MAKONI
JA:
This is an appeal against the whole consolidated judgment of the High
Court dismissing the appellants application in HC4197/18 and granting
the respondents application in HC1774/18.
FACTUAL
BACKGROUND
The
appellants are husband and wife and were at one point members of the
United Family International Church (“UFIC”), the third respondent
in casu.
The
first and second respondents are also husband and wife and are the
leaders (prophet and prophetess respectively) of UFIC.
In
the court below, the appellants instituted an action against the
respondents, under HC7214/18 claiming a total sum of US$6,535,000.00,
to be paid jointly and severally, the one paying the others to be
absolved, broken down as follows:
“(a)
Damages for US$700,000.00 being the value of property number 14
Edinburgh, Marlborough, Harare.
(b)
A refund of the sum of US$1,698,000.00 for misrepresentation.
(c)
US$37,000.00 being refund for fees paid to Tichaona Mawere.
(d)
An amount of US$1,100,000.00 being a refund paid to the defendants.
(e)
An amount of US$2,000,000.00 being damages for fraud and
misrepresentation.
(f)
An amount of US$500,000.00 being damages for mental anguish.
(g)
US$500,000.00 being damages for defamation of character. (sic)
(h)
Payment of interest on the sums in (a) to (g) above at the prescribed
rate from the date of demand to the date of full and final payment.
(i)
Payment of costs of suit on a legal practitioner and client scale.”
The
claims were particularised in the declaration as summarised
hereunder:
CLAIM
ONE
In
2012, and during church proceedings, the first and second respondents
fraudulently misrepresented to the appellants “that anyone with a
bank debt or loan was to be cancelled as it was a season of
miraculous cancellation of debts.” (sic)
It
is alleged that this followed after the respondents had been
'privately' informed that the appellants had an existing ZB Bank
loan in the sum of US$500,000.00.
As
a result of this misrepresentation, the appellants were induced not
to pay back the loan and as a consequence the bank executed on their
immovable property thus causing them to lose a property worth
US$700,000.00.
CLAIM
TWO
In
the same year, the respondents misrepresented in church that one
Tichaona Mawere (Mawere) “was a great lawyer and that he would not
lose a case” when in fact he was not a registered legal
practitioner.
Acting
on the misrepresentation, the appellants instructed the said Mawere
to handle their matter for a claim of US$1,698,000.00 and expended
fees in the sum of US$37,000.00. Mawere produced fake court orders
resulting in them making a loss to the tune of US$1,735,000.00.
CLAIM
THREE
That
in the period ranging from 2014 to 2016 the appellants were called on
stage in church. The respondents would announce that the appellants
“were a successful example in the Ministry”.
Acting
on these “misrepresentations” the appellants made various direct
contributions amounting to US$1,100,000.00 to the respondents. The
respondents would represent “that in so contributing the plaintiffs
(the appellants) would reap what was commensurate with their
contributions.”
CLAIM
FOUR
The
appellants were again paraded in church on stage “as a chosen
people by God to have succeeded in business”.
As
a result of that further “misrepresentation” the appellants
marketed the respondents prophecies for the advancement of the
respondents interests and “their prophesies as the success story of
the prophesies”. In the process the appellants were prejudiced to
the tune of US$2,000,000.00.
CLAIM
FIVE
Before
the amendment, which I shall deal with later, the claim was that “the
defendants (the respondents) caused damages through defamation (sic)
by publishing false articles against the plaintiffs and their
business activities, articles claiming that the Plaintiffs perfumes
cause cancer.”
CLAIM
SIX
The
appellant's claimed that “the defendants caused mental anguish to
the Plaintiffs, emotional embarrassment and torture by exposing the
Plaintiffs private lives on the Defendants Facebook online page 'The
Truth About Prophet Makandiwa.'”
It
was further averred that the information had been given to the
respondents “in private” and the statements were meant to destroy
their reputation.
Upon
being served with the summons the respondents entered an appearance
to defend.
They
further addressed a letter to the appellants in terms of Rule 140 of
the High Court Rules, 1971 (the Rules) to the effect that the claims
in question were vague and embarrassing and that they did not
disclose a cause of action.
It
was averred that it was not clear whether the appellants were suing
in terms of contract or under the law of delict and as regards claim
five and six, whether the claims were made under defamation or
injuria.
