IN
CHAMBERS
KUDYA
AJA:
This is a chamber application for condonation of the late filing of
an appeal and extension of time within which to appeal launched in
terms of Rule 43(1) of the Supreme Court Rules, 2018.
The
application is opposed.
BACKGROUND
FACTS
The
applicant and the respondent are joint owners of an immovable
property, Stand 24 Philadelphia Township of Philadelphia, Harare held
under Deed of Transfer 4986/02.
On
16 February 2017, they executed a Deed of Settlement on the disposal
of the immovable property in question, whose terms were incorporated
in consent orders granted by the High Court in other cases that were
pending between them.
The
parties agreed to engage two estate agents, Guest and Tanner and Dawn
Properties, to value the immovable property. The mean of the two
valuations was to be the value of the property. If, however, any
party was dissatisfied with any of the two valuations, the parties
legal practitioners would jointly choose a third estate agent, whose
valuation would be final.
Thereafter,
the applicant had the right to buy out the respondent's one-half
share in the property within 6 months of receipt of the acceptable
valuation, failing which the respondent had the same right to buy out
the applicant's one half share within a further period of 6 months.
In
the event that the parties failed to exercise their respective
rights, the property was to be sold by private treaty with the
parties sharing the net proceeds, equally.
The
parties jointly instructed the two estate agents to value the
property. Dawn Properties valued it at US$250,000 while Guest and
Tanner valued it at US$292,000.
The
two valuators submitted their respective reports on 28 March 2017 and
30 March 2017 to the parties respective legal practitioners.
The
applicant's legal practitioners failed to appreciate the valuation
methodology applied by Guest and Tanner. Consequently, on 26 May
2017, they sought the estate agent's comments on these aspects
without copying their correspondence to the respondent's legal
practitioners.
In
response, the estate agent cryptically asserted that the valuation
amount constituted a typographical error and proceeded to rectify the
earlier amount by substituting it with the lower figure of
US$192,000.
The
respondent's legal practitioners were oblivious of the
communication between the applicant's legal practitioners and Guest
and Tanner. They simply filed away the original valuation report
without much thought.
The
respondent's legal practitioners forwarded the corrected Guest and
Tanner valuation report to the applicant's legal practitioners.
Apparently, the respondent's legal practitioners, again, simply
filed away the rectified report.
Thereafter,
the respondent's legal practitioners computed the value of the
property at US$221,000 being the mean of the lower Guest and Tanner
figure and the Dawn Properties figure.
The
respondent exercised his right of first refusal and on the directions
of the applicant's legal practitioners deposited, within the
prescribed payment period, on 5 January 2018, the one-half share due
to the applicant in the sum of US$110,500 into her nominated bank
account and transmitted proof of payment.
Thereafter,
he sought transfer of the property into his name but the applicant
refused to cooperate.
He
applied to the High Court for an order compelling the applicant to
make transfer. She contested it on the basis that the respondent's
legal practitioners were guilty of material fraudulent non-disclosure
of failing to copy the inquiry letter to Guest and Tanner to her
legal practitioners, which induced her to accept payment of
US$110,500.
She
averred that the material non-disclosure influenced Guest and Tanner
to reduce the value of the property to her prejudice.
The
court a quo accepted that the respondent's legal practitioners had
acted unethically but dismissed the objection and granted the
application for the transfer of the applicant's one-half share in
the property to the respondent.
The
applicant appealed to this Court on two grounds of appeal in case
number SC909/2018. The appeal was heard on both the preliminary point
raised by the respondent and on the merits on 30 June 2019.
The
preliminary point raised was that the two grounds of appeal were
prolix and argumentative.
Judgment
was reserved and handed down on 24 October 2019, as Judgment No.
SC85/19. The appeal was determined on the preliminary point.
The
two grounds of appeal were found to be “prolix and argumentative”.
The appeal was accordingly struck off the roll on the basis that the
notice of appeal was fatally defective.
On
13 November 2019, the applicant's legal practitioners of record
wrote to the Registrar of this Court seeking the correction of the
judgment in terms of Rule 73 of the Supreme Court Rules as read with
Rule 449(1)(b) of the High Court Rules.
Out
of an abundance of caution the applicant filed the present
application on 21 November 2019.
It
was opposed on 28 November 2019.
The
answering affidavit was irregularly filed on 6 December 2019, outside
the period prescribed in Rule 43(5) of the Supreme Court Rules, 2018.
