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High Court of Fiji |
IN THE HIGH COURT OF FIJI
WESTERN DIVISION
AT LAUTOKA
[CIVIL JURISDICTION]
Civil Action No. HBC 72 of 2014
BETWEEN : MAYA KIDMAN
Plaintiff
AND : PREM CHANDRA & AJENDRA PRASAD
Defendants
Before : Acting Master U.L. Mohamed Azhar
Counsels: Mr. Z Mohammed for the Plaintiff
Mr. A. J. Singh for the Defendants
Date of Ruling : 26th September 2017
RULING
[On Summary Judgment]
The cause
01. The plaintiff sued the defendants for wrongfully transferring the property which was purchased using the money that she remitted from Australia. The plaintiff claimed in her statement of claim that, in or about 2012, the first defendant recommended to her to purchase a property in Fiji, to which she expressed her interest and on 29th January 2013 remitted a sum of A$ 300,000.00 which was, at that time, equivalent to F$ 514,751.00 to the account of one Chandra Kant Lodhia whom the plaintiff did not know. The defendants entered into a Sale and Purchase Agreement with one Ishwar Lal for the purchase of a property situated at Kennedy Avenue, Nadi for FJ$ 475,000.00 and later the defendants transferred the said property to their names by a Transfer dated 08th May 2013. Therefore, the plaintiff prayed, inter alia, for a declaration that the defendants are holding the said property in trust for the plaintiff; an order for that the defendants to transfer the said property at their own cost to the plaintiff and judgment for the balance of F$ 39,751.00 after deducting the purchase price of F$ 475,000.00 from the total amount of F$ 514,751.00 which she remitted from Australia. It is interesting to note that, the plaintiff did not disclose the relationship with the defendants in her statement of claim. A person who just reads the statement of claim will infer that, the defendants were the real estate agent who recommended some properties in Fiji for the plaintiff.
02. The defendants filed their statement of defence and claimed that, the plaintiff, after the death of her first husband, married to the first defendant in 1995 and continued to live with him till 2013 despite their divorce in 2000. The second defendant was married to the daughter of the plaintiff and they were too divorced in the same year. The defendants further stated that, the money was remitted from the joint account of the plaintiff and the first defendant opened in a bank in Australia to buy a house in the name of the defendants and they are the registered proprietors of the indefeasible title. The defendants, thus, prayed for the dismissal of plaintiff’s action with the cost on Solicitor/Client indemnity basis.
03. The plaintiff whilst admitting the joint account of both her and the first defendant claimed in her reply to the defence that, she was coerced by the first defendant to add his name to that account and the money in that account was the proceeds of sale of two properties situated in Australia which belonged to her and her daughter. The pleading were closed and the summons for directions was too filed. At that time, the defendants filed the summons for security for cost since the plaintiff is an Australian citizen though she was a Fiji national before her migration to Australia. The said summons was turned down by the previous Master for the reasons mentioned in his ruling.
04. Thereafter, the plaintiff filed this summons, pursuant to Order 14 rule 1 of the High Court Rule and the inherent jurisdiction of this court, seeking summary judgment against the defendants. The summons is supported by an affidavit sworn by the plaintiff. The defendants opposed the summons and filed the affidavit in opposition. This ruling relates to the said summons for summary judgment filed by the plaintiff.
Summary judgment
05. The summary judgment is a procedural cannon used during the civil litigation to promptly and expeditiously dispose any case without trial proper. An applicant is entitled for a summary judgment as a matter of law if there is no defence and no dispute as to the material facts of the case. The purpose of summary judgment is to obtain quick judgment avoiding unnecessary trial incurring the cost and expenses and exhausting the resources of the court which is not infinite. “The purpose of Ord 14 is to enable a plaintiff to obtain a quick judgment where there is plainly no defence to the claim. If the defendant’s only suggested defence is a point of law and the court can see at once that the point is misconceived the plaintiff is entitled to judgment. If at first sight the point appears to be arguable but with relatively short argument can be shown to be plainly unsustainable the plaintiff is also entitled to judgment. But Ord 14 proceedings should not in my view be allowed to become a means for obtaining, in effect, an immediate trial of an action, which will be the case if the court lends itself to determining on Ord 14 applications points of law which may take hours or even days and the citation of many authorities before the court is in a position to arrive at a final decision” : Parker L.J. in Home and Overseas Insurance Co. Ltd v Mentor Insurance Co. (UK) Ltd (in Liq) (1989) 3 All E.R. 74 at 77, “The Order 14 summary judgment procedure is available to any Plaintiff who desires a quick judgment on his or her claim where there is no defence to a claim. It is also available where any defence raised is either not a bona fide defence or discloses no triable issues so as to merely delay a judgement in favour of the Plaintiff” : Master Anare Tuilevuka in Vatukoula Gold Mines Ltd v Anand [2010] FJHC 46; HBC218.2008 (16 February 2010.