The
appellants did not respond to this letter.
Consequently,
the respondents filed an exception to the appellants summons and
declaration.
The
exception was dismissed on 12 January 2018 by MANGOTA J who ordered
that the appellants amend their declaration in respect of claims five
and six, that the respondents file their plea and that the matter
proceeds in terms of the Rules.
As
directed the appellants amended their declaration in respect of
claims three, five and six.
CLAIM
THREE
It
was amended by the addition of paragraph 20.1.
It
was claimed that upon being confronted by the appellants the
respondents undertook to repay the appellants all the money they had
contributed upon proof of such payment. Despite being furnished with
the proof the respondents have refused or neglected to pay in
accordance with their undertaking.
CLAIM
FIVE
It
was amended by deleting the original claim and substituting it as
summarised below:
The
appellants were in the business of manufacturing and selling
perfumes. On or around 16 August 2016 and after the fallout between
the appellants and the respondents the respondents caused to be
published an article in the Herald Newspaper in which they said:
“You
just need one person who can move around telling people that your
perfumes can cause cancer and the news begins to spread your company
will begin to go down.” (sic)
“The
statement was false and the respondents intended to spread a rumour
and thereby injure the appellants in their trade. In view of the
close relationship between the parties before the fallout, the words
of the respondents caused a rumour to spread that the appellants
perfumes cause cancer. As a result of the statement and the
subsequent rumours the public desisted from purchasing appellants
perfumes. Consequently, the appellants through their company ceased
to manufacture the perfumes. The appellants suffered damages due to
the respondents wrongful conduct in the sum of USD$500,000.00.”
CLAIM
SIX
The
original claim was deleted and substituted with a claim summarised as
follows:
On
or about 2 February 2017 the respondents caused to be published on
their Facebook page titled “The truth about Emmanuel Makandiwa”
private and intimate details of the appellants which they had
received in confidence. The publication of the details was wrongful
and was done with an intention to injure the appellants standing in
society and was done in the wake of the fallout between the parties.
Appellants suffered damages, as a result of the unlawful intrusion
into their private lives, in the sum of USD$500,000.00.
Following
the dismissal of the exception, and on 23 February 2018, the
respondents filed an application for the dismissal of the appellants
claims in toto in terms of Order 11 Rule 75 of the Rules, under
HC1774/18.
The
respondents having failed to prosecute their application under
HC1774/18 timeously, the appellants filed a chamber application for
dismissal of the same for want of prosecution in terms of Rule
236(3)(b)of the Rules, on 8 May 2018 under HC4197/18.
Since
both matters were set down for hearing at almost the same time and
before different judges, a request was made for their consolidation
and it was granted.
DETERMINATION
BY THE COURT A QUO
The
court' s approach was to determine the application in terms of Rule
236(3)(b) under HC4197/18 first.
It
opined that if it granted the relief being sought by the appellants
that would be the end of both matters. If it dismissed the
application, then it would proceed to hear the respondents
application in terms of Rule 75 under HC1774/18 which it coined the
main matter.
Regarding
the application for dismissal for want of prosecution the court found
that the reasons proffered for the delay in prosecuting the matter
were reasonable. It also stated that it had a discretion to discharge
the application or make any other order as it deemed fit in the
circumstances.
In
the result, the application for dismissal for want of prosecution was
dismissed and the court ordered that the main matter be heard on the
merits.
Pertaining
to the issue of the dismissal of the appellants claims in terms of
Rule 75 of the Rules, the court a quo dealt with each of the
appellants claims in turn.
It
found that the appellants claims were frivolous and vexatious and
warranted summary dismissal.
Aggrieved
by the decision of the court a quo, the appellants noted an appeal to
this Court. This is the appeal that this Court is seized with.
GROUNDS
OF APPEAL
“1.
The court a quo erred and misdirected itself in that having found
that respondents had by their admission failed to prosecute their
cause within the prescribed period, it ought to have dismissed for
want of prosecution, no special circumstances existing to exercise a
discretion in their favour.
2.
The court a quo grossly erred and misdirected itself in that a prior
judgment of the High Court in HH10/18 having established that a valid
and substantiated cause of action based on fraud existed between the
parties, it could not render otherwise.
