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HH164-09 - ZIMRE PROPERTY INVESTMENT (PVT) LTD vs CITY CALVARY CHURCH

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Law of Property-viz lease agreement.

Law of Property-viz lease agreement re notice of termination iro renovations.
Law of Property-viz agreement of lease re eviction iro notice of termination.
Law of Contract-viz Deed of Settlement re compromise.
Procedural Law-viz citation re Deed of Settlement.
Law of Contract-viz Compromise Agreement re citation.
Law of Contract-viz Deed of Settlement re enforcement of Compromise Agreement through an order of court.
Procedural Law-viz amendment to draft order re pleadings.
Procedural Law-viz pleadings re variation of draft order.
Law of Property-viz lease agreement re eviction iro Deed of Settlement.
Procedural Law-viz registration of a Deed of Settlement re court order.
Procedural Law-viz disputes of fact re Deed of Settlement.
Procedural Law-viz dispute of fact re notice of termination.
Local Authorities-viz approval of plans to renovate building.
Law of Contract-viz Deed of Settlement re citation of parties to the Deed of Settlement.
Law of Contract-viz compromise agreement re Deed of Settlement.
Procedural Law-viz locus standi.
Procedural Law-viz opposing affidavit re factual averment raised in oral address to the court iro opportunity for the other party to respond.
Corporate Law-viz holding companies and subsidiaries re legal relationship.
Procedural Law-viz final order re prayer for incarceration.
Procedural Law-viz contempt of court re power of the court to order incarceration for failure to comply with an order of the court.
Procedural Law-viz pleadings re prayer for the arrest of any party.
Procedural Law-viz contempt of court re notice of court order iro personal service on person against whom it is sought to apply.
Procedural Law-viz contempt of court re judgment against a corporate body iro service of court order.
Procedural Law-viz contempt of court re personal service iro committal to gaol.
Procedural Law-viz rules of court re High Court Rules iro Rule 39(1).
Procedural Law-viz contempt of court re rules of court iro Rule 39(1).
Procedural Law-viz audi alteram partem rule.
Law of Contract-viz essential elements re intention.
Law of Property-viz eviction re eviction by the Deputy Sheriff without a court order iro legality.
Law of Contract-viz essential elements re intent iro animus contrahendi.

Lease Agreements re: Termination, Notice of Termination & the Exceptio Doli Mali iro Lessee Eviction & Incidental Possessors

On 31 August 2006, the applicant herein concluded a lease agreement with an entity known as Calvary Family Fellowship Trust in respect of certain immovable property commonly known as Guild Hall Uniprops, Harare.

The applicant is the registered owner of the building.

The Agreement was to commence on 1 September 2006, and terminate on 31 August 2007. Some time in 2007, prior to the expiry of the lease, the applicant gave notice to the City Calvary Fellowship Trust of its intention to carry out renovations on the building in order that it, the applicant, would occupy the premises after their renovation. It seems common cause that the building is somewhat dilapidated and in need of renovations. 

The lessee did not vacate in terms of the notice, resulting in the applicant instituting proceedings..., for its eviction.

Intent or Animus Contrahendi re: Trade or Past Practices, Parol Evidence Rule, Integration Rule, Rectification & Retraction

As regards the merits of the application, it is obvious that when the Deed of Settlement was negotiated, and agreed to by the parties, it was in the contemplation of the parties, whatever their appellation, that there was need for the building to be renovated. Although inelegantly worded, the theme running through the Deed of Settlement is that of the parties accommodating each other to achieve this goal.

It is with this understanding, and intention of the parties, gleaned from the Deed of Settlement, that I now approach this dispute in order to achieve a resolution of the same.

Lease Agreements re: Termination, Notice of Termination & the Exceptio Doli Mali iro Lessee Eviction & Incidental Possessors


The Deed of Settlement required that the parties enter into a new, and separate, lease agreement but it is not clear which part of the premises the lease was supposed to cover...,.

Variation of Contracts re: Deed of Settlement, Compromise Agreement iro Tender of Settlement and Mitigation of Damages

On 26 October 2007, the parties compromised and entered into a Deed of Settlement, which is the basis upon which the applicant has now approached this court for appropriate relief.

