Midway Two Contractors (Pty) Ltd and Another v South African Transport and Allied Workers Union and Another (JS711/13) [2018] ZALCJHB 448 (21 May 2018)

Midway Two Contractors (Pty) Ltd and Another v South African Transport and Allied Workers Union and Another (JS711/13) [2018] ZALCJHB 448 (21 May 2018)

The court found that the order granted on 8 August 2014 was erroneously made, as it awarded both reinstatement with retrospective effect and maximum compensation, which are mutually exclusive remedies under section 193(1) of the Labour Relations Act. Accordingly, the order was rescinded. The court declined to make the settlement agreement an order of court, finding that it was tainted by fraud perpetrated by Shongwe, who acted without proper authority and appropriated the settlement funds. The application for contempt was dismissed, as the applicants acted reasonably in believing the matter had been settled and did not act in wilful default or mala fides. The employees' application to set...

Citation
[2018] ZALCJHB 448
Parties
Applicant: Midway Two Contractors (Pty) Ltd; Applicant: Danny Naicker; Respondent: South African Transport and Allied Workers Union; Respondent: A Ntimane & 8 Others
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
21 May 2018
Case Number
JS711/13
Procedural Posture
Civil Application / Judgment on Application to Make Settlement Agreement an Order of Court and Related Contempt Proceedings
Outcome
Application to make the settlement agreement an order of court dismissed; original order rescinded; contempt application dismissed; application to set aside settlement agreement dismissed; registrar directed to refer judgment to SAPS; no order as to costs.
Judges
Van Niekerk
Legal Topics
Settlement Agreement, Ostensible Authority, Rescission of Judgment, Contempt of Court, Vicarious Liability
Labour Law Civil Procedure Settlement Agreement Ostensible Authority Rescission of Judgment Contempt of Court Vicarious Liability

Case Brief

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Parties

Midway Two Contractors (Pty) Ltd

Applicant

Danny Naicker

Applicant

South African Transport and Allied Workers Union

Respondent

A Ntimane & 8 Others

Respondent

Procedural Posture

Civil Application / Judgment on Application to Make Settlement Agreement an Order of Court and Related Contempt Proceedings

Legal Issues

  1. 1 Whether the respondents are estopped from disputing the validity of the settlement agreement concluded on 3 March 2016.
  2. 2 Whether the settlement agreement should be made an order of court under section 158(1)(c) of the Labour Relations Act.
  3. 3 Whether the applicants are in contempt of the order granted on 8 August 2014.

Ratio Decidendi

The court found that the order granted on 8 August 2014 was erroneously made, as it awarded both reinstatement with retrospective effect and maximum compensation, which are mutually exclusive remedies under section 193(1) of the Labour Relations Act. Accordingly, the order was rescinded. The court declined to make the settlement agreement an order of court, finding that it was tainted by fraud perpetrated by Shongwe, who acted without proper authority and appropriated the settlement funds. The application for contempt was dismissed, as the applicants acted reasonably in believing the matter had been settled and did not act in wilful default or mala fides. The employees' application to set...

Court Disposition

Application to make the settlement agreement an order of court dismissed; original order rescinded; contempt application dismissed; application to set aside settlement agreement dismissed; registrar directed to refer judgment to SAPS; no order as to costs.

Orders

  • The order granted by this court on 8 August 2014 is rescinded.
  • The application in terms of section 158(1)(c) to have the settlement agreement dated 3 March 2016 made an order of court is dismissed.