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South Africa Judgment

North Gauteng High Court, Pretoria

H.M.S v T.S (66405/2013) [2017] ZAGPPHC 48 (8 February 2017)

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01

Holding and result

The court found that the applicant had established a prima facie case for contribution to costs, given the lengthy marriage, the respondent's greater financial resources, and the need for equality before the law. The respondent's assets and income were substantially higher than the applicant's, and the respondent had been in contempt of previous orders, necessitating further litigation. However, the court considered the scale of costs claimed excessive and awarded a reduced contribution of R75,000.00, payable in two instalments, to enable the applicant to prepare and present her case adequately. Costs of the application were ordered to be costs in the main action.

Court disposition

Application for contribution to costs granted in part; respondent ordered to pay R75,000.00 to applicant in two instalments.

Orders

  • The respondent is to make an interim contribution to costs of preparation to the applicant in the sum of R75,000.00.
  • The respondent must pay R40,000.00 on or before 28 February 2017.
  • The respondent must pay R35,000.00 on or before 31 March 2017.
  • Costs of the application are to be costs in the main action.

02

Material facts

Parties

H.M.S

Plaintiff

T.S

Defendant

Amounts and remedies

  • Applicant's Requested Contribution to Costs: ZAR 202,120
  • Applicant's Awarded Contribution to Costs: ZAR 75,000
  • Respondent's Estate Value (may 2012): ZAR 11,011,856
  • Applicant's Convertible Assets: ZAR 224,646.37
  • Applicant's Monthly Income: ZAR 23,959
  • Applicant's Monthly Expenses: ZAR 26,190
  • Respondent's Monthly Income: ZAR 21,786
  • Respondent's Monthly Legal Expenses: ZAR 8,900
  • Respondent's Monthly Expenditure: ZAR 36,959.09

03

Procedural history

  1. Posture

    Urgent Application / Application for Interim Contribution to Costs Pending Divorce

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contends that she is entitled to a contribution towards her legal costs due to the lengthy marriage, the respondent's substantial assets, and her own limited means. She asserts that the respondent is in contempt of previous Rule 43 orders and has acted vexatiously, necessitating further litigation and costs. She claims the respondent's estate is valued at over R11 million, while her own assets are significantly less, and she owes her attorneys R48,065.83. She seeks R202,120.00 for trial preparation and legal fees, arguing that equality before the law requires she be enabled to present her case adequately.
Respondent
The respondent acknowledges the marriage and previous orders but argues that the applicant has sufficient assets and income to fund her own litigation, including two Sanlam policies worth over R770,000. He claims his own monthly income is R21,786.00, with legal expenses of R8,900.00 per month and rising monthly expenditure. He disputes the necessity and scale of the costs claimed and seeks discharge of the previous Rule 43 order, contending the applicant can afford to litigate without further contribution.

05

Court’s reasoning

  1. 01

    Chamani v Chamani 1979 (4) SA 804 (W)

    A spouse may seek a contribution towards legal costs pendente lite, founded on the duty to support, provided she shows a prima facie case and insufficient means.

  2. 02

    Van Rippen v Van Rippen 1949 (4) SA 634 (T)

    The court must exercise discretion judiciously, considering the financial position of the parties and the complexity of the issues, to enable the applicant to present her case adequately.

  3. 03

    Lyons v Lyons 1923 TPD

    An applicant for contribution must show a prima facie case if plaintiff, or bona fide defence if defendant, and insufficient means.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the applicant had established a prima facie case for contribution to costs, given the lengthy marriage, the respondent's greater financial resources, and the need for equality before the law. The respondent's assets and income were substantially higher than the applicant's, and the respondent had been in contempt of previous orders, necessitating further litigation. However, the court considered the scale of costs claimed excessive and awarded a reduced contribution of R75,000.00, payable in two instalments, to enable the applicant to prepare and present her case adequately. Costs of the application were ordered to be costs in the main action.

Obiter and limits

  • The parties must not be punished for disparities in their financial positions, but the court must ensure fairness and equality in access to justice.
  • There is no justification for charging fees at a higher scale given the employment of junior counsel in this matter.
  • The applicant is not entitled to all costs claimed; only reasonable and necessary costs for preparation and trial are awarded.

Court disposition

Application for contribution to costs granted in part; respondent ordered to pay R75,000.00 to applicant in two instalments.

  • The respondent is to make an interim contribution to costs of preparation to the applicant in the sum of R75,000.00.
  • The respondent must pay R40,000.00 on or before 28 February 2017.
  • The respondent must pay R35,000.00 on or before 31 March 2017.
  • Costs of the application are to be costs in the main action.

