Logoslive (Pty) Ltd (Registration No. 2017/383828/07) v Member of the Executive Authority for Transport, Eastern Cape (182/2021) [2021] ZAECBHC 11 (10 August 2021)
- Citation
- [2021] ZAECBHC 11
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Eastern Cape High Court, Bhisho
- Panel
- Hartle
- Case number
- 182/2021
More details
- Court
- Eastern Cape High Court, Bhisho
- Panel
- Hartle
- Case number
- 182/2021
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the applicant had properly established urgency in launching the application, as evidenced by a longstanding unresolved issue regarding payment for a scholar transport contract. The respondent failed to comply with procedural requirements, ignored court directives, and acted in bad faith both in settlement negotiations and in court submissions. The respondent's conduct, including the failure to file answering papers or a condonation application and the attempt to shift costs to the applicant without factual basis, warranted a punitive costs order. The court held that the respondent is liable for the costs of the application, including reserved costs, on the attorney and client scale, to mark the court's displeasure at the respondent's conduct.
Court disposition
Costs awarded against the respondent on the attorney and client scale, including reserved costs.
Orders
- The respondent is liable to pay the costs of the application, including the reserved costs of 12 and 25 March 2021, on the scale of attorney and client.
02
Material facts
Parties
Logoslive (Pty) Ltd (Registration No. 2017/383828/07)
Applicant Counsel: Mr. MetuMember of the Executive Authority for Transport, Eastern Cape
Respondent Counsel: Mr. Nabela03
Procedural history
Posture
Civil Application / Costs Determination Following Settlement of Main Application
04
Questions and positions
Legal issues
- 01
Whether the respondent should be liable for the costs of the application, including reserved costs, on a punitive scale.
- 02
Whether the applicant acted with proper urgency in launching the application.
- 03
Whether the respondent's conduct justified a punitive costs order.
Party arguments
- Applicant
- The applicant argued that the matter was settled on the terms prayed for in the notice of motion and that the respondent failed to tender costs or file any answering papers, practice note, or heads of argument as required. The applicant maintained that urgency was properly established due to a longstanding struggle to resolve payment under a scholar transport contract, which necessitated approaching the court. The applicant requested costs on a punitive scale due to the respondent's conduct.
- Respondent
- The respondent, through counsel, argued for the first time in heads of argument that the applicant should bear all costs, contending that urgency was lacking when the application was launched and that the applicant had prematurely approached the court. The respondent failed to file any answering affidavit or condonation application and did not comply with the court's directives regarding submissions.
05
Court’s reasoning
Legal principles
- 01
Uniform Rules of Court
A party who fails to comply with court directives and acts in bad faith may be penalized with a punitive costs order to mark the court's displeasure.
- 02
Founding affidavit and case management practice
Urgency must be properly established for a matter to be entertained on an urgent basis; where urgency is demonstrated, costs may follow the result.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the applicant had properly established urgency in launching the application, as evidenced by a longstanding unresolved issue regarding payment for a scholar transport contract. The respondent failed to comply with procedural requirements, ignored court directives, and acted in bad faith both in settlement negotiations and in court submissions. The respondent's conduct, including the failure to file answering papers or a condonation application and the attempt to shift costs to the applicant without factual basis, warranted a punitive costs order. The court held that the respondent is liable for the costs of the application, including reserved costs, on the attorney and client scale, to mark the court's displeasure at the respondent's conduct.
Obiter and limits
- It is particularly rude and inconvenient for a party to ignore a court directive regarding the filing of papers and submissions.
- It is ironic to suggest that extra-curial resolution was possible when the respondent failed to respect the authority of the court and the rights of the applicant and affected learners.
- The respondent's conduct in settlement negotiations and in court demonstrated bad faith and justified a punitive costs order.
Court disposition
Costs awarded against the respondent on the attorney and client scale, including reserved costs.
- The respondent is liable to pay the costs of the application, including the reserved costs of 12 and 25 March 2021, on the scale of attorney and client.
