South Africa Case Law

Redefine Properties Ltd v Intrepid Heights (Pty) Ltd and Others (08481/2021)

Redefine Properties Ltd v Intrepid Heights (Pty) Ltd and Others (08481/2021) [2023] ZAKZDHC 95 (14 June 2023)

Court

Kwazulu-Natal High Court, Durban

Case number

08481/2021

Judge

Steyn

The court found that the resolutions passed at the Special General Meeting on 5 March 2021 were not validly adopted in accordance with the Sectional Titles Schemes Management Act or the prescribed management rules. The purported modification of the method for charging electricity consumption, and the retrospective adjustment of levy accounts, were not effected by a proper special resolution of the members, nor was the written consent of adversely affected owners obtained. The body corporate is statutorily obliged to collect levies as raised and may not refund or retrospectively adjust contrib…

Source excerpt

• Sectional Titles Schemes Management Act
• Levy Liability Modification
• Participation Quota
• Body Corporate Powers
• Special And Unanimous Resolutions

Rampul v Trustees of Mangrove Beach Centre Body Corporate and Others (9823/2022P)

Rampul v Trustees of Mangrove Beach Centre Body Corporate and Others (9823/2022P) [2022] ZAKZPHC 81 (15 December 2022)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

9823/2022P

Judge

Mossop

The court found that the adjudicator erred in applying the defence of res judicata, as the parties and issues in the prior application were not the same as those before the adjudicator. However, upon considering the merits, the court held that the special rules granting commercial section owners a greater percentage of the vote are lawful and reasonable in the context of a mixed-use scheme. The Sectional Titles Act and Sectional Titles Schemes Management Act expressly permit such differentiation, and the appellant, as a prudent purchaser, should have been aware of the special rules when acqui…

Source excerpt

• Sectional Title Schemes Management
• Body Corporate Rules
• Res Judicata
• Unfair Discrimination
• Participation Quota
• Constitutional Equality

Extra Dimensions 121 (Pty) Limited v Body Corporate of Marine Sands and Another (AR121/2017)

Extra Dimensions 121 (Pty) Limited v Body Corporate of Marine Sands and Another (AR121/2017) [2018] ZAKZPHC 34 (24 August 2018)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

AR121/2017

Judges

Steyn, Van Zÿl, Ploos van Amstel

The court held that the body corporate's special resolution, which purported to modify the liability of sectional owners for levy contributions by amending the participation quota schedule, was invalid. The Sectional Titles Act requires that any modification to the liability for contributions must be effected through a management rule, adopted by unanimous resolution, not by a conduct rule via special resolution. The resolution in question did not comply with these statutory requirements, as it was passed as a conduct rule and lacked the necessary unanimous consent. The scheme cannot have two…

Source excerpt

• Sectional Titles Act
• Participation Quota
• Levy Contributions
• Ultra Vires
• Special Resolution
• Management Vs Conduct Rules

Extra Dimensions 121 (Pty) Limited v Body Corporate of Marine Sands and Another (AR121/2017)

Extra Dimensions 121 (Pty) Limited v Body Corporate of Marine Sands and Another (AR121/2017) [2018] ZAKZPHC 69 (24 August 2018)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

AR121/2017

Judges

Steyn, Van Zÿl, Ploos van Amstel

The court held that a body corporate could not use a special resolution and conduct rules to alter levy liability; the resolution was declared invalid.

• Sectional Titles Act
• Participation Quota
• Levy Contributions
• Ultra Vires Resolution
• Management Vs Conduct Rules
• Sectional-titles