Chidzero and Another V Bayslip Investments (Private) Limited and Another (289 of 2024) 2024 ZWHHC 289 (10 July 2024)
Chidzero and Another V Bayslip Investments (Private) Limited and Another (289 of 2024) 2024 ZWHHC 289 (10 July 2024)
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d) payment of the sum of US$43 620 due to the third plaintiff in respect of the farming
operations conducted between 2017 and 2022.
e) payment of the sum of US$33 790 being damages of reasonable compensation of the
plaintiffs’ barns, electric fence, powerlines and drip irrigation destroyed by the defendant.
f) payment of US$20 160 being damages suffered by the plaintiff for loss of income caused
by the defendant’s refusal to give vacant possession of the farms upon the expiry of the
joint venture agreement.
g) payment of the sum of US$6 650 of the unpaid tobacco incentives due to the defendant.
h) payment of US$4 450 being the tobacco regrowth fine imposed on the first plaintiff
pursuant to the defendant’s failure and or refusal to destroy plaint regrowth as required by
the law.
i) payment of US$3 900 being reasonable costs of land rehabilitation for land that was left
unrehabilitated by the defendant at the time that it vacated the farms.
j) payment of US$184 800 due to the third plaintiff under the joint venture agreements.
k) payment of US$120 960 due to the plaintiffs by the defendant for timber harvested by the
defendant during land clearance at the two farms.
l) costs of suit.
The brief factual background to the claims is as follows. The first plaintiff is the holder of
an offer letter over a farm known as the Remaining Extent of Wychwood situated in the district
of Goromonzi measuring 348,54 hectares. The second plaintiff is also the holder of a valid offer
letter in respect of a farm known as Thursfield situated in the district of Goromonzi measuring
41,13 hectares. The first and second plaintiffs operated the two farms through the third plaintiff.
The plaintiffs concluded joint venture agreements with the defendant in 2015. The plaintiffs
claim that the agreements expired in 2020.
After taking over the day-to-day farming operations, the defendant had a duty to
undertake farming activities, and was expected to account for the said operations and output at
the farms from the time of occupation to the date of termination of the agreement or vacation,
whichever occurred first. The plaintiffs allege that the defendant failed, neglected or refused to
render an account to the plaintiffs despite several demands to do so from the inception of the
joint venture agreements to the date of vacation in 2022.
The account the plaintiffs wanted rendered included receipts in possession of the
defendant in support of the statement of income and expenditure. The accounts also included all
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sources of income of the joint venture operations, the sale prices of farm produce, livestock,
capital expenditure, proof of funding or loans and repayments made.
In its plea, the defendant denied that the joint venture agreements expired in 2020 as
alleged by the plaintiffs insisting that they were extended to 2025. The defendant was solely
responsible for the day-to-day farming activities in terms of the joint venture agreements. Its
duty to account to the plaintiffs was to the extent set out in the joint venture agreements. Such
duty to account did not extend to the period after its vacation of the farms. The necessary
accounts were rendered in terms of the joint venture agreements. The defendant denied owing
the plaintiffs any fiduciary duty.
The defendant averred that some of the plaintiffs’ claims had long prescribed in terms of
the Prescription Act1. It denied owing the sum of US$43 620 for the period 2017 to 31 October
2020, partly because the claims had prescribed and partly because such amount was not due to
the plaintiffs anyway.
The defendant also denied vandalizing the plaintiffs’ barns, electric fence, powerlines and
the drip irrigation system. The claim for US$33 790 for the damaged equipment was therefore
denied. The claim for US$20 160 based on the defendant’s alleged refusal to vacate the farm was
contested on the basis that the plaintiffs permitted it to continue in occupation after June 2020. It
was further argued that the plaintiffs had claimed a share of the farming operations for the period
after June 2020 and were therefore not entitled to damages arising out of the defendant’s
occupation of the farms after June 2020.
The defendant also denied that the plaintiffs were entitled to any tobacco incentives in
terms of the joint venture agreements. The claim for damages arising out of the failure to destroy
the tobacco residue was also dismissed on the basis that the plaintiffs forced the defendant to
relinquish the farm. The defendant had also been warned not to undertake any farming activities.