3.
A fortiori the court a quo effectively reviewed and contradicted an
extant earlier judgment of a judge of parallel jurisdiction on the
same cause between the same parties contrary to the principles of res
judicata and issue estoppel.
4.
The court a quo further erred and misdirected itself in finding
contrary to law that fraud and fraudulent misrepresentation did not
constitute a valid cause of action at law, subsequently; the court a
quo erred in failing to find that the question of whether fraud and
its constituent elements had been proven was an evidentiary issue
reserved for trial.
5.
The court further grossly erred and misdirected itself in determining
the matter regardless of conflicting material averments which could
not be resolved on affidavit a fortiori, it could not find as a
matter of fact that the claims by the appellants were frivolous and
vexatious, absent evidence and its testing in contested action
proceedings.
ISSUES
Although
the appellants raised five grounds in their notice of appeal, the
matter, in my view, stands to be disposed on three issues viz;
1.
Whether or not the court a quo erred in failing to dismiss the
respondents application for want of prosecution.
2.
Whether or not the court a quo reviewed and contradicted an extant
earlier judgment of a judge of parallel jurisdiction thereby
violating the principles of res judicata and estoppel.
3.
Whether or not the court a quo erred and misdirected itself in
determining the matter regardless of the existence of alleged
conflicting material averments which could not be resolved on
affidavit.
APPLICATION
OF THE LAW TO THE FACTS
1.
Whether or not the court a quo erred in failing to dismiss the
respondents application for want of prosecution
In
their first ground of appeal the appellants take issue with the fact
that the court a quo erred and misdirected itself in that having
found that the respondents had by their admission failed to prosecute
their cause within the prescribed period, it ought to have dismissed
it for want of prosecution, as no special circumstances existed for
it to exercise its discretion in their favour.
The
law on applications for dismissal for want of prosecution is settled.
In
Guardforce Investments (Private) Limited v Ndlovu & Others
SC24/16 the court said:
“The
respondent applied to have the appellant's case dismissed for want
of prosecution in terms of Rule 236(3) of the High Court Rules, which
provides as follows:
'236.
Set down of applications
(3)
Where the respondent has filed a notice of opposition and opposing
affidavit and, within one month thereafter, the applicant has neither
filed an answering affidavit nor set matter down for hearing, the
respondent, on notice to the applicant, may either –
(i)
set the matter down for hearing in terms of rule 223; or
(ii)
make a chamber application to dismiss the matter for want of
prosecution; and the judge may order the matter to be dismissed with
costs or make such other order on such terms as he thinks fit.'
The
discretion to dismiss a matter for want of prosecution is a judicial
discretion, to be exercised taking the following factors into
consideration –
(a)
the length of the delay and the explanation thereof;
(b)
the prospects of success on the merits;
(c)
the balance of convenience and the possible prejudice to the
applicant caused by the other party's failure to prosecute its case
on time.”
For
the appellants to establish that the court a quo misdirected itself
in the manner alleged they have to satisfy this Court that they met
all the requirements as set out in the Guardforce case supra.
In
casu the appellants did not satisfy these requirements.
They
did not relate at all to the prospects of success they had in the
main matter. They did not show that they suffered prejudice due to
the respondents non-timeous action.
The
grant or refusal of an application for dismissal for want of
prosecution is an exercise of discretion. Rule 263(3) clearly
bestowed discretion on the court a quo on whether to grant or dismiss
the application.
In
casu the court a quo exercised its discretion not to dismiss the main
matter because the respondents had filed their answering affidavit,
heads of argument and applied for set down of the matter following
service of the application for dismissal upon them.
In
this light, the court a quo found that despite the delay in filing
their answering affidavit and heads of argument, there was no utter
disregard of the rules of the court. It further found that the
explanation given by the respondents in the circumstances was
reasonable and that Rule 236, was not mandatory. It gave the court a
discretion which must be exercised in the interest of justice and
finality to litigation.
For
this Court to vacate the court a quo's exercise of discretion
certain requirements have to be met.
