Procedural Law-viz citation re multiple litigants.
Procedural Law-viz appeal re partial appeal.
Procedural Law-viz appeal re multiple litigants.
Procedural Law-viz appeal re labour proceedings.
Labour Law-viz disciplinary proceedings re reinstatement iro damages in lieu of reinstatement.
Damages-viz labour proceedings.
Procedural Law-viz final orders re composition of the Bench iro section 3 of the Supreme Court Act [Chapter 7:13].
Procedural Law-viz composition of the Bench re nature of proceedings iro section 3 of the Supreme Court Act [Chapter 7:13].
Procedural Law-viz composition of the Bench re complexity of proceedings iro section 3 of the Supreme Court Act [Chapter 7:13].
Labour Law-viz employment contract re interim contractual lacuna.
Labour Law-viz contract of employment re variation of conditions of service.
Labour Law-viz employment contract re termination.
Procedural Law-viz citation re name description.
Labour Law-viz arbitration re terms of reference.
Procedural Law-viz locus standi in judicio.
Procedural Law-viz cause of action re exception iro arbitration proceedings.
Procedural Law-viz cause of action re special plea iro arbitration proceedings.
Procedural Law-viz locus standi re legal capacity to institute legal proceedings.
Procedural Law-viz founding affidavit re deponent iro representative authority.
Procedural Law-viz founding affidavit re deponent iro affidavit of collegiality.
Labour Law-viz arbitration re conciliation iro Certificate of No Settlement.
Procedural Law-viz rules of evidence re findings of fact iro assessment of evidence.
Procedural Law-viz findings of fact re assessment of evidence iro conduct resulting in estoppel.
Procedural Law-viz findings of fact re assessment of evidence iro the doctrine of estoppel.
Procedural Law-viz appeal re arbitration proceedings.
Procedural Law-viz pleadings re nullity of proceedings.
Procedural Law-viz final orders re procedural irregularities iro discretion of the court to dismiss a matter.
Procedural Law-viz final orders re procedural irregularities iro labour proceedings.
Procedural Law-viz citation re mis-citation iro name description.
Procedural Law-viz citation re name description iro trade name.
Labour Law-viz labour proceedings re procedural irregularities iro the principle that labour disputes should not be resolved on technicalities.
Procedural Law-viz cause of action re form of proceedings iro arbitration proceedings.
Procedural Law-viz citation re labour proceedings.
Labour law-viz labour proceedings re the rule that labour disputes must not be determined on technicalities iro section 90 of the Labour Act [Chapter 28:01].
Procedural Law-viz jurisdiction re specialized courts iro section 90A of the Labour Act [Chapter 28:01].
Procedural Law-viz jurisdiction re jurisdictional powers iro labour proceedings.
Procedural Law-viz jurisdictional authority re labour proceedings iro section 90 of the Labour Act [Chapter 28:01].
Procedural Law-viz jurisdiction re jurisdictional powers iro section 90A of the Labour Act [Chapter 28:01].
Procedural Law-viz pleadings re amendment of pleadings iro amendment of party citation.
Procedural Law-viz pleadings re amendment to pleadings iro amendment of party citation.
Procedural Law-viz res judicata re issue estoppel.
Procedural Law-viz jurisdiction re functus officio.
Procedural Law-viz final orders re judicial misdirection iro mero motu review of a court's own judgment.
Procedural Law-viz final orders re relief in conflict with an extant court order.
Procedural Law-viz final orders re the final and conclusive rule iro effect of conflicting judgements.
Procedural Law-viz jurisdiction re arbitration proceedings.
Procedural Law-viz pleadings re amendment of pleadings iro arbitration proceedings.
Procedural Law-viz pleadings re amendment to pleadings iro arbitration proceedings.
Procedural Law-viz final orders re case law authorities iro contextual background of the matters.
Procedural Law-viz final orders re judicial precedent iro factual background of the matters.
Procedural Law-viz cause of action re manner of proceedings iro arbitration proceedings.
Procedural Law-viz the audi alteram partem rule.
Procedural Law-viz pleadings re nullity of proceedings.
Procedural Law-viz final orders re procedural irregularities iro labour proceedings.
Labour Law-viz reinstatement order re damages in lieu of reinstatement.
Damages-viz labour proceedings re damages in lieu of reinstatement.
Procedural Law-viz final orders re procedural irregularities iro discretion of the court to remit a matter.
Procedural Law-viz costs re interlocutory proceedings.
Procedural Law-viz costs re interim proceedings.
Procedural Law-viz jurisdiction re judicial deference iro remittal.
Procedural Law-viz jurisdiction re judicial deference iro remittal order.
Procedural Law-viz citation re multiple litigants re citation by reference.
Procedural Law-viz founding affidavit re deponent iro citation by reference.
Procedural Law-viz founding affidavit re representative authority iro citation by reference.
Procedural Law-viz locus standi re legal capacity to institute legal proceedings iro citation by reference.
Procedural Law-viz locus standi re labour proceedings iro citation by reference.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement.
The appeal was initially set-down for hearing on 11 September 2020 whereupon it was removed from the roll by consent of the parties to consider placing it before a full Bench comprising a panel of five (5) judges in terms of section 3 of the Supreme Court Act [Chapter 7:13].
Upon due consideration of the nature and complexity of the appeal, the learned presiding judge determined that there was no need to set up a full Bench comprising five (5) judges to deliberate over the appeal as it was eminently capable of resolution by a three panel Bench as previously constituted.
The appeal was then set down for hearing before the same panel of judges on 16 June 2021.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement.
The appeal was initially set-down for hearing on 11 September 2020 whereupon it was removed from the roll by consent of the parties to consider placing it before a full Bench comprising a panel of five (5) judges in terms of section 3 of the Supreme Court Act [Chapter 7:13].
Upon due consideration of the nature and complexity of the appeal, the learned presiding judge determined that there was no need to set up a full Bench comprising five (5) judges to deliberate over the appeal as it was eminently capable of resolution by a three panel Bench as previously constituted.
The appeal was then set down for hearing before the same panel of judges on 16 June 2021.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
Section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA..., said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”...,.
It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA..., said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”...,.
It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17...,.
It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17...,.
It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
Counsel for the appellants ..., argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case.
The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
It is pertinent to note at this juncture, that, the judgment appealed against in this case is, to a large extent, grounded on legal technicalities.
A lot of industry has been expended by learned counsel in placing reliance on procedural legal technicalities that are best suited for courts of law rather than arbitral tribunals.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law. To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion provided that justice can be attained without doing violence to the basic tenets of natural justice.
Likewise, section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Because of their legal training and the involvement of lawyers, Labour Court judges often stray into the morass of legal jargon and technicalities much to the bewilderment of the unsophisticated litigants. This unwelcome tendency has the undesirable effect of mystifying industrial legal proceedings thereby clouding the dispensation of industrial justice. It therefore acts as a barrier to accessing industrial justice.
This prompted McNALLY JA in Dalny Mine v Banda 1999 (1) ZLR 220 (S) to remark that:
“As a general rule, it seems to me undesirable that labour relations matters should be decided on the basis of procedural irregularities. By this, I do not mean that such irregularities should be ignored. I mean that such irregularities should be put right.”
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA had occasion to make similar remarks when he said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”
It is therefore clear from the authorities, that, the primary function of the court a quo is to do simple justice between the parties without dwelling too much on legal technicalities. It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
On that score, I now proceed to determine whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
WHETHER OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE ENTIRE PROCEEDINGS A NULLITY
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17 and a host of other cases cited by the respondent from both local and foreign jurisdictions. It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
The main distinguishing feature in this case is that arbitral proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court of law are commenced by summons drafted by the plaintiff. On the other hand, arbitral proceedings are commenced by a reference drafted by the conciliator in terms of the Labour Act. The claimant has no control over the drafting of the reference to arbitration whereas the plaintiff has full control over the drafting of the summons.
It would therefore seem unfair and unjust to penalise the claimant for the sins of the conciliator in crafting the reference.
Counsel for the appellants further argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case. The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
It is common cause, that, taking a cue from laid down precedent, the appellants successfully applied to the court a quo, before the same judge, for an amendment of the citation of the respondent's name. He granted the order on 31 May 2018 under order number LC/MD/ORD/78/2018. It reads:
“It is ordered that:
1. The application to amend the citation of the respondent be and is hereby granted.
2. Each party is to bear its own costs.”
It is amazing, that, when the matter came up for hearing on the merits, the same judge held that the proceedings before the arbitrator were a nullity because the appellants had sued a non-existent person.
This was clearly a serious misdirection considering that the honourable judge was bound by his earlier order that had regularised the incorrect citation of the respondent.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
It is pertinent to note at this juncture, that, the judgment appealed against in this case is, to a large extent, grounded on legal technicalities.
A lot of industry has been expended by learned counsel in placing reliance on procedural legal technicalities that are best suited for courts of law rather than arbitral tribunals.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law. To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion provided that justice can be attained without doing violence to the basic tenets of natural justice.
Likewise, section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Because of their legal training and the involvement of lawyers, Labour Court judges often stray into the morass of legal jargon and technicalities much to the bewilderment of the unsophisticated litigants. This unwelcome tendency has the undesirable effect of mystifying industrial legal proceedings thereby clouding the dispensation of industrial justice. It therefore acts as a barrier to accessing industrial justice.
This prompted McNALLY JA in Dalny Mine v Banda 1999 (1) ZLR 220 (S) to remark that:
“As a general rule, it seems to me undesirable that labour relations matters should be decided on the basis of procedural irregularities. By this, I do not mean that such irregularities should be ignored. I mean that such irregularities should be put right.”
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA had occasion to make similar remarks when he said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”
It is therefore clear from the authorities, that, the primary function of the court a quo is to do simple justice between the parties without dwelling too much on legal technicalities. It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
On that score, I now proceed to determine whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
WHETHER OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE ENTIRE PROCEEDINGS A NULLITY
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17 and a host of other cases cited by the respondent from both local and foreign jurisdictions. It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
The main distinguishing feature in this case is that arbitral proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court of law are commenced by summons drafted by the plaintiff. On the other hand, arbitral proceedings are commenced by a reference drafted by the conciliator in terms of the Labour Act. The claimant has no control over the drafting of the reference to arbitration whereas the plaintiff has full control over the drafting of the summons.
It would therefore seem unfair and unjust to penalise the claimant for the sins of the conciliator in crafting the reference.
Counsel for the appellants further argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case. The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
It is common cause, that, taking a cue from laid down precedent, the appellants successfully applied to the court a quo, before the same judge, for an amendment of the citation of the respondent's name. He granted the order on 31 May 2018 under order number LC/MD/ORD/78/2018. It reads:
“It is ordered that:
1. The application to amend the citation of the respondent be and is hereby granted.
2. Each party is to bear its own costs.”
It is amazing, that, when the matter came up for hearing on the merits, the same judge held that the proceedings before the arbitrator were a nullity because the appellants had sued a non-existent person.
This was clearly a serious misdirection considering that the honourable judge was bound by his earlier order that had regularised the incorrect citation of the respondent.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
It is pertinent to note at this juncture, that, the judgment appealed against in this case is, to a large extent, grounded on legal technicalities.
A lot of industry has been expended by learned counsel in placing reliance on procedural legal technicalities that are best suited for courts of law rather than arbitral tribunals.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law. To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion provided that justice can be attained without doing violence to the basic tenets of natural justice.
Likewise, section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Because of their legal training and the involvement of lawyers, Labour Court judges often stray into the morass of legal jargon and technicalities much to the bewilderment of the unsophisticated litigants. This unwelcome tendency has the undesirable effect of mystifying industrial legal proceedings thereby clouding the dispensation of industrial justice. It therefore acts as a barrier to accessing industrial justice.
This prompted McNALLY JA in Dalny Mine v Banda 1999 (1) ZLR 220 (S) to remark that:
“As a general rule, it seems to me undesirable that labour relations matters should be decided on the basis of procedural irregularities. By this, I do not mean that such irregularities should be ignored. I mean that such irregularities should be put right.”
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA had occasion to make similar remarks when he said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”
It is therefore clear from the authorities, that, the primary function of the court a quo is to do simple justice between the parties without dwelling too much on legal technicalities. It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
On that score, I now proceed to determine whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
WHETHER OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE ENTIRE PROCEEDINGS A NULLITY
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17 and a host of other cases cited by the respondent from both local and foreign jurisdictions. It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
The main distinguishing feature in this case is that arbitral proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court of law are commenced by summons drafted by the plaintiff. On the other hand, arbitral proceedings are commenced by a reference drafted by the conciliator in terms of the Labour Act. The claimant has no control over the drafting of the reference to arbitration whereas the plaintiff has full control over the drafting of the summons.
