On
21 December 1999 at the 12km peg along the Rusape to Nyanga road a
horrific collision involving the respondent and an employee of the
appellant occurred. The former sustained frightful injuries. Sadly,
the appellant's employee succumbed to injuries occasioned from the
collision.
The
following facts are common cause.
The
respondent sued for and was awarded damages by the ...
On
21 December 1999 at the 12km peg along the Rusape to Nyanga road a
horrific collision involving the respondent and an employee of the
appellant occurred. The former sustained frightful injuries. Sadly,
the appellant's employee succumbed to injuries occasioned from the
collision.
The
following facts are common cause.
The
respondent sued for and was awarded damages by the High Court on 23
January 2008. The damages so awarded were the following:
(i)
BP (Botswana Pula) 63,750 for the cost of replacement of a vehicle;
(ii)
BP83,717=90 in respect of medical expenses.
(iii)
BP1,800,000 for loss of income.
(iv)
Z$3,500 towing charges.
(v)
BP12,000,000 car hire charges.
(vi)
Z$2,000,000 shock, pain and suffering.
(vii)
Z$850,000 disability damages.
(viii)
Z$1,000,000 future medical expenses.
The
appellant was dissatisfied with the judgment and appealed to this
Court against the finding of vicarious liability as well as the
amounts awarded in Botswana Pula (BP). There was no appeal against
the amounts denominated in the Zimbabwe dollar. On 28 February 2012
this Court, in the case of The Cold Chain (Pvt) Ltd v Robson Makoni
SC09-12, issued an order in the following terms:
“IT
IS ORDERED THAT:
1.
The application to adduce further evidence is dismissed with costs.
2.
The appeal against the finding of vicarious liability is dismissed.
3.
The appeals in respect of the value of the replacement motor vehicle,
vehicle hire charges, and lost income are allowed and the order of
the court a quo is altered in the following respects:
(i)
In paragraph (a), Botswana Pula 40,000 is substituted for BP63,000;
(ii)
In paragraph (c), Botswana Pula 616,200 is substituted for
BP1,800,000;
(iii)
In paragraph (e), Botswana Pula 6,000 is substituted for
BP12,000,000.
4.
There will be no order as to costs of appeal.
It
is common cause that the appellant paid the amounts denominated in
Botswana Pula. In respect of the other sums it tendered payment in
Zimbabwe dollar. The respondent rejected the tender. He contended
that due to the erosion of the currency it had become moribund due to
disuse, and, as such, he had no use for it. He could not tender the
same for payment to anyone.
An
impasse ensued which resulted in the respondent filing an application
with the High Court for the conversion to United States Dollars of
the sums awarded to him in the local currency.
The
High Court found that it had no jurisdiction to convert the amounts
thus awarded to United States dollars. It said:
“In
conclusion, this Court's opinion on the issue of currency
nominalism, in the circumstances of this case, is that, while on the
whole this Court has inherent jurisdiction to ensure that the process
of execution is neither abused nor unfair, it does not have
jurisdiction to rewrite an order in the manner sought by the
applicant. I hold the considered view that this Court cannot revalue
an order for purpose of execution.”
In
short, it declined jurisdiction.
The
respondent was aggrieved and appealed to this Court and was
successful. In Robson Makoni v The Cold Chain t/a Sea Harvest
SC55-16, this Court said the following:
“The
principles enunciated in the case of Dube (supra) demonstrate that
the once and for all rule is not applicable to the facts of this case
because the applicant is not seeking further damages for the injuries
he sustained in the accident. He is seeking the conversion of the
damages he was awarded by the High Court in 2008 in Zimbabwean
dollars to United States dollars. The appellant's application is
intended to facilitate the enforcement of the order of damages in
Zimbabwean dollars. The once and for all rule prevents a plaintiff
from seeking further damages from a cause of action previously sued
on. It does not prevent him from seeking the currency adjustment of
an order already granted by the court.
Courts
have authority to adjust their orders but under prescribed
circumstances. Those circumstances depend mainly on whether or not
the court will be functus officio.
The
court a quo erred by relying on the once and for all rule to hold
that it had no jurisdiction to hear the appellant's application.
