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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
172 judgments
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172 judgments
Citation
Judgment date
December 2010
Reported
A public body must substantiate PAIA secrecy claims; conclusory diplomatic/confidentiality assertions do not justify refusal.
Promotion of Access to Information Act – s 41(1)(b) (information supplied in confidence by another state) – s 44(1)(a) (reports obtained/prepared to assist policy-making) – s 78(2) enforcement proceedings – burden on public body to justify refusal – admissibility and sufficiency of affidavits – severability (s 28) – court’s inspection power (s 80) – unsupported diplomatic/confidentiality assertions insufficient.
14 December 2010
Reported
Section 13(2) permits condonation only where irregular service is rendered under a valid articles contract; fairness alone cannot override the Act.
Attorneys Act s 13(2) – interpretation – "regular/irregular service as a candidate attorney" requires existence of valid articles of clerkship; pre‑articles service not condonable. Constitutional law – fairness and justice are not freestanding grounds to reinterpret statutes; s 22 right to choose profession does not justify departing from clear statutory prerequisites absent direct limitation challenge. Pre‑constitutional SCA authority on statutory construction remains binding absent proper constitutional challenge.
2 December 2010
Reported
Secretary may not refuse a fidelity fund certificate based on a vague council resolution unrelated to financial compliance.
Attorneys Act s 42(3)(a) – fidelity fund certificate – scope of "other lawful requirement" – requirement must relate to financial/trust-account risk, be clear and communicable, and be capable of compliance; council resolution barring certificates where suspension/strike-off proceedings are pending is vague, unrelated to statutory purpose, not a lawful requirement and invalid; secretary’s refusal based on that resolution unlawful; costs awarded.
2 December 2010
A settlement confirming sureties' obligations was a credit guarantee, not a new credit agreement, and thus fell outside the NCA.
National Credit Act – distinction between credit agreement and credit guarantee (s 8 and s 8(5)) – accessory obligations and novation – where underlying mortgage/large loans to a juristic person fall outside the NCA (s 4(1)(b), s 9(4), s 7 thresholds), a consequent guarantee likewise falls outside the NCA – a settlement expressly not amounting to novation does not become a credit transaction later when principal debtor performs.
2 December 2010
Negligent solicitor’s failure to correct lease caused recoverable rental loss, but recoverable damages were limited by foreseeability to March 2002.
Damages for breach of contract – factual causation (but-for test) – intervening dishonesty and insolvency – remoteness and foreseeability limiting loss – mitigation – recoverability of attorney-and-client costs as foreseeable damages – interest as damages from service of summons.
2 December 2010
Reported
Whether ticket‑sale proceeds deposited into the director’s personal account belonged to the company or to the director for bank set‑off.
Banking law – banker–customer relationship as debtor–creditor; set‑off rights of bank; requirements for quasi‑vindicatory claim to funds in an account held by another; disclosed agency and agreement with bank to hold funds for third party; Varvarinskoye distinguished.
1 December 2010
Reported
Life sentence for rape of ten‑year‑old upheld; no substantial and compelling circumstances to justify departure.
Criminal law – Minimum sentences – s 51(1) Criminal Law Amendment Act – rape of child under 16 – whether substantial and compelling circumstances justify departure – aggravating factors: position of trust, victim vulnerability, severe physical injury, HIV risk – personal mitigation insufficient; Malgas and Matyityi applied.
1 December 2010
Reported
The respondent’s claimed interest deductions failed because the purported R96.4m loan was a simulated, tax‑driven transaction.
Tax — Simulated transactions — substance over form; burden on taxpayer to prove genuine intention; round‑tripping, discounting of promissory notes, absence of security and reciprocal cessions indicative of simulation; s103(1) available as alternative anti‑avoidance measure; imposition and remission of additional tax under s76.
1 December 2010
Reported
Adequacy of SARS’ reasons; appealability of tax-court orders; invalid tax-court composition under s83(4).
