Sandton Town Council v Erf 89 Sandown Extension 2 (Pty) Ltd. (93/87) [1988] ZASCA 43 (31 March 1988)

Sandton Town Council v Erf 89 Sandown Extension 2 (Pty) Ltd. (93/87) [1988] ZASCA 43 (31 March 1988)

The Supreme Court of Appeal held that the phrase 'compensation for any damage done' in section 134(b) of the Local Government Ordinance must be interpreted broadly to include not only direct physical damage but also pecuniary loss resulting from impairment of property value. The laying of stormwater pipes across erf...

Source-derived case information.

Citation
[1988] ZASCA 43
Parties
Appellant: Sandton Town Council; Respondent: Erf 89 Sandown Extension 2 (Pty) Ltd.
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
31 March 1988
Case Number
93/87
Procedural Posture
Civil Appeal / Appeal From Exception Dismissed in the Witwatersrand Local Division
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Hoexter, Nestadt, Vivier, Kumleben, Viljoen
Legal Topics
Statutory Expropriation, Compensation for Damage, Interpretation of Municipal Powers, Pecuniary Loss, Local Government Ordinance
Land and Property Civil Procedure Statutory Expropriation Compensation for Damage Interpretation of Municipal Powers Pecuniary Loss Local Government Ordinance

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 7 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Sandton Town Council

Appellant

Erf 89 Sandown Extension 2 (Pty) Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From Exception Dismissed in the Witwatersrand Local Division

Legal Issues

  1. 1 Whether compensation under section 134(b) of the Local Government Ordinance is limited to direct physical damage or extends to pecuniary loss caused by impairment of property value.
  2. 2 Whether the laying of stormwater pipes constitutes a taking akin to expropriation, entitling the owner to compensation for loss in value.
  3. 3 How the phrase 'compensation for any damage done' should be interpreted in the context of municipal statutory powers.

Ratio Decidendi

The Supreme Court of Appeal held that the phrase 'compensation for any damage done' in section 134(b) of the Local Government Ordinance must be interpreted broadly to include not only direct physical damage but also pecuniary loss resulting from impairment of property value. The laying of stormwater pipes across erf 89 constituted a partial deprivation of the owner's rights akin to expropriation, and the presumption against uncompensated deprivation of property applied. The appellant's restrictive interpretation was rejected, and the court affirmed that compensation for loss in value is payable under the Ordinance. The appeal was dismissed, and the exception to the respondent's claim was...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs consequent upon the employment of two counsel.