The first plaintiff is a farmer who owns Ziswa Farm (“the farm”) otherwise known as Farm 23 of Lawrencedale Estate in the District of Makoni, Rusape which farm he prefers to rent out while staying on it, as he currently rents it out to his neighbour, he having rented it ...
The first plaintiff is a farmer who owns Ziswa Farm (“the farm”) otherwise known as Farm 23 of Lawrencedale Estate in the District of Makoni, Rusape which farm he prefers to rent out while staying on it, as he currently rents it out to his neighbour, he having rented it out to the first defendant prior to that and yet to another person before the first defendant came in.
The second plaintiff is his wife, who, apart from the fact that she was cited as a party along with the first defendant in a joint venture agreement concluded between the couple and the first defendant, on 9 January 2009, has been cited in these proceedings in extremely unclear circumstances.
The first defendant is a commercial farmer, a tobacco grower of note, conducting such business generally at Landos Farm, Halfway House in Headlands and is a director of the second defendant, a duly incorporated company.
The plaintiffs instituted proceedings against the defendant, and, in their summons and declaration, they set out an array of claims, thirteen (13) in all, arising out of a lease agreement signed between the first plaintiff and the first defendant on 9 January 2009 on which date a second agreement titled “Memorandum of Joint Venture Agreement” was also signed between the first and second plaintiffs on the one hand and the first defendant on the other hand.
The plaintiffs averred, that, sometime in 2008 they had entered into a long term development lease agreement with the defendants for the use of the farm and that although the first defendant had signed as the tenant, the actual farming was done through the second defendant.
In terms of the lease agreement, the defendants were expected to put up and maintain infrastructure at the farm, like the construction of 44 houses for workers, dam, and barn construction.
The relationship between the parties deteriorated over time resulting in the defendants cancelling the lease agreement on 2 July 2012 before vacating the farm without notice.
The plaintiffs averred further, that, when the defendants vacated the farm they unlawfully removed certain items of property belonging to the plaintiffs valued at US$186,701 which amount they claimed.
The defendants badly damaged the plaintiffs property valued at $15,905.
They removed fences and gates as they vacated, whose value is $7,600.
During the tenancy, the defendants damaged four (4) barns which were falling at the time they left, while two (2) barns were badly cracked and supported by poles. This was in breach of the agreement of the parties requiring the defendants to keep the barns in good and perfect condition and to repair them to usable state when vacating.
The plaintiffs claimed $5,008 being the costs of repairing the barns.
In further breach of the agreement, the defendants left the farm without removing and destroying tobacco stalks from the land and seed beds which exercise the plaintiffs had to undertake at a cost of $780 including a fine paid to the Environmental Management Agency.
The plaintiffs claimed a sum of $26,313 being the value of their property and machinery including overhead water storage tank and pipes, workers houses, underground cables, water reservoir, cast iron pipes, pump unit, electricals at boreholes and at transformers.
The plaintiff averred further, that, in terms of the lease agreement, the defendants were obliged to deliver to them certain quantities of maize but failed to deliver 50 metric tonnes of maize worth $15,000 which amount the plaintiffs claimed.
They claimed a sum of $45,000 damages for loss of income for the 2012-2013 farming season they would have realised if the defendants had not prematurely terminated the lease agreement and without notice.
A sum of $64,160 was claimed for arrear rentals for the 2011-2012 tobacco crop, being 8% of the gross turnover in respect of crops produced at the farm in terms of the agreement given that 220,000kgs of tobacco were produced during that cropping season.
A sum of $1,980 refund of what the plaintiffs paid for rates and levies to Makoni Rural District Council was claimed, which should have been paid by the defendants in terms of the lease agreement.
The plaintiffs claimed $5,500 being their share of the hailstorm insurance claim made by the defendants to their insurers for the 2009-2010 and 2010-2012 seasons.
A sum of $67,506 was claimed as the value of a centre pivot and generator, which, although purchased by the defendants, they should have left at the farm for the plaintiffs benefit as part of the long term development of the plaintiffs farm.
They claimed $4,240 being 8% of the tobacco seedlings grown on their farm by the defendants.
The defendants have contested the claims, and, in their plea, they took issue with the citation of the second defendant as a party to the proceedings given that there was no agreement, of whatever nature, between the plaintiffs and the second defendant.
In respect of the first defendant, they averred that he complied with all the terms of his agreement with the plaintiffs and denied owing the plaintiffs any money.
The relationship between the parties suffered as a result of the plaintiff's endless interference with farming operations and peaceful enjoyment of the property resulting in a court order being sought and granted interdicting such interference.
