ZIYAMBI
JA:
The
late Job Bruno Kadengu died testate on 25 March 1990. His will
contained the following clauses:
“2.
The expression 'Executors' or 'Executor' wherever used in
this Will mean either Executors or Administrators or Trustees or any
two or all of these offices as may be appropriate in the
circumstances and in the context thereof and the term 'Executors'
includes the singular and the term 'Executor' includes the
plural.
5.
My Executor shall take possession of all my property, whether movable
or immovable of whatsoever nature and sort and wheresoever situate
and whether the same be in possession, reversion, remainder or
expectancy, and after paying thereout all my just debts and taxes
payable by reason of my death and the expenses of the administration
of my Estate, then he shall pay and apply the same as hereinafter
directed.
6.
I hereby direct that my Executor shall purchase a house in the
northern suburbs of Harare and I desire that such house be large
enough and commodious enough in the discretion of my Executor to
comfortably accommodate my wife, OLGA, and any dependent children
born of me and my said wife who may survive me. I hereby give and
bequeath to my said wife the said house as a special legacy. I
further give and bequeath to my said wife as a special legacy (or
special legacies) all the household furniture and effects of which I
may die possessed and effects of which may, at the time of my death,
be situate in the residential property where my said wife and I may
be living as at the date of my death. The legacies referred to in
this paragraph shall be conditional upon my said wife, OLGA,
surviving me for a period in excess of thirty (30) days.
7.
I record that I own a certain farming property situate near Rusape.
Provided that my mother shall survive me for a period in excess of
(30) thirty day and provided that I still own the said farming
property as at the date of my death, I hereby give as special
legacies to my mother all the farming implements, live-stock and
other movables which may belong to me at my death and which may be
situate on the said farm as at the date of my death. I further hereby
give and bequeath to my said mother a life usufruct in respect of the
said immovable farming property but subject to the provisions
contained in the immediately subsequent paragraph hereof pertaining
to my sister, ROSA CHIMAMBO. I direct that the dominium in the said
farming property shall be assumed and taken by my Trustee appointed
hereunder who shall deal with the same as directed hereunder.
9.
After discharging my debts and taxes and paying the legacies and
providing for the aforesaid usufruct and generally dealing with my
directives detailed hereinabove, my Executor shall sell and liquidate
and turn into cash the entire balance of my Estate and my Executor
shall hold the resultant monies in his own name as Trustee of a Trust
Fund and he shall apply the income and capital thereof as hereinafter
directed. The successor in office as Trustee of my Trust Fund shall
be the Senior Partner for the time being of the said Messrs Gollop &
Blank.
10.
My Executor, as Trustee, in such manner as he shall in his absolute
discretion from time to time think fit, pay and apply the income of
my Trust fund to or for or towards, the benefit, maintenance,
education and advancement of my said wife, OLGA, my said mother and
any and every child born of my union with my previous wife and any
and every child born of my union with my said wife, OLGA, and,
without derogating from the generality of the aforegoing the
following persons; viz.”
The
appellants were among the persons listed under paragraph 10.
It
is common cause that Gregory Slater who was appointed executor of the
will failed to complete the administration thereof before he fled the
country on allegations of misappropriation of funds and that Messrs
Gollop and Blank renounced their appointment as executors and
trustees of the estate on 5 September 1997.
The
assets of the estate were given as 4,000 shares in Paradise Park
Motel (Pvt) Ltd and a certain piece of land in the district of Makoni
called Alloa Farm.
The
Master, in an attempt to speed up the administration of the estate,
on 2 July 1999, appointed the second respondent as executor dative of
the estate.
It
seems that the second respondent was unable to remedy the problems
left unresolved by Slater and, on 28 September 2000, the first and
the second appellants wrote to the Master complaining of the second
respondent's inaction and his failure to wind up the estate in
accordance with the wishes of the testator.
The
letter did not achieve the desired result and on 24 March 2003 the
appellants made an application to the High Court seeking the
following order:
“IT
IS ORDERED THAT:
1.
The Trust which was to be set up in terms of Clause 9 of the Will be
and is hereby abandoned.
2.
