Vodacom, in addition to raising prices this week, is also heading back to court. The ‘Please Call Me’ matter involving Kenneth Nkosana Makate, which saw the Supreme Court of Appeal (SCA) hand down a weighty judgment earlier this month, isn’t over.
The mobile service provider and technology giant has applied for leave to appeal the Makate judgment in South Africa’s Constitutional Court, saying it believes “…the judgment and order are fundamentally flawed.”
Vodacom’s reasoning
Vodacom said, “It is apparent from the dissenting judgment of the SCA that the majority judgment overlooked or ignored many of the issues between the parties and their evidence and submissions relating to those issues.” The company outlined its objections to the SCA’s judgment starting with the claim that the judgment “…deprives Vodacom of its right to a fair trial under section 34 of the Constitution.”
Vodacom, in a statement, said that the court decided on matters not brought before the court by either representative party. The SCA also only considered evidence from Makate when rendering its judgment, “…ignoring swathes of evidence in this regard presented by Vodacom contesting Mr Makate’s version.” The most damning objection the company has to the 6 February SCA order is that they “…are unintelligible, incomprehensible, and vague rendering them incapable of implementation and enforcement.”
The company outlined other objections to the judgment that were less directed at the Supreme Court of Appeal, saying that carrying out the payment of billions of rands to Kenneth Nkosana Makate will negatively impact the company, South Africa’s economy, and the country as a whole. All of which boils down to ‘We’re going back to court, thanks’ but the company’s statement also says it remains open to negotiating a “fair and reasonable amount as compensation for Mr. Makate’s idea that led to the development of the PCM product.” With billions on the line, that may be little more than legal optimism, given that previous negotiations have fallen through.
1 Comment
Vodacom has lost at each court appearance. How do they expect this one to go, except to reduce the quantum the SCA awarded – R29 billion plus – to what they deem reasonable, around R50 million.
This case has gone on too long – 15 years – and the courts are at fault, the C Court especially for not, at the last appearance there, deciding once and for all the award, leaving it to Vodacom’s CEO(!) to decide. This was abrogating their (and lower courts too) responsibility. The same thing is happening with the Zuma case.
Litigants approach the courts to arbitrate if consensus cannot be reached, not to be told to work it out for themselves. This is another example of the dysfunction of SA society, particularly if parties have deep pockets to vexatiously abuse the process as Vodacom is doing.
Btw hedge fund managers might already be taking bets on Vodacom and its parent Vodafone share price (shorting it) based on the likely outcome. Even if the R29 billion is reduced (can’t see CCourt setting aside the SCA’s ruling when it already found for Makate), Vodacom having a very large amount – say, R500 million, R1 billion, never mind R29bn – as a contingent liability on their balance sheet would be a first for SA and many other places. Be interested to see what Vodacom and Vodafone do. First, Vodafone should fire Vodacom’s board and executive, CEO Joosub first. Next, structure the company. Heavens, if a sizeable amount is confirmed, after that even Cell C might look good.