Mzingisi Development Trust and Others v Nelson Mandela Bay Metropolitan Municipality (939/10) [2010] ZAECPEHC 49 (17 August 2010)

Mzingisi Development Trust and Others v Nelson Mandela Bay Metropolitan Municipality (939/10) [2010] ZAECPEHC 49 (17 August 2010)

The court found that the parties were firmly and irrevocably bound to resolve disputes arising from the Land Availability and Services Agreement through arbitration, as stipulated in the agreement and reinforced by the Arbitration Act. No special circumstances justified deviation from this process. The applicants' approach to the court was therefore inappropriate, and the respondent's concession of the relief did not warrant a costs order against it. Each party was ordered to pay its own costs.

Citation
[2010] ZAECPEHC 49
Parties
Applicant: Mzingisi Development Trust; Applicant: Dieter Heinz Werner Rohrich N O; Applicant: Sindiswa Gladys Jawuka N O; Applicant: Silas Ntutuzelo Nkanunu N O; Applicant: Mzimkhulu Gordon Dilima N O; Applicant: Mcedisi Orsmond Xundu N O; Applicant: Nyanisile Moses Boyce N O; Respondent: Nelson Mandela Metropolitan Municipality
Court
Eastern Cape High Court, Port Elizabeth
Jurisdiction
South Africa
Judgment Date
17 August 2010
Case Number
939/10
Procedural Posture
Urgent Application / Judgment
Outcome
Application granted as conceded; no order as to costs.
Judges
J W Eksteen
Legal Topics
Arbitration Clause Enforcement, Contractual Dispute Resolution, Municipal Land Development
Civil Procedure Land and Property Arbitration Clause Enforcement Contractual Dispute Resolution Municipal Land Development

Case Brief

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Parties

Mzingisi Development Trust

Applicant

Dieter Heinz Werner Rohrich N O

Applicant

Sindiswa Gladys Jawuka N O

Applicant

Silas Ntutuzelo Nkanunu N O

Applicant

Mzimkhulu Gordon Dilima N O

Applicant

Mcedisi Orsmond Xundu N O

Applicant

Nyanisile Moses Boyce N O

Applicant

Nelson Mandela Metropolitan Municipality

Respondent

Procedural Posture

Urgent Application / Judgment

Legal Issues

  1. 1 Whether the dispute arising from the cancellation of the Land Availability and Services Agreement should have been referred to arbitration as per the agreement.
  2. 2 Whether the applicants were entitled to approach the court for relief despite the arbitration clause.
  3. 3 Whether the respondent is liable for the costs of the application.

Ratio Decidendi

The court found that the parties were firmly and irrevocably bound to resolve disputes arising from the Land Availability and Services Agreement through arbitration, as stipulated in the agreement and reinforced by the Arbitration Act. No special circumstances justified deviation from this process. The applicants' approach to the court was therefore inappropriate, and the respondent's concession of the relief did not warrant a costs order against it. Each party was ordered to pay its own costs.

Court Disposition

Application granted as conceded; no order as to costs.

Orders

  • No order as to costs; each party to pay its own costs.