Fuller v Megacor Holdings (J3263/99) [2003] ZALC 63; [2003] 7 BLLR 711 (LC) (28 May 2003)

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Brief Summary

Labour Law — Rescission of judgment — Application for rescission of judgment granted in absence of applicant — Applicant claiming he was unfairly retrenched and that his attorney's negligence led to his absence — Court finding no good cause shown for rescission as applicant failed to demonstrate reasonable steps taken to avoid default — Application dismissed with costs.

IN THE LABOUR COURT OF SOUTH AFRICA
HELD AT BRAAMFONTEIN           CASE NO.  
J3263/99
In the matter between:
FULLER, LESLEY                  APPLICANT
And
Megacor Holdings              RESPONDENT
                                                JUDGMENT 
ZILWA AJ
INTRODUCTION
1. This is an application for the rescission of judgment granted in  
the absence of the applicant by this court on the 27 th  August  
2001. This application is brought in terms of section 165 (a) of  
the   Labour   Relations   Act   no.   66   of   1995   as   amended   (“the  
Act”),   and   alternatively   in   terms   of   the   common   law   powers  
vested in this court. 
2. The respondent opposes the application. 
BACKGROUND FACTS

3. The applicant’s application in the main case was dismissed by  
this court on the 27 th  August 2001. The main application was  
based on an alleged the unfair retrenchment of the applicant  
resulting in the termination of his services with the respondent  
with effect from the 1 st  October 1999. The respondent denies  
this and contend that the applicant was dismissed on the 10 th 
December 1999 due to misconduct after a disciplinary enquiry. I  
will deal with this issue later in this judgment.
4. Neither the applicant nor his attorney were present in court at  
the appointed date and time and it was on this basis that the  
main application was dismissed.
5. The applicant’s explanation for his failure to appear in court is  
simply that he had not received the notice of setdown and he  
had no idea that the matter had been setdown for hearing on  
that date. He places the blame entirely on the negligence of his  
attorney   by   not   informing   him   of   the   said   setdown   date.   He  
found out later, in September 2001 that his attorney had been  
suspended   from   practice   by   the   Law   Society.   When   he  
subsequently contacted his attorney, she stated that the matter  
was not yet ripe for hearing. He further obtained his file from  
this attorney in September 2001.
According to applicant he had received a letter from his attorney  
dated the 8 th  February 2001 informing him that the trial date  
could  be  anticipated  in  May or   June  2001 and  that  applicant  
would in any event be advised by his attorney immediately a  
trial date was received.
On the 18 th  April 2001 the applicant addressed a letter to his  
attorney asking whether a trial date had been obtained for the  
matter. Subsequently to this letter the applicant made several  
attempts,   which   have   not   been   detailed   by   the   applicant,   to

contact his attorney without success. The applicant had earlier  
noticed that her attorney was dragging her heels in this matter.
8. The applicant only came to know about the dismissal of his 
application   on   the   3 rd  September   2001,   by   chance   in   a  
conversation   between   him   and   Peter   Barable.   Upon   gaining  
such   knowledge   he   immediately   contacted   his   present  
attorneys of record in order to establish how to deal with the  
matter which has resulted in the launching of these proceedings  
on the 19 th September 2001. 
PROVISIONS OF SECTION 165 (a) OF THE ACT
9. Section 165 (a) of the Act provides as follows :
“  The Labour Court, acting of its own accord or on the 
    application of any affected party may vary or rescind a 
    decision, judgement or order –
(a) erroneously sought or erroneously granted in the absence  
of party affected by that judgement or order;……….”
10. It is apparent from the reading of the section that its provisions  
relate to instances where these has been an apparent error in  
the granting of the relevant judgement or order by the Court. It  
is not a catalyst for the rescission of all judgements or order  
that may be granted in the absence of an affected by party.
11. Rule 16 A (1) (b) of the Rules of this Court has been devised  
specifically to deal with situations where a judgement or order  
has been granted in the absence of an affected party, then that  
party   may   within   15   days   after   acquiring   knowledge   of   such  
judgement or order apply on notice to all the interested parties  
to   set   it   aside,   as   it   deems   fit.   The   Court   when   takes   into  
consideration the principles of common law to determine good  
cause which is an essential ingredient of the application.

