Court relief for indebted citizens

The Gauteng High Court, Pretoria

The Gauteng High Court, Pretoria

Published Sep 27, 2018

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From February next year, litigants - especially big corporates and financial institutions - will no longer simply be able to haul the public before the Gauteng High Court, Pretoria, when it is convenient for them.

A full Bench of three judges, led by Pretoria Deputy Judge President Aubrey Ledwaba, ruled that from February 2, civil actions, where the monetary value claimed was within the jurisdiction of the magistrate’s courts, should be instituted in those forums. This is unless the high court has granted leave to hear the matter in this court.

As things stand, the district court - which is a step lower than the regional court - can hear matters where the amount involved is up to R200 000. The regional courts can handle matters where the claim is between R200 000 and R400 000. From this amount up a claim can be heard by a high court.

But litigants turn to the high court even if the amount claimed fell within the lower courts’ jurisdiction.

It was also declared that a high court was entitled to transfer a matter to any of the other high courts in the country if it was in the interest of justice and closer for the parties involved.

In this groundbreaking judgment delivered yesterday, the three - Judge Ledwaba, Judge Ronel Tolmay and Judge Billy Mothle - firmly put their collective foot down that big institutions, especially, could simply haul the often cash-strapped public before a high court far from where they hailed because it was easier for the financial giants.

The high court in Pretoria is particularly overburdened by all the work as most of the cases come before it.

The judgment was sparked by 13 cases involving the country's banks, which claimed money from cash-strapped members of the public who could not keep up with their bond payments. The amounts in arrears fluctuated between R7772 and R20782. These were relatively small amounts, which fell within the jurisdiction of the lower courts. The banks said it was more convenient to turn to the high court.

Cash-strapped defendants had to travel at their cost - in this case to Pretoria - to defend the matters and to file court papers. When they lost the case, they were saddled with the legal bill on a high court scale, which is far more expensive than on a lower court scale.

Judge Tolmay, who delivered the judgment, said there was an increasing tendency by litigants, mainly banks and other commercial institutions, to enrol matters in the high court when it fell within the lower courts’ jurisdiction.

Another problem was that many cases were enrolled in the Gauteng High Court, Pretoria, even if the parties lived in other regions. The result is the court roll in this division is so congested that matters which legitimately belong there were held up as cases had to wait.

The banks said they preferred to litigate in the high court, even for small amounts, as they did not have much faith in the lower courts.

Judge Tolmay said there was an obligation on the courts to ensure access to justice for everyone. “Legal costs are unaffordable, even to the middle class.” She urged banks to adjust their thinking.

Pretoria News

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