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South Africa Judgment

Eastern Cape High Court, Mthatha

Padayachee v Municipal Manager, King Sabata Dalindyebo Municipality and Another (2511/2020) [2022] ZAECMHC 18 (26 July 2022)

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Professional case brief

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Source document

01

Holding and result

The court found that the applicant did not establish a valid contract of employment with the municipality after the expiry of her fixed term contract. The offer of permanent employment lapsed when the applicant failed to accept the salary package, and her purported acceptance was not delivered to the employer. Negotiations for an improved salary package and subsequent interactions did not result in a binding contract. The application for leave to appeal did not meet the heightened threshold under s 17 of the Superior Courts Act, as there was no certainty that another court would reach a different conclusion. The application was therefore dismissed with costs.

Court disposition

Application for leave to appeal dismissed with costs.

Orders

  • The application for leave to appeal is dismissed.
  • The applicant is ordered to pay the costs of the application.

02

Material facts

Parties

Romila Salome Padayachee

Applicant Counsel: P.V. Msiwa SC with Adv. Matotie

Municipal Manager, King Sabata Dalindyebo Municipality

Respondent Counsel: B. Metu

King Sabata Dalindyebo Municipality

Respondent Counsel: B. Metu

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal Following Dismissal of Reinstatement Claim

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contended that annexure 'E', the disputed acceptance letter, constituted acceptance of the municipality's offer of permanent employment. She argued that negotiations for an improved salary package and subsequent interactions with the municipality established a contract of employment. The applicant maintained that the court erred by not considering these perspectives and that there is a reasonable prospect another court would find in her favour.
Respondent
The respondents argued that the applicant's fixed term contract expired on 30 June 2019 and that the offer of permanent employment lapsed when she did not accept the salary package. They maintained that no contract of employment was established as the acceptance letter was not delivered and negotiations did not result in agreement. The respondents asserted that the application for leave to appeal lacked merit and should be dismissed.

05

Court’s reasoning

  1. 01

    Stellenbosch Farmers' Winery Ltd v Stellenvale Winery (Pty) Ltd 1957 (4) SA 234 (C)

    A contract of employment is established only upon written acceptance of the offer and delivery to the employer.

  2. 02

    Mont Chevaux Trust (IT2012/28) v Tina Goosen & 18 Others

    The threshold for granting leave to appeal under s 17 of the Superior Courts Act requires certainty that another court would differ, not mere reasonable prospects.

  3. 03

    Van Heerden v Cronwright & Others 1985 (2) SA 342 (T)

    The former test for leave to appeal was a reasonable prospect that another court might come to a different conclusion.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the applicant did not establish a valid contract of employment with the municipality after the expiry of her fixed term contract. The offer of permanent employment lapsed when the applicant failed to accept the salary package, and her purported acceptance was not delivered to the employer. Negotiations for an improved salary package and subsequent interactions did not result in a binding contract. The application for leave to appeal did not meet the heightened threshold under s 17 of the Superior Courts Act, as there was no certainty that another court would reach a different conclusion. The application was therefore dismissed with costs.

Obiter and limits

  • The court noted that the applicant's grounds for leave to appeal were repetitive and largely founded on hope rather than certainty.
  • The indulgence granted by the municipality after the expiry of the fixed term contract did not create any legal entitlement to reinstatement.

Court disposition

Application for leave to appeal dismissed with costs.

  • The application for leave to appeal is dismissed.
  • The applicant is ordered to pay the costs of the application.

Source and reliance status

Eastern Cape High Court, Mthatha

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Judgment reading view

Judgment text

The complete available source text.

Source document

Eastern Cape High Court, Mthatha

Judgment

[2022] ZAECMHC 18

[Not reportable]

IN

THE HIGH COURT OF SOUTH AFRICA

[EASTERN CAPE LOCAL DIVISION, MTHATHA]

CASE NO: 2511/2020

HEARD ON: 14/06/2022

DELIVERED ON: 26/07/2022

ROMILA SALOME PADAYACHEE Applicant

And

THE MUNICIPAL MANAGER, KING SABATA

DALINDYEBO MUNICIPALITY First

Respondent

KING SABATA DALINDYEBO MUNICIPALITY Second

Respondent

JUDGMENT

ON THE APPLICATION FOR LEAVE TO APPEAL

NHLANGULELA

DJP

[1] Stripped to its bare essentials, the judgment dismissing the applicant’s application for re-instatement to her job at KSD was made on the following bases.

