RAiN Chartered Accountants Incorporated v South African Social Security Agency (CCT 48/17) [2021] ZACC 27; 2021 (11) BCLR 1225 (CC) (10 September 2021)

RAiN Chartered Accountants Incorporated v South African Social Security Agency (CCT 48/17) [2021] ZACC 27; 2021 (11) BCLR 1225 (CC) (10 September 2021)

The Constitutional Court held that SASSA is estopped from denying RAiN's entitlement to fees for work required under the April 2021 order, as SASSA accepted RAiN's performance under the expired contract and paid the full contract price. The April 2021 order created a need for a new agreement for additional work, and SASSA must consider appointing RAiN through the deviation process under Treasury Regulation 16A.6.4. The Court declined to order SASSA to pay RAiN's legal fees, finding insufficient grounds for such relief. The Court modified the previous order to facilitate expeditious completion of the outstanding work and placed responsibility for the deviation process on SASSA's Chief...

Citation
[2021] ZACC 27
Parties
Applicant: RAiN Chartered Accountants Incorporated; Respondent: South African Social Security Agency
Court
Constitutional Court
Jurisdiction
South Africa
Judgment Date
10 September 2021
Case Number
CCT 48/17
Procedural Posture
Urgent Application / Final Order on Application for Declaratory Relief and Modification of Previous Order
Outcome
Application granted in part; declaratory relief and modification of previous order issued; costs awarded to RAiN.
Judges
Zondo ACJ, Madlanga J, Madondo AJ, Majiedt J, Mhlantla J, Pillay AJ, Rogers AJ, Theron J, Tlaletsi AJ, Tshiqi J
Legal Topics
Public Procurement, Estoppel, Treasury Regulations, Constitutional Principles, Professional Fees, Scope of Contract
Administrative Law Civil Procedure Commercial and Corporate Public Procurement Estoppel Treasury Regulations Constitutional Principles Professional Fees +1 more

Case Brief

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Parties

RAiN Chartered Accountants Incorporated

Applicant

South African Social Security Agency

Respondent

Procedural Posture

Urgent Application / Final Order on Application for Declaratory Relief and Modification of Previous Order

Legal Issues

  1. 1 Is SASSA liable to pay RAiN's reasonable fees for work required under the April 2021 Constitutional Court order?
  2. 2 Does the work required by the April 2021 order fall within the scope of the expired contract between SASSA and RAiN?
  3. 3 Is SASSA estopped from denying RAiN's entitlement to fees for the new work?

Ratio Decidendi

The Constitutional Court held that SASSA is estopped from denying RAiN's entitlement to fees for work required under the April 2021 order, as SASSA accepted RAiN's performance under the expired contract and paid the full contract price. The April 2021 order created a need for a new agreement for additional work, and SASSA must consider appointing RAiN through the deviation process under Treasury Regulation 16A.6.4. The Court declined to order SASSA to pay RAiN's legal fees, finding insufficient grounds for such relief. The Court modified the previous order to facilitate expeditious completion of the outstanding work and placed responsibility for the deviation process on SASSA's Chief...

Court Disposition

Application granted in part; declaratory relief and modification of previous order issued; costs awarded to RAiN.

Orders

  • It is declared that SASSA is responsible for paying reasonable fees for work to comply with paragraphs 1 and 3 of the April 2021 order.
  • SASSA must consider appointing RAiN in accordance with the deviation process under Treasury Regulation 16A.6.4 and, if open, must appoint RAiN.