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South Africa Order

Free State High Court, Bloemfontein

Chuang Yi Trading (Edms) Bpk v Vrystaat Dobbel en Drankowerheid and Another; Gallery on Leviseur (Edms) Bk v Vrystaat Dobbel en Drankowerheid and Another; Mdi v Free State Gambling and Liquor Authority and Another (4464/2015, 203/2016, 1814/2015) [2016] ZAFSHC 92 (5 May 2016)

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The court accepted the explanation provided by the Chairperson of the Board that the administration staff misconceived their statutory duties and did not communicate this to the Board members. The Board did not intend to act in defiance of the court, and their conduct was not mala fide. Consequently, the court found no basis for an order de bonis propriis against the Board members. However, the first respondent is ordered to pay the costs of the applications on the attorney and client scale in all three cases.

Court disposition

Costs order granted against the first respondent on the attorney and client scale in all three cases; no order de bonis propriis made against Board members.

Orders

  • In all three cases the first respondent is ordered to pay the costs of the applications on the scale as between attorney and client.

02

Material facts

Parties

Chuang Yi Trading (Edms) Bpk

Applicant Counsel: Adv L le R Pohl SC

Gallery on Leviseur (Edms) BK

Applicant Counsel: Adv L le R Pohl SC

Mtutuzeli Sidney Mdi

Applicant Counsel: Adv L le R Pohl SC

Vrystaat Dobbel en Drankowerheid

Respondent Counsel: Adv ABG Choudree

Die Voorsitter van die Vrystaat Dobbel en Drankowerheid

Respondent Counsel: Adv ABG Choudree

Free State Gambling & Liquor Authority

Respondent Counsel: Adv ABG Choudree

The Chairperson of the Free State Gambling & Liquor Authority

Respondent Counsel: Adv ABG Choudree

03

Procedural history

  1. Posture

    Civil Application / Costs Order Following Explanation by Respondent

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants sought an order de bonis propriis against the Board members, alleging that their conduct warranted personal liability for costs due to defiance of the court and misconceived statutory duties.
Respondent
The second respondent, Chairperson of the Board, submitted a detailed affidavit explaining that the administration staff misunderstood their statutory duties and failed to communicate this to the Board. He asserted that the Board did not intend to act in defiance of the court and that their conduct was not mala fide.

05

Court’s reasoning

  1. 01

    General South African costs jurisprudence

    A costs order de bonis propriis is justified only where conduct is mala fide, negligent, or in defiance of the court.

  2. 02

    Affidavit of the Chairperson; accepted by the court

    The explanation of misunderstanding statutory duties, absent mala fides, may mitigate against personal costs orders.

06

Ratio, limits and disposition

Ratio decidendi

The court accepted the explanation provided by the Chairperson of the Board that the administration staff misconceived their statutory duties and did not communicate this to the Board members. The Board did not intend to act in defiance of the court, and their conduct was not mala fide. Consequently, the court found no basis for an order de bonis propriis against the Board members. However, the first respondent is ordered to pay the costs of the applications on the attorney and client scale in all three cases.

Obiter and limits

  • The court noted the importance of proper communication between administration staff and Board members regarding statutory duties.
  • The court emphasized that costs orders de bonis propriis should not be made lightly and require clear evidence of mala fides or defiance.

Court disposition

Costs order granted against the first respondent on the attorney and client scale in all three cases; no order de bonis propriis made against Board members.

  • In all three cases the first respondent is ordered to pay the costs of the applications on the scale as between attorney and client.

Source and reliance status

Free State High Court, Bloemfontein

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Judgment reading view

Judgment text

The complete available source text.

Source document

Free State High Court, Bloemfontein

Order

[2016] ZAFSHC 92

FREE STATE HIGH COURT, BLOEMFONTEIN

REPUBLIC

OF SOUTH AFRI CA

Case No. : 4464/2015

In the matters between:-

CHUANG

YI TRADING (EDMS)

BPK

Applicant

and

VRYSTAAT

DOBBEL EN DRANKOWERHEID 1st Respondent

DIE

VOORSITTER VAN DIE VRYSTAAT

DOBBEL EN DRANKOWERHEID 2nd Respondent

Case No. : 203/2016

GALLERY

ON LEVISEUR CEDMS) BK Applicant

VRYST

AAT DOBBEL EN DRANKOWERHEID 1st Respondent

DIE

VOORSI TTER VAN DIE VRYSTAAT

DOBBEL EN DRANKOWERHEID 2nd Respondent

Case No. : 1814/2015

MTUTUZELI

SIDNEY MDI Applicant

FREE STATE GAMBLING & LIQUOR AUTHORITY 1st Respondent

THE

CHAIRPERSON OF THE FREE STATE

GAMBLING & LIQUOR AUTHORITY 2nd Respondent

ORDER:

COSTS

JUDGMENT BY KRUGER, J

DELIVERED ON: 5 MAY 2016

[1] In the judgment of 21 April 2016 the members of the Free State Gambling and Liquor Board were granted leave to place evidence under oath before the court why an order de bonis propriis should not be made against them. A detailed affidavit by second respondent, the Chairperson of the Board, has now been placed before me. In that affidavit the second respondent explains that the administration staff misconceived their statutory duties and did not convey their lack of understanding to the members of the Board. He explains that the Board did not intend to act in defiance of the court. He is at pains to explain that the conduct of the Board Members, Secretariat and Legal Department was not ma/a tides.

[2] I accept the explanation by the second respondent given on behalf of the Board.

ORDER

In all three cases the first respondent is ordered to pay the costs of the applications on the scale as between attorney and client.

_______

A. KRUGER, J

On behalf of Applicants: Adv L le R Pohl SC

Instructed by:

Honey Attorneys

BLOEMFONTEIN

On behalf of

1st & 2nd Respondents: Adv ABG Choudree

Matsepes Inc.

/wm

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