The appellants were former directors of Stilfontein Gold Mining Company Limited (SGM) until 17 June 2005. The Regional Director of the Department of Water Affairs and Forestry issued directives from April 2005 to several mining companies in the KOSH area (Klerksdorp, Orkney, Stilfontein and Hartebeesfontein), including SGM, regarding the pumping of water from mine shafts to prevent environmental pollution. When SGM failed to comply, the Department obtained a court order from Goldstein J on 18 May 2005 compelling SGM to comply with the directives. SGM's attorneys responded on 9 June 2005 that it could not comply with the order as the mine had closed in 1992, SGM was not financially viable, and was considering liquidation. On 14 June 2005, the Department brought an urgent application for contempt of court against SGM and its directors. The directors resigned on 17 June 2005 before the contempt hearing. Hussain J found SGM and the directors in contempt on 15 May 2006, imposing fines of R15,000 each or six months imprisonment. The directors (one having died after the conviction) appealed.
The appeal was upheld with costs, including those of two counsel. The order of the court below was altered to read: 'The application is dismissed with costs.' The conviction for contempt of court and the sentences imposed on the directors were set aside.
An order that a person is in contempt of court, which carries criminal sanctions, should be made only where the court order allegedly flouted is clear and capable of enforcement. Where a court order is unclear or incapable of implementation, a court cannot find that a party has deliberately failed to comply with the order. In this case, the directives that formed the basis of the court order were unintelligible in several material respects (failing to specify amounts, recipients, dates for payment, and requiring performance of acts beyond the party's control) and to some extent incapable of implementation. Therefore, there was no wilful failure to comply with the court order sufficient to ground a finding of contempt.
The Court noted but did not decide the legal distinction between enforcement of orders sounding in money (ad pecuniam solvendam), which are typically enforced through writs of execution, and orders requiring performance of an act (ad factum praestandum), which may be enforced through contempt proceedings. The Court found this distinction not germane because of the fundamental problem that the order was unclear and incapable of enforcement. The Court also observed that while the directors' conduct in resigning may have been irresponsible, irresponsible conduct is not necessarily contemptible, and in this case was not contemptuous. The Court did not need to determine whether the directors deliberately or recklessly flouted the order given its conclusion on the clarity and enforceability of the order itself.
This case establishes important principles regarding the enforcement of court orders through contempt proceedings in South African law. It reinforces that criminal sanctions for contempt should only be imposed where court orders are clear, precise and capable of enforcement. The judgment protects individuals from being convicted of contempt when the underlying order is vague or impossible to comply with. The case is particularly significant in the context of environmental and administrative law directives, requiring regulatory authorities to issue clear, specific and enforceable directives before seeking contempt orders for non-compliance. It also addresses the distinction between orders for payment of money versus orders requiring specific performance, though the Court found it unnecessary to fully resolve this issue given the fundamental lack of clarity in the directives.