The
matter was set down in chambers on 20 December 2019, and removed from
the roll for the reason that the letter of 13 November 2013, seeking
correction of the judgment of this Court constituted lis pendens.
The
applicant managed to save her application by withdrawing the letter
of 13 November 2019, on 27 January 2020.
Consequently,
the respondent filed his heads of argument on 30 January 2020, while
the applicant did so on 4 February 2020.
The
application is silent on the events between that date and 2 October
2020, when the matter was placed before me, without the heads of
argument.
I
set it down for hearing on 9 October 2020, on which date the parties
handed copies of their heads of argument from the bar.
At
the hearing, the respondent raised five preliminary points. These
concerned the use of the wrong form, the lack of authority by the
deponent to the founding affidavit to depose to it, lis pendens,
defective grounds of appeal in the draft notice of appeal and an
invalid draft order.
I
heard argument on both the preliminary points and on the merits.
I
indicated to the parties that I would not proceed to determine the
matter on the merits if I upheld any of the preliminary points raised
and reserved judgment.
I
deal with each preliminary point in turn.
THE
PRELIMINARY POINTS
THE
USE OF THE WRONG FORM
The
respondent contended that, in the absence of a specified form
prescribed for use by the rules of this Court in respect of the
present application, the applicant should, in terms of Rule 73 of the
Supreme Court Rules, have resorted to Rule 241 of the High Court
Rules, which prescribes the use of Form 29, with appropriate
modifications, in a chamber application such as this one.
Rule
73 provides that:
“In
any matter not dealt in these rules, the practice and procedure of
the Supreme Court shall, subject to any direction to the contrary by
the court or a judge, follow as closely as may be, the practice and
procedure of the High Court in terms of the High Court Act [Chapter
7:06] and the High Court Rules.”
And
Rule 241 of the High Court Rules states that:
“241.
Form of chamber applications
(1)
A chamber application shall be made by means of an entry in the
chamber book and shall be accompanied by Form 29B duly completed and,
except as is provided in subrule (2), shall be supported by one or
more affidavits setting out the facts upon which the applicant
relies. Provided that, where a chamber application is to be served on
an interested party, it shall be in Form No.29 with appropriate
modifications.”
Mr
Mhlanga, for the respondent, submitted that the form used in the
present application was defective for want of compliance with Form 29
with appropriate modifications.
Mr
Paul, for the appellant, made the contrary submission that the form
used by the applicant fully complied with the requirements stipulated
in the proviso to Rule 241.
While
Mr Mhlanga conceded that the format used by the applicant is the one
that has always been used before this Court in this kind of
application, he contended that the format fell short of the
requirements prescribed by MAFUSIRE J in Base Mineral Zimbabwe (Pvt)
Ltd & Anor v Chiroswa Minerals (Pvt) Ltd & Ors HH 559/14 at
p7-8 of the cyclostyled judgment. The learned judge said that:
“The
proviso to Rule 241(1) permits the modification of Form 29 where the
chamber application has to be served. What would constitute
'appropriate modifications' is not stated. Why then does it
become important that every time a chamber application has to be
served, the applicant should abandon Form 29B and switch over to Form
29?
In
my view, once the chamber application becomes one that must be served
then the respondent is entitled to a period within which to file
opposing papers.
The
'appropriate modifications' would include, in my view, a fusion
of the contents of Form 29 and those of Form 29B. In other words, it
becomes a hybrid, containing both '…. the plethora of procedural
rights…..' of Form No. 29, including the dies induciae, and a
summary of the grounds of application of Form No. 29B.”
The
difference between Form 29B and Form 29 is that the former specially
prescribes the insertion of a summary of the grounds of the
application ex facie the application and predicates the application
on a draft order. The latter, unlike the former, is a 'Take Notice'
form predicated upon a draft order specifically premised on a
'plethora of procedural rights'1
alerting a respondent of the time frame within which to take action
and the appropriate documentation.
The
distinction between the main provision and the proviso in Rule 241(1)
is that the main provision supplies the documentation that is missing
ex facie Form 29B while the proviso supplies that information ex
facie Form 29.
It
is significant that the proviso designates the use of Form 29 and not
Form 29B in peremptory language for chamber applications to be served
on interested parties.
In
my view, this specific designation 'ousts' the inclusion of 'the
summary of the grounds of the application' required on the face of
Form 29B.”
The
appropriate modifications contemplated in the proviso have nothing to
do with the ex facie contents required by Form 29B but have
everything to do with the different time frames or dies induciae
within which the notices of opposition are required to be filed.