Source and reliance status

North Gauteng High Court, Pretoria

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Judgment text

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Source document

North Gauteng High Court, Pretoria

Judgment

[2017] ZAGPPHC 48

SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document in compliance with the law and SAFLII Policy

IN

THE HIGH COURT OF SOUTH AFRICA

GAUTENG DIVISION, PRETORIA

08/02/2017

CASE NO: 66405/2013

NOT

REPORTABLE

NOT

OF INTEREST TO OTHER JUDGES

REVISED

In the matter between:

S,

H M

Plaintiff

And

S, T

Defendant

JUDGMENT

TSHABALALA AJ

This is an application for contribution towards the Applicant's legal expenses in a pending divorce matter between the parties in terms of Rule 43 of the Rules of Court. The Applicant has approached this Court to seek an order that the Respondent make a contribution to costs in the sum of R202 120,00. The Applicant also seeks an order that the Respondent pay travelling costs of her attorney and counsel. The Respondent has filed a counter-application seeking an order for the discharge of the order handed down on 20 March 2014.

APPLICANT'S

CASE

[1] The Applicant and the Respondent were married to one another on 7 April 1973, out of community of property, with the exclusion of the accrual system.

[2] The Applicant, Plaintiff in the main action, instituted divorce proceedings against the Respondent during October 2013 in this Honourable Court. The Applicant has claimed 50% of the Respondent's assets in the divorce action. The Applicant contends that she is entitled to half of the estate of the Respondent due to the fact that the marriage is in excess of 40 years. The said marriage was concluded prior to 1984 and, is subject to section 7(3) of the Divorce Act, No. 70 of 1979 as contended by the Applicant.

[3] The Respondent has defended the divorce action and claimed forfeiture of the Applicant's right to share in his estate as well as an order that the Applicant transfer her half share in the matrimonial home to him, free of consideration.

[4] A rule 43 order was granted on 20 March 2014. It is also common cause that the Respondent is in contempt of the Rule 43 order of 20 March 2014.

[5] According to the Applicant, the Applicant has as a result of the Respondent's contempt of the Rule 43 order, issued a writ whereafter an attachment of R145 125,00 (one hundred and forty five thousand one hundred and twenty five rand) was made. The Respondent remains in arrears, and a further writ has been issued.

[6] The Applicant contends that she has also been forced to institute contempt of Court proceedings in respect of the Rule 43 order as well as three applications to compel due to the Respondent's attitude.

[7] The Applicant's application for a request for further particulars was successful in that the Respondent complied therewith but refused to tender wasted costs , necessitating the matter being heard in Court whereafter a costs order was granted in the Applicant's favour.

[8] The Applicant contends that the Respondent's attitude towards litigation against the Applicant is vexatious and frivolous.

THE RESPONDENT'S ASSETS

[9] The Applicant contends that the Respondent's estate was valued as follows as at May 2012:

[9.1] R11 011 856,00 excluding insurance and funeral policy accounts;

[9.2] R10 261 856,00 nett value, that is less R750,000.00 being the Applicant's half share to the immovable property. The Applicant further contends that the above was the version of the Respondent as at May 2012;

[9.3] Further, on the Respondent's version as submitted by the Applicant, the total value of the Respondent's investments and shares as at 30 May 2012 was R1 559 002,00. The Applicant has annexed "HMS11" being a copy of a schedule of assets drafted by the Respondent in May 2012.

[10] The Applicant is of the view that the Respondent has, at the very least, assets which can be converted to cash, with a value of not less than R1 559 002,00. The Applicant states that she has convertible assets in the amount of R224 646,37, and that she owes her attorneys legal fees in the amount of R48 065,83.

[11] The Applicant has filed a breakdown of legal costs for trial, annexure "HMS1O" for trial preparation and consultation up to and including the first day of trial for a total of R202 120,00. The hourly rate charged by each of the Applicant's attorney and counsel is indicated as R2 000,00 plus VAT per hour.

RESPONDENT'S

CASE

[12] The gist of the Respondent's reply to the Applicant's claim is the following:

[12.1] It is common cause that the Respondent and the Applicant were married to each other on 7 April 1973 out of community of property with the exclusion of accrual.

[12.2] He avers that he separated with the Applicant in December 2012, when the Applicant vacated the matrimonial home.

[12.3] He is aware of the Rule 43 Order of October 2013 made by the Honourable Phathudi J

[13] Regarding the valuation of his assets, the Respondent states at paragraph 5 of his answering affidavit and counterclaim that:

"The Court will glean from the list that I hold assets including a pension fund of approximately R4,77m. It includes a claim against the Applicant of R900 000.00, a claim that she disputes".

