Roadmac Surfacing (Pty) Ltd v MEC for the Department of Police, Roads and Transport, Free State Province and Another (461/2023) [2024] ZASCA 157 (14 November 2024)

58 Reportability
Public Procurement

Brief Summary

Appeal — Review application — Dismissal of review application by high court — Appellant sought to challenge tender award — High court failed to determine costs related to interim interdict — Whether appeal will have practical effect or result — Exceptional circumstances exist due to unresolved costs — Appeal partially succeeds, and first respondent ordered to pay specific wasted costs and costs of the appeal.

Comprehensive Summary

Case Note


Roadmac Surfacing (Pty) Ltd v MEC for the Department of Police, Roads and Transport, Free State Province and Another (461/2023) [2024] ZASCA 157 (14 November 2024)


Reportability


This case is reportable due to its implications on the interpretation of section 16(2) of the Superior Courts Act 10 of 2013, particularly regarding the determination of costs in appeals and the concept of practical effect. The judgment clarifies the circumstances under which an appeal may be considered moot and emphasizes the necessity for courts to exercise discretion in cost determinations, thereby contributing to the development of legal principles surrounding administrative law and judicial review.


Cases Cited



  • Naylor and Another v Jansen [2006] ZASCA 94; 2007 (1) SA 16 (SCA)

  • Logistic Technologies (Pty) Ltd v Coetzee and Others 1998 (3) SA 1071 (W)

  • Geldenhuys & Neethling v Beuthin 1918 AD 441

  • National Coalition for Gay and Lesbian Equality & Others v Minister of Home Affairs & Others [1999] ZACC 17; 2000 (2) SA 1 (CC); 2000 (1) BCLR 39


Legislation Cited



  • Superior Courts Act 10 of 2013

  • Constitution of the Republic of South Africa, 1996


Rules of Court Cited


No specific rules of court were cited in the judgment.


HEADNOTE


Summary


The Supreme Court of Appeal addressed an appeal by Roadmac Surfacing (Pty) Ltd against the dismissal of its review application concerning a tender award. The court examined whether the appeal had practical effect, particularly in light of unresolved costs from prior proceedings. The court ultimately found that the appeal was partially successful, ordering the first respondent to pay certain costs.


Key Issues


The key legal issues included whether the appeal would have practical effect, the determination of costs related to the review application, and the implications of the high court's failure to address these costs.


Held


The court held that the appeal was partially successful, varying the high court's order to include a directive for the first respondent to pay specific costs incurred by Roadmac. The court emphasized the importance of resolving outstanding costs to ensure justice.


THE FACTS


Roadmac Surfacing (Pty) Ltd submitted a bid for a tender awarded to Tau Pele Construction (Pty) Ltd. Dissatisfied with the outcome, Roadmac sought reasons for the decision and subsequently launched a review application, which was dismissed by the high court. An interim interdict was granted pending the review, but the high court did not resolve the costs associated with the interdict. The appeal was later adjourned due to the introduction of a completion certificate indicating that the works had been completed, raising questions about the appeal's practical effect.


THE ISSUES


The court needed to determine whether the appeal would have any practical effect given the completion of the works and the unresolved costs from the high court proceedings. Additionally, the court had to consider if the high court's failure to address the costs constituted exceptional circumstances warranting intervention.


ANALYSIS


The court analyzed the implications of the completion certificate and the high court's oversight regarding the costs. It noted that while the appeal on the merits was moot, the unresolved costs presented an important issue that required resolution. The court emphasized that the failure to exercise judicial discretion in determining costs could constitute exceptional circumstances, allowing the appeal to proceed.


REMEDY


The court ordered that the first respondent pay the wasted costs incurred on specific dates leading up to the interdict, as well as the costs of the appeal and the costs associated with the adjournment of the appeal. The order was varied to reflect these determinations, ensuring that Roadmac was compensated for its expenses.


