Professional Update
A
monthly newsletter for KZN Attorneys from the Kwazulu-Natal Law Society

12 June 2009

This professional service draws attention to current and important items of news
 and members are directed to the hosts' websites

InfoUpdate 12 of 2009
Recent Judgments

Electronic copies of this information may be obtained from our librarians at help@lawlibrary.co.za or click on the underlined hyperlink where relevant

Western Cape High Court (previously Cape Provincial Division) - http://www.saflii.org.za/za/cases/ZAWCHC/ ; Court rolls at http://www.saflii.org/blog/?page_id=134

18 June 2009
11125/08 [2009] ZAWCHC 96
McMillan NO v Pott and Others

Ex-cricketer forces colleagues to buy him out - 22 June
Former South African cricketer Brian McMillan has succeeded in getting the Western Cape High Court to compel fellow shareholders in a company he previously managed to buy out his shares held in his family trust. Acting Judge Ashley Binns-Ward decided it was possible to formulate a buyout order that would not be unfair to any of the competing parties involved, even if it were true that McMillan misappropriated funds from Tygerberg Minolta, which he set up and managed until February last year, when the other shareholders removed him from his position. - IOL website

18 June 2009
A16/2009 [2009] ZAWCHC 95
Tabata and Another v S

17 June 2009
9164/09 [2009] ZAWCHC 94
De Vries and Others v Eden District Municipality and Others

12 June 2009
A105/09 [2009] ZAWCHC 93
Grosch v S

4 June 2009
16123/2008 [2009] ZAWCHC 91
Claasen trading as Mostly Media v Delport trading as AD Industrial Chemicals

4 June 2009
13044/08 [2009] ZAWCHC 85
Munnik Basson Dagama Incorporated v Traffic Environment Services and Technologies (Pty) Ltd

4 June 2009
16123/2008 [2009] ZAWCHC 84
Philip Claasen trading as Mostly Media v Delport trading as AD Industrial Chemicals

1 June 2009
15427/08 [2009] ZAWCHC 81
Standard Bank of South Africa Ltd v Hunkydory Investments 188 (Pty) Ltd and Others

20 May 2009
16231/2008 [2009] ZAWCHC 80
Swartland Winery Ltd v Group LFE (SA) (Pty) Ltd and and Another

Widow takes company to court over investment - 30 May
A 69-year-old widow has brought down a multimillion-rand property investment company in a brave fight to preserve "almost all the money she ever had in the world". Elma Taylor, from Franskraal in the Overberg, successfully applied for the provisional liquidation of City Capital SA Property Holdings Ltd, but she and more than a thousand pensioners countrywide could still face dire financial straits. Papers before the Cape High Court indicate that about 1 200 investors - 90 percent of whom are pensioners - stand to lose their investments in the company which only two months ago claimed its net value stood at around R238 million. - IOL website

Property syndication's troubles surface in court - 7 June
An investor has applied for the liquidation of a big South African property syndication scheme's holding company, City Capital SA Property Holdings, it was reported in the Weekend Argus on Saturday. The Cape High Court has given interested parties until July 27 to tell it why it should not grant an application by Elma Taylor, aged 69 of Franskraal, to place it in liquidation - a move that is allegedly not expected to be opposed by the company. City Capital, which has been the subject of a Financial Services Board investigation started earlier this year, had its financial services provider licence suspended last week, reported the paper. About R500m has allegedly been invested by mainly retired individuals in the property syndication, which faces collapse. - Realestateweb website

Scorpions ruling soon? - 4 June
Businessman Hugh Glenister should know before the end of June whether his latest court challenge to the legislation disbanding the Scorpions would be successful. A full bench of the Western Cape High Court heard arguments in the matter on Tuesday and Wednesday. - iafrica website

Scorpions court bid questioned - 5 June
Businessman Hugh Glenister's campaign to stop the demise of the Scorpions borders on vexatious, a full Bench of the Cape High Court heard on Wednesday. Senior counsel Willie Duminy said Glenister had placed before the court mounds of irrelevant information which the three judges and others had had to read. Duminy, along with advocate Sipokazi Poswa-Lerotholi, represent the country's president, ministers of police (formerly safety and security) and justice. - Mail & Guardian website

Judge dismisses challenge on Scorpions - 18 June
Businessman Hugh Glenister's latest attempt to save the Scorpions has been rejected by a full bench of the Cape High Court. In a ruling handed down on Thursday, Judge Siraj Desai said he would give reasons later, and that no costs order was being made. - IOL website