[14] Insofar as the investments of the Applicant are concerned, the Respondent states at paragraph 17 as follows:

"It is clear from Annexure "HMS6" that the Applicant can afford to litigate, even at the luxurious scale that she claims in this application. She has two Sanlam policies which in total is worth more than R770 000,00 which she can utilise to pay her attorneys. She has the financial means to pay for her own legal expenses".

[15] The relief to contribution to costs is available to a spouse pendente lite and is founded on the duty to support.

See: Chamani v Chamani 1979 (4) SA804 (W)

[15.1] An Applicant for a contribution towards costs must show that, if she is the Plaintiff in the main action, that she has a prima facie case, if she is a Defendant that she is defending in good faith. See Lyons v Lyons 1923 TPD. The Applicant must further show that she has insufficient means of her own.

In Van Rippen v Van Rippen 1949(4) SA 634(1) the Court held that:

"In the exercise of that discretion in regard to a costs contribution the Court should, I think, have the dominant view that, having regard to the circumstances of the case, the financial position of the parties, and the particular issues involved in the pending litigation, the wife must be enabled to present her case adequately before Court. In any such assessment the question of essential disbursements must necessarily be a very material factor... The paramount consideration is that, as I have indicated, the Court should have as its object the determination of an amount which in its discretion it considers necessary for the wife adequately to place her case before the Court".

[15.2] In this matter the parties have been married for a considerable amount of time, that is in excess of 40 years. The parties have placed before the Court their financial ability which the Court has to consider. The Court has to consider the complexity of issues in the matter and all the circumstances of the case. The Court has to exercise its discretion judiciously.

[16] It is important to mention that the Respondent does not challenge the Applicant's right to approach the Court for contribution to legal costs, the Respondent contends that the Applicant is employed and has assets of her own .The Respondent concedes that the "parties are entitled to the right to equality before the law and to equal protection before the law".

[17] The Respondent in this matter has stated that he earns the monthly amount of R14 460,00. It later comes to light that the Respondent

earns a total amount of R21 786,00. This is not due to misrepresentation but due to further amounts that the Respondent earns as a lecturer. The Respondent has assets worth approximately R4 774 887,00. The Respondent states that he pays the amount of R8

900,00 per month towards his legal costs. The Respondent's monthly expenditure was R13 936,00 per month, it has now risen to R36 959,09 per month.

[18] The Applicant earns R23,959.00 per month, her expenses are R26,190.00 per month. The Applicant's nett value of her assets is R1 289 931,00.

[19] It is common cause that the Applicant was compelled to bring various applications against the Respondent due to Respondent's attitude of non-compliance with requests for information. The Respondent is also in contempt of the Rule 43 order of October 2014.

[20] The Respondent currently pays the amount of R8 900,00 per month for his legal fees. It is the view of the Applicant that the Respondent has been paying this amount but there is no conclusive evidence before this Court. It is fair that the Appellant has access to funds to contest the legal action on an equal basis as required by S 9 of the Constitution of the Republic of South Africa. Having regard to the circumstances of this matter and the financial position of the parties, especially the fact that the Respondent has far more considerable assets than the Applicant, I am satisfied that the Applicant has shown a prima facie case in this matter. The Respondent must not be punished though for having more assets than the Applicant. The parties have employed junior counsel in this matter, there is no reason to charge fees at a higher scale at this stage. I am also of the view that the Applicant is not entitled to all the costs set out in her Annexure "HMS10". I consider it reasonable in the circumstances that the Applicant be awarded contribution to costs in the amount of R75,000,00 up to the first day and including all necessary preparation.

In the result, I make the following order:

1. That the Respondent is to make an interim contribution to costs of preparation to the Applicant in the sum of R75 000,00.

2. That the Respondent pay the amount as follows:

2.1 R40, 000.00 on or before 28 February 2017.

2.2 R35, 0.00.00 on or before 31 March 2017.

3. That the costs of the application be costs in the main action.

_____

D. B. TSHABALALA

ACTING

JUDGE OF THE HIGH COURT

6/7/2017

Matter heard on: 12 December 2016

Delivered on:

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Chamani v Chamani 1979 (4) SA 804 (W)

Case cited

Van Rippen v Van Rippen 1949 (4) SA 634 (T)

Case cited

Lyons v Lyons 1923 TPD

Case cited

Divorce Act, No. 70 of 1979

Legislation

Legislation referenced in the available case record.

Constitution of the Republic of South Africa

Legislation

Legislation referenced in the available case record.

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