ZONDI AJ
their objective terms are consistent with public policy.74 It must be accepted that the
agreement on costs liability concluded between the applicants and the Estate cannot be
said to be in any way against public policy. It may be enforceable at the instance of an
aggrieved party. The difficulty for the Estate is that we are concerned here with a
contract, the application of which goes beyond the confines of the primary parties. Its
terms affect the rights of the litigants who are not parties to the agreement. The
High Court was therefore correct in holding that it was not bound by the agreement
entered into between the applicants and the Estate in relation to costs where the
agreement affected third parties, such as the Minister. The Minister was a party to the
proceedings and for that reason his consent had to be secured for the conclusion of the
agreement that sought to settle the disputed issues between the parties. It is not in
dispute that the Minister had not agreed to the conclusion of the agreement by which it
was sought to settle liability for costs between the applicants and the Estate. Liability
for costs was an issue in which the Minister had a substantial interest. This ground of
appeal should therefore fail.
[87]
The alternative argument advanced by the Estate is one based on the Biowatch75
principle. The contention is that this application is not one of private litigation in which
the ordinary rules pertaining to costs orders apply. The Estate argues it is a matter of
constitutional litigation, which therefore means that the High Court‘s discretion on costs
must be exercised in accordance with the special rules relating to costs in constitutional
litigation and where necessary, to adapt substantially the common law rules relating to
costs. In relation to the approach to the exercise of discretion in constitutional litigation
in which the state is a primary role-player this Court in Biowatch had this to say:
―[T]he general point of departure in a matter where the [s]tate is shown to have failed
to fulfil its constitutional and statutory obligations, and where different private parties
are affected, should be as follows: the [s]tate should bear the costs of litigants who have
been successful against it, and ordinarily there should be no costs orders against any
74
Barkhuizen above n 69 at paras 57 and 87.
75
Biowatch above n 71.
36
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