It would therefore seem unfair and unjust to penalise the claimant for the sins of the conciliator in crafting the reference.
Counsel for the appellants further argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case. The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
It is common cause, that, taking a cue from laid down precedent, the appellants successfully applied to the court a quo, before the same judge, for an amendment of the citation of the respondent's name. He granted the order on 31 May 2018 under order number LC/MD/ORD/78/2018. It reads:
“It is ordered that:
1. The application to amend the citation of the respondent be and is hereby granted.
2. Each party is to bear its own costs.”
It is amazing, that, when the matter came up for hearing on the merits, the same judge held that the proceedings before the arbitrator were a nullity because the appellants had sued a non-existent person.
This was clearly a serious misdirection considering that the honourable judge was bound by his earlier order that had regularised the incorrect citation of the respondent.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
It is pertinent to note at this juncture, that, the judgment appealed against in this case is, to a large extent, grounded on legal technicalities.
A lot of industry has been expended by learned counsel in placing reliance on procedural legal technicalities that are best suited for courts of law rather than arbitral tribunals.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law. To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion provided that justice can be attained without doing violence to the basic tenets of natural justice.
Likewise, section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Because of their legal training and the involvement of lawyers, Labour Court judges often stray into the morass of legal jargon and technicalities much to the bewilderment of the unsophisticated litigants. This unwelcome tendency has the undesirable effect of mystifying industrial legal proceedings thereby clouding the dispensation of industrial justice. It therefore acts as a barrier to accessing industrial justice.
This prompted McNALLY JA in Dalny Mine v Banda 1999 (1) ZLR 220 (S) to remark that:
“As a general rule, it seems to me undesirable that labour relations matters should be decided on the basis of procedural irregularities. By this, I do not mean that such irregularities should be ignored. I mean that such irregularities should be put right.”
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA had occasion to make similar remarks when he said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”
It is therefore clear from the authorities, that, the primary function of the court a quo is to do simple justice between the parties without dwelling too much on legal technicalities. It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
On that score, I now proceed to determine whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
WHETHER OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE ENTIRE PROCEEDINGS A NULLITY
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17 and a host of other cases cited by the respondent from both local and foreign jurisdictions. It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
The main distinguishing feature in this case is that arbitral proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court of law are commenced by summons drafted by the plaintiff. On the other hand, arbitral proceedings are commenced by a reference drafted by the conciliator in terms of the Labour Act. The claimant has no control over the drafting of the reference to arbitration whereas the plaintiff has full control over the drafting of the summons.
It would therefore seem unfair and unjust to penalise the claimant for the sins of the conciliator in crafting the reference.
Counsel for the appellants further argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case. The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
It is common cause, that, taking a cue from laid down precedent, the appellants successfully applied to the court a quo, before the same judge, for an amendment of the citation of the respondent's name. He granted the order on 31 May 2018 under order number LC/MD/ORD/78/2018. It reads:
“It is ordered that:
1. The application to amend the citation of the respondent be and is hereby granted.
2. Each party is to bear its own costs.”
It is amazing, that, when the matter came up for hearing on the merits, the same judge held that the proceedings before the arbitrator were a nullity because the appellants had sued a non-existent person.
This was clearly a serious misdirection considering that the honourable judge was bound by his earlier order that had regularised the incorrect citation of the respondent.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
It is pertinent to note at this juncture, that, the judgment appealed against in this case is, to a large extent, grounded on legal technicalities.
A lot of industry has been expended by learned counsel in placing reliance on procedural legal technicalities that are best suited for courts of law rather than arbitral tribunals.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law. To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion provided that justice can be attained without doing violence to the basic tenets of natural justice.
Likewise, section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Because of their legal training and the involvement of lawyers, Labour Court judges often stray into the morass of legal jargon and technicalities much to the bewilderment of the unsophisticated litigants. This unwelcome tendency has the undesirable effect of mystifying industrial legal proceedings thereby clouding the dispensation of industrial justice. It therefore acts as a barrier to accessing industrial justice.
This prompted McNALLY JA in Dalny Mine v Banda 1999 (1) ZLR 220 (S) to remark that:
“As a general rule, it seems to me undesirable that labour relations matters should be decided on the basis of procedural irregularities. By this, I do not mean that such irregularities should be ignored. I mean that such irregularities should be put right.”
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA had occasion to make similar remarks when he said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”
It is therefore clear from the authorities, that, the primary function of the court a quo is to do simple justice between the parties without dwelling too much on legal technicalities. It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
On that score, I now proceed to determine whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
WHETHER OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE ENTIRE PROCEEDINGS A NULLITY
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17 and a host of other cases cited by the respondent from both local and foreign jurisdictions. It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
The main distinguishing feature in this case is that arbitral proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court of law are commenced by summons drafted by the plaintiff. On the other hand, arbitral proceedings are commenced by a reference drafted by the conciliator in terms of the Labour Act. The claimant has no control over the drafting of the reference to arbitration whereas the plaintiff has full control over the drafting of the summons.
It would therefore seem unfair and unjust to penalise the claimant for the sins of the conciliator in crafting the reference.
Counsel for the appellants further argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case. The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
It is common cause, that, taking a cue from laid down precedent, the appellants successfully applied to the court a quo, before the same judge, for an amendment of the citation of the respondent's name. He granted the order on 31 May 2018 under order number LC/MD/ORD/78/2018. It reads:
“It is ordered that:
1. The application to amend the citation of the respondent be and is hereby granted.
2. Each party is to bear its own costs.”
It is amazing, that, when the matter came up for hearing on the merits, the same judge held that the proceedings before the arbitrator were a nullity because the appellants had sued a non-existent person.
This was clearly a serious misdirection considering that the honourable judge was bound by his earlier order that had regularised the incorrect citation of the respondent.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
It is pertinent to note at this juncture, that, the judgment appealed against in this case is, to a large extent, grounded on legal technicalities.
A lot of industry has been expended by learned counsel in placing reliance on procedural legal technicalities that are best suited for courts of law rather than arbitral tribunals.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law. To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion provided that justice can be attained without doing violence to the basic tenets of natural justice.
Likewise, section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Because of their legal training and the involvement of lawyers, Labour Court judges often stray into the morass of legal jargon and technicalities much to the bewilderment of the unsophisticated litigants. This unwelcome tendency has the undesirable effect of mystifying industrial legal proceedings thereby clouding the dispensation of industrial justice. It therefore acts as a barrier to accessing industrial justice.
This prompted McNALLY JA in Dalny Mine v Banda 1999 (1) ZLR 220 (S) to remark that:
“As a general rule, it seems to me undesirable that labour relations matters should be decided on the basis of procedural irregularities. By this, I do not mean that such irregularities should be ignored. I mean that such irregularities should be put right.”
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA had occasion to make similar remarks when he said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”
It is therefore clear from the authorities, that, the primary function of the court a quo is to do simple justice between the parties without dwelling too much on legal technicalities. It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
On that score, I now proceed to determine whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
WHETHER OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE ENTIRE PROCEEDINGS A NULLITY
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17 and a host of other cases cited by the respondent from both local and foreign jurisdictions. It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
The main distinguishing feature in this case is that arbitral proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court of law are commenced by summons drafted by the plaintiff. On the other hand, arbitral proceedings are commenced by a reference drafted by the conciliator in terms of the Labour Act. The claimant has no control over the drafting of the reference to arbitration whereas the plaintiff has full control over the drafting of the summons.
It would therefore seem unfair and unjust to penalise the claimant for the sins of the conciliator in crafting the reference.
Counsel for the appellants further argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case. The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
It is common cause, that, taking a cue from laid down precedent, the appellants successfully applied to the court a quo, before the same judge, for an amendment of the citation of the respondent's name. He granted the order on 31 May 2018 under order number LC/MD/ORD/78/2018. It reads:
“It is ordered that:
1. The application to amend the citation of the respondent be and is hereby granted.
2. Each party is to bear its own costs.”
It is amazing, that, when the matter came up for hearing on the merits, the same judge held that the proceedings before the arbitrator were a nullity because the appellants had sued a non-existent person.
This was clearly a serious misdirection considering that the honourable judge was bound by his earlier order that had regularised the incorrect citation of the respondent.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
It is pertinent to note at this juncture, that, the judgment appealed against in this case is, to a large extent, grounded on legal technicalities.
A lot of industry has been expended by learned counsel in placing reliance on procedural legal technicalities that are best suited for courts of law rather than arbitral tribunals.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law. To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion provided that justice can be attained without doing violence to the basic tenets of natural justice.
Likewise, section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Because of their legal training and the involvement of lawyers, Labour Court judges often stray into the morass of legal jargon and technicalities much to the bewilderment of the unsophisticated litigants. This unwelcome tendency has the undesirable effect of mystifying industrial legal proceedings thereby clouding the dispensation of industrial justice. It therefore acts as a barrier to accessing industrial justice.
This prompted McNALLY JA in Dalny Mine v Banda 1999 (1) ZLR 220 (S) to remark that:
“As a general rule, it seems to me undesirable that labour relations matters should be decided on the basis of procedural irregularities. By this, I do not mean that such irregularities should be ignored. I mean that such irregularities should be put right.”
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA had occasion to make similar remarks when he said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”
It is therefore clear from the authorities, that, the primary function of the court a quo is to do simple justice between the parties without dwelling too much on legal technicalities. It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
On that score, I now proceed to determine whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
WHETHER OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE ENTIRE PROCEEDINGS A NULLITY
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17 and a host of other cases cited by the respondent from both local and foreign jurisdictions. It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
The main distinguishing feature in this case is that arbitral proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court of law are commenced by summons drafted by the plaintiff. On the other hand, arbitral proceedings are commenced by a reference drafted by the conciliator in terms of the Labour Act. The claimant has no control over the drafting of the reference to arbitration whereas the plaintiff has full control over the drafting of the summons.
It would therefore seem unfair and unjust to penalise the claimant for the sins of the conciliator in crafting the reference.
Counsel for the appellants further argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case. The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
It is common cause, that, taking a cue from laid down precedent, the appellants successfully applied to the court a quo, before the same judge, for an amendment of the citation of the respondent's name. He granted the order on 31 May 2018 under order number LC/MD/ORD/78/2018. It reads:
“It is ordered that:
1. The application to amend the citation of the respondent be and is hereby granted.
2. Each party is to bear its own costs.”
It is amazing, that, when the matter came up for hearing on the merits, the same judge held that the proceedings before the arbitrator were a nullity because the appellants had sued a non-existent person.
This was clearly a serious misdirection considering that the honourable judge was bound by his earlier order that had regularised the incorrect citation of the respondent....,.
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held, that, apart from E. Mapondera, the other 60 employees were not properly before the arbitrator. He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings.
It is rather ironic, if not irrational, that, the respondent sought validation of dismissals that were carried out in the name of a non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection, that, after holding that the proceedings before the arbitrator were a nullity, the learned judge proceeded to determine the appeal on the merits. This was despite his ruling that there was no respondent before him.
What escaped the learned judge a quo's attention is that the two precedents he relied upon…, above were determined by the High Court in terms of the High Court Rules, which are not strictly applicable to arbitration proceedings in terms of the Labour Act.
Again, the learned judge failed to distinguish arbitral proceedings from trial proceedings in a court of law.
Conscious of his obligation to determine the complaint of the 60 other employees by reference, the arbitrator properly sought and obtained clarification on the identities of these other employees.
That clarification was communicated to the respondent thereby giving it an opportunity to be heard on the authenticity of the list of names provided. There was therefore no prejudice to the respondent, real or imagined.
In my view, the arbitrator did not misdirect himself in any way as that was the correct thing to do to facilitate the proper discharge of his mandate in terms of the reference.
Thus, again, the learned judge a quo misdirected himself and fell into error by holding that the other 60 appellants were not properly before the arbitrator.
Having come to the conclusion that the 60 other employees were not properly before the arbitrator, it was remiss of the learned judge a quo to proceed to deal with the merits of the appeal before him.
He, again, erred in this respect.
The proceedings beyond that finding were therefore a legal nullity. They cannot stand in light of the gross misdirection by the learned judge a quo.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
It is pertinent to note at this juncture, that, the judgment appealed against in this case is, to a large extent, grounded on legal technicalities.
A lot of industry has been expended by learned counsel in placing reliance on procedural legal technicalities that are best suited for courts of law rather than arbitral tribunals.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law. To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion provided that justice can be attained without doing violence to the basic tenets of natural justice.
Likewise, section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Because of their legal training and the involvement of lawyers, Labour Court judges often stray into the morass of legal jargon and technicalities much to the bewilderment of the unsophisticated litigants. This unwelcome tendency has the undesirable effect of mystifying industrial legal proceedings thereby clouding the dispensation of industrial justice. It therefore acts as a barrier to accessing industrial justice.