Tax — Income Tax and VAT — Adequacy of reasons for assessments — Rule 3 and rule 26(1) of tax court rules; Administrative law — PAJA standard explained but not required at reasons stage for formulating objection; Procedure — Appealability of tax court orders under s 86A(1) and s 83(13)(d); Tax court composition — s 83(4) requires full court where issues involve fact and law; Judgment — requirement that courts furnish reasoned judgments.
1 December 2010
Appeal dismissed as moot under s 21A since the challenged contract expired and decision would have no practical effect.
Administrative law — review of award of remainder of subsidised service contract — mootness — s 21A Supreme Court Act — appellate discretion to dismiss appeals having no practical effect — speculative collateral consequences do not keep appeal live — repeal of statute reduces likelihood of recurrence.
1 December 2010
Reported
A specified-sized sale is enforceable despite leaving shape and location to the seller; sale and option are separable.
Property law – Alienation of Land Act 68 of 1981 – s 2(1) – description of res vendita – sufficiency where size fixed and precise shape/location left to seller. Contract law – divisibility – sale and option in single document may constitute separate, independent agreements. Civil procedure – exception – when plea of invalidity for vagueness may be struck out.
1 December 2010
Reported
The respondent’s three-year renewal of a departmental services agreement was enforceable; no fresh competitive tender required; specific performance ordered.
Administrative law and procurement – validity of service contract and renewal – applicability of s217 Constitution, PFMA and Treasury regulations – when extension is not a new procurement – enforceability of renewal clause and remedy of specific performance.
1 December 2010
Reported
Site-permit holder entitled to cancellation of erroneous transfer and to s2 Conversion Act inquiry to determine ownership.
Deeds Registries Act s 6 – court may order cancellation of erroneously registered deed; Conversion of Certain Rights into Leasehold or Ownership Act 81 of 1988 – s 2 inquiry by Director-General required before declaration and transfer; Locus standi – executor’s representative authorised by power of attorney may litigate for estate; Administrative law – PAJA review inapplicable where only clerical acts occurred and no substantive s 2 decision is shown; Relief – cancellation of transfer and direction for statutory inquiry rather than immediate transfer.
1 December 2010
Reported
Consent in motion papers can be a binding judicial admission; material disputes of fact under s 252 require oral evidence.
Companies Act s 252 – relief from unfairly prejudicial, unjust or inequitable conduct – judicial admission in motion proceedings – disputes of fact requiring viva voce evidence – improper consolidation/valuation across non‑party entities – role of liquidator in investigating pre‑liquidation transactions.
1 December 2010
Reported
Applicant failed to prove race-based exclusion in municipal procurement; litigation conduct justified adverse costs orders.
Equality law – Equality Court procedure – burden of proof under s 13 of the Promotion of Equality and Prevention of Unfair Discrimination Act – complainant must make out prima facie differentiation and race nexus before respondent must rebut; Procurement and discrimination – municipal procurement, affirmative action and BEE targets do not automatically indicate practices aimed at maintaining racial exclusivity; Misjoinder – Equality Court correctly upheld plea of misjoinder where defendant had no connection to project; Costs – constitutional litigation not immune from adverse costs where litigation is frivolous, vexatious or pursued for private commercial gain; Abuse of Equality Court – need for succinct prescribed pleadings and avoidance of irrelevant material.
1 December 2010
Reported
A personal servitude granting exclusive stadium naming rights is a registrable real right enforceable against tenant and manager.
Property law — Servitude — Personal servitude granting stadium naming rights — Naming right can be a limited real right registrable against land — Registrability under s 63(1) Deeds Registries Act — Effect of demolition/reconstruction on personal servitude — Business efficacy/vagueness challenge rejected — Management/lease clauses purporting to grant conflicting naming rights ineffective.
1 December 2010
Reported
An acting judge’s undisclosed commercial relationship with the respondent gave rise to reasonable apprehension of bias, voiding the trial.
