The
law that underlies the legal principle of functus
officio
was
summarized in the case of Firestone
South Africa (Pty) Ltd v Genticuro 1977 (4) SA 298 (A)…,
as
follows:
“The
general principle, now well established in our law, is that once a
court has duly pronounced a final judgment or order, it has itself no
authority to correct, alter, or ...
The
law that underlies the legal principle of functus
officio
was
summarized in the case of Firestone
South Africa (Pty) Ltd v Genticuro 1977 (4) SA 298 (A)…,
as
follows:
“The
general principle, now well established in our law, is that once a
court has duly pronounced a final judgment or order, it has itself no
authority to correct, alter, or supplement it. The reason is that it
thereupon becomes functus
officio,
its jurisdiction in the case having been fully and finally exercised,
its authority over the subject matter has ceased.
See
West
Rand Estates Ltd v New Zealand Insurance Co Ltd 1926 AD 173 @ p176,
178,186-7 and 192; Estate Garlick v Commissioner of Inland Revenue
1934 AD 499 @ p502…,. There
are, however, a few exceptions to the rule which are mentioned in the
old authorities and have been authoritatively accepted by this
court…, provided the court is approached within a reasonable time
of its pronouncing the judgment or order, it may correct, alter or
supplement it in one or more of the following cases:
(i)
The
principal judgment or order may be supplemented in respect of
accessory or consequential matters, for example costs or interest on
the judgment debt which the court overlooked or inadvertently omitted
to grant…,.
(ii)
The court may clarify its judgment or order, if, on a proper
interpretation, the meaning thereof remains
obscure, ambiguous, or otherwise uncertain, so as to give effect to
its true intention, provided it does not thereby alter 'the sense
and substance' of the judgment or order…,.
(iii)
The court may correct a clerical, arithmetical or other error in its
judgment in order to give effect to its true intention…,.
(iv)
Where counsel has argued the merits and not the costs of a case…,
but the court makes an order granting costs…, it may thereafter
correct, supplement or alter the order…,.”
The
submission that none of these exceptions apply to the applicant was
accepted by the court, as well as reference that the principle of
finality in litigation (interest
reipublicae ut sit finis litium)
is a part of our law.
See
Matanhire
v
BP
Shell Marketing Services (Pvt) Ltd 2005 (1) ZLR 140 (SC)…,; Maheya
v
Independent Africa Church
2007
(2) ZLR 319 (SC)…,.
This
court also accepted as correct, the submission made on behalf of the
respondent, that the present application is not intended to
supplement, clarify, or correct the judgment of January 2008 - but to
alter its substance. The alterations are not incidental or
consequential corrections - but go to the very heart of the orders
made.
In
respect of towing charges and medical expenses already incurred, the
purpose of the application is to change the very basis of the
currency in which those special damages were incurred. In respect of
the three headings of general damages, the application intends to
change the basis on which those damages were sought, when those
damages were suffered in Zimbabwe, in the currency of payment then
prevailing.
It
is common cause that there was a considerable delay by the applicant
in bringing this application, the original judgment having been
handed down in January 2008 and the use of the United States dollar
having been authorized by January 2009. The appeal was heard in
October 2010 and the Supreme Court judgment handed down in February
2012. Nearly 15 years have passed since the accident in question and
four and half years since dollarization. No explanation was given by
the applicant for the inordinate delay in making this application.
Any application to correct or supplement an order, whether in terms
of the common law or under Rule 449 of the High
Court Rules 1971,
must be brought as soon as possible, or at the very least within a
reasonable period. See West
Rand
Estates Ltd
v
New
Zealand Insurance Co Ltd 1926 AD 173…,.
The
leading cases on currency nominalism in this court merit discussion.
In
Shava
v
Bergus Investments (Pvt) Ltd
2011
(2) ZLR 340 (HC),
a
full bench of this Court, through my brother MUTEMA J and CHIWESHE JP
concurring, held that a party cannot revalue a judgment debt for
purposes of execution. Citing Mukorera
v
Ocean
Breeze Engine and Cooling Systems
HH13-08…,
the court held it to be trite that the principle of currency
nominalism was part of the law of Zimbabwe. The court held that, to
allow a party to change the currency of the judgment was 'not only
incompetent for arbitrariness but offended against the time honored
principle of currency nominalism'. The court said the following…,:
“That
principle holds that a debt sounding in money has to be paid in terms
of its nominal value irrespective of any fluctuations in the
purchasing power of the currency.”