The claim for US$184 800 was also dismissed on the basis that it was not specific to the
period it related. To the extent that it covered the period before 31 October 2020, the claim was
dismissed based on prescription. At any rate, the plaintiffs were allegedly paid all their
entitlements in full.
1
[Chapter 8:11]
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The claim for timber allegedly harvested by the defendant was equally dismissed on the
basis that the harvest was done in terms of the parties’ agreements.
The matter was referred to trial on the following agreed issues:
whether the plaintiffs’ claims in respect of the period prior to 31 October 2020
have prescribed.
whether the defendant’s occupation of the two farms after 30 May 2020 was
lawful.
whether the defendant is indebted to and liable to pay the plaintiffs the sums
claimed in the summons or any other amount.
whether the defendant has an obligation to and should render an account to the
plaintiffs for farm operations from 2015 to the date of rendering of vacant
possession.
who is liable to pay the costs of suit and at what scale?
The plaintiffs’ case was premised on the evidence of two witnesses, being the first
plaintiff herein and Dick Mupambireyi, an expert witness. I shall proceed to summarize the
witness evidence relative to the claims hereunder.
The nature of the information that the defendant was required to provide to the plaintiffs
was regulated by clause 10 of the agreements. That information included records of sales of
tobacco and maize, seasonal cropping and livestock plans and planned hectares or livestock
units, projected yields and sales to be compared with actual sales. According to the witness,
problems started with the 2017 and 2018 maize crop after the defendant failed to discharge its
financial obligations following sales. The defendant refused to pay for the maize crop on the
basis that it was recouping for its capital improvements such as fencing, water troughs for cattle
and construction of tobacco barns.
Concerning the first claim, the witness stated that there was a partial disclosure of
tobacco sales sheets up to the year 2021. The contracted maize sales were disclosed, but the 8%
of the gross sale proceeds was not paid. For horticulture produce there was disclosure until
around 2017. There was no information on the sale and revenue received on the sale of
geraniums. Information on cabbages and onions was last provided in 2017. As regards chia
seeds, the witness claimed that he saw the crop on the ground, but no information was provided
concerning that product. The information that was not disclosed was for tobacco production and
sales for the 2022 selling season. Initially tobacco sales sheets were sent directly to the plaintiffs
by Mashonaland Tobacco, but this was stopped in 2021. The sales sheets were only availed on
24 December 2021 long after the sales were completed.
As regards the monetary claims, the witness stated that the figures were arrived at from
sales information received for the 2017 and 2018 farming seasons.
Under cross examination, the witness conceded that although the information for 2015
was disclosed, he had made a claim for it on the advice of his legal practitioner. The information
for the years 2017-2019 was requested verbally but was never supplied. His explanation for not
approaching the courts timeously was that courts were too expensive, and he did not have funds
as he relied on the stipend he received from the defendant.
The witness stated under cross examination that the claim for income on tobacco was not
based on estimates as reflected in the report prepared by an expert. The figures were based on
actual sales sheets. He deferred any comments on the report to the expert witness.
The second witness was Dick Mupambireyi, a member of the Real Estate Institute of
Zimbabwe with 23 years of post-qualification experience. He was engaged by the plaintiffs to
analyse the joint venture agreement between the parties to assess possible losses, as well as
quantify the value of improvements which were the subject of compensation. He was also
required to assess the income to be earned by the plaintiffs, being the 8% of the gross sale
proceeds on all crops and livestock sales or disposals annually. He generated a valuation report
that was complemented by another bundle of supporting documents.
The witness’ evidence was not materially different from that of the first witness, save in
those instances where he explained the basis of his computations that yielded the figures for the
individual claims.
Further down in the same judgment, the learned judge went further to state as follows:
“In the case of Lourenco v Raja Dry Cleaners & Steam Laundry Private Limited 4, the Supreme
Court had occasion to discuss the various cases which ought to be relied on in determining an
application for absolution from the instance. The first case to be referred to be that of Mazibuko v
Santam Insurance Co Ltd and Anor 1982 (3) SA 125 (AD) at 133, where the court said, at 132H:
“In an application for absolution made by the defendant at the close of the plaintiff's case
the question to which the Court must address itself is whether the plaintiff has adduced
evidence upon which a court, applying its mind reasonably, could or might find for the
plaintiff; in other words whether plaintiff has made out a prima facie case”.
