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South Africa Judgment

South Gauteng High Court, Johannesburg

Mnguni and Others v City of Johannesburg and Others (29769/2018) [2018] ZAGPJHC 546 (28 August 2018)

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Source document

01

Holding and result

The court held that there is no legal basis to compel the second and third respondents to enter into settlement negotiations with the City of Johannesburg or to allow the applicants to negotiate directly with the City regarding the municipal water debt, as the applicants are not parties to the relevant service agreement. The applicants' own rental arrears contributed to the situation, undermining their claim for relief. The constitutional right to water is recognized but subject to limitation; the City undertook to provide restricted water supply as required. The counter-application for eviction failed to meet the urgency requirements under PIE and did not comply with statutory notice provisions. Accordingly, the main application was granted only to the extent of ordering restricted water supply, and the counter-application was struck off the roll for lack of urgency.

Court disposition

Main application partially granted; counter-application struck off the roll for lack of urgency; each party to bear its own costs.

Orders

  • The City of Johannesburg is ordered to provide the applicants with restricted water supply, including but not limited to an alternative tap, before midnight of 17 August 2018.
  • The counter-application for eviction is struck off the roll for lack of urgency.
  • Each party is to bear its own costs.

02

Material facts

Parties

Innocent Mbuso Mnguni and 73 Others

Applicant Counsel: Adv Mhlanga

City of Johannesburg

Respondent Counsel: Adv Tshigomana

Leapfrog Property Trust

Respondent Counsel: Adv Schlueb

Body Corporate of KingsLengeley

Respondent Counsel: Adv Schlueb

Amounts and remedies

  • Municipal Water Debt: ZAR 1,282,336.42
  • First Applicant Monthly Rental Paid: ZAR 2,500
  • First Applicant Monthly Rental Due: ZAR 4,100

03

Procedural history

  1. Posture

    Urgent Application / Reasons for Order Issued on 17 August 2018

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants argued that the respondents' failure to pay the municipal water account resulted in the disconnection of water supply to their premises. They sought orders compelling the respondents to settle the debt or enter into a settlement agreement with the City, alternatively to allow the applicants to negotiate directly with the City and make payments until the debt was settled. They also sought immediate reconnection of water supply, asserting their constitutional right to water.
Respondent
The first respondent (City of Johannesburg) submitted that it was not opposed to engaging with the applicants regarding repayment of arrears but maintained that the applicants were not contractual parties to the municipal account. The second and third respondents opposed the relief sought, highlighting that the applicants themselves were in arrears with rental payments, which contributed to the inability to settle the municipal debt. In the counter-application, the respondents sought urgent eviction of certain applicants under PIE, but failed to comply with statutory notice requirements.

05

Court’s reasoning

  1. 01

    Common law of contract

    A court cannot compel parties to a contract to enter into settlement negotiations at the behest of a third party not privy to the contract.

  2. 02

    Section 27 of the Constitution

    Tenants' constitutional right to water is subject to limitation and must be balanced against contractual obligations and municipal regulations.

  3. 03

    Section 5(1) and 5(2) of the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act, 19 of 1998

    Urgent eviction applications under PIE require compliance with statutory notice requirements and demonstration of urgency.

06

Ratio, limits and disposition

Ratio decidendi

The court held that there is no legal basis to compel the second and third respondents to enter into settlement negotiations with the City of Johannesburg or to allow the applicants to negotiate directly with the City regarding the municipal water debt, as the applicants are not parties to the relevant service agreement. The applicants' own rental arrears contributed to the situation, undermining their claim for relief. The constitutional right to water is recognized but subject to limitation; the City undertook to provide restricted water supply as required. The counter-application for eviction failed to meet the urgency requirements under PIE and did not comply with statutory notice provisions. Accordingly, the main application was granted only to the extent of ordering restricted water supply, and the counter-application was struck off the roll for lack of urgency.

Obiter and limits

  • The applicants' framing of relief was ill-conceived and failed to appreciate the contractual relationships involved.
  • The City of Johannesburg's willingness to provide restricted water supply aligns with its constitutional obligations.
  • Failure by tenants to pay rental undermines the landlord's ability to meet municipal obligations, which in turn affects service delivery.

Court disposition

Main application partially granted; counter-application struck off the roll for lack of urgency; each party to bear its own costs.

  • The City of Johannesburg is ordered to provide the applicants with restricted water supply, including but not limited to an alternative tap, before midnight of 17 August 2018.
  • The counter-application for eviction is struck off the roll for lack of urgency.
  • Each party is to bear its own costs.

Source and reliance status

South Gauteng High Court, Johannesburg

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Judgment reading view

Judgment text

The complete available source text.

Source document

South Gauteng High Court, Johannesburg

Judgment

[2018] ZAGPJHC 546

REPUBLIC

OF SOUTH AFRICA

IN

THE HIGH COURT OF SOUTH AFRICA

GAUTENG LOCAL DIVISION, JOHANNESBURG

CASE NO: 29769/2018

In the matter between:

INNOCENT MBUSO MNGUNI AND 73 OTHERS Applicants

and

THE

CITY OF JOHANNESBURG First

Respondent

Leapfrog Property Trust Second

Respondent

Body Corporate of KingsLengeley Third

Respondent

In re

JACQUES

PIETER GROVE N.O. First

Applicant

GEORGE

FREDERICK ROBERTSON N.O. Second

Applicant

INNOCENT

MBUSO MNGUNI First

Respondent

CAROL NXUMALO Second

Respondent

MANDISA

PETRONELLA MVUNGAMA Third

Respondent

PRINCE NDLOVU Fourth

Respondent

TF GOREMUSANDU AND 42 OTHERS Fifth

Respondents

THE

CITY OF JOHANNESBURG Sixth

Respondent

JUDGMENT (REASONS)

PETERSEN AJ:

Introduction

[1] This matter came before me as an urgent application on 14 August 2018. The following order was issued:

The Main Application

1. The first respondent is ordered to provide the applicants’ with restricted water supply including but not limited to an alternative tap before midnight of the 17 August 2018.