The
appropriate modifications are not a requirement for applications
predicated on Form 29. Their absence or omission would not render the
application for condonation and extension of time within which to
file an appeal defective let alone fatally defective.
I
am satisfied that while the notice does not comply with the
requirements of Form 29B, it faithfully follows the prescript of Form
29 and fully complies with the practice generally prevailing in this
Court.
The
first preliminary point is dismissed for lack of merit.
WHETHER
THE APPLICANT'S LEGAL PRACTITIONER HAS AUTHORITY TO DEPOSE TO THE
FOUNDING AFFIDAVIT
It
was common cause that both the applicant and the respondent resided
in the United Kingdom at the time the present application was
instituted.
It
was common ground that the applicant's legal practitioner of
record, Mr Paul deposed to the founding affidavit.
It
was further common cause that he could do so in terms of Rule 227(4)
of the High Court Rules as he could positively swear to the
procedural facts upon which the application was premised and to which
he confined himself.
The
respondent, however, took issue with Mr Paul's avowed authority to
institute the application for and on behalf of the applicant.
He
did not appreciate why the respondent could not personally depose to
the founding affidavit in her own name or alternatively file a
supporting affidavit of her instructions to Mr Paul, since, as the
dominus litis, she had ample time to institute the present
proceedings unlike the respondent who had the invidious position of
filing his opposing affidavit within the prescribed 3-day period from
the United Kingdom; a feat which he still managed to do.
Mr
Mhlanga contended that Mr Paul failed to substantiate the bald
averment of authorisation deposed to in para 2 of the founding
affidavit once that deposition had been contested in the opposing
affidavit.
He
did not file any answering affidavit and therefore deprived himself
of the opportunity to demonstrate his agency.
At
the hearing, Mr Mhlanga opposed Mr Paul's attempt to tender the
notarised power of attorney he received from the applicant on 20
December 2019 from the bar.
The
background facts of the matter show that Mr Paul has been the
applicant's erstwhile legal practitioner in this dispute since
assuming agency in 2018. He is a registered legal practitioner
authorised to practice as such in terms of section 8 of the Legal
Practitioners Act [Chapter 27:07].
I
am satisfied that the bald assertion in paragraph 2 of his founding
affidavit adequately demonstrated his authority.
That
he was not on a frolic of his own was confirmed by the notarised
power of attorney executed by the applicant in the United Kingdom on
20 December 2019.
In
any event, he is the one who signed the present application as the
applicant's legal practitioner in compliance with the provisions of
Rule 43(1) and (3) of the Supreme Court Rules, 2018.
The
second preliminary point is unsustainable and must be dismissed.
WHETHER
THE MATTER IS LIS PENDENS
It
was common cause that as at the date of the present hearing, the
question of lis pendens had long ceased to be a live issue before me
by reason of the withdrawal on 27 January 2020 of the request for the
rescission of SC85/2019 previously sought by the applicant in terms
of Rule 449(1)(b) of the High Court Rules.
Accordingly,
this point in limine is dismissed.
DEFECTIVE
GROUNDS OF APPEAL IN THE DRAFT NOTICE OF APPEAL
The
mandatory draft notice of appeal, in contrast to the one struck off
the roll, which contained only 2 grounds of appeal, comprises of a
whopping 9 grounds. The two grounds of appeal were worded as follows:
1.
The learned judge erred in holding that the Appellant was bound by
her apparent agreement that Respondent could acquire her half share
in the property for $110,500 and should have held that her apparent
agreement was induced by material non-disclosure made by Respondent's
legal practitioner, on behalf of Respondent, and was therefore not
binding on her. The material non-disclosures were:
(a)
That an earlier valuation of the property had been received from
Guest and Tanner for a substantially higher amount;
(b)
That Respondent's legal practitioner had written to Guest and
Tanner without copying that letter to Appellant's legal
practitioners, querying the valuation;
(c)
That the letter so written purported to have been on the instructions
of both Appellant's and Respondent's legal practitioners when
that was not the case;
(d)
That Guest and Tanner had then produced the second valuation for a
substantially reduced figure.
2.
That in any event the learned judge should have held that the first
valuation from Guest and Tanner was the correct applicable valuation
in terms of the parties agreement and the order of the court and that
Respondent had not exercised his option to purchase a half share
based on that valuation.
The
first ground was held to be “no doubt, prolix and argumentative”
in the sense that it was unreasonable, tediously detailed, long
winded, verbose and rambling. It did not attack the order granted a
quo nor the legal basis, of estoppel, upon which that order was
premised.