The
laid down test has to be pleaded and met. It has to be shown that the
court a quo in its exercise of discretion, was motivated by ulterior
motives and not the dispensation of justice. It has to be shown that
the exercise of discretion in the manner the court a quo did was
actuated by malice, bias, improper motives and any other
considerations extraneous to the court's conduct prescribed by the
law: see Barros & Anor v Chimphonda 1999 (1) ZLR 58 (SC);
Barclays Bank of Zimbabwe Limited v Mahachi SC62/04; Robinson v
Minister of Lands and Anor 1994 (2) ZLR 171 (S) at 175A-C.
In
my view the appellants have not met the test.
They
have not shown that the exercise of the court's discretion was
motivated by ulterior motives. They have further not proved that
there was malice and any other extraneous consideration that
influenced the court a quo to exercise its discretion in the manner
it did.
There
being no proper basis laid out for interfering with the decision of
the court a quo this ground of appeal has no merit and ought to be
dismissed.
2.
Whether or not the court a quo reviewed and contradicted an extant
earlier judgment of a judge of parallel jurisdiction thereby
violating the principles of res judicata and estoppel
This
issue deals with grounds two and three. Put differently the issue is
whether the determination of an exception to the summons and
declaration taken in terms of Order 21 Rule 137(1)(b) bars a litigant
from seeking a dismissal of the same action for being frivolous and
vexatious under Order 11 Rule 75.
The
thrust of the appellants argument is that MANGOTA J's finding that
they had a substantiated cause of action based on fraud precluded
TAGU J from making a finding that the claims were frivolous and
vexatious.
It
was submitted that TAGU J was bound by the principles of res judicata
and estoppel to abide by the extant order of MANGOTA J.
The
referred question can be determined by ascertaining the law governing
exceptions and dismissal of actions and the nature of the cases
before the respective judges.
EXCEPTIONS
TO PLEADINGS
Rules
137 and 141 regulate the procedure to be followed in raising
exceptions and the court's powers thereto respectively.
In
terms of Rule 137(1)(b), a party can except to the whole pleadings or
the specific offending parts. Rule 141(a)(ii) empowers the court to
make an order striking out or allowing the amendment of the matter
contained in a pleading.
In
Herbstein & Van Winsen's The Civil Practice of the High Courts
of South Africa, the purpose of an exception procedure was elucidated
as follows:
“The
taking of an exception is a procedure which is interposed before the
delivery of a plea on the merits by a defendant or before the
delivery of a replication or joinder of issue by a plaintiff. It is
designed to dispose of pleadings which are so vague and embarrassing
that an intelligible cause of action or defence cannot be ascertained
or to determine such issues between the parties as can be adjudicated
upon without the leading of evidence.” (emphasis added)
What
constitutes a vague and embarrassing pleading was considered in Trope
& Ors v The South African Reserve Bank 1992 (3) SA 208 at 221A-E,
where the court quoted with approval the lower court's statement
that:
“And
if the pleadings lack sufficient clarity to enable the defendant to
determine those facts and hence the case he has to meet, the
pleadings are vague and embarrassing.”
The
test applicable in deciding exceptions based on vagueness and
embarrassment arising out of lack of particularity are as summarised
by Erasmus Superior Court Practice at B1-154A as follows;
“(a)
In each case the court is obliged to first of all consider whether
the pleading does lack particularity to an extent amounting to
vagueness. Where a statement is vague it is either meaningless or
capable of more than one meaning. To put it simpler: the reader must
be unable to distil from the statement a clear single meaning.
(b)
If there is vagueness in this sense the court is then obliged to
undertake a quantitative analysis of such embarrassment as the
excipient can show is caused to him or her by the vagueness
complained of.
(c)
In each case an ad hoc ruling must be made as to whether the
embarrassment is so serious as to cause prejudice to the excipient if
he or she is compelled to plead to the pleading in the form to which
he or she objects. A point may be of the utmost importance to the
case, and the omission thereof may give rise to vagueness and
embarrassment, but the same point may in another case be only a
matter of detail.
(d)
The ultimate test as to whether or not the exception should be upheld
is whether the excipient is prejudiced.”
See
also Sammys Group (Pvt) Ltd v Bourchier Meyburgh N.O. & Ors
SC45/15.
From
the cited authorities, it can be noted that an exception relates to
the formulation of a claim.
A
claim must be articulated with sufficient particularity such that it
discloses an intelligible cause of action failing which it may be
termed vague and embarrassing.