The Counter Application

1. The application is struck off the roll for lack of urgency.

Costs

The parties are to bear their own costs.

The main application

[2] The nub of the relief sought by the applicants’ is found at paragraphs 2, 3 and 4 of the Notice of Motion:

“2. That the Second and Third Respondents be directed to forthwith pay its debt of R1 282 336.42, to the First Respondent, or enter into a settlement agreement with the First Respondent, leading to immediate reconnection of water supply to the Applicants.

3. That failing prayer 2 herein above, the Applicants’ be authorised to directly approach the City of Johannesburg, negotiate

immediate restoration of water supply in the property and be authorised to make payments directly to the City of Johannesburg’s

Account until the debt of R1 282 336.42 is paid in full.

4. That the First Respondent is hereby ordered, with immediate effect, to reconnect water supply at the applicant’s premises, situated at number 3 Paul Nel corner Quartz Streets Hillbrow in Johannesburg also known as “KINGSLANGLEY FLAT”.”

The counter application

[3] In the counter application the second and third respondents’ as represented by Grove and Robertson sought the eviction of the applicants’ Mnguni, Nxumalo, Mvunguma and Ndlovu on an urgent basis in terms of section 5(1) of the PIE, accompanied by an application for condonation for the failure to serve the requisite section 5(2) notice.

The relief sought in the main application

[4] The relief sought at paragraph 2 of the Notice of Motion seeking an order that the second and third respondents be ordered to enter into a settlement agreement in respect of the arrears water account with the first respondent is unprecedented. The same applies to the relief sought at paragraph 3 of the Notice of Motion.

[5] There is no basis in law for this court to compel a party to a contractual relationship to engage in settlement negotiations at the behest of a third party who is not a party to the contractual relationship. Similarly there is no basis for this court to issue an order that the applicants’ be allowed to engage in negotiations with the first respondent. The relief sought is fallacious.

[6] In the ordinary course the lease agreements between the applicants’ and the second respondent entitle the applicants’ to have sight of the municipal account of the second respondent which it holds with the first respondent. The first respondent submitted that it is not averse to engaging with the applicants’ on the repayment of the arrears. This view of the first respondent follows logically, the first respondent has a debt due to it and its primary objective is the servicing of the debt. Seeking an order from the court, however, to endorse the applicants’ negotiations with the first respondent is misplaced and ill-conceived, considering the fact that they are not contractual parties to the service agreement with the first respondent.

[7] The fourth prayer seeking an order that the first respondent without further ado reconnects the water supply is without basis.

[8] The applicants’ portrayed themselves as victims of the second respondent’s alleged remissness in paying the water bill. In seeking to draw an analogy or comparison between the monthly rentals paid for July 2018, the lease amounts reflected in the lease agreement and a reconciliation provided by the second respondent of rentals due and outstanding, the applicants’ highlighted their own shortcomings. I single out the example utilised by counsel for the applicants’ in respect of the first applicant. Given the disparities between the lease amount as it should currently be three years after he took occupation, what is reflected as the initial lease amount R4100.00 per month, the first applicant has not paid his dues in full, having paid only R2500.00. As one embarks on a comparative analysis with some of the other applicants’ a similar pattern emerges. The applicants’ further surreptitiously indicate on oath that they may be in arrears with their rental. Logically, if the tenants fail to pay their dues as contractually obliged, the landlord cannot pay its dues in terms of its contractual obligation with the municipality. The urgent application by the applicants’ framed in the relief sought was ill-conceived.

[9] The applicants’ are constitutionally entitled to water, but the right is subject to limitation. The first respondent gave an undertaking that it would provide an alternative or limited supply of water as it is constitutionally obliged to do. The undertaking was well-founded.

The relief sought in the counter application

[10] The applicants’ in the counter-application took a position akin to a knee jerk reaction or so-called tit-for-tat approach when confronted with the main application. Whilst they maintain instructions had been received for such an application which was imminent, this court was not convinced by the argument. The application sought to single out four (4) of the applicants’ in the main application for eviction on an urgent basis when the facts deposed to demonstrated a reaction to the cut water supply from the tenants collectively. The body of tenants on the papers had further mandated the first respondent in the counter application to represent them. Without giving the requisite notice of the intended application to the affected parties and seeking condonation for failure to comply with the prescripts of the law in this regard, was in my view misplaced considering the timing of the application.

[11] The counter-application failed to make a case for urgency within the parameters of section 5(1) of PIE.

[12] In brief these are the reasons for the order issued on 17 August 2018.

______

AH

PETERSEN

ACTING JUDGE OF THE HIGH COURT OF

SOUTH AFRICA

For the Applicants: Adv Mhlanga

Instructed by: Ezenwa Attorneys

For the First Respondent: Adv Tshigomana

Instructed by: Ramatshila-Mugeri Attorneys

For the Second and Third Respondents: Adv Schlueb

Instructed by: Vermaak and Partners Inc.

Date Heard: 17 August 2018

Date of Reasons for Judgment: 28 August 2018

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Section 27 of the Constitution

Legislation

Legislation referenced in the available case record.

Prevention of Illegal Eviction from and Unlawful Occupation of Land Act, 19 of 1998

Legislation

Legislation referenced in the available case record.

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