The first defendant had to cancel the lease agreement after the plaintiffs had preferred false and malicious criminal charges against him.
The defendants averred that at the termination of the lease, a verification exercise was conducted by the parties which established that all the plaintiffs property had been accounted for, and, as such, none was removed or damaged.
In addition, the fact that the plaintiffs had forcibly taken possession of the farm and equipment, meant that the defendants could not be expected to account for the damage to any property during that period.
They denied vacating the farm secretly or removing fences and gates in the process, especially as the parties were aware of the termination and the defendants vacation of the farm. They denied vandalising any property and that the plaintiffs were entitled to any damages for loss of income.
The parties agreed on the issues for trial at the pretrial conference, which are captured in their joint pre-trial conference minute as:
(a) Whether there was an agreement between the parties as pleaded by the plaintiffs;
(b) Whether the defendants fully complied with the terms and conditions of the agreement;
(c) Whether some of the plaintiffs claims have prescribed, if so, which ones specifically; and
(d) Whether the plaintiffs are entitled to the claims set out in the summons.
Only the first plaintiff gave evidence while the second plaintiff chose not to. They also called witnesses, namely, Assistant Inspector Nixon N'andu, Canaan Nyamombe, and Fanuel Phange.
It was the evidence of the first plaintiff (Ziswa) that prior to the first defendant (Chadwick) approaching him in 2008 he had been leasing his farm to someone else, and that, after Chadwick left unceremoniously in July 2012, he again let out the farm to a neighbour of his, Mr Coleman of Mersy Farm, who, upon taking over, repaired the eight (8) barns which Chadwick had left in a falling condition.
Himself and Chadwick negotiated the lease agreement, which was reduced to writing; the latter having printed a standard form agreement obtained from the National Tobacco Association out of his computer.
He stated that they negotiated every clause, and, as they did so, they added annotations in long hand, which unfortunately were not initialled or counter-signed by the parties, although every page was initialled at the bottom.
After signing the lease agreement, they also prepared and signed a Joint Venture Agreement (JVA) at the instance of Chadwick who wanted it to be signed to protect the parties, given that politically leasing farms was unacceptable while joint venture agreements were tolerated.
As far as he was concerned, the real agreement between the parties was a lease and not a joint venture, which is why the Joint Venture Agreement (JVA) also spoke of a lease and rentals. He referred to both agreements which are part of exhibit 1.
Although both agreements were signed with Chadwick, the witness insisted that they were concluded with both Chadwick and the second defendant, Landos Farm (Pvt) Ltd (Landos) - a claim which is difficult to sustain given that Landos, as an incorporation, was not cited at all in both agreements.
He sought to hold Landos Farm (Pvt) Ltd liable because Chadwick introduced himself as its director and used its letterhead in correspondence.
Some payments were made by Landos.
His claim is based on both agreements.
He explained, that, while the written agreements were signed on 9 January 2009 he had already allowed the defendants to commence farming in August 2008 and that the written agreements only recorded what the parties had agreed.
It is significant that the lease agreement does not necessarily contain some of the necessary details, with the first clause omitting the name of the farm and its hectarage. It also omits the lease period and the date of commencement.
It only has the date of termination entered in pen.
On the various additions to the document, appended in barely legible ink, Ziswa said some were entered by himself while some were made by Chadwick as the two negotiated the terms of the agreement.
The lease provides, in clause 2, that the land was leased for purposes of growing tobacco on 30 hectares, maize on 40 hectares, 20 hectares of wheat or another crop agreed between the parties.
Ziswa said, practically, Chadwick only grew maize during the first year and did not do so for the remainder of the time he was on the farm, electing to concentrate on tobacco farming. He never grew wheat or any other crop for that matter.
The payment of rent is provided for in clause 3 which reads:
“The rent payable by the Lessee to the Lessor shall be 6% on the US$ of the gross turnover in respect of the crops produced on the said land, and, payment of such rent/lease shall be secured by means of direct payment into a FCA given by the lessee in favour of the Company against proceeds of tobacco sold through the Lessee's contract, and, in the case of other such as maize/wheat in equivalue (sic) it shall be executed and registered as soon as may be after the signing of this lease. An advance payment shall be discussed if necessary.”
Despite this provision, Ziswa testified that his claim was for 8% of the gross turnover which he justified by reference to a letter written by Chadwick, on a Landos letterhead, on 22 February 2011, which reads:
“Dear Mr Ziswa
RE: JOINT VENTURE OFFER FOR 2010-2011 SEASON FOLLOWING
I am writing to present my offer on the subject stated above. I am hoping my proposal will be acceptable to you and will be effective for the next three seasons.
