Hermanus traders fight for renewal of leases

THE Hermanus Market Traders Co-operative (HMTC) is taking the Overstrand municipality to the Supreme Court of Appeal in a bid to overturn a Western Cape High Court decision that it had no legitimate expectation to have the trading leases of its members renewed.

The HMTC turned to the courts after it was served an eviction order following the termination of its trading leases at Red Square Market on February 23, 2015.

Last year, the municipality awarded a three-year tender for the leasing and managing of the market stalls to Arrie de Klerk, who then pushed the monthly rentals up to R4 000. Previously, the traders paid between R1 000 and R1 600 a month for a stall.

In his ruling in September, Judge Robert Henney found the traders had signed an agreement with a binding clause stating that there was no legal expectation that the lease would be renewed. By agreeing to this clause, the traders had put themselves in the hands of the municipality.

A week after Judge Henney’s ruling, an appeal by the traders was dismissed. They then petitioned the decision and have now taken their case to the Supreme Court of Appeal.

Overstrand Municipality manager Coenie Groenewald said the high court found that the municipality had followed a competitive process which was rational, proper and justified when it leased out formal businesses.

Groenewald said the traders had been notified years in advance of what could happen when the leases expired.

“There is therefore no question that the municipality had followed a lawful process to go out to public tender once the traders’ contracts had expired. Some of the traders had, in fact, signed sub-leases with the successful tenderer,” he said.

But Colleen Thonisen, spokesperson for the HMTC, vowed the traders would not rest until the municipality had renewed their leases.