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FORM AFILING SHEET FOR EASTERN CAPE JUDGMENT
ECJ NO : 003/2004
PARTIES: HEATHER OSNER APPLICANT
AND
PAUL FREDERICK MICHAEL OSNER RESPONDENT
REFERENCE NUMBERS -
• Registrar: 499/2004
• Magistrate:
• Supreme Court of Appeal/Constitutional Court:
DATE DELIVERED: 3 JUNE 2004
JUDGE(S): PLASKET J
LEGAL REPRESENTATIVES -Appearances:
• for the State/Applicant(s)/Appellant(s): SH COLE• for the accused/respondent(s): RWN BROOKS
Instructing attorneys:• Applicant(s)/Appellant(s): NETTELTONS• Respondent(s): WHEELDON, RUSHMERE & COLE
CASE INFORMATION -• Nature of proceedings : PROHIBITORY INTERDICT
• Topic: PRESERVATION OF ASSET PENDING DIVORCE SETTLEMENT
IN THE HIGH COURT OF SOUTH AFRICA
(EASTERN CAPE DIVISION)
CASE NO: 499/2004
DATE DELIVERED:3/6/04
In the matter between:
HEATHER OSNER APPLICANT
and
PAUL FREDERICK MICHAEL OSNER RESPONDENT
JUDGMENT
PLASKET J
[A] INTRODUCTION
[1] The applicant brought an ex parte urgent application against the respondent,
her husband, in which she sought and was granted a rule nisi calling upon him to
show cause why ‘he should not be finally interdicted and restrained from
removing the yacht “Ballyhoo” from South African waters, pending the finalisation
of the divorce proceedings between the parties’ and why the respondent ‘should
only be permitted, pending finalization of the aforesaid divorce proceedings, to
undertake charter trips with the yacht “Ballyhoo”, to a distance of no more than
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15 nautical miles from the East London harbour, subject to the respondent giving
the Harbour Master, East London, 48 hours notice of his intention to embark on
any such charter, and the destination of such charter.’
[2] She also sought the usual order that the above orders operate as temporary
interdicts pending the return day, and a costs order that differed from the usual,
namely, that ‘the cost of this application be and are hereby reserved for
determination in the divorce action … between the parties’. An order was granted
on 7 May 2004 by Chetty J. By notice dated 17 May 2004, the respondent
anticipated the return day, setting the matter down for hearing on 20 May 2004.
On that day the matter was postponed further to 24 May 2004 to enable the
applicant to file a replying affidavit. The costs of the postponement are still in
issue before me.
[3] The applicant and respondent have been married since April 1981. They are
in the throes of what appears to be an acrimonious divorce. In the divorce
proceedings, the applicant claims, inter alia, a redistribution order in terms of
s7(3) of the Divorce Act 70 of 1979. She claims to be confident of succeeding in
claiming 50 percent of the respondent’s estate. In a counterclaim, the
respondent also claims a redistribution order in terms of s7(3) of the Act, and he
too expresses confidence of being awarded 50 percent of his wife’s estate on
divorce.
[4] The yacht is the single biggest asset in respondent’s estate. He alleges that
its value is in the region of R1 400 000.00. (Whether that is its true value or not is
not relevant at this stage.) It is common cause that he plans to sail in it from East
London up the east coast of Africa to Mozambique, Tanzania and Kenya. This is
at the heart of the applicant’s case.
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[5] It is trite law that, in order to establish the requirements for the granting of an
interim interdict, an applicant must establish: (a) a prima facie right in the subject
matter of the dispute; (b) an apprehension of irreparable harm if the interim relief
is not granted and the final relief is granted in due course; (c) the balance of
convenience in his or her favour; and (d) the absence of a satisfactory alternative
remedy.1
[6] Whether an application such as this – in which a socalled antidissipation
interdict2 is applied for is to be treated differently is an issue to which I shall
return in due course.
