Davis and Another v Mayor and City Councillors of City of Pietermaritzburg (52/89) [1989] ZASCA 52; [1989] 2 All SA 379 (A) (9 May 1989)

Davis and Another v Mayor and City Councillors of City of Pietermaritzburg (52/89) [1989] ZASCA 52; [1989] 2 All SA 379 (A) (9 May 1989)

The Supreme Court of Appeal held that the compensation for expropriated property must be determined by its market value at the date of notice, taking into account its potential for sectional title development but not the developer's profit that could have been realized had the development occurred. The developer's profit was already deducted in the market value calculation. The Court found that the alleged financial loss was not directly caused by the expropriation, as realization of the profit depended on independent actions and approvals by the appellants and third parties. Therefore, the appellants were not entitled to additional compensation for developer's profit under section...

Citation
[1989] ZASCA 52
Parties
Appellant: William George Davis; Appellant: Robert Edward Alexander; Respondent: The Mayor and City Councillors of the City of Pietermaritzburg
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
9 May 1989
Case Number
52/89
Procedural Posture
Civil Appeal / Appeal From the Natal Provincial Division on Compensation for Expropriation
Outcome
Appeal dismissed with costs.
Judges
Corbett, Hefer, Vivier, Steyn, Grosskopf
Legal Topics
Expropriation Act 1975, Compensation for Expropriation, Market Value Assessment, Actual Financial Loss, Causation in Expropriation
Land and Property Civil Procedure Expropriation Act 1975 Compensation for Expropriation Market Value Assessment Actual Financial Loss Causation in Expropriation

Case Brief

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Parties

William George Davis

Appellant

Robert Edward Alexander

Appellant

The Mayor and City Councillors of the City of Pietermaritzburg

Respondent

Procedural Posture

Civil Appeal / Appeal From the Natal Provincial Division on Compensation for Expropriation

Legal Issues

  1. 1 Whether the appellants are entitled to additional compensation for developer's profit as 'actual financial loss' under section 12(1)(a)(ii) of the Expropriation Act 63 of 1975.
  2. 2 How the market value of expropriated property should be assessed, including its potential for sectional title development.
  3. 3 Whether there is a direct causal connection between the expropriation and the alleged financial loss claimed by the appellants.

Ratio Decidendi

The Supreme Court of Appeal held that the compensation for expropriated property must be determined by its market value at the date of notice, taking into account its potential for sectional title development but not the developer's profit that could have been realized had the development occurred. The developer's profit was already deducted in the market value calculation. The Court found that the alleged financial loss was not directly caused by the expropriation, as realization of the profit depended on independent actions and approvals by the appellants and third parties. Therefore, the appellants were not entitled to additional compensation for developer's profit under section...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.