Recusal — reasonable apprehension of bias — acting judge in private practice having commercial relationship with litigant — duty to disclose relationship — failure to disclose renders subsequent proceedings a nullity — remedy: trial de novo before another judge.
1 December 2010
Reported
Owner who knew of fraudulent transfer but failed to act was estopped from vindicating registered property.
Property law; transfer of immovable property — authority to transfer; abstract system applies to immovables; deeds registry reliance; estoppel — representation, negligence, reliance and detriment; vindication barred by estoppel.
1 December 2010
Reported
Whether the respondent is a beneficiary entitled to seek trustees' removal and whether the court may order the Master to investigate.
Trust law – beneficiary status – only a beneficiary may seek removal of trustees; Court cannot direct Master to conduct s 16 investigation – discretion vests in Master; New factual points not raised below should not be advanced on appeal; Matter remitted for oral evidence on beneficiary status.
1 December 2010
Reported
Death before due date does not absolve estate from contractual mora interest; executor liable for interest at prescribed rate.
Contract — sale — fixed date for payment (mora ex re) — death of purchaser prior to due date — estate liable for mora interest; Contractual damages — mora interest compensatory, not requiring debtor's fault; Supervening impossibility — death does not discharge monetary obligations; Executors — obliged to pay debts (including interest) of deceased's estate when contract so provides.
1 December 2010
Appellant failed to satisfy s 60(11)(b); bail refused due to strong prima facie case and risk of further offending.
Bail – s 60(11)(b) onus on accused in Schedule 5 offences – strength of State’s prima facie case and documentary evidence – failure to produce supporting documents – risk of further offending – limited appellate interference under s 65(4).
1 December 2010
Whether the complainant understood 'rape' and whether medical and factual evidence proved penetration beyond reasonable doubt.
Criminal law – Rape – Elements – Whether complainant’s understanding of the word 'rape' must be independently established; medical evidence corroboration of penetration; evaluation of accused’s alternative explanation. Evidence – Totality of evidence approach; single‑witness sexual offence complaints and corroboration by medical evidence. Appeal – Standard for interfering with trial court’s factual findings; rejection of accused’s version as not reasonably possibly true.
1 December 2010
November 2010
High court improperly declared respondents VAT amnesty; criminal proceedings should not be suspended for such declaratory relief.
Tax law – Small Business Tax Amnesty Act – whether amnesty extended to VAT – interpretation of approval forms and prior SARS correspondence. Statutory exclusion – s 5(2) (no approval where investigation notice preceded application) and s 10(a) (exclusion where tax already paid) precluding VAT amnesty. Criminal procedure – improper suspension of magistrates’ criminal proceedings for civil declaratory relief – declaratory order cannot amount to acquittal. Civil practice – vexatious litigant conduct and punitive costs (attorney-and-client, including two counsel).
30 November 2010
Reported
Edited publication and editorial deliberately reproduced interdicted article’s substance, constituting contempt; publisher vicariously liable.
Contempt of court – scope and construction of publication interdict (substance v form); jurisdiction of one High Court to enforce another division’s order; requirement of deliberate and mala fide conduct for civil contempt; corporate liability for contempt via editor's actions; interpretation of editorial and cover in determining identification.
30 November 2010
Reported
The applicant’s trustees were authorised to apply capital for beneficiaries; the awards were exempt from donations tax under s 56(1)(l).
Donations tax – s 54 definition of donation; exemption s 56(1)(l) – disposals made under and in pursuance of a trust; trust construction – trustees’ power to apply capital (cl 12.1) for beneficiaries; tax assessment set aside where awards authorised and exempt.
29 November 2010
Reported
Winding‑up refused where indebtedness was bona fide and reasonably disputed under NCA challenges; suretyship not void ab initio.
