) controversial; standard of care for landowners and foresters; sufficiency of ground support and communication in aerial/ground firefighting contexts.
29 September 2000
Reported
A seller with outstanding trade debts remained a "trader" and its business premises formed part of the business, so the transfer was void.
Insolvency Act s 34(1) — meaning of "trader"; present-tense "carries on" does not require active daily trading if trade debts remain; immovable property may "form part of" a business where premises are adapted for the trade and used exclusively; non-compliance with s 34(1) notice/publication renders transfer void against trustee.
29 September 2000
Reported
Non‑disclosure did not invalidate extradition warrant and delay did not justify an indefinite stay.
Extradition — Extradition Act s 5(1) — validity of arrest warrant — material non‑disclosure by State; Constitutional right to trial within reasonable time — delay analysis, systemic delay and accused’s conduct; Indefinite stay of extradition — extraordinary remedy requiring specific trial prejudice; Costs — criminal proceedings in substance, costs order inappropriate.
29 September 2000
Reported
Whether ministerial regulations can render minors' MMF claims prescribed — court holds they cannot.
Multilateral Motor Vehicle Accidents Fund — Regulation 3(2)(a)(i)-(ii) — Prescription; Prescription Act ss 13 & 16 — whether subordinate regulations can oust Chapter III protections for minors; Delegation under s6 — limits on making unconditional Article 40 liability conditional; Mbatha and Prinsloo (Padongelukkefonds) considered.
29 September 2000
Reported
Whether termination constituted redundancy/retrenchment under the fund’s statute, entitling enhanced gratuity.
Statutory interpretation — Municipal Employees Gratuity Fund Rules — whether termination falls under s34(1) (resignation/dismissal) or s34(2) (redundancy/retrenchment) — "redundancy" / "retrenchment" given a wide, practical meaning including replacement in re‑organisation/affirmative action. Employment law context — no consensual termination where employer-initiated replacement Costs — limits and penal orders where record and heads disregarded leave and rules
29 September 2000
Reported
Competition Act applies to raisin marketing unless a specific regulatory measure under the Marketing Act actually exists.
Competition law – Scope – Whether activities in the marketing of raisins fall within Competition Act or are displaced by Marketing of Agricultural Products Act. Statutory interpretation – "subject to or authorised by public regulation" requires an existing directive/authorisation; enabling legislation alone insufficient Jurisdiction – Exclusive competence of Competition Tribunal and Competition Appeal Court to grant and hear interdicts in respect of prohibited practices. Interaction of sectoral enabling statutes with general competition law – displacement only where concrete regulatory measures exist
29 September 2000
A defence counsel’s cross‑examination can create an implied admission that dispenses with formal proof of forensic sample identity.
Criminal procedure – forensic evidence – identity of blood samples – implied admissions by defence counsel in cross‑examination – such admissions dispense with formal proof; DNA paternity evidence as strong corroboration.
29 September 2000
Further evidence admitted to excuse late heads; condonation granted for one robbery count due to unsatisfactory identity parade.
Criminal procedure – admission of further evidence under s 22 Supreme Court Act – standards for condonation (Melane) – identity parades – non-suspects must approximate suspects in age, height, build and appearance – desirability of photographs to assess parade fairness – failure to grant condonation where practitioner’s dilatoriness unjustly visited on active client.
29 September 2000
Where other convictions are overturned on appeal, an appellate court may remit sentence to consider correctional supervision.
Criminal law – Sentence – Availability of correctional supervision (s 276(1)(h)) where concurrent custodial sentences on other counts are set aside on appeal – Appellate court may set aside imprisonment and remit for resentencing – Consideration of degree of participation, first offender status and provocation.
29 September 2000
Appellate court increases sentence after finding trial court's global sentence for repeated rapes disturbingly inadequate.
Criminal law – Sentencing – taking multiple offences together for sentencing purposes – undesirable but mere non‑compliance not necessarily misdirection; Sentencing appellate review – whether sentence is disturbingly inappropriate; Rape – severity, prolonged humiliation, repeat rape as aggravating factors; concurrency and cumulative effect of sentences.
29 September 2000
Reported
A late tender considered without exercising statutory discretion invalidates the award; appeal dismissed with costs.
Tender law – late submission of tenders – Regulation 7(6)(d) discretion to refer late tenders – failure to exercise statutory discretion – award set aside – matter referred back for fresh consideration – costs against late tenderer.
29 September 2000
Reported
Failure to object and actively defending in foreign proceedings constitutes submission enabling enforcement of that foreign judgment.
Foreign judgment enforcement; international jurisdiction — requirement of domicile/residence or submission; waiver of jurisdictional objection by conduct; effect of filing defence and participation; incompetence or ignorance of solicitor not excusing submission.
28 September 2000
Reported
Extension of probation was valid; post‑decision hearing satisfied procedural fairness; termination upheld and appeal dismissed.
Administrative law – review – undue delay and mootness; employment law – probationary appointments – extent and timing of extension; procedural fairness – adequacy of opportunity to be heard where initial decision is provisional; appeal procedure – requirements for record and prejudice to respondent.
26 September 2000
Reported
Respondent’s factual insolvency and refusal to pay an undisputed creditor justified a final winding‑up order without a provisional order.
Company law – Winding‑up – s 344(f) and s 345 – commercial (cashflow) insolvency and factual (balance‑sheet) insolvency as relevant factors; unpaid undisputed creditor claim and false denial of liability as indicia of inability to pay; discretion to grant final winding‑up order without provisional order where issues fully ventilated; limited weight to bank’s satisfaction where security exists.
22 September 2000