Lesedi News CC v Rustenburg Local Municipality (4/14) [2014] ZANWHC 35 (6 November 2014)

Lesedi News CC v Rustenburg Local Municipality (4/14) [2014] ZANWHC 35 (6 November 2014)

The Full Bench held that the respondent's decision to require the appellant to dismantle advertising structures was not administrative action under PAJA. The relationship between the parties was governed by contract, concluded on equal terms after a tender process, and the respondent's power to act derived from the contract, not from statute or a position of public authority. The statutory framework and by-laws were incorporated into the contract, but the impugned decision was made pursuant to contractual terms, not as an exercise of public power. The authorities relied upon by the appellant were distinguished, and the court followed binding precedent that termination of contracts in...

Citation
[2014] ZANWHC 35
Parties
Appellant: Lesedi News CC; Respondent: Rustenburg Local Municipality
Court
North West High Court, Mafikeng
Jurisdiction
South Africa
Judgment Date
6 November 2014
Case Number
4/14
Procedural Posture
Civil Appeal / Full Bench Appeal From Review Application
Outcome
Appeal dismissed with costs.
Judges
A.M. Kgoele, R.D. Hendricks, Samkelo Gura
Legal Topics
Promotion of Administrative Justice Act, Municipal Powers, Contractual Termination, Outdoor Advertising, Public Power Vs Contract, Review of Administrative Action

Case Brief

Summary, issues, holding and outcome

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Parties

Lesedi News CC

Appellant

Rustenburg Local Municipality

Respondent

Procedural Posture

Civil Appeal / Full Bench Appeal From Review Application

  1. 1 Is the respondent's decision to require dismantling of the appellant's advertising structures an administrative action under PAJA?
  2. 2 Does the contractual relationship between the parties exclude the application of administrative law remedies?
  3. 3 Was the impugned decision authorised by statute or by contract?

Ratio Decidendi

The Full Bench held that the respondent's decision to require the appellant to dismantle advertising structures was not administrative action under PAJA. The relationship between the parties was governed by contract, concluded on equal terms after a tender process, and the respondent's power to act derived from the contract, not from statute or a position of public authority. The statutory framework and by-laws were incorporated into the contract, but the impugned decision was made pursuant to contractual terms, not as an exercise of public power. The authorities relied upon by the appellant were distinguished, and the court followed binding precedent that termination of contracts in...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.