2
HH 88/15
3
At pages 6-7 of the judgment
4
1984 (2) ZLR 151 (S) @ pp156-158
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The next case referred to by the Supreme Court is that of Gascoyne v Paul and Hunter
1917 TPD 170 where the court said, at 173:
“The question therefore is, at the close of the case . . . was there a prima facie case
against the defendant Hunter; in other words, was there such evidence before the Court
upon which a reasonable man might, not should, give judgment against Hunter?”. (my
underlining for emphasis).
It must be recalled that at this stage, the court is being asked to effectively close the door
on the plaintiff’s case without the benefit of the other side of the story. The issue is whether
sufficient evidence has been placed before the court to persuade the court to hear the defendant’s
case. There is no reason why the court should embark on a wild goose chase when the plaintiff,
by placing an ill-judged account of events has effectively sealed his own fate.
The plaintiffs’ overall claim is founded on diverse causes of action which must be
considered independent of each other. I now turn to consider these individually.
In response, the plaintiffs averred that the plea of prescription was ill conceived. Firstly,
it was argued that it was not properly before the court. Rule 42(8) of the High Court Rules, 2021
was not followed. It was further averred that the plea of prescription ought to have been filed and
set down in terms of the rules with heads of argument being submitted. Secondly, it was argued
that the plea of prescription was not substantiated. The plaintiffs’ claim was that the parties
agreed that the amounts demanded would go towards capital improvement compensation. The
defendant’s position therefore needed to be known. Thirdly, it was argued that the account was a
running one to which payments interrupted prescription. There was no evidence of when
prescription began to run. The defendant was allegedly not disclosing information and the
plaintiffs were unaware of the full facts required for purposes of ascertaining their cause of
action.
The question of prescription is central to the resolution of the parties dispute herein and
that can only be the reason why it was one of the agreed issues for trial. The issue is therefore
properly before the court, and it was properly pleaded. Rule 42 (8) (9) of the High Court rules,
2021 sets out the procedure for raising special pleas among other things. The procedure for the
setting down of the special plea is similar to that of opposed applications. Heads of argument
must be filed before the hearing of the matter. The procedure advocated for by the plaintiffs is
appropriate where there are no factual disputes, and the question of prescription is resolvable on
the papers. However, where factual disputes arise concerning the time when the cause of action
arose, then viva voce evidence would be required to resolve disputes of fact. See Brooker v
Mudhanda & Ors5. In the present matter, viva voce evidence was required to resolve the question
of the time when the cause of action arose.
The plaintiffs’ summons was issued on 27 October 2023 and served on 3 November
2023. I agree with the defendant’s submission that the claim for the rendering of an account and
debatement for the period up to 3 November 2020 is prescribed. Summons was served after the
three-year prescription period. The plaintiffs were aware prior to the issuing and service of
summons of which information remained outstanding from the defendant. The first plaintiff all
but conceded that the major constraint to the institution of proceedings timeously was the
5
SC 5/18 at page 17 of the judgment
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unavailability of financial resources to engage counsel to start the process. The plea of
prescription must therefore be upheld in respect of claims up to 3 November 2020.
The second leg of the defendant’s argument relates to claims for the period after 3
November 2020. In his evidence, the first plaintiff confirmed that there was a partial disclosure
of tobacco sales sheets up to the year 2021. The information on tobacco sales was thus availed
and it ought not to have been part of the plaintiffs’ claims. Absolution must be granted in respect
of the claim for the disclosure of tobacco sales for the period up to the year 2021.
The final leg of the defendant’s submission pertains to the plaintiffs’ admission that the
liability for disclosure of information arose ex contractu. The plaintiffs’ claims were allegedly
tied to the joint venture agreements which expired on 31 May 2020. The defendant argued that
for that reason the plaintiffs could not claim disclosure of information based on expired
contracts. In response, the plaintiffs argued that the defendant was estopped from seeking refuge
from agreements that it argued never lapsed but were extended to 2025. On that score, the
plaintiffs further argued that the defendant could not be allowed to approbate and reprobate.
