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Kava v Jiko Fisheries Ltd No 2 [1998] FJHC 171; Hbc0283d.96s (3 December 1998)

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Fiji Islands - Kava v Jiko Fisheries Ltd No. 2 - Pacific Law Materials

I HIGH COURT OF FIJI

(AT SUVA)

CIVIL JURISDICTION

ACTION NO. HBC0283 OF 1996

BETWEEN:

APIMELEKI KAVA
of Lami, Fisherman
Plaintiff

AND:

JIKO FISHERIES LIMITED
of Lami
Defendant

R.I. Kapadia for the Plaintiff
W. Clarke for the Defendant

Date of Hg: 3rd December 1998
Date of Ruling: 3rd December 1998

RULING

On the 13th of October 1998 aI had heard evidence on behalf of the Plaintiff on 1st April 1998 I gave judgment for the Pthe Plaintiff against the Defendant in the sum of $128,100.00.

On the 5th of November 1998 the Defendant filed a Notice of Motion for an order that the Default Judgment entered against the Defendant be set aside on the grounds set out in an affidavit of Atul Deo, the Financial Controller of the Defendant sworn on the 5th of November 1998. This in itself is a misnomer in that Order 19 of the High Court Rules deals with entry of judgment in Default of Pleadings whereas in the instant case there has been no Default of Pleadings. Judgment was entered for the Plaintiff after a hearing of evidence lasting half a day in the circumstances set out on page 4 of my judgment where I said:

"A Defence was delivered on the 14th of April 1997 but before the hearing began before me on the 1st of April 1998 the solicitor for the Defendant sought leave to withdraw his representation of the Defendant on the grounds primarily that he was having great difficulties in obtaining proper instructions to defend the matter from the Defendant's insurers and that as the insurance cover was limited to only $6,000.00 it was considered it may be in the interest of the Defendant to obtain the services of its own solicitors to defend the case. The application was made by Summons dated 27th of March 1998 and on the hearing I gave leave to Messrs Lateef & Lateef to withdraw as solicitors for the Defendant subject to them filing an Affidavit of Service on the Defendant of the Summons of the 27th of March within 24 hours. This was duly done and as there was no appearance either in person or by other counsel for the Defendant I directed that the action proceed undefended. Sworn evidence was then given by the Plaintiff and another witness and I shall now summarise that evidence."

It appears from the cases cited by el for the Defendant this morning that the application is really made under Order 13 Rule 1ule 10 which states so far as relevant:

"The Court may, on such terms as it thinks just, set aside or vary any judgment entered in pursuance of this Order."

Order 13 is headed:

"Failo Give Notice Of Intention To Defend"

but there was no such failure by the Defendant in this case.

The affidavit of Atu amounts to a recitation of events between the Defendant and its insurer Dominion Insurancerance Limited and the solicitors requested to act for the latter Company, Messrs Lateef & Lateef.

I shall have to refer in some detail to correspondence annexed to Mr.s affidavit which I think iink it is fair to summarise as making a number of allegations against Dominion Insurance and Messrs Lateef & Lateef that either or both of them failed to represent the Defendant's interests adequately, but I must first quote paragraphs 17, 18 and 19 which say:

"17. That prior to 27th March, 1998, no proper instructions were sougr given.

18. That I am now advised and verily believe that Dominion Insurshould not have representedented us as a substantial part of the claim was not covered by the policy of insurance between us and them.

19. That we were not aware that the matter had proceeded until we read iji Times and saw the articarticle publicising the award to the Plaintiff."

Before Mr. Clarke began his submissions this mornn any depth I suggested to him that having read the Notice tice of Motion and Atul Deo's affidavit it seemed to me that the Defendant should be looking for any remedy it might have not to the Plaintiff but to Dominion Insurance Limited or Messrs Lateef & Lateef or both in that it seemed to me, without hearing any argument, that it would be unfair to penalise the Plaintiff for what really were alleged to be the mistakes or negligence of Dominion Insurance Limited or Messrs Lateef & Lateef. Mr. Clarke disagreed and began by citing the two well known cases of Evans v. Bartlam (1937) AC 480 also reported in (1937) 2 ALL E.R. 642 and the Fiji Sugar Corporation Limited v. Ismail [1988)] FLR 75. Both these cases concerned applications to set aside judgments entered after failure to comply with the rules of the High Court relating to procedure and as such are distinguishable from the facts of the present case which concerns a judgment entered after pleadings had been closed and a date for hearing given and evidence given in the absence of the solicitors on the record for the Defendant.

