Lesotho Tourst Board v Tlebere (CIV/APN 407 of 97) [1997] LSHC 97 (22 December 1997)

1 C I V / A P N / 4 0 7 / 97 IN T HE H I GH C O U RT OF L E S O T HO In t he m a t t er b e t w e e n: L E S O T HO T O U R ST B O A RD A p p l i c a nt v K A N A N E LO T L E B E RE R e s p o n d e nt J U D G M E NT Delivered by t he H o n o u r a b le M r. J u s t i ce T. M o n a p a t hi on t he 2 2 nd d ay of D e c e m b er 1 9 97 T he Applicant filed an urgent application w h i ch it m o v ed ex p a r fe on t h ee 2 8 th O c t o b er 1 9 9 7. I g r a n t ed t he following o r d e rs after h a v i ng h e a rd M rs M a j e n g - M p o po C o u n s el for t he A p p l i c a n t. T he o r d e rs w e re that: 1. 2. T he n o r m al f o r ms a nd p e r i o ds of s e r v i ce a re d i s p e n s ed with. A rule nisi be a nd is b e i ng i s s u ed a nd r e t u r n a b le on t he 7th d ay of N o v e m b er 1 9 97 calling u p on t he R e s p o n d e nt to s h ow c a u se (if a n y) w hy ( a) T he D e p u ty Sheriff shall n o t , i m p o u nd a nd bring in his c u s t o dy t he vehicle f o r m e r ly registration n u m b er A 7 4 88 ( n ow travelling on t e m p o r a ry registration n u m b er to A p p l i c a nt u n k n o w n) a nd e n g i ne n u m b er a nd c h a s s is n u m b er reflected in A n n e x u re " H 1" to t he f o u n d i ng affidavit p e n d i ng finalization of t he application. ( b) T he v e h i c le shall n ot be r e t u r n ed to A p p l i c a nt t o g e t h er w i th its registration d o c u m e n ts a nd all its a c c e s s o r i e s. © A p p l i c a nt shall n ot be g r a n t ed s u ch f u r t h e e re a n d / or alternative relief. ( d) R e s p o n d e n ts shall n ot be o r d e r ed to p ay t he c o s ts h e r e o f. 3. P r a y er 2 ( a) o p e r a te w i th i m m e d i a te effect as an interim o r d e r. T he R e s p o n d e nt h a v i ng b e en s e r v e d, he t h en filed a n o t i ce of intention to o p p o se a nd to anticipate t he return d a te in t e r ms of R u le 8 ( 1 8) - on t he 6 th N o v e m b er 1 9 97 at 9 . 30 a . m. T he n o t i ce w as s u p p o r t ed by an a n s w e r i ng affidavit. At h e a r i ng t he R e s p o n d e nt a p p l i ed for l e a ve to file a s u p p l e m e n t a ry affidavit. T h is w as n ot o p p o s ed a nd it b e c a me p a g es 5 1 - 53 of t he p a g i n a t ed r e c o r d. On t he anticipated return d a te t he parties a g r e ed to f o r e go a nd n ot to a r g ue all o b j e c t i o ns a nd points-in-limine a nd w e re t h e r e f o re left to a r g ue o v er a f ew i s s u es t h at w e nt to m e r i ts of t he c a s e. T h o se c o u ld be s t a t ed briefly as b e i ng w h e t h er t h e re w as an a g r e e m e nt of s a le for t he p u r c h a se of t he c ar as a s a l a ry p a c k a g e. S e c o n d ly w h e t h er t he B o a rd of D i r e c t o rs a u t h o r i s ed s u ch a s a le w h e t h er specifically or by implication. T h is w e nt t o g e t h er w i th w h e t h er t he M a n a g i ng D i r e c t or or a ny officer or s e r v a nt of t he A p p l i c a nt h ad full e x e c u t i ve p o w er to bring a b o ut t he s a le a nd w h e t h er t he A p p l i c a nt w as t h e r e f o re e s t o p p ed f r om d e n y i ng t he s a le of t he v e h i c le to t he R e s p o n d e n t. Lastly w h e t h er t h e re h ad b e en a g r e e m e nt as to t he price of t he v e h i c le to be s o ld as part of a s a l a ry p a c k a ge in v i ew of t he interpretation to be g i v en to p a r a g r a ph 3 . 