Counsel for the applicant indicated that the applicant did not, through these proceedings, seek the eviction of the respondent from the premises but sought merely to give effect to the terms as set out, and agreed, in the Deed of Settlement. All that the applicant was seeking was to be permitted to undertake the renovations which the parties bound themselves to in the aforementioned Deed of Settlement.

In terms of paragraph 2 of the Deed of Settlement, the respondent was required to vacate space occupied by the bookshop, the bridal shop, the electrical shop, and any other office within the same section of the building, in order to accommodate Fidelity Funeral Assurance Company, for the latter to commence renovations.

The respondent also agreed that if by the 31st of October 2007, it had not vacated the space stated, then the Sheriff for Zimbabwe, or his lawful deputy, could evict the respondent from the same. As this was not a court order, I am not persuaded that the eviction could be carried out on the strength of the Deed of Settlement.

A statement in the founding affidavit to the effect that once the Deed of Settlement was filed with the Registrar of this court, it then became a court order did not convince me that it was, in fact, a true statement of the law.

Nevertheless, it goes without saying that the respondent agreed to vacate the said section of the building to make way for renovations. The renovations to this portion of the building have, in fact, been effected.

What is left are renovations to the church.

It is this paragraph, which relates to the church, which the applicant now wishes the respondent to vacate, and afford the applicant the opportunity to renovate.

What I have to determine is whether or not the applicant is required to request that the respondent give it, the applicant, an opportunity to effect renovations, as agreed between the parties, in terms of the Deed of Settlement.

I do not see any lawful reason, on the papers, why the applicant should not be allowed to renovate as agreed to....,.

In the opposing affidavit, the respondent did not question the need to renovate.

I find that all that the applicant is seeking is that the parties comply with the Deed of Settlement, to which the respondent,..., was unable to mount a reasonable defence.

When the parties agreed to the renovations, it was in the contemplation of them both that it was to accommodate the applicant's sister company, not the applicant itself. I find it self-serving, and hypocritical, for the respondent to raise, at this stage, an issue that should have been raised when the compromise was made. It should have, in agreeing to the terms of the Deed of Settlement, insisted that Fidelity Funeral Assurance Company was not a party to the lease agreement, and had, therefore, no right to be referred to in the compromise agreement.

Instead, it agreed to all the conditions requiring it to give space, and vacate certain portions of the building, to allow for renovations, not by the lessor, but by a sister company of the applicant. It cannot, at this late stage, refuse to comply with the Deed of Settlement on the basis of the lack of locus standi of Fidelity Life Assurance to renovate the building.

Given the history of the matter, and the circumstances under which the compromise was reached, I am of the view that the attitude adopted by the respondent is indicative of dishonesty to say the least.

Citation and Joinder re: Legal Status of Litigants, Name Descriptions, Trade Names and the Principle of Legal Persona

At the outset, I sought the views of counsel regarding the identity of the parties before me.

Both assured me that even though the Deed of Settlement was in the name of City Calvary Fellowship Trust, the respondent, whose name was cited on the papers, was one and the same person as the Trust.

Lease Agreements re: Termination, Notice of Termination & the Exceptio Doli Mali iro Lessee Eviction & Incidental Possessors

Paragraph 5 of the Deed of Settlement, which the applicant seeks to have enforced through an order of this court, is framed as follows –

“5. Plaintiff, when making renovations of the church hall, shall provide defendant an office within the partitions.”

Although, in filing the application, the draft sought the eviction of the respondent from the premises, in line with his submissions that all that was sought was that the parties comply with the terms of the Deed of Settlement, counsel for the applicant sought that the draft order be amended to permit the applicant to commence renovations, and that anyone resisting be taken into custody and arrested.

Counsel for the respondent did not oppose the application to amend the draft order.

The amendment was granted by consent.

Cause of Action re: Form, Manner and Nature of Proceedings iro Approach to Application, Motion and Action Proceedings

I must confess that, given the manner in which the application was made, the respondent would have been confused as to the exact nature of the relief being sought by the applicant.

The averments being made, as to the different parties on the plans and the application, were made from the bar, and I was not disposed to discount them as the draft order was changed at the last moment, thus placing the respondent somewhat at a disadvantage.