Credit crunch hits Kebble beneficiary - 7 June
Slain mining magnate Brett Kebble turned him into a multimillionaire, but nowadays former ANC Youth League member Lunga Ncwana's home in Tokai, Cape Town, is being advertised in a newspaper for a sale in execution in two weeks. Deeds office records show the house was purchased in 2003 for R4.7-million, with a R1-million bond underwritten by Nedbank. Ncwana has previously said in court papers that he used money he was paid by Kebble to buy the house, which is registered in the name of the Ncwana Family Trust. Nedbank and the City of Cape Town are not the only creditors wanting money from Ncwana. Christopher Brand, who is acting on behalf of Kebble's estate trustees, said there were three matters pending against Ncwana, his mother, Nora Zine Ncwana, and the Ncwana Family Trust. It is alleged that Kebble paid the money to Ncwana, either directly or via third parties, when he was insolvent. In 2007, the trustees brought a separate Western Cape High Court application to recover money from Ncwana, Songezo Mjongile, a former member of the ANC Youth League and Fikza Investment Holdings, run by former minister of social development Zola Skweyiya's wife, Thuthukile. - The Times website

Steps to prevent billboard abuse - 11 June
The City of Cape Town has applied to the Cape High Court for an order compelling a leading signage company, Independent Outdoor Media, to remove, at its own cost, nine billboards erected on buildings in contravention of the Municipality’s Outdoor Advertising and Signage By-Law. The City has, in addition, cited the owners of the buildings on which the billboards have been erected as respondents in the application, and requested the Court to grant the same removal order against them. - Cape Business News website

Baroness von Bad Debt - 20 June
Victor and Alexandra von Maltzahn lived the high life since moving to South Africa 10 years ago. Descended from wealthy European families, the couple assumed the titles baron and baroness and hosted lavish parties at their antique-filled home, Constantia Heights, in Cape Town, hobnobbing with neighbour Mark Thatcher and his mom, former British prime minister Margaret Thatcher. But things do not look so rosy anymore. The baroness appears to have "gone to ground", according to Standard Bank, which is pursuing an application in the Western Cape High Court to extract about R45-million from the couple, excluding interest. Last week, a number of creditors joined forces in an effort to get their money from the Von Maltzahns, and a provisional sequestration order was granted. - The Times website

Lotto winner admits helping dispose of body - 24 June
Former Lotto winner Jason "Pang" Canterbury denies conspiring to have a man who allegedly sold drugs for him murdered on his property, but admits to helping dispose of the body. Canterbury's advocate, Pete Mihalik, applied for his discharge in the Western Cape High Court on counts of murder, conspiracy to commit murder and the unlawful possession of a firearm and ammunition after the State closed its case against him and his fellow accused on Tuesday. - IOL website

Police probe judge's death - 10 June
Cape Town police launched a murder investigation yesterday after the body of acting Judge Patrick Maqubela was found in his Sea Point apartment wrapped in a sheet with a bloody pillow covering his face. Maqubela, 60, a former Robben Island detainee, worked as an advocate in Johannesburg when he was asked to serve as an acting judge on the Cape bench last year. At the time of his death, he was presiding over an application by the City of Cape Town to evict xenophobia victims from the Blue Waters camp. - The Times website

Maqubela probe at 'a sensitive stage' - 11 June
IOL website

Judge may have been poisoned - 11 June
News24 website

Judge 'murdered by someone very close to him' - 22 June
Relatives of Judge Ntobeko Maqubela, who was found dead two weeks ago, say they believe he was murdered by "someone very close to him". Family members are convinced that because of the tight security at the judge’s home in Bantry Bay, Cape Town, those who accessed it needed permission from within. So whoever killed him was someone who knew him very well, they reason. - Sowetan website

Fidentia Case

Fidentia curators probe 'significant entity' - 22 June
Fidentia's curators have been probing a deal involving "a significant entity in the financial services industry", according to a report made public on Monday. In the report, dated March 10, curators Dines Gihwala and George Papadakis detailed how they had recovered, or had firm agreements on, about R160-million of Fidentia cash. They also listed a number of assets that still had to be sold, including the Sante Winelands Hotel and Spa at Franschoek, and Fidentia's former headquarters in Cape Town's Century City, for which they are seeking more than R53-million. - IOL website

Fidentia : more criminal charges? - 23 June
More criminal charges are expected to be added to the list of embezzlement allegations in the multimillion-rand Fidentia scandal as curators probe two substantial transactions linked to the company. - IOL website

Road Accident Fund Case

Blow to Road Accident Fund

June 11 2009 16:02

Cape Town - The Cape High Court on Thursday stopped the Road Accident Fund (RAF) from implementing a new system in which claims were to be settled with road crash victims directly, instead of through their attorneys.

