Online Reporter
Fidelis Munyoro
Chief Court Reporter
A Bulawayo law firm Job Sibanda and Associates has lost its attempt to claim over $13166 in taxed legal costs from businessman Mr Charles Mabhena, following a High Court ruling that the claim violated the country’s currency laws.
Justice Mpokiseng Dube dismissed the law firm’s claim, ruling that the defendant had fully discharged his debt by paying RTGS$14,922 in 2019, as prescribed by Statutory Instruments 33 and 142 of 2019.
The dispute centred on the law firm’s demand for payment in United States dollars for legal services rendered in 2018.
Mr Mabhena had settled the taxed bill in local currency in July 2019, but the law firm argued the payment did not satisfy the debt, maintaining that the balance should be paid in USD.
The court examined the effect of Statutory Instrument 33 of 2019, which redefined all USD-denominated debts incurred before February 22, 2019, as liabilities payable in RTGS dollars at a 1:1 rate.
Justice Dube noted that under this law, any liability valued in USD before February 2019 was automatically converted to RTGS at par.
Citing the Supreme Court’s decision in “Zambezi Gas Zimbabwe (Pvt) Ltd v N.R. Barber (Pvt) Ltd & Anor”, Justice Dube said: “The words ‘immediately before the effective date’ refer to the state in which the assets and liabilities… should be in relation to the effective date, irrespective of how far back in time the asset or liability valued and expressed in United States dollars came into existence.”
The judge rejected the law firm’s argument that the liability only became fixed when the taxing master issued a certificate in May 2019.
Justice Dube ruled that the services rendered in 2018 were already valued in USD before the statutory cut-off date, making the debt subject to conversion into local currency under SI 33 of 2019.
The court also addressed Statutory Instrument 142 of 2019, which abolished the multi-currency system on June 24, 2019, declaring the Zimbabwe dollar the sole legal tender for domestic transactions.
Justice Dube concluded that the law firm’s attempt to claim US dollars in a domestic transaction contravened this law.
“The plaintiff’s claim for a value that the law has specifically taken away is not sustainable,” Justice Dube ruled.
The court held that Mr Mabhena’s payment of RTGS$14 922 in July 2019 constituted a full and final settlement of the taxed costs.
The claim was dismissed, and Job Sibanda and Associates was ordered to pay Mr Mabhena’s legal costs.