12. The applicant has not canvassed any facts to demonstrate an  
apparent error in the granting of the order of this Court on the  
27th August 2001.
13. Although the applicant has not referred to the requisite Rule 16  
A (1) of the Rules of this Court I will now deal with this application in  
terms of that Rule on the basis that it was made within the time limit  
of 15 days from the date of gaining knowledge of its existence and  
the common law referred to in the application.
COMMON LAW RESCISSION CONSIDERATIONS 
14.It is settled law that in application for rescission of a 
court judgement or order the applicant is required to show good  
cause,   including   reasonable   prospects   of   success.   See 
KOLOBE   V. PROXEWOS   (SOPHIA’S  RESTAURANT)  (2000)  
11 BLLR 1118 (LC) ;   ENZO PANEL BEATERS CC V CCMA &  
OTHERS (1999) 11 BLLR 1147 (LC) ;  SA EAGLE INSURANCE  
LTD V SEREBO 1985 (4) SA 50 (W) ;  PROMEDIA DRUKKERS  
& UITGEWERS (EDMS) BPK V KAIMOWITZ 1996 (4) SA 411  
(C);  CHETTY V LAW SOCIETY OF TRANSVAAL 1985 (2) SA  
756 (A)
     
15. The   court   exercises   its   discretionary   powers   when   determining  
whether   to   grant   a   rescission   or   not.   The   court’s   discretionary  
power is influenced by the considerations of fairness and justice  
having   due   regard   to   all   the   facts   and   circumstances   of   that  
particular   case.  The   onus   of  showing   the   existence   of   sufficient  
cause is on the applicant in each case, and he has to satisfy the  
court,   inter   alia,   that   there   was   some   reasonable   satisfactory  
explanation   why   the   judgment   was   allowed   to   be   granted   by  
default, see  DE WET & OTHERS V WESTERN BANK LTD 1979  
(2) SA 1031 (A) at 1042 F­ 1043 A .
EXPLANATION FOR ABSENCE

16. The   applicant   contends   that   his   absence   in   court   on   the   27 th 
August 2001 was caused solely by the negligence of his attorney  
and   he   considers   it   to   be   a   sufficient   explanation   in   the  
circumstances.
17. Our   courts   have   pronounced   on   numerous   occasions   that   the  
negligence of the applicant’s attorney or representative per se is  
not   sufficient   to   discharge   the   onus   resting   on   the   applicant   to  
show   good   cause,   see   KOLOBE  and   ELECTROCOM   P   cases  
supra. See also  SALOOJEE & ANOTHER NNO V MINISTER OF  
COMMUNITY   DEVELOPMENT   1965   (2)   SA   135   at   140   and  
ATHMARAM V SINGH 1989 (3) SA (D) .
18.In circumstances where the applicant’s representative is said to be  
negligent,   the   applicant   must   demonstrate   the   reasonable   steps  
that he has taken to ensure that the default does not occur, and  
these   would   depend   upon   the   circumstances   of   each   case.   A  
jurisprudence   has   evolved   from   the   abovementioned   cases   that  
the applicant:
a. Should   not   show   disinterest   in   the   conduct   of   his   own  
case;
b. Must maintain close contact with his attorneys;
c. Must   have   no   reason   to   distrust   his   attorneys’  
competence to look after his affairs.
These factors weigh more heavily on an applicant or plaintiff in a  
matter.
19. Other than the letter which the applicant addressed to his attorney  
on   the   18 th  April   2001   there   is   no   other   elaborate   conduct  
displayed by the applicant to show that he had an interest in the  
conduct of his case and that he maintained close contact with his  
attorney.   He   merely   avers   that   he   made   several   attempts   to  
contact his attorney without success, a mere ipse dexit. It seems  
to   me   that   the   applicant   had   a   reason   to   distrust   his   attorneys’

competence to look after his affairs as he avers that he had felt  
that his attorney was dragging her heels in this matter. This state  
of affairs must have required the applicant to be more proactive in  
contacting his attorney or otherwise to  withdraw his mandate from  
her and seek the services of a competent attorney. The applicant  
has failed to mention the steps that he took in the conduct of his  
case   between   April   2001   and   September   2001.   Surprising   he  
seemed   not   to   find   much   difficulty   in   communicating   with   his  
attorney after the 3 rd September 2001.   
PROSPECTS OF SUCCESS
20. The   applicant   contend  that  he  was  summarily  dismissed  by  the  
respondent   without   any   proper   procedure   being   followed   with  
effect from the 1 st  October 2001 as per letter by the respondent  
dated 1 st  October 2001. He further contends that subsequent to  
his   dismissal   “trumped   up”   disciplinary   charges   were   brought  
against him by the respondent in an attempt to legitimise his unfair  
dismissal.   He   was   found   guilty   in   a   disciplinary   enquiry   and  
dismissed   for   misconduct   on   the   10 th  December   1999   in   his  
absence. He did not attend the said disciplinary as he was, in his  
view, already dismissed on the 1 st October 1999.
21. The   respondent,   however,   contends   that   it   merely   gave   the  
applicant   a   three   months’   notice,   in   terms   of   his   contract   of  
employment,   to   terminated   his   services   with   effect   from   1 st 
October   1999   expiring   on   the   31 st  December   1999.   It   further  
informed the applicant that his services were not needed by the  
respondent and that he was not to attend work. The notice was  
delivered to the applicant on the 5 th October 1999.
22. It seems to me that the crux of the matter in the main application  
hinges on the interpretation of the contents of the aforesaid letter  
dated 1 st October 1999.

