𝗖𝗼𝘂𝗿𝘁 𝗡𝗲𝘄𝘀: 𝗦𝘂𝗽𝗿𝗲𝗺𝗲 𝗖𝗼𝘂𝗿𝘁 𝗔𝗹𝗹𝗼𝘄𝘀 𝗔𝗽𝗽𝗲𝗮𝗹 𝗼𝗻 𝗟𝗮𝘁𝗲 𝗪𝗲𝘀𝘁𝗼𝗻 𝗭𝗼𝗻𝗱𝘄𝗮𝘆𝗼 𝗬𝗼𝗸𝗼𝗻𝗶𝘆𝗮 𝗚𝗮𝗺𝗮 𝗘𝘀𝘁𝗮𝘁𝗲 𝗖𝗮𝘀𝗲

𝗠𝗦𝗖𝗔 𝗖𝗶𝘃𝗶𝗹 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 𝟭𝟯 𝗼𝗳 𝟮𝟬𝟮𝟮

𝗠𝘇𝗮𝗺𝗼 𝗦𝗮𝗺𝘂𝗲𝗹 𝗚𝗮𝗺𝗮 & 𝗪𝗲𝗯𝘀𝘁𝗲𝗿 𝗚𝗮𝗺𝗮 (𝗼𝗻 𝘁𝗵𝗲𝗶𝗿 𝗼𝘄𝗻 𝗮𝗻𝗱 𝗼𝗻 𝗯𝗲𝗵𝗮𝗹𝗳 𝗼𝗳 𝗯𝗲𝗻𝗲𝗳𝗶𝗰𝗶𝗮𝗿𝗶𝗲𝘀 𝗮𝗻𝗱 𝗱𝗲𝗽𝗲𝗻𝗱𝗮𝗻𝘁𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗲𝘀𝘁𝗮𝘁𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗹𝗮𝘁𝗲 𝗪𝗲𝘀𝘁𝗼𝗻 𝗭𝗼𝗻𝗱𝘄𝗮𝘆𝗼 𝗬𝗼𝗸𝗼𝗻𝗶𝘆𝗮 𝗚𝗮𝗺𝗮) 𝗩. 𝗧𝗵𝗲 𝗔𝗱𝗺𝗶𝗻𝗶𝘀𝘁𝗿𝗮𝘁𝗼𝗿 𝗚𝗲𝗻𝗲𝗿𝗮𝗹

𝗗𝗲𝗹𝗶𝘃𝗲𝗿𝗲𝗱 𝗼𝗻 𝟮𝟮𝗻𝗱 𝗝𝘂𝗹𝘆 𝟮𝟬𝟮𝟱

The Malawi Supreme Court of Appeal has delivered a ruling in the matter of Mzamo Samuel Gama and Webster Gama v. The Administrator General, reversing a previous decision of the High Court which had dismissed the appellants’ claim as statute-barred. The case concerns the long-standing administration of the estate of the late Weston Zondwayo Yokoniya Gama and the alleged failure by the Administrator General to properly manage and account for funds belonging to the estate.

𝗕𝗮𝗰𝗸𝗴𝗿𝗼𝘂𝗻𝗱

The matter originates from the year 1991, when the Administrator General took control of MK4,772.62 as part of the deceased's estate, with instructions to invest the amount and not distribute it until the youngest child of the deceased attained the age of 21. In 2018, the appellants, being direct beneficiaries of the estate, requested an account of the funds and any investment returns. Unsatisfied with the response, they commenced legal proceedings in the High Court of Malawi (Lilongwe District Registry) seeking declarations that the Administrator General was both a statutory trustee and an institutional constructive trustee under the Trustee Act.

The appellants further sought restitution of the original sum together with compound interest at a rate 10% above the prevailing commercial bank lending rate, dating back to 4th August 1991. In the alternative, they sought compensation for the same under the principle of money had and received. They also claimed costs of the action.

𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴

The High Court, however, dismissed the case in November 2019, on the basis that it was statute-barred, according to Section 20 of the Limitation Act which required that actions based on a will should be brought within 12 years; whereas the Appellant herein brought it on the 13th year. The High Court further declined to be guided by the provisions of Section 19 of Limitation Act as prayed by the Appellant herein because the said provision dealt with trusts, while the present action was not based on trust arrangements.

𝗔𝗽𝗽𝗲𝗮𝗹 𝘁𝗼 𝘁𝗵𝗲 𝗦𝘂𝗽𝗿𝗲𝗺𝗲 𝗖𝗼𝘂𝗿𝘁

Dissatisfied with the ruling, the appellants appealed to the Malawi Supreme Court of Appeal, for a reversal of the said ruling, arguing that the lower court erred in holding that the Appellant Case was statute-barred. They further claimed that the learned Judge erred in declining to be guided by the Appellant's pleadings which clearly showed that the Appellant's case was based on trust and fraud.

𝗦𝘂𝗽𝗿𝗲𝗺𝗲 𝗖𝗼𝘂𝗿𝘁 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁

The Malawi Supreme Court of Appeal, comprising the Honourable the Deputy Chief Justice Lovemore Chikopa, SC, Justices of Appeal Frank Kapanda, SC, Healey Potani SC, John Katsala, SC, Charles Mkandawire, SC, Sylvester Kalembera, SC, Dingiswayo Madise, SC, Rowland Mbvundula, SC, and Dorothy nyaKaunda Kamanga, SC, 𝗮𝗹𝗹𝗼𝘄𝗲𝗱 𝘁𝗵𝗲 𝗮𝗽𝗽𝗲𝗮𝗹.

The Court found that there was clear evidence that the Administrator General had acknowledged receipt of the funds in question and that a statutory constructive trust had indeed been created. The Court further found that there is no dispute of facts in the matter and ordered that the matter be sent back to the court below for trial before a different judge.

The Court also held that costs of the appeal and below should be borne by the appellant.