Amangcolosi Community Trust and Others v Khathi and Others (9535/17P) [2018] ZAKZPHC 20 (29 May 2018)

80 Reportability
Trusts and Estates

Brief Summary

Interdict — Community trust — Applicants sought interdicts against respondents for unlawful intimidation and violence during trust meetings — Respondents, claiming rights to attend meetings, were not registered members of the trust — Court found genuine dispute regarding interpretation of trust deed — Respondents interdicted from committing acts of intimidation, harassment, or violence against trust members and employees — No order as to costs.

Comprehensive Summary

Summary of Judgment


1. Introduction


The matter concerned application proceedings in the KwaZulu-Natal Division of the High Court, Pietermaritzburg, in which the applicants sought interdictory relief against alleged intimidation, violence, and interference connected to the affairs and meetings of a community trust.


The applicants were the trustees of the Amangcolosi Community Trust, Ithuba Agriculture (Pty) Ltd (a company wholly owned by the trust and responsible for managing the trust’s farming operations), and Mr Alfred Xulu (a former trustee and a director of the company). The respondents were sixteen individuals from the same community who asserted an entitlement to participate in trust meetings.


Procedurally, the court recorded that this was the fourth application brought by the trustees and the company against the respondents since 2008, arising from repeated disturbances, violence, intimidation, and assaults, with prior contempt proceedings having occurred due to alleged disobedience of court orders. The present application culminated in a hearing on 18 May 2018, with judgment delivered on 29 May 2018.


The general subject-matter of the dispute concerned conflict within a land-restitution beneficiary community regarding access to and participation in the trust’s general meetings, and the resulting allegations of unlawful conduct (intimidation, harassment, assault, interference with farming operations, and property damage).


2. Material Facts


The court relied on the following core background facts, which were not in dispute. The Amangcolosi Community Trust was established after the Ngcolosi/Ntumjambili communities succeeded in a land claim under the Restitution of Land Rights Act 22 of 1994, resulting in the award of land in the Kranskop area. The land was registered in the name of the trust. Most of it was used for commercial cane growing and timber farming, managed through Ithuba Agriculture (Pty) Ltd, which employed local community members as farm labourers.


The immediate dispute arose because the respondents, who were not registered members of the trust, asserted that they were nonetheless entitled to attend the trust’s general meetings. Their claim was linked to provisions in the trust deed concerning attendance rights for members and members of households.


The events giving rise to the application were described chronologically. An annual general meeting was scheduled for 24 June 2017 at the Ngcolosi Tribal Court in Kranskop, which was located within a fenced area with controlled access through a gate. Because of previous incidents, the trustees engaged security guards to manage a registration process limited to those whose names appeared on the trust’s membership register. It was not disputed that the respondents sought entry but were refused. On the applicants’ version, the respondents pushed past security guards, entered the fenced area, assaulted and threatened persons inside, and shots were fired, disrupting the registration process and resulting in the meeting being adjourned to 8 July 2017 for safety reasons.


On 8 July 2017, the respondents again arrived at the venue, but security contained them outside the gate and the meeting proceeded, during which new trustees were elected. The court recorded allegations that as members left the meeting they were attacked and injured, and that thereafter some respondents went to the eighth applicant’s house where he was harassed, intimidated, and threatened with death. It was also alleged that farmworkers nearby were threatened and told to stop working or face assault.


A further fact treated by the court as significant was that it was not disputed on the papers that the respondents were present on the relevant occasions when violence was perpetrated, and that not one of them filed an affidavit going on oath to deny being a party to the conduct alleged. This absence of sworn denial was central to the court’s conclusion on the entitlement to interdictory relief.


The court also identified a material dispute (which it characterised as genuine) concerning the interpretation of clause 9.11 of the trust deed, which the respondents relied on for their claimed entitlement to attend meetings. During argument, it emerged that members at the last general meeting had regarded clause 9.11 as ambiguous and mandated trustees to formulate a proposed amendment to be discussed and voted on at the next general meeting. After taking instructions during argument, applicants’ counsel informed the court that the respondents would be allowed to attend the forthcoming general meeting, and there appeared to be agreement that they could speak but were not entitled to vote in terms of the trust deed. In light of this development, the applicants no longer pursued relief aimed at keeping respondents away from the meeting place.


