Litigation & Dispute Resolution 2017 - Cliffe Dekker Hofmeyr · Litigation & Dispute Resolution 2017 ICLG CDR Commercial Dispute Resolution ... 19 Korea Bae, Kim & Lee LLC: Kap-You

The International Comparative Legal Guide to:

A practical cross-border insight into litigation and dispute resolution work

10th Edition

Litigation & Dispute Resolution 2017

ICLG

C RDCommercial Dispute Resolution

ARNECKE SIBETH Rechtsanwälte Steuerberater Partnerschaftsgesellschaft mbBAxioma Estudio LegalBae, Kim & Lee LLCBär & Karrer Ltd.Blake, Cassels & Graydon LLPBROSETAClayton UtzCliffe Dekker Hofmeyr IncCovington & Burling LLPDrinker Biddle & Reath LLPGün + PartnersGürlich & Co.Hamdan AlShamsi Lawyers & Legal ConsultantsHolland & Knight LLPJackson Walker LLPKammeradvokaten, Law Firm Poul SchmithKentuadei Adefe, Legal Practitioners, Mediators & ArbitratorsKobre & KimKubas Kos Gałkowski

Lennox PatonLoyens & Loeff Luxembourg S.à.r.l.Makarim & Taira S.McCann FitzGeraldMiller & Chevalier CharteredNagashima Ohno & TsunematsuNorburg & Scherp Advokatbyrå ABOblin MelicharPolenak Law FirmPotter Anderson & Corroon LLPQuevedo & PonceRichman Greer, P.A.Rogério Alves & Associados – Sociedade de Advogados, R.L.Sam Okudzeto & AssociatesSkadden, Arps, Slate, Meagher & Flom LLPSouto, Correa, Cesa, Lummertz & Amaral AdvogadosSysouev, Bondar, Khrapoutski SBH Law OfficeWaselius & WistZamfirescu Racoţi & Partners Attorneys at Law

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DisclaimerThis publication is for general information purposes only. It does not purport to provide comprehensive full legal or other advice.Global Legal Group Ltd. and the contributors accept no responsibility for losses that may arise from reliance upon information contained in this publication.This publication is intended to give an indication of legal issues upon which you may need advice. Full legal advice should be taken from a qualified professional when dealing with specific situations.

Continued Overleaf

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General Chapter:

2 Australia Clayton Utz: Colin Loveday & Scott Grahame 6

3 Austria Oblin Melichar: Dr. Klaus Oblin 15

4 Belarus Sysouev, Bondar, Khrapoutski SBH Law Office: Timour Sysouev & Alexandre Khrapoutski 22

5 Brazil Souto, Correa, Cesa, Lummertz & Amaral Advogados: Jorge Cesa & Ronaldo Kochem 33

6 British Virgin Islands Lennox Paton: Scott Cruickshank & Matthew Freeman 40

7 Canada Blake, Cassels & Graydon LLP: Ryder Gilliland & Daniel Styler 54

8 Costa Rica Axioma Estudio Legal: Andre Vargas Siverio 62

9 Czech Republic Gürlich & Co.: Richard Gürlich & Kamila Janoušková 69

10 Denmark Kammeradvokaten, Law Firm Poul Schmith: Kasper Mortensen & Henrik Nedergaard Thomsen 76

11 Ecuador Quevedo & Ponce: Alejandro Ponce Martínez 84

12 England & Wales Covington & Burling LLP: Greg Lascelles & Salah Mattoo 90

13 Finland Waselius & Wist: Tanja Jussila 102

14 Germany ARNECKE SIBETH Rechtsanwälte Steuerberater Partnerschaftsgesellschaft mbB: Dr. Robert Safran & Ulrich Steppler 110

15 Ghana Sam Okudzeto & Associates: Esine Okudzeto & Rosemary Owusu 119

16 Indonesia Makarim & Taira S.: Alexandra Gerungan & Raditya Anugerah Titus 126

17 Ireland McCann FitzGerald: Seán Barton & Megan Hooper 133

18 Japan Nagashima Ohno & Tsunematsu: Koki Yanagisawa 142

19 Korea Bae, Kim & Lee LLC: Kap-You (Kevin) Kim & John P. Bang 150

20 Luxembourg Loyens & Loeff Luxembourg S.à.r.l.: Véronique Hoffeld 157

21 Macedonia Polenak Law Firm: Tatjana Popovski Buloski & Aleksandar Dimic 164

22 Nigeria Kentuadei Adefe, Legal Practitioners, Mediators & Arbitrators: Kentuadei Adefe & Ottah Nelson 174

23 Poland Kubas Kos Gałkowski: Paweł Sikora & Wojciech Wandzel 183

24 Portugal Rogério Alves & Associados – Sociedade de Advogados, R.L.: Rogério Alves 191

25 Romania Zamfirescu Racoţi & Partners Attorneys at Law: Cosmin Vasile & Alina Tugearu 199

26 South Africa Cliffe Dekker Hofmeyr Inc: Pieter Conradie & Anja Hofmeyr 207

27 Spain BROSETA: Patricia Gualde & Alfonso Carrillo 215

28 Sweden Norburg & Scherp Advokatbyrå AB: Fredrik Norburg & Erika Finn 225

29 Switzerland Bär & Karrer Ltd.: Matthew Reiter & Simone Burlet-Fuchs 232

30 Turkey Gün + Partners: Pelin Baysal & Beril Yayla Sapan 240

31 Turks & Caicos Islands Kobre & Kim: Tim Prudhoe & Alexander Heylin 248

32 United Arab Emirates Hamdan AlShamsi Lawyers & Legal Consultants: Hamdan Alshamsi 255

33 USA – California Skadden, Arps, Slate, Meagher & Flom LLP: Jason D. Russell & Hillary A. Hamilton 262

34 USA – Delaware Potter Anderson & Corroon LLP: Jonathan A. Choa & John A. Sensing 270

35 USA – Florida Richman Greer, P.A.: Leora B. Freire & Leslie Arsenault Metz 278

36 USA – Georgia Holland & Knight LLP: Laurie Webb Daniel & Harold T. Daniel, Jr. 285

37 USA – Illinois Drinker Biddle & Reath LLP: Justin O. Kay 294

Country Question and Answer Chapters:

