Famous Idea Trading 4 (Pty) Ltd t/a Dely Road Courier Pharmacy v Government Employees Medical Scheme and Others (B1205/2023) [2024] ZAGPPHC 69 (5 February 2024)

Famous Idea Trading 4 (Pty) Ltd t/a Dely Road Courier Pharmacy v Government Employees Medical Scheme and Others (B1205/2023) [2024] ZAGPPHC 69 (5 February 2024)

The court held that the decision by GEMS to award the tender for medical courier pharmacy services was a commercial decision by a private entity and did not constitute administrative action or the exercise of public power. The relationship between GEMS and its members is contractual, and its procurement decisions...

Source-derived case information.

Citation
[2024] ZAGPPHC 69
Parties
Applicant: Famous Idea Trading 4 (Pty) Ltd t/a Dely Road Courier Pharmacy; Respondent: Government Employees Medical Scheme; Respondent: Chairperson of the Board of Trustees of the Government Employees Medical Scheme; Respondent: The Board of Trustees of the Government Employees Medical Scheme; Respondent: Marara Pharmacy (Pty) Ltd t/a Medipost Pharmacy; Respondent: Pharmacy Direct (Pty) Ltd; Respondent: HH Durrheim (Pty) Ltd t/a Medipost Pharmacy
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Case Number
B1205/2023
Procedural Posture
Review Application / Interlocutory Application to Compel Delivery of Rule 53 Record and Determination of Reviewability
Outcome
Application dismissed. The review application and interlocutory applications by the applicant are dismissed with costs, including costs of two counsel where so employed.
Judges
Ranchod
Legal Topics
Rule 53 Review, Private Procurement, Jurisdiction, Common Law Review, Administrative Action, Tender Award
Civil Procedure Commercial and Corporate Rule 53 Review Private Procurement Jurisdiction Common Law Review Administrative Action Tender Award

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Parties

Famous Idea Trading 4 (Pty) Ltd t/a Dely Road Courier Pharmacy

Applicant

Government Employees Medical Scheme

Respondent

Chairperson of the Board of Trustees of the Government Employees Medical Scheme

Respondent

The Board of Trustees of the Government Employees Medical Scheme

Respondent

Marara Pharmacy (Pty) Ltd t/a Medipost Pharmacy

Respondent

Pharmacy Direct (Pty) Ltd

Respondent

HH Durrheim (Pty) Ltd t/a Medipost Pharmacy

Respondent

Procedural Posture

Review Application / Interlocutory Application to Compel Delivery of Rule 53 Record and Determination of Reviewability

  1. 1 Whether the decision by GEMS to award the tender is reviewable under Rule 53 and/or common law.
  2. 2 Whether GEMS is obliged to deliver the record of decision under Rule 53.
  3. 3 Whether the procurement decision by a private medical scheme constitutes administrative action susceptible to judicial review.

Ratio Decidendi

The court held that the decision by GEMS to award the tender for medical courier pharmacy services was a commercial decision by a private entity and did not constitute administrative action or the exercise of public power. The relationship between GEMS and its members is contractual, and its procurement decisions are not subject to judicial review under Rule 53 or common law. The court found that Rule 6(5)(d)(iii) may be invoked to raise a dispositive point of law in a Rule 53 review. As the impugned decision is not reviewable, GEMS is not obliged to deliver the record of decision. The review application and interlocutory applications were dismissed with costs.

Court Disposition

Application dismissed. The review application and interlocutory applications by the applicant are dismissed with costs, including costs of two counsel where so employed.

Orders

  • The application by the first, second and third respondents in terms of the Rule 6(5)(d)(iii) notice succeeds with costs, including costs of opposition of the fourth and fifth respondents and costs of two counsel where so employed.
  • The application for review and the interlocutory applications by the applicant are dismissed with costs, including costs of two counsel where so employed.