Winding‑up — locus standi as creditor — debt disputed on bona fide and reasonable grounds — winding‑up refused; Suretyship — accessory to principal obligation — unenforceable principal debt defeats surety; National Credit Act — registration requirement and reckless credit — potential defences to enforcement of credit agreements; Interim relief — pending substantive NCA challenges precludes liquidation to enforce disputed claims.
29 November 2010
Reported
Whether a director traded recklessly under s 424 — court found no reckless trading; appeal dismissed.
Companies Act s 424(1) – Reckless trading – test involves objective and subjective elements – 'clarity and commitment' (Philotex) relevant where company depends on group support – directors entitled to rely on reasonable professional, banking and management assessments – accountant's retrospective view insufficient to establish recklessness where credible funding/turnaround prospects existed.
29 November 2010
Reported
A s5(4)(a) confirmation application need not be a notice-of-motion served on the respondent within ten court days.
Counterfeit Goods Act s 5(4)(a) – application for confirmation of warrantless seizure – procedure in chambers, not notice-of-motion – lodging with registrar within 10 court days sufficient; relationship with s 6; notice to respondent not required within 10 days.
29 November 2010
An unexplained seven‑year delay and inadequate explanation justified refusal of condonation despite a lost trial record.
Condonation — delay of notice of appeal — requirements for "good (sufficient) cause" (satisfactory explanation and prospects of success) — loss of trial record does not alone establish prospects — appellate interference with discretionary refusal limited.
29 November 2010
Reported
A ministerial 24‑month rehabilitation rule before hunting captive‑bred lions is irrational and invalid as applied to lions.
Environmental law — Biodiversity Act s 97 regulations — legality and rationality review — regulation permitting hunting only after 24‑month ‘self‑sustainment’ period — irrational where no scientific basis or proper factual justification exists; composition of Scientific Authority — ministerial discretion to appoint members and consult stakeholders.
29 November 2010
Reported
Appellate court reduced sentence where trial judge materially misdirected by ignoring psychiatric and personal mitigation.
Sentencing — material misdirection — failure to consider psychiatric and social mitigation — appellate interference and substitution of sentence (S v Malgas) — concurrent sentencing for related offences — inappropriate grant of leave to SCA where full court was suitable.
29 November 2010
Reported
Whether a rule 34 secret tender constitutes full settlement including accrued interest for costs purposes.
Civil procedure – Uniform Rules 34(1), (5) and (12) – secret tender (offer to settle) – effect on costs allocation; Tender expressed as "full and final settlement" includes accrued interest to date unless limited; Costs discretion limited to whether tender beat the award; Failure to treat interest as part of award is misdirection warranting interference.
29 November 2010
Appeal re-evaluated life expectancy, corrected actuarial/medical-inflation errors, refused 'lost years' claim, and recalculated damages and costs.
Medical negligence – quantum – assessment of life expectancy for severely disabled child – expert actuarial evidence (Strauss California dataset) preferred; amendment and further evidence on appeal – generally refused; lost years claim – Lockhat’s Estate bars recovery; s 28(2) – does not alter evidential/onusal rules in damages assessment; medical inflation – apply medical inflation ~3.5% above CPI, not a 2.5% capitalisation rate; caregivers – allowance for relief caregivers under BCEA; Rule 34 offer – valid and relevant to costs; allegations of judicial bias – dismissed.
26 November 2010
Reported
A municipal council’s duly adopted resolution is binding and must be implemented until rescinded or set aside.
Local government – municipal council resolutions – binding on municipality and officials until rescinded or set aside on review; Municipal Systems Act s 55(1) – municipal manager’s appointment powers are delegatory and do not divest council of executive authority; High Court jurisdiction – contractual employment claims enforceable notwithstanding alternative LRA remedies; Administrative law – officials may not refuse to implement duly adopted council resolutions based on belief of invalidity.
25 November 2010
Reported
Section 26(6) POCA permits release of restrained assets only for the person restrained; third-party restrained assets cannot fund another’s legal costs.
