Sca2024 79
Sca2024 79
Sca2024 79
JUDGMENT
Not reportable
Case No: 642/2022
In the matter between:
SNOWY OWL PROPERTIES 284 (PTY) LTD FIRST APPELLANT
ANTON LOUW SECOND APPELLANT
MICHAEL KIRKINNIS THIRD APPELLANT
DEREK WOODHOUSE FOURTH APPELLANT
TARA GETTY FIFTH APPELLANT
ZUKA PROPERTIES (PTY) LTD SIXTH APPELLANT
MUN-YA WANA CONSERVANCY SEVENTH APPELLANT
SIMON NAYLOR EIGHTH APPELLANT
and
MZIKI SHARE BLOCK LIMITED RESPONDENT
Neutral citation: Snowy Owl Properties 284 (Pty) Ltd and Others v Mziki
Share Block Limited (642/2022) [2024] ZASCA 79 (27 May 2024)
Coram: PONNAN, MOTHLE, WEINER AND GOOSEN JJA AND
COPPIN AJA
Heard: 2 May 2024
Delivered: 27 May 2024
2
Goosen JA (Ponnan and Mothle and Weiner JJA and Coppin AJA
concurring):
[1] Snowy Owl Properties 284 (Pty) Ltd (Snowy Owl) is the owner of two
large farms situated in northern KwaZulu-Natal (the Snowy Owl properties).
Mziki Share Block Limited (Mziki) is a share block company which owns land
(the Mziki properties) adjacent to the Snowy Owl properties. Snowy Owl and
Mziki entered into an agreement to establish a functionally integrated private
game reserve on their properties. The operation of the private game reserve was
approved, subject to the registration of a servitude over the Snowy Owl properties
in favour of the Mziki properties. During 1990, a notarial agreement of servitude
was registered over the properties, permitting the parties access to a network of
roads on the properties, for the purpose of game viewing.
3
Background
[2] The relationship between Snowy Owl and Mziki has, despite their common
interest in the operation of a private game reserve, been bedevilled by conflict.
The terms of the agreement of servitude have been the subject of disputes which
have been referred to arbitration.1
[4] In July 2017, Snowy Owl commenced digging up roads in the plains area
of its properties using a bulldozer. Branches and piles of gravel were dumped on
the road surfaces to prevent vehicle access. Notices were issued to Mziki and
other parties who exercise rights of traverse, advising that certain roads would be
closed for maintenance purposes and others permanently closed for ecological
reasons. The dispute went to arbitration. Mziki filed its statement of claim in
February 2018. It claimed that the destruction and closure of the roads infringed
its servitudinal rights and called for the rehabilitation and re-opening of roads that
1
A history of the disputes is set out in the arbitration award of Advocate Dodson SC, handed down on 2 April
2020. See also the judgment of this Court in Snowy Owl Properties 284 (Pty) Ltd v Mziki Share Block Limited
[2023] ZASCA 2 paras 1 and 4.
2
The appeal panel delivered its award in August 2016.
4
had been closed. Snowy Owl pleaded that it was obliged to close certain roads to
prevent ecological damage, and to give effect to an environmental management
plan prepared to secure declaration of the reserve as a protected area.3 In respect
of other roads, it stated that temporary closure was necessary for maintenance
work. The arbitration commenced before Advocate Dodson SC in October 2019
and was concluded in March 2020.
[5] On 2 April 2020, Dodson SC issued an award (the 2020 award). He found
that the closure of the roads was in breach of Mziki’s servitudinal rights and
directed that Snowy Owl rehabilitate the roads, including what were described as
‘the River roads', and restore access to Mziki within specified time periods. These
were subject to termination of the ‘national lockdown’, proclaimed under the
National Disaster Management Act 57 of 2002 to combat the COVID-19
pandemic, which imposed restrictions on specified activities, including game
farming activities.
3
The Snowy Owl properties form part of a larger conservancy, the Mun-Ya-Wana Conservancy. Snowy Owl and
the Conservancy were seeking to have the area declared as a ‘protected area’ in terms of the National
Environmental Management: Protected Areas Act 57 of 2003 (NEMPAA) It was declared a protected area in
September 2019.
