Durban - A national pizza chain has been ordered to pay R200 000 and publicly apologise to a Durban couple for pulling out of a franchise deal to run a “halaal” outlet because they were not Muslim.
The ruling in the case brought by Anak and Kaskumarie Neerputh against Romans Pizza in the Tshwane Equality Court had wider ramifications, their attorney, Raakash Maharaj, said on Monday.
“Businesses must not think they can disregard the tenets of the constitution … this is a clear message that discrimination on religious grounds for want of profits and for the benefit of corporate entities will meet the might of the law,” he said.
In her judgment handed down on Monday, Magistrate R Francis said the Neerpuths, who are Hindu, had approached Romans in May 2012 with their idea to open up the franchise at a shopping centre in Chatsworth which was still under construction at the time.
After numerous meetings and telephone calls, a business plan was developed which included representations to the bank, assisted by the company.
In December that year, the couple toured several outlets in Pretoria with development manager Artur Weissnar.
Then in January 2013 they held a site meeting with Weissnar and company owner Ioannis Nicolakakis, who had been on sabbatical and had just returned to the family business at the time.
At the meeting the Neerpuths asked about the halaal certification for the outlet. Nicolakakis asked: “Are you not Muslim? That will be a problem.”
The following day Weissnar asked for a joining fee of R700 000 and then five days later, without putting them on terms for the money, pulled out of the deal.
The Neerpuths apologised for not paying and offered to do so immediately, but Nicolakakis e-mailed saying the store had been reallocated and the company insisted on Muslim owners for its halaal outlets.
In court, the company alleged there had been no discrimination, saying the deal was cancelled because the joining fee had not been paid.
This was rejected by the magistrate.
The company also claimed that it was difficult for non-Muslims to get halaal accreditation and said a branch in Phoenix had failed because “the general Muslim public does not trust or have confidence in a non-Muslim-run halaal store”.
The magistrate said Anak Neerputh felt his dignity had been undermined.
“They were being excluded from a business opportunity because of their faith. This has no place in a democratic society.”
She said the company claimed to have a right to make these “business decisions”.
“But powerful and well-resourced companies are not exempt from the values of our constitution … and those who approach the courts and have merit in their claims must be strongly protected.
“Businesses cannot encumber freedom of religion by claiming a right to economic practice.”
The owners of the company were not Muslim and yet they supplied halaal produce to their outlets.
While it denied a “Muslim only” policy, there was evidence that after cancelling the deal with the Neerpuths, they brought in a Muslim franchisee.
“In essence, they took someone’s idea and business plan and gave it to someone else only because that person was Muslim.”
She said there was not enough evidence to award damages for “economic loss” but ordered the company to pay the couple R200 000 for “constitutional damages” and publicly apologise to them in their local newspapers.
She also ordered the company to refrain from any further discrimination in its business.
The Mercury