Nyashadzashe Ndoro-—Chief Reporter
The High Court of Zimbabwe, Commercial Division, has dismissed Gray Homes (Pvt) Ltd's attempt to block a US$574,582.12 breach of contract lawsuit through arbitration, paving the way for a full trial.
Gray Homes recently faced criminal prosecution in a similar case until Vice President Constantino Chiwenga's wife, Miniyothabo Baloyi-Chiwenga withdrew fraud charges against owners Annavestah Mudiwa and Gray Mudiwa.
The couple had been accused of defrauding her of nearly US$1 million by failing to deliver on a construction project.
Justice Jacob Manzunzu ruled against Gray Homes’ procedural objection, finding the company failed to comply with court rules on how such objections should be presented. The case stems from a dispute with Anyway Choto (plaintiff), who alleges Gray Homes breached a construction contract.
Choto is demanding a refund of US$122,163, damages worth US$135,000, and US$317,419.12 for loss of profit.
Gray Homes, represented by Tafadzwa Mapuranga, argued that the matter should be resolved through arbitration based on an agreement between the parties. However, Choto's lawyer, Regina Mabwe, contended that the objection was not properly raised via a special plea, as required by Rule 12 of the High Court (Commercial Division) Rules, 2020.
Justice Manzunzu upheld this argument, stressing that although jurisdictional objections are important, they must follow the correct procedure. He noted that Gray Homes failed to apply for condonation after realizing the procedural misstep.
"I agree with Ms. Mabwe that while the objection to jurisdiction is not a nullity, it is actually invalid because it does not comply with the rules," Justice Manzunzu stated. "Its cure rests with an application for condonation through a special plea. That was not done."
The court struck out Gray Homes' objection and ordered the case to proceed to trial on the substantive breach of contract and damages claims. Choto was also awarded costs.
Musemburi Legal Practice represents Choto, while Saunyama Dondo represents Gray Homes.
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