5
[7] On 18 February 2021, Radebe J granted the application, making the 2020
award an order of court. Snowy Owl was granted leave to appeal to this Court by
Radebe J on 27 July 2021.
[8] On 19 January 2023, this Court dismissed the appeal against Radebe J’s
order.4 On 23 February 2023, Snowy Owl applied to the Constitutional Court for
leave to appeal against the order of this Court. The Constitutional Court refused
the application for leave to appeal on 28 September 2023, thereby bringing to
finality the challenge to the enforceability of the 2020 award.
4
Snowy Owl Properties 284 (Pty) Ltd v Mziki Share Block Limited [2023] ZASCA 2 (Snowy Owl).
5
The sixth respondent was Zuka Properties (Pty) Ltd, an owner of adjacent property. The seventh respondent was
the Mun-Ya-Wana Conservancy, an entity established as a nature reserve in terms NEMPAA. The eighth
respondent was a person employed as the Conservancy Warden by the Mun-Ya-Wana Conservancy. No relief
was sought against these respondents.
6
[10] Seegobin J heard the application for interim relief on 20 October 2020. The
parties agreed to an order in the form of a rule nisi operating as an interim interdict
pending the return date of the interdict application. The return date was set for 4
December 2020, which was the date that the award application was to be heard.
Both applications came before Radebe J. Counsel, who then appeared for Snowy
Owl, informed Radebe J that the award application should be adjudicated first
since the outcome might have a bearing on the outcome of the interdict
application.6 The interdict application was therefore held in abeyance and the
return date of the rule nisi was extended.
6
Before this Court counsel for Snowy Owl took issue with the characterisation of the former counsel’s
submissions as constituting a concession that the outcome of the award application was dispositive of the defence
in the interdict application.
7
The appeal against Radebe J’s order was heard on 22 September 2022.
7
(the MMP)8. The MMP allowed the Conservancy Warden (the eighth appellant)
in conjunction with the owner of the land (Snowy Owl) to close roads for
ecological reasons. Snowy Owl therefore opposed the interdict application on the
same basis advanced in the arbitration proceedings and before Radebe J.
[13] Before Chili J, counsel for Snowy Owl submitted that the interdict
application should be adjourned pending an appeal against the order of Radebe J.
Chili J rejected the submission. He held as follows:
‘In its defence, the first respondent sought to suggest that there was no obligation on it to
comply with the terms of the arbitration award given the fact that doing so would amount to
performing acts sanctioned by law. … That is not what I am seized with in the present
application. As already pointed out, the question whether an award should be made an order of
court has already been decided and is the subject of an appeal. [Counsel] submitted that the
appropriate order would be to adjourn the matter, reserve costs and extend the rule pending the
decision on appeal. I do not agree. The issue before me is very simple. All that the first
respondent (in conjunction with the second to fifth respondents) is required to do, is to undo
the damage done to the roads after the grant of the award.
It was sufficiently established that the applicant has a clear right, ex facie the award and the
servitude itself, for the reinstatement and re-opening of the roads which are the subject of the
servitude.’
[14] Regarding Snowy Owl’s reliance upon the approved MMP, Chili J found
that it had already been approved when the arbitration occurred. He found that
Snowy Owl could not rely on the alleged approval of the MMP to justify the
closure of the roads because a mandatory requirement of consultation with all
interested parties, provided in s 39(3) of NEMPAA, had not been met. Mziki had
not been consulted on the MMP. Chili J concluded that no justification existed
8
The environmental management plan was styled the Mun-Ya-Wana Management Plan, hence MMP.
8
for the infringement of Mziki’s servitudinal rights and that it was therefore
entitled to confirmation of the rule nisi. 9
The appeal
[15] Prior to the hearing in this Court, a directive was issued requiring Snowy
Owl to indicate whether it was persisting in this appeal, considering the final
determination of the challenge to the enforceability of the arbitration award.
Supplementary heads of argument were filed in which Snowy Owl confirmed its
persistence with the appeal.