3. Legal Issues


The central legal questions the court was required to determine were, first, whether the applicants had established an entitlement to an interdict restraining the respondents from unlawful conduct in the form of intimidation, harassment, interference with employees and farming operations, assault (or threats of assault) directed at trustees or members, and damage to property associated with the trust or its company.


Second, the court had to determine the appropriate costs order, particularly where the applicants obtained interdictory relief but the conflict had been precipitated, at least in part, by disagreement about meeting attendance rights under the trust deed and where developments during argument altered the practical focus of the relief.


The dispute primarily concerned the application of legal standards for interdictory relief to the facts as presented in motion proceedings, and a discretionary value judgment regarding costs. Although the interpretation of clause 9.11 of the trust deed was raised as a live dispute, the court’s reasoning indicates that the interdict ultimately granted turned on the unlawful conduct and the absence of sworn denials, rather than on a definitive determination of the clause’s meaning.


4. Court’s Reasoning


In addressing the interdict, the court attached weight to the uncontested procedural and evidentiary position that the respondents were present on the occasions when violence was perpetrated and that none of the respondents provided a sworn denial that he was party to those acts. The court treated this as sufficient to justify interdictory relief restraining the respondents from committing violent and intimidatory acts of the kind described.


The court also explained how the scope of the requested relief changed during argument. Once it became clear that there was a genuine dispute about the meaning of clause 9.11 and that the trust community itself regarded the clause as ambiguous and intended to clarify it, the applicants indicated that respondents would be allowed to attend the forthcoming meeting. This concession meant that the applicants no longer pursued orders designed to exclude respondents from the meeting venue. Correspondingly, the respondents accepted through counsel that, irrespective of their position on attendance rights, they were not permitted to engage in unlawful intimidation or violence. The court’s reasoning reflects that the interdict granted served to address the remaining live controversy: preventing further unlawful conduct.


On costs, applicants’ counsel argued that the applicants had been substantially successful and should therefore receive costs. The court nonetheless exercised its discretion against a costs award. It reasoned that the immediate catalyst for the conflict was the trustees’ earlier refusal to allow respondents to attend the general meeting. The court further noted that there might be substance in the respondents’ contention that clause 9.11 entitled them to attend, and that the clause was regarded as ambiguous by the trust’s members and earmarked for clarification. Importantly, the court observed that none of this context had been disclosed in the papers. The court considered that the decision to allow attendance at the next meeting would likely defuse tensions, and concluded that fairness required no order as to costs.


5. Outcome and Relief


The court granted an interdict restraining the respondents from intimidating, harassing, or interfering with any employee of Ithuba Agriculture (Pty) Ltd or any person involved in or connected with its farming operations; from intimidating, harassing, or assaulting any of the trustees or members of the trust; and from causing damage to any property of the trustees or members of the trust or Ithuba Agriculture (Pty) Ltd.


The court made no order as to costs.


Cases Cited


Amangcolosi Community Trust and Others v Khathi and Others (9535/17P) [2018] ZAKZPHC 20 (29 May 2018)


Legislation Cited


Restitution of Land Rights Act 22 of 1994


Rules of Court Cited


No rules of court were cited in the judgment.


Held


The court held that the applicants were entitled to interdictory relief restraining the respondents from intimidation, harassment, interference with farming operations and employees, assaults (or threats thereof) against trustees or members, and damage to relevant property, because the respondents were present at the incidents described and none filed sworn denials of participation. The court further held that, despite the grant of interdictory relief, the appropriate exercise of discretion on costs was to make no costs order, given that the initial dispute was precipitated by the trustees’ refusal to allow respondents to attend meetings and because the trust deed provision relied upon by respondents was acknowledged (during argument) to be ambiguous and slated for clarification.