I am proposing that I pay you 8% of the gross realisation from the tobacco sales as my joint venture offer. This will be for the sole use of your whole farm.
Please consider that this is the best that I can do. May I refer you to the cost of production document that I sent you earlier on. If I go beyond this offer, the whole enterprise ceases to be viable. I believe this offer presents a win win situation for both parties.
This really is the best that I can do. May you please inform me of your decision by or before 15 March so as to enable me to make preparations for the coming season.
Yours faithfully
Greame Chadwick”…,.
Although Ziswa said he accepted the offer, he did not say when and how this was done.
He did not produce any document of acceptance, neither did he expand on where the acceptance was communicated to Chadwick.
This gives credence to Chadwick's argument, that, his offer was never accepted and that the 6% contained in the lease agreement remained in force.
It is noteworthy that Chadwick appeared to have been writing in his personal capacity even though he used Landos's letterhead.
Ziswa said that the lease was to subsist for an initial period of 5 years but they then “moved to 8 years” and that it was “a developmental lease agreement” enjoining Chadwick to embark on improvements of a permanent nature on the farm, like the construction of dams, staff housing, improving barns and other infrastructural development.
He never did, except for the construction of 11 staff houses out of an agreed total of 44 houses. Even the 11 constructed were not completed. He only repaired one barn which had been burnt down prior to the commencement of the lease. Even in respect of that one, the parties did it together, with Ziswa providing the bricks. Chadwick, however, left the barns falling and supported by poles.
He said the failure to insert the lease period on the agreement was an oversight. So was the failure to insert the name of the leased farm and the date of commencement of the lease, but, it was 1 September 2008 while termination was at the end of August 2018 at the completion of 10 years.
It turns out it was not 5 years, neither was it 8 years, but, Ziswa did not explain when the lease period changed to 10 years.
He stated, that, at the commencement of the lease, they were to hand over to Chadwick their assets located at that farm which the latter was to use for his farming activities.
In that regard, and in the process of identifying and handing over those assets, they produced an inventory at entry point listing these assets. He made reference to p20 to 26 of exhibit 1, the inventory in question, saying all the listed assets were handed over in good working order.
The inventory has a column with the title “Quantity” which he says is where they endorsed not only the quantity of the items involved but also the condition of the items so that if the item was not in good order that would be stated in that column. The fact that there would be no comment on an item meant that it was in good order.
A look at that inventory shows only a couple of comments.
The first relates to diesel tanks with the comment “on stand”. The second relates to an MF tractor with the comments “1 No Wheels.” Other than the description of the disc harrow as “1 red in colour” nothing supports Ziswa's claims on the condition of the items whose state was not given throughout.
Both parties kept their copy of the inventory.
Ziswa went on to say, that, although most of his claims are not based on the written agreements, they had a lot of discussions which resulted in agreements not reduced to writing.
As far as he is concerned, a verbal agreement is also binding. He referred, in that regard, to the agreement on the construction of dams.
After going through the list of items which he said were handed over to Chadwick, including what he said were new “flue pipes not fitted to the barns but kept at the sheds” as well as his own stock of fertilisers not for use by Chadwick, Ziswa went on to say that the tenant had taken over the items and grew tobacco for four (4) years with him being paid due rentals for 2009, 2010, and 2011. He was however not paid anything for the last year the tenant was at the farm, which is 2012.
The claim for arrear rent therefore relates to the 2011 to 2012 tobacco growing season.
In arriving at the 8% of the tobacco produced for that season (as opposed to 6% stated in the agreement), he had to estimate using the sale sheets of Landos which he obtained.
He went through those sale sheets stating that he had to resort to estimation because the tenant did not give him the information.
Based on the sale sheets, and the other information on the tobacco that was produced, they computed that 220,000kgs of tobacco was sold during that year and his 8% of it is the sum of $64,160 being claimed as arrear rental for the 2011-2012 growing season.
When the plaintiffs wrote a letter of demand to Chadwick, on 23 July 2012, they stated that 205,800kgs of tobacco had been realized at the farm during that period, which had been sold at $4=10 per kg giving a gross of $843,780. They were entitled to 10% of it which is $84,378.
It is not clear where 10% cropped up from, but, they claimed it all the same.
In their summons, the claim was reduced to 8% of the gross turnover estimated at 220,000kgs giving the $64,160 being claimed.
