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Proc Fairness Class Notes
Proc Fairness Class Notes
- If the decision-maker hears all the affected parties, they are more likely to
make a more accurate and proper decision. If they leave a party out of the
process and don’t have all the relevant information before them – then it is
probable that they will reach an erroneous decision.
- Acting procedurally correctly is to make proper decisions, as per what the law
describes is appropriate (in accordance with PAJA and the enabling
legislation)
- Procedural fairness ensures that before reaching this decision, the decision-
maker is acting in a way that promotes PAJA.
- It is not a mere technical rule
Section 3: Procedurally fair administrative action affecting any person
(1) Administrative action which materially and adversely affects the rights or
legitimate expectations of any person must be procedurally fair.
- The jurisdictional facts you have to satisfy in order to claim the right, is that it
has to be administrative action; it must materially and adversely affect; either
rights or legitimate expectations. (JOSEPH CASE is the leading case here)
Contract was that City power would provide electricity to the building
(owned by Nel) and tenants.
Contractual relationship alone with Nel, the landlord of a building.
Tenants paid Nel for the electricity. Nel does not pay City power, to which
they terminate the supply of electricity to the tenants.
Is there any obligation on City power to treat the tenants procedurally fairly
before they terminate their electricity supply?
The tenants said that they have a right to be treated procedurally fairly by
City Power and should have given them notice before termination of
electricity supply.
City power argued that they were only contractually obliged to Nel, and
are therefore obliged to treat Nel fairly. No obligation to their respect the
tenants’ rights.
The tenants used constitutional principles, and use admin law principles to
build on it. In the judgement, before analyzing S 3 (1) of admin action, the
broader objectives of PAJA that we are meant to achieve in S33 are
considered – which is transparent, accountable and proper governance.
PAJA is meant to prevent an abuse of power and is designed to make
sure that those exercising public power, do so properly – they are
accountable and the process is transparent/ proper. These are guiding
principles to interpret S 3 (1) and its jurisdictional facts.
City Power relates that one of the requirements for the definition of admin
action, is that it must have a direct external legal effect.
The admin action must impact upon you directly and immediately.
Court then says that in addition to this direct external legal effect – it
must also materially impact on upon the person.
The court narrows the requirements in the definition of admin action
to allow more people access to procedural fairness. If the
requirements were wide – then you would have to satisfy those
broad requirements to facilitate access to procedural fairness.
Therefore if our objective is to have proper governance, those
requirements should be narrow and not broad. Therefore he reads
down the requirements.
Key point in the judgement: What does the term rights mean?
o If the term “rights” is very narrowly defined, then the applicant may
struggle to prove that their rights are affected. Therefore using the
same principle, the judgement interpreted the rights broadly.
- Judgement held that this may be a problem. Having regard for the need to
effect effective administration and to respect the rights to procedural fairness
of the applicants – an appropriate way of proceeding would be to give the
applicants pre-termination notice of 14 days.
- Tenants failed to show that there is admin action in this case, and that their
rights had been materially and adversely affected – because they failed to
show that this amounts to direct external legal effect.
- The court therefore narrows these requirements (reduces them) – they “bring
the fence down”.
- When looking at this main issue of rights – in order to carry out broader
objectives of PAJA, you can’t give rights a narrow interpretation (because
fewer people will be able to access procedural fairness) hence,, rights will be
given a broader interpretation.
(2)
(a) A fair administrative procedure depends on the circumstances of
each case.
(FLEXIBILITY/ FLEXIBILE CONCEPT) – meaning that there isn’t one set of
prescribed rules applies to all rules. There is therefore this entire possible
spectrum of action you can take.
Procedural fairness may simply require that you notify the parties of the
decision that you are taking; or consulting with the parties, inviting the parties to
make written representation; or oral submission or representations. There is
this continuum of things you have to satisfy, however one extreme in order to
be procedurally fair is a full trial-type hearing.
Du Preez v TRC.
- A general in the former SA defence force was told by the TRC that allegations
that he had participated in gross human rights violations will made against
him on a particular date.
