Recently two matters were published in the media in which Fluxmans were the attorneys of record. In both matters we ensured that our clients’ rights were enforced and protected and in both matters we were victorious.
We have, at a very high level, summarised these matters and the results evidence our commitment to our clients’ matters, our dedication to achieving the best outcome for our clients and the strength of our attorneys. These matters are the following:
First case: Justice served - Employee's R100 000 Extortion Plan Against McDonald’s Foiled
An extortion plot by an employee of McDonald’s, the multinational fast-food chain, was successfully thwarted by McDonald’s after the employee threatened to tarnish the company’s reputation by releasing a video in which he is seen spitting on an ice cream cup. Clement Seothaeng threatened to release the video if he was not paid R100 000 to McDonald's.
We advised and assisted McDonald’s through the criminal process in the Regional Magistrate’s Court pursuant to McDonald’s filing criminal and malicious injury to property charges against Seothaeng. Seothaeng was convicted and sentenced to 10 years imprisonment for extortion and five years’ imprisonment for malicious injury to property. On appeal the Court held that two years of the five year period of imprisonment in relation to the malicious injury to property conviction is to run concurrently with the sentence imposed in respect of the extortion conviction. The practical effect of the appeal is that Seothaeng will serve 13 years as opposed to 15 years.
The judges noted that Seothaeng’s conduct had the potential to affect McDonald’s brand which is worth millions and that the employee enjoyed a trust relationship with McDonald’s. However, by attempting to extort R100,000, he “broke the trust which must be viewed in a serious light”.
Second case: Fluxmans Attorneys and RS Advisors Relieve Phumelela’s Gaming's Financial Woes
In this matter Fluxmans represented John Evans, the business rescue practitioner of Phumelela, in setting aside the Provincial Government’s decision to amend Regulation 276 of the Gauteng Gambling Regulation. In layman’s terms, when the government handed over the Horse Racing Industry to private enterprise in 1994 and to assist private enterprise (Phumelela in this instance) in the funding of horse racing events, a regulation was passed pursuant to which bookies were obliged to pay 6% of their clients’ winnings as follows:
3% to the Gauteng Gambling Board
3% to Phumelela
In 2020 by virtue of this regulation Phumelela’s 3% was taken away and the Gauteng Gambling Board received the full 6%.
The court per Wilson J. set this aside, declared the amending regulation, inter alia, unconstitutional and directed that the Gambling Board pay to Phumelela all the levies it should have paid since it cancelled it to date that Phumelela sold its licence to 4Racing, i.e. from April 2019 to December 2021.
The Gambling Board also directed that from January 2022 onwards this 3% levy is to be paid to 4Racing.
This was a great victory for the horse racing industry overall in Gauteng.