POCA s26(6) – restraint orders – scope of court’s discretion to provide for reasonable legal and living expenses – confined to the person against whom the restraint order is made; realisable property includes gifts to third parties but does not alter ownership; assets restrained against third parties cannot be released for another person’s legal expenses. Judicial duty – delay in furnishing reserved reasons – persistent unexplained delay and failure to decide leave application may amount to constructive refusal of leave to appeal.
25 November 2010
Reported
Acting chief remained temporary; successor’s appointment procedurally defective but review barred by non‑joinder of the Premier.
Customary law and statutory procedure — recognition and appointment of traditional leader — s19 KwaZulu‑Natal Traditional Leadership and Governance Act — identification by Umndeni wenkosi and recognition by Premier mandatory; acting (regent) appointment under Black Administration Act s2(8) remains temporary; non‑joinder of the Premier fatal to review of appointment.
23 November 2010
Reported
Whether courts may read a ‘fifth’ jurisdictional requirement into s 40(1) and who bears the onus to challenge the arrest.
Criminal procedure — Arrest without warrant (s 40(1)) — jurisdictional facts for lawful arrest — no implied ‘fifth’ requirement to prefer less invasive measures — officer’s discretion must be bona fide and rational — onus on plaintiff to prove improper exercise of discretion.
19 November 2010
Reported
Unmarried father’s s21 parental rights upheld; child’s best interests required residence with father; Northern Cape orders set aside.
Children — Children’s Act s21 — unmarried biological father acquiring full parental responsibilities where living in permanent life-partnership at birth; best interests paramount; grandparents’ remedies (ss23–24) and common-law position; concurrent jurisdiction of high courts as upper guardian; interim stays and forum-shopping; requirements for contempt (deliberate, mala fide disobedience).
19 November 2010
Reported
An accused’s silence in the face of credible incriminating evidence will usually strengthen the prosecution’s case.
Criminal evidence – evaluation of the totality of evidence; credibility findings; s 204 witnesses; single-witness caution; accused’s failure to testify strengthens prosecution case; sentencing — lesser role and intoxication not established as mitigating.
16 November 2010
October 2010
Reported
Whether the applicant’s acceptance of a reduced purchase price reflecting assumed contingent liabilities constituted "expenditure" under s 11(a).
Income tax – s 11(a) – meaning of "expenditure" or "expenditure actually incurred" – requires undertaking an obligation to pay or actual incurring of a liability; mere reduction in purchase price or accounting entries do not suffice where no liability arises. Sale of business – purchaser assuming liabilities – set-off requires mutual, liquidated and due debts; absence thereof precludes treating assumed liabilities as seller’s expenditure. Tax consequence – contingent liabilities deductible by purchaser when become unconditional.
1 October 2010
Reported
An amended explanatory comment was not a tariff determination; rebates for screens without tuners do not extend to fully assembled television sets.
Customs and excise – Tariff determinations – Distinction between operative determination and explanatory commentary – Effect of change in imported goods' nature (screens without tuners v assembled TV sets) – Post Clearance Inspection assessments – s 47(9)(a) and s 47(11) retrospective operation – Reviewability of administrative action.
1 October 2010
Reported
Court deleted racially exclusive bursary conditions as contrary to public policy but set aside geographic substitution.
Trusts – Trust Property Control Act s 13 – power to delete or vary trust provisions that hamper objects, prejudice beneficiaries or conflict with public interest. Charitable trusts – educational bursary – racially restrictive testamentary conditions – conflict with public policy and constitutional equality. Constitutional law – equality (s 9) and Promotion of Equality and Prevention of Unfair Discrimination Act – impact on testamentary freedom. Freedom of testation – not absolute where testamentary provisions offend constitutional values or public policy. Geographical amendments – substitution requires evidence that original description hampers trust objects.
1 October 2010
Reported
Rectification of a JBCC guarantee is permissible, its stated calendar expiry is inclusive, but enforcement was refused as arbitration made it academic.