LEGAL PRINCIPLES


The judgment established that an appeal may still be entertained even if the merits are moot, provided there are unresolved issues of costs that require judicial determination. It underscored the necessity for courts to exercise discretion in cost matters and highlighted the principle that courts exist to resolve concrete controversies rather than to provide advisory opinions on abstract legal questions.

THE SUPREME COURT OF APPEAL OF SOUTH AFRICA
JUDGMENT

Reportable
Case No: 461/2023

In the matter between:
ROADMAC SURFACING (PTY) LTD APPELLANT
and
MEC FOR DEPARTMENT OF POLICE,
ROADS AND TRANSPORT, FREE STATE
PROVINCE FIRST RESPONDENT
TAU PELE CONSTRUCTIONS (PTY) LTD SECOND RESPONDENT

Neutral citation: Roadmac Surfacing (Pty) Ltd v MEC for the Department of Police,
Roads and Transport, Free State Province and Another (461/2023)
[2024] ZASCA 157 (14 November 2024)
Coram: HUGHES, MABINDLA-BOQWANA, MOLEFE and KEIGHTLEY JJA and
MJALI AJA
Heard: 13 September 2024
Delivered: 14 November 2024
Summary: Appeal – s 16(2) of the Superior Courts Act 10 of 2013 – whether the
appeal will have practical effect or result – high court failed to deal with issue of
reserved costs – determination of costs as a consideration in terms of s 16(2)(a)(ii) –
existence of exceptional circumstances.

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___________________________________________________________________
ORDER
___________________________________________________________________
On appeal from: Free State D ivision the H igh C ourt, Bloemfontein (Pohl AJ and
Molitsoane J, sitting as court of first instance):
1 The appeal succeeds in part to the extent indicated below.
2 The order of the Free State Division of the High Court, Bloemfontein, is varied by
adding paragraph 2 to the order as follows:
‘(2) The first respondent is ordered to pay the wasted costs occasioned on 28
January 2022, 10 February 2022, and 24 March 2022, which costs shall include the
costs of two counsel, where so employed.’
3 The first respondent is ordered to pay the costs of the appeal and wasted costs
occasioned by the adjournment of the appeal on 7 May 2024, which costs shall include
the costs of two counsel, where so employed.
___________________________________________________________________
JUDGMENT
___________________________________________________________________
Hughes JA ( Mabindla-Boqwana, Molefe and Keightley JJA and Mjali AJA
concurring):
[1] The appellant is Roadmac Surfacing (Pty) Ltd (Roadmac), a company that
appeals against the dismissal of a review application, with costs, heard in the Free
State Division of the High Court , Bloemfontein before Pohl AJ and Molitsoane J ( the
high court). The appeal is with the leave of that court.

[2] On invitation by the first respondent, the MEC for the Department of Police,
Roads and Transport, Free State Province, Roadmac together with the second
respondent, Tau Pele Construction (Pty) Ltd, as well as other bidders, submitted bids
regarding a tender (Tender No:PR&T18/2021/22) for the Special Maintenance o n
Route P44/1&2 between Deneysville and Jim Fouche (the works) in the Free State
Province. Roadmac was unsuccessful as the second respondent was awarded the bid.
Not happy with the outcome, Roadmac sought reasons from the first respondent. After

Not happy with the outcome, Roadmac sought reasons from the first respondent. After
receipt thereof, Roadmac launched review proceedings premised on the fact that the
award of the tender to the second respondent was not fair, transparent, competitive,

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or cost effective. Pending the review proceedings, Roadmac applied for interim relief ,
seeking an interdict, which was granted on 28 March 2022. With immediate effect, the
first respondent was interdicted from giving instructions to the second respondent to
continue under the tender in question, and the second respondent was interdicted from
commencing with any further work.

