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South Africa Judgment

Labour Court

Bophela v Insam Mining & Financial Close Corporation (J36/98) [2000] ZALC 35 (25 May 2000)

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Source document

01

Holding and result

The court found that the settlement agreement was too vague to be enforced as an order of court. The agreement did not specify the amount payable, and was merely an undertaking to act in a certain manner. The applicant failed to quantify the alleged outstanding amount, and the respondent had already paid R1,197.00, which it considered to be the full settlement. The court held that a writ could not be issued on the basis of such an agreement, and it was not competent for the court to vary the agreement or determine the amount due based on evidence from the bar. The agreement was declared void for vagueness and incapable of enforcement.

Court disposition

Application dismissed.

Orders

  • The application to make the settlement agreement an order of court is dismissed.

02

Material facts

Parties

Givenson Bophela

Applicant Counsel: Mbatha

Insam Mining & Financial Close Corporation

Respondent

Amounts and remedies

  • Amount Paid to Applicant on 19/12/97: ZAR 1,197

03

Procedural history

  1. Posture

    Urgent Application / Application to Make Settlement Agreement an Order of Court

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contends that the settlement agreement, recorded on the LRA 7.12 form, entitles him to further payment for salary discrepancies in 1997. He claims he was to be paid R45 per shift rather than R35, and seeks to have the agreement made an order of court to enforce payment of the outstanding amount.
Respondent
The respondent asserts that the amount of R1,197.00 paid to the applicant on 19 December 1997 was in full and final settlement of the dispute. The respondent maintains that the matter is finalized and opposes the application to make the agreement an order of court, arguing that no further amount is due.

05

Court’s reasoning

  1. 01

    Kgaditse v Pep Stores Ltd 1999 (20) ILJ 618

    A court must exercise its discretion judicially when asked to make a settlement agreement or arbitration award an order of court under section 158(1)(c) of the Labour Relations Act.

  2. 02

    Nambian Minerals Corporation v Benguella Concession Ltd [1996] ZASCA 140; 1997 (2) SALR 548 AD

    An agreement that is vague and incapable of effective meaning cannot be enforced by a court and is void for vagueness.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the settlement agreement was too vague to be enforced as an order of court. The agreement did not specify the amount payable, and was merely an undertaking to act in a certain manner. The applicant failed to quantify the alleged outstanding amount, and the respondent had already paid R1,197.00, which it considered to be the full settlement. The court held that a writ could not be issued on the basis of such an agreement, and it was not competent for the court to vary the agreement or determine the amount due based on evidence from the bar. The agreement was declared void for vagueness and incapable of enforcement.

Obiter and limits

  • It is regrettable that the Commissioner who attended to the conciliation and drafting of the agreement did not quantify the amount payable to the applicant.
  • A writ cannot be issued on the basis of this agreement, even if made an order of court, as it is merely an undertaking without a specified amount.
  • The applicant's remedy, if any, would be to cause a writ to be issued and attach property to the value of his claim, but this is not possible on the present agreement.

Court disposition

Application dismissed.

  • The application to make the settlement agreement an order of court is dismissed.

Source and reliance status

Labour Court

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Judgment text

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Source document

Labour Court

Judgment

[2000] ZALC 35

Page 3 of 3

IN

THE LABOUR COURT OF SOUTH AFRICA

HELD

AT JOHANNESBURG

CASE NO: J 36/98

In the matter between:

GIVENSON BOPHELA Applicant

and

INSAM MINING & FINANCIAL CLOSE CORPORATION Respondent

JUDGMENT

LYSTER A J :

1.1 This is an application in terms of section 158(1)(c) in terms of which Applicant seeks to have a settlement agreement made an order of court.

1.2 Respondent filed papers opposing the matter and it was set down as an opposed application, but Respondent did not appear at the hearing of the application.

1.3 It is trite to say that when called on to exercise its powers in terms of section 158(1)(c) to make an arbitration award or a settlement agreement an order of Court, the Court must exercise its discretion judicially. (See Kgaditse v Pep Stores Ltd 1999 (20) ILJ at 618), and will not act as a rubber stamp.

2.1 The settlement agreement which Applicant seeks to make an order of Court inthis matter comprises the following: 2.1.1 It appears as a handwritten note on the face of an LRA 7.12 form (certificate of outcome of dispute referred for conciliation) 2.1.2 The agreement such as it is, reads as follows: “The company acknowledges that errors were made i.r.o. (sic) Mr Bhopela’s

salary during 1997. The company undertook to correct the matter and to pay him what is due to him by 6/1/98. 2.1.3 The document is signed by Applicant and one D.Maruso, although there is no clarification as to who this is. It is apparent from Respondents answering documents, that Respondent paid Applicant an amount of R 1 197-00 on the same day as the settlement agreement referred to above was entered into that is 19/12/97, and this is conceded by Applicant in his reply. Applicant however, in his reply claims that he is due a further amount, although there is no attempt to set out what this amount is. He merely states that he was to be paid R 45 per shift and not R35 per shift. Respondent’s view, ex facie the answering documents, is that the amount of R 1197-00 paid to Applicant on 19/12/97, was in fact the disputed amount, and regards the matter as finalized.

