Van Tonder v Compass Group (Proprietary) Limited and Others (JA58/16) [2017] ZALAC 56; (2017) 38 ILJ 2329 (LAC); [2017] 10 BLLR 1024 (LAC) (1 June 2017)

Van Tonder v Compass Group (Proprietary) Limited and Others (JA58/16) [2017] ZALAC 56; (2017) 38 ILJ 2329 (LAC); [2017] 10 BLLR 1024 (LAC) (1 June 2017)

The Labour Appeal Court held that, following the Constitutional Court's decision in Myathaza, either the Prescription Act does not apply to arbitration awards issued under the Labour Relations Act, or, if it does, the institution of review proceedings interrupts prescription until the review is finalised. Both approaches prevent the award from prescribing while the review is pending. The court found that the debt owed to the appellant had not prescribed, and the order of the Labour Court was set aside. The court emphasised that manifest injustice would result if a party could avoid implementation of an award by instituting review proceedings and then claim prescription based on the delay...

Citation
[2017] ZALAC 56
Parties
Appellant: Chris Van Tonder; Respondent: Compass Group (Proprietary) Limited; Respondent: Lynch DT Nomine Officii; Respondent: Commission for Conciliation, Mediation and Arbitration
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
1 June 2017
Case Number
JA58/16
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment
Outcome
Appeal upheld; order of the Labour Court set aside; arbitration award has not prescribed.
Judges
Landman JA, Davis JA, Phatshoane AJA
Legal Topics
Prescription Act, Arbitration Award Enforcement, Review Proceedings, Labour Relations Act, Interruption of Prescription
Labour Law Civil Procedure Prescription Act Arbitration Award Enforcement Review Proceedings Labour Relations Act Interruption of Prescription

Case Brief

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Parties

Chris Van Tonder

Appellant

Compass Group (Proprietary) Limited

Respondent

Lynch DT Nomine Officii

Respondent

Commission for Conciliation, Mediation and Arbitration

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment

Legal Issues

  1. 1 Does the Prescription Act 68 of 1969 apply to arbitration awards issued under the Labour Relations Act?
  2. 2 Was the arbitration award in favour of the appellant prescribed at the time of enforcement?
  3. 3 Does the institution of review proceedings interrupt prescription of the arbitration award debt?

Ratio Decidendi

The Labour Appeal Court held that, following the Constitutional Court's decision in Myathaza, either the Prescription Act does not apply to arbitration awards issued under the Labour Relations Act, or, if it does, the institution of review proceedings interrupts prescription until the review is finalised. Both approaches prevent the award from prescribing while the review is pending. The court found that the debt owed to the appellant had not prescribed, and the order of the Labour Court was set aside. The court emphasised that manifest injustice would result if a party could avoid implementation of an award by instituting review proceedings and then claim prescription based on the delay...

Court Disposition

Appeal upheld; order of the Labour Court set aside; arbitration award has not prescribed.

Orders

  • The appeal is upheld.
  • The order of the court a quo is set aside and replaced with the order: 'The arbitration award of 15 September 2012 has not prescribed.'