Korbitec (Pty) Ltd and Another v eThekwini Municipality and Another (5984.2010) [2011] ZAKZDHC 90 (18 October 2011)

Korbitec (Pty) Ltd and Another v eThekwini Municipality and Another (5984.2010) [2011] ZAKZDHC 90 (18 October 2011)

The court found that the oral agreement between the municipality and Law Active (Pty) Ltd was concluded in 2003 under statutory authority and did not require a tender process, as no expenditure was incurred by the municipality. The arrangement was not reduced to writing but was implemented and operated for over seven years. The court held that the existence of the agreement did not amount to administrative action capable of review, and even if it did, the adverse consequences of setting aside the agreement would outweigh any technical statutory non-compliance. The court further found that Korbitec and the public were not entitled to direct electronic access to the municipality's rates...

Citation
[2011] ZAKZDHC 90
Parties
Applicant: Korbitec (Pty) Ltd; Applicant: Legalperfect Software Solutions (Pty) Ltd; Respondent: eThekwini Municipality; Respondent: Law Active (Pty) Limited
Court
Kwazulu-Natal High Court, Durban
Jurisdiction
South Africa
Judgment Date
18 October 2011
Case Number
5984/2010
Procedural Posture
Review Application / Judgment
Outcome
Application dismissed with costs, including costs of two counsel, jointly and severally against the applicants.
Judges
Mbatha
Legal Topics
Municipal Contracting, Exclusive Access to Public Data, Rates Clearance Certificates, Review of Administrative Action
Administrative Law Commercial and Corporate Municipal Contracting Exclusive Access to Public Data Rates Clearance Certificates Review of Administrative Action

Case Brief

Summary, issues, holding and outcome

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Parties

Korbitec (Pty) Ltd

Applicant

Legalperfect Software Solutions (Pty) Ltd

Applicant

eThekwini Municipality

Respondent

Law Active (Pty) Limited

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the oral agreement between the municipality and Law Active (Pty) Ltd constituted administrative action subject to review.
  2. 2 Whether the municipality was required to call for tenders before entering into the agreement with Law.
  3. 3 Whether Korbitec and the public are entitled to electronic access to the municipality's rates clearance data on terms no less favourable than those granted to Law.

Ratio Decidendi

The court found that the oral agreement between the municipality and Law Active (Pty) Ltd was concluded in 2003 under statutory authority and did not require a tender process, as no expenditure was incurred by the municipality. The arrangement was not reduced to writing but was implemented and operated for over seven years. The court held that the existence of the agreement did not amount to administrative action capable of review, and even if it did, the adverse consequences of setting aside the agreement would outweigh any technical statutory non-compliance. The court further found that Korbitec and the public were not entitled to direct electronic access to the municipality's rates...

Court Disposition

Application dismissed with costs, including costs of two counsel, jointly and severally against the applicants.

Orders

  • The application is dismissed with costs, including the costs consequent on the employment of two counsel.
  • Costs are ordered jointly and severally against the applicants, the one paying the other to be absolved.