[16] It is apposite to highlight the findings of this Court when it dismissed the
appeal against Radebe J’s order. In dealing with the argument that the award
required the performance of illegal or unlawful acts, this Court said:
‘Firstly, to debate what an [Environmental Assessment Practitioner] may or may not
recommend if the appellant applies for authorisation is both irrelevant and unhelpful. But more
importantly, the appellant’s contentions must be rejected for the simple reason that the
justification for the closure of the roads concerned was raised before the arbitrator and he
rejected it after considering the factual and expert evidence presented to him. The arbitrator
found that there were no legislative reasons for the closure nor was there provision in the
servitude agreement that mandated the closure of any of the existing roads. The evidence in the
affidavit of the [Environmental Assessment Practitioner] seems to be another version of the
9
The rule nisi granted by Seegobin J called upon the first to fifth appellants (then cited as respondents) to show
cause why the following order should not be granted:
‘1.1 The first to fifth respondents are interdicted from doing anything or instructing anyone to prevent the applicant
and its members from gaining access to any of the roads, including the roads known as River Road, River Loop
and River Link, situated on the properties …. [to] exercise their rights in terms of the servitude over the said
properties.
1.2 The first to fifth respondents are interdicted from closing or instructing anyone to close, any of the roads
referred to in paragraph 1.1 above, in addition to said River Road and River Link.
1.3 The first to fifth respondents are interdicted from damaging or instructing anyone to damage, the surfaces of
any of the roads referred to in paragraph 1.1 above.
1.4 The first to fifth respondents are interdicted from taking any further steps or instructing anyone to take any
further steps to make the said River Road and River Link less passable for vehicles.’
Paragraph 1.5 required Snowy Owl and the cited respondents to restore and repair River Road and River Link and
to remove any obstacles placed on the said roads. Paragraph 1.1 to 1.4 operated as an interim interdict pending
finalisation of the application.
9
evidence already presented by the witnesses for the appellant, including, an environmental
expert, Mr Neary, before the arbitrator. This is not an appeal against the factual finding of the
arbitrator. It is therefore not permissible, nor appropriate for the appellant to engage in a factual
debate on matters already considered in the arbitration proceedings and decided by the
arbitrator.’10
[17] Turning to Snowy Owl’s reliance upon the MMP to justify the closure of
the River roads, this Court held:
This argument is once more raised before us but in a reformulated manner. As an example, and
to lay this argument to rest, the Mun-Ya-Wana Conservancy was declared a Protected Area on
5 September 2019 in terms of s 23 of NEMPAA. The arbitration hearing took place on 15
March 2020 and the MMP was approved on 5 March 2020. The latter date pre-dates the hearing
of the arbitration and the resultant award which was made on 2 April 2020. Therefore, the
conclusion I reached regarding the MMP in the previous paragraphs equally applies here. Much
reliance was also placed on the Mun-Ya-Wana Conservancy or its Warden, but we are also not
told what its/his attitude is to the debates raised by the appellant including the authorisations
bemoaned about. Another important consideration to make in this regard is that the respondent
is not a member of the Mun-Ya-Wana Conservancy. The respondent was never consulted
before the MMP, heavily relied upon by the appellant, was prepared and allegedly approved as
required by s 39(1) of NEMPAA. This section is peremptory and provides that when a
management plan for a protected area is being prepared, all the affected parties who have an
interest must be consulted.’11
[18] This finding accords with that of Chili J on the same issue. The only legal
justification which would permit Snowy Owl to close roads in breach of the
servitude rights, has therefore been decisively dismissed by this Court.
[19] Snowy Owl persisted with the appeal as it took the view that a live
controversy remained. Counsel submitted that:
10
Snowy Owl fn 4 above, para 19.
11
Ibid para 29.
10
(a) Since Chili J had impermissibly decided an issue which had already been
decided (by Radebe J) contrary to the doctrine of res judicata, his order could not
stand.
(b) Chili J granted final relief whereas only interim relief was warranted, given
the appeal against Radebe J’s order.
(c) There is no need for the order granted by Chili J seeing that Radebe J’s
order, which is now final, provides adequate protection for the rights of Mziki.
(d) Radebe J’s order can be enforced by contempt of court proceedings in the
event of a breach.
