Judgment Delivered on 19th November
2024
Court: In the Court of Appeal of Zambia Holden at Lusaka ( Civil Jurisdiction)
Panel:
J. Chashi, D.L.Y Sichinga, SC & N.A Sharpe-Phiri, JJA
Judgment
of the Court by: D.L.Y Sichinga, JA
Subject
Matter: Limitation of Actions in Zambia – Statute
Barred Claims
Facts:
This case involves an appeal by ABSA
Bank Zambia Plc against a ruling by the High Court, which dismissed the bank's
application to strike out a claim by T and L Limited on the grounds that it was
statute-barred. The claim arose from events dating back to 2005, when T and L
Limited alleged that ABSA Bank forcibly evicted them from their mortgaged
property without proper legal procedures. The plaintiff claimed damages for
loss of property and business due to alleged fraudulent actions by the bank.
The bank contended that the claim was time-barred under the Limitation Act,
asserting that the plaintiff should have initiated the action within twelve
years of the alleged dispossession. The High Court found that the plaintiff
became aware of the alleged fraud in 2019, thus ruling that the claim was not
statute-barred.
Issues:
●
Whether the claim
by T and L Limited was statute-barred under the Limitation Act, 1939, when the
cause of action arose.
●
Whether the
plaintiff exercised reasonable diligence in pursuing the claim.
●
Whether the High
Court erred in its findings regarding the discovery of fraud.
Holding:
The Court of
Appeal held that T and L Limited's claim was indeed statute-barred. The Court
found that the cause of action arose in 2005 when the plaintiff was
dispossessed of the property and that the plaintiff had sufficient information
to pursue the claim by 2008, making the 2023 action time-barred.
The Court
emphasised that the plaintiff failed to demonstrate reasonable diligence in
pursuing the claim after the dispossession. The Court noted that the
plaintiff's assertion of discovering fraud in 2019 was inconsistent with
earlier claims of awareness in 2008, indicating that the plaintiff could have
acted sooner.
The Court set
aside the High Court's ruling, concluding that the learned trial court Judge
erred in determining that the twelve-year limitation period began in 2019. The
appeal was allowed, and ABSA Bank was awarded costs, affirming that the claim
was time-barred under the Limitation Act.