Virtual Benefit Solutions Tech (Pty) Ltd v Koekemoer and Others (2023/082132) [2023] ZAGPJHC 1065 (22 September 2023)
- Citation
- [2023] ZAGPJHC 1065
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- South Gauteng High Court, Johannesburg
- Panel
- S D J Wilson
- Case number
- 2023/082132
More details
- Court
- South Gauteng High Court, Johannesburg
- Panel
- S D J Wilson
- Case number
- 2023/082132
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that although the respondents' attorney's conduct in obtaining the property from the Sheriff after the discharge of the attachment order was questionable, it did not amount to contempt of court. Moorcroft AJ's order did not expressly or by necessary implication direct the return of the property to the applicant or prohibit the respondents from taking possession. The applicant conceded that there was no breach of the order and did not advance any other legal basis for the return of the property. The dispute over possession is rooted in a contested contractual matter, and the court declined to develop the law of contempt to cover conduct inconsistent with the unstated consequences of a court order. Accordingly, the application for contempt and return of property was dismissed.
Court disposition
Application dismissed; each party to pay their own costs.
Orders
- The application is dismissed.
- Each party is to pay their own costs.
02
Material facts
Parties
Virtual Benefit Solutions Tech (Pty) Ltd
Applicant Counsel: B DelportDr Hendrik Lambert Koekemoer
Respondent Counsel: HP van NieuwenhuizenAmlike Holdings (Pty) Ltd
Respondent Counsel: HP van NieuwenhuizenAmlike South Africa (Pty) Ltd
Respondent Counsel: HP van Nieuwenhuizen03
Procedural history
Posture
Urgent Application / Application for Contempt and Return of Property Following Discharge of Ex Parte Attachment Order
04
Questions and positions
Legal issues
- 01
Whether the respondents' attorney acted in contempt of Moorcroft AJ's order by obtaining possession of property after the ex parte attachment order was discharged.
- 02
Whether the applicant is entitled to an order directing the return of the property.
- 03
Whether there is any other legal basis for the applicant to demand the return of the property.
Party arguments
- Applicant
- The applicant contended that the conduct of the respondents' attorney in demanding the property from the Sheriff after the discharge of the ex parte attachment order was contemptuous of the court's order. The applicant sought a declaration of contempt and an order compelling the respondents to return the property. The applicant argued that the judgment of Moorcroft AJ, which dismissed the ex parte application and discharged the attachment order, implied that the property should revert to the applicant.
- Respondent
- The respondents argued that there was no breach of Moorcroft AJ's order, as the order did not expressly or by necessary implication prohibit the respondents from obtaining possession of the property. They maintained that the issue of possession was not determined by the court, and that the applicant had no legal basis to demand the return of the property. The respondents denied any contemptuous conduct and opposed the relief sought.
05
Court’s reasoning
Legal principles
- 01
S v Mamabolo (E TV and Others Intervening) 2001 (3) SA 409 (CC)
Constructive contempt is only committed where a party acts maliciously to frustrate the ability of a court to decide an issue that it has not yet been able to determine.
- 02
Fakie NO v CCII Systems (Pty) Ltd 2006 (4) SA 326 (SCA)
A court order must be clear and unambiguous in its terms to found contempt proceedings; conduct inconsistent with unstated consequences of an order does not constitute contempt.
06
Ratio, limits and disposition
Ratio decidendi
The court found that although the respondents' attorney's conduct in obtaining the property from the Sheriff after the discharge of the attachment order was questionable, it did not amount to contempt of court. Moorcroft AJ's order did not expressly or by necessary implication direct the return of the property to the applicant or prohibit the respondents from taking possession. The applicant conceded that there was no breach of the order and did not advance any other legal basis for the return of the property. The dispute over possession is rooted in a contested contractual matter, and the court declined to develop the law of contempt to cover conduct inconsistent with the unstated consequences of a court order. Accordingly, the application for contempt and return of property was dismissed.
Obiter and limits
- The outcome, though perverse, does not justify judicial intervention absent a clear breach of a court order.
- The law of contempt should not be extended to cover conduct inconsistent with the unstated but reasonably apprehended consequences of a court order.
- The issue of possession remains a contested contractual dispute and is not suitable for resolution in contempt proceedings.
Court disposition
Application dismissed; each party to pay their own costs.
- The application is dismissed.
- Each party is to pay their own costs.