[B] THE APPLICANT’S CASE: HER FOUNDING PAPERS
[7] The applicant stated that, as the result of her ‘ongoing work within the family
over the past 23 years’ and particularly because the marriage ‘has broken down
solely and exclusively by reason of the respondent’s gross and ongoing
misconduct’ she has a ‘clear right’ to an order in terms of s7(3) of the Divorce
1 Erasmus Superior Court Practice Cape Town, Juta & Co: 1994, E 88 to E 89; Harms Civil Procedure in the Supreme Court Durban, LexisNexis Butterwoths: 1990, A40: Van Winsen, Cilliers and Loots The Civil Practice of the Supreme Court of South Africa (4 ed) Cape Town, Juta & Co: 1997, 1065.2 There is some debate as to the appropriateness of the term ‘antidissipation interdict’ or other terms that have been proposed for the type application in issue in this case. It is not necessary for me to involve myself in this debate. See, however, Knox D’Arcy Ltd and others v Jamieson and others 1996 (4) SA 348 (A), 371I372C in which EM Grosskopf JA stated: ‘As far as its name is concerned, the petitioners referred to it as a Marevatype interdict after the term used in English law. The Court a quo did not like this name since the use of the English term might suggest that English principles are automatically applicable (see 1994 (3) SA at 705A706B). I agree with this criticism. The alternatives suggested by Stegmann J were not, however, much more felicitous. Thus he referred to an interdict in securitatem debiti and an antidissipation interdict. The former expression may suggest that the purpose of the interdict is to provide security for the applicant's claim. This is not so. The interdict prevents the respondent from dealing freely with his assets but grants the applicant no preferential rights over those assets. And “antidissipation” suffers from the defect that in most cases and, certainly in the present case, the interdict is not sought to prevent the respondent from dissipating his assets, but rather from preserving them so well that the applicant cannot get his hands on them. Having criticised the names used for the interdict I find myself unfortunately unable to suggest a better one. I console myself with the thought that our law has recognised this type of interdict for many years without giving it any specific name.’
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Act. Whether she does or not is a matter for the trial court to determine in due
course. I accept that she has established the first element of an interim interdict,
namely a prima facie right, even if that right is open to some doubt.3
[8] She then turns to the crux of the matter – the reason why this application was
brought – when she alleges that, if the application is not granted, she will suffer
irreparable harm. She states:
‘I state further that if the respondent is allowed to remove the one
significant asset in his estate, to the jurisdiction of a foreign country, or
even into international waters, I have a well grounded and overwhelming
apprehension of irreparable harm to myself; the respondent will be able to
liquidate his smaller assets and leave me with virtually nothing in South
Africa with which to satisfy any judgment in my favour on the conclusion of
the divorce.’
[9] The buildup to this point in her papers is instructive. She states in this regard:
‘19. During the course of preparations for trial, it came to my attention
that it was rumored in the yachting circles in East London that the
respondent was going to take the yacht “Ballyhoo” away from East
London, out of South African waters and to charter the yacht along
the Mozambican coast.
20. Until the present time, the yacht “Ballyhoo” has never been taken
by the respondent out of South African waters and has been used
exclusively for local charters around the East London harbour
3 See Setlogelo v Setlogelo 1914 AD 221, 227; Webster v Mitchell 1948 (1) SA 1186 (W), 11891190; Gool v Minister of Justice and another 1955 (2) SA 682 (C), 688E; Olympic Passenger Service (Pty) Ltd v Ramlagan 1957 (2) SA 382DF. For a more recent exposition of the test see Ferreira v Levin NO and others; Vryenhoek and others v Powell NO and others 1995 (2) SA 813 (W), 817G, in which Streicher J held: ‘It has, up to now, been accepted that in order to establish a prima facie right entitling an applicant to an interim interdict, an applicant has to make out a case that he is entitled to final relief. If on the facts alleged by the applicant and the undisputed facts alleged by the respondent a court would not be able to grant final relief, the applicant has not established a prima facie right and is not entitled to interim protection.’
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mouth, for a distance of approximately 10 nautical miles from East
London, on charters that last for a few hours at a time.
21. I was most concerned that the respondent may be planning to take
the yacht “Ballyhoo” from South Africa as it is the one true asset of
value in his estate, and in respect of which any judgment in my
favour in a s7(3) distribution claim, would stand or fall.’