[20] No sensible basis for persistence with this appeal is discernible from the
argument. Reliance upon the doctrine of res judicata is entirely misplaced. Mziki
based its claim for an interdict on the further breach of the servitude and the
binding effect of the arbitration award. The breach was admitted. Mziki wanted
to restrain further breaches and to secure re-opening of the closed roads. Its cause
of action was not the same as the cause of action advanced to have the arbitration
award made an order of court. There, Mziki relied on the Arbitration Act. Snowy
Owl, however, defended the interdict application on the same basis it resisted the
application before Radebe J. That defence did not meet the assertion of Mziki’s
servitude rights.
[21] Mziki did not ask Chili J to decide issues that had already been decided. It
required Chili J to determine whether there was a fresh or ongoing breach of its
servitude rights by the closure of roads which occurred after the 2020 award was
delivered. The argument that Chili J ought not to have granted final relief because
of the pending appeal in which Snowy Owl’s defences remained live, loses sight
of the basis of the claim for an interdict. Snowy Owl’s defences did not engage
that claim. There was therefore no reason not to confirm the rule nisi and grant
final relief.
11
[22] Snowy Owl did not challenge the terms of the order granted by Seegobin
J. This is hardly surprising since it was an agreed order. Yet, as the argument
progressed, counsel suggested that Seegobin J’s order was overbroad because of
its prohibition against closure of ‘any roads’. It was submitted that Mziki had not
made out a case for such relief. The argument was without substance. The
agreement of servitude confers upon Mziki a right of traverse using all existing
roads on the Snowy Owl properties. Snowy Owl consented to the interim order.
It admitted that its conduct breached the servitude. Counsel nevertheless argued
that this Court should set aside Chili J’s order and replace it with an order
dismissing the application. When asked to point out a legal or factual basis upon
which this Court could do so, none was suggested. The only basis suggested was
that the order was now no longer required because Radebe J’s order secured
adequate protection for Mziki. Yet, on this argument, since Mziki would be
entitled to obtain the relief provided by Chili J’s order, there is no basis to set it
aside.
[23] The suggestion that Mziki ought rather to have enforced its rights through
contempt proceedings is also entirely misplaced. The fact that a party may pursue
contempt proceedings to enforce an order against a recalcitrant party, does not
preclude an interdict to restrain an ongoing infringement of a right. Counsel could
not point to authority to the contrary, and I know of none. In any event, when the
interim interdict was granted by Seegobin J on 20 October 2020, there was no
court order which could be enforced by contempt proceedings. The award
application was argued on 4 December 2020 and the order was issued on 18
February 2021. Thereafter, Radebe J’s order was the subject of an appeal. It was
not enforceable until the matter was put to rest by the Constitutional Court.
12
[26] It follows that the appeal must be dismissed. What remains is the costs.
The ordinary rule is that the costs follow the result. The question, however, is
whether a punitive costs order is warranted. In my view it is, for the following
reasons.
12
Judicial Services Commission and Another v Cape Bar Council and Another [2012] ZASCA 115; 2013 (1) SA
170 (SCA) para 12.
13
Mtjhabeng Local Municipality v Eskom Holdings Ltd [2017] ZACC 35; 2018 (1) SA 9 (CC) para 91.
14
Rosebank Mall (Pty) Ltd and Another v Cradock Heights (Pty) Ltd 2004 (2) SA 353 (W) para 11.
15
City of Johannesburg v Changing Tides (Pty) Ltd and 97 Others (The Socio-Economic Rights Institute of South
Africa intervening as amicus curiae) [2012] ZASCA 116; 2012 (6) SA 294 (SCA) para 36.
13
[27] Chili J’s judgment makes it plain that he was dealing with an admitted
breach of the terms of the 2020 award and the servitude, for which no justification
was offered other than a legal contention which had already been decided. He
decided the matter upon the basis that Mziki was entitled to protection of its rights
of servitude which had been further breached and that it required the re-opening
of roads which had been closed after the 2020 award was delivered.
[29] Accordingly, the appeal is dismissed with costs on the scale as between
attorney and client.
_________________
G GOOSEN
JUDGE OF APPEAL
14
Appearances
For the appellants: R S Shepstone
Instructed by: Errol Goss Attorneys, Johannesburg
Eugene Attorneys, Bloemfontein