The case concerned the allocation of commercial fishing rights in the hake longline sector for the 2002–2005 fishing seasons under s 18(1) of the Marine Living Resources Act 18 of 1998. The Minister delegated the power to allocate rights in this sector to the Deputy Director-General (DDG). Applications were streamed into two categories: existing ‘2001 rights holders’ and ‘potential new entrants’, with different weighting given to transformation criteria. Scenematic Fourteen (Pty) Ltd, a new entrant, was unsuccessful both in its original application and in an internal appeal under s 80 of the Act. It instituted review proceedings in the Cape High Court, which set aside the DDG’s refusal to grant it fishing rights. The Minister and DDG appealed to the Supreme Court of Appeal.