1 Cybersecurity – Greg Lascelles & Salah Mattoo, Covington & Burling LLP 1

Contributing EditorGreg Lascelles, Covington & Burling LLP

Sales DirectorFlorjan Osmani

Account DirectorOliver Smith

Sales Support ManagerPaul Mochalski

EditorCaroline Collingwood

Senior EditorsSuzie Levy, Rachel Williams

Chief Operating OfficerDror Levy

Group Consulting EditorAlan Falach

PublisherRory Smith

Published byGlobal Legal Group Ltd.59 Tanner StreetLondon SE1 3PL, UKTel: +44 20 7367 0720Fax: +44 20 7407 5255Email: [email protected]: www.glgroup.co.uk

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ISBN 978-1-911367-44-4 ISSN 1755-1889

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Country Question and Answer Chapters:

The International Comparative Legal Guide to: Litigation & Dispute Resolution 2017

38 USA – New Jersey Drinker Biddle & Reath LLP: Andrew B. Joseph & William A. Wright 303

39 USA – New York Drinker Biddle & Reath LLP: Clay J. Pierce & Marsha J. Indych 310

40 USA – Pennsylvania Drinker Biddle & Reath LLP: Michael W. McTigue Jr. & Jennifer B. Dempsey 319

41 USA – Texas Jackson Walker LLP: Retta A. Miller & Devanshi M. Somaya 326

42 USA – Washington, D.C. Miller & Chevalier Chartered: Brian A. Hill & John C. Eustice 333

EDITORIAL

Welcome to the tenth edition of The International Comparative Legal Guide to: Litigation & Dispute Resolution.This guide provides corporate counsel and international practitioners with a comprehensive worldwide legal analysis of the laws and regulations of litigation and dispute resolution.It is divided into two main sections:One general chapter. This chapter provides an overview of Cybersecurity, particularly from a UK perspective.Country question and answer chapters. These provide a broad overview of common issues in litigation and dispute resolution in 41 jurisdictions, with the USA being sub-divided into 10 separate state-specific chapters.All chapters are written by leading litigation and dispute resolution lawyers and industry specialists, and we are extremely grateful for their excellent contributions.Special thanks are reserved for the contributing editor Greg Lascelles of Covington & Burling LLP for his invaluable assistance.Global Legal Group hopes that you find this guide practical and interesting.The International Comparative Legal Guide series is also available online at www.iclg.com.

Alan Falach LL.M. Group Consulting Editor Global Legal Group [email protected]

ICLG TO: LITIGATION & DISPUTE RESOLUTION 2017 207WWW.ICLG.COM© Published and reproduced with kind permission by Global Legal Group Ltd, London

Chapter 26

Cliffe Dekker Hofmeyr Inc

Pieter Conradie

Anja Hofmeyr

South Africa

CourtmaybeappealedtoafullbenchoftheHighCourt,consistingof three sitting judges. A party can appeal from theHighCourttoeithertheSupremeCourtofAppealortheConstitutionalCourt(incertaininstances).TheConstitutionalCourt,beingthehighestcourtinthecountry,isthelastandfinalcourtthatcandetermineanyparticularmatter.IntheHighCourt,SouthAfricahasthefollowingspecialistcourts:■ LandClaimsCourt.■ IncomeTaxAppealCourt.■ CompetitionAppealCourt.■ Patents&CopyrightCourts.■ LabourCourts.■ ElectoralCourts.■ EqualityCourts.IntheLowerCourts,SouthAfricahasthefollowingspecialistcourts:■ DivorceCourt.■ FamilyCourts.■ SmallClaimsCourts.■ CourtsofTraditionalLeaders.■ CommunityCourts.■ SexualOffencesCourts.

1.3 What are the main stages in civil proceedings in your jurisdiction? What is their underlying timeframe (please include a brief description of any expedited trial procedures)?

Civil proceedings are instituted either by way of an application(motionproceedings)orbywayofanaction(summons).Amotionproceedingisaprocedureintermsofwhichanapplicationis brought byway of a notice ofmotion, supported by affidavitssettingout the factsuponwhich theapplicant relies for relief. Anoticetoopposetheapplicationmustbedeliveredwithinfivedaysafter receiptof thenoticeofmotion. Therespondentmayfileanansweringaffidavitwithin15daysafterfilingthenoticeofintentionto oppose and the applicant is entitled to file a replying affidavitwithin 10 days after receipt of the answering affidavit from therespondent. The exchange of affidavits in a normal applicationshould be donewithin twomonths but itmay take another threemonthsbeforetheapplicationcanbeenrolledforhearing.Actionproceedingsareinstitutedbywayofasimpleoracombinedsummons, citing the defendant(s), but addressed to the Sheriff.TheSheriff isdirected to serve the summonson thedefendant(s)toinformthedefendantthatifthedefendantwishestodefendthe

I. LITIGATION

1 Preliminaries

1.1 What type of legal system has your jurisdiction got? Are there any rules that govern civil procedure in your jurisdiction?

