Home Talk Developments (Pty) Ltd v Ekurhuleni Metropolitan Municipality

The appellants were property development companies involved in developing various extensions of the Meyersdal Nature Estate in Ekurhuleni. Following township approval, they alleged that by late 2007 they had complied with all requirements for the issuance of section 82 certificates under the Town-Planning and Township Ordinance 15 of 1986, which were necessary for the transfer of erven. The Municipal Manager, Mr Flusk, delayed and refused to issue the certificates amid concerns arising from forensic investigations and legal opinions about the validity of prior land-swap approvals under the Municipal Finance Management Act. After litigation and settlement in 2009, the certificates were issued. The appellants thereafter sued the Municipality in delict for pure economic loss allegedly caused by the delay, contending that the Municipal Manager acted unlawfully, negligently, and mala fide.

The appeal was dismissed with costs, including the costs of two counsel.

The case is a leading authority confirming the limits of delictual liability for pure economic loss in the context of administrative action by municipalities. It reinforces the distinction between administrative unlawfulness and delictual wrongfulness, and underscores judicial reluctance to impose damages liability where statutory remedies suffice.