HARARE – In a landmark ruling, the High Court of Zimbabwe has granted leave for a class action suit to be brought against the African Business Women’s Association (ABWA) and its representative, Shamiso Fred, a former honorary diplomat to the United Arab Emirates (UAE).
A class action suit is a legal action where a group of people with similar legal claims join together to bring a lawsuit against a defendant.
This allows individuals with similar grievances to pool their resources and seek compensation or justice together, rather than each person filing a separate lawsuit.
The suit, which was instituted by five investors, seeks relief for specific performance or unjust enrichment arising from failed joint venture agreements.
Justice Sylvia Chirawu-Mugomba, in her judgement seen by Nehanda Radio, stated that “the applicants have made a case for the granting of the relief sought” and that “the respondents have failed to rebut the applicant’s assertions.”
She further noted that “the various attachments to the respondents’ opposing affidavit outlining what they perceive as the challenges faced, in my view, boost the applicants’ contention of a prima facie case.”
The class action suit represents over 307 investors who entered into joint venture agreements with ABWA but have not received their monthly returns or dividends. The investors, who are spread across the globe, have been identified through a schedule attached to the application.
The court appointed Blaman Sekete, one of the applicants, as the representative of the class of persons concerned in the class action.
Sekete has been tasked with publishing a notice in various newspapers, including The Herald and The Daily News in Zimbabwe, and the Sunday Times in the United Kingdom, informing all affected persons of the class action suit.
The notice, which is annexed to the judgment, reads in part: “TAKE NOTICE that on the 5th day of June 2024, before the Honourable Mrs. Justice Chirawu-Mugomba, the Commercial Division of the High Court of Zimbabwe, sitting at Harare, Zimbabwe, granted an application in terms of s3 of the Class Actions Act for leave to institute a class action suit against ABWA and Shamiso Fred.”
The notice further states that “the cause of action is that all affected persons entered into Joint Venture Agreements with ABWA, invested money for various projects but despite maturity time frames set out in the agreements, have not received monthly payouts or dividends.”
The relief sought is that of specific performance of the Joint Venture Agreements, or alternatively unjust enrichment. This means that the affected persons seek that the joint venture agreement terms be enforced.
In the event that this relief is not granted, the affected persons seek an order that the respondents be ordered to pay back money on the basis that they should not be enriched and that the affected persons should not be impoverished.
The court has given all members of the class action sixty days to notify the Registrar of the High Court, Harare, Zimbabwe (Commercial Division) if they wish to be excluded from the action.
Members of the class action also have the right to apply for leave to intervene in the class action to protect their interests.
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