TheSouthAfricansystemisnotcodified.SouthAfricaisacommonlawcountrywherecaselaw,intheformofjudicialjudgment,isofprimaryimportance.TheSouthAfricanlegalsystemisalegalhybridofRoman-DutchlawandEnglishlaw,whereprivatelawisbasedonRoman-DutchlawandEnglishlawisthefoundationforcompanylaw,thelawofevidence andboth civil and criminal procedure. There is furthera system of legal pluralismwhere the national legal system runsparalleltocustomarylaw.However, although the legal system comprises a combinationof various legal systems, theConstitutionalCourt, in a judgmentduring2000[2000(2)SA674(CC)],heldthatthecommonlaw“isshapedbytheConstitutionwhichisthesupremelaw,andalllaw,includingtheCommonLaw,derivesitsforcefromtheConstitutionandissubjecttoconstitutionalcontrol”.The civil court system in SouthAfrica is adversarial as opposedto inquisitorial in nature. The civil court system is governed byspecificrulesforeachcourt–ConstitutionalCourt,SupremeCourtofAppeal,HighCourtandMagistrate’sCourt(LowerCourt).Apartfromtherules,therearealsopracticedirectiveswhichareusuallycourt-specific,anddifferineachjurisdiction.

1.2 How is the civil court system in your jurisdiction structured? What are the various levels of appeal and are there any specialist courts?

There are four levels of the civil court system. First, theLowerCourt (orMagistrates’Court),with amonetary jurisdictionof uptoZAR400000.Second,theHighCourt,presidedoverbyasinglejudgewithunlimitedmonetaryjurisdiction.TheLowerCourtsandvariousdivisionsoftheHighCourtarecourtsoffirstinstance.Third,theSupremeCourtofAppeal,hearingonlyappeals,whichthreetofivejudgespresidingoveramatter.Lastly,theConstitutionalCourt,with 11 judges,which is the highest court in SouthAfrica. ThecommonlawisdevelopedviajudgmentsgivenbySuperiorCourts(HighCourtsandabove).AnappealisavailablefromtheMagistrates’CourttotheHighCourt.A judgmentor orderhandeddownby a single judge in theHigh

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Cliffe Dekker Hofmeyr Inc South Africa

action,anoticeofintentiontodefendmustbefiledwithin10daysfromreceiptofthesummons.Thereafter,unlesssummaryjudgmentis applied for, a pleamust be filedwithin 20 days after a noticeof intention todefendhasbeenfiled.Where theplaintiff issuedasimplesummons, theplaintiffhas tofileadeclaration inadditionto the simple summonsandapleahas tobefiledwithin20daysafterserviceofthedeclarationuponthedefendant.Theplaintiffisentitledtofileareplicationandcounterclaimwithin15daysaftertheserviceofapleaupontheplaintiff.Afterthefilingofapleatherulesmakeprovisionfordiscovery;requestforparticulars;pre-trialproceedingsandanapplicationforatrialdate.Depending on the division of the High Court where the actionhasbeeninstituted,apartymaywaitforuptotwoyearsfromthecommencementoftheactionuntilatrialdatehasbeenallocatedbytheRegistrarofthecourt.InurgentapplicationsacourtmaydispensewithcertainrequirementsoftheRulesanddisposeofthematterwithinhoursordays.

1.4 What is your jurisdiction’s local judiciary’s approach to exclusive jurisdiction clauses?

Thejudiciary’sapproachis togiveeffect toexclusivejurisdictionclauses inanycontract, asagreedbetween theparties. However,thedivisionmustalsohavejurisdictionintermsofsection21oftheSuperiorCourtsAct,18of2013.

1.5 What are the costs of civil court proceedings in your jurisdiction? Who bears these costs? Are there any rules on costs budgeting?

The “costs follow the event” principle applies and the successfulpartyisusuallyentitledtocostsagainsttheunsuccessfulparty.Costsaretaxedandpayablebythelosingpartyupondifferentscales,themostcommonbeingparty-and-partycosts.Forinstance,anawardofpartyandpartycostswillentitlethesuccessfulpartytotaxabillofcostsinaccordancewiththetariffofcourtfees,asprescribedintheRules.Incertaincircumstances,acourtmayalsoorderapartytopaycostsontheattorney-and-clientscaleorattorney-and-own-clientscale,whicharebasedonhighertariffsandincludeadditionaltaxable items. Attorney-and-own-client costs is thehighestorderofcoststhatcanbemadebyacourtand,inmostcircumstances,istantamounttoapunitivecostsorder.Therearenorulesoncostbudgeting.

1.6 Are there any particular rules about funding litigation in your jurisdiction? Are contingency fee/conditional fee arrangements permissible?

Therearenocourtruleswithregardtothefundingoflitigation.TheContingencyFeesAct66of1997regulatescontingencyfeesandalegalpractitionermaychargeafeeequaltoanamountwhichdoesnotexceedtwicethenormalfeeofthepractitioner,subjecttheretothatthisamountmaynotexceed25%ofthetotalclaimsoundinginmoney.Contingencyfeearrangementsmustbeinwriting.

1.7 Are there any constraints to assigning a claim or cause of action in your jurisdiction? Is it permissible for a non-party to litigation proceedings to finance those proceedings?

Itispossibletocedeorassignaclaimtoanotherparty.Suchcessionorassignmentmusthavetakenplacepriortotheinstitutionofthe

action.Champertyisallowedanditisthereforelawfulforanon-partytothelitigationproceedingstofinancethoseproceedings.

1.8 Can a party obtain security for/a guarantee over its legal costs?

TheRulesofCourtmakeprovisionforapartytodemandsecurityforcosts.Theformofsecuritymaybebywayofapaymentintocourtoranacceptableformofguarantee.However,morerecently,the courts have determined that security can only be demandedfrom a plaintiff in limited circumstances from a party resident(incola)inSouthAfrica.Inthesecircumstances,securitycanonlybedemandedshouldthedefendantbeabletoshowthattheclaimis vexatious, reckless or otherwise amounting to abuse. Foreignentitiesorpersons(peregrine)canberequestedtofurnishsecuritybeforetheyproceedwiththeirclaimsincourt.

