Stopforth Swanepoel & Brewis Incorporated v Royal Anthem Investments 129 (Pty) Ltd and Others

The respondents agreed to purchase immovable property from Royal Anthem Investments 129 (Pty) Ltd and paid a deposit and transfer duty into the trust account of the applicant attorneys, who acted as conveyancers. The funds were invested in an interest-bearing trust account in terms of section 78(2A) of the Attorneys Act. The sale fell through due to non-fulfilment of a condition, and the respondents demanded repayment. They instituted action against Royal and the attorneys, but later withdrew the claim against the attorneys. The High Court ordered Royal to repay the funds with interest. Royal appealed to the Supreme Court of Appeal. Although the attorneys were not parties to the appeal, the Supreme Court of Appeal varied the High Court’s order and ordered the attorneys to repay the capital sums and interest at the legal rate. The attorneys, not having been heard, applied to the Constitutional Court for leave to appeal.

Leave to appeal was granted. The appeal was upheld. The order of the Supreme Court of Appeal was set aside and replaced with an order directing Royal Anthem Investments 129 (Pty) Ltd, and not the attorneys, to repay the capital sums and interest to the respondents.

The case affirms the constitutional right to a fair public hearing and underscores that courts may not make adverse orders against non-parties without notice and an opportunity to be heard. It provides important protection for attorneys acting as conveyancers and trustees of client funds, clarifying that compliance with statutory trust account obligations does not justify the imposition of punitive financial liability. The decision reinforces procedural fairness and the audi alteram partem principle in appellate proceedings.