ZONDI AJ
[83]
The Minister opposes the appeal by the Estate on the grounds that Mr Frankel
actively opposed the application right until his death and his opposition was only
withdrawn thereafter. Thus his Estate should bear the costs as ordered. As for the
agreement between the applicants and the Estate, the Minister submits that the
High Court was correct in disregarding it. The High Court‘s ruling in this regard is not
without authority. This Court noted in Malachi that—
―[t]his Court is, however, not bound by that agreement. Costs are a matter which lies
entirely within the discretion of this Court, to be exercised with due regard to the
particular circumstances of each case.‖72
[84]
Relying on this dictum the Minister submits that this Court cannot be bound by
the agreement between the applicants and the Estate regarding costs. In the alternative,
the Minister submits that should this Court find that the applicants have indeed waived
their right to claim costs as per the agreement, this Court should direct that the Minister
is liable for only 50 percent of the costs incurred up until 20 January 2017.
[85]
The award of costs is a matter within the discretion of the court. The discretion
inherent in the decision to award costs is one that must be exercised judicially having
regard to all the relevant considerations.73 An appeal court will only interfere with the
exercise of that discretion if it is demonstrated that it has not been exercised judicially
or has been exercised based on a wrong appreciation of the facts or wrong principle of
law.
[86]
The question is whether the High Court breached the principle of
pacta sunt servanda when it refused to uphold the agreement and ordered the Estate to
pay costs. It is correct that the general principle is that courts will enforce contracts
between private parties which are entered into freely and voluntarily, and as long as
72
Malachi v Cape Dance Academy International (Pty) Ltd [2010] ZACC 24; 2010 (6) SA 1 (CC); 2011 (3) BCLR
276 (CC) at para 52.
73
Affordable Medicines Trust v Minister of Health [2005] ZACC 3; 2006 (3) SA 247 (CC); 2005 (6) BCLR 529
(CC) at para 138.
35
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