There is merit in the plaintiffs’ submission. It is not in dispute that the defendant
remained in occupation of the farms beyond 31 May 2020, the date when the agreements are
alleged to have expired. In paragraphs 11.1 and 11.2 of its plea, the defendant states:
“11.1 It is denied that the joint venture agreements expired in June 2020. The defendant pleads
that having allowed it to continue in occupation after June 2020, Plaintiffs are not entitled
to damages in the sum of US$20,160.00 for alleged refusal to vacate the farms.
11.2 Having claimed a share of the farming operations for the period after June 2020, Plaintiffs
are not entitled to any damages arising out of Defendants occupation of the farms after
June 2020”.
The question of when exactly the joint venture agreements were terminated must be
critically examined in the face of the conflicting positions taken by the parties. The defendant
contends that the agreements were never terminated in June 2020. It is on that basis that it denies
liability for damages arising from the alleged unlawful occupation beyond June 2020. Surely, the
defendant cannot in the same breath argue that the plaintiffs must not rely on the same
agreements it claims were extended beyond June 2020. For that reason, the court determines that
the plaintiffs have made a case to compel disclosure for the period after 3 November 2020 for
other information other than information on tobacco sales.
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Claim for US$ 43, 620.00 in respect of farming operations conducted from 2017 to 2022
In terms of the plaintiffs’ own claim, the crop produce covered tobacco, maize, silage,
chia and sweet potatoes. The defendant contends that part of the claim covered the period after
June 2020, a period after the expiry of the contract. The plaintiffs could not claim a contractual
right based on a contract that had expired. The plaintiffs were bound by their own pleadings,
including the averment that the contract expired in June 2020. Absolution ought to be granted
therefore on the portion of the US$43 620 that related to the period after 2020.
The first portion of the claim was concerned with tobacco for the period 2019 and 2022.
The amounts involved are US$4 890 and US$22 580 for 2019 and 2022 respectively. The sum of
US$4 890 was based on an invoice prepared by the third plaintiff, (invoice number 062 of 2019).
In his evidence, the first plaintiff accepted that the claim was brought outside the three-year
prescription period. That claim had prescribed and ought to be dismissed.
Further, under clauses 10.4 and 10.6, of the joint venture agreements, the plaintiffs were
entitled to payment of “8 percent of gross sale proceeds on all crops and livestock”. The invoice
produced by the plaintiff was not evidence of gross sales. The plaintiffs’ witnesses had accepted
that the said invoice was not evidence of gross sales. It was argued on behalf of the defendant
that the invoice and the conclusions founded upon it did not establish a prima facie case for the
share of the tobacco income for 2019.
The defendant contended that given that the claim for US$43 620, of which US$5 890 is
part, was for “farming operations”, it was necessary for plaintiff to prove that the basis of that
amount was “farming operations”. The report by the plaintiffs’ expert witness showed that the
figures for tobacco were estimates. Under those circumstances, no prima facie case was
established.
As regards the amount of US$22 580 for 2022, the defendant averred that no prima facie
case was made because the joint venture agreements had expired. The expired agreement could
not have given rise to a right to claim the 8 percent share of the income. Further, the amount of
US$22 580 for 2022 was not based on 8 percent of gross sales proceeds on all crops and
livestock.
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It was further argued that annexure 14 to the expert’s report was a screenshot for 2015.
The plaintiffs’ second witness stated that the document was supplied to him by the first plaintiff,
and it had been written on 25 June 2015. Further, the tobacco income schedule for 2019 to 2022
in the plaintiffs’ bundle also stated that the year 2022 estimates were to be verified with “MTC
or TIMB”. No prima facie case was therefore established for the claim for US$22 580.
Concerning claims for income on silage, chia, sweet potatoes and sugar beans, it was
submitted that absolution ought to be granted because the bulk of the claims had either
prescribed or were based on estimates. Estimates were not a basis for entitlement to the benefits
in question in terms of the joint venture agreements.
