Olitzki Property Holdings v State Tender Board and Another (698/98) [2001] ZASCA 51; 2001 (3) SA 1247 (SCA); 2001 (8) BCLR 779 (SCA) (28 March 2001)

Olitzki Property Holdings v State Tender Board and Another (698/98) [2001] ZASCA 51; 2001 (3) SA 1247 (SCA); 2001 (8) BCLR 779 (SCA) (28 March 2001)

The Supreme Court of Appeal held that section 187 of the interim Constitution does not create a direct right to claim damages for lost profit resulting from breach of procurement administration provisions. The section imposes legislative duties on Parliament and provincial legislatures to establish fair, public, and...

Source-derived case information.

Citation
[2001] ZASCA 51
Parties
Appellant: Olitzki Property Holdings; Respondent: State Tender Board; Respondent: Premier of the Province of Gauteng
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
28 March 2001
Case Number
698/98
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Hefer, Olivier, Marais, Zulman, Cameron
Legal Topics
Procurement Administration, Constitutional Damages, Fair Tender Process, Administrative Justice, Appropriate Relief, Public Accountability
Constitutional Law Administrative Law Delict Procurement Administration Constitutional Damages Fair Tender Process Administrative Justice Appropriate Relief +1 more

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Parties

Olitzki Property Holdings

Appellant

State Tender Board

Respondent

Premier of the Province of Gauteng

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Does section 187 of the interim Constitution create a right to claim damages for lost profit due to breach of procurement administration provisions.
  2. 2 Is an award of damages for lost profit an 'appropriate remedy' for breach of the administrative justice provisions of the interim Constitution.
  3. 3 Does the availability of review or interdict preclude a claim for damages for lost profit in the context of tender awards.

Ratio Decidendi

The Supreme Court of Appeal held that section 187 of the interim Constitution does not create a direct right to claim damages for lost profit resulting from breach of procurement administration provisions. The section imposes legislative duties on Parliament and provincial legislatures to establish fair, public, and competitive tender systems, but does not confer actionable rights for damages on tenderers. The Court found that the appropriate remedies for breach of these provisions are review and interdict, not damages for lost profit. Similarly, the administrative justice provisions in section 24 do not entitle a claimant to constitutional damages where alternative remedies were...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs of two counsel.
  • Both claims for damages are set aside.