LEGAL PRINCIPLES


The judgment applied the principle that a court may grant an interdict to restrain threatened or ongoing unlawful conduct such as intimidation, harassment, assault, interference, and property damage, particularly where the factual basis for the restraint is not meaningfully rebutted on oath in motion proceedings. The absence of sworn denials, in circumstances where respondents were alleged to have been present during violent incidents, was treated as supporting the grant of final interdictory relief aimed at preventing recurrence.


The judgment also applied the principle that costs are discretionary, and that a court may depart from the outcome-based approach to costs where fairness so requires. In exercising that discretion, the court considered the broader context contributing to the dispute, including the role of the trustees’ initial refusal to permit meeting attendance and the existence of a genuine interpretive dispute regarding the trust deed which was not fully ventilated on the papers but which bore on the equities of a costs award.

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[2018] ZAKZPHC 20
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Amangcolosi Community Trust and Others v Khathi and Others (9535/17P) [2018] ZAKZPHC 20 (29 May 2018)

IN
THE HIGH COURT OF SOUTH AFRICA
KWAZULU-NATAL,
DIVISION, PIETERMARITZBURG
CASE
NO:
9535/17P
In
the matter between:
AMANGCOLOSI
COMMUNITY TRUST

First Applicant
AND
13 OTHER APPLICANTS
and
JABULANI
SAPHINDA
KHATHI

First Respondent
AND
15 OTHER RESPONDENTS
ORDER
(A)
The respondents are interdicted and restrained from:
(i)
intimidating, harassing or interfering with any employee of Ithuba
Agriculture
(Pty) Ltd or any person involved in or connected with its
farming operations;
(ii)
intimidating, harassing or assaulting any of the trustees or members
of the trust;
(iii)
causing damage to any property of the trustees or members of the
trust or Ithuba Agriculture
(Pty) Ltd.
(B)
There will be no order as to costs.
JUDGMENT
Delivered
on: 29 May 2018
PLOOS
VAN AMSTEL J
[1]
The applicants in this matter are the trustees of the Amangcolosi
Community Trust, a company called Ithuba Agriculture (Pty)
Ltd, of
which the trust is the sole shareholder, and Mr Alfred Xulu, a former
trustee of the trust and a director of the company.
They seek various
orders against the sixteen respondents, who are members of the same
community and claim to be entitled to attend
meetings of the trust.
The orders sought in the notice of motion are, in summary, interdicts
restraining the respondents from committing
unlawful actions of
intimidation, interference, and assault in connection with meetings
of the trust.
[2]
The trust was established after the Ngcolosi/Ntumjambili communities
succeeded in a land claim in terms of the
Restitution of Land Rights
Act 22 of 1994
and was awarded certain land in the Kranskop area. The
land is now registered in the name of the trust. The bulk of it is
used
for commercial cane growing and timber farming. It is managed by
the company to which I have referred, which employs persons from
the
local community as farm labourers.
[3]
The current dispute arose when the respondents, who are not members
of the trust, claimed to be entitled to attend general meetings
of
the trust, but were not allowed to do so by the trustees.
[4]
An annual general meeting of the trust was scheduled to take place on
24 June 2017 at the Ngcolosi Tribal Court at Kranskop.
The court is
situated in a fenced off area and access is gained through a gate.
Because of previous incidents the trustees employed
security guards
who assisted with the registration process, which involved the
identification of members whose names appeared on
the register of
members, who were then allowed to enter the fenced off area one by
one. It is not disputed that the respondents
also wanted to enter,
but were not allowed to do so. The deponent to the founding affidavit
says the respondents pushed past the
security guards, entered the
fenced off area, assaulted and threatened members who were already
inside, and some shots were fired.
The registration process was
completely disrupted and in the interests of safety the meeting was
adjourned to 8 July 2017.
[5]
On 8 July 2017 the respondents again arrived at the meeting place. On
this occasion the security guards managed to contain them
outside the
gate. The meeting proceeded and new trustees were elected. As members
were leaving after the meeting some of them were
attacked and
injured. The respondents, or some of them, then went to the house of
the eighth applicant where he was harassed and
