Ethekwini loses points in property rates court battle

Ethekwini municipality has again been forced to eat humble pie in a legal battle launched by a leading advocate over the municipal valuation of his home.

Advocate Julian King SC went to court at the end of last year, securing an interdict against the municipality to stop it from disconnecting his electricity pending the resolution of a dispute in the R1.8 million valuation of his Gillitts property.

Eight months on, King has accused the city of reneging on a deal which could have resolved the issue finally, and threatened to get a contempt-of- court order against the municipal official responsible "who I will assume to be municipal manager Michael Sutcliffe".

This month, when King took the matter back to the Durban High Court, the city backed off and, in an order taken by consent, agreed to pay for a private valuation of King's property.

Not all details of the agreement were made an order of court and, it is believed, the city has agreed privately to pick up King's legal costs so far.

King's main gripe was with the city's "pay now, fight later" rates policy - ratepayers being forced to pay rates on valuations which they could not appeal against because at the time no appeal board had been set up.

At the time, he was one of 5 000 ratepayers who remained aggrieved at the high valuations of their properties - and who were threatened with electricity disconnections should they not pay their full rates bills.

King said this was unconstitutional and unlawful.

He also argued that he had requested reasons for the valuation of his property but had never received these.

The city consented to an interim interdict but no further details of the settlement were disclosed.

In his most recent papers lodged with the court, King said that the deal was that the city would provide proper written reasons by January this year.

After this, the city valuer would meet at his home with a private valuer to determine the value of the property as at July 2007.

The cost of hiring a private valuer would be borne by the city which would be required to deposit money in advance in King's attorneys trust account.

Should the two experts agree on a valuation, it would be binding on both parties. Should they not, then the matter would go back to court.

King said the municipality "failed to keep its word" - did not provide reasons or money for the private valuation.

On top of this, it "disobeyed court orders" by attempting to disconnect his electricity three times.

In the meantime, King said, he went ahead and hired a valuer who put a price of R1.45m on his property.

A report was sent to the municipality for it to either accept or reject, but no response was ever received.

And then in March this year, a representative of eValuations (the company contracted by the city) arrived at his property unannounced saying that he wanted to look at the swimming pool.

King's pool was built after July, 2007 - but he smelt a rat, believing the municipality was trying to invoke a provision of the rates act which allows for a revaluation of property if there has been a "substantial increase in market value".

His pool, he said, cost R60 000 and could not by any stretch of the imagination reflect a "substantial increase".

"It is difficult not to conclude that the municipality is acting in bad faith... it has not performed any of its obligations and is now trying to circumvent the agreement," said King.

The application has been adjourned indefinitely and the interdict remains in place.

The Mercury

Posted at 11:09AM Jun 23, 2010 by Editor in Cities and Towns  |  Comments[4]