2.1 The settlement agreement which Applicant seeks to make an order of Court inthis matter comprises the following:

2.1.1 It appears as a handwritten note on the face of an LRA 7.12 form (certificate of outcome of dispute referred for conciliation)

2.1.2 The agreement such as it is, reads as follows: “The company acknowledges that errors were made i.r.o. (sic) Mr Bhopela’s

salary during 1997. The company undertook to correct the matter and to pay him what is due to him by 6/1/98.

2.1.3 The document is signed by Applicant and one D.Maruso, although there is no clarification as to who this is.

It is apparent from Respondents answering documents, that Respondent paid Applicant an amount of R 1 197-00 on the same day as the settlement agreement referred to above was entered into that is 19/12/97, and this is conceded by Applicant in his reply.

Applicant however, in his reply claims that he is due a further amount, although there is no attempt to set out what this amount is. He merely states that he was to be paid R 45 per shift and not R35 per shift.

Respondent’s view, ex facie the answering documents, is that the amount of R 1197-00 paid to Applicant on 19/12/97, was in fact the disputed amount, and regards the matter as finalized.

6.1 The “settlement agreement”, in so far as it purports to be an agreement to facilitate the payment of monies, is not an agreement that this Court is able to make an order of Court. It is regrettable that the Commissioner who attended to the conciliation and the drafting of the agreement, saw fit to record such an agreement, and did not quantify the amount payable to Applicant. 6.2 The Applicant, who believes he is entitled to more money, clearly seeks to enforce this settlement agreement. Respondent’s

view is that it has been settled. In these circumstances, Applicant’s remedy would be to cause a writ to be issued, and

to attach a property to the value of his claim. 6.3 Clearly, a writ cannot be issued on the basis of this agreement, even if this court does make it an order of Court. It is merely an undertaking by one party to act in a certain manner. No amount is specified, and this Court can certainly not, on the basis of evidence from the bar from the Applicant’s attorney, conclude that Applicant should have been paid more per shift, vary the agreement, and make an order to this effect. Such a course of action would be grossly untenable, although this is what Mr Mbatha, for Applicant, suggested I do. 6.4 I am of the view that the agreement is void on account of its vagueness, and is not capable of enforcement. In coming to his decision I have had regard to the decision of the AD in the matter of Nambian Minerals Corporation v Benguella Concession Ltd [1996] ZASCA 140; 1997 (2) SALR 548 AD, in which the Court held that an agreement could not be enforced where it was not capable of any effective meaning, and as such was void for vagueness. 6.5 The application is dismissed.

6.1 The “settlement agreement”, in so far as it purports to be an agreement to facilitate the payment of monies, is not an agreement that this Court is able to make an order of Court. It is regrettable that the Commissioner who attended to the conciliation and the drafting of the agreement, saw fit to record such an agreement, and did not quantify the amount payable to Applicant.

6.2 The Applicant, who believes he is entitled to more money, clearly seeks to enforce this settlement agreement. Respondent’s

view is that it has been settled. In these circumstances, Applicant’s remedy would be to cause a writ to be issued, and

to attach a property to the value of his claim.

6.3 Clearly, a writ cannot be issued on the basis of this agreement, even if this court does make it an order of Court. It is merely an undertaking by one party to act in a certain manner. No amount is specified, and this Court can certainly not, on the basis of evidence from the bar from the Applicant’s attorney, conclude that Applicant should have been paid more per shift, vary the agreement, and make an order to this effect. Such a course of action would be grossly untenable, although this is what Mr Mbatha, for Applicant, suggested I do.

6.4 I am of the view that the agreement is void on account of its vagueness, and is not capable of enforcement. In coming to his decision I have had regard to the decision of the AD in the matter of Nambian Minerals Corporation v Benguella Concession Ltd [1996] ZASCA 140; 1997 (2) SALR 548 AD, in which the Court held that an agreement could not be enforced where it was not capable of any effective meaning, and as such was void for vagueness.

6.5 The application is dismissed.

--------------------

LYSTER A J Date of hearing : 19 May 2000 Date of Judgment: 25 May 2000

--------------------

LYSTER A J

Date of hearing : 19 May 2000

Date of Judgment: 25 May 2000

3

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Kgaditse v Pep Stores Ltd 1999 (20) ILJ 618

Case cited

Nambian Minerals Corporation v Benguella Concession Ltd [1996] ZASCA 140; 1997 (2) SALR 548 AD

Case cited

Labour Relations Act, section 158(1)(c)

Legislation

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