[3] The order granting the interim interdict directed that the costs leading up to the
hearing of t he application for an interdict (being the 28 January 2022, 10 February
2022 and 24 March 2022), stand over for determination at a later stage (the Daffue J
order). The review application was heard on 7 November 2022 , and an order
dismissing this application was delivered on 14 November 2022. On 28 April 202 3
leave to appeal this order was granted by t he high court. Conspicuously, the cost s
aspect of the Daffue J order remains unresolved, as the high court failed to deal with
it. This failure is the subject matter of one of the grounds of appeal raised by Roadmac.

[4] The appeal was scheduled to be heard in this Court on 7 May 2024. However,
on the day in question, counsel for the first respondent handed up a Certificate of
Completion of Works (completion certificate) , which indicated that the works w ere
completed on 28 September 2023 . Th is completion certificate affirmed that, on 14
September 2023, the works carried out had been inspected and had been found to
have met all the required conditions for its issuance, in line with the project
specification. The question that then arose was whether the appeal will have practical
effect or result.

[5] At the request of counsel for Roadmac, the hearing of the appeal was
adjourned, as Roadmac had been taken by surprise . The matter was accordingly
postponed with costs reserved and was subsequently set down for 13 September
2024.

[6] Section 16(2)(a)(i) and (ii) of the Superior Courts Act 10 of 2013 provides:

2024.

[6] Section 16(2)(a)(i) and (ii) of the Superior Courts Act 10 of 2013 provides:
‘(i) When at the hearing of an appeal, the issues are of such a nature that the decision sought
will have no practical effect or result, the appeal may be dismissed on this ground alone.
(ii) Save under exceptional circumstances, the question whether the decision would have no
practical effect or result is to be determined without reference to any consideration of costs.’

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[7] The issue to be determined in this appeal is whether the judgment or order
sought by Roadmac will have any practical effect or result. I need to mention that , in
the appeal procee ding, the second respondent filed a notice to abide this Court’s
decision.

[8] However, Roadmac persisted in its argument that this Court is still obliged ‘to
declare the administrative acts complained of . . . to be constitutionally invalid’ by
invoking s 172(1) of the Constitution, which states:
‘When deciding a constitutional matter within its powers, a court –
(a) must declare that any law or conduct that is inconsistent with the Constitution is invalid to
the extent of its inconsistency; and
(b) may make any order that is just and equitable. . .’
Further, a separate ground raised was that there were pending costs occasioned prior
to the hearing of the review application, which the high court failed to deal with.

[9] The high court had the following to say when it granted Roadmac leave to
appeal to this Court:
‘However, I do accept that another court may come to a different finding that we ought to have
pertinently dealt with. . . Constitutionality as raised in these proceedings. Our failure to deal
with [the] issue[s] is. . .enough to grant leave to appeal. It is unnecessary for me to deal with
other grounds raised in the application for leave to appeal.’
What is glaringly obvious is that the high court did not appreciate that they had not
exercised their discretion to deal with the costs, which was argued in the review , that
had been held over for determination in the Daffue J order. Hence, the matter had not
reached finality when the review was determined.

[10] In this Court, Roadmac, argued that it was entitled to these costs. In addition, it
stated that the high court ’s failure constituted a misdirection , the high court having
failed to direct itself to all the pertinent and relevant issues. As such, Roadmac placed

failed to direct itself to all the pertinent and relevant issues. As such, Roadmac placed
reliance on Naylor and Another v Jansen (Naylor),1 that the failure of the high court to

1 Naylor and Another v Jansen [2006] ZASCA 94; 2007 (1) SA 16 (SCA) (Naylor) para 10; see also
Logistic Technologies (Pty) Ltd v Coetzee and Others 1998 (3) SA 1071 (W) at 1075J-1076A.

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exercise its discretio n, ‘at least, usually’ constituted exceptional circumstances as
envisaged in s 16(2)(a)(ii).
[11] Counsel for the first respondent argued that both the merits and the costs held
over were moot. However, in the course of his argument before this Court, he was
constrained to concede that finality had not been attained in the matter because of the
outstanding determination of costs. Further, that the first respondent was liable for the
costs of 7 May 2024 when the completion certificate was handed up from the bar,
which necessitated a postponement.