However,
the court may set aside the pleadings and upon request grant the
plaintiff leave, to file an amended pleading within a certain period.
Dismissal at this stage is a drastic remedy thus the courts have
inclined towards the grant, where an exception is upheld, of leave to
the plaintiff to amend the offending pleadings.
THE
NATURE OF THE CASE BEFORE MANGOTA J
The
court was called upon to determine whether the claims before it were
vague and embarrassing to the extent that a party could not easily
understand and plead to them without difficulty owing to an unclear
cause of action.
In
the exception, claims 1, 2, 4, 5 and 6 were alleged to be vague and
embarrassing. It is only claim 3 which was said to be not only
frivolous and vexatious but vague and embarrassing as it did not
disclose a cognizable cause of action.
However,
in their heads of argument, the respondents argued that the summons
and declaration were expiciable on the basis that they did not
disclose any cause of action against them and that they were vague
and embarrassing to the extent that the vagueness and embarrassment
went to the root of the cause of action.
A
reading of the court's judgment shows that the court was alive to
the case before it which was an exception to the summons and
declaration for being vague and embarrassing. To that end, it
determined the following question:
“…whether
or not one or more or all of the claims do not, as the defendants
alleged, disclose a cause of action.”
Thereafter,
the court analyzed whether each of the appellant's claims
established a cause of action against the respondent.
However,
in finding that four of the appellants claims showed clear and cogent
causes of action and fell under the delict of fraud, the court
remarked that the claims were “neither frivolous nor vexatious.”
A
close look into the court's judgment shows that the phrase
frivolous or vexatious was employed concerning whether or not the
claims subject to the exception disclosed a cause of action and
whether or not they were clear and not vague and embarrassing.
It
would appear that the phrase was loosely used if regard is had to the
issue the court determined and the resultant disposition of the court
(an amendment of the vague and embarrassing claims envisaged by Rule
141.)
DISMISSAL
OF ACTION FOR BEING FRIVOLOUS AND VEXATIOUS
Order
11 Rule 75 allows a defendant who has filed a plea to seek dismissal
of an action that is frivolous and vexatious. It states:
“ORDER
11 DISMISSAL OF ACTION
75.
Application for dismissal of action
(1)
Where a defendant has filed his plea, he may make a court application
for the dismissal of the action on the ground that it is frivolous or
vexatious.
(2)
A court application in terms of subrule (1) shall be supported by
affidavit made by the defendant or a person who can swear positively
to the facts or averments set out therein, stating that in his belief
the action is frivolous or vexatious and setting out the grounds for
his belief.
(3)
A deponent may attach to his affidavit filed in terms of subrule (2)
documents which verify his belief that the action is frivolous or
vexatious.”
In
Rogers v Rogers and Anor 2008 (1) ZLR 330 (S) at 337E-G the court
dealing with an appeal against a decision dismissing a claim and
granting absolution from the instance in terms of Order 11 Rule 79(2)
on the ground that it was frivolous, accepted the following
definition of frivolous:
“In
S v Cooper & Ors 1977 (3) SA 475 at 476D BOSHOFF J said that the
word 'frivolous' in its ordinary and natural meaning connotes an
action characterized by lack of seriousness, as in the case of one
which is manifestly insufficient. An action is in a legal sense
'frivolous or vexatious' when it is obviously unsustainable,
manifestly groundless or utterly hopeless and without foundation. See
also Western Assurance Co v Caldwell's Trustee 1918 AD 262 at p271;
Corderoy v Union Government 1918 AD 512 at p517; Wood NO v Edwards
1968 (2) RLR 212 at 213A-F; Fisheries Development Corporation v
Jorgensen & Anor 1979 (3) SA 1331 at 1339E-F; Martin v Attorney
General & Anor 1993 (1) ZLR 153 (S).
It
appears to me that a plaintiff who commences action in a court of law
when he or she has no reasonable grounds to do so has no cause of
action. An action without a good cause is baseless and obviously
unsustainable.”
Dismissal
under Rule 75 is therefore a drastic remedy intended to resolve
actions that are baseless and unsustainable.