00 ( a) a nd ( b) of A n n e x u re " D" a nd in t he light of t he R e s p o n d e n t 's t i me or p e r i od of r e t i r e m e n t. T he facts in t he m a t t er w e re s i m p le a nd better d e a lt with t o g e t h er with t he c o m m e n ts a nd c o n c l u s i o ns as t h ey flow. T he R e s p o n d e nt w as e m p l o y ed by t he A p p l i c a nt as a M a n a g i ng D i r e c t or until t he last d ay of J u ne 1 9 97 as t he m i n u t es of t he E x t r a o r d i n a ry B o a rd m e e t i ng of t he 4 th J u ne 1 9 97 a n n e x u re " K T D" a l so s h o w. T h at m e e t i ng a l so r e s o l v ed to a p p o i nt an acting m a n a g i ng director so that t he M a n a g i ng D i r e c t or ( R e s p o n d e n t) c o u ld h a nd o v er to h im b e f o re he left. F u r t h e r m o r e, as it w as r e s o l v ed a r r a n g e m e n ts w e re to be m a de to p r o v i de t he R e s p o n d e nt with his t e r m i n al benefits. T he d i s p u te is w h e t h er t he M a n a g i ng Director's official c ar w as lawfully sold to t he R e s p o n d e n t. T he A p p l i c a nt in t h e se p r o c e e d i n gs said that t he v e h i c le w as n ot s o ld at all h e n ce t he v i n d i c a t o ry c l a im for its return. It b e c a me c o m m on c a u se that in J u ne 1 9 9 7, at t he t i me of t he expiration of t he R e s p o n d e n t 's contract, a n ew B o a rd of Directors h ad b e en a p p o i n t e d. A n ew c h a i r m an h ad b e en a p p o i n t ed in t he p l a ce of M r. M a k h e t ha w h i le M r. M a k h e ne c o n t i n u ed to be s e c r e t a ry of t he B o a r d. N o ne of t he t wo g e n t l e m en filed a ny s u p p o r t i ng affidavit. T h is b e c a me i m p o r t a nt in a r g u m e nt b e f o re this C o u rt for t he following r e a s o n s. T he R e s p o n d e nt c o n t e n d ed that t he a p p o i n t m e nt of a n ew r e s o l u t i on of t he B o a r d. T h e re w as n o t h i ng to s p e ak of a specific r e s o l u t i on of a s a l e, I a c c o r d i n g ly w o u ld n ot interpret A n n e x u re " D" ( R e s o l u t i o ns of t he B o a rd m e e t i ng of t he 7 th April 1 9 9 5) a l o ng t he lines of t he c o n t r a ct on a g r e e m e nt as we l a w y e rs k n ow it to b e, that is a m a t t er of offer a nd a c c e p t a n c e. It w as n o t. If I am w r o ng on t he first a s p e ct n a m e ly that t he authority of t he A p p l i c a nt to sell c an be i m p l i ed in an as m u ch as it is n ot specific b ut if it c an be i m p l i ed ( w h i ch I did n ot a c c e p t ), a nd if I am w r o ng on t he s e c o nd a s p e ct n a m e ly that t he a g r e e m e nt itself c an be i m p l i ed l o o k i ng at t he b r o ad a nd g e n e r al s u r r o u n d i ng c i r c u m s t a n c es of t he m a t t er e s p e c i a l ly t he c o n d u ct of t he F i n a n ce a nd A d m i n i s t r a t i ve M a n a g e r, I h a ve h o w e v er n ot f o u nd that t he R e s p o n d e nt w as entitled to a c q u i re this v e h i c le b a s ed on t he interpretation of t he p a r a g r a ph 3 . 0 0 ( a) of t he r e s o l u t i o n, I do n ot find that this R e s p o n d e nt w as entitled to a c q u i re t he v e h i c le b a s ed on t he interpretation to be g i v en to p a r a g r a ph 3 . 