[12] It is obvious that despite the completion certificate having already been issued,
the first respondent drafted the heads of argument for this appeal on 26 October 2023
with no mention of this fact. By then, on 28 September 2023, the first respondent was
or ought to have been well aware that the matter was moot, as the compl etion
certificate was already on hand. However, the first respondent failed to take this Court
into its confidence and waited for the date of the appeal to spring the existence of the
completion certificate on both the Court and Roadmac. The second respondent is not
an innocent party in this conduct either , as they were signatories to the completion
certificate and were participants in this appeal before they decided to abide by the
decision of this Court.

[13] On the merits of the appeal, counsel for Roadmac argued that, even though the
relief it sought in relation to the award of the tender was moot and the appeal would
have no practical result or effect, it was entitled to a declaration by this Court in terms
of s 172 of the Constitution that the administrative act of t he first respondent was
invalid. When asked to what end such a declaration should be made , the response
advanced was that it might open an avenue for a civil suit against the first respondent.

[14] This, to my mind, is akin to Roadmac seeking advice from this Court to bolster

[14] This, to my mind, is akin to Roadmac seeking advice from this Court to bolster
a further civil suit. It is trite that courts will not decide matters which are purely academic
and will have no practical effect. This Court and the Constitutional Court have said this
much in a plethora of judgments, as far back as Geldenhuys & Neethling v Beuthin,2

2 Geldenhuys &Neethling v Beuthin 1918 AD at 441:

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and in National Coalition for Gay and Lesbian Equality & Others v Minister of Home
Affairs & Others:3
‘A case is moot and therefore not justifiable if it no longer presents an existing or live
controversy which should exist if the Court is to avoid giving advisory opinions on abstract -
propositions of law.’

[15] It follows that the merits in this matter ought not to detain this Court. The appeal
on the merits is academic, moot and of no practical effect, as the works had been
completed as far back as 2023.

[16] As to the issue of the outstanding costs determination, the following relevant
passage from Naylor4 is apposite referring to s21A of the Supreme Court Act , 59 of
1959 now replaced by s16(2)(a)(i) and (ii) of the Superior Courts Act 10 of 2013:
‘It would be convenient, at this stage, to dispose of the defendants’ argument that the appeal
should be dismissed because of the provisions of s 21A of the Supreme Court Act 59 of 1959.
That section provides, to the extent relevant for present purposes:
“(1) When at the hearing of any civil appeal to the Appellate Division or any Provincial or Local
Division of the Supreme Court the issues are of such a nature that the judgment or order sought
will have no practical effect or result, the appeal may be dismissed on this ground alone.
. . .
(3) Save under exceptional circumstances, the question whether the judgment or order would
have no practical effect or result, is to be determined without reference to consideration of
costs.”
I had occasion in Logistic Technologies (Pty) Ltd v Coetzee to express the view that a failure
to exercise a judicial discretion would (at least, usually) constitute an exceptional circumstance.
I still adhere to that view ─ for if the position were otherwise, a litigant adversely affected by a
costs order would not be able to escape the consequences of even the most egregious
misdirection which resulted in the order, simply because an appeal would be concerned only

misdirection which resulted in the order, simply because an appeal would be concerned only
with costs; and that, obviously, cannot be the effect of the section.’


‘After all, Courts of Law exist for the settlement of concrete controversies and actual infringements of
rights, not to pronounce upon abstract questions, or to advise upon differing contentions, however
important.’
3 National Coalition for Gay and Lesbian Equality & others v Minister of Home Affairs & others [1999]
ZACC 17; 2000 (2) SA 1 (CC) ; 2000 (1) BCLR 39 para 21 at footnote 18; Tecmed Africa (Pty) Ltd v
Minister of Health [2012] ZASCA 64; 2012 (4) All SA 149 (SCA) para 19.
4 Naylor para 10.

