Manana v King Sabata Dalindyebo Local Municipality (PA01/2024) [2025] ZALAC 27; (2025) 46 ILJ 1899 (LAC) (7 May 2025)

Manana v King Sabata Dalindyebo Local Municipality (PA01/2024) [2025] ZALAC 27; (2025) 46 ILJ 1899 (LAC) (7 May 2025)

The appeal was dismissed because the principle of ostensible authority cannot override statutory requirements for delegation of authority in organs of state. Section 59 of the Municipal Systems Act requires written delegation and council approval for sub-delegation of authority to settle disputes. Mr Nodo lacked such authority, and his unilateral actions could not bind the Municipality. The invocation of ostensible authority or estoppel is untenable where the legality principle is implicated, as courts cannot sanction illegality. The Labour Court correctly found that the Municipality was not bound by the settlement agreement, and there was no basis to award punitive costs.

Citation
[2025] ZALAC 27
Parties
Appellant: M.C Manana; Respondent: King Sabata Dalindyebo Local Municipality
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
7 May 2025
Case Number
PA 01/2024
Procedural Posture
Civil Appeal / Appeal From Labour Court; Enforcement of Settlement Agreement Under S 158(1)(c) LRA
Outcome
Appeal dismissed; no order as to costs.
Judges
Van Niekerk, Nkutha-Nkontwana, Mooki
Legal Topics
Enforcement of Settlement Agreement, Ostensible Authority, Delegation of Powers, Principle of Legality, Municipal Systems Act, Costs in Labour Matters
Labour Law Civil Procedure Enforcement of Settlement Agreement Ostensible Authority Delegation of Powers Principle of Legality Municipal Systems Act Costs in Labour Matters

Case Brief

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Parties

M.C Manana

Appellant

King Sabata Dalindyebo Local Municipality

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court; Enforcement of Settlement Agreement Under S 158(1)(c) LRA

Legal Issues

  1. 1 Whether the Municipality is bound by the settlement agreement based on ostensible authority.
  2. 2 Whether ostensible authority or estoppel can be invoked against an organ of state where statutory delegation is required.
  3. 3 Whether the sub-delegation of authority to sign settlement agreements was validly made to Mr Nodo.

Ratio Decidendi

The appeal was dismissed because the principle of ostensible authority cannot override statutory requirements for delegation of authority in organs of state. Section 59 of the Municipal Systems Act requires written delegation and council approval for sub-delegation of authority to settle disputes. Mr Nodo lacked such authority, and his unilateral actions could not bind the Municipality. The invocation of ostensible authority or estoppel is untenable where the legality principle is implicated, as courts cannot sanction illegality. The Labour Court correctly found that the Municipality was not bound by the settlement agreement, and there was no basis to award punitive costs.

Court Disposition

Appeal dismissed; no order as to costs.

Orders

  • The appeal is dismissed.
  • There is no order as to costs.