This prompted McNALLY JA in Dalny Mine v Banda 1999 (1) ZLR 220 (S) to remark that:
“As a general rule, it seems to me undesirable that labour relations matters should be decided on the basis of procedural irregularities. By this, I do not mean that such irregularities should be ignored. I mean that such irregularities should be put right.”
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA had occasion to make similar remarks when he said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”
It is therefore clear from the authorities, that, the primary function of the court a quo is to do simple justice between the parties without dwelling too much on legal technicalities. It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
On that score, I now proceed to determine whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
WHETHER OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE ENTIRE PROCEEDINGS A NULLITY
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17 and a host of other cases cited by the respondent from both local and foreign jurisdictions. It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
The main distinguishing feature in this case is that arbitral proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court of law are commenced by summons drafted by the plaintiff. On the other hand, arbitral proceedings are commenced by a reference drafted by the conciliator in terms of the Labour Act. The claimant has no control over the drafting of the reference to arbitration whereas the plaintiff has full control over the drafting of the summons.
It would therefore seem unfair and unjust to penalise the claimant for the sins of the conciliator in crafting the reference.
Counsel for the appellants further argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case. The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
It is common cause, that, taking a cue from laid down precedent, the appellants successfully applied to the court a quo, before the same judge, for an amendment of the citation of the respondent's name. He granted the order on 31 May 2018 under order number LC/MD/ORD/78/2018. It reads:
“It is ordered that:
1. The application to amend the citation of the respondent be and is hereby granted.
2. Each party is to bear its own costs.”
It is amazing, that, when the matter came up for hearing on the merits, the same judge held that the proceedings before the arbitrator were a nullity because the appellants had sued a non-existent person.
This was clearly a serious misdirection considering that the honourable judge was bound by his earlier order that had regularised the incorrect citation of the respondent.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
It is pertinent to note at this juncture, that, the judgment appealed against in this case is, to a large extent, grounded on legal technicalities.
A lot of industry has been expended by learned counsel in placing reliance on procedural legal technicalities that are best suited for courts of law rather than arbitral tribunals.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law. To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion provided that justice can be attained without doing violence to the basic tenets of natural justice.
Likewise, section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Because of their legal training and the involvement of lawyers, Labour Court judges often stray into the morass of legal jargon and technicalities much to the bewilderment of the unsophisticated litigants. This unwelcome tendency has the undesirable effect of mystifying industrial legal proceedings thereby clouding the dispensation of industrial justice. It therefore acts as a barrier to accessing industrial justice.
This prompted McNALLY JA in Dalny Mine v Banda 1999 (1) ZLR 220 (S) to remark that:
“As a general rule, it seems to me undesirable that labour relations matters should be decided on the basis of procedural irregularities. By this, I do not mean that such irregularities should be ignored. I mean that such irregularities should be put right.”
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA had occasion to make similar remarks when he said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”
It is therefore clear from the authorities, that, the primary function of the court a quo is to do simple justice between the parties without dwelling too much on legal technicalities. It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
On that score, I now proceed to determine whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
WHETHER OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE ENTIRE PROCEEDINGS A NULLITY
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17 and a host of other cases cited by the respondent from both local and foreign jurisdictions. It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
The main distinguishing feature in this case is that arbitral proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court of law are commenced by summons drafted by the plaintiff. On the other hand, arbitral proceedings are commenced by a reference drafted by the conciliator in terms of the Labour Act. The claimant has no control over the drafting of the reference to arbitration whereas the plaintiff has full control over the drafting of the summons.
It would therefore seem unfair and unjust to penalise the claimant for the sins of the conciliator in crafting the reference.
Counsel for the appellants further argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case. The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
It is common cause, that, taking a cue from laid down precedent, the appellants successfully applied to the court a quo, before the same judge, for an amendment of the citation of the respondent's name. He granted the order on 31 May 2018 under order number LC/MD/ORD/78/2018. It reads:
“It is ordered that:
1. The application to amend the citation of the respondent be and is hereby granted.
2. Each party is to bear its own costs.”
It is amazing, that, when the matter came up for hearing on the merits, the same judge held that the proceedings before the arbitrator were a nullity because the appellants had sued a non-existent person.
This was clearly a serious misdirection considering that the honourable judge was bound by his earlier order that had regularised the incorrect citation of the respondent.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
It is pertinent to note at this juncture, that, the judgment appealed against in this case is, to a large extent, grounded on legal technicalities.
A lot of industry has been expended by learned counsel in placing reliance on procedural legal technicalities that are best suited for courts of law rather than arbitral tribunals.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law. To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion provided that justice can be attained without doing violence to the basic tenets of natural justice.
Likewise, section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Because of their legal training and the involvement of lawyers, Labour Court judges often stray into the morass of legal jargon and technicalities much to the bewilderment of the unsophisticated litigants. This unwelcome tendency has the undesirable effect of mystifying industrial legal proceedings thereby clouding the dispensation of industrial justice. It therefore acts as a barrier to accessing industrial justice.
This prompted McNALLY JA in Dalny Mine v Banda 1999 (1) ZLR 220 (S) to remark that:
“As a general rule, it seems to me undesirable that labour relations matters should be decided on the basis of procedural irregularities. By this, I do not mean that such irregularities should be ignored. I mean that such irregularities should be put right.”
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA had occasion to make similar remarks when he said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”
It is therefore clear from the authorities, that, the primary function of the court a quo is to do simple justice between the parties without dwelling too much on legal technicalities. It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
On that score, I now proceed to determine whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
WHETHER OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE ENTIRE PROCEEDINGS A NULLITY
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17 and a host of other cases cited by the respondent from both local and foreign jurisdictions. It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
The main distinguishing feature in this case is that arbitral proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court of law are commenced by summons drafted by the plaintiff. On the other hand, arbitral proceedings are commenced by a reference drafted by the conciliator in terms of the Labour Act. The claimant has no control over the drafting of the reference to arbitration whereas the plaintiff has full control over the drafting of the summons.
It would therefore seem unfair and unjust to penalise the claimant for the sins of the conciliator in crafting the reference.
Counsel for the appellants further argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case. The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
It is common cause, that, taking a cue from laid down precedent, the appellants successfully applied to the court a quo, before the same judge, for an amendment of the citation of the respondent's name. He granted the order on 31 May 2018 under order number LC/MD/ORD/78/2018. It reads:
“It is ordered that:
1. The application to amend the citation of the respondent be and is hereby granted.
2. Each party is to bear its own costs.”
It is amazing, that, when the matter came up for hearing on the merits, the same judge held that the proceedings before the arbitrator were a nullity because the appellants had sued a non-existent person.
This was clearly a serious misdirection considering that the honourable judge was bound by his earlier order that had regularised the incorrect citation of the respondent.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
It is pertinent to note at this juncture, that, the judgment appealed against in this case is, to a large extent, grounded on legal technicalities.
A lot of industry has been expended by learned counsel in placing reliance on procedural legal technicalities that are best suited for courts of law rather than arbitral tribunals.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law. To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion provided that justice can be attained without doing violence to the basic tenets of natural justice.
Likewise, section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Because of their legal training and the involvement of lawyers, Labour Court judges often stray into the morass of legal jargon and technicalities much to the bewilderment of the unsophisticated litigants. This unwelcome tendency has the undesirable effect of mystifying industrial legal proceedings thereby clouding the dispensation of industrial justice. It therefore acts as a barrier to accessing industrial justice.
This prompted McNALLY JA in Dalny Mine v Banda 1999 (1) ZLR 220 (S) to remark that:
“As a general rule, it seems to me undesirable that labour relations matters should be decided on the basis of procedural irregularities. By this, I do not mean that such irregularities should be ignored. I mean that such irregularities should be put right.”
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA had occasion to make similar remarks when he said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”
It is therefore clear from the authorities, that, the primary function of the court a quo is to do simple justice between the parties without dwelling too much on legal technicalities. It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
On that score, I now proceed to determine whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
WHETHER OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE ENTIRE PROCEEDINGS A NULLITY
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17 and a host of other cases cited by the respondent from both local and foreign jurisdictions. It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
The main distinguishing feature in this case is that arbitral proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court of law are commenced by summons drafted by the plaintiff. On the other hand, arbitral proceedings are commenced by a reference drafted by the conciliator in terms of the Labour Act. The claimant has no control over the drafting of the reference to arbitration whereas the plaintiff has full control over the drafting of the summons.
It would therefore seem unfair and unjust to penalise the claimant for the sins of the conciliator in crafting the reference.
Counsel for the appellants further argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case. The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
It is common cause, that, taking a cue from laid down precedent, the appellants successfully applied to the court a quo, before the same judge, for an amendment of the citation of the respondent's name. He granted the order on 31 May 2018 under order number LC/MD/ORD/78/2018. It reads:
“It is ordered that:
1. The application to amend the citation of the respondent be and is hereby granted.
2. Each party is to bear its own costs.”
It is amazing, that, when the matter came up for hearing on the merits, the same judge held that the proceedings before the arbitrator were a nullity because the appellants had sued a non-existent person.
This was clearly a serious misdirection considering that the honourable judge was bound by his earlier order that had regularised the incorrect citation of the respondent.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held that apart from E. Mapondera the other 60 employees were not properly before the arbitrator. He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings.
It is rather ironic, if not irrational, that, the respondent sought validation of dismissals that were carried out in the name of a non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection, that, after holding that the proceedings before the arbitrator were a nullity, the learned judge proceeded to determine the appeal on the merits.
This was despite his ruling that there was no respondent before him....,.
Having come to the conclusion that the 60 other employees were not properly before the arbitrator, it was remiss of the learned judge a quo to proceed to deal with the merits of the appeal before him.
He, again, erred in this respect.
The proceedings beyond that finding were therefore a legal nullity. They cannot stand in light of the gross misdirection by the learned judge a quo.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held that apart from E. Mapondera the other 60 employees were not properly before the arbitrator. He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings.
It is rather ironic, if not irrational, that, the respondent sought validation of dismissals that were carried out in the name of a non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection, that, after holding that the proceedings before the arbitrator were a nullity, the learned judge proceeded to determine the appeal on the merits.
This was despite his ruling that there was no respondent before him....,.
Having come to the conclusion that the 60 other employees were not properly before the arbitrator, it was remiss of the learned judge a quo to proceed to deal with the merits of the appeal before him.
He, again, erred in this respect.
The proceedings beyond that finding were therefore a legal nullity. They cannot stand in light of the gross misdirection by the learned judge a quo.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held that apart from E. Mapondera the other 60 employees were not properly before the arbitrator. He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings.
It is rather ironic, if not irrational, that, the respondent sought validation of dismissals that were carried out in the name of a non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection, that, after holding that the proceedings before the arbitrator were a nullity, the learned judge proceeded to determine the appeal on the merits.
This was despite his ruling that there was no respondent before him....,.
Having come to the conclusion that the 60 other employees were not properly before the arbitrator, it was remiss of the learned judge a quo to proceed to deal with the merits of the appeal before him.
He, again, erred in this respect.
The proceedings beyond that finding were therefore a legal nullity. They cannot stand in light of the gross misdirection by the learned judge a quo.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held that apart from E. Mapondera the other 60 employees were not properly before the arbitrator.
He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings....,.
What escaped the learned judge a quo's attention is that the two precedents he relied upon…, above were determined by the High Court in terms of the High Court Rules, which are not strictly applicable to arbitration proceedings in terms of the Labour Act....,.
The learned judge failed to distinguish arbitral proceedings from trial proceedings in a court of law.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held, that, apart from E. Mapondera, the other 60 employees were not properly before the arbitrator. He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings.
It is rather ironic, if not irrational, that, the respondent sought validation of dismissals that were carried out in the name of a non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection, that, after holding that the proceedings before the arbitrator were a nullity, the learned judge proceeded to determine the appeal on the merits. This was despite his ruling that there was no respondent before him.
What escaped the learned judge a quo's attention is that the two precedents he relied upon…, above were determined by the High Court in terms of the High Court Rules, which are not strictly applicable to arbitration proceedings in terms of the Labour Act.
Again, the learned judge failed to distinguish arbitral proceedings from trial proceedings in a court of law.
Conscious of his obligation to determine the complaint of the 60 other employees by reference, the arbitrator properly sought and obtained clarification on the identities of these other employees.
That clarification was communicated to the respondent thereby giving it an opportunity to be heard on the authenticity of the list of names provided. There was therefore no prejudice to the respondent, real or imagined.
In my view, the arbitrator did not misdirect himself in any way as that was the correct thing to do to facilitate the proper discharge of his mandate in terms of the reference.
Thus, again, the learned judge a quo misdirected himself and fell into error by holding that the other 60 appellants were not properly before the arbitrator.