2 Before Commencing Proceedings

2.1 Is there any particular formality with which you must comply before you initiate proceedings?

In general there is no particular formality to comply with priorto institutingproceedings. It iscommonpractice inSouthAfricato address a letter of demand to the defending party prior to theinstitutionofproceedings.However,theLegalProceedingsagainstCertainOrgansofStateAct40of2002provides formalitieswithregardtolegalproceedingsforrecoveryofadebtfromastateorgan.Section3(1)oftheaforesaidActstipulatesthatanoticeinwritingmust be sent to the state organby the creditor, notifying it of itsintention to institute legal proceedings, failing which such legalproceedingsmaybedismissed.

2.2 What limitation periods apply to different classes of claim for the bringing of proceedings before your civil courts? How are they calculated? Are time limits treated as a substantive or procedural law issue?

The Prescription Act of 1969 applies and prescribes differentprescriptionperiodsfordifferentclaims.Forexample,adebtwillprescribeafterthreeyears;claimsbasedonjudgmentsandmortgagebonds, prescribe after 30 years; bills of exchange or negotiableinstrumentsprescribe after sixyears; anydebtowed to theState,prescribeonlyafter15years.Prescriptioncommences torunwhenthedebt isdue. Exceptionsincludewherethedebtorwilfullypreventsthecreditorfromcomingtoknowoftheexistenceofthedebt.Further,thedebtisnotdeemedto be due until the creditor has knowledge of the identity of thedebtor. Forpurposesofcalculating the timeperiodwithinwhichproceedingsmustbeinstituted(topreventaclaimprescribing),thefirstdayisexcludedandthelastdayisincludedintherelevanttimeperiod.Somelegislation,forexampletheConsumerProtectionActof2008,prescribes prescription periods applicable in respect of specificclaimsrelatingtoproductliabilityclaims.Prescriptionofdebtisasubstantiveissue.


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3 Commencing Proceedings

3.1 How are civil proceedings commenced (issued and served) in your jurisdiction? What various means of service are there? What is the deemed date of service? How is service effected outside your jurisdiction? Is there a preferred method of service of foreign proceedings in your jurisdiction?

CivilproceedingscommencewiththeissuingofasummonsoranapplicationbytheRegistrarofthecourt.Serviceofanyprocessofthecourtisperformedbythesheriff,whomustservethesummonsorapplication.The datewhich appears on the return of service prepared by thesheriff is thedate acceptedby the court as thedate of serviceorattemptedserviceshouldanulla bonareturnbeissued.LeaveofthecourtisrequiredtoserveaprocessoutsideSouthAfrica.Foreignproceedingsareservedbythesheriff.Intheeventofitnotbeingpossibletoeffectservice,asaforesaid,thenanapplicationmaybemadetocourtforsubstitutedservice.

3.2 Are any pre-action interim remedies available in your jurisdiction? How do you apply for them? What are the main criteria for obtaining these?

Anurgentapplication for interimreliefcanbe regardedasapre-action. To succeed with an interim interdict, the court must besatisfiedthatcertainrequirementsaremet,forexample:■ theapplicationmustbeurgent;■ theapplicanthasestablishedaprima facieright;■ iftheapplicationisnotgranted,thentherewillbeirreparable

harm;■ theremustbenootherremedyavailabletotheapplicant;and■ thebalanceofconveniencefavourstheapplicant.Suchaninteriminterdictapplicationwillbeofatemporarynaturependingtheoutcomeoffurtherproceedings.

3.3 What are the main elements of the claimant’s pleadings?

The pleading must contain a clean and concise statement of thematerialfactsuponwhichapartyreliesforaclaimwithsufficientparticularity to enable the defendant or respondent party to replythereto,ifnecessary.When suing for damages, the summons must set out in such amanner as will enable the defendant to reasonably assess thequantumthereof.Itisonlynecessarytopleadthefacta probanda(factstobeprovedtosustainthecauseofaction),notthefacta probantia(theevidenceapartywillrelyontheprovethefactsindispute).

3.4 Can the pleadings be amended? If so, are there any restrictions?

Yes.Intermsoftherulesapartymayamendapleadingordocumentother thana sworn statement. Noticemustbegiven to theotherside of the amendment and the other side is entitled to object to

such amendment. An objection to a proposed amendment muststatethegroundsoftheobjection.Shouldthepartywhointendstoamendpersistwithitsamendment,suchpartywillhavetobringanapplicationtocourtforleavetoamend.

3.5 Can the pleadings be withdrawn? If so, at what stage and are there any consequences?

Pleadingsmaybewithdrawnatanytimebeforethematterhasbeensetdownfortrialandthereafter,onlybyconsentofthepartiesorleaveofthecourt.Thepartywithdrawingthepleadingswillhavetotendertheiropponent’sparty-and-partytaxedcosts.Thewithdrawalofpleadingsbytheplaintiffwillbeawithdrawaloftheaction,butnotoftheclaim.Theplaintiffmayinstitutetheclaimagainpriortotheclaimbecomingprescribed.

4 Defending a Claim

4.1 What are the main elements of a statement of defence? Can the defendant bring counterclaims/claim or defence of set-off?

Adefendantmaydeliverapleawithorwithoutacounterclaimoranexceptionwithorwithoutanapplicationtostrikeoutavermentsin the summons, which may be capable of being struck off thepleadings. Adefendantmust, in theplea,eitheradmitordenyorconfess and avoid thematerial facts alleged in the summons. InHighCourtactions,everyallegationoffactinthesummons,whichisnotdenied,shallbedeemedtobeadmitted.Adefendantmayfileacounterclaimandmaypleadthatanyamountof the counterclaim, in the event of a counterclaim being lesserthan the amount claimed, be set-off against the claim against thedefendant.

4.2 What is the time limit within which the statement of defence has to be served?

Thetimelimitis20courtdaysafterthedefendanthasdeliveredanoticeofintentiontodefend.