Disputes of Fact or Conflict of Facts re: Approach, Factual, Non-Factual, Questions of Law and Material Resolutions

In order to oppose the granting of the relief sought, the respondent has raised a number of defences to the same.

The first ground on which the respondent seeks the dismissal of the application is that there are material disputes of fact such that the matter cannot be resolved on the papers.

The material dispute of fact alluded to is whether the notice of 2007 is still valid since the parties entered into negotiations for a new lease.

In his address to me, counsel for the respondent did not touch on the alleged dispute of fact, which was raised, I believe, in answer to the initial claim for eviction.

As the applicant has clearly stated that it is not seeking eviction, I believe this is not an issue I need exercise anymore effort and time on.

Pleadings re: Belated Pleadings, Matters Raised Mero Motu by the Court and the Doctrine of Notice iro Approach

Again, in his oral address, counsel for the respondent submitted that the permit provided that building work connected with the plan had to be implemented on, or before, 11 June 2007, or such later date as may be approved by the local authority on good cause shown.

The applicant was not afforded an opportunity to respond to this aspect as it was not raised in the opposing affidavit.

I will therefore not let it weigh with me in the decision that I make.

Legal Personality re: Group Structures, Related Parties and the Arm's Length Principle

There is an aspect of the case which neither party addressed me on, as relates to the incidence on the scene of Fidelity Life Assurance Limited, as the applicant for the renovations, as opposed to Fidelity Funeral Assurance Limited, which was specifically mentioned in the Deed of Settlement.

It would seem that the parties are not very concerned about the niceties attaching to a holding company and its subsidiaries.

I will not let it weigh with me as neither Fidelity Funeral Assurance Limited, nor Fidelity Life Assurance, is a party before me.

The Deed of Settlement would appear to have been effected for the benefit of one, or both, of them.

Variation of Contracts re: Deed of Settlement, Compromise Agreement iro Tender of Settlement and Mitigation of Damages

In the result, I find that the respondent has not established any basis for this court not to order that the Deed of Settlement be put into effect.

It is, therefore, only just that the applicant be permitted to renovate the church hall as agreed by the parties.

Final Orders re: Judgment in Personam iro Parties Bound by a Court Order

I cannot, however, order the arrest of any party barring the applicant from effecting the renovations.

In the amended order now being sought by the applicant, it is required that any person, or persons, inhibiting the applicant from effecting the renovations as ordered in this matter be arrested.

An arrest for failure to comply with a court order would only ensue after a finding by a court that a party has deliberately failed, or refused, to comply with a court order.

In casu, I have not been asked to find a person in contempt of compliance with a court order served on the person. I am being asked to find that a person may refuse to obey the order, and that, in such a case, anyone behaving in that manner be found in contempt.

Such an order would be in violation of the audi alteram partem rule, that is tantamount to having a party found in contempt of an order of court without being brought to court for an order of contempt.

I am unable to grant an order in those terms.

In the event, however, that the respondent refuses to comply with the order, the applicant would then be at liberty to institute appropriate proceedings to ensure compliance.

Contempt of Court re: Defiance of Court Orders

An order that a party is in contempt also allows such party an opportunity to purge his contempt before he can be incarcerated for contempt.

No notice was given to the parties sought to be found in contempt, that such an order would be sought against them in the event that they disobeyed the court order.

C.J.MILLER in his book Contempt of Court..., states as follows regarding notice –

“In all cases, it must be shown that the person against whom it is sought to apply the sanction of the law of contempt had sufficient notice of the terms of the judgment, or order, which it is alleged he has disobeyed. The ways in which this requirement of notice may be satisfied are set out in RSC Ord.45. r7.

The general rule is that personal service of a copy of the judgment, or order, is required. In the case of a judgment, or order, against a corporate body, enforcement will be possible against an individual director, only if he has been personally served.”

