A mining entity has launched an urgent court application to interdict Vodacom from paying “Please Call Me” inventor Nkosana Makate hundreds of millions in settlement for their 18-year-old intellectual property dispute over the cellphone service.
Sunday World can exclusively reveal that Black Rock Mining (BRM) filed papers in the Johannesburg High Court on Tuesday to proscribe Vodacom from remitting to Makate, cited as the first respondent, payment of millions of rands until their lawsuit against him is finalised in court.
In the papers, which we have seen, BRM’s former director, Errol Elsdon, wants Vodacom, cited as the third respondent, to rather pay 40% of the funds into the account of Makate’s lawyers, Stemela and Lubbe Attorneys, who are cited as the second respondent in the suit.
“Pending final determination of Part B of this application, the third respondent is interdicted and restrained from making payment in respect of any award/settlement concluded between the first respondent and the third respondent pursuant to the so-called ‘Please Call Me’ litigation into any bank account other than the trust bank account of the second respondent,” read the papers.
They want an injunction that will bar the lawyers from transferring the funds into Makate’s account.
“The second respondent is interdicted and restrained from paying out 40% of the proceeds it holds in trust.
“The second respondent shall provide to the applicant a full and transparent disclosure of the settlement quantum, terms, conditions, payment timelines and the account to which payment is to be made. alternatively was made,” read the papers.
Written funding agreement
BRM said it will make an application for the matter to be heard in the normal court on December 2, 2025, or soon thereafter, and until then Vodacom should not pay a cent to Makate or anyone.
“Pending final determination of an action to be instituted by the applicant within 30 days of the date of this order, the third respondent is interdicted and restrained from making payment in respect of any award/settlement concluded between the first respondent and the third respondent pursuant to the so-called ‘Please Call Me’ litigation into any bank account other than the trust bank account of the second respondent,” read the papers.
In his founding affidavit, Eldson said he was introduced to Makate in November 2011 by the late Christian Schoeman, an erstwhile advocate of the high court.
“Mr Schoeman informed me that Mr Makate was in need of financial support for his litigation against Vodacom, which had been dragging since 2008. I informed Mr Schoeman that I would be interested in putting together funding for the litigation.
“On November 7, 2011, in Pretoria, Mr Schoeman, acting for a company to be formed, and Mr Makate, representing himself, concluded a written funding agreement for the company to fund his legal costs.
“Where the matter is settled by negotiation and agreement, neither Mr Makate nor the attorneys would be entitled to effect settlement without the written consent and approval of the company, unless the amount payable in terms of such settlement agreement exceeded R650 000 000.00,” read the papers.
Money to be paid in Stemela’s account
He said they agreed that upon conclusion of the matter, whatever award is made and Makate recovers from Vodacom, it would be paid to Stemela & Lubbe’s trust account.
“Stemela & Lubbe would be instructed to divide the recovered amount in such a manner that Mr Makate would receive 60% thereof, and the company would receive 40%,” read the papers.
He said he raised R500 000 after being told that the litigation costs would be approximately R750 000. “This amount was paid to Ms Lubbe in respect of Mr Makate’s fees,” read the papers.
In July 2013, he said, Lubbe advised him they needed R500 000 more for the costs, and he used BRM to raise it.
“On or about July, 18, 2013, Mr Schoeman, therefore, appointed Black Rock as the nominated company in terms of the funding agreement.
“I raised £250,000.00 [approximately R3 750 000.00 at the time] from a London investor, the Global Distressed Alpha Fund Ill, represented by its agent, Simba Capital VIll Särl.
“In total, an amount of R4 390 000.00 was raised and applied to fund the
litigation.
“Of this, R2 400 000.00 was paid to Stemela & Lubbe in respect of fees disbursements, with the balance applied to counsel, expert witnesses, and litigation expenses,” read the papers.
Disputes over funding
He said there were disputes over funding, but they were resolved through the arbitration process.
“During these arbitration proceedings Mr Makate himself testified that Black Rock was in fact the validly nominated company in terms of the funding.
“Mr Schoeman and Ms Lubbe from Stemela & Lubbe, who were at some stage during this saga involved in a romantic relationship, were the main protagonists behind these attempts.
“Mr Schoeman ultimately instructed a firm of attorneys, Hahn & Hahn, to ostensibly act on behalf of Mr Makate and to purportedly terminate the funding agreement.
“The highwater mark of these attempts occurred on January 12, 2015, when Hahn & Hahn wrote correspondence to attorneys Wertheim Becker Incorporated [acting for Raining Men Trade] purporting to terminate the agreement.
“There was therefore never a valid termination addressed to Black Rock,” read the papers.