4.3 Is there a mechanism in your civil justice system whereby a defendant can pass on or share liability by bringing an action against a third party?

Therulesofthecourtmakeprovisionforathirdpartyprocedure.Wherethedefendantisoftheviewthatathirdparty,notcitedasaco-defendant, isobligedtocontributeorindemnifythedefendant,thedefendantmayjoinsuchthirdpartyasadefendant.Further,intheeventofanyquestionorissueinanactionbeingsubstantiallythesameasaquestionorissuewhichhasarisenorwillarisebetweentheplaintiffandthethirdparty,thiswillentitleapartytojoinathirdpartytotheproceedings.

4.4 What happens if the defendant does not defend the claim?

If thedefendantdoesnotdefendtheclaim, thentheplaintiffmayapplyfordefaultjudgmentagainstthedefendant.


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4.5 Can the defendant dispute the court’s jurisdiction?

Yes.Thedeliveryofanoticeofintentiontodefendisnotawaiveroftherightofthedefendanttoobjecttothejurisdictionofthecourt.

5 Joinder & Consolidation

5.1 Is there a mechanism in your civil justice system whereby a third party can be joined into ongoing proceedings in appropriate circumstances? If so, what are those circumstances?

Seequestion4.3above.

5.2 Does your civil justice system allow for the consolidation of two sets of proceedings in appropriate circumstances? If so, what are those circumstances?

Theconsolidationoftwosetsofproceedingsisallowedevenwheretheonematter is in adifferent jurisdiction. Circumstances tobetaken into accountwill bematterswhere the same parties are inbothsetsofproceedingsandtwotrialswillresultinaduplicationof costs. Parties and theirwitnessesmay also have to be cross-examinedintwoseparatetrialsandmaybeprejudiced.Thereisalsothepossibilityofhavingtwotrials,dealingbasicallywiththesameissues, resulting indifferent judgments. Therefore,circumstancestakenintoaccountforconsolidationtotakeplaceareconvenienceandtheavoidanceofthemultiplicityofactions.

5.3 Do you have split trials/bifurcation of proceedings?

Yes. Partiesmayagree tohave themeritsofaclaimdeterminedfirstbeforethequantumofaclaimisdealtwith.Further,ifthereisaquestionoflaworfactwhichmayconvenientlybedecidedeitherbeforeanyevidence is ledor separately fromanyotherquestion,thepartiescanagreetohavesuchquestiondeterminedseparately,failingwhichapartycanapplytocourtforsuchseparation.Thisprocessmayshortentheproceedingsandsavecosts.

6 Duties & Powers of the Courts

6.1 Is there any particular case allocation system before the civil courts in your jurisdiction? How are cases allocated?

Parties apply for a hearing date from the Registrar. Cases areallocatedtoajudgeonthedaythatthematterhasbeensetdownforahearing.AllmatterssetdownwillbecalledbyaseniorjudgeofthatDivisionandwiththeassistanceoftheRegistraroftheCourt,thecaseswillbeallocatedtodifferentjudges.

6.2 Do the courts in your jurisdiction have any particular case management powers? What interim applications can the parties make? What are the cost consequences?

Judges in some jurisdictions have case management powers. Insuchcases,ajudgewillchairapre-trialmeetingandthejudgewilldeterminewhetheracaseisripeforhearing.

Interimorinterlocutoryapplicationsmaybebrought,forexample,tocompelapartytorespondtoarequestforparticularsortomakediscovery. Each applicationmayhave cost consequences for thelosingparty.Insomeinstances,acourtmayrulethatatrialjudgeisbetterplacedtodeterminethecostsoftheinterlocutoryapplicationandargument regarding thecostswill thenstandover tobedealtwithduringthetrialstage.

6.3 What sanctions are the courts in your jurisdiction empowered to impose on a party that disobeys the court’s orders or directions?

WhereapartyfailstocomplywiththeRulesorwitharequestmadeoranoticegivenpursuantthereto,apartymaynotifythedefaultingparty that an applicationwill bemade to apply for an order thatsuchrule,noticeorrequestbecompliedwith,failingwhichafurtherapplication can be brought for the dismissal of the claim or thestrikingoutofthedefence.Incertaininstances,failuretoadheretoacourtordercanresultinapartybeingincontemptofcourt,whichmayleadtoincarceration.

6.4 Do the courts in your jurisdiction have the power to strike out part of a statement of case or dismiss a case entirely? If so, at what stage and in what circumstances?

Yes.Whereapleadingisvagueandembarrassingorlacksavermentswhicharenecessary tosustainacauseofactionordefenceandapartywasgiven theopportunity to rectify its pleading, but failedor refused to do so, the other partymay file an exception to thepleading. If theexception isupheld, theotherpartywillhave toamend its pleadings, failing which such party’s claim may bedismissedordefencebestruckout.Further, where any pleadings contain averments which arescandalous,vexatiousorirrelevant, theoppositepartymaywithinthe period allowed for any subsequent pleading, apply for thestrikingoutofthemattercomplainedof.Anapplicationtostrikeoutmaybeaccompaniedwithanapplicationtodismisstheclaimordefencesimultaneously.

6.5 Can the civil courts in your jurisdiction enter summary judgment?

Yes,aplaintiffmayapplyforsummaryjudgmentafterthedefendantfiledanoticeofintentiontodefendandacourtmaygrantsummaryjudgmentinthefollowingcircumstances:■ wheretheclaimisbasedonaliquiddocument;■ wheretheclaimisforaliquidatedamountofmoney;■ wheretheclaimisfordeliveryofspecifiedmovableproperty;

and■ wheretheclaimisforejectment,togetherwithanyclaimforinterestandcosts.

6.6 Do the courts in your jurisdiction have any powers to discontinue or stay the proceedings? If so, in what circumstances?

