Rooyendal (Pty) Ltd and Others v Minister of Land Affairs and Another

The plaintiffs, comprising various landowners, trustees and farming entities (36 plaintiffs in different capacities but 17 legal persons), sold farms in KwaZulu-Natal to the State pursuant to the settlement of two land restitution claims under the Restitution of Land Rights Act 22 of 1994. The State purchased the farms for over R90 million in terms of written deeds of sale concluded in 2005. After transfer, the first to seventh plaintiffs claimed payment of farming input costs (and, for the second and third plaintiffs, development costs) allegedly incurred during the 2004/2005 farming season. They alleged that these costs were payable in terms of oral agreements concluded with the Department of Rural Development and Land Reform, represented by the second defendant, the Regional Land Claims Commissioner. The defendants denied that any such oral agreements were concluded and contended that discussions about inputs related only to audits, post-transfer management possibilities, or surplus bulk inputs, and that the plaintiffs in fact harvested and profited from the crops.

The plaintiffs’ claims for payment of input and development costs based on alleged oral agreements were dismissed.

The case clarifies that discussions and negotiations during land restitution settlements do not, without clear consensus and authority, give rise to enforceable oral agreements, particularly against the State. It underscores the evidentiary burden on claimants alleging oral agreements in the context of complex restitution transactions and highlights the importance of written agreements and statutory compliance.