The letter reads as follows:
“RE: NOTICE OF TERMINATION OF SERVICE
I   refer   to   the   verbal   discussion   between   yourself   and  
Stephan   Nieuwoudt   regarding   the   termination   of   your  
services. 
With reference to your service agreement with “Megacor  
Holdings   Limited”   signed   on   11 th  November   1998,   as  
referred   to   by   yourself,   we   herewith   give   you   written  
notice of the termination of your services effective the 1 st 
October 1999.
The reasons for your termination have been explained to  
you.
The details of the benefits due to you will be discussed in  
due course.
Kind Regards
Signed 
 S, NIEUWOUDT 10 October 1999
Signed 
L. FULLER 10 October 1999”
  
23. This letter was received and signed by the applicant on the 5 th 
October 1999 at 7H30.
24. The relevant clause in the applicant’s service agreement signed by

the applicant on the 11 th November 1998 reads:
“TERMINATION OF EMPLOYMENT 
This agreement may be terminated by either party on three calendar  
months written notice on the first working day of any month. 
On termination of service for whatever reason, you will return to your  
immediate superior all company property issued to you whilst in  
service of Megafurn. All documents in respect of the company  
systems, plans, clients, lists etc must also be returned to the  
company.”
 
25. On   the   25 th  October   1999   the   respondent   wrote   the   following  
letter to the applicant:
“RE: TERMINATION OF SERVICE
As per our telephonic discussion I confirm the following:
q You  will  not  have to  render   your  services to the  
company at this stage.
q Due to an investigation in claims etc. made by you  
retrenchment negotiations have been suspended.
q As   soon   as   the   investigation   is   completed   I   will  
refer   back   as   to   the   course   of   action   that   the  
company will be taking.
Kind Regards
Signed
S. NIEUWOUDT
26. I hasten to mention that only on receipt of this letter, the applicant  
lodged a dispute of his unfair retrenchment on the 26 th  October

1999 to the CCMA referring to the 1 st October 1999 as the date of  
dispute. 
27.It is common cause that the applicant received his normal salary  
for October and November 1999.
28.Paragraphs 17 and 18 of the Applicant’s Statement of case in the  
main application read as follows: 
“17 On or about the 6 th October 1999 the Applicant discussed  
the   issue   of   the   notice   period   with   Nieuwoudt,   who  
confirmed that he did not have to work his notice period  
and   that   he   would   have   an   answer   on   the   settlement  
negotiations on Monday the 11 th October 1999.
18   By the 15 th  October 1999, the Applicant had heard  
nothing   further   from   the   respondent   and   once   again  
contacted Nieuwoudt who advised him that he could not  
make an offer to the applicant, as the applicant was under  
investigation.”
 
29. The   applicant   was   subsequently   summoned   to   attend   a  
disciplinary enquiry on the 24 th  November 1999 to face charges  
of:
a. Dishonesty   during   the   course   of   employment   claiming  
more than paying on insurance premium.
b. Dishonesty during course of employment claiming tracker  
device for car under false pretences. 
30. The applicant did not attend the said disciplinary enquiry and he  
was found guilty and dismissed on the 10 th December 1999.
31. In   my   view   all   the   above   facts,   in   the   applicant’s   own   case,  
demonstrate that the applicant’s services were not terminated by

respondent forthwith on the 1 st October 1999 but he was given a  
three  months  notice, in  terms  of  his  contract of  employment,  to  
terminate   his   services   on   the   expiry   of   the   said   three   months  
period with effect from the 1 st October 1999. It is clear that up to at  
least   the   16 th  October   1999   the   applicant   had   not   considered  
himself   to   have   been   dismissed.   He   considered   himself   as   the  
employee   of   the   respondent   who   was   willing   to   negotiate  
settlement proposals by the respondent for the termination of his  
services in due course. It is trite that an employee who is serving a  
notice period remains an employee and is subject to be disciplined  
by the employer.
32. In my view the applicant was still an employee of the respondent  
until he was dismissed on the 10 th December 1999. In view of the  
aforegoing the applicant has not shown that he has a  prima facie  
good case against the respondent. 
33.In view of my above findings I make the following order:
1. The application is dismissed
 
2. The applicant is ordered to pay costs    
              
 
                                                                     
  ZILWA  A J

DATE OF JUDGMENT :   28 MAY 2003   
FOR APPLICANT  :   A. N. SNIDER instructed by  
    BRIAN KAHN INC.
FOR RESPONDENT :   D. WOODHOUSE of 
PERROT,   VAN   NIEKERK   &  
WOODHOUSE INC.