Having come to the conclusion that the 60 other employees were not properly before the arbitrator, it was remiss of the learned judge a quo to proceed to deal with the merits of the appeal before him.
He, again, erred in this respect.
The proceedings beyond that finding were therefore a legal nullity. They cannot stand in light of the gross misdirection by the learned judge a quo.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held, that, apart from E. Mapondera, the other 60 employees were not properly before the arbitrator. He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings.
It is rather ironic, if not irrational, that, the respondent sought validation of dismissals that were carried out in the name of a non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection, that, after holding that the proceedings before the arbitrator were a nullity, the learned judge proceeded to determine the appeal on the merits. This was despite his ruling that there was no respondent before him.
What escaped the learned judge a quo's attention is that the two precedents he relied upon…, above were determined by the High Court in terms of the High Court Rules, which are not strictly applicable to arbitration proceedings in terms of the Labour Act.
Again, the learned judge failed to distinguish arbitral proceedings from trial proceedings in a court of law.
Conscious of his obligation to determine the complaint of the 60 other employees by reference, the arbitrator properly sought and obtained clarification on the identities of these other employees.
That clarification was communicated to the respondent thereby giving it an opportunity to be heard on the authenticity of the list of names provided. There was therefore no prejudice to the respondent, real or imagined.
In my view, the arbitrator did not misdirect himself in any way as that was the correct thing to do to facilitate the proper discharge of his mandate in terms of the reference.
Thus, again, the learned judge a quo misdirected himself and fell into error by holding that the other 60 appellants were not properly before the arbitrator.
Having come to the conclusion that the 60 other employees were not properly before the arbitrator, it was remiss of the learned judge a quo to proceed to deal with the merits of the appeal before him.
He, again, erred in this respect.
The proceedings beyond that finding were therefore a legal nullity. They cannot stand in light of the gross misdirection by the learned judge a quo.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held, that, apart from E. Mapondera, the other 60 employees were not properly before the arbitrator. He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings.
It is rather ironic, if not irrational, that, the respondent sought validation of dismissals that were carried out in the name of a non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection, that, after holding that the proceedings before the arbitrator were a nullity, the learned judge proceeded to determine the appeal on the merits. This was despite his ruling that there was no respondent before him.
What escaped the learned judge a quo's attention is that the two precedents he relied upon…, above were determined by the High Court in terms of the High Court Rules, which are not strictly applicable to arbitration proceedings in terms of the Labour Act.
Again, the learned judge failed to distinguish arbitral proceedings from trial proceedings in a court of law.
Conscious of his obligation to determine the complaint of the 60 other employees by reference, the arbitrator properly sought and obtained clarification on the identities of these other employees.
That clarification was communicated to the respondent thereby giving it an opportunity to be heard on the authenticity of the list of names provided. There was therefore no prejudice to the respondent, real or imagined.
In my view, the arbitrator did not misdirect himself in any way as that was the correct thing to do to facilitate the proper discharge of his mandate in terms of the reference.
Thus, again, the learned judge a quo misdirected himself and fell into error by holding that the other 60 appellants were not properly before the arbitrator.
Having come to the conclusion that the 60 other employees were not properly before the arbitrator, it was remiss of the learned judge a quo to proceed to deal with the merits of the appeal before him.
He, again, erred in this respect.
The proceedings beyond that finding were therefore a legal nullity. They cannot stand in light of the gross misdirection by the learned judge a quo.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held, that, apart from E. Mapondera, the other 60 employees were not properly before the arbitrator. He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings.
It is rather ironic, if not irrational, that, the respondent sought validation of dismissals that were carried out in the name of a non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection, that, after holding that the proceedings before the arbitrator were a nullity, the learned judge proceeded to determine the appeal on the merits. This was despite his ruling that there was no respondent before him.
What escaped the learned judge a quo's attention is that the two precedents he relied upon…, above were determined by the High Court in terms of the High Court Rules, which are not strictly applicable to arbitration proceedings in terms of the Labour Act.
Again, the learned judge failed to distinguish arbitral proceedings from trial proceedings in a court of law.
Conscious of his obligation to determine the complaint of the 60 other employees by reference, the arbitrator properly sought and obtained clarification on the identities of these other employees.
That clarification was communicated to the respondent thereby giving it an opportunity to be heard on the authenticity of the list of names provided. There was therefore no prejudice to the respondent, real or imagined.
In my view, the arbitrator did not misdirect himself in any way as that was the correct thing to do to facilitate the proper discharge of his mandate in terms of the reference.
Thus, again, the learned judge a quo misdirected himself and fell into error by holding that the other 60 appellants were not properly before the arbitrator.
Having come to the conclusion that the 60 other employees were not properly before the arbitrator, it was remiss of the learned judge a quo to proceed to deal with the merits of the appeal before him.
He, again, erred in this respect.
The proceedings beyond that finding were therefore a legal nullity. They cannot stand in light of the gross misdirection by the learned judge a quo.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held, that, apart from E. Mapondera, the other 60 employees were not properly before the arbitrator. He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings.
It is rather ironic, if not irrational, that, the respondent sought validation of dismissals that were carried out in the name of a non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection, that, after holding that the proceedings before the arbitrator were a nullity, the learned judge proceeded to determine the appeal on the merits. This was despite his ruling that there was no respondent before him.
What escaped the learned judge a quo's attention is that the two precedents he relied upon…, above were determined by the High Court in terms of the High Court Rules, which are not strictly applicable to arbitration proceedings in terms of the Labour Act.
Again, the learned judge failed to distinguish arbitral proceedings from trial proceedings in a court of law.
Conscious of his obligation to determine the complaint of the 60 other employees by reference, the arbitrator properly sought and obtained clarification on the identities of these other employees.
That clarification was communicated to the respondent thereby giving it an opportunity to be heard on the authenticity of the list of names provided. There was therefore no prejudice to the respondent, real or imagined.
In my view, the arbitrator did not misdirect himself in any way as that was the correct thing to do to facilitate the proper discharge of his mandate in terms of the reference.
Thus, again, the learned judge a quo misdirected himself and fell into error by holding that the other 60 appellants were not properly before the arbitrator.
Having come to the conclusion that the 60 other employees were not properly before the arbitrator, it was remiss of the learned judge a quo to proceed to deal with the merits of the appeal before him.
He, again, erred in this respect.
The proceedings beyond that finding were therefore a legal nullity. They cannot stand in light of the gross misdirection by the learned judge a quo.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held, that, apart from E. Mapondera, the other 60 employees were not properly before the arbitrator. He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings.
It is rather ironic, if not irrational, that, the respondent sought validation of dismissals that were carried out in the name of a non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection, that, after holding that the proceedings before the arbitrator were a nullity, the learned judge proceeded to determine the appeal on the merits. This was despite his ruling that there was no respondent before him.
What escaped the learned judge a quo's attention is that the two precedents he relied upon…, above were determined by the High Court in terms of the High Court Rules, which are not strictly applicable to arbitration proceedings in terms of the Labour Act.
Again, the learned judge failed to distinguish arbitral proceedings from trial proceedings in a court of law.
Conscious of his obligation to determine the complaint of the 60 other employees by reference, the arbitrator properly sought and obtained clarification on the identities of these other employees.
That clarification was communicated to the respondent thereby giving it an opportunity to be heard on the authenticity of the list of names provided. There was therefore no prejudice to the respondent, real or imagined.
In my view, the arbitrator did not misdirect himself in any way as that was the correct thing to do to facilitate the proper discharge of his mandate in terms of the reference.
Thus, again, the learned judge a quo misdirected himself and fell into error by holding that the other 60 appellants were not properly before the arbitrator.
Having come to the conclusion that the 60 other employees were not properly before the arbitrator, it was remiss of the learned judge a quo to proceed to deal with the merits of the appeal before him.
He, again, erred in this respect.
The proceedings beyond that finding were therefore a legal nullity. They cannot stand in light of the gross misdirection by the learned judge a quo.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held, that, apart from E. Mapondera, the other 60 employees were not properly before the arbitrator. He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings.
It is rather ironic, if not irrational, that, the respondent sought validation of dismissals that were carried out in the name of a non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection, that, after holding that the proceedings before the arbitrator were a nullity, the learned judge proceeded to determine the appeal on the merits. This was despite his ruling that there was no respondent before him.
What escaped the learned judge a quo's attention is that the two precedents he relied upon…, above were determined by the High Court in terms of the High Court Rules, which are not strictly applicable to arbitration proceedings in terms of the Labour Act.
Again, the learned judge failed to distinguish arbitral proceedings from trial proceedings in a court of law.
Conscious of his obligation to determine the complaint of the 60 other employees by reference, the arbitrator properly sought and obtained clarification on the identities of these other employees.
That clarification was communicated to the respondent thereby giving it an opportunity to be heard on the authenticity of the list of names provided. There was therefore no prejudice to the respondent, real or imagined.
In my view, the arbitrator did not misdirect himself in any way as that was the correct thing to do to facilitate the proper discharge of his mandate in terms of the reference.
Thus, again, the learned judge a quo misdirected himself and fell into error by holding that the other 60 appellants were not properly before the arbitrator.
Having come to the conclusion that the 60 other employees were not properly before the arbitrator, it was remiss of the learned judge a quo to proceed to deal with the merits of the appeal before him.
He, again, erred in this respect.
The proceedings beyond that finding were therefore a legal nullity. They cannot stand in light of the gross misdirection by the learned judge a quo.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
WHETHER OR NOT IT WAS PROPER FOR THE ARBITRAL TRIBUNAL TO ORDER REINSTATEMENT OF THE APPELLANTS WITHOUT AN ALTERNATIVE OF PAYMENT OF DAMAGES IN LIEU OF REINSTATEMENT
In view of the finding that the proceedings pertaining to the merits of the case were a legal nullity, it shall not be necessary to determine the above issue.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement....,.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
WHETHER OR NOT IT WAS PROPER FOR THE ARBITRAL TRIBUNAL TO ORDER REINSTATEMENT OF THE APPELLANTS WITHOUT AN ALTERNATIVE OF PAYMENT OF DAMAGES IN LIEU OF REINSTATEMENT
In view of the finding that the proceedings pertaining to the merits of the case were a legal nullity, it shall not be necessary to determine the above issue.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement.
The appeal was initially set-down for hearing on 11 September 2020 whereupon it was removed from the roll by consent of the parties to consider placing it before a full Bench comprising a panel of five (5) judges in terms of section 3 of the Supreme Court Act [Chapter 7:13].
Upon due consideration of the nature and complexity of the appeal, the learned presiding judge determined that there was no need to set up a full Bench comprising five (5) judges to deliberate over the appeal as it was eminently capable of resolution by a three panel Bench as previously constituted.
The appeal was then set down for hearing before the same panel of judges on 16 June 2021.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
It is pertinent to note at this juncture, that, the judgment appealed against in this case is, to a large extent, grounded on legal technicalities.
A lot of industry has been expended by learned counsel in placing reliance on procedural legal technicalities that are best suited for courts of law rather than arbitral tribunals.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law. To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion provided that justice can be attained without doing violence to the basic tenets of natural justice.
Likewise, section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Because of their legal training and the involvement of lawyers, Labour Court judges often stray into the morass of legal jargon and technicalities much to the bewilderment of the unsophisticated litigants. This unwelcome tendency has the undesirable effect of mystifying industrial legal proceedings thereby clouding the dispensation of industrial justice. It therefore acts as a barrier to accessing industrial justice.
This prompted McNALLY JA in Dalny Mine v Banda 1999 (1) ZLR 220 (S) to remark that:
“As a general rule, it seems to me undesirable that labour relations matters should be decided on the basis of procedural irregularities. By this, I do not mean that such irregularities should be ignored. I mean that such irregularities should be put right.”
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA had occasion to make similar remarks when he said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”
It is therefore clear from the authorities, that, the primary function of the court a quo is to do simple justice between the parties without dwelling too much on legal technicalities. It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
On that score, I now proceed to determine whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
WHETHER OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE ENTIRE PROCEEDINGS A NULLITY
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17 and a host of other cases cited by the respondent from both local and foreign jurisdictions. It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
The main distinguishing feature in this case is that arbitral proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court of law are commenced by summons drafted by the plaintiff. On the other hand, arbitral proceedings are commenced by a reference drafted by the conciliator in terms of the Labour Act. The claimant has no control over the drafting of the reference to arbitration whereas the plaintiff has full control over the drafting of the summons.
It would therefore seem unfair and unjust to penalise the claimant for the sins of the conciliator in crafting the reference.