Acourtmaystaytheproceedingswherethemonetarycounterclaimofthedefendantishigherthantheamountoftheplaintiff’sclaiminordertodeterminethedefendant’sclaimfirst.Stayofproceedingsmayalsooccurpendingtheoutcomeofarbitrationproceedings.


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Wheretherehasbeenpersistentandrepeatedvexatiousproceedings,acourtmayorderthediscontinuanceoffurtherlitigation.

7 Disclosure

7.1 What are the basic rules of disclosure in civil proceedings in your jurisdiction? Is it possible to obtain disclosure pre-action? Are there any classes of documents that do not require disclosure? Are there any special rules concerning the disclosure of electronic documents or acceptable practices for conducting e-disclosure, such a predictive coding?

InSouthAfrica,thediscoveryprocessdoesnotincludedepositions.A party making discovery must make discovery of all relevantdocumentsinitspossessionwithin20daysafterreceiptofanoticetomake discovery. All such documents are listed in a scheduleaccompaniedbyanaffidavit,confirmingthatallrelevantdocumentshavebeendiscovered.Therearetwoschedules,onebeinginrespectofdocumentswhicharetobeprovidedtotheotherpartyandtheotherschedule,listingdocumentswhicharelegallyprivileged.Discoveryisnotpossiblepriortoanactionbeinginstitutedandisonlypossibleafterclosureofpleadings.Computer related evidence is regulated by the ElectronicCommunicationsandTransactionsAct25of2002.Partiesmay agree tomakediscovery bywayof e-disclosure andpredictivecoding.However,apartycannot,intermsoftheRules,becompelledtodoso.

7.2 What are the rules on privilege in civil proceedings in your jurisdiction?

Intermsoftherules,statementsofwitnessestakenforthepurposeof the proceedings, communications between attorney and clientandcommunicationsbetweenattorneyandcounselwillberegardedasprivilegeddocuments.Althoughsuchprivilegeddocumentsmustbementionedinthescheduleaforesaid,suchdocumentsdonothavetobemadeavailabletotheotherside.Confidentialdocumentsarenotnecessarilylegallyprivileged.

7.3 What are the rules in your jurisdiction with respect to disclosure by third parties?

Unless a person has been joined as a third party defendant toproceedings, a third party cannot be forced to make discovery.Documentsinpossessionofathirdpartycanonlybeobtainedwiththeserviceofasubpoena duces tecum.

7.4 What is the court’s role in disclosure in civil proceedings in your jurisdiction?

Thecourtdoesnotplayaroleinthediscoveryprocessunlessthereisadisputeas towhetheraparty isentitled tofurtherdocumentsorwhetheradocument is indeed legallyprivileged. Acourtwillthenruleastowhethersuchdocumentshavetobediscoveredandprovidedtotheotherside.

7.5 Are there any restrictions on the use of documents obtained by disclosure in your jurisdiction?

No,therearenot.

8 Evidence

8.1 What are the basic rules of evidence in your jurisdiction?

ThebasicrulesofevidenceareEnglishlaworientated.TheCivilProceedingsEvidenceActNo25of1965andtheLawofEvidenceAct No 45 of 1988 (as amended), and the Constitution governvariousaspectsofthelawofevidence.

8.2 What types of evidence are admissible, which ones are not? What about expert evidence in particular?

Factualevidencewhichisrelevantisadmissible.Relevantmeansthattheevidencecanputafactinissueoutofdisputeoritrendersa fact more or less probable. As a general rule, evidence thatis inadmissible due to lack of probative value includes hearsayevidence, previous inconsistent statements, character evidenceandsimilarfactevidence.However,thereareexceptionstothesegeneralrules.In urgent applications, a party may rely on hearsay evidence incertaincircumstances,forexample,duetotheurgencyofthematter,apartycouldnotobtaintheevidenceofaspecificwitness.Unconstitutionally obtained evidence is inadmissible even if it isrelevant. However, theexclusionaryruleisqualifiedonthebasisthattheadministrationofjusticecouldrequiresuchevidencetobeadmitted.Apartycallinganexpertasawitnessmayonlydosoifasummaryoftheexpertevidencehasbeenprovidedtotheopposingparty10dayspriortothehearingdate.

8.3 Are there any particular rules regarding the calling of witnesses of fact? The making of witness statements or depositions?

A factual witness may be called to testify under oath and willbe subjected to cross-examination and re-examination. Factualwitnessesmaynotgiveexpertopinionevidenceunlesssuchwitnessisalsodeclaredtobeanexpertwitnessonthatparticularsubject.DepositionsdonotformpartoftheSouthAfricanlegalsystem.Witnessstatementsarenotrequiredintrialproceedings.

8.4 Are there any particular rules regarding instructing expert witnesses, preparing expert reports and giving expert evidence in court? Does the expert owe his/her duties to the client or to the court?

Expertwitnessesaretestifyingonbehalfofapartybuthaveadutytothecourttobeobjectiveandgiveguidancetothecourt.Asummaryoftheexpertevidenceispreparedbythelawyersafterconsultationwiththeexpert.Therearenoparticularrulesregardinginstructionstoanexpert,exceptaswithanyotherwitness,itwouldbeunlawfultoinstructanexpertnottobetruthful.


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II. ALTERNATIVE DISPUTE RESOLUTION

1 General

1.1 What methods of alternative dispute resolution are available and frequently used in your jurisdiction? Arbitration/Mediation/Expert Determination/Tribunals (or other specialist courts)/Ombudsman? (Please provide a brief overview of each available method.)

MediationandarbitrationarepopularmethodstoresolvedisputesinSouthAfrica.Expert determination is also common, especially in constructionagreementswhereadisputecanberesolvedwithindaysbyreferringthedisputeto,forexample,anengineerorauditor.Tribunals are established in terms of legislation and varioustribunals exist. For example, the National Consumer TribunalandtheCompetitionTribunal.Further,thereisalsotheProvincialConsumerProtectionAuthoritywhichutilisesinformalprocedurestoachievemediationandconciliationofadispute.Various legislation also allows for the appointment of anombudsmaninrespectofanyparticulardisputearisingoutofcertaincircumstances.Dependingonthetypeofdispute,suchdisputemaybedealtwithbyatribunalorombudsman.

