Registered users can save articles to their personal articles list. Login here or sign up here

Please Call Me inventor back in court, this time to face litigation funders

Makate’s former backers want 50% of his potential compensation from Vodacom.

Nkosana Makate’s drawn-out efforts to be financially compensated for inventing the Please Call Me concept have led to another dramatic and nasty clash with lawyers.

This time, Makate is not fighting telecommunications giant Vodacom, to whom he gave the Please Call Me idea in 2001 when he was a trainee accountant at the firm, but the lawyers and investors who funded his litigation against the company.

The high court in Pretoria will hear an urgent application on Tuesday launched by Thomas Samons, business rescue practitioner of Raining Men Trade, the former funder of Makate’s lawsuit against Vodacom.

Raining Men Trade wants a 50% share of any compensation Makate might be awarded by Vodacom on the basis that its director, Chris Schoeman, entered into a written agreement with Makate in November 2011 to bankroll his litigation costs.

Two reasons

Makate has rejected this, saying the funding agreement was cancelled in January 2014 after his Please Call Me case initially failed at the high court and discovery that his signature on the agreement was allegedly forged by Schoeman.

After Makate successfully appealed and won his case against Vodacom at the Constitutional Court in 2016, Raining Men Trade and Schoeman held that the agreement held. A legal dispute ensued on the validity of the agreement resulting in a high court judgment that referred Makate’s legal team, Schoeman and Raining Men Trade to an arbitration process presided over by advocate Michael Mabena.

On Thursday, Samons filed papers for an urgent interdict to block Mabena from starting arbitration proceedings that are set for April 10 and 12.

Accusations

On a cursory view, Samons accused Mabena of not being procedurally fair since he was appointed as the business rescue practitioner in January 2019. The dates that Mabena set, said Samons, clashed with the availability of his attorney Frank Cohen and have not afforded him sufficient time to prepare for arbitration proceedings. Samons said his lawyer has not been advised on the rules that Mabena intends to run arbitration proceedings under and that the latter “fobbed” off requests for clarity.

“Our attorney [Cohen] further noted that we have previously experienced the problem where the arbitrator [Mabena] simply randomly chooses dates for hearings and meetings … that the effective two days’ notice of the meeting and in the circumstances, did not comply with the provisions and import of section 15 (1) of the Arbitration Act … that it would benefit all parties if the arbitrator would communicate with the parties furnishing them with a series of dates,” Samons said in court papers.

Impartiality

He also wants the appointment of Mabena as an arbitrator set aside because “he has not or will not bring an impartial mind” on arbitration proceedings.

The latest court application adds another twist to what is shaping up to be a protracted battle for Makate to be compensated billions of rands, according to his estimates, for the Please Call Me service. Makate might be approaching courts again in a separate matter because he is unhappy with the undisclosed amount that Vodacom offered him.

Read: Please Call Me inventor: ‘I haven’t agreed on anything with Vodacom’

In a series of emails attached to Samons’s urgent application, Mabena said as an arbitrator he has the discretion and power to determine the time, date and place of arbitration. Mabena also said he communicated dates for arbitration hearings as far back as November 2018 and would thus be reneging on his duties if hearings are delayed and postponed.

Makate responds

Makate, who is opposing the urgency of the application, has hit back, saying Raining Men Trade and Chris Schoeman have been trying to prevent the arbitration from being finalised since 2016 by lodging “one spurious application after the other just before the arbitration has to commence”.

He said Schoeman withdrew his claim for a share of the compensation on November 15, 2018 – days before the arbitration was due to commence in December 2018. This left Raining Men Trade as the only claimant in the arbitration.

Makate said Samons and Raining Men had known about the set dates of the arbitration (April 10 and 12) “at all times” in the period from February 25 to March 15, 2019. However, they didn’t raise objections to the arbitration dates, which also included a second option for April 24 and 26.

“What is extremely important to note [is] that neither the business rescue practitioner nor his attorney has until the service of this application on Wednesday evening the 3rd of April 2019 indicated that the dates for the arbitration are not suitable,” Makate said in his court papers submitted on Monday.

Makate is opposing the removal of Mabena, saying Schoeman and Raining Men Trade consented to his appointment as an arbitrator in 2016. Thus both, including Samons as a business rescue practitioner, are bound by the consent to appoint Mabena.

Schoeman said Makate’s decision to reject Vodacom’s offer for compensation and not pay Raining Men Trade resulted in the company being placed under business rescue.

“The company agreed with investors to put more than R15 million into Makate’s case. They now want their money back,” he told Moneyweb.

However, Makate said Raining Men Trade’s rescue proceedings are a “sham” as it is a shelf company without “any business whatsoever” but is used as a vehicle “to be allegedly nominated for the purposes of the funding agreement [to channel Makate’s compensation money].”

The high court dismissed the urgency of the case with costs on Tuesday, paving the way for arbitration process to continue between all parties.

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

AUTHOR PROFILE

COMMENTS   14

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up for FREE

Somehow, this reminds me of the Danny DeVito-character in Ruthless People:

Danny married a woman for the money she was going to inherit, as her father was about to die.

They pulled the plug on his father-in-law, … … and he lived for another 15 years ….

Danny: “I could not wait … I went out and made my own millions!”

(No insult intended in this story)

You need to honor agreements Makate. Pay back the money.

At first, I felt sorry for Makate – I thought V’com was being unduly difficult with him.

After V’com did a deal with him – I though this was levelling the playing fields.

He could not fund the litigation and got help (money) from an outside party.
Now, he is trying some fancy moves to exclude the funder – and keep more of the award for himself – – – – not on….honour the agreement and even if lawyers tell you there is a way out, settle and pay the funders.

Lawyers are making a meal of this – – – – I hope they are working on a contingency basis.
If not, Makate may end up with substantially less in his pocket once the lawyers had their share.

Do the honourable think, Makate!!

Let me guess – he sent them a please call me and they….

Being a salaried person or a small-business hardworking owner doing a nice enough job or trade and getting by and not having too much riches to care for, has its moments. The millions are tempting, but make sure once you have it, you are still a human with a life and some dignity.

A flustercuck of note. I have long since lost any sympathy for any of the parties involved in this circus.

He did not invent the Please call me. So he might get what he justly deserves, nothing.

Greedy thugs attacking each other on the back of a plagerised idea?…can’t beat it with a stick!

Money the route of all evil. He was offered a size able chunk of cash but wanted more. may he get nothing for being greedy.

Load All 14 Comments
End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
Insider GOLD
ONLY R63pm

Moneyweb's premium subscription is a membership service which will give you access to a number of tools to take charge of your investments.
Or choose a yearly subscription at R630pa - SAVE R126

Get instant access to all our tools and content. Monthly subscription can be suspended at any time.

Podcasts

SHOP NEWSLETTERS TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company:
server: 172.17.0.2