Ziswa stated, that, in terms of the parties agreement, the tenant was obliged to pay rates and levies due to Makoni Rural District Council which, for the year 2011-2012, was $1,980. As the tenant did not pay in January 2012, he was forced to pay on their behalf. He would like to be reimbursed that amount.
He stated, that, although he received a receipt upon payment, he was unable to produce it.
In support of his claim, that the tenant was obliged to pay rates, Ziswa made reference to a letter written by Chadwick, again on the Landos letterhead, on 9 November 2010, which reads, in relevant part, as follows:
“Dear Mr Ziswa
RE: RESPONSE TO YOUR LETTER DATED 5/11/10
1. Landos Farm agrees to make a payment of: $1,440 (that had been paid for rates); $750 (for 50 cords of wood @ $15); $350 (barn fire); Total 2,540.
The money will be paid in on Wednesday the 10th of November 2010. The proof of payment will be on the farm on Thursday the 14th of November 2010 as well as for you to collect.”
Unfortunately, Ziswa did not see the need to produce the letter of 5 November 2010 which was being responded to.
He however maintained that the payment of rates was the responsibility of the tenant - even though the lease agreement had no such provision.
In respect of the claim for $5,500, Ziswa stated that the tenant was obliged to insure the tobacco crop against hailstorm destruction. In the event that the tobacco crop is destroyed by hailstorm, the insurer would pay for it.
Hailstorm destroyed the tobacco crop and the tenant claimed from his insurance and was paid, but he did not transmit to him 8% share due in terms of the lease agreement. He is entitled to a percentage of the gross turnover and would also be entitled to the same percentage of insurance payment made for destroyed crops. He is not aware of the exact amount involved because Chadwick refused to give him the figures.
He has had to estimate the figure based on the investigations which he carried out involving his discussions with the employees of the insurer who came to the farm for an inspection.
He did not disclose what those investigations revealed, only stating that he estimated the figure based on his experience and the damage he observed on the crop - an explanation not helpful at all.
Asked as to why the claim for hailstorm insurance, involving a 2009-2010 crop, would be made by summons served on 26 November 2012, outside the prescriptive period of three (3) years, Ziswa dithered.
He then said that “in the heat of things” there was a typing error in the summons because his hailstorm claim is for the 2011-2012 cropping season and not 2009-2010 claimed in the summons.
Significantly, no attempt was made to amend the pleadings.
Pressed by counsel on how he could possibly justify a claim in which he had no figure, Ziswa offered to withdraw the hailstorm claim accepting that it could not be proved.
In respect of the claim for the replacement value of the centre pivot and generator, Ziswa had a difficult time indeed.
He said that the tenant had purchased these movable assets and brought them to the farm for use during the tenure of the lease. He had, however, taken them away at the end. As far as he is concerned, these items fall under the long term development provision of the parties agreement, meaning that they should accrue to the farm. As such, they should be returned or their value paid.
As to how such items should qualify for permanent improvements, he could not explain.
His problems were compounded by the fact, that, he had, through a letter written on his behalf by his legal practitioners, on 12 April 2012, written to Chadwick, stated in part that:
“Of essence, the agreement was that of long term development partnership in terms of which you are obliged to undertake permanent structural development on the farm, such as construction and other infrastructure development. We have noted with concern that you have failed to meet your side of the bargain. You undertook to built (sic) 44 houses for the workers, however, only 11 have been constructed to date. You have bought a centre pivot for irrigation. However, it does not qualify as long term development because it depreciates in value. Also, there is a huge list of farm equipment that has broken down which you have not bothered to repair.”
There you have it.
The plaintiffs themselves did not regard the centre pivot as a long term developmental addition, and, by any stretch of the imagination, the generator cannot be said to be either.
The plaintiffs themselves understood long term to apply to construction of workers houses, dam, and barn construction, and other infrastructural development.
Nothing more needs to be said about that.
On the value of the property either allegedly removed from the farm and not returned, or those damaged by the tenant and not repaired, Ziswa reiterated that all the property given to the tenant, at commencement, was not only usable but also in good working order.
He pointed out, that, at no time did they make life difficult for the tenant because he had free access to the farm at all times and had guards looking after the farm.
It was only after he discovered that they were removing his property from the farm and refusing to return it, and failing to pay to him what was due in terms of the agreement, that he moved in with three (3) of his own guards and closed the barns to prevent the tenant from removing any tobacco produce.
The tenant removed an electricity line running from the first to the second dam, wires and poles were all removed. The implements listed in the pleadings were also removed, including underground pipes.
He produced exhibit 2, an album of photographs showing the state of some of the items which had been given to the tenant at the commencement of the lease agreement. The photographs were taken by his wife, the second plaintiff, and their legal practitioner, in the presence of police inspector N'andu at the time that the defendants vacated the farm.
