City of Cape Town v Reader and Others

The first and second respondents owned properties adjoining that of the third respondent in Sea Point, Cape Town. The area was zoned for single dwelling units. In 2003 the City of Cape Town approved the third respondent’s building plans, under delegated authority in terms of the National Building Regulations and Building Standards Act 103 of 1977, allowing her to convert her house from a single-storey to a double-storey dwelling. The neighbours objected after construction commenced, alleging that the development would obstruct sea views, invade privacy, and reduce the value of their properties. They instituted review proceedings in the Cape High Court under PAJA, seeking to set aside the approval and to compel demolition. The City raised a preliminary objection that the applicants had failed to exhaust an internal remedy, namely an appeal under s 62 of the Local Government: Municipal Systems Act 32 of 2000. The High Court upheld this objection, but the Full Court reversed that decision, holding that s 62 did not provide a viable internal remedy for objecting neighbours. The City appealed to the Supreme Court of Appeal.

The appeal was dismissed with costs, including the costs of two counsel.

The case clarifies the scope of internal remedies under s 62 of the Municipal Systems Act and their interaction with s 7(2) of PAJA. It establishes that objecting neighbours to approved building plans are not required to exhaust an internal appeal under s 62 before seeking judicial review. The decision is significant for municipal governance and administrative law, limiting the reach of internal appeal mechanisms and affirming access to courts for third parties affected by municipal planning decisions.