Jamie and Another v Ellis Park Stadium (PTY) Ltd (J1429/2017) [2020] ZALCJHB 267 (23 July 2020)

Jamie and Another v Ellis Park Stadium (PTY) Ltd (J1429/2017) [2020] ZALCJHB 267 (23 July 2020)

The court held that the applicants failed to join EPS and GLRU as parties in the original proceedings against EPWOS, despite being aware of the alleged business transfer at the time of trial. In line with the Screenex decision, the failure to join the new employer precludes enforcement of the judgment debt against EPS and GLRU under section 197 of the LRA. The evidence did not establish that EPWOS was a sham or that the entities abused their separate legal personalities to avoid liability, and thus there was no basis for piercing the corporate veil. The late reliance on section 200B of the LRA was procedurally improper and did not obviate the need for joinder. Accordingly, the application...

Citation
[2020] ZALCJHB 267
Parties
Applicant: Leanne Jamie; Applicant: Michelle Varner; Respondent: Ellis Park Stadium (PTY) Ltd; Respondent: Golden Lions Rugby Union (PTY) Ltd
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
23 July 2020
Case Number
J1429/2017
Procedural Posture
Urgent Application / Application to Enforce Judgment Debt Against Associated Entities Post Trial
Outcome
Application dismissed; in limine objection upheld; no order as to costs.
Judges
Lagrange
Legal Topics
Section 197 Transfer, Piercing Corporate Veil, Section 200b Joint Employer, Joinder of Parties, Automatic Unfair Dismissal
Labour Law Civil Procedure Section 197 Transfer Piercing Corporate Veil Section 200b Joint Employer Joinder of Parties Automatic Unfair Dismissal

Case Brief

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Parties

Leanne Jamie

Applicant

Michelle Varner

Applicant

Ellis Park Stadium (PTY) Ltd

Respondent

Golden Lions Rugby Union (PTY) Ltd

Respondent

Procedural Posture

Urgent Application / Application to Enforce Judgment Debt Against Associated Entities Post Trial

Legal Issues

  1. 1 Whether the judgment debt against EPWOS can be enforced against EPS and GLRU by virtue of section 197 of the LRA.
  2. 2 Whether the corporate veil can be pierced to hold EPS and GLRU jointly and severally liable for the judgment debt.
  3. 3 Whether section 200B of the LRA applies to render EPS and GLRU liable as joint employers.

Ratio Decidendi

The court held that the applicants failed to join EPS and GLRU as parties in the original proceedings against EPWOS, despite being aware of the alleged business transfer at the time of trial. In line with the Screenex decision, the failure to join the new employer precludes enforcement of the judgment debt against EPS and GLRU under section 197 of the LRA. The evidence did not establish that EPWOS was a sham or that the entities abused their separate legal personalities to avoid liability, and thus there was no basis for piercing the corporate veil. The late reliance on section 200B of the LRA was procedurally improper and did not obviate the need for joinder. Accordingly, the application...

Court Disposition

Application dismissed; in limine objection upheld; no order as to costs.

Orders

  • The in limine objection to the applicants' claim based on section 197 of the Labour Relations Act, 66 of 1995 is upheld.
  • The application is dismissed.