In a significant legal triumph, Neumann van Rooyen Attorneys have successfully defeated Matjhabeng Local Municipality (the Municipality) in an attempted breach of their legally binding settlement agreement with farmers in the district.

The matter, which came before the High Court of South Africa, Free State Division (Case No. 4194/2022), saw the Municipality seeking to renege on a settlement agreement it had lawfully concluded in 2021 with Mr. J.H. van den Heever, the respondent in the matter, concerning a historic property rate dispute. Similar agreements were entered into with 58 farming entities and other farmers with similar disputes. Despite having received millions in settlement payments, the Municipality decided to reversed course and brought a "self-review" application in a bid to invalidate the agreements and disregard its own commitments.

The Court emphatically rejected the Municipality’s attempt, finding that the settlement agreement did not constitute an unlawful rebate as alleged by the Municipality. The judgment criticized the Municipality for its delayed and disingenuous litigation strategy, noting that it had accepted settlement funds without objection, only to initiate legal proceedings more than a year later – and only after the respondent sought to enforce the agreement in court.

The Court found that the Municipality’s conduct prejudiced the administration of justice and amounted to an abuse of legal process.

In a resounding endorsement of the rule of law and contractual integrity, the Court dismissed the Municipality’s application with punitive costs on an attorney-and-client scale, including the costs of two counsel.

“This victory is a testament to our commitment to justice, fairness, and upholding the principle that contracts must be honoured,” said Dries Knoetze, partner at Neumann van Rooyen Attorneys. “When a public body attempts to walk away from its own agreements without lawful basis, it undermines trust in public administration. We were proud to stand up for our client and the broader farming community affected by this case.”

The judgment (Matjhabeng Local Municipality v Van der Heever [2025] ZAFSHC 218) affirms that municipalities cannot retroactively repudiate agreements they lawfully enter into and must act in accordance with their own policies and the Constitution.

For legal representation that delivers accountability, Neumann van Rooyen Attorneys continues to serve as a trusted name in upholding justice across the Free State and beyond.