Counsel for the appellants further argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case. The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
It is common cause, that, taking a cue from laid down precedent, the appellants successfully applied to the court a quo, before the same judge, for an amendment of the citation of the respondent's name. He granted the order on 31 May 2018 under order number LC/MD/ORD/78/2018. It reads:
“It is ordered that:
1. The application to amend the citation of the respondent be and is hereby granted.
2. Each party is to bear its own costs.”
It is amazing, that, when the matter came up for hearing on the merits, the same judge held that the proceedings before the arbitrator were a nullity because the appellants had sued a non-existent person.
This was clearly a serious misdirection considering that the honourable judge was bound by his earlier order that had regularised the incorrect citation of the respondent.
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held, that, apart from E. Mapondera, the other 60 employees were not properly before the arbitrator. He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings.
It is rather ironic, if not irrational, that, the respondent sought validation of dismissals that were carried out in the name of a non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection, that, after holding that the proceedings before the arbitrator were a nullity, the learned judge proceeded to determine the appeal on the merits. This was despite his ruling that there was no respondent before him.
What escaped the learned judge a quo's attention is that the two precedents he relied upon…, above were determined by the High Court in terms of the High Court Rules, which are not strictly applicable to arbitration proceedings in terms of the Labour Act.
Again, the learned judge failed to distinguish arbitral proceedings from trial proceedings in a court of law.
Conscious of his obligation to determine the complaint of the 60 other employees by reference, the arbitrator properly sought and obtained clarification on the identities of these other employees.
That clarification was communicated to the respondent thereby giving it an opportunity to be heard on the authenticity of the list of names provided. There was therefore no prejudice to the respondent, real or imagined.
In my view, the arbitrator did not misdirect himself in any way as that was the correct thing to do to facilitate the proper discharge of his mandate in terms of the reference.
Thus, again, the learned judge a quo misdirected himself and fell into error by holding that the other 60 appellants were not properly before the arbitrator.
Having come to the conclusion that the 60 other employees were not properly before the arbitrator, it was remiss of the learned judge a quo to proceed to deal with the merits of the appeal before him.
He, again, erred in this respect.
The proceedings beyond that finding were therefore a legal nullity. They cannot stand in light of the gross misdirection by the learned judge a quo.
WHETHER OR NOT IT WAS PROPER FOR THE ARBITRAL TRIBUNAL TO ORDER REINSTATEMENT OF THE APPELLANTS WITHOUT AN ALTERNATIVE OF PAYMENT OF DAMAGES IN LIEU OF REINSTATEMENT
In view of the finding that the proceedings pertaining to the merits of the case were a legal nullity, it shall not be necessary to determine the above issue.
DISPOSAL
For the foregoing findings of fact and law, I hold that both the appellants and the respondents were properly cited and lawfully appeared before the arbitrator.
The court a quo fell into error and misdirected itself by nullifying the proceedings before the arbitrator without any legal basis. The court a quo therefore ought to have dismissed both objections in limine and proceeded to hear and determine the appeal on the merits.
In the result, it shall be necessary to reverse the court a quo's judgment and order a re-hearing of the appeal before a different judge, as the judge a quo's views appear to have been clouded by his earlier faulty findings of fact and law.
Costs follow the result in respect of the appeal, whereas costs of the objection in limine shall be in the cause.
It is accordingly ordered that:
1. The appeal be and is hereby allowed with costs being costs in the cause.
2. The judgment of the court a quo be and is hereby set aside and substituted with the following:
“(a) The preliminary points raised by the appellant, relating to its mis-citation, be and is hereby dismissed.
(b) The preliminary point raised by the appellant, relating to the proper citation of the 2nd to the 60th respondents, be and is hereby dismissed. The 2nd to 60th Respondents are hereby held to be properly before the court.”
3. The court a quo's determination on the merits of the appeal before it be and is hereby quashed and set aside.
4. The matter be and is hereby remitted to the court a quo for a hearing de novo of the appeal before a different judge.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law.
To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion, provided that justice can be attained without doing violence to the basic tenets of natural justice.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law.
To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion, provided that justice can be attained without doing violence to the basic tenets of natural justice.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement.
The appeal was initially set-down for hearing on 11 September 2020 whereupon it was removed from the roll by consent of the parties to consider placing it before a full Bench comprising a panel of five (5) judges in terms of section 3 of the Supreme Court Act [Chapter 7:13].
Upon due consideration of the nature and complexity of the appeal, the learned presiding judge determined that there was no need to set up a full Bench comprising five (5) judges to deliberate over the appeal as it was eminently capable of resolution by a three panel Bench as previously constituted.
The appeal was then set down for hearing before the same panel of judges on 16 June 2021.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
It is pertinent to note at this juncture, that, the judgment appealed against in this case is, to a large extent, grounded on legal technicalities.
A lot of industry has been expended by learned counsel in placing reliance on procedural legal technicalities that are best suited for courts of law rather than arbitral tribunals.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law. To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion provided that justice can be attained without doing violence to the basic tenets of natural justice.
Likewise, section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Because of their legal training and the involvement of lawyers, Labour Court judges often stray into the morass of legal jargon and technicalities much to the bewilderment of the unsophisticated litigants. This unwelcome tendency has the undesirable effect of mystifying industrial legal proceedings thereby clouding the dispensation of industrial justice. It therefore acts as a barrier to accessing industrial justice.
This prompted McNALLY JA in Dalny Mine v Banda 1999 (1) ZLR 220 (S) to remark that:
“As a general rule, it seems to me undesirable that labour relations matters should be decided on the basis of procedural irregularities. By this, I do not mean that such irregularities should be ignored. I mean that such irregularities should be put right.”
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA had occasion to make similar remarks when he said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”
It is therefore clear from the authorities, that, the primary function of the court a quo is to do simple justice between the parties without dwelling too much on legal technicalities. It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
On that score, I now proceed to determine whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
WHETHER OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE ENTIRE PROCEEDINGS A NULLITY
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17 and a host of other cases cited by the respondent from both local and foreign jurisdictions. It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
The main distinguishing feature in this case is that arbitral proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court of law are commenced by summons drafted by the plaintiff. On the other hand, arbitral proceedings are commenced by a reference drafted by the conciliator in terms of the Labour Act. The claimant has no control over the drafting of the reference to arbitration whereas the plaintiff has full control over the drafting of the summons.
It would therefore seem unfair and unjust to penalise the claimant for the sins of the conciliator in crafting the reference.
Counsel for the appellants further argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case. The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
It is common cause, that, taking a cue from laid down precedent, the appellants successfully applied to the court a quo, before the same judge, for an amendment of the citation of the respondent's name. He granted the order on 31 May 2018 under order number LC/MD/ORD/78/2018. It reads:
“It is ordered that:
1. The application to amend the citation of the respondent be and is hereby granted.
2. Each party is to bear its own costs.”
It is amazing, that, when the matter came up for hearing on the merits, the same judge held that the proceedings before the arbitrator were a nullity because the appellants had sued a non-existent person.
This was clearly a serious misdirection considering that the honourable judge was bound by his earlier order that had regularised the incorrect citation of the respondent.
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held, that, apart from E. Mapondera, the other 60 employees were not properly before the arbitrator. He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings.
It is rather ironic, if not irrational, that, the respondent sought validation of dismissals that were carried out in the name of a non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection, that, after holding that the proceedings before the arbitrator were a nullity, the learned judge proceeded to determine the appeal on the merits. This was despite his ruling that there was no respondent before him.
What escaped the learned judge a quo's attention is that the two precedents he relied upon…, above were determined by the High Court in terms of the High Court Rules, which are not strictly applicable to arbitration proceedings in terms of the Labour Act.
Again, the learned judge failed to distinguish arbitral proceedings from trial proceedings in a court of law.
Conscious of his obligation to determine the complaint of the 60 other employees by reference, the arbitrator properly sought and obtained clarification on the identities of these other employees.
That clarification was communicated to the respondent thereby giving it an opportunity to be heard on the authenticity of the list of names provided. There was therefore no prejudice to the respondent, real or imagined.
In my view, the arbitrator did not misdirect himself in any way as that was the correct thing to do to facilitate the proper discharge of his mandate in terms of the reference.
Thus, again, the learned judge a quo misdirected himself and fell into error by holding that the other 60 appellants were not properly before the arbitrator.
Having come to the conclusion that the 60 other employees were not properly before the arbitrator, it was remiss of the learned judge a quo to proceed to deal with the merits of the appeal before him.
He, again, erred in this respect.
The proceedings beyond that finding were therefore a legal nullity. They cannot stand in light of the gross misdirection by the learned judge a quo.
WHETHER OR NOT IT WAS PROPER FOR THE ARBITRAL TRIBUNAL TO ORDER REINSTATEMENT OF THE APPELLANTS WITHOUT AN ALTERNATIVE OF PAYMENT OF DAMAGES IN LIEU OF REINSTATEMENT
In view of the finding that the proceedings pertaining to the merits of the case were a legal nullity, it shall not be necessary to determine the above issue.
DISPOSAL
For the foregoing findings of fact and law, I hold that both the appellants and the respondents were properly cited and lawfully appeared before the arbitrator.
The court a quo fell into error and misdirected itself by nullifying the proceedings before the arbitrator without any legal basis. The court a quo therefore ought to have dismissed both objections in limine and proceeded to hear and determine the appeal on the merits.
In the result, it shall be necessary to reverse the court a quo's judgment and order a re-hearing of the appeal before a different judge, as the judge a quo's views appear to have been clouded by his earlier faulty findings of fact and law.
Costs follow the result in respect of the appeal, whereas costs of the objection in limine shall be in the cause.
It is accordingly ordered that:
1. The appeal be and is hereby allowed with costs being costs in the cause.
2. The judgment of the court a quo be and is hereby set aside and substituted with the following:
“(a) The preliminary points raised by the appellant, relating to its mis-citation, be and is hereby dismissed.
(b) The preliminary point raised by the appellant, relating to the proper citation of the 2nd to the 60th respondents, be and is hereby dismissed. The 2nd to 60th Respondents are hereby held to be properly before the court.”
3. The court a quo's determination on the merits of the appeal before it be and is hereby quashed and set aside.
4. The matter be and is hereby remitted to the court a quo for a hearing de novo of the appeal before a different judge.
This is a partial appeal against the judgment of the Labour Court (the court a quo) LC/H/2/19 dated 7 February 2019. The appeal is against the court a quo's ruling on the question of citation of the parties and the arbitrator's failure to award damages as an alternative to reinstatement.
The appeal was initially set-down for hearing on 11 September 2020 whereupon it was removed from the roll by consent of the parties to consider placing it before a full Bench comprising a panel of five (5) judges in terms of section 3 of the Supreme Court Act [Chapter 7:13].
Upon due consideration of the nature and complexity of the appeal, the learned presiding judge determined that there was no need to set up a full Bench comprising five (5) judges to deliberate over the appeal as it was eminently capable of resolution by a three panel Bench as previously constituted.
The appeal was then set down for hearing before the same panel of judges on 16 June 2021.
BRIEF SUMMARY OF THE CASE
The 56 appellants were employed by the respondent, Freda Rebecca Mine Holdings Limited, in various capacities at its mine in Bindura. Owing to virulent economic hardships at the time, the respondent ceased its mining operations sometime in 2008 without terminating the appellants respective contracts of employment.
Sometime in 2009, the respondent sought to resuscitate its mining operations.
In doing so, it unilaterally sought to re-engage the appellants on inferior contracts different from those obtaining as at the time it ceased operations in 2008.
A dispute then arose concerning the appropriate terms of employment upon resumption of mining operations.
Following failure to resolve the dispute, the respondent arbitrarily wrote to the appellants terminating their original contracts of employment.
The termination letters were written on a standard letterhead bearing the name FREDA REBECCA GOLD MINE. The letters were signed by one T Chivonivoni who designated himself/herself as the GENERAL MANAGER-FREDA REBECCA GOLD MINE.
Dissatisfied by the turn of events, the appellants took the dispute to the Designated Agent.
The Designated Agent referred the dispute to conciliation.
Upon failure of the conciliation process, the conciliator issued a Certificate of No Settlement and completed a Reference to Arbitration on a standard form in which he designated the parties as “Freda Rebecca Mine alleged unfair labour practice of E Mapondera and 60 others.”…,.
The reference form is dated 12 May 2010.
It is common cause that the proper citation of the respondent, as a party to legal proceedings, ought to have been Freda Rebecca Gold Mine Holdings Limited.
TERMS OF REFERENCE
The arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
At the hearing before the arbitrator, the respondent took the preliminary objection, that, apart from Edmond Mapondera, the rest of the remaining appellants had no locus standi because their names had not been listed as claimants and E. Mapondera was not authorised to represent them.
Counsel for the appellants argued, that, the respondent had always been aware that the case involved 61 employees whose identities had not been placed in issue at conciliation stage. It was only at the arbitration stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was then provided with a list of the concerned employees comprising a total of 58 claimants. The list of the claimants who were party to the proceedings was availed to the respondent.
