Lesotho Bank (1999) Limited v Boliba Multi-Purpose Cooperative Society (C of A (CIV) 43 of 2011) [2012] LSCA 7 (27 April 2012)

IN THE COUR T OF AP PE AL OF LE S OTH O C OF A (CIV) NO. 4 3 OF 2 0 1 1 In t h e m a t ter b etween : LE S OTHO BANK (1 9 9 9 ) LIMITE D AP PE LLANT AND BOLIBA MULTI PUR P OSE COOPE R ATIVE S OCIE TY COR AM S MALBE RGE R J A S COTT J A HOWIE J A HE ARD : 1 6 APRIL 2 0 1 2 DE LIVE RE D: 2 7 APRIL 2 0 1 2 R E S P ONDE NT S UMMAR Y Ba n k – lia b ilit y for a ccep t in g a n d h on ou r in g ch equ es d r a wn on it , os t en s ib ly b y it s cu s t om er – cu s t om er a llegin g ch equ es t o b e for ger ies – b a n k d en yin g ch equ es in fa ct for ger ies – wh et h er for ger y p r oved . J UDGME NT HOWIE J A [1 ] Th e p la in tiff co-op er a tive s ociety wa s a t a ll r eleva n t tim es a cu s tom er of t h e d efen d a n t b a n k . In la te J u ly 2 0 0 2 t h e b a n k a ccep ted a n d p a id t h r ee ch equ es (t h e J u ly ch equ es ). Th e ch equ e for m s in qu es tion b or e t h e b a n k ’s n a m e a s t h e is s u er of t h e for m s a n d t h e p la in tiff’s n a m e a s d r a wer . Below t h e p la in tiff’s n a m e wer e t wo s ign a t u r es . Th e ch equ e n u m b er s wer e 9 8 6 , 9 9 1 a n d 9 9 3 . On ea ch t h e wor d for ty wa s s p elt “FOURTHY”. [2 ] In t h e fir s t h a lf of Au gu s t 2 0 0 2 t h e b a n k a ccep ted a n d p a id t h r ee ot h er ch equ es (t h e Au gu s t ch equ es ). It is com m on ca u s e or n ot d is p u t a b le t h a t t h e Au gu s t ch equ es wer e d r a wn a n d s ign ed b y t wo a u t h or ized s ign a t or ies on b eh a lf of t h e p la in tiff on for m s fr om a ch equ e b ook is s u ed b y t h e b a n k to t h e p la in tiff. Th e n u m b er s of t h e Au gu s t ch equ es wer e a ls o 9 8 6 , 9 9 1 a n d 9 9 3 . It is fu r t h er com m on ca u s e t h a t t h e a m ou n ts of t h e J u ly ch equ es wer e d eb it ed t o t h e p la in tiff’s a ccou n t . [3 ] Allegin g t h a t t h e J u ly ch equ es wer e for ger ies , t h e p la in tiff s u ed t h e b a n k to r ecover t h e los s occa s ion ed b y t h e d eb its r efer r ed t o. [4 ] Th e b a n k ’s on ly d efen ce wa s a d en ia l t h a t t h e J u ly ch equ es wer e for ger ies . [5 ] Th e m a t ter ca m e b efor e Hla joa n e J in t h e High Cou r t . Th e p la in tiff led t h e evid en ce of its s a les m a n a ger , Ms . Ma m oek ets i Mon a p a t h i Ma b u s e. Th e b a n k led n o evid en ce. Th e lea r n ed J u d ge ga ve ju d gm en t for t h e p la in tiff, h en ce t h is a p p ea l b y t h e b a n k . I s h a ll con tin u e r efer r in g to t h e p a r ties a s t h ey wer e in t h e cou r t b elow. [6 ] E s s en tia lly, t h e a r gu m en t in s u p p or t of t h e a p p ea l is t h a t wit h ou t exp er t evid en ce t h e J u d ge s h ou ld n ot h a ve fou n d , a s s h e d id , t h a t t h e J u ly ch equ es wer e for ged . [7 ] Th e evid en ce of Ms Ma b u s e es ta b lis h ed t h e followin g u n con tr over ted or in con tr over tib le fa cts . S h e h er s elf s ign ed two of t h e Au gu s t ch equ es a n d s h e k n ew t h e ot h er s ign a t u r es on t h os e ch equ es to