The
second not only failed to attack the order a quo but also constituted
a recital of the appellant's prayer.
I
reproduce the proposed nine grounds of appeal attached to the present
application below.
“1.
The learned judge erred in holding that the Appellant accepted
Respondent's right to purchase the property for $110,500.00 by
giving instructions as to where the money should be paid. He erred
because at the time that she gave the instruction she was unaware of
the existence of the earlier valuation from Guest and Tanner and she
had been misled into believing that only two relevant documents were
annexures 'G” and “I” to the Founding Affidavit.
2.
The learned Judge erred in holding that Appellant should have
exercised her right to require a third valuation. He erred because,
since she was unaware of the earlier valuation from Guest and Tanner,
she had no reason at the time not to accept the second valuation
supplied to her. In any event she had the option of requiring that
the property be sold and proceeds shared.
3.
The learned Judge erred in holding that the Affidavit of Martin
Chiyara (sic) was of no substance. He erred because Mr Chigara's
(sic) evidence was that he had not noticed that the valuation which
he received on 26 July 2017 differed from the valuation which had
been received by him almost 3 months previously, which fact was of
substance and was most important.
4.
The learned Judge erred in holding that the Appellant, having
subsequently been informed that the first valuation had a
typographical error, should have accepted this fact. He erred
because:
(a)
Because the valuation was substantially lower that (sic) the
valuation from Dawn Property Consultancy.
(b)
No explanation was given as to how the typographical error had been
made in such an important document.
(c)
The valuation was obviously based on some mathematical calculations
which were not furnished.
(d)
The letter explaining the error had missing figures which had not
been inserted in the appropriate places.
(e)
The author of the valuation had died and could not be asked to
clarify the above.
5.
The learned Judge erred in holding that the Appellant and her then
legal practitioner were obliged to accept the explanation that the
figure given in the first valuation was a typographical error. He
erred because the Consent Order entitled her to reject any valuation
given.
6.
Insofar as the learned Judge may have held that Appellant accepted
Respondent's right to purchase the property because she personally
was aware of the first valuation, he erred because there was no
evidence which would support such a finding.
7.
The learned Judge erred in holding that the principle of estoppel
applied. He erred because estoppel can never operate against a person
who has given his or her consent to the purchase of a property when
such consent was obtained as a result of a material or possible
fraudulent non-disclosure by the other party.
8.
The learned Judge erred in holding that her then legal practitioner
was practitioner were (sic) at fault for not noticing the discrepancy
in the two valuations. He erred because a person who, on the face of
it, sets out to mislead the other party should not be heard to
complain when his purpose has been achieved.
9.
The learned Judge erred in holding that the amended valuation given
by Guest and Tanner on 23 June 2017 was one of the two valuations
required by the Consent Order. He erred because the valuation given
by Guest and Tanner on 30 March 2017 was the first valuation and it
could not be amended without Applicant's knowledge and consent. In
the circumstances Respondent had no right to purchase the property
for a price which was not based on the first valuation, in
conjunction with the valuation from Dawn Property Consultancy.”
THE
LAW
Rule
44 of the Supreme Court Rules requires in peremptory language that
grounds of appeal must be set out “clearly and concisely”.
What
constitutes concise grounds of appeal was enunciated by this Court in
Master of the High Court v Lilian Grace Turner SC 77/93 thus:
“It
goes without saying that by concise is meant brief but comprehensive
in expression… It is not for the court to sift through numerous
grounds of appeal in search of a possible valid ground; or to page
through several pages of 'grounds of appeal' in order to
determine the real issues for determination by the court. The real
issues for determination should be immediately ascertainable on
perusal of the grounds of appeal.”
See
also Chikura NO & Anor v Al Sham Global BVI Ltd SC 17/17 at para
8.
These
requirements were further clarified in Kunonga v Church of the
Province of Central Africa SC 25/17 at p15, in the following way:
“Firstly,
the notice must specify details of what is appealed against (i.e. the
particular findings of fact and rulings of law that are to be
criticized on appeal as being wrong) and secondly, the grounds of
appeal must indicate why each finding of fact or ruling of law that
is to be criticised as wrong is said to be wrong. For example,
because the finding of fact appealed against is inconsistent with
some documentary evidence that shows to the contrary; or it is
inconsistent with oral evidence of one or more witnesses; or because
it is against the probabilities.”