The
court also said…,:
“It
is beyond argument that the first respondent's debt sounded in
money and the judgment was given in March 2008 with the specific
directive that the values of whatever was damaged by the appellant
were to be as at the time of judgment. The values were in Zimbabwe
dollars and not in US dollars. The principle of currency nominalism
was therefore still applicable. It was accordingly idle for the first
respondent to revalorize its claim on execution. It
ought to have made a court application for the conversion of the
currency.”….,.
Counsel
for the respondent…, submitted that, before this court came to
above underlined conclusion, it ought to have examined, in greater
detail, the impact of the 'once and for all rule' and of the
submission that the court cannot 'convert' the currency on
application because it will be functus officio.
I
found this view persuasive.
It
was submitted, further, that reliance on Mukorera
v
Ocean
Breeze Engine and Cooling Systems
HH13-08
should
not have led the court to the conclusion that it came to, because, in
that case, the court was emphatic in its view that:
“…,
the distortions caused by inflation in the economy should not lead to
the wholesale distortion of legal principles that have withstood the
test of time in a bid to find legal solutions to a problem that is
not legal in nature and origin and may prove to be transient. I am
yet to be persuaded that revalorization is part of our law of debt
collection.”
In
conclusion, this court's opinion on the issue of currency
nominalism, in the circumstances of this case, is that, while on the
whole this court has inherent jurisdiction to ensure that the process
of execution is neither abused nor unfair, it does not have
jurisdiction to rewrite an order in the manner sought by the
applicant. I hold the considered view that this court cannot revalue
an order for the purpose of execution, let alone completely re-write
an order granted nearly seven years ago. Any such power would have to
be the consequence of legislation - which currently does not exist in
Zimbabwe.
Under
the common law, and as a protection against loss of value of a
judgment, where a litigant has suffered a loss that can properly be
expressed in foreign currency the court can enter judgment in foreign
currency, but payment must be made in local currency converted as at
the date of payment. See Makwindi
Oil Procurement (Pvt) Ltd
v
National
Oil Company of
Zimbabwe
1988
(2) ZLR 482 (SC)…,
where
the court said that:
“Fluctuations
in world currencies justify the acceptance of the rule not only that
a court order may be expressed in units of foreign currency, but also
that the amount of the foreign currency is to be converted into local
currency at the date when leave is given to enforce the judgment.
Justice requires that a plaintiff should not suffer by reason of
devaluation in the value of the currency between the date on which
the defendant should have met his obligation and the date of actual
payment or the date of enforcement of the judgment. Since execution
cannot be levied in foreign currency, there must be a conversion into
local currency for this limited purpose and the rate to be applied is
that obtaining at the date of enforcement.”
See
also Standard
Chartered Bank of Canada
v
Nedperm
Bank Ltd
1994
(4) SA 747 (A)…,
where
it was stated that;
“…,
the damages to be awarded in this case should be expressed in US
dollars. It is implicit in any order to this effect that the judgment
debt may be satisfied in South Africa by payment in the foreign
currency or by payment of its equivalent in Rand when paid.”
This
court is persuaded by the contention, which is supported by various
decisions by the Supreme Court and the High Court, that, had the
judgment in this matter been sought and made after January 2009, even
in respect of an accident that occurred before that date, judgment
could be granted in foreign currency as being the effective currency
to redress the loss.
As
further authority for this proposition, see
Kwindima
v Mvundura
2009
(1) ZLR 168 (H).
However,
in this case, judgment was sought prior to January 2009, specifically
in Zimbabwe dollars, and quite clearly Zimbabwe dollars is the
currency in which the losses were sustained.
Section
41 of the Reserve
Bank of Zimbabwe Act [Chapter 22:15]
reads:
“41
Legal tender of banknotes
(1)
A
tender of a banknote which has been issued by the Bank and which has
not been demonetised in terms of subsection (2) shall be legal tender
in payment within Zimbabwe of the amount expressed in the note.
(2)
The President may, by statutory instrument, call in and demonetize
any banknotes issued by the
Bank, and shall likewise determine the manner in which and the period
within which payment for such banknotes shall be made to the holders
thereof.”