The application was for the conversion of already granted Zimbabwean
dollar awards to United States dollars, which both parties agree have
not yet been paid as there is a dispute as to how payment should be
made. It was thus premised on a subsequent dispute over how damages
awarded by the High Court in 2008 should be enforced.
The
court's awards had been made uncertain by the dollarization of the
Zimbabwean economy.
The
appellant could not have reasonably foreseen that the Zimbabwe
currency was going to be rendered moribund by the introduction of the
United States dollar as usable currency in Zimbabwe.”
The
court therefore allowed the appeal and issued an order in the
following terms:
“Accordingly,
it is ordered as follows;
1.
The appeal is allowed with costs.
2.
The decision of the court a quo is set aside.
3.
The matter is remitted back to the court a quo for a hearing and
determination on the merits.”
There
were three issues for determination before the court a quo. These
were the following:
(i)
The amount in local currency to be converted into foreign currency;
(ii)
The date of the prevailing rate of exchange to be applied for
purposes of conversion.
(iii)
The rate of exchange applicable for such conversion.
On
the first issue, the court a quo found that the total amount to be
converted into United States dollars was ZW$3,937,217=09. The learned
judge concluded, on the second issue, that the date of rate of
exchange to be applied was that rate which was prevailing on the date
of judgment, being 23 January 2008.
It
is this conclusion that the appellant disputes.
The
appellant was aggrieved by that decision and noted this present
appeal. The appellant moved an amendment to its grounds of appeal.
The respondent did not object and the amendment was allowed by
consent. The grounds of appeal, as amended, are framed as follows:
1.
The court a quo erred at law in not finding that the ZW$ award made
in favour of the respondent had, by operation of law, completely been
decimated, and that, consequently, there was no ZW$ to convert to US
dollars.
2.
The court a quo erred in using the 23rd
of
January
2008 as the date of payment, and, therefore, the conversion date
instead of using 24 October 2012 as the conversion date, it being the
date on which the respondent demanded payment.
3.
In any event, the court a quo erred in finding, as common cause, that
the rate of conversion from Zimbabwean dollars to United States
dollars, as at 23rd
January 2008, was USD$1: ZWD$30 contrary to the conversion rate of
USD$1: ZWD$30,000= pleaded by the respondent and accepted by the
appellant.
4.
The court a quo erred in finding that, on the facts pleaded, the
appellant was liable to the respondent in the amount of
USD$131,240=56....,.
The
first two grounds are being raised for the first time in this appeal.
Counsel
for the appellant submitted that the issues being raised in those
grounds were not before the court a quo. Critically, therefore, in
its amended notice of appeal, the appellant seeks to introduce an
issue that the court a quo erred in failing to note that the award
made in favour of the respondent in 2008 was completely decimated and
therefore there was nothing to convert.
The
appellant argues that the amount awarded as damages had been ravaged
by inflation, and, as a consequence, there was nothing to convert
into foreign currency. In addition, it was contended that the
currency was devalued in terms of S.I.109 of 2008, the effect of
which was to render the local currency moribund.
It
is common cause that the award of damages was appealed to this Court
immediately after the judgment was rendered. The appeal itself was
heard on 5 October 2010 and there is no indication that during the
hearing the appellant made any effort to suggest that the amount
being appealed was no longer capable of being paid and that the
judgment could not in fact be given effect to. In addition to the
above, the appellant did not, at any stage, attempt to have the order
rectified following the promulgation of S.I.109/08. The appellant did
not, in this Court, provide any authority that would support its
contention that an order of court can be altered merely by the
promulgation of a legal instrument without a formal request to a
court for such alteration. In the premises, it is my view that the
amount awarded as damages in local currency was what should have been
used as a basis for the calculation of the foreign currency
equivalent.
The
further contention made on behalf of the appellant is that there was
no jurisdictional basis for the court to exercise its original
jurisdiction to convert the award to foreign currency on the basis
that there was nothing to convert.