The arbitrator dismissed the objection in limine on the ground, that, the appellants had a real and substantial interest in the matter and that right from the initiation of the legal proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded to make an award in favour of E. Mapondera and 57 others on 12 January 2011. The award was couched in the following terms:
“1. That, the claimants are hereby reinstated to their positions without loss of salary and benefits with effect from the date of unlawful dismissal.
2. Each party to meet its own costs.”
Dissatisfied with the arbitral award, the respondent appealed to the court a quo with partial success. It took the following four (4) grounds on appeal:
“1. The Honourable arbitrator unprocedurally accepted evidence submitted by the claimants subsequent to the arbitration hearing in respect of the purported hearing in respect of the purported identity of the innominate (sic) 60 other claimants who had not been included by name in the original claim.
2. The Honourable arbitrator fundamentally misdirected himself in finding, that, since the alleged 60 other employees had a substantial interest in the matter they did not need to be identified and to be made parties in arbitration proceedings before him. The fact that the employees have any kind of interest in the matter did not dispense with the entitlement of the appellant to know who the said appellants were at the commencement and during the course of the proceedings. The production of the names of the employees subsequent to the hearing, and without an opportunity for the appellant to challenge the accuracy of the names and the positions so stated for the employees, violated the appellant's right to a fair hearing before an independent and impartial tribunal.
3. The Honourable Arbitrator fundamentally misdirected himself in failing to find that the contracts of employment for the said employees, E. Mapondera & 60 Others, had terminated by operation of law and the appellant could only re-engage the employees in terms of new contracts of employment. The said former employees, having refused to sign new contracts of employment, the appellant lawfully confirmed the termination of their contracts of employment by operation of law on the 5th of March 2010.
4. The Honourable arbitrator fundamentally misdirected himself in ordering the reinstatement of E. Mapondera & 60 other employees without affording the Appellant an opportunity to pay damages in lieu of reinstatement. The order of reinstatement, without the alternative for the payment of damages, is not consistent with the ordinary rules of the law of contract and the specific circumstances of the appellant.”
THE RELIEF SOUGHT
On the basis of the above grounds of appeal, the appellant sought the following relief:
“(i) That the claimant's claim be and is hereby dismissed.
(ii) Alternatively, that, in the event that the Honourable court finds that the contracts of employment for the Respondents were not lawfully terminated, that the Appellant is hereby directed to pay the Respondents damages in lieu (sic) of reinstatement.
(iii) The Respondents shall pay the costs of suit.”
Upon consideration of the facts and the law, the court a quo found that the arbitration proceedings were a nullity at law because the claimants had cited a non-existent person and that the 2nd to 60th employees were not a party to the arbitration proceedings.
It also found, that, the arbitrator had no discretion to award reinstatement without an alternative of payment of damages for unlawful dismissal. It therefore ordered as follows:
“It is accordingly ordered that -
1. The appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
2. The appeal falls on ground of appeal 3.
3. Overly, the appeal succeeds as the proceedings were a nullity due to wrong identity of the employer.
4. Each party to bear its costs.”
Aggrieved by the above order, the appellants appealed to this Court challenging the court a quo's order on the following grounds:
“GROUNDS OF APPEAL
1. The court a quo erred at law in finding that the citation of the respondent, through its trade name 'Freda Rebecca Mine' was such an irregularity whose effect rendered the entire proceedings a nullity.
2. The court erred at law in finding that 2nd to 61st appellants were not properly cited before the Arbitrator and that the extent of the impropriety was such that they were all not party to the arbitration proceedings.
3. The court a quo erred at law in finding that the Arbitrator has no power to order an employer to reinstate an unlawfully dismissed employee without giving the same employer the option to pay damages in lieu of reinstatement to the employee.”
On the basis of the above grounds of appeal, the appellants prayed for the following relief:
1. That the appeal succeeds with costs.
2. That the judgment of the court a quo is partially overturned and the order substituted with the following:
“(a) The preliminary point raised by the Appellant relating to its mis-citation be and is hereby dismissed.
(b) The preliminary point raised by the Appellant relating to the proper citation of the 2nd to the 61st Respondents be and is hereby dismissed. The 2nd to 61st Respondents are hereby held to be properly before the court.
(c) The appeal be and is hereby dismissed with costs and the arbitration award be and is hereby upheld.”
ISSUES FOR DETERMINATION
The grounds of appeal raise the following three cardinal issues for determination:
1. Whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
2. Whether or not the appellants were properly before the Arbitral Tribunal.
3. Whether or not it was proper for the Arbitral Tribunal to order reinstatement of the appellants without an alternative of payment of damages in lieu of reinstatement.
ANALYSIS AND DETERMINATION OF THE ISSUES
It is pertinent to note at this juncture, that, the judgment appealed against in this case is, to a large extent, grounded on legal technicalities.
A lot of industry has been expended by learned counsel in placing reliance on procedural legal technicalities that are best suited for courts of law rather than arbitral tribunals.
It is trite that the object of arbitral tribunals is to do simple justice for the common person without being shackled by legal technicalities and formalities pertaining to an ordinary court of law. To this end, in arbitration, the rules of procedure are often relaxed and the arbitrator has a wide discretion provided that justice can be attained without doing violence to the basic tenets of natural justice.
Likewise, section 90A of the Labour Act [Chapter 28:01] is meant to unshackle the court a quo from the vice grip of rigid legal rules, formality, and technicalities. It provides as follows:
“90A Procedure and evidence in the Labour Court
(1) The Labour Court shall not be bound by the strict rules of evidence, and the court may ascertain any relevant fact by any means which the presiding officer thinks fit and which is not unfair or unjust to either party.
(2) Evidence may be adduced orally or in writing in any proceedings in the Labour Court, at the discretion of the presiding officer.
(3) The parties or their representatives to any proceedings in the Labour Court shall be entitled to question or cross-examine each other or any witness.
(4) It shall be the responsibilities of the presiding officer to ascertain the facts in any proceedings in the Labour Court, and, for that purpose, he or she may —
(a) Call any party or his or her representative;
(b) Question or cross-examine any party or his or her representative or witness; and
(c) Put any question to a party or his or her representative or witness which is suggested to him or her by any party.”
It is self-evident that section 90A of the Labour Act distinguishes ordinary courts of law from the Labour Court as a special court. The law maker therefore saw it fit to confer the court a quo with a wider discretion than that obtaining in the ordinary courts of law in order to do simple industrial justice.
Because of their legal training and the involvement of lawyers, Labour Court judges often stray into the morass of legal jargon and technicalities much to the bewilderment of the unsophisticated litigants. This unwelcome tendency has the undesirable effect of mystifying industrial legal proceedings thereby clouding the dispensation of industrial justice. It therefore acts as a barrier to accessing industrial justice.
This prompted McNALLY JA in Dalny Mine v Banda 1999 (1) ZLR 220 (S) to remark that:
“As a general rule, it seems to me undesirable that labour relations matters should be decided on the basis of procedural irregularities. By this, I do not mean that such irregularities should be ignored. I mean that such irregularities should be put right.”
In Edmore Taperesu Mazambani v International Trading Company (Private) Limited and Anor SC88-20 MATHONSI JA had occasion to make similar remarks when he said:
“This is a court of justice which is required to resolve the real issues between the parties. It should not dabble too much into small technicalities.”
It is therefore clear from the authorities, that, the primary function of the court a quo is to do simple justice between the parties without dwelling too much on legal technicalities. It is also self-evident that the general courts of law are beginning to mellow and drift towards the idea of correction of simple procedural errors in order to do real and substantial justice.
When interpreting statutes and codes of conduct, the court a quo should endeavour to give a broad liberal interpretation that is not embroiled in flimsy legal technicalities in order to achieve social justice based on equitable labour standards.
On that score, I now proceed to determine whether or not the alleged improper citation of the respondent rendered the entire proceedings a nullity.
WHETHER OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE ENTIRE PROCEEDINGS A NULLITY
Generally speaking, it is undisputable and a matter of trite elementary law, that, one cannot sue a non-existent person.
In the leading case of Gariya Safaris (Pvt) Ltd v Van Wyk 1996 (2) ZLR 246 (H) the High Court had occasion to remark that:
“A summons has legal force and effect when it is issued by the plaintiff against an existing legal or natural person. If there is no legal or natural person answering to the names written in the summons as being those of the defendant, the summons is null and void ab initio.”
That proposition of law was cited with approval by this Court in Fadzai John v Delta Beverages SC40-17 and a host of other cases cited by the respondent from both local and foreign jurisdictions. It is thus settled law and a matter of common sense that one cannot sue a non-existent person.
The main distinguishing feature in this case is that arbitral proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court of law are commenced by summons drafted by the plaintiff. On the other hand, arbitral proceedings are commenced by a reference drafted by the conciliator in terms of the Labour Act. The claimant has no control over the drafting of the reference to arbitration whereas the plaintiff has full control over the drafting of the summons.
It would therefore seem unfair and unjust to penalise the claimant for the sins of the conciliator in crafting the reference.
Counsel for the appellants further argued, that, where there is a person who actually exists who is sued in their colloquial, nickname, or some other informal name, an amendment is permissible to formalise or regularise the citation.
For that proposition of law, he placed reliance on the South African case of Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) among others.
In that case, shortly before the hearing of the appeal it was discovered, that, in the summons and particulars of claim, the plaintiff had been incorrectly cited and referred to as a company called Four Tower Investments (Pty) Ltd whereas it had been at all times a close corporation called Four Tower Properties CC. In the lease agreement, which was the subject of the dispute between the parties, it was also referred to as a company.
The letting agent was responsible for the mis-description.
Following an application for an amendment to regularize the citation, the court held that under the circumstances, an amendment was permissible. The headnote reads:
“An application for an amendment would always be allowed unless it was made mala fide or would cause prejudice to the other party which could not be compensated for by an award of costs or by some other suitable order such as a postponement: (At 43H).
Held, further that there had been a gradual move from an overly formal approach, and, in line with this approach, courts should be careful not to find prejudice where none really exists: (At 44I-J).
Held further, that the fact, on its own, that the citation or description of a party happened to be of a non-existent entity should not render the summons a nullity.
Held further, that in the present case the citation of the plaintiff had been nothing more than a mis-description and the application for amendment had to be allowed: (At47F).”
It is needless to say that Four Tower Investments (Pty) Ltd v Andre's Motors 2005 (3) SA 39 (N) is on all fours with the instant case. The judgment is grounded on sound logic and meets the ends of justice between litigants.
Back home, in Muzenda v Emirates Airlines & Others HH775-15 the Emirates Airlines had been mis-described as Arab Airlines. In allowing the amendment to regularize the name, MATANDA MOYO J had this to say:
“I am of the view that the description of a party to a suit does not immutably determine the nature and identity of a party. The Law Reports are full with instances where the correct description of a party was allowed, in the absence of prejudice to the other party involved. This would be done after an application to amend.
The plaintiff herein was not diligent.
After being advised of the wrong citation of first defendant, all she had to do was apply for amendment. I would have granted such amendment as I am of the view that there was no prejudice to first defendant.
However, the court can only do so upon asking. The court cannot mero motu grant orders not sought.
Without such amendment, the first defendant remains wrongly cited: see ZFC Ltd v Taylor 1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's rules; Commercial Union Assurance Company Limited v Waymark NO 1995 (2) SA.”
The learned judge beautifully articulates the law in circumstances that are on all fours with the case at hand.
In the same vein, in Masuku v Delta Beverages 2012 (2) ZLR 112 (H) the same court held that:
“…, generally, proceedings against a non-existent entity are void ab initio and thus a nullity. However, where there is an entity which, through some error or omission, is not cited accurately, but where the entity is pointed out with sufficient accuracy, the summons would not be defective.”
I could go on and on, but, the principle of law established by case law is clear.
Where an existing entity is inadvertently mis-described in judicial proceedings it is permissible to apply for correction of the anomaly in good faith provided that there is no irreparable prejudice to the other party.
It is common cause, that, taking a cue from laid down precedent, the appellants successfully applied to the court a quo, before the same judge, for an amendment of the citation of the respondent's name. He granted the order on 31 May 2018 under order number LC/MD/ORD/78/2018. It reads:
“It is ordered that:
1. The application to amend the citation of the respondent be and is hereby granted.
2. Each party is to bear its own costs.”
It is amazing, that, when the matter came up for hearing on the merits, the same judge held that the proceedings before the arbitrator were a nullity because the appellants had sued a non-existent person.
This was clearly a serious misdirection considering that the honourable judge was bound by his earlier order that had regularised the incorrect citation of the respondent.
WHETHER OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
It will be remembered, that, the arbitrator's terms of reference were “to determine whether the dismissal of E. Mapondera and 60 others was lawful or not.”
