Between October 1978 and December 2003, the plaintiff was a participating member of the first defendant pension fund. She was retrenched in December 2003, when the fourth defendant (Old Mutual), as administrator and underwriter of the Fund, advised her she would receive pension benefits. A cash commutation of ZWL$1,515,498.00 was paid to the plaintiff. She was advised a balance pension of ZWL$131,712.10 per annum (ZWL$10,976 per month) would be payable for a guaranteed period of 5 years and for life thereafter. However, the fourth defendant disbursed ZWL$1,955,328.48 to the third defendant without the plaintiff's knowledge. The third defendant paid less than what was disbursed by the fourth defendant. The fourth defendant did not disclose how it arrived at the pension capital values. The pension payments were terminated during the plaintiff's lifetime despite the guarantee of lifetime payments. All defendants ignored demands to explain or honor the pension benefits. The plaintiff issued summons claiming US$70,505.05 being the capital sum for purchasing pension benefits, plus interest and costs. The fourth defendant filed an exception claiming no cause of action existed against it as it was merely a messenger of the first defendant.
The exception by the fourth defendant was dismissed with costs in the cause.
A cause of action exists against a party where that party has direct involvement in the factual circumstances giving rise to the claim and possesses material knowledge necessary for the plaintiff to prove their case, even if no specific monetary relief is claimed against that party. An exception on the grounds of no cause of action cannot succeed unless it goes to the root of the claim and would destroy it altogether. Where a party administered a pension fund, directly advised the plaintiff of entitlements, and can explain how pension benefits were calculated and managed, that party's participation is necessary and a cause of action exists against them jointly with other defendants. The purpose of exceptions is to obtain speedy decisions on points of law apparent on the face of pleadings, not to exclude parties whose evidence is material to resolving the substantive dispute.
The court observed that even if there were misjoinder or non-joinder of a party, Rule 32(11) of the High Court Rules 2021 provides that no cause or matter shall be defeated by reason of misjoinder or non-joinder, and the court may determine issues affecting the rights and interests of persons who are parties to the matter. The court noted that what the fourth defendant was attempting to do was refuse to come to court to explain how it administered the pension resulting in no life pension being paid, which the court viewed unfavorably. The court also commented that the fourth defendant, as the expert administrator, was better placed than the other defendants to explain the pension dynamics to the court.
This case illustrates the application of the principles governing exceptions based on lack of cause of action in Zimbabwean civil procedure. It clarifies that where a party has direct involvement in the factual matrix of a dispute and possesses unique knowledge essential to resolving the issues (even if no monetary relief is claimed against them), that party can be properly joined and a cause of action exists against them. The case demonstrates the court's discretion to determine the appropriateness of exceptions and reinforces that exceptions should only be granted where they go to the root of the claim and would destroy it altogether. It also reaffirms the principle under Rule 32(11) that matters should not be defeated by misjoinder or non-joinder of parties, and courts can determine issues affecting the rights of parties before them. The judgment emphasizes substance over technical procedural objections where a party's participation is necessary for effective resolution of the dispute.