Saffy N.O. and Others v Minister of Public Works and Others (1227/2018) [2019] ZANCHC 46 (30 August 2019)

Saffy N.O. and Others v Minister of Public Works and Others (1227/2018) [2019] ZANCHC 46 (30 August 2019)

The court found that the Department's decision to settle the dispute and pay R10 million to the applicants was irrational and unlawful, as it was made without proper consideration of material facts, including prescription and correct citation of the executive authority. The settlement agreement was declared null and...

Source-derived case information.

Citation
[2019] ZANCHC 46
Parties
Applicant: Luke Bernard Saffy N.O.; Applicant: Donovan Theodore Majiedt N.O.; Applicant: Shavonne Badenhorst St Clair Cooper N.O.; Applicant: Vista Park Development (Pty) Ltd (in liquidation); Respondent: Minister of Public Works; Respondent: MEC: Northern Cape Provincial Government: Department of Public Works; Respondent: HOD: Northern Cape Provincial Government; Respondent: Joh-Arch Investments (Pty) Ltd
Court
Northern Cape High Court, Kimberley
Jurisdiction
South Africa
Judgment Date
30 August 2019
Case Number
1227/2018
Procedural Posture
Review Application / Final Judgment on Review and Counter Application
Outcome
Application by the applicants dismissed; counter-application by the Department granted.
Judges
BM Pakati
Legal Topics
Legality Review, Settlement Agreement Enforcement, Public Procurement, Prescription of Claims, Liquidation and Distribution Account, State Liability
Administrative Law Civil Procedure Commercial and Corporate Legality Review Settlement Agreement Enforcement Public Procurement Prescription of Claims Liquidation and Distribution Account +1 more

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Parties

Luke Bernard Saffy N.O.

Applicant

Donovan Theodore Majiedt N.O.

Applicant

Shavonne Badenhorst St Clair Cooper N.O.

Applicant

Vista Park Development (Pty) Ltd (in liquidation)

Applicant

Minister of Public Works

Respondent

MEC: Northern Cape Provincial Government: Department of Public Works

Respondent

HOD: Northern Cape Provincial Government

Respondent

Joh-Arch Investments (Pty) Ltd

Respondent

Procedural Posture

Review Application / Final Judgment on Review and Counter Application

Legal Issues

  1. 1 Whether the decision taken by the Department on 12 September 2017 to settle the dispute with the applicants was lawful and rational.
  2. 2 Whether the settlement agreement concluded on 27 September 2017 is valid and enforceable.
  3. 3 Whether the applicants and third party are liable to repay the R10 million paid under the purported settlement agreement.

Ratio Decidendi

The court found that the Department's decision to settle the dispute and pay R10 million to the applicants was irrational and unlawful, as it was made without proper consideration of material facts, including prescription and correct citation of the executive authority. The settlement agreement was declared null and void ab initio, as the applicants had not properly accepted it and consensus was lacking. The Department was entitled to review its own decision under the principle of legality, and the counter-application for repayment of the R10 million was granted. The applicants and the third party were ordered to repay the R10 million with interest and to pay the costs of the application,...

Court Disposition

Application by the applicants dismissed; counter-application by the Department granted.

Orders

  • The decision taken on 12 September 2017 at Port Nolloth to settle the dispute between the applicants and the Department in Case Number 2072 is reviewed and set aside.
  • The settlement agreement (Annexure 'AS5') is declared null and void ab initio.