It is trite, that, an arbitrator is bound by the given terms of reference. He has no jurisdiction outside the terms of reference.
The respondent's objection sought to amend the terms of reference by limiting the terms of arbitration to E. Mapondera to the exclusion of the 60 other employees.
This the arbitrator could not do as it would amount to a violation of his terms of reference.
Placing reliance on the High Court cases of Panganai and 20 Others v Kadir and Sons (Private) Limited HH26-95 and Prosser and 35 Others v Ziscosteel Company Limited HH201-93, the learned judge a quo held, that, apart from E. Mapondera, the other 60 employees were not properly before the arbitrator. He reasoned, that, this was because the arbitrator had not been provided with a list of their names and they had not filed affidavits professing joinder to the arbitral proceedings.
It is rather ironic, if not irrational, that, the respondent sought validation of dismissals that were carried out in the name of a non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection, that, after holding that the proceedings before the arbitrator were a nullity, the learned judge proceeded to determine the appeal on the merits. This was despite his ruling that there was no respondent before him.
What escaped the learned judge a quo's attention is that the two precedents he relied upon…, above were determined by the High Court in terms of the High Court Rules, which are not strictly applicable to arbitration proceedings in terms of the Labour Act.
Again, the learned judge failed to distinguish arbitral proceedings from trial proceedings in a court of law.
Conscious of his obligation to determine the complaint of the 60 other employees by reference, the arbitrator properly sought and obtained clarification on the identities of these other employees.
That clarification was communicated to the respondent thereby giving it an opportunity to be heard on the authenticity of the list of names provided. There was therefore no prejudice to the respondent, real or imagined.
In my view, the arbitrator did not misdirect himself in any way as that was the correct thing to do to facilitate the proper discharge of his mandate in terms of the reference.
Thus, again, the learned judge a quo misdirected himself and fell into error by holding that the other 60 appellants were not properly before the arbitrator.
Having come to the conclusion that the 60 other employees were not properly before the arbitrator, it was remiss of the learned judge a quo to proceed to deal with the merits of the appeal before him.
He, again, erred in this respect.
The proceedings beyond that finding were therefore a legal nullity. They cannot stand in light of the gross misdirection by the learned judge a quo.
WHETHER OR NOT IT WAS PROPER FOR THE ARBITRAL TRIBUNAL TO ORDER REINSTATEMENT OF THE APPELLANTS WITHOUT AN ALTERNATIVE OF PAYMENT OF DAMAGES IN LIEU OF REINSTATEMENT
In view of the finding that the proceedings pertaining to the merits of the case were a legal nullity, it shall not be necessary to determine the above issue.
DISPOSAL
For the foregoing findings of fact and law, I hold that both the appellants and the respondents were properly cited and lawfully appeared before the arbitrator.
The court a quo fell into error and misdirected itself by nullifying the proceedings before the arbitrator without any legal basis. The court a quo therefore ought to have dismissed both objections in limine and proceeded to hear and determine the appeal on the merits.
In the result, it shall be necessary to reverse the court a quo's judgment and order a re-hearing of the appeal before a different judge, as the judge a quo's views appear to have been clouded by his earlier faulty findings of fact and law.
Costs follow the result in respect of the appeal, whereas costs of the objection in limine shall be in the cause.
It is accordingly ordered that:
1. The appeal be and is hereby allowed with costs being costs in the cause.
2. The judgment of the court a quo be and is hereby set aside and substituted with the following:
“(a) The preliminary points raised by the appellant, relating to its mis-citation, be and is hereby dismissed.
(b) The preliminary point raised by the appellant, relating to the proper citation of the 2nd to the 60th respondents, be and is hereby dismissed. The 2nd to 60th Respondents are hereby held to be properly before the court.”
3. The court a quo's determination on the merits of the appeal before it be and is hereby quashed and set aside.
4. The matter be and is hereby remitted to the court a quo for a hearing de novo of the appeal before a different judge.
Costs follow the result in respect of the appeal, whereas costs of the objection in limine shall be in the cause.
BHUNU
JA:
INTRODUCTION
[1] This
is a partial appeal against the judgment of the Labour Court, (the
court a
quo)
LC/H/2/19 dated 7 February 2019. The appeal is against the court a
quo's
ruling on the question of citation of the parties and the
arbitrator's failure to award damages as an alternative to
reinstatement.
[2] The
appeal was initially set-down for hearing on 11 September 2020
whereupon it was removed from the roll by consent of the parties to
consider placing it before a full bench comprising a panel of 5
judges in terms of section 3 of the Supreme Court Act [Chapter
7:13].
[3] Upon
due consideration of the nature and complexity of the appeal, the
learned presiding judge determined that there was no need to set up a
full bench comprising 5 judges to deliberate over the appeal as it
was eminently capable of resolution by a three panel bench as
previously constituted. The appeal was then set down for hearing
before the same panel of judges on 16 June 2021.
BRIEF
SUMMARY OF THE CASE
[4] The
56 appellants were employed by the respondent Freda Rebecca Mine
Holdings Limited in various capacities at its mine in Bindura. Owing
to virulent economic hardships at the time, the respondent ceased its
mining operations sometime in 2008 without terminating the appellants
respective contracts of employment.
[5]
Sometime in 2009 the respondent sought to resuscitate its mining
operations. In doing so it unilaterally sought to reengage the
appellants on inferior contracts different from those obtaining as at
the time it ceased operations in 2008. A dispute then arose
concerning the appropriate terms of employment upon resumption of
mining operations.
[6]
Following failure to resolve the dispute the respondent arbitrarily
wrote to the appellants terminating their original contracts of
employment. The termination letters were written on a standard
letterhead bearing the name FREDA
REBECCA GOLD MINE. The
letters were signed by one T Chivonivoni who designated
himself/herself as the GENERAL
MANAGER- FREDA REBECCA GOLD MINE.
[7]
Dissatisfied by the turn of events, the appellants took the dispute
to the designated agent. The designated agent referred the dispute to
conciliation. Upon failure of the conciliation process the
conciliator issued a certificate of no settlement and completed a
Reference to Arbitration on a standard form in which he designated
the parties as “Freda
Rebecca Mine alleged unfair labour practice of E Mapondera and 60
others”.
The reference form is dated 12 May 2010. It is common cause that the
proper citation of the respondent as a party to legal proceedings
ought to have been Freda
Rebecca Gold Mine Holdings Limited.
TERMS
OF REFERENCE
[8] The
arbitrator's terms of reference were “to determine whether the
dismissal of E. Mapondera and 60 others was lawful or not.”
[9]
At the hearing before the arbitrator the respondent took the
preliminary objection that apart from Edmond Mapondera the rest of
the remaining appellants had no locus
standi
because their names had not been listed as claimants and E Mapondera
was not authorised to represent them.
[10] Counsel
for the appellants argued that the respondent had always been aware
that the case involved 61 employees whose identities had not been
placed in issue at conciliation stage. It was only at the arbitration
stage that the respondent belatedly sought to make it an issue.
During the course of the arbitration proceedings, the arbitrator was
then provided with a list of the concerned employees comprising a
total of 58 claimants. The list of the claimants who were party to
the proceedings was availed to the respondent.
[11] The
arbitrator dismissed the objection in
limine
on the ground that the appellants had a real and substantial interest
in the matter and that right from the initiation of the legal
proceedings the respondent knew the identity of its adversaries.
Having dismissed the preliminary objection, the arbitrator proceeded
to make an award in favour of E Mapondera and 57 others on 12 January
2011. The award was couched in the following terms:
“1. That
the claimants are hereby reinstated to their positions without loss
of salary and benefits with effect from the date of unlawful
dismissal.
2. Each
party to meet its own costs.”
[12] Dissatisfied
with the arbitral award, the respondent appealed to the court
a
quo
with partial success. It took the following 4 grounds on appeal:
“1. The
Honourable arbitrator unprocedurally accepted evidence submitted by
the claimants subsequent to the arbitration hearing in respect of the
purported hearing in respect of the purported identity of the
innominate (sic) 60 other claimants who had not been included by name
in the original claim.
2. The
Honourable arbitrator fundamentally misdirected himself in finding
that since the alleged 60 other employees had a substantial interest
in the matter they did not need to be identified and to be made
parties in arbitration proceedings before him. The fact that the
employees have any kind of interest in the matter did not dispense
with the entitlement of the appellant to know who the said appellants
were at the commencement and during the course of the proceedings.
The production of the names of the employees subsequent to the
hearing and without an opportunity for the appellant to challenge the
accuracy of the names and the positions so stated for the employees
violated the appellant's right to a fair hearing before an
independent and impartial tribunal.
3. The
Honourable Arbitrator fundamentally misdirected himself in failing to
find that the contracts of employment for the said employees, E
Mapondera & 60 Others had terminated by operation of law and the
appellant could only re-engage the employees in terms of new
contracts of employment. The said former employees having refused to
sign new contracts of employment, the appellant lawfully confirmed
the termination of their contracts of employment by operation of law
on the 5th
of March 2010.
4. The
Honourable arbitrator fundamentally misdirected himself in ordering
the reinstatement of E Mapondera & 60 other employees without
affording the Appellant an opportunity to pay damages in lieu of
reinstatement. The order of reinstatement without the alternative for
the payment of damages is not consistent with the ordinary rules of
the law of contract and the specific circumstances of the appellant.”
THE
RELIEF SOUGHT
[13] On
the basis of the above grounds of appeal the appellant sought the
following relief:
“(i) That
the claimant's claim be and is hereby dismissed.
(ii) Alternatively
that in the event that the Honourable court finds that the contracts
of employment for the Respondents were not lawfully terminated, that
the Appellant is hereby directed to pay the Respondents damages in
lieu (sic) of reinstatement.
(iii)
The Respondents shall pay the costs of suit.”
[14]
Upon consideration of the facts and the law the court a
quo
found that the arbitration proceedings were a nullity at law because
the claimants had cited a non-existent person and that the 2nd
to 60 employees were not a party to the arbitration proceedings.
[15] It
also found that the arbitrator had no discretion to award
reinstatement without an alternative of payment of damages for
unlawful dismissal. It therefore ordered as follows:
“It
is accordingly ordered that -
The
appeal be and is hereby allowed on grounds 1, 2, 4 and 5.
The
appeal falls on ground of appeal 3.
Overly
the appeal succeeds as the proceedings were a nullity due to wrong
identity of the employer.
Each
party to bear its costs.”
[16]
Aggrieved by the above order the appellants appealed to this Court
challenging the court a
quo's
order
on the following grounds:
“GROUNDS
OF APPEAL
The
court a
quo
erred at law in finding that the citation of the respondent through
its trade name “Freda Rebecca Mine” was such an irregularity
whose effect rendered the entire proceedings a nullity.
The
court erred at law in finding that 2nd
to 61st
appellants were not properly cited before the Arbitrator and that
the extent of the impropriety was such that they were all not party
to the arbitration proceedings.
The
court a
quo
erred at law in finding that the Arbitrator has no power to order an
employer to reinstate an unlawfully dismissed employee without
giving the same employer the option to pay damages in
lieu
of reinstatement to the employee.”
[17] On
the basis of the above grounds of appeal, the appellants prayed for
the following relief:
1.
That the appeal succeeds with costs.
2. That
the judgment of the court a
quo
is partially overturned and the order substituted with the following:
“(a) The
preliminary point raised by the Appellant relating to its miscitation
be and is hereby dismissed.
(b) The
preliminary point raised by the Appellant relating to the proper
citation of the 2nd
to the 61st
Respondents be and is hereby dismissed. The 2nd
to 61st
Respondents are hereby held to be properly before the court.
(c) The
appeal be and is hereby dismissed with costs and the arbitration
award be and is hereby upheld.”
ISSUES
FOR DETERMINATION
[18] The
grounds of appeal raise the following three cardinal issues for
determination:
1.
Whether or not the alleged improper citation of the respondent
rendered the entire proceedings a nullity.
2. Whether
or not the appellants were properly before the Arbitral Tribunal.
3. Whether
or not it was proper for the Arbitral Tribunal to order reinstatement
of the appellants without an alternative of payment of damages in
lieu
of reinstatement.
ANALYSIS
AND DETERMINATION OF THE ISSUES
[19]
It is pertinent to note at this juncture that the judgment appealed
against in this case is to a large extent grounded on legal
technicalities. A lot of industry has been expended by learned
counsel in placing reliance on procedural legal technicalities that
are best suited for courts of law rather than arbitral tribunals. It
is trite that the object of arbitral tribunals is to do simple
justice for the common person without being shackled by legal
technicalities and formalities pertaining to an ordinary court of
law. To this end in arbitration the rules of procedure are often
relaxed and the arbitrator has a wide discretion provided that
justice can be attained without doing violence to the basic tenets of
natural justice.