It
is common cause that the President has not demonetized the Zimbabwe
currency in terms of the Presidential
Powers (Temporary Measures) (Currency Revaluation and Issue of New
Currency) Regulations 2009, as confirmed by the Finance Act 2009,
and
that, he had not done so at the time that this application was filed,
on 8 May 2013.
Section
44 of the Reserve
Bank of Zimbabwe Act [Chapter 22:15] provides
that:
“44A
Legal tender of foreign currencies
The
Minister may, in regulations made under section 64, prescribe that,
subject to such conditions as may be specified in the regulations, a
tender of payment in any currency other than Zimbabwean currency
shall be legal tender in all transactions or in such transactions as
may be specified in the regulations.”
It
is submitted, on behalf of the respondent, quite correctly in my
view, that this provision does not render the Zimbabwe currency to be
moribund, but that it allows foreign currencies to be treated as
legal tender in addition to the Zimbabwe currency. It was correctly
submitted, in my view, that there is no statute or other legal
instrument that has abolished or suspended the existence of the
Zimbabwe currency. Accordingly, as a matter of law, if not practice,
the Zimbabwe currency still exists. See
Stuart v National Railways of Zimbabwe (unreported)…,.
If
any conversion is to take place for the purposes of allowing the
enforcement of a judgment granted before February 2009, in Zimbabwe
currency, it must be done at the rate prevailing on the date
of payment,
not
the date of judgment….,.
The
Legislature, in its wisdom, only enacted section 44A of the Reserve
Bank Act, and did not see fit to provide a further framework to guide
us on how to dispose of these matters. If
the applicant's judgment has been rendered incapable of being
satisfied through lack of a legislative framework that regulates its
execution, then the applicant's remedies must lie with the
Legislature.
The
applicant seeks to use the date of judgment as the date on which
conversion into US dollars is to be made, and seeks to use the rate
of exchange allegedly applicable on that date. However, it is
pertinent to note that, at the date of the judgment, January 2008,
the use of United States dollars in Zimbabwe was not permitted, and
any judgment given in United States dollars as being the currency in
which the loss was sustained could only be satisfied by the payment
of Zimbabwe currency as at that date.
This
court lacks that jurisdictional basis to make any conversion as at
the date of judgment because such conversion would, at that time,
have been contrary to exchange control legislation. Any attempt to do
a conversion as at the date of the judgment would in effect be to
render a completely new judgment, in breach of the once and for all
rule.
The
'once and for all rule' is a common law rule that stipulates that
a plaintiff must claim, in a single action, compensation for the
damage he has already suffered and the prospective loss which he
reasonably expects to suffer in future. See Oslo
Land Co Ltd v Union
Government
1938 AD 584…,.;
and
Custom Credit Corporation (Pty) Ltd v Shembe
1972
(3) SA 462 (A)…,.
In
his book The Law of Delict, PROFESSOR BOBERG
sums
up the common law position as follows:
“A
single wrongful act gives rise to a cause of action for all damage,
past and future, that it causes. This means that a plaintiff cannot
claim compensation piecemeal for his various losses as they occur: he
must sue 'once and for all' for the whole of his damage, seeking
redress not only for the harm he has already suffered (actual or
accrued loss) but also for the harm he expects to suffer in the
future (prospective loss). And if he succeeds he will generally be
awarded damages in a lump sum, payable immediately, in respect of
both past and future losses.”
See
also Elvins
v Shield Insurance Co Ltd 1980 (2) SA 814 (A)…,
where the court said:
“The
'once and for all' rule applies especially to common law actions
for damages in delict, though it has also been applied to claims for
damages for breach of contract….,. Expressed in relation to
delictual claims, the rule is to the effect that in general a
plaintiff must claim, in one action, all damages…,. This rule
appears to have been introduced into our practice from English Law.
Its introduction and the manner of its application by our courts have
been subject to criticism…, but it is a well entrenched rule. Its
purpose is to prevent a multiplicity of actions based upon a single
cause of action to ensure that there is an end to litigation.”
