Permanent Secretary, Department of Welfare, Eastern Cape Provincial Government and Another v Ngxuza and Others

Disability grant recipients in the Eastern Cape had their grants summarily cancelled or suspended by the provincial Department of Welfare without notice or procedural fairness, as part of an attempt to eliminate fraudulent claims. Three applicants successfully had their individual grants reinstated, but they also sought to litigate on behalf of tens of thousands of similarly affected beneficiaries through a constitutional class action under section 38(c) of the Constitution. The Eastern Cape High Court granted leave to institute a class action, ordered disclosure of affected beneficiaries’ details, and directed publication to allow class members to opt out. The provincial government appealed against the grant of leave and the disclosure order.

The appeal was dismissed with costs. The order granting leave to institute the class action, including the class definition, disclosure order, and publication requirements, was upheld.

This is a landmark South African case on constitutional class actions. It articulated, for the first time at appellate level, the essential requirements for a class action under section 38 of the Constitution and confirmed the courts’ inherent power to manage such proceedings. The case significantly advanced access to justice for poor and marginalised groups and established that procedural and jurisdictional technicalities should not undermine constitutional remedies.