[2] The applicant had a fixed term contract of employment with KSD that had commenced on 11 November 2012, and terminated on 30 June 2019. In anticipation of the termination date, KSD made a written offer of a permanent job that would have commenced at the end of the fixed term contract. However, the permanent contract could not kick-in for the reason that the applicant did not accept the salary package offered under the permanent contract. She raised a counter-offer that KSD did not accept with the result that the offer of permanent employment lapsed on 20 June 2019. Notwithstanding lapsing of the offer, KSD allowed the applicant more time, whilst on the job, to weigh-up her options whether to accept or reject the offer. That indulgence was accompanied with payment of a discretionary salary at the rate that had been applied during the term of the fixed contract; and it endured until 30 November 2019 when KSD terminated the indulgence.

[3] On the foregoing, I found no room for the interpretation advanced on behalf of the applicant that KSD terminated a contract of employment and, ergo, that the re-instatement sought was legally competent as the permanent contract of employment never came to fruition.

[4] A long list of statements, replete with repetitiveness, that are encapsulated on the notice of application for leave translate to a ground for leave that there is a reasonable prospect that another court might find that annexure “E”, the disputed acceptance letter, is the requisite acceptance of the KSD offer. A further ground of appeal that I could decipher from the notice of appeal is that the negotiations for an improved salary package between the applicant and Dr Letuka, the head of Human Resources for KSD, established a contract of employment. Another ground that is advanced is that some interactions that took place between the parties after 30 November 2019 established a contract of employment. In so far as I did not look into the case from these perspectives I erred, so the arguments went.

[5] I am not persuaded that I erred in the manner in which I evaluated the oral evidence against the test that is stated in the case of Stellenbosch Farmers' Winery Ltd v Stellenvale Winery (Pty) Ltd 1957 (4) SA 234 (C).

[6] In brief, a written acceptance of a salary package in terms of annexure “D6” and delivered to Mr Pakade would have established a contract of employment between the applicant and KSD. But that did not happen. The applicant chose to sign annexure “E” that was never delivered to Mr Pakade.

[7] It is my judgment that this application for leave does not pass muster in terms of the provisions of s 17 of the Superior Courts Act, 10 of 2013, which have been interpreted in Mont Chevaux Trust (IT2012/28) v Tina Goosen & 18 Others, in the following terms:

“It is clear that the threshold for granting leave to appeal against a judgment of a High Court has been raised in the new Act. The former test whether leave to appeal should be granted was a reasonable prospect that another court might come to a different conclusion, see Van Heerden v Cronwright & Others 1985 (2) SA 342 (T) at 343H. The use of the word “would” in the new statute indicates a measure of certainly that another court will

differ from the court whose judgment is sought to be appealed against.”

[8] In this case the success of the applicant’s application for leave is founded on a hope rather than certainty that another court will differ from the court a quo.

[98] In the result the following order shall issue:

(a) The application for leave to appeal is dismissed.

(b) The applicant to pay the costs of the application.

Z

M NHLANGULELA

DEPUTY JUDGE PRESIDENT OF THE HIGH COURT, MTHATHA

Counsel for the applicant: Adv. P.V. Msiwa SC appearing with Adv. Matotie

Instructed by: Zilwa

Att.

MTHATHA.

Counsel for the Respondents: Adv. B. Metu

Instructed by: Nosindwa

Att. Inc

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

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

Stellenbosch Farmers' Winery Ltd v Stellenvale Winery (Pty) Ltd 1957 (4) SA 234 (C)

Case cited

Mont Chevaux Trust (IT2012/28) v Tina Goosen & 18 Others

Case cited

Van Heerden v Cronwright & Others 1985 (2) SA 342 (T)

Case cited

Superior Courts Act, 10 of 2013

Legislation

Legislation referenced in the available case record.

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