- Du Preez challenged this, saying that the TRC process had to be procedurally
fair – they had to tell him in substance what the case had been. Simply saying
“gross human rights violations” was insufficient detail and cannot prepare in
response to that.
- The court held that you must inform the person with adequate detail of the
case that they have to meet so as to enable them to effectively prepare and
make representation.
- To give them adequate detail of the case they have to meet – which related to
a “clear statement of administrative action”. This requires the administrator to
simply say what decision has been reached – whether something has been
granted or not.
- In addition to this decision, the following must be included:
o They must indicate who took the decision
o When the decision was taken
o Under what legal authority the decision was made
o 2 requirements follow below
(a) - (c) are discretionary requirements - may be required to give the person a trial-
type hearing where something more is required of the administration. This the most
exacting type of hearing a person can get. A quasi-judicial hearing.
- Examination in chief (lead the evidence of the witness)
- Cross-examination (not restricted to issues in examination in chief)
- Re-examination (only re-examine on issues covered in cross-examination)
These trial type hearings arise at the appeal level.
(4)
(a) If it is reasonable and justifiable in the circumstances, an
administrator may depart from any of the (core/ discretionary)
requirements referred to in subsection (2).
Incorporates the requirement of a limitation clause – fall back provision – you can
limit those requirements
- This is the law of general application that will allow you to limit the right.
(5) Where an administrator is empowered by any empowering provision to
follow a procedure which is fair but different from the provisions of
subsection (2), the administrator may act in accordance with that different
procedure.
In some circumstances, the statute itself (empowering statute) may give you more
rights; to which you can follow those provisions.
A decision of the SCA – but is a pre-PAJA decision, and the judge reasoned as
follows:
The section 9 phase triggers a chain of action/ events that could
result in the applicants rights being adversely affected (if mining
was allowed ITO s39)
Without the s9 phase the other phase would not be triggered off.
S9 phase could ultimately result in the approval of the
application and permission being granted to mine.
This means that s9, whilst it is a preliminary decision, they
should have been given preliminary hearing at Section 9 phase.
In s9 phase – you can invite people to make written
representations and therefore you don’t have to slow down the
process.
The respondents had acted procedurally unfairly by not
providing for hearing at both phases.
- According to the court pages. The premier is going to invite all affected
parties to make representation. One of the consequences of Buffalo City,
taking the resolution is that the owners of the land cannot alienate the land.
- Effect of the resolution is that the status quo must be preserved.
- Before the premier makes the decision, the applicant brings this application to
set aside the resolution taken by BC on the basis that he has not been treated
procedurally fairly before the resolution was taken.
- This is a post-PAJA decision – where s3 relates that you must show that your
rights have been adversely affected.
- The only consequence of the resolution, was that you cannot alienate the
land.
- The question before the court was: should the applicant be given a hearing
before the premier takes the decision? Should Buffalo city be given a hearing
before the premier takes the decision (at that first resolution stage)?
o The court reasoned as follows:
The effect or the only consequence of the resolution is that you
cannot alienation the land
If you simply come to court and say you can’t alienate your land
and therefore must be given a hearing – you have failed to
demonstrate how your rights have been adversely affected.
You have to demonstrate that as a consequence of the
resolution that you are unable to alienate your land, and
because you are unable to alienate your land this is the
prejudice you suffer.
This is what they failed to do. They failed to show what the
practical effect of the prejudice that they were suffering
was.
*** Juxtapose the reasoning in Save the Vaal case with the Buffalo City case
- One material difference is that Buffalo City is post-PAJA
- Were these cases decided the same way?
o Save the Vaal discussed the trigger effect, and clearly the resolution
was a trigger factor in the BC case (because without the resolution, it
would not have gone to the next stage)
o However, the judge in Buffalo city said that you have to have to
demonstrate some practical consequences, as an applicant – because
s 3 (1) discusses rights or legitimate expectations being adversely
affected.
o One of the ways to reconcile that, is to make reference to Joseph.