In their brief response, the plaintiffs submitted that the defendant did not deny farming
tobacco for the 2021-2022 farming season, and that it withheld the tobacco figures from the
plaintiffs. Further, the screenshot from the Tobacco Industry and Marketing Board (TIMB),
showed that the output was 795 bales which sold for US$282 224. The 8 percent of that amount
was US$22 577.92. That amount therefore ought to be paid as damages because the actual
farming was done, and the plaintiffs would have been entitled to receive that amount. It was
further submitted that the 25 June 2015 date appearing on the screenshot was not the date the
screenshot was taken, but the date of registration of the defendant as a tobacco grower.
I must state that given the nature of the defendant’s submissions under this head and the
clarity which with the defendant presented its case, the court expected the plaintiffs to respond in
like manner, justifying the claim under this head instead of giving a generalized response which
the court found unhelpful.
The components of the claim under this head are summarized in the plaintiffs bundle as
follows:
Maize US$12 100
Tobacco US$27 470
Silage US$ 1 200
Chia US$ 2 560
Sweet Potato US$ 290
Total US$43 620
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In its submissions, the defendant said nothing about the claim for the maize crop. I
therefore considered that there were no issues concerning this claim under this head.
The claim for tobacco is made up of two components. There is the sum of US$4 980 for
the period 2019. That amount is based on invoice SKY 062 of 2019 6. The defendant contends
that the claim has prescribed as it was brought up after the three-year prescription period. No
meaningful submissions were made in rebuttal. The court is satisfied that the claim has indeed
prescribed and is therefore improperly before the court.
The next component is made up of the sum of US$22 580. The defendant’s first
argument was that the claim was based on a joint venture contract that had expired in 2020, as
per the plaintiffs’ version. No claims could therefore be made based on that agreement. I have
already determined that the question of the status of the joint venture agreements is a matter that
must be determined after the court has heard the full story in view of the defendant’s own plea on
that point.
Be that as it may, I would still find in favour of the defendant for different reasons.
Clause 10.6 of the joint venture agreement states that for the duration of the agreement, the third
plaintiff would receive 8 percent of the gross sales proceeds on all crops and livestock or
disposals annually.7 The plaintiffs’ expert witness told the court that the figure US$22 580 was
partly based on information that he obtained from the first plaintiff. That information was in the
form of a screenshot for Tobacco Returns for 2022. The document is dated 25 June 2015.8
Further, the schedule in the expert’s report from which the sum of US$22 580 was
extrapolated states that the “2022 estimates to be verified with MTC or TIMB”. The two
acronyms are for Mashonaland Tobacco Company and the Tobacco Research Board. The expert
witness admitted under cross examination that he had not verified the latest information on
estimates with these key institutions. The screenshot relied on predated the expert’s valuation
report by almost 8 years. The information relied on neither conformed with clause 10.6 of the
joint venture agreement, nor was it based on a reliable source. The claim for absolution is
therefore well grounded.
6
See invoice SKY INV062 on page 119 of the plaintiffs’ bundle
7
Page 184 of the plaintiff’s bundle
8
See screenshot on p 117 of the plaintiffs’ bundle
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representatives. Such willful or malicious conduct could only be established through the
evidence of eyewitnesses who witnessed the malicious acts. The plaintiffs’ case was not pleaded
in the alternative to impute the damage to property or equipment to negligence or omissions on
the party of the defendant.
For the foregoing reasons, the court determines that the plaintiffs failed to establish a
prima facie case of vandalism that could be attributed to the defendant.
Damages in the sum of $US20 160 being loss of income caused by the defendant’s refusal to
vacate the farm upon expiry of the joint venture agreements
The claim was necessitated by the defendant’s alleged refusal to give vacant possession
of the farms upon the expiry of the joint venture agreements. The third plaintiff had allegedly
planned to enter a new joint venture with a new partner starting June 2022, but that joint venture
did not materialize. The plaintiff’s claim was based on 8 percent of the gross income that would
have been realized if that arrangement had been carried out.
According to the defendant, the first plaintiff’s evidence in chief was that there was an
agreement with a new venture partner to grow tobacco in that particular year, but because of
delays they were unable to start farming. The defendant is also alleged to have refused to give its
consent for the new partner to start farming operations. The new partner did not want to be
involved in the dispute and walked away. The defendant contends that the first plaintiff’s
evidence was at variance with the second witness’ report which was to the effect that the
plaintiffs had merely planned to enter into a new joint venture with a new partner beginning June
2022. The defendant further contends that the conflict in the testimony of the two witnesses
means that no prima facie case was established to sustain the claim.
