JDJ Properties CC and Another v Umngeni Local Municipality and Another

The Umngeni Local Municipality sold erf 848 in Howick to Triumph Brokers (Pty) Ltd for redevelopment as a commercial property. Triumph planned to build a shopping complex and applied for approval of building plans under the National Building Regulations and Building Standards Act 103 of 1977, together with relaxations of side-space and parking requirements under the Howick Town Planning Scheme. The municipality approved the relaxations and the building plans. JDJ Properties CC, the owner of properties across the road, and Double Diamond CC, a nearby retail lessee, opposed the development, alleging favourable treatment by the municipality and adverse impacts such as increased traffic congestion and misuse of their parking. They participated in municipal processes but, after approval, launched review proceedings to set aside the decisions. The High Court dismissed the application, holding that the approval was not administrative action and that internal remedies had not been exhausted. The appellants appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The High Court’s order was set aside and replaced with an order setting aside (a) the decision of the municipality’s general manager relaxing the side-space requirement in respect of erf 848, Howick, and (b) the municipal council’s decision of 30 June 2010 approving the building plans. The respondents were ordered jointly and severally to pay the appellants’ costs, including the costs of the interim relief application.

The case reaffirms that municipal decisions approving building plans are administrative action under PAJA and are subject to judicial review. It clarifies that nearby landowners and lessees have standing to challenge unlawful planning decisions affecting neighbourhood amenity, and that adverse effect under PAJA must be interpreted purposively rather than narrowly. The judgment is an important authority on the relationship between PAJA, constitutional legality review, standing under s 38 of the Constitution, and local government planning decisions.