06. The law relating to entering summary judgement is provided in Order 14 of the High Court Rules. The said order provides for entering summary judgment against the defendant and the plaintiff as well on counterclaims. The rules 1 to 4 are relevant to the summons before me and those rules provide for the actions for which the rule on summary judgment applies; the manner in which the application must be made; how the judgment for the plaintiff to be entered and how the defendant be allowed to defend his case. Those rules are as follows:
Application by plaintiff for summary judgment (O.14, r.1)
1. (1) Where in an action to which this rule applies a statement of claim has been served on a defendant and that defendant has given notice of intention to defend the action, the plaintiff may, on the ground that the defendant has no defence to such a claim or part except as to the amount of any damages claimed, apply to the Court for judgment against that defendant.
(2) Subject to paragraph (3), this rule applies to every action begun by writ other than –
(a) an action which includes a claim by the plaintiff for libel, slander, malicious prosecution or false imprisonment.
(b) an action which includes a claim by the plaintiff based on an allegation of fraud.
(3) This Order shall not apply to an action to which Order 86 applies.
Manner in which application under Rule 1Must be made (O.14, r2)
2. (1) An application under rule 1 must be made by summons supported by an affidavit verifying the facts on which the claim, or the part of a claim to which the application relates is based and stating that in the deponent’s belief there is no defence to that claim or part, as the cause may be, or no defence except as to the amount of any damages claimed.
(2) Unless the Court otherwise directs, an affidavit for the purposes of this rule may contain statements of information or belief with the sources and grounds thereof.
(3) The summons, a copy of the affidavit in support and of any exhibits referred to therein must be served on the defendant not less than 10 clear days before the return day.
Judgment for Plaintiff (O.14, r.3)
3. (1) Unless on the hearing of an application under rule 1, either the Court dismisses the application or the defendant satisfies the Court with respect to the claim, or the part of a claim, to which the application relates that there is an issue or question in dispute which ought to be tried or that there ought for some other reason to be a trial of the claim or part as may be just having regard to the nature of the remedy or relief claimed.
(2) The Court may by order, and subject to such conditions if any, as may be just, stay execution of any judgment given against a defendant under this rule until after the trial of any counterclaim made or raised by the defendant in the action.
Leave to defend (O.14, r.4)
4.-(1) A defendant may show cause against an application under rule 1 by affidavit or otherwise to the satisfaction of the Court.
(2) Rule 2 (2) applies for the purposes of this rule as it applies for the purposes of that rule.
(3) The Court may give a defendant against whom such an application is made leave to defend the action with respect to the claim, or the part of a claim, to which the application relates either unconditionally or on such terms as to giving security or time or mode of trial or otherwise as it thinks fit.
(4) On the hearing of such an application the Court may order a defendant showing cause or, where that defendant is a body corporate, any director, manager, secretary or other similar officer thereof, or any person purporting to act in any such capacity-
(a) to produce any document;
(b) if it appears to the Court that there are special circumstances which make it desirable that he should do so, to attend and be examined on oath.
07. The principles that govern the application of these rules are discussed in many cases both English and local, and reference need not to all the cases. The court’s duty when an application for summary judgment is filed, to ascertain whether there is a triable issue and no arguable defence to the claim. If there is an arguable issue to be tried and there are matters of facts to be resolved, which can only be resolved in a trial, the court should not allow the application for summary judgment, but should grant leave to defend the matter in a full and proper trail, no matter how strong the plaintiff’s case would be. Greer L.J in Powszechny Bank Zwiakony W Polsch v Paros (1932) 2 K.B. 353 said at page 359 that:
“It has long been the rule that in proceedings under Order XIV, what the Court, whether this Court or the King’s Bench Division, has to ascertain is whether there is a triable issue. If there is, no matter how strongly the Court may anticipate that it will be decided in the plaintiff’s favour, it must order a trial.”