The same point was made by ARLIDGE and EADY in their book The Law of Contempt..., wherein they state –

“It is clear that because of the special nature of the court's jurisdiction, where there is prescribed any procedural step antecedent to the exercise of that jurisdiction, every such rule should be scrupulously observed, and strict compliance insisted upon. This is because the court's powers to punish for civil contempt are quasi-criminal in nature. Where committal is sought, although the court has the power to dispense with service of the notice of motion, personal service will, generally, be insisted on unless there is clear evidence of evasion. It has even been held that the attendance of the alleged contemnor at the hearing does not, per se, waive the need for service. It is also necessary to establish service of the order which is alleged to have been disobeyed by leaving a copy with the person to be served. The importance of personal service, where committal is sought, is to enable the alleged contemnor to know what conduct would amount to a breach, and what would not; and before committal, such notice is required to be proved beyond a reasonable doubt..”

Although the Rules being referred to above are the Rules of Court pertaining in English courts, it goes without saying that our own Rules are not very different when it comes to orders for contempt of court.

In terms of Order 9 Rule 39(1), process in relation to a claim affecting the liberty of a person shall be served by delivery of a copy thereof to that person personally. This requirement, that personal service be effected upon a person whose liberty is in issue, has been recognised by our courts, per GILLESPIE J in Scheelite King Mining Co. (Pvt) Ltd v Mahachi 1998 (1) ZLR 173.

Before a person can be held in contempt, it is necessary to establish that not only was the order not complied with, but that non-compliance was wilful on the part of the person being complained against.

Variation of Contracts re: Deed of Settlement, Compromise Agreement iro Tender of Settlement and Mitigation of Damages

I will, therefore, issue an order in the following terms –

IT IS HEREBY ORDERED THAT:

1. The applicant be and is hereby permitted to effect renovations to the church hall in terms of the Deed of Settlement entered into by the parties on 25 October 2007.

2. In compliance with paragraph 5 of the Deed of Settlement, the applicant is to provide the respondent with an office.

3. The respondent is ordered to pay the costs of this application.

GOWORA J: On 31 August 2006 the applicant herein concluded a lease agreement with an entity known as Calvary Family Fellowship Trust in respect of certain immovable property commonly known as Guild Hall Uniprops, Harare. The applicant is the registered owner of the building. The agreement was to commence on 1 September 2006 and terminate on 31 August 2007. Some time in 2007 prior to the expiry of the lease, the applicant gave notice to the City Calvary Fellowship Trust of its intention to carry out renovations on the building in order that it, applicant, would occupy the premises after their renovation. It seems common cause that the building is somewhat dilapidated and in need of renovations. The lessee did not vacate in terms of the notice resulting in the applicant instituting proceedings under Case No H.C. 4945/07 for its eviction. On 26 October 2007 the parties compromised and entered into a Deed of Settlement which is the basis upon which the applicant has now approached this court for appropriate relief. 

            At the outset I sought the views of counsel regarding the identity of the parties before me. Both assured me that even though the deed of settlement was in the name of City Calvary Fellowship Trust the respondent whose name was cited on the papers was one and the same person as the trust. Thereafter Mr Nkomo, on behalf of the applicant indicated that the applicant did not, through these proceedings, seek the eviction of the respondent from the premises but sought merely to give effect to the terms as set out and agreed in the deed of settlement. All that the applicant was seeking was to be permitted to undertake the renovations which the parties bound themselves to in the aforementioned deed of settlement.

Paragraph 5 of the Deed of Settlement which the applicant seeks to have enforced through an order of this court is framed as follows:

 

  1. Plaintiff when making renovations of the church hall shall provide defendant an office within the partitions.

 

 Although in filing the application the draft sought the eviction of the respondent from the premises in line with his submission that all that was sought was that the parties comply with the terms of the deed, Mr Nkomo sought that the draft order be amended to permit the applicant to commence renovations and that anyone resisting be taken into custody and arrested. Mr Diza did not oppose the application to amend the draft order and the amendment was granted by consent.

            As regards the merits of the application, it is obvious that when the settlement was negotiated and agreed to by the parties, it was in the contemplation of the parties, whatever their appellation, that there was need for the building to be renovated. Although inelegantly worded the theme running through the deed is that of the parties accommodating each other to achieve this goal. It is with this understanding and intention of the parties gleaned from the deed that I now approach this dispute in order to achieve a resolution of the same.