In paragraph 20 of his affidavit the Defe claims that there are triable issues relating to facts whis which the Defendant should have the right to re-open notwithstanding the judgment.

Counsel for the Defendant was obviously unaware of the recent decision of the Court of Appeal in Civil Appeal No. ABU0030/97S Wearsmart Textiles Limited v. General Machinery Hire Limited and Another delivered on the 29th of May 1998.

On pages 1516 of its judgment the Court of Appeal said:

"Dealing with the discretionary powers of the Courts unnglish Order 13 r.9 sub-rulb-rule 14 the Supreme Court Practice 1997 (the White Book) (Vol. 1 p.145) cites the Court of Appeal's judgment in Alpine Bulk Transport Co. Inc. v. Saudi Eagle Shipping Co. Inc., The Saudi Eagle [1986] 2 Lloyd's Rep. 221 as authority for following propositions:

"(a) It is not sufficient to show a merely &quouable" defence that woat would justify leave to defend under Order 14; it must both have "a real prospect of success" and "carry some degree of conviction". Thus the court must form a provisional view of the probable outcome of the action.

(b) If proceedings are deliberately ignored this conduct, although nounting to an estoppel at laat law, must be considered "in justice" before exercising the court's discretion to set aside."

Notwithstanding the Court of Appeal's later decision in Allen v. r [1992] P.I.Q.R. 255 w/u> which purports to dilute the principles emerging from Saudi Eagle, we subscribe to the White Book's preferred view that 'unless potentially credible affidavit evidence demonstrates a real likelihood that a defendant will succeed on fact no "real prospect of success" is shown and relief should be refused'.

Counsel for the Plaintifmits, and I agree, that this being the law for Fiji now stated with abundant clarity by they the Court of Appeal in a case involving failure to comply with the procedural rules of this Court, a fortiori it must apply to a case such as the present where evidence was taken after the pleadings had been closed.

If I were to accept the Defendant's submissions the result would almost certainlyhat any dissatisfied party arty to litigation could apply successfully to the Court to have the decision set aside on the grounds that it was the result of incompetence or inaction by the parties' lawyers or others having the conduct of the proceedings on behalf of the party, in this case an insurance company. That simply is not the law.

Earlier I quoted certain paragraphs of Atul Deo's avit of the 5th of November 1998.

Before passing to some of the correspondence which took place between the Defendant and its insand Messrs Lateef & Lat; Lateef and Dominion Insurance Limited I must refer to two questions and his replies which I put to counsel for the Defendant during argument. The Plaintiff gave evidence that the only medication he received on board the vessel was some Panadol tablets. Counsel for the Defendant disputed this and when I asked him whether the Defendant claimed that it had other medication on board which its crew administered to the Plaintiff such as morphine or antibiotics all Mr. Clarke could say that he was not sure and that he would have to get instructions on this. Likewise, referring to paragraph 20(f) of Atul Deo's affidavit which reads, "the practicability of the vessel detouring to Lau has not been addressed", I asked Mr. Clarke whether there were any charts on the vessel which showed that its draught was too high to go into Lau and disembark the Plaintiff there. All Mr. Clarke could say was that he would have to get instructions on this. I do not mean to be disrespectful to Mr. Clarke when I say that before making this application these were matters on which he should have first obtained full instructions which he admitted he had not. It may also be pertinent to ask whether it would have been practical to return immediately to Suva if to go to Lau was not practical. The evidence was that the vessel remained at sea fishing. Perhaps the profit motive was adjudged far more practical, albeit at the Plaintiff's expense.

I turn now to some of the correspondence. I first quote the first tparagraphs of a letter dated 18th March 1998 from Dominion nion Insurance Limited to the Defendant which for some curious reason is headed "Without Prejudice". The paragraphs read:

"Further to our letter dated 31st July, 19tached please find a copy oopy of self explanatory letter R.I. Kapadia & Co representing the injured employee. You would note that this matter has reached a serious stage where the claimant's Solicitor would not agree to our offers in out of court settlement. You would also notice that the claimant's Solicitor is also asking for $200,000.00 court award as opposed to total cover taken by your Company for $15,000.00.