[10] In order to confirm her suspicions that the yacht was to be sailed out of
South African waters, the applicant engaged the services of one Darrell Els, a
private investigator. He went to the respondent’s restaurant – the Ballyhoo
Restaurant – posing as a potential client wishing to hire the yacht for a birthday
party. He learnt that the yacht was being refurbished and that there were plans
afoot to sail to Bazaruto Island in Mozambique and further up the East African
coast where the respondent intended to take charters. Indeed, he learnt from the
partner of the respondent at the time, one Bernadine Bush, that the respondent
had charter work booked until 2005. (In his affidavit, the respondent said that this
was incorrect.)
[11] The applicant contends that the balance of convenience favours her
because she does not ‘seek to interdict the respondent from continuing with his
nautical activities in the manner in which he has conducted it in the past namely
to take short charters in the vicinity of East London for a duration of a few hours
at a time; I only requested the respondent be interdicted from removing the yacht
“Ballyhoo” from the jurisdiction of this honourable court pending the finalization of
the divorce action which can be fully resolved within six months from now’. She
states that this will mean that the respondent ‘will merely be required to delay his
departure for foreign waters but, in the interim, can continue to charter the yacht
in the manner he has done previously to sustain himself financially should he
need to do so’. She also says that she requires the order to be supervised by the
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Harbour Master, East London, ‘to enable me to have some ability to monitor the
situation pending the finalization of the divorce action’.
[12] She claims that she has no alternative remedy once the yacht has left South
African waters. She states:
‘Even were the respondent were to return to South Africa for finalization of
the divorce proceedings, if the yacht was to be left moored somewhere up
the African coast this would have the effect of rendering nugatory any
judgment in my favour for a redistribution order in respect of respondent’s
assets. For this reason the interdict sought in these papers is my only
relief. The respondent does not have sufficient assets in South Africa to
satisfy any judgment that this court may grant in the divorce action, should
the respondent be successful in placing the yacht “Ballyhoo” beyond my
grasp.’
[C] THE RESPONDENT’S ANSWERING PAPERS
[13] The respondent does not deny that he intends to sail the yacht out of South
African waters to Mozambique and further up the African coast. Indeed, for all
intents and purposes it is common cause between the parties that he intends to
make the yacht available for charter along the East African Coast. He states:
’19. I confirm that I have been planning to take the yacht “Ballyhoo”
away from East London to charter the yacht along the Mozambican
coast. This has not been any secretive or covert arrangement on
my part, but has been completely open and is in fact general
knowledge. I planed to take the yacht for charter to Bazaruto, off
the Mozambican coast with effect from the 23rd June, with my
leaving East London harbour with effect from the beginning of June.
The reasons for this are as follows:
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19.1 I generate my living expenses and the running expenses of
the yacht from the chartering of the yacht;
19.2 The chartering of the yacht during the winter time in East
London is very quite and it is far more economical to charter
the yacht off the island of Bazaruto during the winter time;
19.3 A further important complication is the fact that my fare
paying passenger limit has been reduced from 30 to 12
since April 2004, due to the new SAMSA safety rules and
regulations which have come into effect over the past
several months and which has been enforced upon me since
the 5th April 2004. I have anticipated this for several months.
…
19.4 My licenced “skipper” is only entitled to skipper the yacht
until the 8th June 2004, thereafter his qualification will be
insufficient;
19.5 There are no similar strict limitations off the island of
Bazaruto with regard to the skippering and carrying of paying
passengers;
19.6 The weather conditions will be most unfavourable after the
month of June due to the contrary winds that arriving
thereafter for yachts moving north up the east coast of
Africa.’
[14] The respondent states further that the fact that ‘I might have an asset
temporarily in Mozambican waters will not have any effect on the applicant’s
claim or judgment against me, should this be granted’. He also says the
following in response to the applicant’s allegations that she has met the
requirements for the granting of an interim order:
‘26.1 The contents of this paragraph are denied. On the contrary, I
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submit that the substantial part of the applicant’s estate has been
established because of my direct involvement in the construction of
the large Mgwalana Mouth beach house. I submit that I am
reasonably entitled to a redistribution order in this regard. I
furthermore deny that the marriage relationship between the
applicant and myself broke down by reason of my alleged gross
misconduct. I respectfully submit that the cause of the breakdown
of the marriage is as more fully set out in my counterclaim, a copy
whereof is attached hereto. In the circumstances, I deny that the
applicant has a clear right to a redistribution order in terms of
section 7(3). …
26.2 The contents of this paragraph are denied. I respectfully submit that
the applicant has not one shred of evidence to indicate that I intend
dealing with my estate in order to cause the applicant harm or to
defraud her. The applicant furthermore has not one shred of
evidence to indicate that I intend liquidating my assets in order to
leave the applicant with virtually nothing in South Africa with which
to satisfy any judgment which may be in her favour on the
conclusion of the divorce. I respectfully submit that I have at all
times been bona fide in my dealings with the applicant both in
respect of the issues in the divorce and my attempts to reach a
settlement with her.