Construction guarantee (JBCC) – expiry date – stated calendar date is inclusive; civil method of computation inapplicable where no period requires calculation. Rectification – possible without antecedent written agreement where clear common intention proved. Independence of guarantee – guarantor ordinarily obliged to pay on compliant demand; exception for fraud. Effect of subsequent arbitration – award may be admitted on appeal; where arbitration disposes rights between employer and contractor, it may render enforcement of guarantee academic. Judicial discretion – refusal to grant academic relief under s 21A Supreme Court Act.
1 October 2010
Reported
Statutory right to inspect a company’s register generally prevails; disclosure may only be refused for unlawful or exceptional reasons.
Company law – s 113 Companies Act 61 of 1973 – inspection of register of members; statutory right of access; requester need not state reasons; court’s discretion to refuse is narrow and limited to unlawful purpose; share block companies not entitled to special insulation from disclosure; constitutional right to privacy does not ordinarily protect company register information; costs and delay in judgment.
1 October 2010
Reported
Accident’s cumulative effects caused delayed death; insurer cannot rely on unpleaded pre-existing infirmity to avoid cover.
Insurance – Personal accident policy – Occurrence clause requiring bodily injury to be sole and independent cause of death – Causation: delayed death and proximate cause – Expert medical evidence: evaluation and logical basis – Exception clause excluding pre-existing infirmity cannot be relied upon if not pleaded – Onus and shift once causation established.
1 October 2010
September 2010
Reported
Prescription began when the creditor knew the purchaser could not pay; respondent's claim had therefore prescribed.
Prescription — Prescription Act 68 of 1969 — s 12(1) and s 12(3) — commencement of prescription — debt deemed due when creditor has knowledge of debtor’s identity and facts giving rise to debt — creditor deemed to have such knowledge if it could have been acquired by reasonable care — three-year prescription period (s 11(d)) — professional negligence/contractual claim — nulla bona return not prerequisite for accrual of cause of action.
30 September 2010
Reported
Respondent’s failure to comply with s79(18) rendered the purported lease void ab initio.
Local government – Alienation/letting of immovable property – s 79(18) Local Government Ordinance 17 of 1939 – publication and objection requirements are jurisdictional; failure renders purported lease void ab initio; characterization of agreements by objective contractual essentialia; discretion to validate defective agreements (assumed) but not established or exercised where public interest would be frustrated.
30 September 2010
Whether evidence established large‑scale mandrax manufacture and statutory 'dealing', and whether imposed sentences were excessive.
Criminal law – Drugs and Drug Trafficking Act 140 of 1992 – wide definition of 'dealing' includes acts connected with manufacture; circumstantial evidence (equipment, chemicals, precursor substances, contamination and presses) sufficient to prove large-scale manufacture and knowledge; sentencing – appellate reduction where original sentence excessive; statutory minimum sentence applicable for first offender involved in manufacture.
30 September 2010
Reported
Fingerprint and similar-modus evidence on two robbery vehicles established identity beyond reasonable doubt; appeal dismissed.
Criminal law – identification – forensic fingerprint evidence – probative value where prints lifted from vehicles involved in offences and matched to accused. Criminal law – similar fact/modus operandi evidence – admissibility to establish identity and cogency, not mere propensity. Evidence – absence of proof as to age of prints does not automatically negate probative value where authenticity and matching not challenged. Application of Blom tests – inference must be consistent with proved facts and exclude reasonable innocent explanations.
30 September 2010
Reported
Court upheld municipal rate resolutions: notices showing "general purport" and lack of timely objections precluded setting rates aside.
Local government — Property rates — Compliance with s 10G(7) LGTA — "General purport" of notice — inspection of council resolution sufficient; Objections — must be lodged in writing within 14 days of notice and be substantive objections; Procedural defects and newspaper omissions not fatal absent prejudice; Delay and prejudice — courts may refuse retrospective relief; Judicial deference to municipal budgeting and revenue protection.
30 September 2010