Poti and Others v Minister of Department of Rural Development and Land Reform and Others

The five Applicants, descendants of black families forcibly removed from the farm Veeplaas in the 1960s under racially discriminatory laws, lodged restitution claims for the loss of their tenancy rights. The Regional Land Claims Commissioner (RLCC) accepted the claims as valid and, in 2011, unilaterally decided to award each family a blanket amount of R36 000 as financial compensation, based on the value of an RDP housing subsidy and recommendations from Vadec Consultants. Settlement agreements reflecting this amount were concluded, although some Applicants were only partially paid. The Applicants challenged the RLCC’s decision and the settlement agreements, alleging that the compensation was irrational, unreasonable, and determined without considering relevant factors such as individual circumstances and the history of dispossession.

The point in limine was dismissed; the PAJA 180-day period was extended to 10 May 2022; the decision to award R36 000 compensation and the related settlement agreements were reviewed and set aside; the RLCC was ordered to refer the matter to the Land Court under section 14(3A) and (4) of the Restitution of Land Rights Act; and the Respondents were ordered to pay costs on an attorney-and-client scale, including the costs of two counsel.

The case affirms that compensation decisions by land claims authorities constitute administrative action subject to strict review under PAJA. It reinforces that blanket or formulaic compensation awards in restitution matters are unlawful if they ignore individual circumstances and rely on irrelevant considerations. The judgment clarifies the distinct roles of the RLCC and the Land Court, emphasising that factors such as hardship, loss, and solatium are for judicial determination under section 33 of the Restitution Act.