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[17] The costs referred to in this provision are the costs incurred in the court against
whose decision the appellant or would-be appellant is seeking to appeal, not the costs
in the appellate court.5 Such an appeal will only be entertained if there are exceptional
circumstances or an important issue of principle between the parties that requires a
resolution in the interest of justice. Taking into account the fact that the high court failed
to deal with the Daffue J order in relation to the costs which stood over, this is an
instance where an important issue between the parties affecting their interest requires
resolution for justice to prevail. Furthermore, the high court ’s failure to exercise it s
judicial discretion in dealing with the costs issue, as stated above, could amount to an
exceptional circumstance. Consequently, the circumstances of this case culminate into
an ideal situation where an appeal court may interfere in the interests of justice.

[18] I propose to deal with the issue of costs in this order: the Daffue J costs order,
the amended cost order in the review as a result of the success obtained by Roadmac,
costs of the postponement on 7 May 2024 and costs of the appeal.

[19] It would be well to remind ourselves that the Daffue J costs order made provision
for the costs leading up to the hearing of the applicat ion for an interdict, being 28
January 2022, 10 February 2022 and 24 March 2022 , which were to stand over for
determination at a later stage . Regarding the costs of 28 January 2022, these costs
relate to an urgent application for the first respondent to provide reasons for its decision
to award the tender to the second respondent and interdictory relief. The parties agreed
to postpone the application to 10 February 2022 to enable the first respondent to
provide the reasons, which it did on 7 February 2022. On 10 February 2022, the
application was yet again postponed to 24 March 2022 when the matter was heard by

application was yet again postponed to 24 March 2022 when the matter was heard by
Daffue J, where interdictory relief was granted on 28 March 2022 in favour of Roadmac.
Since Roadmac successfully obtained the interim interdict, it was entitled to obtain the
costs for the dates preceding the interdict order. It is not clear why Daffue J did not
deal with those costs when he heard the application for the interdict . As stated, the
high court overlooked the costs. In these circumstances, it is in the interests of justice
that the cost order of the review proceedings be amended.

5 John Walker Pools v Consolidated Aone Trade and Investment 6 (Pty) Ltd (in Liquidation) and Another
[2018] ZASCA 12; 2018 (4) SA 433 (SCA) para 8.

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[20] As to the costs in this Court, it was rightly conceded by the first respondent’s
counsel, that the postponement of the appeal on 7 May 2024 was occasioned by the
first respondent handing up the completion c ertificate dated September 2023 on that
date. As stated, this completion certificate was issued before the first respondent filed
its heads of argument in October 2023 and all the while , the first respondent did not
notify Roadmac and this Court of it prior to the hearing of the appeal. The first
respondent is therefore liable for the wasted costs occasioned by the postponement.

[21] Roadmac argued that the failure of the high court amounts to partial success on
appeal in these exceptional circumstances, warranting a costs order in their favour.
This argument has merit. This is more so because it was notified on the steps of this
Court about the completion certificate. It had already incurred the costs. Roadmac is
successful to this extent. There are also no reasons why costs in this appeal should
not follow the result. Roadmac having attained partial success in the appeal, is entitled
to these costs.

[22] In the result, the following order is granted:
1 The appeal succeeds in part to the extent indicated below.
2 The order of the Free State Division of the High Court, Bloemfontein, is varied by
adding paragraph 2 to the order as follows:
‘(2) The first respondent is ordered to pay the wasted costs occasioned on 28
January 2022, 10 February 2022, and 24 March 2022, which costs shall include
the costs of two counsel, where so employed.’
3 The first respondent is ordered to pay the costs of the appeal and wasted costs
occasioned by the adjournment of the appeal on 7 May 2024, which costs to include
the costs of two counsel, where so employed.

___________________
W HUGHES
JUDGE OF APPEAL

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Appearances
For the appellant: N Snellenburg SC with J J Buys
Instructed by: York Attorneys, Bloemfontein

For the first respondent: L R Bomela with M B Mojaki
Instructed by: The State Attorney, Bloemfontein.