In
Robson Makoni v The Cold Chain t/a Sea Harvest SC55-16 which was an
appeal against a decision of the High Court in which that court had
declined jurisdiction to grant an application for the conversion of
the original award into foreign currency, this Court said:
“I
am aware that the correction of judgments in terms of the court's
jurisdiction to protect and regulate its processes in the interest of
justice must be done within a reasonable time after the delivery of
the judgment to be corrected. In this case, the judgment to be
'corrected' was taken on appeal. It thus had to await the
decision of the Supreme Court after which the appellant sought
payment. When the respondent refused to pay the appellant made the
application which is the subject of this appeal. I am therefore
satisfied that the appellant applied for conversion within a
reasonable time. He, in other words, was not a sluggard.
Accordingly,
this case should not be seen as opening the gates to all cases where
judgments were denominated in Zimbabwean dollars and the affected
parties failed or neglected to timeously do what the appellant in
this case did, namely, seek the court's assistance to convert the
awards to usable currency. A court order which is clear and
enforceable at the time of delivery cannot be rendered nugatory and
unenforceable by unforeseeable subsequent events which affect its
clarity and render it unenforceable in its present form. The court a
quo is entitled to protect and regulate its orders so that they
remain enforceable.
I
therefore hold that in terms of section 176 of the constitution, the
court a quo has jurisdiction to hear and determine the appellant's
application.”
What
is evident in that passage is the absence of any suggestion from the
appellant that the amount awarded as damages could not be converted
by reason of the application to the award of the provisions of
S.I.109 of 2008.
Had
the court been addressed on this critical issue it would have made a
determination as to whether, in addition to the question of
jurisdiction relating to the conversion, the High Court enjoyed a
jurisdictional base related to the existence or otherwise of an
amount capable of conversion. The contention by the appellant that
there was nothing for it to convert to foreign currency therefore
raises two critical issues for determination.
(a)
The first is that the court a quo is being criticised for failing to
determine an issue that was never placed before it for adjudication.
It
is evident that the appellant chose to have the matter decided
without alerting the court of its views on the provisions of the
statutory instrument in question. After counsel for the appellant's
admission that this was an issue being placed before the court for
the first time, it stands to reason that for that reason the ground
cannot succeed.
In
addition to the above, it was contended that notwithstanding that
this issue was not before the court a quo this Court could make a
determination on the same. We were not invited to remit the matter
for the determination on this issue.
It
is trite that a point of law may be raised for the first time on
appeal. The question is, is this a point of law strictu sensu?
In
my view, whether or not S.I.109/2008 should be applied to the amount
to be converted constitutes not merely a question of law, it also
involves factual issues. The exercise in its application to the
dispute would, of necessity, require the leading of evidence from
both parties as to how the statutory instrument should be
implemented, the amount to be converted and the sum available, if
any. This, in my view, would have been an exercise properly
undertaken before the court a quo. It was not and it does not fall
for this Court to undertake this exercise for the simple reason that
this Court is not a court of first instance.
In
my view, the two grounds on which this premise is taken therefore
lack merit and ought to be dismissed.
In
addition to the above, a decision of the Supreme Court on a factual
issue is final.
In
Robson Makoni v The Cold Chain t/a Sea Harvest SC55-16, this Court
confirmed that the amount of damages awarded in the local currency be
converted to foreign currency. I am fortified in this view by the
remarks of MALABA CJ, in the case of Lytton Investments (Pvt) Ltd v
Standard Chartered Ltd & Anor CC11-18, to the following effect:
“What
is clear is that the purpose of the principle of finality of
decisions of the Supreme Court on all non-constitutional matters is
to bring to an end the litigation on the non constitutional matters.
A decision of the Supreme Court, on a non-constitutional matter, is
part of the litigation process. The decision is therefore correct
because it is final. It is not final because it is correct….,.
The
law of finality of decisions of the Supreme Court on
non-constitutional matters applies to all litigants equally, whether
they become winners or losers in the litigation process. The
declaration of finality of a decision of the Supreme Court, on a
non-constitutional matter, is itself a protection of the law. Once a
decision is as a matter of fact a decision of the Supreme Court on a
non-constitutional matter, no inquiry into its legal effect can
arise.”