The parties were previously married and divorced under case number HC 17513/99 in 2000. In the divorce proceedings, the parties agreed through a Consent Paper that three immovable properties (Remainder of Lot 12 Tynwald, Lot 1 of Lot 14 of Tynwald, and stand 475 Tynwald Township) would be donated to the Martmon Sibindi Trust. The divorce order incorporated this Consent Paper and regulated property rights between the parties. Plaintiff now sought to have the Trust dissolved and the same three properties distributed equally between the parties in terms of section 7 of the Matrimonial Causes Act. Defendant raised two special pleas: (1) lack of jurisdiction based on clause 11 of the Trust Deed requiring internal dispute resolution, and (2) res judicata based on the previous divorce order dealing with the same properties.
The special plea of jurisdiction was dismissed. The special plea of res judicata was upheld with costs. The matter was struck out on the basis of res judicata without proceeding to trial on the merits.
Where a final and definitive judgment has been delivered by a competent court dealing with the distribution of matrimonial property through a consent order donating such property to a trust, the parties cannot subsequently seek to re-litigate the distribution of the same properties under the Matrimonial Causes Act. The matter is res judicata where the previous judgment concerned the same subject-matter, same cause of action, and same parties. A clause in a trust deed requiring internal dispute resolution does not oust the court's jurisdiction but imposes an obligation to exhaust internal remedies, which a court has discretion to condone. Property held by trustees in their names in their fiduciary capacities constitutes trust property notwithstanding that it is registered in the individual trustee's name.
The court observed that it is preferable for court orders to be complete and stand-alone documents without reference to annexures or other documents, as this can create challenges when such documents cannot be located. The court noted that the general rule is that a party must exhaust internal remedies available before seeking judicial redress, unless exceptional circumstances can be shown to bypass this requirement. The court cited the principle from Wolfenden v Jackson that the exceptio res judicata is based on public interest that there must be an end to litigation and that authority vested in judicial decisions be given effect to, even if erroneous.
This case illustrates the application of the doctrine of res judicata in the context of matrimonial property settlements and trusts. It demonstrates that once parties have agreed to a property settlement in divorce proceedings that has been incorporated into a court order, they cannot subsequently seek to re-litigate the distribution of the same properties under the Matrimonial Causes Act. The case also clarifies that internal dispute resolution clauses in trust deeds do not oust court jurisdiction but merely require exhaustion of internal remedies, which a court may condone in its discretion. It reinforces the principle of finality in litigation and the binding nature of consent orders.