intimidated and
threatened with death. They also threatened and intimidated
farmworkers who were nearby and told them to stop working,
failing
which they would be assaulted.
[6]
The deponent says this is the fourth application which the trustees
and the company have brought against the respondents since
2008,
relating to disturbances, violence, intimidation and assault. There
have also been contempt applications as the respondents
disobeyed the
court orders.
[7]
The basis on which the respondents claim to be entitled to attend the
general meetings of the trust is clause 9.11 of the trust
deed, which
provides that members and members of households who have reached the
age of eighteen years shall be entitled to attend
and speak at a
general meeting, inspect any minutes or other records of decisions of
any general meeting and trustee meetings,
inspect copies of financial
statements and records of the trust, inspect the membership register
and be candidates for election
as trustees.
[8]
Clause 7. 1 provides for the registration of members in a membership
register. The respondents do not claim to be members. They
do claim
to be members of the households of registered members, and claim that
clause 9. 11 applies to them. A ‘household’
is defined in
clause 3.2 as a registered card carrying member and all his/her
dependants and direct descendants.
[9]
The stance taken by the trustees on the papers was that clause 9. 11
does not entitle respondents to attend a general meeting,
and that
only registered members are allowed to do so. During argument before
me it became clear that there is a genuine dispute
about the meaning
of the clause, and I was informed that at the last general meeting
the members agreed that the clause was ambiguous
and that it should
be clarified. The trustees were mandated to formulate a proposed
amendment to the trust deed and this is to
be discussed and voted on
at the next general meeting.
[10]
After senior counsel for the trustees took instructions I was
informed from the bar that the respondents will be allowed to
attend
the forthcoming general meeting. There seemed to be agreement that
the respondents would be allowed to speak at the meeting,
but that in
terms of the trust deed they are not entitled to vote.
[11]
In the light of this development the applicants no longer sought the
orders which would have been intended to keep the respondents
away
from the meeting place. The respondents in turn accepted, through
their counsel, that whether or not they agree with the trustees
or
the members, they are not allowed to commit unlawful acts of
intimidation and violence.
[12]
It was not disputed on the papers that the respondents were present
on the occasion which I have described when acts of violence
were
perpetrated. Not one of them has gone on oath and denied that he was
party to this. The applicants are therefore entitled
to an interdict
restraining the respondents from committing violent acts such as
those to which I have referred.
[13]
Counsel for the applicants submitted that in that event the
applicants would have been substantially successful and should
get
their costs. However, what gave rise to the trouble in the first
place was the refusal by the trustees to allow the respondents
to
attend the general meeting. There may well be substance in the
respondents’ contention that they are entitled to attend
the
meeting, pursuant to clause 9. 11. As I have said, I was informed
from the bar that at a previous general meeting the members
felt that
the clause was ambiguous and should be clarified. None of this was
mentioned in the papers before me. The applicants
have now decided to
allow the respondents to attend the next general meeting, which will
hopefully defuse the tension. I think
a fair exercise of my
discretion will be that there should be no order as to costs.
[14]
I make the following order:
(A)
The respondents are interdicted and restrained from:
(i)
intimidating, harassing or interfering with any employee of Ithuba
Agriculture
(Pty) Ltd or any person involved in or connected with its
farming operations;
(ii)
intimidating, harassing or assaulting any of the trustees or members
of the trust;
(iii)
causing damage to any property of the trustees or members of the
trust or Ithuba Agriculture
(Pty) Ltd.
(B)
There will be no order as to costs.
_________________
Ploos
van Amstel J
Appearances:
For
the Applicants
:
Y Moodley SC
Instructed
by
:
Kunene
Attorneys
Pietermaritzburg
For
the Respondents
:
S Tshangana
Instructed
by
:
Siza Khumalo Attorneys
C/o Siva Chetty &
Company
Pietermaritzburg
Date
Judgment Reserved
:
18 May 2018
Date
of Judgment
:
29 May 2018