b e t h e s ign a t u r es of h er fellow em p loyees , Mr s . Mon a p a t h i a n d Mr . Kh a lem a . Th e s ign a t u r es on a ll t h e J u ly ch equ es a p p ea r ed to b e t h os e of Mr s . Mon a p a t h i a n d h er s elf. However , s h e s a id “t h e s ign a t u r es a r e n ot ou r s ”. In em p h a s izin g t h a t s h e d id n ot s ign t h e J u ly ch equ es , s h e p oin ted ou t t h a t s h e con clu d ed h er s ign a tu r e wit h a fu ll s t op wh ich wa s a b s en t fr om h er a p p a r en t s ign a tu r e on t h e J u ly ch equ es . [8 ] Ms Ma b u s e wen t on t o in d ica te va r iou s d iffer en ces in p r in tin g b etween t h e two s ets of ch equ es . Th e wor d s “Ma s er u Ma in ” (t h e b r a n ch ) a n d t h e p la in tiff’s n a m e on t h e J u ly ch equ es a r e in a d iffer en t typ e fon t fr om t h a t u s ed in p r in tin g t h os e n a m es on t h e Au gu s t ch equ es . Th e wor d “k a p a ” is s p elt wit h a ca p ita l “K” on t h e J u ly ch equ es a n d a lower ca s e “k ” on t h e Au gu s t ch equ es . S h e a d d ed t h a t t h e J u ly ch equ e for m s h a d p er for a tion s , wh ich t h e b a n k ’s ch equ e for m s d id n ot. [9 ] Fin a lly, on e h a s t h e gla r in g in a b ility of t h e p er s on wh o filled in t h e J u ly ch equ es t o s p ell “for ty” – s om et h in g on e wou ld n ot exp ect fr om exp er ien ced officia ls of a n es t a b lis h ed b u s in es s – a n d t h e im p r ob a b ilit y t h a t t h e b a n k is s u ed ch equ e for m s wit h t h e s a m e n u m b er s . Id en tica l n u m b er in g wou ld ob viou s ly p r om ote con fu s ion in s tea d of t h e or d er lin es s t h a t s equ en tia l n u m b er in g is in t en d ed t o a ch ieve. [1 0 ] Th e evid en ce t h u s s u m m a r ized wa s s u fficien t to s h ow t h a t t h e J u ly ch equ es wer e in d eed for ger ies . On e m igh t a d d t h a t a b s en t a ch a llen ge to t h e wit n es s ’ cr ed ib ility or r elia b ility, a n d t h er e wa s n on e, t h e evid en ce of a h a n d wr itin g exp er t cou ld n ot h a ve ta k en t h e m a t ter fu r t h er . [1 1 ] Th e lega l p os ition in Sou t h Afr ica n la w, a n d t h er e is n o b a s is for h old in g t h a t t h e la w of Les ot h o d iffer s in t h is r ega r d , is t h a t wh en t h e s ign a t u r e of t h e d r a wer of a ch equ e wh o is a b a n k ’s cu s t om er h a s b een for ge d , it is p la ced on t h e ch equ e wit h ou t t h e d r a wer ’s a u t h or ity. Wit h ou t s u ch a u t h or ity t h e b a n k p a ys t h e for ged ch equ e a t its own r is k a n d it m a y n ot d eb it t h e d r a wer ’s a ccou n t: s ee Ted co Ma n a gem en t Ser vices (Pvt ) Ltd v Gr a in Ma r k etin g Boa r d 1 9 9 7 (1 ) S A 1 9 6 (ZS C) a n d t h e ca s es cited a t 2 0 6 A- B. [1 2 ] Th e a p p ea l m u s t a ccor d in gly fa il a n d it is d is m is s ed wit h cos t s . I a gr ee: I a gr ee: ____________________ C. T. H OWIE J US TICE OF APPE AL ____________________ J . W. S MALBE R GE R J US TICE OF APPE AL ___________________ D. G. S COTT J US TICE OF APPE AL For t h e a p p ella n t Ad v T. R. Mp a k a : For t h e r es p on d en t: Mr . T. Ma t ooa n e