Municipal Manager: The City of Johannesburg Metropolitan Municipality and Others v San Ridge Heights Rental Property (Pty) Ltd (517/2022) [2023] ZASCA 109 (11 July 2023)

Municipal Manager: The City of Johannesburg Metropolitan Municipality and Others v San Ridge Heights Rental Property (Pty) Ltd (517/2022) [2023] ZASCA 109 (11 July 2023)

The Supreme Court of Appeal held that the City and/or Johannesburg Water's failure to provide reasons for the classification of San Ridge Heights as a 'multi dwelling' was fatal and dispositive. Section 33(2) of the Constitution and section 5 of PAJA impose a duty on administrators to furnish written reasons when...

Source-derived case information.

Citation
[2023] ZASCA 109
Parties
Appellant: Municipal Manager: The City of Johannesburg Metropolitan Municipality; Appellant: City of Johannesburg Metropolitan Municipality; Appellant: Johannesburg Water (SOC) Limited; Respondent: San Ridge Heights Rental Property (Pty) Ltd
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Case Number
517/2022
Procedural Posture
Civil Appeal / Appeal From Gauteng Division of the High Court, Johannesburg
Outcome
Appeal upheld to the limited extent that the matter is remitted for reconsideration; High Court's substitution order set aside; each party to pay its own costs.
Judges
Nicholls, Carelse, Mabindla-Boqwana, Weiner, Molefe
Legal Topics
Promotion of Administrative Justice Act, Municipal Tariff Classification, Failure to Provide Reasons, Review of Administrative Action, Remittal of Decision
Administrative Law Land and Property Promotion of Administrative Justice Act Municipal Tariff Classification Failure to Provide Reasons Review of Administrative Action Remittal of Decision

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Parties

Municipal Manager: The City of Johannesburg Metropolitan Municipality

Appellant

City of Johannesburg Metropolitan Municipality

Appellant

Johannesburg Water (SOC) Limited

Appellant

San Ridge Heights Rental Property (Pty) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From Gauteng Division of the High Court, Johannesburg

  1. 1 Whether the City and/or Johannesburg Water's decision to classify San Ridge Heights as a 'multi dwelling' for tariff purposes was lawful.
  2. 2 Whether the failure to provide reasons for the classification decision violated PAJA and the Constitution.
  3. 3 Whether the High Court was correct to substitute its own classification for that of the administrator.

Ratio Decidendi

The Supreme Court of Appeal held that the City and/or Johannesburg Water's failure to provide reasons for the classification of San Ridge Heights as a 'multi dwelling' was fatal and dispositive. Section 33(2) of the Constitution and section 5 of PAJA impose a duty on administrators to furnish written reasons when rights are adversely affected. The absence of reasons entitles the affected party to judicial review and creates a presumption of bad faith or lack of justification. The High Court erred in substituting its own classification for that of the administrator, as the record did not contain sufficient information (such as rates valuations) to make such a determination. The appropriate...

Court Disposition

Appeal upheld to the limited extent that the matter is remitted for reconsideration; High Court's substitution order set aside; each party to pay its own costs.

Orders

  • The appeal is upheld, to the limited extent indicated.
  • Paragraph 2 of the order of the court a quo is set aside and replaced with an order remitting the matter to the second and/or third respondents to reconsider their classification of Erf 827 Erand Gardens, Ext 36 Township, held by Certificate of Consolidated Title T1100883/2016, in terms of the second respondent’s...