SOS Protec Sure v PSTWU obo Mabea and Others (JR2826/2019) [2021] ZALCJHB 257 (30 August 2021)
- Citation
- [2021] ZALCJHB 257
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Labour Court Johannesburg
- Panel
- F Coetzee
- Case number
- JR2826/2019
More details
- Court
- Labour Court Johannesburg
- Panel
- F Coetzee
- Case number
- JR2826/2019
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The Commissioner failed to consider the evidence regarding the correct email addresses for service of the notice of set-down. The applicant was not properly notified of the arbitration hearing, and the default award was erroneously made in its absence. In such circumstances, the applicant was not required to show good cause for rescission. The rescission ruling is therefore reviewed and set aside, and rescission is granted. The conduct of the union in opposing the application without substantive grounds and using incorrect email addresses warrants a cost order against it.
Court disposition
Application to review and set aside the rescission ruling is granted.
Orders
- The rescission ruling dated 24 October 2019 under case number GAJB28832-18 is reviewed and set aside.
- The first respondent is ordered to pay the applicant's costs.
- The ruling is substituted by: 'Rescission is granted.'
02
Material facts
Parties
SOS Protec Sure
Applicant Counsel: A CookPSTWU obo Dancan Mabea and 160 Others
RespondentThe Commission for Conciliation Mediation and Arbitration
RespondentN Kheswa N O
Respondent03
Procedural history
Posture
Review Application / Judgment
04
Questions and positions
Legal issues
- 01
Whether the Commissioner erred in refusing to rescind the default award.
- 02
Whether the applicant was properly notified of the arbitration hearing.
- 03
Whether the award was erroneously made in the absence of the applicant.
Party arguments
- Applicant
- The applicant argued that it was not properly notified of the arbitration hearing as the notice of set-down was sent to incorrect email addresses. The applicant only became aware of the default award when the sheriff arrived to enforce it. The applicant maintained that its absence was not wilful and provided evidence of the correct email addresses, which were ignored by the Commissioner.
- Respondent
- The union filed a notice to oppose the review application but did not file an answering affidavit. The union's attorney withdrew, and no substantive argument was presented. The union's version regarding the correctness of the email addresses was accepted by the Commissioner in the rescission application.
05
Court’s reasoning
Legal principles
- 01
South African Revenue Services v Charlotte Connie Mhlongo J1915/09 ZALC
If an award is erroneously made in the absence of a party due to lack of proper notification, rescission may be granted without the need to show good cause.
- 02
Labour Relations Act, 66 of 1995, Section 138(5)(b)(i)
A party must be properly served and notified of the date, time, and venue of the scheduled hearing for a default award to be valid.
- 03
Electrocomp (Pty) Ltd v Novak (2002) 23 ILJ 1048 (LC)
Costs in the Labour Court do not ordinarily follow the result, but a cost order may be warranted where opposition is frivolous or vexatious.
06
Ratio, limits and disposition
Ratio decidendi
The Commissioner failed to consider the evidence regarding the correct email addresses for service of the notice of set-down. The applicant was not properly notified of the arbitration hearing, and the default award was erroneously made in its absence. In such circumstances, the applicant was not required to show good cause for rescission. The rescission ruling is therefore reviewed and set aside, and rescission is granted. The conduct of the union in opposing the application without substantive grounds and using incorrect email addresses warrants a cost order against it.
Obiter and limits
- This matter should never have been opposed as the facts clearly supported rescission of the award.
- The union was well aware of the correct email address but elected to use a wrong address to obtain a default award.
- Opposition without filing an answering affidavit or withdrawing is improper conduct warranting a cost order.
Court disposition
Application to review and set aside the rescission ruling is granted.
- The rescission ruling dated 24 October 2019 under case number GAJB28832-18 is reviewed and set aside.
- The first respondent is ordered to pay the applicant's costs.
- The ruling is substituted by: 'Rescission is granted.'
Source and reliance status
Labour Court Johannesburg
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Labour Court Johannesburg
Judgment
SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document in compliance with the law and SAFLII Policy
THE LABOUR COURT OF SOUTH AFRICA, JOHANNESBURG
JUDGMENT
Not Reportable
Not of interest to other judges
Case No: JR 2826/2019
In the matter between:
SOS
PROTEC SURE Applicant
and
PSTWU obo DANCAN MABEA AND 160 OTHERS First
Respondent
THE
COMMISSION FOR CONCILIATION MEDIATION
AND ARBITRATION Second
Respondent
N
KHESWA N O Third
Respondent
Heard: 26 August 2021
Delivered: This judgment was handed down electronically by circulation to the parties’ representatives by email and release to SAFLII. The date and time for hand-down is deemed to be 10h00 on 30 August 2021.
