Court ruling reinforces importance of settlement processes

THE Gauteng High Court recently handed down another judgment that will impact property owners, Homeowner Association trustees, and community-scheme managers, with the overall message that settlement processes must be respected.

- ZELDA VENTER

Johlene Wasserman, Director of Community Schemes and Compliance at VDM Incorporated, this week welcomed the court's confirmation that a litigant cannot accept the benefits of a settlement offer while rejecting the conditions attached to it.

She said the judgment offers important clarity for community schemes.

"It's a textbook example of why settlement mechanisms exist, and what happens when they are strategically misused". The dispute began when homeowner Jennifer Koster clashed with the Centurion Homeowners Association over her revised building plans. When the HOA initially refused to approve her plans, Koster launched a High Court review. But once litigation was underway, the HOA changed course and approved the plans and delivered them to Koster under a formal Rule 34 settlement offer, marked "without prejudice" and expressly excluding any contribution to her legal costs.