Mr
Mhlanga argued that all the nine proposed grounds of appeal were
prolix and argumentative.
The
proposed grounds of appeal against factual findings are undoubtedly
wordy and detailed and unnecessarily rambling and argumentative. They
would not pass muster the “brief but comprehensive” standard in
the Grace Lilian Turner case, supra, but pruned of these excesses
appear to conform to the requirements set out in the Kunonga case,
supra, in that they attack the specific findings of the court a quo
and the basis thereof.
In
any event, it seems to me that the ground attacking the ruling of law
on estoppel appears to meet the two tier test propounded in both
these cases. It, therefore, constitutes the saving grace of the
grounds of appeal.
In
the premises, I dismiss the fourth preliminary objection.
DEFECTIVE
DRAFT ORDER
Mr
Paul conceded that the draft order to the proposed notice of appeal
did not comply with Practice Direction No.1 of 2017 in that it did
not seek condonation for the late noting of the appeal.
Mr
Mhlanga reluctantly conceded to the production at the hearing of an
amended draft order, which effectively disposed of the fifth
preliminary point.
THE
MERITS
The
broad factors to be taken into account in an application of this
nature have been stated in a number of cases and are now well
established. They are:
(i)
The extent of the delay;
(ii)
The reasonableness of the explanation for the delay; and
(iii)
Prospects of success.
See
De Kuszaba-Dabrowski et Uxor v Steel NO 1966 RLR 60 (A) at 62 and 64;
1966 (2) SA 277 (RA); HB Farming Estate (Pty) Ltd & Anor v Legal
and General Assurance Society Ltd 1981 (3) SA 129 (T) at 134A-B;
Kombayi v Berkhout 1988 (1) ZLR 53 (S) 57G-58A.
Other
additional but not exhaustive factors are:
(i)
The importance of the case;
(ii)
The respondent's interest in the finality of the case;
(iii)
The convenience of the court; and
(iv)
The avoidance of unnecessary delays in the administration of justice.
See
K.M. Auctions (Pvt) Ltd v Adenash Samuel & Anor SC 15/12 at p3;
Mutizhe v Ganda & Ors SC 17/2009 at 7; and Maheya v Independent
African Church S-58-07 at p5.
THE
EXTENT OF THE DELAY
In
Bishop Elson Madoda Jakazi & Anor v The Anglican Church of the
Province of Central Africa & Ors SC10/13 at p2 of the cyclostyled
judgment ZIYAMBI JA held that, the delay in filing an application for
condonation for non-compliance with the rules was inordinate.
In
that case the impugned judgment was delivered on 19 May 2010. Two
days later the fatally defective notice of appeal was filed. The
appeal was heard on 22 October 2012 and struck off the roll on the
ground that the notice of appeal was fatally defective. The appellant
thereafter filed an application for condonation on 1 November 2012.
The delay for filing condonation was reckoned from the date of the
High Court judgment and adjudged inordinate.
In
the present matter, the judgment appealed against was delivered on 14
November 2018. The initial notice of appeal, which was found to be
fatally defective on appeal, was filed timeously on 28 November 2018.
The appeal was heard on 30 June 2019 and struck off the roll on 24
October 2019 by reason of the defective notice.
The
present application was filed on 21 November 2019, and prosecuted in
October 2020.
On
the authority of the analogous Bishop Jakazi case, supra, I find that
the delay in filing the present application was inordinate.
THE
REASONABLENESS OF THE EXPLANATION FOR THE DELAY
The
applicant is required to state in her founding affidavit the reasons
for the delay. This is because her application stands or falls on the
averments deposed to in the founding affidavit. See Fuyana v Moyo SC
54/2006 at p10.
The
applicant should not expect the court to ferret in cross reference
files or to surmise from the circumstances of the case what the
reasons for the delay are. This is for the simple reason that it is
not the duty of the court to make up a case for a litigant but for
litigant to make out her case and persuade the court on the propriety
of granting the indulgence sought.
This
position is affirmed by UCHENA JA in Nzara & Ors v Kashumba &
Ors SC 18/18 at p.15 these words:
“A
court is not entitled to determine a dispute placed before it wholly
based on its own discretion, which is not supported by the issues and
facts of the case. It is required to apply the law to the facts and
issues placed before it by the parties.” (My emphasis)
See
also Kauesa v Minister of Home Affairs and Others 1996 (4) 965 (NmS)
at 973H to 974.
