Prejudice Can Be Caused by Misrepresentation: Court Rules
In a landmark judgment, the High Court has ruled that prejudice can be caused by misrepresentation even if it is not suffered directly by the person to whom the representation was made. The court found that potential prejudice is sufficient, and it is unnecessary to require a causal connection between the misrepresentation and the prejudice.
The Case
The case involved an agreement between the complainant (the appellant) and Musendo, where Musendo was supposed to superintend the businesses and assets of Adawillia Investments for a short duration. However, the parties crafted a document that did not accurately capture this agreement, which was calculated to deceive whoever would rely on it.
Court Ruling
The court found that several instances of misrepresentation were apparent in the case, and that prejudice could be caused by the misrepresentation even if the person who was supposed to act upon it did not do so. The court cited various legal precedents, including:
- S v Myeza 1985 (4) SA30 (T) @ p 32 C: This precedent states that prejudice need not necessarily be suffered by the representee, but can also affect a third party or even the State or community.
The court also examined section 136 of the Criminal Law (Codification and Reform) Act [Chapter 9:23], which speaks of:
- “Intention to deceive another person”: This section is wide enough to include the common law position, where prejudice can be caused by a misrepresentation even if it does not result in any direct harm.
Conviction
The court convicted the appellant of fraud, finding that he had intended to deceive and cause prejudice to the complainant, and that his actions had indeed caused prejudice. The court also dismissed the appeal against sentence, finding that the sentence of 10 years imprisonment was fair and reasonable.
Implications
This judgment highlights the importance of ensuring that representations are accurate and truthful, as even potential prejudice can be sufficient to constitute fraud. It serves as a reminder to individuals and businesses alike to always act with integrity and probity in their dealings with others.
- Accurate Representations: Ensure that all representations are accurate and truthful to avoid causing potential prejudice.
- Integrity and Probity: Always act with integrity and probity in your dealings with others to maintain trust and credibility.