Joseph reduced/ narrowed some of the jurisdictional facts – but
also defined the concept of rights broadly.
Don’t simply rely on trigger factor, but to show what the practical
consequences of what the trigger factor is on you property value
and how it is practically impacting on you.
Greys Marine Hout Bay and others v Minister of Public Works and
Others 2005 (10 BCLR 931 (SCA)
o Companion case to buffalo city is the case of Greys Marine.
o Important ITO the meaning of admin action
- The government owns certain property in Hout Bay – vacant piece of land
- Alongside it are restaurants and various other activities
- One of the restaurant owners in the past, had a lease over that land – but
because they did not utilize it – it reverted to the state. None of the
neighbours had any rights to the land – but the nearby property owners used
the land as parking.
- The governments then decided to lease that land to a black empowerment
company of women - to allow them access to the industry in that area. Sign
lease agreement and they could put up structures to be used.
- The neighbours in this application argued that ITO of s 3 (1) of PAJA they
ought to be treated procedurally fairly and given the reasonable opportunity to
make representations before the lease agreement was entered into - because
they are the neighbours to this property.
- Before the applicants claimed that they were entitled to procedural fairness,
the applicants must demonstrate that either their rights or legitimate
expectations were adversely affected.
- In this case, did the neighbours have any rights to the property? The fact that
they were using it, was simply an interest they had – but they did not have
any rights to the property, nor a legitimate expectation.
- Therefore his argument was that because neither rights nor legitimate
expectation were adversely affected – there was no obligation to have a
hearing for procedural fairness.
Earthlike Africa. (H 375)
o The courts view was that given the seemliness of the decision being
taken, the DG should have been privy to as many views of affected
parties as possible.
o The court also pointed out that the panel of experts, while notionally
independent – were actually paid for by Eskom.
- On the issue of it frustrating the administration every time you have a final
draft - people should be allowed to make representations. The court used the
idea in Save the Vaal when they said what you can do is to allow written
representations within a defined period.
Brenco case
- Revolved around the economic concept of dumping
o E.g. = costs 20 dollars for solar panels, but a company sells it for 10
dollars to kill the competition, and once they have left – you raise the
prices.
- We have processes in place to prevent dumping.
- The applicants in this case make the following arguments that they were
treated procedurally unfairly because:
o They weren’t given all the information that the government agency had
in its possession (were only given the essence of the allegations)
o It was during the second phase that the department was interacting
with the complainants without the applicants being present.
o They were given a comprehensive hearing in the first phase but not
given hearings before the minister of T&I / finance made the decision.
o The judge emphasizes that the content of the duty to act procedurally
fairly is a flexible one and it depends on the circumstances of the case
– it is not a means to find something wrong with the process
Because they had a full hearing in the first phase and now it
must be replicated
o When you have an investigation as complex as this – you do not have
to give the people all the information all the information you have.
Simply have to give adequate information to enable them to mount a
response and adequately defend themselves.
They had given them the key allegations that they had to meet,
with the information supporting those allegations.
The court held that there was no obligation to give them all the
information
o Whilst they were conducting the investigation, they met with the
complainant in the absence of the persons accused
The court distinguished between the various functions
performed by administrative agencies:
Investigative functions - Investigate the complainant. The
court held that administrative agencies sometimes perform
investigative functions. The court grants a fair degree of
latitude to the department. Ensure that when carrying out
the investigation, that the department is not acting
vexatiously (with bad intent) or capriciously – this is the test
when carrying out investigative function.
Minister of Health and Another v New Clicks SA (PTY) LTD and Others
2006 (1) BCLR 1 (CC) para 147 to 185
- In the judgement it is explained that even though there were two processes
where the pricing committee made a recommendation; and the minister
followed that recommendation – this was essentially considered one process.
- Because it was such a complicated process, with various experts sitting in the
pricing committee they were advising the minister. The minister would not
make a different decision because they worked on the decision.