In
the present application, despite the intimate and active involvement
of Mr Paul in this case and the existence of all the relevant
information in the cross reference files pertaining to this matter,
Mr Paul, as the deponent to the founding affidavit, did not proffer
any explanation for the delay in noting the appeal, seeking
condonation and prosecuting this application. See Saloojee and Anor,
NNO v Minister of Community Development 1965 (2) SA 135 (A) at 138H.
He
conceded as much at the hearing.
He,
however, argued that as the applicant had reasonable prospects of
success on appeal, the failure to provide the reasons for the delay
in the application was not fatal.
He
was wrong.
The
contention is contrary to what this court said the Director of Civil
Aviation v Hall 1990 (2) ZLR 354 (S) at 358B-C where GUBBAY CJ cited
with approval MULLER JA in Bosman Transport Works Committee & Ors
v Piet Bosman Transport (Pty) Ltd 1980 (4) SA 794 (A) at 799D-E that:
“Where
there has been a flagrant breach of the Rules of this Court in more
than one respect and where in addition there is no reasonable
explanation for some periods of delay and indeed, in respect of other
periods of delay, no explanation at all, the application should …
not be granted whatever the prospects of success may be.”
See
also Makonye v Barclays Bank Ltd SC 10/2007 and Marange v Chiroodza
SC 29/2012 where failure to give an explanation let alone a
reasonable one was fatal to analogous applications.
In
Zimslate Quartzize (Pvt) Ltd & Ors v CABS SC 34/17 at para 17 it
was held that:
“An
applicant, who has infringed the rules of the court before which he
appears, must apply for condonation and in that application explain
the reasons for the infraction. He must take the court into his
confidence and give an honest account of his default in order to
enable the court to arrive at a decision as to whether to grant the
indulgence sought.
An
applicant who takes the attitude that indulgences, including that of
condonation, are there for the asking does himself a disservice as he
takes the risk of having his application dismissed.”
I
was inclined to dismiss the application for this fatal flaw but for
the case of Katsande v Katsande SC 49/19 wherein this Court still
considered the prospects of success, in the absence of an explanation
for the delay in filing a similar application and actually granted
the application.
This
court appears to have adopted a liberal approach to still consider
the prospects of success in cases where the delay has been inordinate
and the explanation thereof either lacking or unreasonable as
underscored in Viking Woodwork (Pvt) Ltd v Blue Bells Enterprises
(Pvt) Ltd 1998 (2) ZLR 249 (S) at 251, which stated that:
“Where
the explanation for the delay is far from satisfactory, the court
will still exercise its discretion in favour of granting the
indulgence of condonation provided the proposed appeal is arguable.
The role of the judge in an application of this nature is to stand
sentinel at the gates of the court guarding against those desirous of
making a grand entrance into the court with unarguable appeals. In
respect of those, the gate must be firmly shut.”
The
approach to follow was also delineated in Mutizhe v Ganda & Ors
SC 17/2009 at 7, where it was stated that:
“One
looks at the founding affidavit for evidence of the facts stated as
grounds of appeal. Considering these facts together with the reasons
for the judgment appealed against and applying the relevant law, one
can decide whether there are good prospects of success on appeal.”
The
facts upon which the applicant seeks to impugn the judgment of the
court a quo were that the mean valuation of the immovable property
upon which the applicant was bought out by the respondent was partly
based on an inexplicable US$100,000 reduction of the initial
valuation report prepared by one of the parties valuators of choice,
Guest and Tanner.
The
first report of 30 March 2017, placed an open market value of the
property at US$292,000.
That
report was received by the respective legal practitioners of the
parties.
The
property consisted of the land, various outbuildings in a state of
disrepair and a one storey incomplete brick and mortar and concrete
unroofed superstructure.
The
applicant's legal practitioners filed the report away without much
ado.
The
respondent's legal practitioners scrutinized it and by letter of 26
May 2017, sought certain clarifications on the methodologies used to
value the property.
Even
though they insinuated that the enquiry was from both parties, they
did not copy the letter of enquiry to the applicant's legal
practitioners.
In
the response of 23 June 2017, Guest and Tanner sincerely apologized
“for the typographical error in the valuation certificate that
erroneously reflected the open market value as US$292,000 instead of
US$192,000.”
They
enclosed the second valuation report with the corrected values and
highlighted that they had used the composite method of valuation.
Guest
and Tanner further affirmed that the sum of US$192,000 would continue
to reflect the reasonable realisable open market value of the
property in the upcoming 6 month periods contemplated in the consent
orders of the High Court.
