City of Tshwane Metropolitan Municipality and Another v Moipone Fleet (Pty) Ltd

The City of Tshwane Metropolitan Municipality concluded a Public Private Partnership Agreement (PPA) with Moipone Fleet (Pty) Ltd in March 2016 for the leasing and maintenance of Category A fleet vehicles. A dispute arose when the City refused to accept certain vehicles and instead procured vehicles elsewhere. In March 2017, Davis AJ granted an interim order directing the City to comply with its obligations under the PPA and interdicting it from appointing another service provider pending determination of the agreement’s validity. In 2018, Moipone Fleet alleged that the City breached this order by purchasing 103 vehicles from third parties, relying on the exclusivity clause (clause 39) of the PPA. Mokose AJ held the City (and initially the City Manager) in contempt of court and granted a further interdict. The City appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The order of the High Court was set aside and substituted with an order dismissing the contempt application with costs, including the costs of two counsel.

The case clarifies the strict requirements for contempt of court in South African law, emphasising that contempt cannot be founded on conduct falling outside the precise scope of a court order. It also affirms a contextual approach to contractual interpretation in public procurement agreements and delineates the limits of exclusivity clauses in PPP arrangements.