08. In Express Newspapers Plc v News (UK) Ltd and Others [1990] 3 All E.R. 376 at 379 Browne-Wilkinson V-C said:
“Summary judgment under Order 14 is a judgment given in the clearest cases before an ordinary trial has taken place. Summary judgment is only given where it is clear that there is no arguable defence to the claim. If there is an arguable issue to be tried, in particular where there are matters of fact to be resolved which can only be resolved at trial, the court gives leave to defend and the case goes to trial to be heard out. Summary judgment is a means of short-circuiting that system in the clear case where it is shown that, even if it went to trial, the defence could not succeed”.
09. Raising a point of law by the defendant as a defence against the claim of the plaintiff can be an arguable point. The court at this point should consider whether there is any substance in that in that proposed defence. Finally if the court can come to a conclusion, simply on submission of the parties without reference to contested facts, that the said point is bad in law, it can give the summary judgment for the plaintiff. Kerr L.J in S.L. Sethia Liners Ltd v State Trading Corporation of India (1986) 1 Lloyds Rep. 31 at page 38 said:
“if a point of law is raised on behalf of the defendants, which the Court feels able to consider without reference to contested
facts simply on the submissions of the parties, then it is now settled law that in applications for summary judgment under Order
14 the Court will do so in order to see whether there is any substance in the proposed defence. If it concludes that, although arguable,
the point is bad, then it will give judgment for the plaintiffs.”
Here it is timely to state some of the well-established principles relating to the entry of summary judgment:
(a) The purpose of 0.14 is to enable a plaintiff to obtain summary judgment without trial if he can prove his claim clearly and if the defendant is unable to set up, a bona fidedefence or raise an issue against the claim which ought to be tried.
(b) The defendant may show cause against a plaintiff’s claim on the merits e.g. that he has a good defence to the claim on the merits or there is a dispute as to the facts which ought to be tried or there is a difficult point of law involved.
(c) It is generally incumbent on a defendant resisting summary judgment, to file an affidavit which deals specifically with the plaintiff’s claim and affidavit and states clearly and precisely what the defence is and what facts are relied on to support it.
(d) Set off, which is a monetary cross claim for a debt due from the plaintiff, is a defence. A defendant is entitled to unconditional leave to defend up to the amount of the set off claimed. If there is a set off at all, each claim goes against the other and either extinguishes or reduces it Hanak v. Green (1958) 2 QB 9 at page 29 per Sellers LJ.
(e) Likewise where a defendant sets up a bona fide counter claim arising out of the same subject matter of the action, and connected with the grounds of defence, the order should not be for judgment on the claim subject to a stay of execution pending the trial of the counter claim but should be for unconditional leave to defend, even if the defendant admits whole or part of the claim; Morgan and Sons Ltd v. S.Martin Johnson Co (1949) 1 KB 107 (CA)
The correct approach to an application for summary judgment is succinctly summarised in my view in the headnote to the New Zealand Court of Appeal decision in Pemberton v. Chappell [1986] NZCA 112; (1987) 1 N.Z.L.R. 1 where it was said of the N.Z. equivalent of Order 14:
"Held: ... the High Court Rules casts onto the plaintiff the onus of convincing the Court that the defendant has no fairly arguable defence. Normally that onus will be satisfied by the plaintiff's affidavit verifying the allegations in the Statement of Claim and his oath that he believes that the defendant has no defence to the claim ... If a defence is not evident on the plaintiff's pleading and the defendant wishes to resist summary judgment, the defendant must file an affidavit raising an issue of fact or law and give reasonable particulars of the matters which he claims ought to be put in issue. Where the only arguable defence is a question of law which is clear-cut and does not require findings on disputed facts or the ascertainment of further facts, the Court may, and normally should, decide it on the application for summary judgment. But where the defence raises questions of fact on which the outcome of the cause may turn it will not often be right to enter summary judgment."
Over a century earlier in 1880 Lord Blackburn in Wallingford v. Mutual Society (1880) 5 A.C. 685 said of the nature of the affidavitrequired from a defendant in opposing an 'Order 14'application, at p.704:
"I think that when the affidavits are brought forward to raise (a) defence they must, if I may use the expression, condescend upon particulars. It is not enough to swear 'I say I owe the man nothing'. Doubtless, if it was true, that you owed the man nothing as you swear, that would be a good defence. But that is not enough. You must satisfy the judge that there is reasonable ground for saying so... And in like manner as to illegality, and every other defence that might be mentioned."(Emphasis is original)
Analysis
"But the correctness of factual assertions such as these cannot be decided on an application for summary judgment unless the assertions are shown to be manifestly false either because of their inherent implausibility or because of their inconsistency with the contemporary documents or other compelling evidence."
U.L.Mohamed Azhar
Acting Master
At Lautoka
26/09/17
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