1.2 What are the laws or rules governing the different methods of alternative dispute resolution?

ArbitrationproceedingsaresubjecttotheArbitrationAct,1965.Therearenolawsprescribedformediationsandamediationisnotapre-requisiteintermsofthecourtrulespriortothecommencementof proceedings. Certain legislation encourages mediation beforeapproachingacourttoresolveanydispute.Partiesmay, in terms of a provision in a commercial agreement,bebound to followamediationprocess,as thefirst step,prior tothecommencementofarbitrationasasecondstepinthealternativedisputeresolutionprocess.Anagreement toarbitratemustbe inwritingand thepartiesmaydecidewhichruleswillbeapplicableforthearbitration.Itmaybethe rules of theHighCourt or rules determined and agreeduponbetweentheparties.The institutions facilitating mediation and arbitration have theirownrulestobefollowedintheeventofadecisionbeingmadetoappointaparticular institution forpurposesof themediationand/orarbitration.

1.3 Are there any areas of law in your jurisdiction that cannot use Arbitration/Mediation/Expert Determination/Tribunals/Ombudsman as a means of alternative dispute resolution?

Certainareasofthelawareexcludedfromarbitrationproceedings.Thoseare:■ matrimonial matters or any matter incidental to any

matrimonialmatter;and■ anymatterrelatingtostatus.Tribunalsandombudsmenappointedintermsoflegislationwillbeboundbytherulesofthespecificlegislationintermsofwhichtheywereappointedtodeterminewhethercertainareasofthelawhavebeenexcludedfromtheirmandate.

9 Judgments & Orders

9.1 What different types of judgments and orders are the civil courts in your jurisdiction empowered to issue and in what circumstances?

Thedifferenttypesofjudgmentsandordersare:■ Judgmentbydefault.■ Summaryjudgment.■ Provisionalsentence.■ Ordersofaspecificnature,forexample,tocompelapartyto

complywiththerules.

9.2 What powers do your local courts have to make rulings on damages/interests/costs of the litigation?

PunitivedamagesdonotformpartoftheSouthAfricansystem.Thecourtsareboundbytherulesrelatingtothequantumofdamages,i.e.apartymustprovethedamagesitclaimsthatithassuffered.Rulingsoninterestmusttakeintoaccountanyagreementbetweenparties as to the interest rate applicable. In the absence of suchagreementorindamagesclaims,thecourtwillgrantinterestbasedontheprevailinginterestrateasprescribedbylegislation.Intermsofthein duplumrule,therunningofintereststopswhentheunpaidinterestequalstheoutstandingcapital.Regardingcosts,seequestion1.5above.

9.3 How can a domestic/foreign judgment be recognised and enforced?

Domesticjudgmentsareenforcedwiththeattachmentofpropertybywayofawarrant/writofexecution.Regardingforeignjudgments,SouthAfricaisasignatorytotheHagueConventionontheRecognitionandEnforcementofForeignJudgmentsinCivilandCommercialMattersandhasenactedtheEnforcementofForeignCivilJudgmentsAct,1988.TheProtectionofBusinessAct,1978mustalsobecompliedwith. AforeignjudgmentcanonlybeenforcedinSouthAfricabyanorderofaSouthAfricanCourt.

9.4 What are the rules of appeal against a judgment of a civil court of your jurisdiction?

FromtheMagistrateCourttotheHighCourtthereisanautomaticrightofappeal.IntheHighCourtapartymustapplyforleavetoappeal. Suchapplicationwillbeheardby the judgewhohandeddownthejudgmentinthefirstinstancetobeappealedagainst.Inthe event that leave to appeal is refused, the unsuccessful partyhastherighttoapplyforleavetoappealbywayofpetitiontotheSupremeCourtofAppeal.AnunsuccessfulpartymayapproachtheConstitutionalCourtforleavetoappeal.

10 Settlement

10.1 Are there any formal mechanisms in your jurisdiction by which parties are encouraged to settle claims or which facilitate the settlement process?

Thereisnoformalmechanismbywhichpartiesareencouragedtosettleclaims.Asettlementagreementsignedbyallparties,maybemadeanorderofcourtbyconsentofalltheparties.


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tomediateexceptthatintheeventoffailuretomediateasthefirststep,thedisputewillautomaticallybereferredtoarbitrationandallpartiesarecompelledtoparticipate.Settlementagreementsreachedatmediation, need not be sanctioned by the court but the partiesmayagreethatthesettlementagreementbemadeanorderofcourt.Asindicatedabove,shouldapartyrefusetosubmittoarbitration,anarbitratormaymakeanorderinsuchparty’sabsence.Arbitrationawardsarebindingand,unlessthepartieshaveagreedinwriting,willnotbesubjecttoappeal. Arbitrationawardsareusuallyfinalbutcanbereviewedonlimitedgrounds.

2 Alternative Dispute Resolution Institutions

2.1 What are the major alternative dispute resolution institutions in your jurisdiction?

Themajoralternativedisputeresolutioninstitutionsare:■ ArbitrationFoundationofSouthernAfrica(“AFSA”);■ Commission for Conciliation, Mediation and Arbitration

(“CCMA”);■ AssociationofArbitrators(“AOA”);and■ AfricaADR(“AADR”).

1.4 Can local courts provide any assistance to parties that wish to invoke the available methods of alternative dispute resolution? For example, will a court – pre or post the constitution of an arbitral tribunal – issue interim or provisional measures of protection (i.e. holding orders pending the final outcome) in support of arbitration proceedings, will the court force parties to arbitrate when they have so agreed, or will the court order parties to mediate or seek expert determination? Is there anything that is particular to your jurisdiction in this context?