THE
NATURE OF THE CASE BEFORE TAGU J
The
court per TAGU J, inter alia, determined the respondents application
for dismissal of the appellants claims in terms of Rule 75 on the
basis that they were frivolous and vexatious.
This
was after the appellants had amended their claims pursuant to MANGOTA
J's order and the respondents had filed their plea.
Notwithstanding
the amendment, the respondents argued that the proceedings were not
seriously brought with bona fide intent of obtaining relief as the
appellants causes of action were founded on falsehoods.
As
alluded to, Rule 75 allows the course of action taken by the
respondents.
Thus,
the appellants must have averred material facts in the declaration,
proof of which would constitute the essential elements of the alleged
causes of action entitling them to the judgment of the court. See
Rogers v Rogers, supra.
In
casu, the appellants claims 1-4 alleged that the respondents made
material misrepresentations which caused them financial prejudice,
claim 5 related to alleged defamatory statements by the respondents
and claim 6 to mental anguish, emotional embarrassment and torture
due to the respondents exposing their private lives on social media
platforms.
The
essential elements of the alleged causes of action must have been
provided.
Therefore,
Rule 75 goes beyond the formulation of a claim. It looks into the
legal validity of a claim.
Unlike
an exception, an inquiry into whether a claim is frivolous and
vexatious goes beyond the wording of a claim, it looks into whether
the claim has any legal basis or merit. Where it is unsustainable,
manifestly groundless or utterly hopeless and without foundation it
is frivolous and may be dismissed.
ANALYSIS
There
is no provision in the rules of the High Court that bars a litigant
who excepts to a summons and declaration for being vague and
embarrassing under Rule 137 from seeking the dismissal of the matter
under Rule 75 on the basis that it is frivolous and vexatious.
The
Rules relate to different procedural concepts, are invoked at
different legal stages and afford a party distinct legal relief.
The
respondents properly invoked each of the Rules, thus the court per
TAGU J cannot be faulted for determining the peculiar application
before it which was distinct from the one MANGOTA J dealt with.
Therefore,
res judicata does not arise as the issues dealt with by MANGOTA J and
TAGU J were different.
THE
PROPRIETY OR OTHERWISE OF MANGOTA J's ORDER
I
pause momentarily and digress to note that there is case law to the
effect that it is a misdirection for a court to dismiss an exception
taken and simultaneously allow a party to amend their pleadings.
In
Chimakure & Anor v Mutambara & Anor SC91/20, the court held
that:
“[23]
For the sake of convenience, I will begin with the nature of the
relief ordered by the court a quo. The court dismissed the exception.
It found that the pleadings were not excipiable. Once the court found
that the exception was not well taken it could not exercise the
discretion of affording the respondents an opportunity to file
further particulars. Such indulgence could only follow upon a finding
that the exception was well taken. To that extent it is my view that
the court was guilty of a misdirection.” (Emphasis added)
In
Group Five Building Ltd v Government of the Republic of South Africa
(Minister of Public Works and Land Affairs) 1993 (2) SA 593A at
602C-D the court remarked:
“As
far as I am aware, in cases where an exception has successfully been
taken to a plaintiff's initial pleading, whether it be a
declaration or the further particulars of a combined summons, on the
ground that it discloses no cause of action, the invariable practice
of our courts has been to order that the pleading be set aside and
that the plaintiff be given leave, if so advised, to file an amended
pleading within a certain period of time.” (own emphasis)
In
light of this, this court finds that it was a misdirection for
MANGOTA J to dismiss the respondents exception on all claims and
grant the appellants leave to amend claims 5 and 6.
In
conclusion TAGU J properly dealt with the claim for dismissal before
him.
This
is for the reason that there is nothing in the Rules to suggest that
once the determination of an exception filed under Rule 137 has been
made, a party cannot move for the dismissal of an action under Rule
75.
The
appellants grounds two and three have no merit and ought to be
dismissed.
Regarding
grounds four and five the court, at the outset during the hearing,
enquired of Mr Hashiti whether these grounds had been abandoned as
they had not been motivated in the Heads of Argument.
In
response, Mr Hashiti advised that none of the grounds were being
abandoned.