0 0 ( a) of A n n e x u re " D ", t h at is t he p a r a g r a ph that r e a ds as follows:- "(a) s h o u ld t he M a n a g i ng D i r e c t or retain this p o st for a b e y o nd t h r ee y e a r s, he s h o u ld p ay t he p e r i od r e s i d u al v a l ue of t he vehicle." T he m a t t er of fact w as that t he R e s p o n d e nt m e r e ly c o m p l e t ed t he p e r i od of t h r ee y e a rs ( up to t he last d ay of J u ne 1 9 9 7) a nd did n ot go b e y o nd that p e r i od of t h r ee y e a rs that d o es n ot t h e r e f o re d e s e r ve an interpretation f a v o u r a b le to p a r a g r a ph 3 . 0 0 ( a ). I w o u ld a l so c o n c l u de in t he s a me v e in t h at I did n ot find that A n n e x u re " A" is helpful to t he R e s p o n d e n t. T h is A n n e x u re " A" is t he m e mo of t he 2 5 th J u ne 1 9 97 f r om t he R e s p o n d e nt ( w h en still M a n a g i ng D i r e c t o r) to t he F i n a n ce a nd A d m i n i s t r a t i on M a n a g e r, m i s t a k i n g ly s p o ke of r e s i d u al v a l ue of t he v e h i c le on t he third p a r a g r a ph of that m e mo w h i ch r e a d s: " Y ou will k n ow f r om t he a t t a c h ed B o a rd of D i r e c t o rs M e e t i ng d e c i s i on that if I c o m p l e t ed my c o n t r a ct w i th L e s o t ho T o u r i st B o a rd I c o u ld b uy t he M a n a g i ng Director's v e h i c le at its r e s i d u al v a l u e ". T h is clearly s u g g e s ts a w r o ng i n f e r e n ce that t he c i r c u m s t a n c es of t he t e r m i n a t i on of t he r e s p o n d e nt l e a ds to t he interpretation c o n s i s t e nt with p a r a g r a ph 3 . 0 0 ( a) w h i ch I h a ve a l r e a dy ruled t h at t h e re c o u ld n ot be a ny c o n s i s t e n cy t h e r e w i t h, n or c o u ld t h e re be a ny a l i g n m e nt with t he m e a n i ng of that p a r a g r a p h. I h a ve u n d e r l i n ed " c o m p l e t ed my c o n t r a c t" in a b o ve q u o t a t i o n, to s u g g e st that this R e s p o n d e nt o n ly c o m p l e t ed his c o n t r a ct n ot in t e r ms of p a r a g r a ph 3 . 0 0 ( a) neither in t e r ms of p a r a g r a ph 3 . 0 0 ( b) so that this is a typical situation w h e re t h e re h ad to be a m e e t i ng of a m i n ds n a m e l y: T h at t he r e s p o n d e nt s h o u ld h a ve g o ne b a ck to B o a rd in t he w ay s u g g e s t ed in t he letter in A n n e x u re " F" of p r o c e e d i n g s, w h i ch w as an invitation by t he M a n a g i ng Director on t he 2 6 th A u g u s t, 1 9 9 7, r e q u e s t i ng that t h e re h ad to be a m e e t i ng for further c o n s u l t a t i on to s p e ak a b o ut this v e h i c l e. T h e r e f o re this a d ds probability to t he c o n t e n t i on that e v en t he p r e v i o us B o a rd did n ot a g r ee on s a le a nd price at w h i ch t he v e h i c le w o u ld be sold. In no w ay t h e r e f o re w o u ld t he B o a rd be h e ld to h a ve b e en e s t o p p ed m e r e ly by an internal a r r a n g e m e nt of or e x c h a n g ed c o r r e s p o n d e n ce b e t w e en t he R e s p o n d e nt a nd t he F i n a n ce a nd A d m i n i s t r a t i on m a n a g e r. T he B o a rd n e e d ed to h a ve r e s o l v ed specifically o v er t he i s s u e. T he R e s p o n d e nt did n ot a g r ee to m e et t he n ew m a n a g i ng director d e s p i te t he invitation letter of t he 2 6 th A u g u st 1 9 9 7. T h is s u g g e s ts or a nd further l e a ds to a c o n c l u s i on that t h e re w as no a g r e e m e n t. If t h e re is a d o u b t, s u ch a d o u bt that d o es n ot s e em to r e s o l ve t he q u e s t i on of t he s a id p a r a g r a ph 3 . 