Further, according to the defendant, the first plaintiff confirmed under cross examination
that there was no agreement yet with the new joint venture partner, Remake Investments
(Private) Limited. In the absence of such agreement, then the plaintiffs could not claim to have
lost a chance to profit from the joint venture. Remake investments allegedly failed to secure
funding of the intended joint venture for reasons which the plaintiffs did not rely for its claim.
The defendant argued that in the absence of an agreement between the plaintiffs and
Remake Investments, the plaintiffs could not competently allege that thirty hectares of tobacco
would have been planted. Similarly, the plaintiff could not assert the yield that would have been
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achieved from the thirty hectares. Further, without the benefit of an agreement, there was no
basis upon which the plaintiffs could seek to convince the court that they were entitled to 8
percent of the gross income. The first plaintiff conceded under cross examination that there were
no supporting documents to back up the claims of the new joint venture agreement.
In their response, the plaintiffs averred that there was no evidence to disprove the
allegation that the defendant unlawfully refused to vacate the farms that’s depriving them an
opportunity to make income. The plaintiffs insisted that the defendant was liable to pay damages
in the sum of US$20 160, being income lost because of the defendant’s refusal to give up the
farms on the expiry of the joint venture agreements.
The plaintiffs claim under this head is set out as follows:
“The joint venture agreements expired in June 2020 and the Defendant unlawfully refused to
vacate the farms to the effect that the Plaintiffs failed to undertake farming activities and was
deprived of income. The Defendant is liable to pay the sum of US$20, 160.00 in damages
suffered by the Plaintiffs for loss of income necessitated by the Defendant’s refusal to vacant the
farms upon the expiry of the joint venture agreement.”
The plaintiffs claim as pleaded makes no reference to a new joint venture arrangement
with any new partner. The claim is based on the alleged loss of income because of the
defendant’s refusal to give vacant possession of the farms. The evidence placed before the court
connects the lost income to the failure of the new joint venture agreement to take off because of
the defendant’s conduct. There is some disconnect between the case as pleaded and the evidence
that was placed before the court. Asked why the new partners identity was never revealed in the
papers, the first plaintiff claimed that he did not wish them dragged into litigation. There was no
signed agreement with the new partner. The new partner had allegedly prepared the tobacco seed
for planting but there was no land available.
Under cross examination, the expert witness said he did not know whether the
arrangement between the plaintiffs and the new joint venture partner was binding or not. The
plaintiffs ended up planting maize after the arrangement to plant tobacco crop fell through. In his
report, the expert witness stated:
“An assessment of the losses on the maize crop incurred as a result of the of Skyead’s actions is
pending. Skyead continue to hinder the new JV which is going ahead for the 2023-24 season and
may have refused to condone tobacco contractor finance to the new JV partners.” 9
9
Page 51 of the plaintiffs bundle
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Under cross examination, the expert witness admitted that the fact that the plaintiffs went
on to grow the maize crop instead of the tobacco crop meant that they had mitigated their losses.
The witness further admitted under cross examination that the yield achieved from the maize
crop ought to have been considered in determining the alleged loss suffered.
The plaintiffs’ evidence suggests to me that their claim is not only convoluted but was
also not well thought out. No prima facie case was established against the defendant.
sales for the years 2017 and 2018.10 The source documents used in the generation of the report
are two growers’ statements from Mashonaland Tobacco Company in the defendant’s name. The
first statement is dated 17 August 2017 and the second is dated 1 August 2018. Under cross
examination by the defendant’s counsel, the first plaintiff admitted that the claim was not
instituted within three years of the above dates. The witnesses also conceded that there was no
proof of the incentive having paid by the Reserve Bank of Zimbabwe. The evidence of the
second witness was not helpful. He also could not confirm whether the incentive was paid by the
Reserve Bank of Zimbabwe.
The question of prescription was not addressed by the plaintiffs in their response to the
application for absolution. It is clear from the evidence that the claims for the tobacco incentives
ought to have been made at the latest by 1 August 2021. The claim has therefore prescribed.