            In terms of para 2 of the deed of settlement the respondent was required to vacate space occupied by the bookshop, the bridal shop, the electrical shop and any other office within the same section of the building in order to accommodate Fidelity Funeral Assurance Company, for the latter to commence renovations. The respondent also agreed that if by 31st October 2007 it had not vacated the space stated then the Sheriff for Zimbabwe or his lawful deputy could evict the respondent from the same. As this was not a court order I am not convinced that the eviction could be carried out on the strength of the deed of settlement. A statement in the founding affidavit to the effect that once the deed of settlement was filed with the registrar of this court, it then became a court did not convince me that it was in fact a true statement of the law. Nevertheless, it goes without saying that the respondent agreed to vacate the said section of the building to make way for renovations. The renovations to this portion of the building have in fact been effected. What is left are renovations to the church. It is the paragraph which relates to the church which the applicant now wishes the respondent to vacate and afford the applicant the opportunity to renovate.

            In order to oppose the granting of the relief sought the respondent has raised a number of defences to the same. The first ground on which it seeks the dismissal of the application is that there are material disputes of fact, such that the matter cannot be resolved on the papers. The material disputes of fact alluded to is whether the notice of 2007 is still valid since the parties entered into negotiations for a new lease. In his address to me Mr Diza did not touch on the alleged dispute of fact which was raised I believe in answer to the initial claim for eviction. As the applicant has clearly stated that it is not seeking eviction, I believe that this is not an issue I need exercise any more effort and time on.

            The deed of settlement required that the parties enter into a new and separate lease agreement, but it is not clear which part of the premises the lease was supposed to cover. The applicant in an effort to place the background to the application before the court has gone to some length to explain why the lease agreement has not been executed. The respondent has in turn gone to equally lengthy explanations as to why there is no lease agreement concluded. This however is not the issue before me. What I have to determine is whether or not the applicant is required to request that the respondent give it, the applicant, an opportunity to effect renovations as agreed between the parties in terms of the deed of settlement. I do not see any lawful reason on the papers why the applicant should not be allowed to renovate as agreed to.

            In submissions to the court the respondent contended that the applicant is not the entity that filed the plans for permission to renovate. Indeed the plans submitted bear the name of Fidelity Life Assurance. The date of the approval by the local authority is 11 June 2007. From the date quoted on the permit, it is clear that the deed of settlement was entered into after the parties had agreed on the need for the renovations as the approval had been given. It is also clear on the deed of settlement that the party effecting the renovations was not Zimre, but a subsidiary, Fidelity Life Assurance. It is also common cause that the respondent, did, in terms of para 2 of the deed vacate the space stated therein in order to permit renovations to the same, which renovations, according to the agreement, were being effected by Fidelity Assurance Company. In the opposing affidavit the respondent did not question the need to renovate. I must confess that given the manner in which the application was made, the respondent would have been confused as to the exact nature of the relief being sought by the applicant. The averments being made as to the different parties on the plans and the application were made from the bar, and I was not disposed to discount them as the draft order was changed at the last moment thus placing the respondent somewhat at a disadvantage. However, I find that all that the applicant is seeking is that the parties comply with the deed of settlement, to which the respondent, even in the oral address was unable to mount a reasonable defence. When the parties agreed to the renovations, it was in the contemplation of them both that it was to accommodate the applicant's sister company, not the applicant itself. I find it self serving and hypocritical for the respondent to raise at this stage an issue that should have been raised when the compromise was made. It should have in agreeing to the terms of the deed insisted that Fidelity Funeral Assurance Company was not a party to the lease agreement and had therefore no right to be referred to in the compromise agreement. Instead it agreed to all conditions requiring it to give space and vacate certain portions of the building to allow for renovations, not by the lessor but by a sister company of the applicant. It cannot at this late stage refuse to comply with the deed on the basis of the lack of locus standi of Fidelity Life Assurance to renovate the building. Given the history of the matter and the circumstances under which the compromise was reached I am of the view that the attitude adopted by the respondent is indicative of dishonesty to say the least.

            Again in his oral address Mr Diza submitted that the permit provided that building work connected with the plan had to be implemented on or before 11 June 2009 or such later date as may be approved by the local authority on good cause shown. The applicant was not afforded an opportunity to respond to this aspect as it was not raised in the opposing affidavit. I will therefore not let it weigh with me in the decision that I make.

