Recently, a hospitality company won a class action lawsuit against Santam.
The case was judged in litigant Ma-Afrika’s favour but many commercial class-action suits, such as the case of Ma-Afrika, never make it to court due to a lack of funds.
Class actions in south africa are a relatively novel phenomenon.
In the absence of specific legislation prescribing the ambit and procedure for class actions, the High Courts have developed the law pertaining to the certification of class actions.
The first class action litigation brought in South Africa rested firmly on constitutional grounds, in the matter of Permanent Secretary, Department of Welfare, Eastern Cape v Ngxuza 2001 (4) SA 1184 (SCA).
Since these 2013 cases, only a few applications to certify class actions have been launched each year.
Also The courts’ approach to class actions has shifted over time.
Initially, courts applied relatively strict requirements in respect of standing and class definitions and were reluctant to permit class actions that were not aimed at vindication of rights in the Bill of Rights.
More recent certification applications, where litigants have been poor or indigent persons, have tended towards a more permissive approach to certification.