Summary: Review of a rescission ruling
Costs – matter should not have been opposed.
COETZEE AJ
[1] The applicant approaches this Court to review and set aside the refusal of the third respondent to rescind a default award.
[2] The first respondent ("the union") filed a notice to oppose the review application but failed to file an answering affidavit. The union's attorney of record has since withdrawn. The matter, however, remains opposed in view of the notice of opposition.
[3] The Commissioner of the CCMA on 8 April 2019 issued a default award that records:
"7.1 Upon investigation, the CCMA case file showed that the Respondent was properly served and notified of the date, time and venue of the scheduled hearing. In the light of the above facts, I conducted the arbitration hearing in the absence of the Respondent, in terms of Section 138(5)(b)(i) of the Labour Relation Act, 66 of 1995, as amended ("LRA")".
[4] The applicant became aware of the default award on 6 September 2019 when the sheriff arrived to enforce the award.
[5] The applicant launched a rescission application that was dismissed in the following terms:
"3.1 The Applicant's representatives submitted that its failure to attend the process cannot be regarded as wilful default because he only received the default award on 6 September 2019 and this was the first encounter with the default award, when it was faced with a warrant of execution.
3.2 The applicant did not receive a notice of set down for arbitration from the CCMA at any stage. It is alleged in the arbitration award that the notification was sent via e-mail. However, that e-mail address they provided in the said default arbitration award appears to be j[…]@sosprotec.co.za. Such e-mail does not exist even the domain itself is incorrect."
[6] The applicant maintains that the notice of set-down was sent to j[…]@ssprotec.co.za (there is no such email address and in any event the "o" in the domain was omitted) instead to c[…]@sosprotec.co.za. It was also incorrectly sent to p1[…]@sosprotec.co.za instead to p2[…]@sosprotec.co.za. On page 66 of the record both correct e-mail addresses are reflected on a document sent to the union prior to the notice of set down of the arbitration.
[7] The applicant pointed this out in the rescission application, but the Commissioner accepted the version of the union as to the correctness of the addresses.
[8] The applicant seeks to review the rescission ruling on the basis that the Commissioner failed to have regard to the evidence regarding the correct e-mail addresses.
[9] In my view the rescission ruling is to be set aside for that reason. The notification of the arbitration never came to the knowledge of the applicant. The applicant gave a reasonable explanation as to why not.
[10] The applicant argues that the award was erroneously made in the absence of the applicant. If that is the case, then the applicant did not have to show good cause to succeed with the rescission application[1]. As to whether the failure to correctly notify the applicant constitutes an error, the issue was dealt witH at length in South African Revenue Services v Charlotte Connie Mhlongo[2] where the Court held that it in fact is an error. The applicant did not have to show good cause to succeed with the rescission
application.
[11] In view of this conclusion, it is not necessary to consider the second ground of review.
[12] The application to review and set aside the rescission ruling should succeed.
Costs
[13] The applicant asks that costs should follow the result. I am aware that costs in the Labour Court do not follow the result. This matter should never have been opposed as clearly on the facts the award should have been rescinded. The conduct of the union also warrants a cost order. The union, on the facts, was well aware of the correct email address, but elected to use a wrong email address to obtain a default award. The union then opposed the application without filing and answering affidavit or withdrawing its opposition to the application.
Order
[14] I make the following order:
1. The rescission ruling ("the ruling") dated 24 October 2019 under case number GAJB28832-18 is reviewed and set aside.
2. The first respondent is ordered to pay the applicant's costs.
3. The ruling is substituted by the following:
" Rescission is granted"
F. Coetzee
Acting Judge of the Labour Court of South Africa
Appearances
For the applicant: Adv
A Cook
Instructed by: Michael
Krawitz & Co
For the First Respondent: No appearance
[1] Electrocomp (Pty) Ltd v Novak (2002) 23 ILJ 1048 (LC para 20-21
[2] J1915/09 ZALC
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