26.3 I strongly deny that the balance of convenience favours the
applicant in this instance. For the reasons set out above, my ability
to earn a living from the chartering of the yacht out of the East
London harbour has been severely limited and in fact will cease on
8th June 2004 unless I am able to find and employ a skipper with
the necessary qualifications. To the best of my knowledge there are
no skippers available with the necessary qualifications for
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employment by me on a flexitime charter basis in East London. In
any event, I am only limited to 12 passengers at a time, which is
uneconomical. I have in this past year contributed a substantial
amount towards my daughter’s university fees. I will be unable to
continue to do so from income unless I leave the East London
harbour in order to charter the boat in more lucrative areas such as
Bazaruto. The applicant will still be in a position to pursue her
alleged claim against me, whether or not my yacht is in Bazaruto or
in South Africa.
26.4 I strongly deny that the applicant is not without an alternative
satisfactory remedy. I have no intention of selling the yacht and
respectfully submit that I will meet any order against me made by
the above honourable court. I furthermore submit that I have
sufficient assets in South Africa in the form of immovable property
to satisfy any judgment that this court may grant in the divorce
action.’
[15] The respondent makes it clear that he has no intention of leaving the yacht
permanently beyond the territorial jurisdiction of South African courts or that he
intends to alienate it. He state that it is ‘certainly not for sale and I will definitely
be returning to South Africa with the yacht. The yacht is my life, livelihood and
home and the applicant is well aware of this’. He also states that he never
indicated that he might be willing to sell the yacht, that the applicant was well
aware of this and that she has ‘made no suggestion that I have such intentions’.
Later in his affidavit (where he states, incidentally, that he does not have charter
bookings in 2005, as had been stated by Ms Bush, according to the evidence of
Mr Els) the respondent says that ‘the intention has always been to return at the
end of October 2004’ but that ‘in view of the enforcement of the SAMSA safety
regulations now upon me, I may well decide not to bring the yacht back then,
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unless I am able to obtain the services of a skipper with the necessary
qualifications and dependant upon the charter business available after October
2004. I will however fly back during the period away, from time to time to deal
with my affairs in East London’.
[D] THE APPLICANT’S REPLY
[16] In her replying affidavit, the applicant makes much of her discovery of
additional assets in the estate of her husband: it would appear that, by mistake, a
bank statement that indicated that a policy worth R108 000.00 had been
surrendered by the respondent and a IT3B form referring to an investment of
R169 930.19 were erroneously posted to the applicant’s address. Although they
were not meant for her eyes, she opened both. Why she decided to do this is not
explained.
[17] The inference that the applicant wants me to draw from her discovery is that
the respondent is intent on hiding his assets and will therefore secrete the yacht
in foreign waters to defeat her legitimate claim to half of the respondent’s estate.
She seeks to add weight to this line of reasoning by attaching an affidavit from
Captain PHC Kroon, the Principal Officer of the South African Maritime Safety
Authority based in East London. The upshot of Captain Kroon’s evidence,
however, is that the yacht may not leave East London harbour until certain
matters have been attended to. He also confirms that it may only carry 12
passengers.
[E] FACTUAL CONCLUSIONS ON THE PAPERS
[18] The discovery of the assets mentioned above does not necessarily give rise
to the inference that the respondent intends to deal with the yacht in an
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underhand or dishonest way – to dissipate his estate to the prejudice of the
applicant. One does not know what his explanation could be: he may well have
an innocent explanation. Similarly, Captain Kroon’s evidence does not go any
further than establish that the respondent may not leave the harbour before his
yacht meets the necessary standards, even though he was mistaken about the
effect of the safety regulations on the ability of the skipper of the yacht to
continue with his work. I am unable to see how it assists the applicant.