The deceased's 4,000 shares in Paradise Park Motel (Pvt) Ltd shall
be sold to the best advantage of the beneficiaries.
3.
A large enough and commodious enough house shall be purchased for the
first Respondent and her minor children from the proceeds of the sale
of Paradise Park Motel (Pvt) Ltd. The Master of the High Court (the
third respondent) shall determine whether the house which the estate
shall be purchasing for the first respondent and her children is
'large enough and commodious enough'.
4.
After purchasing the house described above for the first respondent
and her children, the residue shall be equally distributed among the
surviving beneficiaries. The shares of the beneficiaries who are
outside the country or who are not part (sic) to these proceedings
shall be… (illegible).
5.
The immovable property situate in Makoni District, namely Alloa Farm,
held under Deed of Transfer 7689/81 shall not be sold. It shall be
retained as the family home to be registered in all beneficiaries
names or to be registered in the name of the nominated beneficiary in
trust for the rest of the beneficiaries”.
It
was their contention that the intention of the testator as expressed
in clause 9 of the will could no longer be implemented because of the
abdication of Slater and the renunciation by Gollop & Blank. They
alleged that they could not agree on a suitable substitute and in any
event some of the beneficiaries could not be located while others
were resident outside Zimbabwe.
On
23 July 2003 the appellants obtained a default judgment in the terms
set out above. This order was, however, rescinded by consent and the
matter was argued before the court a quo.
The
second respondent, the executor dative alleged that the estate was
illiquid making it impossible for him to discharge his mandate. It
was his view that the ownership of the 4,000 shares should be
determined before the estate could be wound up.
The
three issues argued by the parties before the court a quo were as
follows:
1.
Whether or not the estate can no longer be wound up in terms of the
will because some clauses have become irrelevant;
2.
Whether or not the 4,000 shares in Paradise Park Motel (Pvt) Ltd form
part of the deceased's estate; and
3.
Whether or not Alloa Farm can still be dealt with in terms of the
will.
The
application was dismissed by the court a quo primarily on the grounds
that the appellants had no locus standi to bring such an application.
In this regard the learned Judge said:
“It
seems to me however, that a more fundamental point, which
unfortunately was not addressed, arises. It is whether or not the
applicants have locus standi, that is, a direct and substantial
interest in seeking variation or rectification of the will.”
And
later at p6 of his judgment:
“It
seems to me therefore that the applicants in casu are obliged to show
the direct and substantial interest that they have in the subject
matter before me of seeking the variation of certain clauses of the
will. In terms of the will they are residuary heirs. They will only
be able to benefit from the will after clause 9 thereof has been
fulfilled.”
The
court a quo, though alive to the fact that neither party had been
given the opportunity to make submissions on this issue, yet
proceeded to decide the matter on an issue not raised during the
hearing and addressed by the parties.
In
so doing the learned Judge misdirected himself. It was imperative
that the issue was fully canvassed and investigated.
As
it was said in Middleton v Carr 1949 (2) SA 374 (AD) at pp385-6 of
the judgment:
“… as
has often been pointed out, where there has been full investigation
of a matter, that is, where there is no reasonable ground for
thinking that further examination of the facts might lead to a
different conclusion, the court is entitled to, and generally should,
treat the issue as if it had been expressly and timeously raised. But
unless the Court is satisfied that the investigation has been full,
in the above sense, injustice may easily be done if the issue is
treated as being before the Court.”
The
issue was not before the court a quo and in the absence of a full
investigation thereof the court erred in treating the issue as one
which was before it.
Clearly
there was a real chance of an injustice being done to the appellants
against whom the finding was made.
In
any event it would seem to me that the appellants, as beneficiaries
under the will, would have a legal and substantial interest in the
proper administration of the estate since a proper administration of
the estate would ensure the protection of their inheritance. Their
interest is, in my view, sufficient to give them locus standi in
judicio in any matter relating to the proper administration of the
estate.
I
would therefore allow the appeal on this ground.
But
that is not the end of the matter for the court went on to decide the
issues before it and found against the appellants on all three
issues. I turn to consider the appeal against the court's finding
on the merits of the application.
