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South Africa Judgment

Labour Court Johannesburg

Mtinde v Sheriff Johannesburg East and Others (J1104/2018) [2019] ZALCJHB 316 (29 October 2019)

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01

Holding and result

The court found that the applicant had been aware of the taxed bill of costs and the respondents' intention to enforce it since mid-May 2019. Despite being afforded opportunities to object to the bill and make settlement offers, the applicant failed to act timeously. The right to review the taxing master's decision in terms of Rule 10 had lapsed, as no review application was filed within the prescribed period. The delay in bringing the present application rendered any urgency self-created. Consequently, the application was struck from the roll for lack of urgency. The court exercised its discretion under section 162 of the LRA and declined to make a costs order against the applicant, noting the reluctance to award costs against individual employees pursuing perceived rights.

Court disposition

Application struck from the roll for lack of urgency; no order as to costs.

Orders

  • The application is struck from the roll for lack of urgency.
  • There is no order as to costs.

02

Material facts

Parties

Lumko Mtinde

Applicant Counsel: Adv. Serwarweng

Sheriff Johannesburg East

Respondent Counsel: Adv. L Monnakgotla

Universal Services and Access Agency

Respondent Counsel: Adv. L Monnakgotla

Chairperson and Board of USAASA

Respondent Counsel: Adv. L Monnakgotla

Minister of Communications and Digital Technology

Respondent Counsel: Adv. L Monnakgotla

Amounts and remedies

  • Taxed Bill of Costs: ZAR 512,091.49

03

Procedural history

  1. Posture

    Urgent Application / Application to Stay Writ of Execution Pending Review of Taxed Bill of Costs

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that the matter was urgent because his assets were attached to satisfy a taxed bill of costs and the sheriff was proceeding with execution. He contended that the bill of costs was served on the wrong attorneys and that he intended to review and set aside the costs order. He claimed to have made an offer to settle, which was refused, and sought a stay of execution pending the outcome of the review application.
Respondent
The respondents argued that any urgency was self-created, as the applicant had been aware of the bill of costs since May 2019 and failed to object or take steps to review the taxation within the prescribed period. They contended that the writ of execution was served in September 2019 and the application was only filed a month later, demonstrating a lack of genuine urgency. They opposed the stay and sought to enforce the taxed costs.

05

Court’s reasoning

  1. 01

    Section 162 of the Labour Relations Act; Long v South African Breweries (Pty) Ltd and Others [2019] ZACC 7

    In labour matters, the general principle that costs follow the result does not apply. The Labour Court has a discretion to award costs according to law and fairness, considering the conduct of the parties and whether the matter should have been referred to arbitration.

  2. 02

    Labour Court Rule 10

    A party seeking to review the taxing master's decision must file the review application within 10 days of taxation.

  3. 03

    Labour Court practice; case law on urgency

    Urgency must not be self-created; a party must act promptly when aware of the circumstances giving rise to the application.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the applicant had been aware of the taxed bill of costs and the respondents' intention to enforce it since mid-May 2019. Despite being afforded opportunities to object to the bill and make settlement offers, the applicant failed to act timeously. The right to review the taxing master's decision in terms of Rule 10 had lapsed, as no review application was filed within the prescribed period. The delay in bringing the present application rendered any urgency self-created. Consequently, the application was struck from the roll for lack of urgency. The court exercised its discretion under section 162 of the LRA and declined to make a costs order against the applicant, noting the reluctance to award costs against individual employees pursuing perceived rights.

Obiter and limits

  • The court is generally reluctant to make costs orders against individual employees, as such orders may inhibit the exercise of their rights.
  • The interests of law and fairness dictate that no costs order should be made where an individual employee pursues a legitimate grievance.

Court disposition

Application struck from the roll for lack of urgency; no order as to costs.

  • The application is struck from the roll for lack of urgency.
  • There is no order as to costs.

Source and reliance status

Labour Court Johannesburg

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Judgment reading view

Judgment text

The complete available source text.

Source document

Labour Court Johannesburg

Judgment

[2019] ZALCJHB 316

THE LABOUR COURT OF SOUTH AFRICA, JOHANNESBURG

JUDGMENT

Not reportable

Case no: j 1104/2018 In the matter between:

LUMKO

MTINDE and

SHERIFF

JOHANNESBURG EAST

UNIVERSAL

SERVICES AND ACCESS

AGENCY

CHAIRPERSON

AND BOARD OF USAASA

MINISTER

OF COMMUNICATIONS

AND

DIGITAL TECHNOLOGY Applicant First Respondent Second Respondent Third Respondent Fourth Respondent

Heard: 22 October 2019

Judgment delivered: 29 October 2019

VAN

NIEKERK J

[1] The applicant was suspended by the first respondent on 14 March 2018. He contested the lawfulness of his suspension and on 28 March 2018, he filed an urgent application in this court seeking to have the suspension set aside. The application was opposed. On 24 April 2018, the court struck the application from the roll for lack of urgency, with costs, such costs to include the costs of two counsel.

[2] The applicant could not have imagined then that consequent on the order, in mid- September 2019, the sheriff would be attaching his assets to satisfy a bill of costs taxed in the sum of R512 091.49. In this application, also brought on an urgent basis, the applicant seeks to have the writ of execution issued on 1 August 2019 stayed, pending the outcome of an application to review and set aside the taxed bill of costs.

