Large multinationals hate to be taken to court, this announcement was quite expected. For matters involving justice and human dignity, they’d rather settle out of court. The recent court outcome, where the court imposed a R13m legal bill, may have had something to do with forcing the expensive Mr Nkosana Makate to sign.
This corporate strategy is quite simple and straightforward, if companies agree to go to court they “weaponise” legal processes to drain the complainant. In terms of this practice, a larger or wealthier entity uses the legal process itself to exhaust an opponent (often a less-resourced individual or small entity), This tactic is often referred to as litigation abuse or using scorched-earth litigation tactics.
The case of Mankayi v AngloGold Ashanti Ltd in 2011 is a good example to illustrate the point. Although, this case opened the door for thousands of mineworkers to pursue class-action lawsuits against mining companies, Mr Thembwkile Mankayi died before the case was settled out of court.
Mr Makate was lucky to see some “justice” while still alive. The undisclosed settlement, rumoured around R400m, is neither a win nor justice given that Mr Makate has been drained by over 17 years of litigation and stress. Imagine if he’d gotten the R400m, say 15 years ago, there may have been better things happening in tech innovation in South Africa.
Justice delayed is justice denied!
Instead of rejoicing, people should be concerned about two things. First, South Africa may not be the place that recognises talent and reward innovation. With over 62 % unemployment, there is a reason to be worried. Second, it is important to recognise that the law may not be about justice but a terrain for the rich. The Makate case illustrates this travesty.
A precedent has been set again: never try to taken on the Big Boys! Anyone who dares challenge big corporations must either face legal violence like Messrs Makate and Mankayi or deathly violence like the ex-Lonmin workers in Marikana.
Siy yi banga le economy!
Siyabonga Hadebe is a PhD candidate in international economic law and a labour market expert based in Geneva.
