Transnet Ltd. v Goodman Brothers (Pty) Ltd (373/98) [2000] ZASCA 62; 2001 (1) SA 853 (SCA); 2001 (2) BCLR 176 (SCA) (9 November 2000)

Transnet Ltd. v Goodman Brothers (Pty) Ltd (373/98) [2000] ZASCA 62; 2001 (1) SA 853 (SCA); 2001 (2) BCLR 176 (SCA) (9 November 2000)

The Supreme Court of Appeal held that Transnet, although now a government-owned company, exercises public powers and performs public functions in terms of the Legal Succession to the South African Transport Services Act. The calling for and adjudication of tenders by Transnet constitutes administrative action under section 33 of the Constitution. The rights and interests of unsuccessful tenderers are affected by such administrative action, entitling them to written reasons for the decision. The waiver clause in the tender conditions cannot override constitutional rights, as limitation of rights must comply with section 36 of the Constitution and be based on law of general application. The...

Citation
[2000] ZASCA 62
Parties
Appellant: Transnet Limited; Respondent: Goodman Brothers (Pty) Ltd
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
9 November 2000
Case Number
373/98
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal dismissed with costs.
Judges
Schutz, Hefer, Harms, Olivier, Mthiyane
Legal Topics
Right to Reasons, Administrative Action, Tender Process, Bill of Rights Limitation, Waiver of Rights, Public Function
Administrative Law Constitutional Law Commercial and Corporate Right to Reasons Administrative Action Tender Process Bill of Rights Limitation Waiver of Rights +1 more

Case Brief

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 5 Authorities cited 17 Party arguments 2
Sign in to unlock

Parties

Transnet Limited

Appellant

Goodman Brothers (Pty) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether Transnet's tender process constitutes administrative action under section 33 of the Constitution.
  2. 2 Whether an unsuccessful tenderer has a right or interest affected by the administrative action, entitling it to reasons for the decision.
  3. 3 Whether a waiver clause in the tender conditions can validly exclude the constitutional right to reasons.

Ratio Decidendi

The Supreme Court of Appeal held that Transnet, although now a government-owned company, exercises public powers and performs public functions in terms of the Legal Succession to the South African Transport Services Act. The calling for and adjudication of tenders by Transnet constitutes administrative action under section 33 of the Constitution. The rights and interests of unsuccessful tenderers are affected by such administrative action, entitling them to written reasons for the decision. The waiver clause in the tender conditions cannot override constitutional rights, as limitation of rights must comply with section 36 of the Constitution and be based on law of general application. The...

Court Disposition

Appeal dismissed with costs.

Orders

  • Transnet is obliged to provide written reasons to unsuccessful tenderers upon request.
  • The waiver clause in the tender conditions is invalid to the extent that it conflicts with section 33 of the Constitution.