[3] The issuing of the writ has a history. The applicant was initially represented by Marweshe Attorneys, and later, when the costs order was made, by Matuba Maponya Attorneys. A bill of costs was prepared for the respondents and served on Marweshe Attorneys, and not Matuba Maponya, who were then on record. After the bill was taxed on 17 May

2019, the respondents demanded payment of the taxed costs. The applicant then appointed Ndobela Lamola to deal with the matter. On 23 May 2019, Ndobela Lamola wrote to the respondents’ attorneys and advised that the taxed bill of costs had been addressed to the wrong attorneys, and that they were now attorneys of record. The same letter acknowledged receipt of a taxed bill in the sum of R 512 091.49, and recorded that the applicant intended to bring an application to rescind the costs order. On 24 May 2019, the respondent’s attorneys wrote a letter to Ndobela Lamola in which they acknowledged the area of having served a bill of costs on Marweshe Attorneys, and in which they gave an undertaking that the taxed costs would not be enforced. At the same time, the respondent’s attorneys attached a new draft bill of costs for taxation de novo. The applicant was requested to make an offer in regard to costs but he did not respond. On 3 July 2019, the applicant’s attorneys were advised that the period within which to lodge objections to the item stated in the bill of costs had lapsed and that the bill would be set down for taxation. On 16 July 2019, the notice of set down for the taxation was sent to the applicant’s attorneys. On 1 August 2019, the taxing master taxed the bill in the presence of the applicant’s legal representative, and without any objection to any item by the representative. On the same date, an email was sent by the respondents’ attorney to the applicant’s attorneys, attaching the taxed bill and demanding full payment.

[4] The applicant contends that this application is urgent because after receiving the writ of execution on 17 September 2019, he contacted his current attorneys of record to assist him to resolve the matter. An offer was made to settle the bill of costs, which was refused. On 15 October 2019, the applicant was advised by the respondents that they persisted with their instruction to the sheriff to remove the assets under attachment. The present application was filed on 18 October 2019.

[5] The respondents dispute that the application is urgent. They contend that any urgency is self-created, since the applicant was aware as far back as 17 May 2019 of the bill of costs and that he took no steps to raise any objections to the bill. Further, the writ of execution was served on 17 September 2019, and the present application filed only a month later.

[6] There is merit in this submission. On his own version, the applicant has been aware since mid-May of the bill of costs, and the respondents’’ intention to have it taxed and enforced. In early July 2019, the applicant was presented with the revised bill of costs and afforded the opportunity to object to any item and to consider making an offer of settlement. He did neither. On 1 August 2019 the applicant’s representatives were aware of the amount that had been taxed. Any right to review the taxing master in terms of Rule 10 ought to have been filed within 10 days of the date of taxation. The applicant failed to file a review application within this period. Indeed, at the time of the hearing of the present application 22 October 2019, no review application had been filed. The applicant ought therefore not to have been surprised when on 17 September 2019, the sheriff sought to execute the writ. Yet it took the applicant another month, to the day, to file the present application.

[7] In these circumstances, any urgency there might be is self-created, and the application stands to be struck from the roll on that basis.

[8] In so far as costs are concerned, s 162 affords the court a broad discretion to make orders for costs according to the requirements of the law and fairness. In Long, the Constitutional Court affirmed the proper approach to the exercise of a discretion in terms of s 162 and awards of costs in this court:

[27] It is well accepted that in labour matters, the general principle that costs follow the result does not apply…This principle is based on section 162 of the LRA, which reads:

(1) The Labour Court may make an order for the payment of costs, according to the requirements of the law and fairness.

(2) When deciding whether or not to order the payment of costs, the Labour Court may take into account—

(a) whether the matter referred to the Court ought to have been referred to arbitration in terms of this Act and, if so, the extra costs incurred in referring the matter to the Court; and

(b) the conduct of the parties—

(i) in proceeding with or defending the matter before the Court; and

(ii) during the proceedings before the Court.”

[28] The relationship between the general principle of costs and section 162 was considered and settled by this Court in Zungu:

“In this matter, there is nothing on the record indicating why the Labour Court and Labour Appeal Court awarded costs against the applicant. Neither court gave reasons for doing so. It seems that both courts simply followed the rule that costs follow the result. This is not correct…”

[9] This court is in any event reluctant to make orders for costs against individual employees, for whom the prospect of an adverse costs order may serve to inhibit the exercise of what they perceive as their rights. Given particularly that the applicant is an individual employee who pursues a legitimately felt grievance against his employer, the interests of the law and fairness dictate that there should be no order as to costs.

I make the following order:

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

2. There is no order as to costs.

Andre van Niekerk

Judge

APPEARANCES

For the applicant: Adv. Serwarweng, instructed by Thembekile Graham

For the respondents: Adv. L Monnakgotla, instructed by Leepile Attorneys

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Authorities

Authorities used by the court

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

Long v South African Breweries (Pty) Ltd and Others [2019] ZACC 7

Case cited

Zungu v Premier of the Province of KwaZulu-Natal and Others [2018] ZACC 1

Case cited

Labour Relations Act 66 of 1995 (s 162)

Legislation

Legislation referenced in the available case record.

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