The
first and second issues which fell for decision by the court a quo
may conveniently be dealt with together. They are, whether or not the
estate could no longer be wound up in terms of the will because some
of the clauses have become irrelevant; and whether Alloa Farm could
no longer be dealt with in terms of the will.
Mr
Zhou's submission, as I understand it, is that clause 3 of the will
which nominated Gollop & Blank as Executors and Trustees has been
overtaken by events by virtue of that firm of legal practitioners
having renounced its appointment as executors and trustees under the
will. It was submitted further that with reference to clause 9 of the
will, the appointment of a trustee was now a practical impossibility
since the will envisaged the appointment of Messrs Gollop & Blank
as Trustees and the second respondent, being an executor appointed by
the Master, cannot assume the office in terms of the will. Further,
the will itself makes no provision for the appointment of any other
person as trustee in the event that the appointed firm fails to take
up the appointment for any reason. The deceased, it was submitted,
had specifically appointed his executors to be the trustees as he was
clear as to who the executors were. There was nothing in the will, so
it was submitted, that supports the conclusion that an executor
dative would be entitled to become the trustee since the executor
dative was not nominated by the testator but by the Master.
A
reading of clauses 2 and 4 of the will would appear to support the
submission on behalf of the respondents that a person other than
Gollop & Blank was envisaged by the testator as being his
executor and/or trustee. For instance reference is made to an
accountant as being a possible executor or trustee:
“Any
executor of this my will or any trustee of any Trust Fund hereinafter
created who is by a (sic) profession a legal practitioner or
conveyancer or accountant or notary may charge the estate or any such
Trust Fund …”.
However,
that having been said, an executor appointed by the Master cannot by
virtue of that appointment assume the position of trustee or
administrator of the estate. If he is to act as an administrator he
must be appointed as such by the court. See Ex parte Atherstone, 1942
CPD 559; L Ferera (Pvt) Ltd v Vos, N.O & ORS, 1953 (3) SA 450
(A.D) at 463E-464A.
Thus
where an executor has renounced his appointment under a will, the
Master is empowered by the Administration of Estates Act [Cap 6:01],
to appoint an executor whose duties are as set out in that Act,
namely, to bring in the assets of the estate, file a liquidation and
distribution account and to account to the Master for the assets of
the estate as set out in that account. However, the Master has no
power to appoint a trustee so that if a trustee appointed in a will
has renounced his appointment, or the trustee is incompetent or,
having been appointed, is for some reason no longer acting or, if a
testator has created a trust but failed to appoint a trustee, only
the Court in the exercise of its inherent power to appoint, control
and remove trustees can appoint a trustee to administer the estate in
accordance with the wishes of the testator as set out in the will.
The
Court will exercise this power in order to enable the trust to be
continued. See Ex parte Davenport & Anor 1963 (1) SA 728 (SR) at
731; The Master v Edgecombe's Executors 1910 TPD 263 at 269-270;
Port Elizabeth Assurance Agency & Trust Co. Ltd v Estate
Richardson 1965 (2) SA 936 (C.P.D) at 938C-939D.
It
is evident from the above that there is a distinction in our law
between an executor and a trustee.
In
the case of The Master v Edgcombe's Executors and Administrators
supra, at 274, INNES CJ remarked as follows:
“The
distinction between an executor and an administrator (now 'trustee')
is well known in our law. The executor realizes the estate, reduces
it into possession and accounts for it to the Master. When he has
discharged his duties the administrator (trustee) (if one has been
appointed) steps in and administers the fund, which the executor has
realized in accordance with the terms of the will.”
See
also The Law of Succession in South Africa by Corbett et al at p 414
where the authors say:
“Not
infrequently, a testator appoints the same person to be both executor
and trustee (or administrator) of the estate. There is no objection
to this, but it must be emphasized that the two offices are quite
separate and distinct under our law and the person who will be
appointed to both will be required to act in two different
capacities.”
In
the instant case, once the executor has completed his duties in terms
of the Act the Master, or the beneficiaries, may apply to the court
for the appointment of a trustee to administer the estate in terms of
the will.