As advised earlier we have appointed Messrs Lateef & Latarrister & Solicitors tors to file defence on your behalf. However they have had very little assistance from yourselves in terms of information to assist them in filing defence on your behalf. It now appears that with the fishing vessel Captain gone back to Korea and in absence of any other witnesses you would be left defenceless in the court.

With the way the damages are awarded in court nowadays it is most certainly the the amount will be substantially higher than your $15,000.00 policy coverage. It is with the respect we request you to engage your own Solicitors or confirm in writing that you are comfortable with Lateef & Lateef acting on your behalf."

p class=MsoNormaNormal style="margin-top: 1; margin-bottom: 1"> This is annexure 'E' to the Deo affidavit.

Annexure 'F' is a letter from Dominion Insurance Limited to the Defendated 27th March 1998; para paragraphs 2 and 3 read:

"We have received a verbal indication from the Solic, Lateef & Lateef that that an out of Court settlement is possible at approximately $25,000. We have asked them to pursue this possibility which would mean ourselves paying the Personal Accident claim of $6,000 plus all legal costs to date and yourselves the difference between the settlement and $6,000.

In the meantime, we need urgent decision as to whether you wish Lateef & Lateef teef to act on your behalf should the matter proceed to the High Court on the 1st of April."

The last letter annexure 'H' must be quoted in full as proof of what I consider to be either tvalier attitude of the Defe Defendant to the Plaintiff's claim or its incomprehensible refusal to treat the Plaintiff's claim with any seriousness.

"1st April 1998

Mr. K.C. Lee/p>

Managing Director

Jiko Fisheries Ltd

Box 13084

Suva

Dear Mr Lee

& Employee Liability Claim

Apii Kava

>

Date of Injury - 10/10/95

/p>

I refer to ourous correspondence regarding this claim and our meeting lasg last Friday with Mr. Haroon Lateef of Lateef & Lateef, solicitors.

A summary of events leading up to Friday's meeting is as follows.

ass=MsoNormaNormal style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> 1. We were advised of a possible claim under your Personal Accident policy 120320PAI003 covering ships crew on the 6th February 1996. The capital sum insured on this policy is $15,000 and the scheduled benefit for loss of an eye is 40% or $6,000.

2. On about the 26th June 1996 you passed to writ issued by the employeeloyees solicitor, R.I. Kapadia, claiming damages for the injury at common law.

3. On the 16th July 1996 we advised you that whilst you did have a personal accident policy covering crew you did not have a policy covering your liability under the Workmen's Compensation Act or at Common Law. We requested that you arrange for a filing of your defence to the writ.

4. Following a further ssion between yourself and our Claims Manager we wrote to y to you on the 31st July 1996 and confirmed our willingness to assist you with the defence of the writ by appointing our solicitor, Lateef & Lateef to file a defence on your behalf. We also stated in that letter that our liability in the matter would be limited to the sum insured under the Personal Accident Policy.

p class=MsoNormaNormal style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> 5. On the 25th October 1996 we wrote to you asking for information regarding the circumstances of the injury and evidence to show that Jiko was not negligent or responsible.

p class=MsoNormaNormal style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> 6. On the 14th January 1997 we again asked you in writing for the details as requerequested in our earlier letter dated 25th October.

7. On the 25th February 1997 we again requested the informationiously asked for.

8. Very brief details of the incident were finally provon the 17th March 1997 alth although no comment as to defending the accusation of Jiko's negligence.

9. On the 5th April we wrote to you asking for further information to assist thst the defence and a reply was received on the 9th.

10. On the 27th June we received minutes of the pre trial confe and this was confirmed aftd after clarification from your office.

11. On the October 1997 we were advised by Lateef & Lateef that that the case had been set for hearing on the 2nd April 1998. This advice was passed to you on the 5th November 1997.

12. On the 28th April we receivother medical report stating that the employee had lost 100t 100% of vision in the left eye.

13. On the 17th March we received a letter from R.I. Kapadia in response to our rour request for an out of court settlement figure. The figure suggested by Kapadia was $200,000. A copy of this letter was sent to you on the 18th March. We also asked you to confirm whether you wished Lateef & Lateef to continue acting for you. We also pointed out again that our liability in the matter was limited to the claim under the personal accident policy.