Source and reliance status
South Gauteng High Court, Johannesburg
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Judgment reading view
Judgment text
The complete available source text.
South Gauteng High Court, Johannesburg
Judgment
IN THE HIGH COURT OF
SOUTH AFRICA
(GAUTENG DIVISION, JOHANNESBURG)
Case No. 2023/082132
NOT REPORTABLE
NOT OF INTEREST TO OTHER
JUDGES
REVISED
22.09.23
In the matter between:
VIRTUAL BENEFIT SOLUTIONS TECH (PTY) LTD Applicant And
DR
HENDRIK LAMBERT KOEKEMOER First Respondent
AMLIKE HOLDINGS (PTY) LTD Second Respondent
AMLIKE SOUTH AFRICA (PTY) LTD Third Respondent
JUDGMENT
WILSON J:
1 On 18 August 2023 the first respondent, Dr. Koekemoer, and the second respondent, Amlike, approached my sister Yacoob J ex parte for an order attaching several items of moveable and incorporeal property then in the possession of the applicant, “VBS”.
Yacoob J granted that order, but, once the order was served and the property was attached, VBS set the matter down for reconsideration
before my brother Moorcroft AJ. On reconsideration, Moorcroft AJ discharged Yacoob J’s order and dismissed the ex parte application with costs. He did so on the basis that neither Dr. Koekemoer nor Amlike had the necessary standing to sue for the relief they obtained from Yacoob J.
2 Most reasonable people would assume that this meant that the property should go back to VBS. But that did not happen. Shortly after Moorcroft AJ’s order was handed down, Dr. Koekemoer’s and Amlike’s attorney wrote to the Sheriff and demanded that the Sheriff give the property to his clients. The Sheriff acquiesced.
3 This meant that, although neither Dr. Koekemoer nor Amlike were ever entitled to the order attaching the property, the end result was that they obtained possession of it anyway.
4 This outcome is plainly perverse. But I do not think I can do anything about it. VBS asks me to declare that Dr. Koekemoer’s
and Amlike’s attorney’s conduct was contemptuous of Moorcroft AJ’s order, and to direct the respondents to purge
this contempt by returning the property. But I do not see how that relief follows. Moorcroft AJ declined to order the return of the property to VBS, despite being asked to do so. Moorcroft AJ does not explain in his judgment why he declined to make such an order, but it is possible that he felt that, the matter having been determined on the issue of standing, there was no warrant to enter into the issue of who had the right to possess the property the Sheriff attached.
5 Be that as it may, Moorcroft AJ having declined to say where the property should go, there was nothing inherently contemptuous –
as opposed to just plain sneaky – in what Dr. Koekemoer’s and Amlike’s attorney did. Ms. Delport, who appeared for VBS, accepted that there was no breach of Moorcroft AJ’s order. Wisely, she declined to make out a case of constructive contempt, given that constructive contempt is only committed where a party acts maliciously to frustrate the ability of a court to decide an issue that it has not yet been able to determine.
6 The situation in this case is different. Although most reasonable people would consider that Moorcroft AJ’s judgment cleared the way for VBS to go and get the property back from the Sheriff, his order does not expressly, or by necessary implication, forbid any of the respondents from doing what they did.
7 It was not suggested that I should develop the law of contempt to apply to situations in which a party acts inconsistently with a
court order’s unstated, but reasonably apprehended, consequences, and I would have been disinclined to do so.
8 Ms. Delport did not identify any other basis on which VBS could demand the return of the property, and none was pleaded. The property is the hotly-contested object of a contractual dispute about the sale of a business, and the issue of who has the right to possess
the property is unlikely to be clear cut.
9 For all these reasons, the application must fail. Mr. van Nieuwenhuizen asked for a dismissal with costs, but I do not see why Dr. Koekemoer’s and Amlike’s attorney’s sharp conduct should be rewarded to that extent.
10 The application is dismissed, with each party paying their own costs.
S D J WILSON
Judge of the High Court
This judgment is handed down electronically by circulation to the parties or their legal representatives by email, by uploading to Caselines, and by publication of the judgment to the South African Legal Information Institute. The date for hand-down is deemed to be 22 September 2023.
HEARD ON: 19 September 2023
DECIDED ON: 22 September 2023
For the Applicant:
B Delport
Instructed by
Lanham-Love Galbraith-Van Reenen Inc
For the Respondents:
HP van Nieuwenhuizen
Coetzee Attorneys
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