On
26 July 2017, the respondent's legal practitioners dispatched the
corrected valuation report, without the related correspondence, and
the valuation from Dawn Properties, to the applicant's legal
practitioners.
The
applicant thereafter consented to the mean value of the property.
She
purported to have acted in blissful ignorance of the existence of the
first Guest and Tanner report, which carried the higher value.
She
provided her legal practitioners with her bank account on or about 19
September 2017. The respondent deposited her half-share therein,
within the prescribed 6 months, on 5 January 2018.
She
did not voluntarily transfer her half-share to the respondent.
The
respondent sued her for transfer on 5 March 2018, and obtained
judgment on 14 November 2018.
It
was in those proceedings that she disclosed the basis for her
attempted repudiation of the agreement to transfer her half-share on
payment of the agreed purchase price.
She
suspected that the respondent had, in the undisclosed letter of 26
May 2017, influenced Guest and Tanner to reduce the value of the
property.
The
letter in question formed part of the attachments to the pleadings
filed a quo.
The
court a quo made certain findings of fact. These were that:
(i)
The contents of the letter could not have influenced Guest and Tanner
to rectify the value of the property, as the seven questions sought
explanations of how the valuation was done and was therefore not
prejudicial to the applicant.
(ii)
The avowed typing error was genuine.
(iii)
She had not established that the corrected value was incorrect.
(iv)
The applicant's legal practitioner had received the initial and
subsequent valuation reports from Guest and Tanner, which had
noticeable differences in the market value of the property.
(v)
When the applicant became aware of the higher value, through her
legal practitioner on 22 July 2017, she could have sought a third
valuation and dispensed with the mean average value, but failed to do
so.
(vi)
She accepted a one off payment and not part payments with knowledge
of the two Guest and Tanner valuations.
(vii)
She was estopped from rejecting transfer after misleading the
respondent that her acceptance was with full knowledge of the facts
pertaining to the two Guest and Tanner valuations.
(viii)
The consent court order upon which their respective actions were
based had to be obeyed or enforced.
At
the hearing, Mr Paul conceded that in the circumstances of this case,
the failure by the respondent's legal practitioners to copy the
letter of 26 May 2017 to the applicant's legal practitioners could
not constitute fraudulent non-disclosure but argued that it
constituted material non-disclosure.
Mr
Mhlanga strongly argued that it did not constitute either fraudulent
or material non-disclosure as the contents of that letter did not
question the initial value provided by Guest and Tanner but sought to
understand the manner in which the valuation had been done.
One
of the pertinent questions pertained to whether the comparative
method of valuation related to analogous incomplete superstructures
in comparable localities or completed houses.
This
and the other questions were relevant in view of the caveat in both
reports that there were insufficient comparable sales of analogous
properties.
The
valuator apparently applied the residual method estimate formula to
cross check the value of the property against those of similar but
completed houses.
The
court a quo reasoned that as the seven questions were innocuous,
banal and general, they could not conceivably have influenced Guest
and Tanner to rectify the value of the immovable property.
In
my view, that finding is unimpeachable.
In
Attorney-General v Paweni Trade Corp (Pvt) Ltd & Ors 1990 (1) ZLR
24 (S) at 27G, KORSAH JA defined fraud as follows:
“Generally
speaking, fraud consists in knowingly making a false representation
of fact with the intention to defraud the party to whom it is made,
and such false representation actually causes prejudice or is
potentially prejudicial to another”.
See
also Wamambo v General Accident Insurance Co of Zimbabwe Ltd 1997 (1)
ZLR 299 (H) at 309G and S v Dzawo 1999 (2) ZLR 303 (H) at 305H-306A.
The
letter was clearly not calculated to induce Guest and Tanner to lower
the value of the property.
She
also patently failed to establish that the conduct of the
respondent's legal practitioner materially induced her to accept
the purchase price offered by the respondent.
In
any event, the applicant's legal practitioner was served with both
valuations from the same valuer, with different dates and values.
The
duty of a legal practitioner to his client was articulated in M M
Pretorious (Pvt) Ltd & Anor v Mutyambizi SC 39/12 at p.4 in these
words:
“A
legal practitioner is not engaged by his client to make omissions and
to commit 'oversights'. He is paid for his professional advice
and for the use of his skills in the representation of his client. He
is not paid to make mistakes. These could be costly to his client. He
is professionally, ethically and morally bound to exercise the utmost
diligence in handling the affairs of his client.”