On
being asked to direct the court to where these grounds were motivated
he directed the court to paragraph 15 of the appellants Heads of
Argument. This is what paragraph 15 states;
“Even
if the court per TAGU J could revisit the question, it still did so
wrongly and wrongfully. That there is a valid cause of action is
beyond doubt. The law allows refunds and reimbursements for
unlawfully paid funds. As a result, there cannot be argument that no
cause of action can arise.”
The
argument advanced in this paragraph completely misses the respondents
position.
It
is not that there is no cause of action. It is that the appellants
pleaded falsehoods and that they could never succeed at trial on the
facts as pleaded. Their action was therefore frivolous and vexatious.
The
paragraph also misconstrues the finding of the court a quo.
Nowhere
in the judgment a quo is it stated that a misrepresentation did not
constitute a valid cause of action.
The
court a quo examined each claim separately and gave reasons as to why
it found each claim to be frivolous and vexatious. The crisp finding
of the court a quo in respect of each claim was that on the facts as
pleaded by the appellants no competent cause could be sustained.
By
way of illustration, in Claim One, the appellants alleged that the
respondents alleged that they stopped paying the loan that they had
obtained from ZB on the basis of a prophesy made by the respondent to
the effect that it was “a season of miraculous cancellation of
debts”.
It
could not on the facts as pleaded by the appellants be established
through a deeds search at the Registrar of Deeds office that the
appellants owed ZB Bank Limited USD500,000 and that the property they
allegedly lost was bonded in favour of ZB Bank for that amount.
It
could not be supported factually through a search carried out in the
Civil Registry of the High Court that ZB Bank sued the appellants for
USD500,000 between 2012 and 2017 as alleged, and that the property in
question was attached or sold in execution as alleged or at all at
the instance of ZB Bank Limited.
The
reality on the ground which the appellants never controverted was
that the property was at all material times owned by Carmeco
Investments (Private) Limited (Carmeco) a separate persona from the
appellants in terms of Deed of Transfer No. 10763/2002 dated 24
September 2002.
In
that regard the law relating to companies applies with full force and
effect.
The
appellants cannot claim to have been prejudiced in respect of what
they did not own.
In
any event as early as 29 February 2012 Carmeo had sold the property
for USD800,000.00 to Nemajo Family Trust as represented by Steward
Nyamushaya. The purchase price thereof was paid in full through the
appellants agents McDowells International (Private) Limited.
At
no time did it appear from the deeds search that Carmeco, which owned
the property, mortgaged number 14 Edinburgh Road Marlborough to ZB
Bank Limited for the sum of USD500,000 during the period 2012 to
2017.
The
above illustration clearly demonstrates that the appellants pleaded
falsehoods.
In
their notice of opposition to the application the appellants did not
controvert these facts.
They
contended that they did not have to reply to the evidence submitted
by the respondents as it was a matter of evidence to be related to at
trial.
They
overlooked the fact that in terms of Rule 75(2) and (3) a party
making an application in terms of subrule (1) is required to do two
things:
(i)
Firstly, he or she shall file an affidavit in which he sets out his
belief that the action is frivolous and vexatious and the grounds for
his belief.
(ii)
Secondly he or she may attach documents which verify his or her
belief that the matter is frivolous and vexatious.
Once
that information has been placed before the court it should be
incumbent upon the other party to controvert it.
In
casu the appellants did not do so. Rather they directed their energy
to a vitriolic attack on the respondents instead of addressing the
requirements of Rule 75.
Having
misconstrued the court a quo's finding, grounds of appeal four and
five must fail.
Everything
considered I find no fault with the reasoning of the court a quo. No
proper basis has been placed before this court to interfere with the
court a quo's exercise of its discretion.
The
respondents prayed for costs on a punitive scale mainly on the basis
that the lis a quo was an unmitigated attack upon their good names.
It was shown to be false. The respondents pockets have not been
spared in the bid to protect themselves from a sustained assault upon
their good names.
I
see no reason why costs on a legal practitioner-client scale should
not be granted.
Accordingly,
I make the following order;
1.
The appeal be and is hereby dismissed.
2.
The appellants to pay the respondents costs, on a legal practitioner
client scale, jointly and severally the one paying the other to be
absolved.
GWAUNZA
DCJ: I agree
BERE
JA: No longer in office
Manase
& Manase, appellants legal practitioners
Venturas
& Samkange, respondents legal practitioners