South Africa Case Law

Body Corporate of Central Square v Paxton N.O and Others (2021/30916)

Body Corporate of Central Square v Paxton N.O and Others (2021/30916) [2023] ZAGPJHC 24 (17 January 2023)

Court

South Gauteng High Court, Johannesburg

Case number

2021/30916

Judge

Dosio

The court found that the developer unilaterally amended the management rules and levy apportionment in the 2017 certificate without disclosing the intended changes in the deeds of alienation, contrary to s11(2)(d) of the STSMA and s32(2) and s32(4) of the STA. The amendments imposed a floor rather than a ceiling on levy contributions, adversely affecting purchasers in the residential section. The first and second CSOS adjudication orders correctly identified these defects and were not influenced by material errors of law or irrelevant considerations. The 2019 amendment to the management rules…

Source excerpt

• Promotion Of Administrative Justice Act
• Sectional Titles Schemes Management Act
• Community Schemes Ombud Service Act
• Rectification Of Certificate
• Declaratory Relief
• Levy Apportionment

Derby Downs Management Association v Assegaai River Properties (Pty) Ltd and Another (AR1/2021)

Derby Downs Management Association v Assegaai River Properties (Pty) Ltd and Another (AR1/2021) [2021] ZAKZPHC 91; 2022 (2) SA 71 (KZP) (12 November 2021)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

AR1/2021

Judges

Olsen, Steyn, Ploos van Amstel

The court held that the first 2017 special resolution could not retrospectively revive or validate the void 2007 resolution, as statutory voidness under the Companies Act, 1973, is absolute and not subject to ratification. The attempt to retrospectively amend the articles of association conflicted with s 16(9) of the Companies Act, 2008, which prescribes when amendments take effect. However, the second 2017 resolution, passed by special resolution, validly ratified the directors' past conduct in raising levies on the GLA basis, regularising the apportionment for the period 2007–2017 under s 2…

Source excerpt

• Companies Act 1973
• Companies Act 2008
• Ratification Of Company Acts
• Special Resolution
• Memorandum Of Incorporation
• Levy Apportionment

Body Corporate of the Bend v Holgado and Others (17295/2014)

Body Corporate of the Bend v Holgado and Others (17295/2014) [2018] ZAKZPHC 44 (25 July 2018)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

17295/2014

Judge

Poyo Dlwati

The High Court held that BBM Attorneys lacked authority to launch the main application, but upheld the 9 August 2014 trustees’ meeting and set aside later invalid resolutions.

• Sectional Titles Act
• Authority Of Attorney
• Management Rules
• Trustee Meetings
• Levy Apportionment
• Sectional-title-law

Sable Hills Waterfront Estate CC v Sable Hills Waterfront Estate Home Owners Association NPC (199/2016)

Sable Hills Waterfront Estate CC v Sable Hills Waterfront Estate Home Owners Association NPC (199/2016) [2016] ZASCA 170 (24 November 2016)

Court

Supreme Court of Appeal

Case number

199/2016

Judges

Wallis, Petse, Dlodlo, Makgoka, Schippers

The Supreme Court of Appeal held that estate levies were to be levied on each stand shown on the general plan, not only on the developer’s remainder.

• Levy Apportionment
• Interpretation Of Articles Of Association
• Deeds Registries Act
• Developer Liability
• Levy-apportionment
• Homeowners-association

Assegaai River Properties (Pty) Ltd v Derby Downs Management Association (5986/2015)

Assegaai River Properties (Pty) Ltd v Derby Downs Management Association (5986/2015) [2016] ZAKZDHC 39 (28 September 2016)

Court

Kwazulu-Natal High Court, Durban

Case number

5986/2015

Judge

Gorven

The High Court dismissed an application and counterapplication over levy apportionment because the special resolution relied on had not been lodged and registered and was void.

• Special Resolution
• Articles Of Association
• Levy Apportionment
• Non Joinder
• Material Dispute Of Fact
• Special-resolution