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South Africa Judgment

Labour Court Johannesburg

LA Crushers (Pty) Ltd v Commission for Conciliation, Mediation and Arbitration and Others (JR2275/11; J1960/17) [2020] ZALCJHB 40 (14 February 2020)

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The Court found that the applicant's withdrawal of the review application was bona fide and based on the legal position prevailing at the time, which was subsequently changed by the Constitutional Court. The review application was unopposed, and the third respondent did not enforce the arbitration award for three years. The right to be heard, protected by the Constitution, supports reinstatement of the review application, especially since it was never decided on its merits. There was no prejudice to the third respondent, and no impediment to reinstatement was found.

Court disposition

Application for reinstatement of the review is granted.

Orders

  • The application for review under case number JR 2275/11 is reinstated.

02

Material facts

Parties

LA Crushers (Pty) Ltd

Applicant Counsel: C.J Geldenhuys

Commission for Conciliation, Mediation and Arbitration

Respondent Counsel: Advocate M. Maholo

Commissioner Josias Maake N.O

Respondent

NUM obo Molimi Richards and 3 Others

Respondent

03

Procedural history

  1. Posture

    Review Application / Application to Reinstate Withdrawn Review

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that the answering affidavit of the third respondent was filed five months late without a condonation application and should be disregarded. The review application was withdrawn based on the legal position at the time, which held that arbitration awards prescribed after three years. The applicant contended that the subsequent change in law by the Constitutional Court rendered the withdrawal unnecessary and justified reinstatement.
Respondent
The third respondent conceded that its answering affidavit was not properly before the Court. No substantive opposition was presented to the reinstatement application, and the third respondent did not enforce the arbitration award for three years after it was issued.

05

Court’s reasoning

  1. 01

    Myathaza v Johannesburg Metropolitan Bus Services (SOC) Limited t/a Metrobus and Others (2017) 38 ILJ 527 (CC); [2017] 3 BLLR 213 (CC)

    Arbitration awards issued under the Labour Relations Act do not prescribe, as the Prescription Act does not apply to such matters.

  2. 02

    Constitution of the Republic of South Africa, Act 108 of 1996

    The right to be heard is protected under the Constitution and should not be denied without good reason.

06

Ratio, limits and disposition

Ratio decidendi

The Court found that the applicant's withdrawal of the review application was bona fide and based on the legal position prevailing at the time, which was subsequently changed by the Constitutional Court. The review application was unopposed, and the third respondent did not enforce the arbitration award for three years. The right to be heard, protected by the Constitution, supports reinstatement of the review application, especially since it was never decided on its merits. There was no prejudice to the third respondent, and no impediment to reinstatement was found.

Obiter and limits

  • A party's bona fide reliance on the prevailing legal position at the time of withdrawal may justify reinstatement when the law changes.
  • The failure to enforce an arbitration award for an extended period may be relevant to the question of prejudice.

Court disposition

Application for reinstatement of the review is granted.

  • The application for review under case number JR 2275/11 is reinstated.

Source and reliance status

Labour Court Johannesburg

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Judgment reading view

Judgment text

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Source document

Labour Court Johannesburg

Judgment

[2020] ZALCJHB 40

IN THE LABOUR COURT OF SOUTH AFRICA, JOHANNESBURG

Not Reportable

Case No: JR 2275/11

J 1960/17

In the matter between:

LA CRUSHERS (PTY) LTD

Applicant

and

THE COMMISSION FOR

CONCILATION

MEDIATION AND ARBITRATION First

respondent

COMMISSIONER JOSIAS MAAKE N.O Second

Respondent

NUM obo MOLIMI RICHARDS AND 3 OTHERS Third Respondent

Heard: 31 October 2019

Delivered: 14 February 2020

JUDGMENT

LALLIE, J

[1] This is an application to reinstate an application for review which had been withdrawn by the applicant. The third respondent filed its answering affidavit five months late. The applicant objected to the delay but the third respondent failed to file a condonation application. The applicant argued that the answering affidavit should be disregarded and the application heard on an unopposed basis. Counsel for the third respondent conceded that the answering affidavit was not properly before Court. In light of the concession, the application will be decided on the unopposed basis.

[2] The individual third respondents were employed by the applicant. They were dismissed for misconduct and referred an unfair dismissal dispute to the first respondent which in an award issued on 26 September 2011, found their dismissal unfair and ordered the applicant to pay them compensation. The applicant launched an application to have the arbitration award reviewed and set aside. The application was unopposed. It was set down for hearing on 23 February 2016 but was withdrawn by the applicant before the matter was heard. The reason for the withdrawal was that when the application was launched, the legal position was that arbitration awards prescribed after three years of being issued.

[3] The legal position changed when the Constitutional Court in Myathaza v Johannesburg Metropolitan Bus Services (SOC) Limited t/a Metrobus and Others[1] held that arbitration awards did not prescribe as the Prescription Act[2] is not applicable to matters pursued under the Labour Relations Act (LRA)[3]. The change nullified the basis of the applicant’s decision to withdraw its review application necessitating the application at hand.

[4] The review application was unopposed and the applicant’s withdrawal was bona fide based on the legal position prevailing at the time. A decision reinstating the review application will not prejudice the third respondent which elected not to enforce the arbitration award for three years after it had been issued.

[5] The right to be heard finds protection in the Constitution[4] and cannot be denied easily. As the application for review was not considered and brought to finality on its merits, I could find no impediment to have the review application reinstated particularly when the circumstances of this case including the reason for its withdrawal are taken into account.

[6] In the premises, the following order is made:

Order

1. The application for review under case number JR 2275/11 is reinstated.

________

Z Lallie

Judge of the Labour Court of South Africa

Appearances

For the Applicant: C.J Geldenhuys of Geldenhuys @ Law Incorporated

For the Respondent: Advocate M. Maholo

Instructed by: E.S Makinta Attorneys

[1] (2017) 38 ILJ 527 (CC); [2017] 3 BLLR 213 (CC).

[2] Act 68 of 1969

[3] Act 66 of 1995

[4] Act 108 of 1996.

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

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

Myathaza v Johannesburg Metropolitan Bus Services (SOC) Limited t/a Metrobus and Others (2017) 38 ILJ 527 (CC); [2017] 3 BLLR 213 (CC)

Case cited

Prescription Act 68 of 1969

Legislation

Legislation referenced in the available case record.

Labour Relations Act 66 of 1995

Legislation

Legislation referenced in the available case record.

Constitution of the Republic of South Africa, Act 108 of 1996

Legislation

Legislation referenced in the available case record.

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