In
Dube
v Banana 1998 (2) ZLR 92 (HC)…,
the
law in Zimbabwe was stated in the following terms:
“Our
law recognizes the 'once and for all rule' which states that a
plaintiff, when suing for damages, must sue for all his damages in a
single action, both for loss suffered and for prospective loss…,.
In my opinion, the once and for all rule should be modified. I
consider this can best be done by an Act of Parliament rather than by
'judge-made law', which is, by its very nature, haphazard and
piecemeal. The Law Development Commission of Zimbabwe issued a report
entitled Report No. 43: 'Once and for all rule in claims for
damages', in which, as the title suggests, it examined the rule and
in which it made recommendations for its reform.”
Parliament
has not intervened to change the law.
This
court accepts as a correct application of the law to the
circumstances of this case that the applicant has had his once and
for all right to claim damages for the injuries which he sustained in
the accident. He elected to litigate for those damages in 2008. He
claimed those damages partly in Zimbabwe currency and partly in
Botswana Pula. He received the awards he sought. He had a further
opportunity to recast his case before the Supreme Court, in October
2010, when the appeal was heard, which was after dollarization. He
chose not to do so, or to seek the leave of the Supreme Court to have
the Zimbabwe dollar component of the judgment 'converted' to a
currency that he could use. The Supreme Court, on application for its
leave, would have had an opportunity for 'judge made law' to
decide whether to remit the matter back to this court for evidence to
be adduced on the question of the 'conversion' of the Zimbabwe
dollar component of the judgment to a currency of the applicant's
choice.
The
applicant cannot now come back to this court seeking to change the
judgment given to him. The applicant has already had his day in court
he cannot now come for a second judgment arising out of the same
circumstances as the first.
Res
judicata
is a rule that matters which have already been adjudicated upon
between the same parties cannot be adjudicated again. It is a
consequence of the 'once and for all rule'.
In
Union
Wine Ltd
v
Snell
and Co Ltd
1990
(2) SA 189 (C)…,
the Judge said:
“Although
it is not clear from the cases whether the 'once and for all'
rule is just a manifestation of the exceptio
rei judicatae
or whether it has a wider range than the latter, it is settled
practice in South Africa that where a cause of action gives rise to
more than one remedy a plaintiff who pursues one of those remedies
and has obtained a judgment thereupon can be met with a plea of res
judicata
if he should institute a second action to pursue one of the other
remedies.”
It
is common cause that the parties before this court are the same as
those before the court in 2008. It is common cause that the cause of
action is the same and that damages are being sought pursuant to that
cause of action. In the January 2008 judgment this court decided that
the applicant had suffered damages which required to be redressed by
the payment of Zimbabwe currency. This court accepts that all those
issues are now res
judicata
and
cannot be re-opened.
In
the result, this court finds that it has no jurisdiction to grant the
relief sought by the applicant, and that, no factual basis has been
laid in the founding affidavit to justify granting the relief sought.
The court is functus
officio,
the
damages which the applicant seeks to be 'converted' to another
currency now, were assessed and awarded in 2008. Any attempt to
re-assess the award made in 2008 now, even if such assessment
involves the calculation of the value of the damages in a different
currency, would amount to changing the nature of the judgment given
in 2008, a power which is only available to a superior court on
appeal.
The
matter cannot properly be determined by the improper use of this
court's inherent jurisdiction.
This
court's inherent jurisdiction does not cloak it with power to
re-determine issues between the same parties which have already been
conclusively determined. It may only do so on limited grounds where
it is directed to do so by a higher court, the Supreme Court, and on
very specific directions. There being no such direction from the
Supreme Court, to this court, it is trite that the issues between the
parties are res
judicata.
This
court has no jurisdiction to exercise the same principles of social
justice and equity as the Labour Court, and any attempt to rely on
labour matters, as the basis for inviting this court to exercise
powers that are specific to and pertinent to the Labour Court will
find no truck with this court.
In
the circumstances of this case, where 'accident damages' were
assessed and awarded as special damages and general damages, under
the law of delict, it is my view that, there is no factual or legal
basis in the papers filed of record, on which this court can
'convert' a 2008 judgment made in Zimbabwe currency to United
States dollars.
Despite
this finding, this court respectfully declines to exercise its
discretion and grant punitive costs against the applicant as
advocated for by counsel for the respondent.
Accordingly,
the application is dismissed with costs on an ordinary scale.