Source and reliance status
Eastern Cape High Court, Bhisho
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Eastern Cape High Court, Bhisho
Judgment
NOT
REPORTABLE
IN
THE HIGH COURT OF SOUTH AFRICA
(EASTERN CAPE LOCAL DIVISION, BHISHO)
Case No. 182/2021
In the matter between:
LOGOSLIVE (PTY) LTD
(Registration No. 2017/383828/07) Applicant
and
MEMBER OF THE
EXECUTIVE AUTHORITY
FOR TRANSPORT,
EASTERN CAPE Respondent
JUDGMENT IN
RESPECT OF COSTS
HARTLE J
[1] This matter came before me on the opposed roll to determine the issue of costs only.
[2] The history of the matter and the circumstances under which two prior reserved costs orders were granted are fully set out in Mr. Metuâs heads of argument and do not bear repeating here.
[3] The application was settled on terms exactly as the applicant prayed for in the notice of motion.
[4] It is not clear why the respondent believed that she was not obliged to tender costs when the matter ultimately served before court on 25 March 2021 and the consent order aforesaid was made an order of court.
[5] No answering affidavit was ever put up, neither a notice in terms of rule 6 (5)(d)(iii) filed to suggest that there was a basis for the respondent to resist the issue of costs.
[6] During the course of case management, after the matter was enrolled for determination before me in respect of this aspect, I was indeed obliged to issue a directive in the absence of any answering papers, practice note or heads of argument having been filed by the respondent as is required in terms of the Uniform Rules of Court or Joint Rules of Practice calling upon her to file these by close of court on Monday, 2 August 2021 together with an appropriate application for condonation.
[7] In the directive I urged the respondent to indicate if she was still intent upon opposing the costs order sought against her alternatively encouraging her to reach agreement with the applicant regarding an appropriate consent order so that this courtâs time would not be wasted.
[8] Heads of argument were filed on 3 August 2021, but no application for condonation came forth.
[9] When I pointed out to Mr. Nabela, who appeared on the respondentâs behalf in court when the matter was called, that I considered it particularly rude and inconvenient to all concerned that my directive had been ignored, he could offer no apology or excuse claiming that he had no instructions on which to premise a factual basis to prepare a condonation application.
[10] I was stupefied by this explanation and indeed by the gall of the respondent to raise in the heads of argument for the first time a submission that all the costs should be borne by the applicant on the basis that urgency was lacking when the application was launched.
[11] Mr. Nabela sought to persuade me (on the applicantâs papers) that it had prematurely âjumpedâ to court, but the applicantâs founding affidavit instead demonstrates a longstanding struggle to sort out an important issue on the payment in respect of a scholar transport contract that indeed should not have required a resort to court but became particularly pressing and urgent to vindicate in court for the reasons indicated in the founding affidavit. I am satisfied that a case of urgency was properly made out for the matter to have been entertained on such a basis.
[12] It is ironic to suggest that an extra-curial resolve of the matter might come when months later the respondent could not even be bothered to respect the authority of this court, let alone the expectation of the applicant to be compensated in terms of a valid contract or the rights of the learners to a secure, reliable scholar transport service.
[13] The bad faith of the respondent is further shown in the fact that whereas she initially proposed in settlement negotiations that each party pay own costs, she came to court to argue a submission that the applicant should pay her costs.
[14] In the result I have no hesitation in acceding to the applicantâs request that costs be awarded on a punitive scale to mark the displeasure of this court both in respect of the respondentâs conduct in finalizing the matter responsibly and in the conduct of her officials leading to the necessity to approach this court for relief in the first place.
[15] I issue the following order:
1. The respondent is liable to pay the costs of the application, including the reserved costs of 12 and 25 March 2021, on the scale of attorney and client.
B
HARTLE
JUDGE
OF THE HIGH COURT
DATE OF HEARING: 5 August 2021
DATE OF JUDGMENT: 10 August 2021*
*Judgement delivered electronically to the parties by email on this date.
APPEARANCES:
For the applicant: Mr. Metu instructed by Sotenjwa Attorneys care of Potelwa Attorneys, King Williamâs Town (ref. NS/001/48).
For the respondent: Mr. Nabela instructed by the State Attorney, East London (ref. Ms Tyani).
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