Caxton Ltd v Commission for Conciliation Mediation and Arbitration and Others (JR 1216/2002) [2011] ZALCJHB 130 (7 April 2011)

Caxton Ltd v Commission for Conciliation Mediation and Arbitration and Others (JR 1216/2002) [2011] ZALCJHB 130 (7 April 2011)

The court found that the arbitrator failed to properly weigh the explanation for the company's default and did not adequately consider the company's intention to defend the matter, as evidenced by its in limine objection and subsequent actions. The arbitrator's reliance on speculative estimates of hearing duration and the absence of company witnesses was unreasonable. Furthermore, the arbitrator did not assess whether the company had a bona fide defence to the constructive dismissal claim, as required by law. The company presented a plausible defence that the employee resigned voluntarily, which, if proven, could succeed. The arbitrator's ruling was thus unreasonable and failed to apply...

Citation
[2011] ZALCJHB 130
Parties
Applicant: Caxton limited; Respondent: THE COMMISSION FOR CONCILIATION, MEDIATION & ARBITRATION; Respondent: NTSOANE, D (N.O.); Respondent: CILLIERS, J C
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
7 April 2011
Case Number
JR 1216/2002
Procedural Posture
Review Application / Judgment on Review of CCMA Rescission Ruling and Default Award
Outcome
The review application succeeds; the rescission ruling and default award are set aside.
Judges
Lagrange
Legal Topics
Rescission of Default Award, Constructive Dismissal, Good Cause Requirement, In Limine Objection, Review of Arbitration Award
Labour Law Civil Procedure Rescission of Default Award Constructive Dismissal Good Cause Requirement In Limine Objection Review of Arbitration Award

Case Brief

Summary, issues, holding and outcome

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Parties

Caxton limited

Applicant

THE COMMISSION FOR CONCILIATION, MEDIATION & ARBITRATION

Respondent

NTSOANE, D (N.O.)

Respondent

CILLIERS, J C

Respondent

Procedural Posture

Review Application / Judgment on Review of CCMA Rescission Ruling and Default Award

Legal Issues

  1. 1 Whether the arbitrator's refusal to rescind the default award was reasonable and lawful.
  2. 2 Whether the company was in wilful default in failing to attend the arbitration hearing.
  3. 3 Whether the arbitrator properly considered the in limine objection regarding prior arbitration.

Ratio Decidendi

The court found that the arbitrator failed to properly weigh the explanation for the company's default and did not adequately consider the company's intention to defend the matter, as evidenced by its in limine objection and subsequent actions. The arbitrator's reliance on speculative estimates of hearing duration and the absence of company witnesses was unreasonable. Furthermore, the arbitrator did not assess whether the company had a bona fide defence to the constructive dismissal claim, as required by law. The company presented a plausible defence that the employee resigned voluntarily, which, if proven, could succeed. The arbitrator's ruling was thus unreasonable and failed to apply...

Court Disposition

The review application succeeds; the rescission ruling and default award are set aside.

Orders

  • The second respondent’s rescission ruling of 5 April 2002 is reviewed and set aside, as is the default award of 22 September 2001.
  • The first respondent is directed to set the matter down for a hearing before another commissioner, other than the second respondent, to determine both the in limine objection and, if necessary, the merits of the third respondent’s unfair dismissal claim.