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South Africa decisions
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P.P v M.P (11672/2017) [2018] ZAWCHC 140 (6 November 2018)
The High Court varied a divorced spouse’s maintenance escalation clause from a fixed 12% yearly increase to CPI plus 2.5%, subject to a 12% cap.
Farjas (Pty) Ltd v Minister of Agriculture and Land Affairs of the Republic of South Africa and Others, Rainy Days Farms (Pty) Ltd v Minister of Agriculture and Land Affairs of the Republic of South Africa and Others (753/11) [2012] ZASCA 173; [2013] 1 All SA 381 (SCA); 2013 (3) SA 263 (SCA) (29 November 2012)
The Supreme Court of Appeal held that the Land Claims Court exercised its discretion judicially in applying the Consumer Price Index to adjust compensation for expropriated properties under the Restitution of Land Rights Act. The CPI is an official and widely accepted measure for changes in the value of money over time and its application does not result in unjust or inequitable compensation. The alternative methods proposed by the appellants, such as compound interest or property indices, were rejected as inappropriate for restitution claims, which are not commercial transactions but reparat…
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Farjas (Pty) Ltd v Miinister of Agriculture and Land Affairs and Others, Rainy Days Farms v Miinister of Agriculture and Land Affairs and Others (LCC57/2009, LCC58/2009) [2011] ZALCC 22 (23 June 2011)
The court found that the plaintiffs were under compensated for the expropriation of their properties and that the compensation paid was not just and equitable as required by the Constitution and the Restitution Act. While various methods for adjusting the compensation were considered, including compound interest and housing indices, the court held that the Consumer Price Index (CPI) is the most appropriate method to account for the change in the value of money over time. The court rejected speculative calculations based on investment returns or development profits, finding them unreliable. Th…
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