City of Johannesburg v Ad Outpost (Pty) Ltd

Ad Outpost (Pty) Ltd operated two advertising billboards (the Sandown and Kelvin View billboards) alongside major motorways in Johannesburg. Initial approvals granted in 2001 under the 1999 Advertising Signs and Hoardings By-laws lapsed in 2004. Despite continued use, the City of Johannesburg later required removal or reapplication. In March 2007 Ad Outpost applied for renewal under the 2001 by-laws. The City refused the applications and the City Manager dismissed internal appeals, relying on a purported 200m safety restriction that was not contained in the 2001 by-laws. Ad Outpost successfully reviewed these decisions in the South Gauteng High Court, which substituted its own decision granting permission for five years. By the time of the review and appeal, the applicable by-laws had changed multiple times, culminating in the 2009 Outdoor Advertising By-laws, which imposed an absolute prohibition on billboards within defined prohibited areas where the billboards were located.

The appeal succeeded. The High Court order granting permission for the billboards was set aside. The decisions of the City and City Manager refusing the applications were reviewed and set aside, but no order was made directing reconsideration of the applications. Ad Outpost was ordered to pay the costs in the High Court and on appeal, including the costs of two counsel.

The case clarifies the effect of setting aside invalid administrative decisions and confirms that such decisions are retrospectively void, rendering applications still pending for purposes of transitional statutory provisions. It affirms that applicants do not acquire vested rights merely because an application was lodged under repealed by-laws, and it reinforces limits on judicial substitution where a statutory regime leaves an administrator with no discretion.