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South Africa Judgment

Labour Court

Mabona v Formula 80 (J4075/99) [2001] ZALC 184 (22 October 2001)

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01

Holding and result

The court found that there was no evidence establishing any connection between Formula 3000 and the original respondent, Formula 80. The applicant failed to provide facts showing that section 197 of the Labour Relations Act was applicable or that Formula 3000 or Mr Errol Johnstone were successors to Formula 80. Furthermore, the authorities indicate that joining a respondent after judgment is generally not permissible. Even if it were, the applicant did not make out a case for such relief. Accordingly, the application to amend the court order and join additional respondents was dismissed.

Court disposition

Application dismissed with costs.

Orders

  • The application to amend the court order and to join Formula 3000 and Mr Errol Johnstone as respondents is dismissed with costs.

02

Material facts

Parties

Mashoabathe Earl Mabona

Applicant

Formula 80

Respondent

03

Procedural history

  1. Posture

    Urgent Application / Application to Amend Court Order and Join Additional Respondent After Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contended that Formula 80, the original respondent, had been deregistered and liquidated. He argued that a new company, Formula 3000, exists and that Mr Errol Johnstone is involved in this company. The applicant sought to amend the previous court order to substitute Formula 3000 for Formula 80 and to join Mr Johnstone as a further respondent, alleging continuity between the entities and involvement of Mr Johnstone.
Respondent
The respondent opposed the application, arguing that there was no proof of any connection between Formula 3000 and Formula 80. The respondent maintained that the facts did not support the application of section 197 of the Labour Relations Act and that the court lacked authority to join a respondent after judgment. The respondent asserted that no case had been made out for the relief sought.

05

Court’s reasoning

  1. 01

    Labour Relations Act 66 of 1995

    A court may not join a respondent after judgment has been granted unless a proper factual and legal basis is established.

  2. 02

    Labour Relations Act 66 of 1995

    Amendment of a court order post-judgment requires clear evidence of continuity or legal succession between the original and proposed respondents.

06

Ratio, limits and disposition

Ratio decidendi

The court found that there was no evidence establishing any connection between Formula 3000 and the original respondent, Formula 80. The applicant failed to provide facts showing that section 197 of the Labour Relations Act was applicable or that Formula 3000 or Mr Errol Johnstone were successors to Formula 80. Furthermore, the authorities indicate that joining a respondent after judgment is generally not permissible. Even if it were, the applicant did not make out a case for such relief. Accordingly, the application to amend the court order and join additional respondents was dismissed.

Obiter and limits

  • The liquidation and deregistration of the original employer does not automatically entitle an applicant to substitute or join new entities without proof of legal succession.
  • Section 197 of the Labour Relations Act requires factual evidence of transfer of business, which was absent in this case.

Court disposition

Application dismissed with costs.

  • The application to amend the court order and to join Formula 3000 and Mr Errol Johnstone as respondents is dismissed with costs.

Source and reliance status

Labour Court

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Judgment text

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Source document

Labour Court

Judgment

[2001] ZALC 184

3

JUDGMENT J4075/99-mc

Sneller Verbatim/mc

IN THE

LABOUR COURT OF SOUTH AFRICA

BRAAMFONTEIN CASE NO: J4075/99

2001-10-22

In the matter between

MASHOABATHE EARL MABONA Applicant

and

FORMULA 80 Respondent

______________

J U D G M E

N T

_______________

LANDMAN J: The applicant in this matter, Mr Mabona, obtained an arbitration award on 30 March 1999. The award was handed down by a commissioner of the CCMA.

The award was made against his employer Formula 80. On 14 December 1999 my sister REVELAS J, made the arbitration award an order of court in terms of section 158(1)(c) of the Labour Relations Act 66 of 1995. The respondent in that application and in respect of whom the award was made an order of court, was the entity known as Formula 80.

It appears that the entity known as Formula 80 was in fact a close corporation. It is common cause that this close corporation has been liquidated. Mr Mabona now seeks to amend the court order granted by my sister REVELAS J by inserting or changing the name Formula 80 to read Formula 3000. He also seeks to join Errol Johnstone as a further respondent to that order. Mr Mabona, motivates this by saying that the company known as Formula 80 has been deregistered. It has, of course, also been liquidated. He goes on to say that there is a new company called Formula 3000 and he alleges that Mr Errol Johnstone is involved in this company. It would appear that Mr Errol Johnstone was involved in the close corporation known as Formula 80. That is about the full extent of the facts which have been placed before me. There is no proof that the entity known as Formula 3000 has any connection with the CC known as Formula 80. This is not a case where any facts show that section 197 of the Labour Relations Act 66 of 1995 are applicable. There is also some doubt as to whether or not this court is entitled to join a respondent after judgment has been granted. The authorities would seem to indicate that this cannot be done. Nevertheless, on the facts before me, even if it can be done, no case been made out to do so. In the circumstances therefore the application is dismissed with costs. ___ A A Landman Judge of the Labour Court of South Africa

It appears that the entity known as Formula 80 was in fact a close corporation. It is common cause that this close corporation has been liquidated.

Mr Mabona now seeks to amend the court order granted by my sister REVELAS J by inserting or changing the name Formula 80 to read Formula 3000. He also seeks to join Errol Johnstone as a further respondent to that order. Mr Mabona, motivates this by saying that the company known as Formula 80 has been deregistered. It has, of course, also been liquidated. He goes on to say that there is a new company called Formula 3000 and he alleges that Mr Errol Johnstone is involved in this company. It would appear that Mr Errol Johnstone was involved in the close corporation known as Formula 80. That is about the full extent of the facts which have been placed before me.

There is no proof that the entity known as Formula 3000 has any connection with the CC known as Formula 80. This is not a case where any facts show that section 197 of the Labour Relations Act 66 of 1995 are applicable.

There is also some doubt as to whether or not this court is entitled to join a respondent after judgment has been granted. The authorities would seem to indicate that this cannot be done. Nevertheless, on the facts before me, even if it can be done, no case been made out to do so.

In the circumstances therefore the application is dismissed with costs.

___

A A Landman

Judge of the Labour Court of South Africa

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Labour Relations Act 66 of 1995

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