Even if it had not prescribed, no evidence was placed before the court to confirm that the
defendant was indeed paid that incentive by the Reserve Bank of Zimbabwe. No prima facie
case was established against the defendant.
Claim for the tobacco regrowth fine in the sum of US$4 450
In terms of the plaintiffs’ declaration, the claim was for the tobacco regrowth fine
imposed on the first plaintiff pursuant to the defendant’s failure and or refusal to destroy the
regrowth as required by the law. In its submissions, the defendant argued that the first plaintiff
voluntarily admitted liability for the fine when he signed the acknowledgment of guilty. The first
plaintiff conceded that based on the admission of guilty he was liable. The plaintiffs could not
pass on to the defendant the consequences of their free admission of guilty.
In response, the plaintiffs submitted that the regrowth fine of US$4 450 was proved and
by operation of law, it was the defendant’s obligation. It was also the defendant who had planted
the tobacco and made away with all the funds realized from the 2021/22 season. The defendant
was still on the farm when the plant inspection was done. The admission of guilty issued in the
name of the first plaintiff was signed for by an employee not the first plaintiff himself, and this
could be verified by comparing the signatures on the admission of guilty and the joint venture
agreements.
10
Page 51 of the plaintiff’s bundle.
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The admission of guilty shows the amount paid as US$4 000. The first plaintiff claimed
that the additional US$450 was for labour costs that the plaintiffs incurred on behalf of the
defendant. The regrowth had to be cleared with hoes by labourers on the 40-hectare piece of
land.
In the court’s view there is a prima facie case which warrants further ventilation. In its
plea, the defendant argued that the plaintiffs were not entitled to claim this amount because it
was forced to relinquish the farm. The defendant also claimed that it had been barred from
partaking in further farming activities at the time that the fine was levied. The circumstances
under which the defendant vacated the farm relative to the levying of the fine must be further
explored. The defendant’s evidence must be heard on this point. For that reason, the defendant’s
claim for absolution under this head must fail.
11
Page 80 of the plaintiff’s bundle.
12
See report on p 38 of bundle
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The cost for the intended land rehabilitation was not established. The quotation supplied
pertains to other forms of rehabilitation which the plaintiffs were not concerned about. The
quotation was concerned with construction of night storage dams and land clearance with
particular focus on tree stumping. Further, the expert witness conceded that he had not
determined the extent of the area to be rehabilitated, calling the omission an error on his part. As
correctly submitted on behalf of the defendant, the extent of the area to be rehabilitated is a
critical factor in the assessment of damages. The attached quotation was therefore irrelevant. The
absence of a clear demarcation of the area in need of rehabilitation made the plaintiffs claim
clearly a matter of conjecture. No prima facie case for the claim was established.
The amount claimed was based on assumptions, as confirmed by the valuation report and
the witness’ testimony. The claim was thus not based on proven horticultural activities, but
general crops grown in the area and figures obtained from the Agricultural Research Trust. It was
further submitted that in the absence of proof of farming activities and actual sales, no prima
facie case for the payment of US$184 800 had been established.
In response, it was submitted on behalf of the plaintiffs that the sum of US$184 800 was
alleged and proved to the court. The 8 percent formula had been adopted from the parties’
agreement. It was further submitted that the defendant should disprove its liability through the
evidence of actuals of horticultural produce. That included revenues from oil distillation of
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geraniums and khaki weed not declared. There was also evidence of crops seen on the ground by
the valuer and pictures of the oil distiller used for those crops.
The plaintiffs’ share is for 8 percent share of the horticultural proceeds. It is not in
dispute that the plaintiffs’ claim under this head was grounded on clause 10.6 of the joint venture
agreements between the parties. As already highlighted in this judgment, clause 10.6 entitled the
third plaintiff to receive “8 percent of the gross sales proceeds on all crops and livestock sales
or disposals annually, or the amount of USD 20 000 (twenty thousand US dollars), whichever is
greater.” This formula was to be applied for the duration of the agreements.
