High Court Orders Car Dealer to Reimburse Agriculture Society of Zimbabwe $87,000 for Fraudulent Vehicle Import
In a recent ruling, the High Court has directed a car dealer to repay the Agriculture Society of Zimbabwe a sum of US$87,000 for a high-end vehicle that was fraudulently imported into the country.
The vehicle in question, a Toyota Land Cruiser Prado VX, was brought into Zimbabwe from South Africa in 2019. However, it was confiscated by the Zimbabwe Revenue Authority (Zimra) two years later after investigations revealed that the importation had been conducted fraudulently.
Following unsuccessful attempts to resolve the matter with the car dealer, Mr. Kudakwashe Matyokurebwa, owner of Confined Auto Private Limited, the agriculture society initiated legal action against him.
In its lawsuit presented to the High Court, the society sought a refund of the purchase price along with damages, reflecting the discrepancy between the refund value and the cost of acquiring a legally imported replacement vehicle.
The society contended that Mr. Matyokurebwa and his company breached an implied warranty against “eviction,” or alternatively, fraudulently misrepresented that the vehicle had been lawfully imported, leading the society to act to its detriment based on this misrepresentation.
In his defense, Mr. Matyokurebwa argued that the society’s claim was unrealistic due to the vehicle’s depreciation, citing its use and involvement in two traffic accidents before its seizure. He valued the vehicle at US$38,000 at the time of confiscation.
Following a stalemate between the parties, the matter proceeded to a civil trial, where Justice Bongani Ndlovu presided.
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The court deliberated on whether there existed a buyer-seller relationship between the parties and if Mr. Matyokurebwa fraudulently misrepresented the vehicle’s lawful importation to the society.
Based on the balance of probabilities, Justice Ndlovu found merit in the society’s claim and ruled in its favor, ordering Confide Auto to reimburse the society the full amount of US$87,000. Additionally, Confide Auto was instructed to pay interest at the prescribed rate from the date of summons until full payment. However, the court dismissed the society’s claims against Mr. Matyokurebwa in his personal capacity.
During the legal proceedings, the society asserted that a verbal agreement of sale had been established, and Confide Auto had received the purchase price before delivering the vehicle. Mr. Matyokurebwa countered that Confide Auto was acting as an agent for the society’s vehicle importation, receiving a commission for the service. The court ultimately determined the transaction as a sale.
This ruling serves as a significant decision in resolving the dispute over the fraudulent importation of the vehicle and provides restitution to the aggrieved party, the Agriculture Society of Zimbabwe.