            There is an aspect of the case which neither party addressed me on as elates to the incidence on the scene of Fidelity Life Assurance Limited as the applicant for the renovations as opposed to Fidelity Funeral Assurance Limited which was specifically mentioned in the deed of settlement. It would seem that the parties are not very concerned about the niceties of attaching to a holding company and its subsidiaries. I will not let it weigh with me as neither Fidelity Funeral Assurance nor Fidelity Life Assurance is a party before me. The deed of settlement would appear to have been effected for the benefit of one or both of them.

            In the result I find that the respondent has not established any basis for this court not to order that the deed of settlement be put into effect. It is therefore only just that the applicant be permitted to renovate the church hall as agreed by the parties. I cannot however order the arrest of any party barring the applicant from effecting the renovations. In the amended order now being sought by the applicant it is required that any persons or persons inhibiting the applicant from effecting the renovations as ordered in this matter be arrested.  An arrest for failure to comply with a court would only ensue after a finding by a court that a party has deliberately failed or refused to comply with a court order. An order that a party is in contempt also allows such part an opportunity to purge his contempt before he can be incarcerated for contempt. No notice was given to the parties sought to be found in contempt that such an order would be sought against them in the event that they disobeyed the court order.

C.J. MILLER in his book Contempt of Court states as follows regarding notice:[1]

“In all cases it must be shown that the person against whom it is sought to apply the sanction of the law of contempt had sufficient notice of the terms of the judgment or order which it is alleged he has disobeyed. The ways in which this requirement of notice may be satisfied are set out in RSC Ord. 45, r 7.

The general rule is that personal service of a copy of the judgment or order is required. In the case of a judgment or order against a corporate body enforcement will be possible against an individual director only if he has been personally served.”

 

The same point was made by Arlidge and Eady in their book The Law of Contempt[2] wherein they state:

“It is clear that because of the special nature of the court's jurisdiction, where there is prescribed any procedural step antecedent to the exercise of that jurisdiction, every such rule should be scrupulously observed and strict compliance insisted upon. This is so because the court's powers to punish for civil contempt are quasi-criminal in nature. Where committal is sought, although the court has the power to dispense with service of the notice of motion, personal service will generally be insisted on unless there is clear evidence of evasion. It has even been held that the attendance of the alleged contemnor at the hearing does not per se waive the need for service. It is also necessary to establish service of the order which is alleged to have been disobeyed by leaving a copy with the person to be served. The importance of personal service, where committal is sought, is to enable the alleged contemnor to know what conduct would amount to a breach, and what would not; and before committal such notice is required to be proved beyond a reasonable doubt”.  

 

Although the rules being referred to above are the rules of court pertaining in the English courts, it goes without saying that our own rules are not very different when it comes to orders for contempt of court. In terms of Order 9 r 39 (1) process in relation to a claim affecting the liberty of a person shall be served by delivery of a copy thereof to that person personally. This requirement that personal service be effected upon a person whose personal liberty is in issue has been recognized by our courts, per GILLESPIE J in Scheelite King Mining Co (Pvt) Ltd v Mahachi[3]. Before a person can be held in contempt it is necessary to establish that not only was the order not complied with but that the non compliance was willful on the party of the person being complained against.     

In casu I have not been asked to find a person in contempt of compliance with a court order served on the person. I am being asked to find that a person may refuse to obey the order and that in such a case anyone behaving in that manner be found in contempt. Such an order would be in violation of the audi alteram partem rule, that is tantamount to having a party found in contempt of an order of court without being brought to court for an order of contempt. I am unable to grant an order in those terms. In the event however, that the respondent refuses to comply with the order the applicant would then be at liberty to institute appropriate proceedings to ensure compliance. I will therefore issue an order in the following terms:

IT IS HEREBY ORDERED THAT:

 

  1. The applicant be and is hereby permitted to effect renovations to the church hall in terms of the deed of settlement entered into by the parties on 25 October 2007.

 

  1. In compliance with para 5 of the deed of settlement the applicant is to provide the respondent with an office.

 

  1. The respondent is ordered to pay the costs of this application.

 

 

 

 

 

Mtetwa & Nyambirai, legal practitioners for the applicant

Musunga & Associates, legal practitioners for the respondent.


[1] P 422

[2] para 5-06 p 265

[3] 1998 (1) ZLR 173.

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