0 0 ( a) in f a v o ur of this r e s p o n d e n t. It m e a ns t h e r e f o re that I c o u ld n ot c o n c l u de that t h e re h as b e en a g r e e m e nt on or of t he sale. I w as t h e r e f o re n ot p e r s u a d ed that t he s t a t e m e nt of t e r m i n al benefits ( A n n e x u re " E ") s e r v es correctly as an indication that that t h e re c o u ld h a ve b e en a g r e e m e nt as to price. W h y? B e c a u se t he p r e m i se w as w r o n g, it s p o ke a b o ut residual v a l u e, m e a n i ng that e v en if this R e s p o n d e nt h ad a c t ed on t he p r e v i o us m e m o r a n d um of t he F i n a n ce a nd A d m i n i s t r a t i on M a n a g e r, b o th t he R e s p o n d e nt A d m i n i s t r a t i on M a n a g er w e re w r o ng in u s i ng t he p r e m i se b a s ed on that t he c o n t r a ct h ad b e en c o m p l e t ed as e n v i s a g ed by p a r a g r a ph 3 . 0 0 ( a) I w as n ot p e r s u a d ed t h e r e f o r e. N or w o u ld t he c o n d u ct of t he F i n a n ce a nd A d m i n i s t r a t i on M a n a g er b i nd t he A p p l i c a nt n or be h e ld to h a ve e s t o p p ed t he A p p l i c a nt f r om d e n y i ng t he e x i s t e n ce of an a g r e e m e nt of s a l e. As I h a ve said I w as reluctant to interpret t he situation of t he R e s p o n d e nt w h i ch neither b e l o n gs to ( a) n or ( b) of p a r a g r a ph 3 . 00 of t he m e n t i o n ed a n n e x u re to be interpreted a l o ng ( a) to s u g g e st that t he R e s p o n d e n t 's service m u st h a ve g o ne b e y o nd 3 y e a r s. T h at w as n ot a fact. T h e re c a n n ot h a ve b e en a s a le w h e t h er r e g a r d ed as part of t he "salary p a c k a g e ' or n o t. T h e re c a n n ot n ot h a ve b e en an a g r e e m e nt of s a le in t he classical definition of w h at a s a le is, that is a g r e e m e nt as to t he o b j e ct of s a le a nd a g r e e m e nt as to t he price. I w as referred to t he w o rk of G i b s on - S O U TH A F R I C AN M E R C A N T I LE A ND C O M P A NY L AW - 6 th edition - c h a p t er 3 pp 1 2 5- 1 31 on t he n a t u re of t he c o n t r a ct of sale. It l e ad me to c o n c l u de that " e v en if t h e re c o u ld h a ve b e en an a g r e e m e nt to sell, no " u s u al price" or r e a s o n a b le price c o u ld h a ve b e en implied in t he c i r c u m s t a n c es of t he p r e s e nt c a s e. M u ch of t he w e a k n e ss in this r e g a rd w as c o n n e c t ed with t he difficulty in intepreting t he s a id p a r a g r a ph 3 . 00 in f a v o ur of t he R e s p o n d e n t. T h e re w as n e ed to h a ve n e g o t i a t ed an a g r e e m e nt for t he s a le of t he vehicle. I m a de a finding t h e r e f o re that this application o u g ht to s u c c e ed with c o s ts to t he A p p l i c a n t. T. M O N A P A T HI J U D GE 2 2 nd D e c e m b er 1 9 97 F or t he A p p l i c a nt : M r. M o s i to F or t he R e s p o n d e n t: M r. M a t s au