The
supporting affidavit of the applicant's legal practitioner at the
time demonstrated that he acutely failed to handle his client's
mandate with probity.
A
diligent legal practitioner would keep the documents pertaining to
the applicant in one file from which he would constantly refer before
acting on information received from other legal practitioners. He
would also be expected to constantly appraise his client on the
progress of her case.
It
is inconceivable that the applicant's legal practitioner would have
failed to observe the initial valuation report and compared it with
the rectified version.
His
main business at hand on receipt of the letter and attachments from
the respondent's legal practitioner suggesting the amount of the
applicant's half-share was to satisfy himself that the suggested
amount was backed by the valuation reports and thereafter advise his
client accordingly.
In
any event, as was pronounced by this Court in Apostolic Faith Mission
in Zimbabwe & Ors v Titus Innocent Murefu SC28/03, which cited
with approval the sentiments of STEYN CJ in Saloojee & Anor NNO v
Minister of Community Development 1965 (2) 135 (A) at p141C-E, there
is a limit beyond which the client cannot escape the consequences of
the conduct of his legal practitioner and where the limit has been
exceeded, the sins of the legal practitioner will visit his client.
It
was also common ground that the legal practitioner in question was
not only the legal practitioner of the applicant but also her agent.
It
is trite that the actions of an agent in the exercise of his mandate
are attributed to and bind his principal.
In
the present matter, the receipt of the two valuation reports by her
legal practitioner cum agent and his sworn shortcomings are ascribed
to and do bind her. See Rhodes Motors (Pvt) Ltd v Pringle-Wood, NO
1965 (4) SA 40 (SRA) at pp.44-46, and the cases cited therein.
It
was on this twin basis that the court a quo correctly held at p6 of
the cyclostyled judgment that:
“It
is not enough for Chijara or indeed the respondent (applicant in the
present application) to say that after receiving the 2 reports they
did not scrutinize them in order to see that they were different.
That is their fault and in the process the applicant (respondent in
the present case) prejudicially acted on the strength of their
actions.”
In
the light of the limitations to the power of an Appeal Court on the
discretion exercised by a court of first instance on findings of
fact, espoused in such cases as of Hama v National Railways of
Zimbabwe 1996 (1) ZLR 664 (S) at 670C-E, it is unlikely that the
factual findings of the court a quo would be successfully impugned on
appeal.
I
also do not find that the applicant would successfully impeach the
add weight sentiments of the court a quo on estoppel and the
inviolability of the principle of obedience of court orders, such as
the consent orders of February 2017, upon which the payment of the
applicant's half-share was based.
I
am satisfied that the applicant does not have an arguable case based
on either fraudulent misrepresentation or material non-disclosure
upon which an Appeal Court could find that she was induced by the
conduct of the respondent or his legal practitioner to accept the
mean value of the property in question.
There
are, therefore, no reasonable prospects of success on appeal.
In
the end, there must be finality to litigation and the concomitant
protection of the interests of the respondent who has been unable to
execute his judgment.
Some
30 years ago, in Ndebele v Ncube 1992 (1) ZLR 288 (S) at 290C- E,
McNally JA remarked that:
“It
is the policy of the law that there should be finality in litigation.
On the other hand one does not want to do injustice to litigants. But
it must be observed that in recent years applications for rescission,
for condonation, for leave to apply or appeal out of time, and for
other relief arising out of delays either by the individual or his
lawyer, have rocketed in numbers. We are bombarded with excuses for
failure to act. We are beginning to hear more appeals for charity
than for justice. Incompetence is becoming a growth industry. Petty
disputes are argued and then re-argued until the costs far exceed the
capital amount in dispute.
The
time has come to remind the legal profession of the old adage,
vigilantibus non dormientibus jura subveniunt: roughly translated,
the law will help the vigilant but not the sluggard.”
These
perceptive words ring true to the present matter.
I
am satisfied that there are no reasonable prospects of success in the
appeal envisioned by the applicant. I agree with Mr Mhlanga that the
applicant's persistence in flogging a dead horse is not only an
abuse of the court system but unnecessarily put the respondent out of
pocket in opposing the futile and ill-fated application.
This
is a proper case for mulcting the applicant with punitive costs.
Accordingly,
the application is dismissed with costs on the scale of legal
practitioner and client.
Wintertons,
the appellant's legal practitioners
Chihambakwe
Mutizwa & Partners, the respondent's legal practitioners
1.
Zimbabwe Open University v Mazombwe 2009 (1) ZLR 101 (H)