Satellite Data Network v Mollentze (JR1197/02) [2003] ZALCJHB 6 (1 March 2003)

Satellite Data Network v Mollentze (JR1197/02) [2003] ZALCJHB 6 (1 March 2003)

The Commissioner committed a gross irregularity by failing to apply the correct legal test to determine whether Satellite Data Network had reasonable prospects of success. The Commissioner focused primarily on wilful default and did not properly assess the existence of a bona fide defence, especially in light of disputed facts and the amendment of the quantum of compensation. The correct approach would have been to apply the Plascon Evans test or refer the matter to oral evidence. The concession that there was no wilful default further supports the need to allow Satellite Data Network to present its case fully. Accordingly, the recission ruling is reviewable and must be set aside.

Citation
[2003] ZALCJHB 6
Parties
Applicant: Satellite Data Network (Pty) Limited; Respondent: C Mollentze
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
1 March 2003
Case Number
JR1197/02
Procedural Posture
Review Application / Judgment
Outcome
The application for review is granted; the recission ruling is set aside and the matter is referred for arbitration.
Judges
A A Landman
Legal Topics
Recission of Arbitration Award, Wilful Default, Bona Fide Defence, Quantum of Compensation
Labour Law Civil Procedure Recission of Arbitration Award Wilful Default Bona Fide Defence Quantum of Compensation

Case Brief

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Parties

Satellite Data Network (Pty) Limited

Applicant

C Mollentze

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the Commissioner applied the correct legal test in determining if Satellite Data Network had reasonable prospects of success on the merits.
  2. 2 Whether the recission ruling is reviewable due to a gross irregularity.
  3. 3 Whether the amendment of the quantum of compensation indicates a bona fide defence.

Ratio Decidendi

The Commissioner committed a gross irregularity by failing to apply the correct legal test to determine whether Satellite Data Network had reasonable prospects of success. The Commissioner focused primarily on wilful default and did not properly assess the existence of a bona fide defence, especially in light of disputed facts and the amendment of the quantum of compensation. The correct approach would have been to apply the Plascon Evans test or refer the matter to oral evidence. The concession that there was no wilful default further supports the need to allow Satellite Data Network to present its case fully. Accordingly, the recission ruling is reviewable and must be set aside.

Court Disposition

The application for review is granted; the recission ruling is set aside and the matter is referred for arbitration.

Orders

  • The recission ruling handed down by the 2nd respondent on 17 July 2002 is reviewed and set aside.
  • The CCMA is directed to convene an arbitration hearing to consider the merits of the matter.