Judge Denis van Reenen granted a final interdict against the RAF, confirming an interim interdict granted last August by the Western Cape 's acting judge President Jeanette Traverso.

The final interdict brought to an end an urgent application launched by the Law Society of SA, the SA Association of Personal Injury Lawyers and road accident victim Luvuyo Mbele.

The purpose of the proceedings was to stop the RAF implementing the new Direct Payment System (DPS), and to declare invalid an RAF administrative decision to implement the DPS.

It transpired in Thursday's proceedings that despite the interim interdict granted in August last year, the RAF had secretly persisted with the DPS, encouraging RAF claimants to end the mandates of their respective attorneys, so as to receive settlement of their claims directly.

Senior counsel Jeremy Gauntlett, representing the law society, described the actions of the RAF as "grotesque and a disgrace".

- Sapa

Supplied by LSSA

"Grotesque" RAF stopped by High Court action - 11 June
Judge Denis van Reenen granted a final interdict against the RAF, confirming an interim interdict granted last August by the Western Cape's Acting Judge President Jeanette Traverso. The final interdict brought to an end an urgent application launched by the Law Society of SA, the SA Association of Personal Injury Lawyers and road accident victim Luvuyo Mbele. The purpose of the proceedings was to stop the RAF implementing the new Direct Payment System (DPS), and to declare invalid an RAF administrative decision to implement the DPS. -
Business Day website

Law Society turns to High Court - 11 June
The Law Society of SA will on Thursday ask the Western Cape High Court to set aside the "direct payment system" imposed last year by the Road Accident Fund. - IOL website

Press release : 10 May 2009

Law Society to Pursue Final Court Order Against Road Accident Fund 'Direct Payment System' Which Deprives Road Accident Victims of Legal Representation to Obtain Reasonable Compensation from RAF

Tomorrow the Western Cape High Court, Cape Town , will be asked by the Law Society of South Africa (LSSA) to set aside the 'direct payment system' imposed last year by the Road Accident Fund (RAF).

The case is the sequel to a successful urgent application by the LSSA last August suspending the operation of the direct payment system until the present case could be brought. Acting Judge President Traverso granted the LSSA, a paraplegic road accident victim, Mr Luvoyo Mbele, and the South African Association of Personal Injury Lawyers an urgent interdict against the RAF, with a punitive costs order, in view of its conduct in the case.

Last week the RAF – having failed to file any opposing argument – wrote to the LSSA asserting that, because the RAF now intended to publish in the media a notice withdrawing its decision to impose the 'direct payment system', and was offering to pay the three applicants' costs (again on a punitive scale), the court challenge had become 'moot'.

In response the LSSA has accepted the costs tender but disputed that the legal challenge is moot : there is no proof that the RAF Board has yet taken a proper decision to undo its decisions to adopt and then implement the direct payment system, and in the past it has acted with such irregularity and against the public good, that a final court order against it is in any event necessary.

The attack by the LSSA on the RAF's decision is on both procedural and substantive grounds. In short, the LSSA argues that the RAF acted irregularly in taking its decision on 30 October 2007 affecting tens of thousands of road accident victims and legal practitioners without proper notice to them, and then keeping this secret until it announced the implementation of the system on a week's notice in July last year. Substantively, the LSSA argues, the direct payment system is in clear breach of constitutional rights and is irrational and unreasonable. It is designed to ensure that road accident victims – many the most vulnerable members of society – will not, in the result, have effective legal representation in their battles to achieve compensation from the RAF.

The LSSA's full heads of argument can be downloaded from :

http://raf.lssa.org.za/Documents/DirectPaymentSystem/tabid/63/Default.aspx

For further information, please contact Ms Jacqui Sohn, Chairperson of the Law Society's Road Accident Fund Committee, at (021) 424 2638.

Issued on behalf of the Co-Chairpersons of the Law Society of South Africa by :
Barbara Whittle
Communication Manager, Law Society of South Africa
Telephone : 012-366 8800 or 083-380 1307
E-mail : barbara@lssa.org.za
Website: www.lssa.org.za

InfoUpdate : an Information Service supplied by the KwaZulu-Natal Law Society