[19] In any event, it was never the applicant’s case that the respondent was
involved in a scheme, actuated by bad faith, to deny her the fruits of the
judgment that she claims will be handed down in her favour in due course. Her
case, on her founding papers was that the respondent planned to sail the yacht
out of South African waters to convey paying passengers around the island of
Bazaruto and beyond, and that activity had to be interdicted to safeguard the
biggest asset in the respondent’s estate so that it could be available to her on her
anticipated victory in the divorce trial.
[20] In my view, there is little in dispute on the papers. While there may be
disagreement as to detail and as to effect, it cannot but be accepted by the
applicant that the respondent intends to sail the yacht out of South African waters
so that he can take advantage of more lucrative opportunities to charter it than
those that present themselves in winter in East London. This, after all, is
precisely what Mr Els ascertained when he posed as a potential customer.
[F] THE LEGAL CONCLUSIONS TO BE DRAWN
[21] I stated earlier in this judgment that I would return to the issue of what
elements have to be established to justify the granting of an antidissipation
interdict and consequently whether they differ from the usual elements of an
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interim interdict. From the authorities that I will deal with below, it appears to me
that it is still necessary for an applicant to establish those wellknown elements,
although he or she may, in some instances, be assisted by a presumption that
operates in his or her favour.
[22] In Knox D’ Arcy Ltd and others v Jamieson and others4 EM Grosskopf JA
dealt with whether it was necessary for an applicant to establish that the
respondent was, in fact, dissipating his or her assets, or was likely to, with the
intention of defeating the applicant’s claim to those assets. He held as follows in
this regard:
‘The question which arises from this approach is whether an applicant
need show a particular state of mind on the part of the respondent, ie that
he is getting rid of the funds, or is likely to do so, with the intention of
defeating the claims of creditors. Having regard to the purpose of this type
of interdict, the answer must be, I consider, yes, except possibly in
exceptional cases. As I have said, the effect of the interdict is to prevent
the respondent from freely dealing with his own property to which the
applicant lays no claim. Justice may require this restriction in cases where
the respondent is shown to be acting mala fide with the intent of
preventing execution in respect of the applicant's claim. However, there
would not normally be any justification to compel a respondent to regulate
his bona fide expenditure so as to retain funds in his patrimony for the
payment of claims (particularly disputed ones) against him. I am not, of
course, at the moment dealing with special situations which might arise,
for instance, by contract or under the law of insolvency.’
[23] In Fedsure Life Assurance Co Ltd v Worldwide African Investment Holdings
(Pty) Ltd5 Cloete J held, after setting out the requirements for the granting of an
4 1996 (4) SA 348 (A), 372FI.5 2003 (3) SA 268 (W), paras 2728. (References within the above quote have been omitted.)
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interim interdict, that the test was less stringent in some cases:
‘[27] There are two exceptions to the requirements set out in Eriksen.
They occur in applications for interim relief pending vindicatory and “quasi
vindicatory” actions. A vindicatory action has been categorised as one in
which the plaintiff claims delivery of specific property as owner or lawful
possessor; and an action has been categorised as “quasivindicatory”
when delivery of specific property is claimed under some legal right to
obtain possession. I do not wish to be detained by terminology. In all such
cases it has been settled law in this Division for over half a century that
“(T)he court is entitled to ensure that the thing shall be preserved until the
dispute is decided finally”.
[28] The two exceptions are the following: the applicant need not allege
irreparable loss inasmuch as there is a presumption, which may be
rebutted by the respondent, that the injury is irreparable; nor need the
applicant show that it has no other satisfactory remedy.’
[24] In Fey NO v Van Der Westhuizen and others6 Meer J held that it was not
necessary for the applicant to establish an intention to dissipate because the
matter involved a ‘quasiproprietary or a quasivindicatory claim’ in which the
applicant ‘claims delivery of specific property under some legal right to
possession’.7 She held too that the case ‘being under the law of insolvency, and
one in which the claim is quasivindicatory is, I believe, an exceptional case, in
which intention is not required to be shown by the applicant’.8
[25] It was argued by Mr Cole, who appeared for the applicant, that I should
follow and apply Fey’s case and, in particular, that I should hold that it was not
necessary for the applicant to establish that the respondent was acting with the
6 [2003] 2 All SA 679 (C).7 At 691h692a.8 At 692cd.
