Mmethi v DNM Investment CC t/a Bloemfontein Celtics Football Club (JS 1298/09) [2010] ZALC 143; [2011] 3 BLLR 268 (LC) ; (2011) 32 ILJ 659 (LC) (1 October 2010)

Mmethi v DNM Investment CC t/a Bloemfontein Celtics Football Club (JS 1298/09) [2010] ZALC 143; [2011] 3 BLLR 268 (LC) ; (2011) 32 ILJ 659 (LC) (1 October 2010)

The Labour Court retains jurisdiction over disputes even where an arbitration clause exists in the employment contract. However, where parties have consensually agreed to refer disputes to private arbitration, the court should be slow to exercise its discretion to entertain the matter unless special circumstances exist. In this case, no special circumstances or unlawfulness were present to justify the court proceeding with the matter. The applicant should exhaust the agreed internal remedy of arbitration, and the court will retain supervisory jurisdiction over the process. Accordingly, the respondent's point in limine is upheld and the proceedings are stayed pending arbitration.

Citation
[2010] ZALC 143
Parties
Applicant: Soul Mmethi; Respondent: DNM Investment CC t/a Bloemfontein Celtics Football Club
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
1 October 2010
Case Number
JS 1298/09
Procedural Posture
Stay Application / Trial Judgment on Jurisdictional Point in Limine
Outcome
Application stayed pending referral to arbitration; no order as to costs.
Judges
Molahlehi
Legal Topics
Arbitration Clause, Stay of Proceedings, Jurisdiction of Labour Court, Fixed Term Contract, Operational Requirements Dismissal
Labour Law Civil Procedure Arbitration Clause Stay of Proceedings Jurisdiction of Labour Court Fixed Term Contract Operational Requirements Dismissal

Case Brief

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Parties

Soul Mmethi

Applicant

DNM Investment CC t/a Bloemfontein Celtics Football Club

Respondent

Procedural Posture

Stay Application / Trial Judgment on Jurisdictional Point in Limine

Legal Issues

  1. 1 Does the arbitration clause in the employment contract oust the jurisdiction of the Labour Court to hear the dispute?
  2. 2 Should the proceedings be stayed pending private arbitration as agreed by the parties?
  3. 3 Are there special circumstances justifying the court entertaining the matter despite the arbitration agreement?

Ratio Decidendi

The Labour Court retains jurisdiction over disputes even where an arbitration clause exists in the employment contract. However, where parties have consensually agreed to refer disputes to private arbitration, the court should be slow to exercise its discretion to entertain the matter unless special circumstances exist. In this case, no special circumstances or unlawfulness were present to justify the court proceeding with the matter. The applicant should exhaust the agreed internal remedy of arbitration, and the court will retain supervisory jurisdiction over the process. Accordingly, the respondent's point in limine is upheld and the proceedings are stayed pending arbitration.

Court Disposition

Application stayed pending referral to arbitration; no order as to costs.

Orders

  • The applicant’s claim is stayed pending referral to arbitration and determination of the dispute by the Dispute Resolution Chamber as contemplated in the National Soccer League’s constitution.
  • There is no order as to costs.