Buffalo City Metropolitan Municipality v Metgovis (Pty) Limited (CCT78/18) [2019] ZACC 9; 2019 (5) BCLR 533 (CC) (28 February 2019)

Buffalo City Metropolitan Municipality v Metgovis (Pty) Limited (CCT78/18) [2019] ZACC 9; 2019 (5) BCLR 533 (CC) (28 February 2019)

The Constitutional Court held that the matter did not raise a constitutional issue or an arguable point of law of general public importance. The dispute concerned factual findings by the High Court regarding the existence of a tacit contract, not the development of the common law or the interpretation of section 217 of the Constitution. The common law already provides that contracts with organs of state must be lawful and comply with public procurement requirements. The mere misapplication of an accepted common law rule does not engage the Constitutional Court's jurisdiction. Accordingly, the application for leave to appeal was dismissed for lack of jurisdiction.

Citation
[2019] ZACC 9
Parties
Applicant: Buffalo City Metropolitan Municipality; Respondent: Metgovis (Pty) Limited
Court
Constitutional Court
Jurisdiction
South Africa
Judgment Date
28 February 2019
Case Number
CCT78/18
Procedural Posture
Leave to Appeal / Application for Leave to Appeal to the Constitutional Court After Refusal by High Court and Supreme Court of Appeal
Outcome
Application for leave to appeal dismissed for lack of jurisdiction. Costs awarded against the applicant.
Judges
Mogoeng, Basson, Cameron, Dlodlo, Froneman, Goliath, Khampepe, Mhlantla, Petse, Theron
Legal Topics
Tacit Contracts, Public Procurement, Section 217 Constitution, Unjustified Enrichment, Authority of Public Officials
Commercial and Corporate Constitutional Law Tacit Contracts Public Procurement Section 217 Constitution Unjustified Enrichment Authority of Public Officials

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Parties

Buffalo City Metropolitan Municipality

Applicant

Metgovis (Pty) Limited

Respondent

Procedural Posture

Leave to Appeal / Application for Leave to Appeal to the Constitutional Court After Refusal by High Court and Supreme Court of Appeal

Legal Issues

  1. 1 Does the existence of a tacit contract between an organ of state and a private party raise a constitutional issue warranting the Constitutional Court's jurisdiction?
  2. 2 Should the common law test for tacit contracts be developed to harmonise with section 217 of the Constitution regarding public procurement?
  3. 3 Was the High Court correct in finding that a tacit contract existed between the parties for the period July to October 2013?

Ratio Decidendi

The Constitutional Court held that the matter did not raise a constitutional issue or an arguable point of law of general public importance. The dispute concerned factual findings by the High Court regarding the existence of a tacit contract, not the development of the common law or the interpretation of section 217 of the Constitution. The common law already provides that contracts with organs of state must be lawful and comply with public procurement requirements. The mere misapplication of an accepted common law rule does not engage the Constitutional Court's jurisdiction. Accordingly, the application for leave to appeal was dismissed for lack of jurisdiction.

Court Disposition

Application for leave to appeal dismissed for lack of jurisdiction. Costs awarded against the applicant.

Orders

  • The application for leave to appeal is dismissed.
  • The applicant is to pay the costs of the respondent in this Court.