The defendant’s contention is that the joint venture agreements did not provide for
payments based on assumptions. I agree with that submission. A reading of clause 10.6 of the
joint venture agreement leaves one in no doubt that the 8 percent formula was to be applied to
gross sales proceeds of actual sales and was not to be based on assumptions. The duty of the
court is to interpret contracts in a manner that accords with the parties declared intentions. In
their submissions, the plaintiffs did not deny that this was the intention of the parties. That issue
was not addressed at all save for the instance on the provision of actuals by the defendant. The
plaintiffs’ claim is therefore bereft of any legal foundation as it falls foul of the provisions of the
parties’ joint venture agreements. The defendant is therefore entitled to absolution.
Claim for US$120 960 for indigenous timber harvested by the defendant during land
clearance
The valuation report claims that the timber was used as fuel in the tobacco barns over two
seasons, being the 2016/2017 and the 2019/ 2020 seasons13. The defendant avers that the claims
for the value of the timber was not instituted within the prescription period and had therefore
prescribed. The defendants further averred that in terms of clause 6.9 of the agreements, the
defendant was entitled to use the farm’s timber resources for domestic use, repairs and
construction, fencing, and processing of crops on the farm. The defendant argued that the timber
was therefore used for the purpose stated in the agreement.
The defendant further averred that even if it were assumed that it was liable for the cost
of the timber, what was infact claimed by the plaintiffs was not the cost of timber but that of
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coal. That was not a contractual benefit and could not be allowed. The amount of US$120 960
represented the value of the coal required to process tobacco for two seasons. That amount was
based on unfounded assumptions pertaining to hectarage and tobacco yields for the
aforementioned tobacco seasons. The defendant submitted that there was no supporting evidence
regarding the yield for two seasons or the cost of coal per unit.
In response, the plaintiffs averred that tobacco curing was done through exotic timber and
not indigenous timber as per farming tradition and practice. The plaintiffs therefore assessed the
benefit of the indigenous timber and imputed liability for the amount claimed as the value of the
timber harvested by defendant during the land clearance at the two farms. The plaintiffs further
averred that the timber covered 38.61 hectares and had been maintained for years. It was
submitted that it would be unfair for the defendant, which ought to have acquired curing timber
at a cost to have utilized the plaintiffs’ timber at no cost. It was argued that in HC 3977/21, the
defendant had a claim for land clearing yet in the same breadth the defendant was extracting
timber for use in curing tobacco. The clearing costs were far less than the value of the timber
benefit, hence the clearing costs ought to be off set against the compensation claims.
In their response, the plaintiffs did not address the critical issue of prescription. They also
did not address the critical question of why the report relied on the value of coal as the basis of
the claim and not the value of the timber allegedly harvested. Clause 6.9 of the joint venture
agreements is instructive. It states that:
“The Company shall only use the Farm’s timber resources for domestic use, repairs &
construction, fencing, and processing of crops on the Farm and shall not sell or otherwise dispose
of such timber resources.”14
As already observed, the expert’s valuation report claims that the harvested timber was
used as fuel in the tobacco barns over the stated period. The use of the timber for the stated
purpose was consistent with clause 6.9 of the joint venture agreement and one wonders why that
claim was instituted at all. The court determines that there is merit in the defendant’s claim for
absolution under this head.
COSTS OF SUIT
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The defendant submitted that absolution should be granted with costs on the legal
practitioner and client scale. That level of costs was justified on the basis that the plaintiffs’
claims were frivolous and that they constituted an abuse of court process. The other reason was
that the defendant ought to be compensated for being needlessly put out of pocket.
In response, it was submitted on behalf of the plaintiffs that the application for absolution
was frivolous and vexatious. The court was urged to dismiss it with costs on the legal
practitioner and client scale.
In the exercise of its discretion, the court found it befitting to order that the defendant’s
application for absolution be granted with costs on the ordinary scale. In as much as the court
largely found in favour of the defendant, part of the application for absolution was dismissed.
d) Claim (g) for payment of US$6 650 in respect of unpaid tobacco incentives due to
the plaintiffs.
e) Claim (i) for payment of US$3 900 being reasonable costs of land rehabilitation.
f) Claim (j) for payment of US$184 800, being income due to the plaintiffs under
the joint venture agreements.
g) Claim (k) for payment of US$120 960 in respect of the plaintiffs’ timber
harvested by the defendant during land clearance at the two farms.