With
regard to Alloa Farm, there is nothing on record from which I can
conclude that the intention of the testator regarding the farm as
expressed in the will cannot be implemented. I would, accordingly,
agree with the learned Judge that clause 9 of the will is capable of
implementation.
I
turn to the final issue which is whether the 4,000 shares in Paradise
Park Motel (Pvt) Ltd form part of the deceased estate. The learned
Judge dealt with the matter thus:
“The
applicants referred to affidavits by the first respondent in which
she stated that the shares belonged to the estate. They also attached
the First Interim Liquidation and Distribution Account laid for
inspection on 4 December 1992 and the subsequent First and Final
Liquidation and Distribution Account of 1 November 1996 in which the
shares are reflected as being assets belonging to the estate as proof
that they are estate property.
In
paragraph 13 of the Founding Affidavit the applicants aver that the
shares belong to the Estate.
In
response in her opposing affidavit the first respondent averred that
those shares in Paradise Park Motel (Pvt) Ltd had not been paid for
at the time the testator died and that he never owned them. She then
goes on to state that they never became part of the estate.
Apparently
the sellers of the shares invited interested beneficiaries to
participate in Paradise Park Motel (Pvt) Ltd. None was interested
save the first respondent who negotiated transfer to herself and who
took transfer.
In
their answering affidavit the applicants insisted that the shares
form part of the estate, no doubt on the basis of the earlier
statements on oath to this effect by the first respondent.
The
applicants did not dispute the averment that the letter of 23 April
2002 by Messrs Gill, Godlonton & Gerrans was written in response
to the one by their then erstwhile legal practitioners Messrs Musunga
& Associates over the transfer of an immovable property
associated with Paradise Park Motel (Pvt) Ltd. This letter on page 74
of the record indicated that the agreement referred to was entered
into between Auto Export/Import (Pvt) Ltd and Auto Import/Export
(Pvt) Ltd as purchaser and that transfer could only be effected to
Paradise Park Motel (Pvt) Ltd and not the estate.
The
applicants did not lay facts before this court on the status of
Paradise Park Motel (Pvt) Ltd other than averments of the first
respondent's sworn affidavit to the effect that that she would
become co-director with the testamentary executor in this company
which was part of her late husband's estate.
The
letter from Gill, Godlonton & Gerrans seems to suggest that post
payments on the purchase price were paid by the first respondent.
There
would be need to lead evidence on the true circumstances surrounding
the shares in question.
It
may very well be that the shares belong to the estate notwithstanding
that in terms of section 104(1) of the Companies Act [Cap 24:03] the
holder of a certificate duly signed and with the seal of the company
is presumed to be the owner of the shares on a prima facie basis.
This
however is an area where further evidence will be needed.
If
so advised, it seems to me that this is an issue to be pursued by the
second respondent with the Motel and the first respondent.
When
the applicants brought the application it must have been in their
contemplation from the contents of the letter from Gill, Godlonton &
Gerrans that a dispute of fact would arise on the question of shares.
They did not cite the company. These factors are fatal to the present
application. I would thus dismiss the request to hold that the 4,000
shares belong to the estate in the absence of further evidence.”
It
appears to me that the dispute as to the ownership of the shares is
bona fide and not merely illusory. In such a case the onus is on the
appellants to satisfy the court that the matter could be resolved on
the affidavits without the risk of injustice to the other party. See
Zimbabwe Bonded Fibreglass (Pvt) Ltd v Peech 1987 (2) ZLR 338 (5) at
339C.
This
they failed to do.
I
cannot fault the learned Judge for finding himself unable to resolve
the dispute on the papers without hearing evidence. In choosing to
proceed by way of court application the appellants, aware of the
dispute of fact, took the risk of failing to discharge the onus on
them to convince the court that the matter could be determined
without calling evidence.
In
the premises, I would uphold the decision of the learned Judge on
this issue as well.
Accordingly,
while it is my judgment that the appellants had locus standi to
approach the court, I am satisfied that their appeal on the merits
must fail.
The
appeal is, therefore, dismissed with costs.
SANDURA
JA: I agree
GARWE
JA: I agree
Hungwe
& Partners, appellants' legal practitioners
Chihambakwe,
Mutizwa & Partners, respondents' legal practitioners