Unfortunately, none of the photographs depicts the appearance of any of the items at the commencement of the lease agreement, and would, naturally, be unhelpful standing on their own, for comparison.
Ziswa stated, that, Chadwick had used most of his equipment during the lease but broke down most of them with some of the damage being inflicted deliberately.
For more than two (2) years, Chadwick had not repaired the damaged equipment.
He made reference to a list of items, p15 of exhibit 1, which he said was property stolen and removed from the farm, and another list, p18, which he said was property removed and returned in a damaged state.
Although in the summons he was claiming sums of $187,707 as the value of the property removed and not returned, $15,905 as the value of property removed and returned in a damaged state, $7,600 as the value of fences and gates removed or badly damaged by the tenant, and $15,008 being the cost of repairing the damaged tobacco barns, Ziswa said he has since seen the light.
He now realizes that he cannot sustain those claims given that the items involved were not new at the time the tenant took them.
He is therefore not claiming the values contained in the summons but would now defer to the testimony of an expert witness, Fanuel Phange, an accountant who penned exhibits 3 and 3a representing the depreciated values of all the items involved.
He said that he is the one who gave Phange the list of all the items involved and their description. He used the original inventory to do so. He gave Phange the quantities and the quotations for the cost of each unit, which he had sourced himself.
With all that information, he instructed Phange to depreciate the values of the items using international accounting standards. He did, and came up with a grand total of $385,943 which he now craves.
On the claim for $708 for labour hired to clear tobacco stalks from the fields and seed beds, as well as the penalty paid to the Environmental Management Agency (EMA), Ziswa said he hired 10 or 15 casual workers at $4 a day for one week. He hired a tractor for $200, bought diesel for $150 and paid a fine of $150 to EMA.
He could not properly break it down.
If he hired 10 workers for 7 days (assuming that is the number of days as opposed to 5 working days), he would have paid each one of them $28 per week and all of them $280. If he hired 15, the figure would be much higher by $140 meaning he paid $420. Working on the lesser figure, he would have paid $780 under this head. The higher figure would yield a total of $920.
Ziswa said, in terms of the parties agreement, which again is not captured in the written lease and Joint Venture Agreement (JVA), the tenant owes him 50 metric tonnes of maize.
They had agreed that Chadwick would deliver to him 18 tonnes of maize in the first year, 12 tonnes the second year and then moving to 18 tonnes annually from the maize he was required to grow at the farm. He therefore owes 50 metric tonnes valued at $15,000.
In arriving at the value, he inquired from GMB what the value of the maize was, and was told that it was $300 per tonne adding to $15,000 he is claiming.
Again, he does not have a quotation to support the claim.
Ziswa testified, that, during the final year that the tenant occupied his farm, he had grown tobacco seedlings at the farm. He used these seedlings to grow the main crop of tobacco from which he is claiming a share. Chadwick also took some of the seedlings to his other farms and sold some to unnamed individuals in unknown quantities.
According to him, seedlings constitute a crop, and, as the agreement stated that he was entitled to a percentage of the crop grown at his farm, he was therefore entitled to 8% of all the seedlings not used to grow the main crop at the farm.
He stated, that, he had established that seedlings were sold for $200 during the 2011-2012 cropping season. He counted the number of seed beds at the farm over and above what was required at the farm to come up with a claim that would turn William Shakespeare's Shylock “The Merchant of Venice” very green with envy.
Regrettably, he did not tell us what amount of seedlings were required at the farm, how many seed beds were there, how the figure claimed is arrived at, and, more importantly, how “the young one” of a tobacco crop could qualify for a crop and found a basis for a monetary claim.
He however conceded, that, prior to the 2011-2012 season he had not been paid for seedlings and had not submitted a claim, stating that in previous seasons he had not asked for payment for seedlings because relations had not soured.
It is therefore a claim not based on the agreement, but clearly actuated by malice and a strong desire to claim virtually everything, especially considering that the initial claim under this head was $10,200 made in the letter of demand, which was pruned down to the $4,240 now being claimed.
The final claim of $45,000 for loss of income and damages allegedly sustained as a result of the premature termination of the lease, was withdrawn by Ziswa in his evidence in chief.
He said after consultation with his lawyers, he has decided to abandon that claim because he “wants this claim to be clean on things damaged and money not paid.”
It is a concession properly made in light of the abundance of evidence, including a court order granted by this court by consent, pointing to interference with farming activities by the plaintiffs which led to the termination of the lease.