The local courts will only provide assistance to a party where apartywhoisboundtoparticipateinarbitrationproceedings,refusestodoso. Acourtcanstayanylitigationproceedingspendingtheconclusionofmediation/arbitrationproceedingswherepartieshaveexpresslyagreedtosuchprocedure.The court does not have any inherent powers to interfere withmediation and arbitration proceedings or the commencementthereof.Forinstance,shouldapartyrefusetosubmittoarbitration,anarbitratormaymakeanorderinsuchparty’sabsence.

1.5 How binding are the available methods of alternative dispute resolution in nature? For example, are there any rights of appeal from arbitration awards and expert determination decisions, are there any sanctions for refusing to mediate, and do settlement agreements reached at mediation need to be sanctioned by the court? Is there anything that is particular to your jurisdiction in this context?

Mediationrulingsarenotbindingunlessthepartiesagreethatsamewillbebindingandenforceable.Therearenosanctionsforrefusing



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Pieter ConradieCliffe Dekker Hofmeyr Inc1 Protea Place, SandtonJohannesburg, 2196South Africa

Tel: +27 11 562 1071Email: [email protected]: www.cliffedekkerhofmeyr.com

Anja HofmeyrCliffe Dekker Hofmeyr Inc1 Protea Place, SandtonJohannesburg, 2196South Africa

Tel: +27 11 562 1129Email: [email protected]: www.cliffedekkerhofmeyr.com

Cliffe Dekker Hofmeyr (CDH) is a full service law firm – one of the largest business law firms in South Africa, with more than 350 lawyers and a track record spanning 163 years. We are able to provide experienced legal support and an authentic knowledge-based and cost-effective legal service for clients looking to do business in key markets across Africa. Our Africa practice brings together the resources and expertise of leading business law firms across the continent that have direct experience acting for governments, state agencies and multinational organisations.

This combined experience across the continent produces an extensive African capability. We also partner with other professional disciplines such as audit, business consulting or corporate finance disciplines to provide a seamless and integrated solution for projects that have a multi-disciplinary dimension. We focus on a number of key sectors which are active and thriving in Africa, including mining and minerals, telecommunications, energy, oil and gas, banking and finance, projects and infrastructure, hospitality and leisure and arbitration.

Pieter Conradie is an Executive Consultant in our Dispute Resolution practice. Pieter has been the attorney for various large corporations in South Africa representing them in the United States of America, Britain and Europe.

CAREER

Pieter was admitted as an attorney in 1976, after which he joined the Johannesburg Bar, where he practised as an advocate until March 1980 when he joined Hofmeyr (now Cliffe Dekker Hofmeyr).

EXPERIENCE

■ Commercial Litigation in the Supreme Court of South Africa, Supreme Court of Appeals and Constitutional Court.

■ Arbitrations, mediation, investigations into mining incidents, FCPA (Foreign Corrupt Practices Act), anti-corruption investigations, defamation.

MARKET RECOGNITION

■ Chambers Global 2008 to 2016 maintained Pieter’s ranking Band 1 in Dispute Resolution from 2011. Chambers Global 2015 notes Pieter Conradie “is a very seasoned litigator and arbitrator”. Clients appreciate his commercial approach and the fact that he “gives tailor-made solutions to complex legal matters”.

■ The Legal 500 EMEA series 2010 to 2011 ranks Pieter in Tier 1 for Dispute Resolution. In 2012 to 2016 Pieter is named as one of the recommended lawyers in Dispute Resolution.

■ Practical Law CompanyPLC Which Lawyer? 2008 to 2011 endorsed Pieter in Dispute Resolution as a “general litigator and arbitration practitioner with an international remit, with particular focus on product liability and telecoms”.

■ Who’s Who Legal – The International Who’s Who of Business Lawyers 2007–2014 and The International Who’s Who of Commercial Litigation and Product Liability Defence Lawyers 2007–2016 selected Pieter Conradie as being among 336 of the world’s leading Litigation and Product Liability Defence lawyers. Who’s Who Legal – Litigation 2016 also identified Pieter as an expert.

■ Expert Guides: Guide to the World’s Leading Lawyers 2008 to 2011 selected Pieter as a pre-eminent practitioner in the fields of Litigation, Product Liability and Emerging Markets.

■ Best Lawyers International South Africa (2008–2017) listed Pieter as a ‘best lawyer’ in Arbitration and Mediation as well as in Litigation. Pieter was also named Arbitration and Mediation “Lawyer of the Year” 2017.

Anja Hofmeyr is a Director of our Dispute Resolution practice.

CAREER

Anja began her career with Hofmeyr (now Cliffe Dekker Hofmeyr) in 2002. In 2007 she became a director. Anja specialises in commercial litigation, telecommunications, applications, forensic and regulatory matters.

EXPERIENCE

■ Extensive experience in commercial litigation in the telecommunications, energy, chemical, media and tobacco industries.

■ Extensive knowledge, including training in the USA regarding defending class action matters.

■ Arbitrations, mediation, investigations and representing clients at mining and fatality enquiries.

■ Conducted national and international FCPA (Foreign Corrupt Practices Act) and anti-corruption investigations and advised in relation thereto.

■ Advised major telecommunications companies on various aspects of regulatory compliance in respect of their business, agreements and licencing issues, as well as regulatory issues in certain African countries.

■ Involved in international actions launched in the USA.

MARKET RECOGNITION

■ The Legal 500 EMEA Series 2015 lists Anja Hofmeyr as a recommended individual in Dispute Resolution.

PUBLICATIONS

■ The International Comparative Legal Guide to: Class & Group Actions 2016, 8th edition.

■ International Comparative Legal Guide to Class & Group Actions 2017.


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