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intention to dissipate. He argued, in the alternative, that the necessary intention
had, in any event, been established. Mr Brooks, who appeared for the
respondent argued that Fey’s case did not properly reflect the law and that I
should not follow it: it was necessary in this case for the applicant to allege and
prove an intention to dissipate on the part of the respondent, and this she had
failed to do.
[26] In my view, Fey’s case is distinguishable. The most important point of
distinction is that the acts of dissipation in issue in that case flowed from the
unlawful theft of funds and hence there could be no talk of the bona fide
utilisation of the funds. In this case there is no sustainable suggestion that the
respondent’s use of the yacht is anything but bona fide.
[27] I am also not convinced that Meer J was correct in stating that because the
matter was quasivindicatory in nature, it was exceptional, and it was not for this
reason necessary for an intention to dissipate to be established. If that is what
she meant, I am in respectful disagreement with her. I do not believe that Knox
D’Arcy can be read this widely. In instances of vindicatory or quasivindicatory
claims, according to the judgment of Cloete J in the Fedsure case (that I have
quoted above), a rebuttable presumption arises that the applicant has suffered
irreparable harm, and it is not necessary to establish that no other satisfactory
remedy is available to the applicant. Meer J used the quasivindicatory nature of
the claim to free the applicant from the obligation of establishing the necessary
intention and to free him from having to establish irreparable harm and the
absence of an alternative remedy was available.9
[28] I have my doubts too that the claim of the applicant to half of the estate of
the respondent in terms of s7(3) of the Divorce Act can be properly categorized
9 At 692ef.
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as quasivindicatory: if anything, it is analogous to the damages claim in Knox
D’Arcy.
[29] The facts of this case cannot be described as exceptional. This, in other
words, is not one of those ‘special situations’ contemplated by EM Grosskopf JA
in Knox D’ Arcy in which it would be justified to limit and regulate the
respondent’s legitimate use of his own property for the possible payment, in due
course, of funds to the applicant should her claim in terms of s7(3) of the Divorce
Act succeed and the counterclaim of the respondent fail.
[30] The applicant has failed, in my view, to establish that she will, indeed, suffer
irreparable injury if the applicant is allowed to sail his yacht out of South African
waters: wherever the yacht may be, it remains part of the estate of the
respondent and whatever its value, that value will be part of the value of his
assets. If the order that the applicant seeks is made in terms of s7(3) of the
Divorce Act in due course, that order will bind the respondent wherever his yacht
is. Secondly, I am of the view that the balance of convenience favours the
respondent. The order that the applicant has applied for in these proceedings
would not only limit his right to freedom of movement (through the medium of
sailing his yacht) to the territorial waters of South Africa, but also to within a
distance of 15 nautical miles from the East London harbour: he could not even
sail to Port Elizabeth or Durban. I take the view that to grant the order sought, in
these circumstances, would be unduly and unjustifiably oppressive of the
respondent.
[31] One further issue remains. That is the question of costs for the
postponement of this matter on 20 May 2004, the anticipated return day. The
respondent gave notice on 17 May 2004, in terms of rule 6(8), of his intention to
anticipate the return day on 20 May 2004. The applicant had two court days to
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draft and file her reply. She required more time on the anticipated return day and
applied for a postponement, which was opposed. The matter was then
postponed to 12h00 on 24 May 2004 and the applicant was ordered to file her
reply by 09h00 on that day.
[32] I take into account the facts that: the applicant moved this application as one
of urgency (and without notice to the respondent); the respondent was entitled to
anticipate the return day as he did and could have done so on 24 hours notice;
he gave two court days notice, which was reasonable in the circumstances; and
his freedom of movement was limited by a temporary interdict that operated
against him. In these circumstances, it is, in my view, equitable that the applicant
should pay the costs of the postponement.
[33] I make the following order:
a) The application is dismissed with costs.
b) The applicant is directed to pay the costs of the postponement of the
matter on 20 May 2004.
_____________________
C PLASKET
JUDGE OF THE HIGH COURT
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