South Africa Case Law

Hoku Investments (Pty) Ltd v Dr Pixley Kaisaka Seme Municipality and Others (69/2022)

Hoku Investments (Pty) Ltd v Dr Pixley Kaisaka Seme Municipality and Others (69/2022) [2023] ZAMPMHC 44 (22 December 2023)

Court

Middelburg High Court, Mpumalanga

Case number

69/2022

Judge

TV Ratshibvumo

High Court review challenge to a municipal land sale failed. The court held that public participation and statutory disposal requirements were sufficiently complied with.

• Promotion Of Administrative Justice Act
• Municipal Asset Disposal
• Public Participation
• Market Value Determination
• Bias In Administrative Action
• Administrative-law

Brooklyn Edge (Pty) Ltd and Another v City of Tshwane Metropolitan Municipality (37681/2012)

Brooklyn Edge (Pty) Ltd and Another v City of Tshwane Metropolitan Municipality (37681/2012) [2019] ZAGPPHC 233 (26 June 2019)

Court

North Gauteng High Court, Pretoria

Case number

37681/2012

Judge

Strijdom

The High Court ordered specific performance of a municipal land sale, holding the deed valid, not void for vagueness or prescription, and rejecting the City’s collateral challenge.

• Specific Performance
• Alienation Of Land Act
• Municipal Asset Disposal
• Prescription
• Contractual Interpretation
• Local Government Ordinance

Oranje Watersport CC v Dawid Kruiper Local Municipality and Others (2150/2016)

Oranje Watersport CC v Dawid Kruiper Local Municipality and Others (2150/2016) [2018] ZANCHC 42 (6 July 2018)

Court

Northern Cape High Court, Kimberley

Case number

2150/2016

Judges

Phatsoane ADJP, Lever AJ

The court found that the applicant was not required to exhaust internal remedies under the supply chain management policy or section 62 of the Municipal Systems Act, as the record of decision was not provided and accrued rights had vested in the second respondent. Section 124 of Ordinance 20 of 1974 was held to be impliedly repealed by the MFMA and its regulations, which now comprehensively regulate the disposal of municipal assets. The requirements of section 14 of the MFMA were satisfied: the council considered the sale in a public meeting, addressed market value and community value, and en…

Source excerpt

• Municipal Asset Disposal
• Internal Remedies Exhaustion
• Promotion Of Administrative Justice Act
• Public Tender Process
• Basic Municipal Services
• Implied Repeal

City of Tshwane Metropolitan Municipality v Brooklyn Edge (Pty) Ltd and Another (A290/2015)

City of Tshwane Metropolitan Municipality v Brooklyn Edge (Pty) Ltd and Another (A290/2015) [2016] ZAGPPHC 1088; [2017] 1 All SA 116 (GP) (11 November 2016)

Court

North Gauteng High Court, Pretoria

Case number

A290/2015

Judges

Prinsloo, Murphy, Khumalo

The High Court upheld an appeal and rescinded a default judgment against the municipality after finding an excusable attorney error and several triable defenses.

• Rescission Of Judgment
• Default Judgment
• Specific Performance
• Municipal Asset Disposal
• Prescription Act
• Institution Of Legal Proceedings Against Organs Of State

Hayes Matkovich Development (Pty) Ltd v Lekwa Local Municipality (34401/2012)

Hayes Matkovich Development (Pty) Ltd v Lekwa Local Municipality (34401/2012) [2015] ZAGPPHC 758 (16 September 2015)

Court

North Gauteng High Court, Pretoria

Case number

34401/2012

Judge

E Bertelsmann

The court found that the agreement of sale and the subsequent tender process for the development of the estate complied with the constitutional and statutory requirements for the disposal of municipal assets. The tender process was open, transparent, competitive, and fair, with all bidders informed of the obligation to compensate the plaintiff for prior losses. The defendant's arguments regarding unfairness and lack of compliance with section 217 of the Constitution and the MFMA were rejected, as the process followed all prescribed procedures and provided substantial benefit to the municipali…

Source excerpt

• Municipal Asset Disposal
• Breach Of Contract
• Tender Process
• Damages For Repudiation
• Alienation Of Land Act Compliance
• Supply Chain Management

Ya Rona Investments (Pty) Ltd v Mangaung Metropolitan Municipality and Another (5303/2010)

Ya Rona Investments (Pty) Ltd v Mangaung Metropolitan Municipality and Another (5303/2010) [2015] ZAFSHC 64 (19 March 2015)

Court

Free State High Court, Bloemfontein

Case number

5303/2010

Judges

Lekale, Moeng

The court held that a municipality’s setting of a revised land price was not administrative action under PAJA and dismissed the review.

• Municipal Asset Disposal
• Review Of Administrative Action
• Principle Of Legality
• Valuation Of Land
• Municipal Finance Management Act
• Municipal-asset-disposal

Lephondo v Dihlabeng Local Municipality (7493/2008)

Lephondo v Dihlabeng Local Municipality (7493/2008) [2009] ZAFSHC 99 (25 June 2009)

Court

Free State High Court, Bloemfontein

Case number

7493/2008

Judge

C.H.G. Van der Merwe

The court held that section 14 of the Local Government: Municipal Finance Management Act requires a municipal council to consider and approve the disposal of capital assets in a public meeting before any transfer or disposal can occur. The sale agreement between the applicant and respondent was concluded without such council approval and did not reference compliance with section 14. As a result, the agreement constituted a contract to commit an act made unlawful by statute and was therefore void. The power of attorney authorising transfer pursuant to the invalid agreement was likewise void. T…

Source excerpt

• Municipal Asset Disposal
• Alienation Of Land
• Statutory Invalidity
• Local Government Finance Management
• Contract Void For Illegality