- The way the pricing committee functioned, was that they had done their
investigation, decided on a pricing structure and published it as regulations for
comment from the industry. There is an overlap between section 3 and
section 4 in this regard. There were also hearings where parties wished to
appear before them and re-state their comments. They then proceeded to
have oral hearings.
- The applicants in the case argued that at the oral hearings, not all the
members of the pricing committee were present. During the meeting people
went in and out - which they argued was contrary to the principles of
procedural fairness.
- The CC said that you have to distinguish between what they called legislative
administrative action, where you are making regulations and rules and
adjudicative administrative action. The pricing committee here, was not
involved in what is classified as the legislative administrative action (because
they were legislating rules - not deciding whether someone was guilty of
misconduct or whether someone should get a dispensation). Therefore the
court held that the requirements are different. If it is an adjudicative process
you need to have a full tribunal at the hearing.
- However, because this was a legislative process and people had made
written submissions – the court ruled on this point that the pricing committee
had complied with the principles of procedural fairness.
Mamabolo v Rustenberg Regional Local Council 2001 (1) SA 135 (SCA) ***
- In the judgement, it is established that the normal rule is that there should be
a hearing before the decision is made. However in certain circumstances you
can depart from this. They were not intending to deprive him of a hearing, but
they felt the circumstances compelled them to act in this way. In departing
from this rule, the courts will have regard for the following factors:
o Was there sufficient time between the decision and its implementation
of it – to enable the applicant to make proper representation?
o Is there adequate evidence that the decision maker retained an open
mind – and was open to being persuaded to reversing the original
decision?
o Was there evidence that the hearing post the decision caused
prejudice to the applicant?
- On the facts of this case, the CH that it was clear that the council had an open
mind and there was no showing of the applicant suffering any prejudice
because of it. Therefore they felt that the hearing was fair.
- When the case goes on review, it is established that you only need to
respond if the other side (the disciplinary agency) have established a prima
facie case (some sort of evidence of misconduct). If they do not provide any
evidence of misconduct there is no obligation on the vet to testify (don’t have
to convict himself)
SA Veterinary Council and Another v Szymnski. 2003(4) BCLR 378 (SCA) ***
- Qualified vet from Poland who came to South Africa and if you qualify
elsewhere – you write a conversion exam. S claims that he was told by one of
the professors that he only needed to get 40% in the segments of the paper.
- An oral and written assessment – if he got 40% would pass. Only minimum.
- Could not let him practice with the mark he obtained.
- He argues in court that he had a legitimate expectation that if he attains 40% -
he would be admitted as a vet.
- The judgement held that for there to be a legitimate expectation, it must be
reasonable from an objective perspective, for the applicant to actually have
that expectation. The subjective belief of the applicant is inadequate.
- Home-owner A applies to the city for planning permission to extend his home.
Granted.
- The applicant (home owner B) in this case brought an application against the
city alleging that they gave permission to someone to extend their home and
in the winter months, the home cast a shadow over his property. He stated
that he should have been granted a hearing before the city granted
permission for the extension.
- Attorneys find an instance where the city gave a person in home-owner B’s
position, an opportunity to make representations. On the basis of that, he
contends that a precedent was set – and failing to give him an opportunity
was a violation of 3(1) of his legitimate expectation.
*** Explain what rights the applicant has if they can show that they had a legitimate
expectation
- The prison authorities in the UK had a policy, where they would get a
weekend pass for good behavior.
- These prisoners were convicted at the time the policy was in place – but
pressure on government to tighten up on crime, the policy became more
restrictive. More difficult to get the weekend pass.
- Prisoner brought this application saying he had a legitimate expectation to get
the weekend pass ITO the policy that was in place at the time he was
convicted. But the prisoner didn’t ask for a hearing, but rather a substantive
benefit (the pass or benefit of the policy)
o The courts rejected this, saying that the test is simply whether
government is acting rationally in launching new policy
o And there was sufficient evidence in the way government had acted.
- Court concluded that it is only the public interest that is served by not
honoring the promise - outweighs the cost to the applicant – would it be
proportionate. In every other instance it would be an abuse of power.