[20]
Likewise, section 90A of the Labour Act [Chapter
28:01]
is meant to unshackle the court a
quo
from the vice grip of rigid legal rules, formality and
technicalities. It provides as follows:
“90A
Procedure and evidence in the Labour Court
The
Labour Court shall not be bound by the strict rules of evidence, and
the court may ascertain any relevant fact by any means which the
presiding officer thinks fit and which is not unfair or unjust to
either party.
Evidence
may be adduced orally or in writing in any proceedings in the Labour
Court, at the discretion of the presiding officer.
(3)
The parties or their representatives to any proceedings in the Labour
Court shall be entitled to question or cross-examine each other or
any witness.
(4) It
shall be the responsibilities of the presiding officer to ascertain
the facts in any proceedings in the Labour Court, and for that
purpose he or she may —
call
any party or his or her representative;
(b)
question or cross-examine any party or his or her representative or
witness; and
(c)
put any question to a party or his or her representative or witness
which is suggested to him or her by any party.”
[21] It
is self-evident that section 90A of the Act distinguishes ordinary
courts of law from the Labour Court as a special court. The law maker
therefore saw it fit to confer the court a
quo
with a wider discretion than that obtaining in the ordinary courts of
law in order to do simple industrial justice.
[22] Because
of their legal training and the involvement of lawyers, Labour Court
judges often stray into the morass of legal jargon and technicalities
much to the bewilderment of the unsophisticated litigants. This
unwelcome tendency has the undesirable effect of mystifying
industrial legal proceedings thereby clouding the dispensation of
industrial justice. It therefore acts as a barrier to accessing
industrial justice. This prompted McNALLY JA in Dalny
Mine v Banda
to remark that:
“As
a general rule, it seems to me undesirable that labour relations
matters should be decided on the basis of procedural irregularities.
By this I do not mean that such irregularities should be ignored. I
mean that such irregularities should be put right.”
[23] In
Edmore
Taperesu Mazambani v International Trading Company (Private) Limited
and Anor
MATHONSI JA had occasion to make similar remarks when he said:
“This
is a court of justice which is required to resolve the real issues
between the parties. It should not dabble too much into small
technicalities.”
[24]
It is therefore clear from the authorities that the primary function
of the court a
quo
is to do simple justice between the parties without dwelling too much
on legal technicalities. It is also self-evident that the general
courts of law are beginning to mellow and drift towards the idea of
correction of simple procedural errors in order to do real and
substantial justice.
[25]
When interpreting statutes and codes of conduct, the court a
quo
should endeavour to give a broad liberal interpretation that is not
embroiled in flimsy legal technicalities in order to achieve social
justice based on equitable labour standards. On that score, I now
proceed to determine whether or not the alleged improper citation of
the respondent rendered the entire proceedings a nullity.
WHETHER
OR NOT THE ALLEGED IMPROPER CITATION OF THE RESPONDENT RENDERED THE
ENTIRE PROCEEDINGS A NULLITY
[26] Generally
speaking, it is undisputable and a matter of trite elementary law
that one cannot sue a non-existent person. In the leading case of
Gariya
Safaris (Pvt) Ltd v van Wyk
the
High
Court had occasion to remark that:
“A
summons has legal force and effect when it is issued by the plaintiff
against an existing legal or natural person. If there is no legal or
natural person answering to the names written in the summons as being
those of the defendant, the summons is null and void ab
initio.”
[27]
That proposition of law was cited with approval by this Court in
Fadzai
John v Delta Beverages
and a host of other cases cited by the respondent from both local and
foreign jurisdictions. It is thus settled law and a matter of common
sense that one cannot sue a non-existent person.
[28]
The main distinguishing feature in this case is that arbitral
proceedings are different from trial proceedings in courts of law.
Sight should therefore not be lost that trial proceedings in a court
of law are commenced by summons drafted by the plaintiff. On the
other hand arbitral proceedings are commenced by a reference drafted
by the conciliator in terms of the Act. The claimant has no control
over the drafting of the reference to arbitration whereas the
plaintiff has full control over the drafting of the summons. It would
therefore seem unfair and unjust to penalise the claimant for the
sins of the conciliator in crafting the reference.
[29]
Counsel for the appellants further argued that where there is a
person who actually exists who is sued in their colloquial, nickname
or some other informal name, an amendment is permissible to formalise
or regularise the citation. For that proposition of law he placed
reliance on the South African case of Four
Tower Investments (Pty) Ltd v Andre's Motors
among others. In that case, shortly before the hearing of the appeal
it was discovered that in the summons and particulars of claim the
plaintiff had been incorrectly cited and referred to as a company
called Four
Tower Investments (Pty) Ltd
whereas it had been at all times a close corporation called Four
Tower Properties CC.
In the lease agreement which was the subject of the dispute between
the parties it was also referred to as a company. The letting agent
was responsible for the misdescription. Following an application for
an amendment to regularize the citation the court held that under the
circumstances an amendment was permissible. The headnote reads:
“an
application for an amendment would always be allowed unless it was
made mala
fide
or would cause prejudice to the other party which could not be
compensated for by an award of costs or by some other suitable order
such as a postponement. (At 43H).
Held,
further that there had been a gradual move from an overly formal
approach and in line with this approach courts should be careful not
to find prejudice where none really exists. (At 44I-J).
Held
further, that the fact on its own that the citation or description of
a party happened to be of a non-existent entity should not render the
summons a nullity.
Held
further,
that in the present case the citation of the plaintiff had been
nothing more than a misdescription and the application for amendment
had to be allowed. (At47F).”
[30]
It is needless to say that the Four
Tower
case
supra
is on all fours with the instant case. The judgment is grounded on
sound logic and meets the ends of justice between litigants.
[31] Back
home, in Muzenda
v Emirates Airlines & Others
the
Emirates Airlines had been misdescribed as Arab Airlines. In allowing
the amendment to regularize the name, MATANDA MOYO J had this to say:
“I
am of the view that the description of a party to a suit does not
immutably determine the nature and identity of a party. The law
reports are full with instances where the correct description of a
party was allowed, in the absence of prejudice to the other party
involved. This would be done after an application to amend. The
plaintiff herein was not diligent. After being advised of the wrong
citation of first defendant, all she had to do was apply for
amendment. I would have granted such amendment as I am of the view
that there was no prejudice to first defendant. However the court can
only do so upon asking. The court cannot mero
motu
grant
orders not sought. Without such amendment, the first defendant
remains wrongly cited. See ZFC
Ltd v Taylor
1999 (1) ZLR 308 and Order 20 Rule 132 and 134 of this court's
rules; Commercial
Union Assurance Company Limited v Waymark NO
1995 (2) SA.”
[32] The
learned judge beautifully articulates the law in circumstances that
are on all fours with the case at hand. In the same vein, in Masuku
v Delta Beverages
the same court held
that:
“… generally,
proceedings against a non-existent entity are void ab
initio
and thus a nullity. However, where there is an entity which through
some error or omission is not cited accurately, but where the entity
is pointed out with sufficient accuracy, the summons would not be
defective.”
[33] I
could go on and on but the principle of law established by case law
is clear. Where an existing entity is inadvertently misdescribed in
judicial proceedings it is permissible to apply for correction of the
anomaly in good faith provided that there is no irreparable prejudice
to the other party.
[34] It
is common cause that taking a cue from laid down precedent the
appellants successfully applied to the court a
quo
before the same judge for an amendment of the citation of the
respondent's name. He granted the order on 31 May 2018 under order
number LC/MD/ORD/78/2018. It reads:
“it
is ordered that:
1. the
application to amend the citation of the respondent be and is hereby
granted.
2. each
party is to bear its own costs.”
[35] It
is amazing that when the matter came up for hearing on the merits the
same judge held that the proceedings before the arbitrator were a
nullity because the appellants had sued a non-existent person. This
was clearly a serious misdirection considering that the honourable
judge was bound by his earlier order that had regularised the
incorrect citation of the respondent.
WHETHER
OR NOT THE APPELLANTS WERE PROPERLY BEFORE THE ARBITRAL TRIBUNAL
[36]
It will be remembered that the arbitrator's terms of reference
were “To determine whether the dismissal of E Mapondera and 60
others was lawful or not.” It is trite that an arbitrator is bound
by the given terms of reference. He has no jurisdiction outside the
terms of reference. Respondent's objection sought to amend the
terms of reference by limiting the terms of arbitration to E
Mapondera to the exclusion of the 60 other employees. This the
arbitrator could not do as it would amount to a violation of his
terms of reference.
[37] Placing
reliance on the High Court cases of Panganai
and 20 Others v Kadir and Sons (Private) Limited
and
Prosser
and 35 Others v Ziscosteel Company Limited,
the
learned judge a
quo
held that apart from E Mapondera the other 60 employees were not
properly before the arbitrator. He reasoned that this was because the
arbitrator had not been provided with a list of their names and they
had not filed affidavits professing joinder to the arbitral
proceedings.
[38]
It is rather ironic if not irrational that the respondent sought
validation of dismissals that were carried out in the name of a
non-existent person styled Freda Rebecca Gold Mine which it disowns.
It was therefore a serious misdirection that after holding that the
proceedings before the arbitrator were a nullity, the learned judge
proceeded to determine the appeal on the merits. This was despite his
ruling that there was no respondent before him.
[39] What
escaped the learned judge a
quo's
attention is that the two precedents he relied upon in para 33 above
were determined by the High Court in terms of the High Court Rules
which are not strictly applicable to arbitration proceedings in terms
of the Act. Again the learned judge failed to distinguish arbitral
proceedings from trial proceedings in a court of law.
[40]
Conscious of his obligation to determine the complaint of the 60
other employees by reference, the arbitrator properly sought and
obtained clarification on the identities of these other employees.
That clarification was communicated to the respondent thereby giving
it an opportunity to be heard on the authenticity of the list of
names provided. There was therefore no prejudice to the respondent,
real or imagined. In my view the arbitrator did not misdirect himself
in any way as that was the correct thing to do to facilitate the
proper discharge of his mandate in terms of the reference. Thus,
again, the learned judge a
quo
misdirected himself and fell into error by holding that the other 60
appellants were not properly before the arbitrator.
[41] Having
come to the conclusion that the 60 other employees were not properly
before the arbitrator, it was remiss of the learned judge a
quo
to
proceed to deal with the merits of the appeal before him. He again
erred in this respect. The proceedings beyond that finding were
therefore a legal nullity. They cannot stand in light of the gross
misdirection by the learned judge a
quo.
WHETHER
OR NOT IT WAS PROPER FOR THE ARBITRAL TRIBUNAL TO ORDER REINSTATEMENT
OF THE APPELLANTS WITHOUT AN ALTERNATIVE OF PAYMENT OF DAMAGES IN
LIEU OF REINSTATEMENT
[42] In
view of the finding that the proceedings pertaining to the merits of
the case were a legal nullity, it shall not be necessary to determine
the above issue.
DISPOSAL
[43] For
the foregoing findings of fact and law, I hold that both the
appellants and the respondents were properly cited and lawfully
appeared before the arbitrator. The court a
quo
fell into error and misdirected itself by nullifying the proceedings
before the arbitrator without any legal basis. The court a
quo
therefore ought to have dismissed both objections in
limine
and proceeded to hear and determine the appeal on the merits.
[44]
In the result it shall be necessary to reverse the court a
quo's
judgment and order a rehearing of the appeal before a different judge
as the judge a
quo's
views
appear to have been clouded by his earlier faulty findings of fact
and law.
[45]
Costs follow the result in respect of the appeal whereas costs of
the objection in
limine
shall be in the cause.
[46] It
is accordingly ordered that:
1. The
appeal be and is hereby allowed with costs being costs in the cause.
2. The
judgment of the court a
quo
be and is hereby set aside and substituted with the following:
“(a) The
preliminary points raised by the appellant relating to its
miscitation be and is hereby dismissed.
(b) The
preliminary point raised by the appellant relating to the proper
citation of the 2nd
to the 60th
respondents be and is hereby dismissed. The 2nd
to 60th
Respondents are hereby held to be properly before the court.”
3. The
court a
quo's
determination on the merits of the appeal before it be and is hereby
quashed and set aside.
4. The
matter be and is hereby remitted to the court a
quo
for a hearing de
novo
of the appeal before a different judge.
MAVANGIRA
JA: I
agree
CHITAKUNYE
JA: I
agree
Dube,
Manikai & Hwacha,
appellant's
legal practitioners
Gill,
Godlonton & Gerrans,
respondent's
legal practitioners
1.
Page 165 of the record
2.
1999 (1) ZLR 220 (S)
3.
SC 88/20
4.
1996 (2) ZLR 246 (H)
5.
SC 40/17
6.
2005 (3) SA 39 (N)
7.
HH 775/15
8.
2012 (2) Z LR 112 (H)
9.
HH 26-95
10.
HH 201-93