14. Lateef & Lateef in the interim continued to have negions with Kapadia on an outn out of Court settlement and at the time of our meeting on Friday last this had been agreed at $100,000.

The above sequence of events brings us to the meeting on Friday last, 27th March. At that meeting the sequence of events leading up to the current position was discussed in detail and also the insurance policy coverage or rather lack of it.

You rejected the plaintiff's offer of 0,000 settlement but at the same time did not give any clea clear instruction to Lateef & Lateef to continue with the defence in Court.

Therefore we have now been advised by Lateef & Lateef that thee filed with the Court a re a request to withdraw from the case which means that the hearing will not now take place on the 2nd April. They have also negotiated with Kapadia a reduced out of court settlement of $50,000 however this has been rejected on your behalf. I imagine that any further negotiation will start from this figure.

ve now gone as far as we can in this matter other than attending to settlement of the claimclaim under the Personal Accident policy. You will now need to instruct alternative solicitors to represent you and protect your interests. Once this is done Lateef & Lateef's file can be passed to them and of course we will provide them with all assistance possible.

Yours sincerely

Gary Callaghan

Managing Director

ass=MsoNormaNormal style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> cc Mr. Haroon Lateef & Lateef, Box 1296, Suva&quotan>

Paragraph 14 of the letter is as clear an indication as one would want of the fact that by the 1st of April 1998 the Defendant was well aware of the fact that if it did not give instructions to Messrs Lateef & Lateef or any other solicitors of its choice there was a real risk that the Plaintiff could obtain a verdict of $100,000.00.

Obviously the Defendant thought it knew bettan its insurer or the insurer's very experienced solicitorsitors and chose to ignore the advice it had been so clearly given.

It now cto this Court claiming, or perhaps I should say more accurately, feigning surprise that thet the Plaintiff should have obtained a verdict against it and that it was not properly kept informed of the progress of the case.

The correspondence I have just quoted is ent refutation of such a claim. Atul Deo deposes that the fthe first the Defendant knew of the verdict against it was an article in the Fiji Times. This may be true.

Counsel for the Plaintiff has provided the Court with two newspaper reports of my judgment, thathe Fiji Times and also in t in the Daily Post of the 14th of October.

It is to be noted that the Notice of Motion now before me was noued until the 5th of November, over three weeks from the dahe date of the newspaper reports.

When counsel for the Defendant was asked he Defendant had waited for more than three weeks before isre issuing its Motion all he could say was that "it was not practical to do so before that". No elaboration was attempted by Mr. Clarke as to this but in my opinion it is yet another example, although not of the same magnitude, of the failure by the Defendant to take any action to protect its rights in this matter.

For hird time in a week I have had to apply the maxim Vigilantibus, Non Dormientibus, Jura Sura Subveniunt which perhaps may be something of a record for Fiji.

The Defendant claims that it will suffer an injustice if the Court does not grant its Motion. Like dissatisfied litigants the the Defendant says nothing about the injustice the Plaintiff would suffer if I were to grant its Motion.

The history of the Defendant's inaction, or ineptitude or, and perhaps this is a combination of these two, its steadfast refusal to appreciate the risk it was running by failing to give instructions to its insurer or its solicitors or to any solicitor of its own choice to defend this case satisfies me beyond a shadow of doubt that there is not one scintilla of merit in this application. There is nothing to prevent the Defendant suing its insurer or Messrs Lateef & Lateef or appealing my judgment if it wishes but this is no reason why the Plaintiff should be deprived of the fruits of his judgment.

For these reasons I dismiss the DefendaNotice of Motion and I order it to pay the Plaintiff's cost costs which I fix at $300.00.

JOHN E.

JUDGE

Cases referred to in Ruling:

Evans v. Bartlam (1937) AC 480.

Fiji Sugar Corporation Limited v. Ismail [1988)] FLR 75.

Wearsmart Textiles Limited v. General Machinery Hire Limited and Another - Civil Appeal No. ABU0030/97S - unreported judgment of Court of Appeal of 29th May 1998.

The following additional case was cited in argument:

Civil Appeal No. ABU0022/95 Sakatar Singh v. Westpac Banking Corpon - unreported judgmendgment of Court of Appeal dated 9th November 1995.

Hbc0283d.96s


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