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High Court of Fiji |
IN THE HIGH COURT OF FIJI
CENTRAL DIVISION
AT SUVA
[CIVIL JURISDICTION]
Civil Action No. HBC 362 of 2022
BETWEEN :
ESTATE OF RO ADI LADY LALABALAVU LITIA KALOAFUTOGA MARA (deceased) by its Executors and Trustees ADI KOILA MARA NAILATIKAU of Suva, Fiji, Lawyer and RATU TEVITA ULUILAKEBA MARA of Nuku’alofa, Kingdom of Tonga, Consultant.
PLAINTIFF
AND :
SEKOVE NAQIOLEVU of Suva, Fiji, Lawyer and Businessman.
FIRST DEFENDANT
AND :
NA HINA LIMITED a limited liability company, having its registered office at the Offices of GH Whiteside & Co, 211 Ratu Sukuna Rd, Nasese, Suva.
SECOND DEFENDANT
AND :
NA HINA TRUST a Trust established under a Deed of Settlement dated 2 April 2002.
THIRD DEFENDANT
Before : Acting Master L. K. Wickramasekara
Counsel : Suveinakama Legal for the Plaintiff
Parshotam Lawyers for the Defendant
Date of Ruling : 28th of February 2024
RULING
01. There are two applications before this Court which shall be the subject of this Ruling.
02. The first application is the Defendant’s Summons to Strike Out the Writ of Summons and the Statement of Claim as filed by the Plaintiff and or in the alternative to extend time to file a Statement of Defence. This summons has been filed on the 24/02/2023 with the supporting affidavit of one Ratu Aisea Waka Vosailagi sworn on the 23/02/2023.
03. In response to this application, Adi Koila Mara Nailatikau has filed an Affidavit in Opposition on the 06/04/2023. The Defendants then filed an Affidavit in Reply on the 02/05/2023 as sworn by Ratu Aisea Waka Vosailagi.
04. Plaintiff thereafter had filed written submissions regarding this summons on the 28/07/2023 and the Defendant’s written submissions filed on the 22/08/2023.
05. The second application before this Court is the Plaintiff’s Motion filed on the 25/08/2023, pursuant to Order 38 Rule 2 and 3, for adducing certain Affidavits as evidence at the Trial of this matter. This application has been supported with the affidavit of Adi Koila Mara Nailatikau sworn on the same day.
06. Defendants have opposed the said Motion and have filed an Affidavit in Response by Ratu Aisea Waka Vosailagi on the 08/09/2023 and the Plaintiff has filed an Affidavit in Reply by Adi Koila Mara Nailatikau on the 06/10/2023.
07. Plaintiff has thereafter filed its written submissions on this application on the 06/10/2023 and the Defendants have filed their written submissions on the 17/10/2023.
08. Both parties thereupon agreed to proceed to a Ruling on both the applications upon the written submissions filed in lieu of a Hearing.
09. The Court shall accordingly consider the affidavits in evidence for and against both the applications and as well as the supporting written submissions of the parties whilst deciding on these applications.
“36.0 THAT a Declaration be made that the Defendants acted in breach of trust:
36.1 in the incorporation and management of the Second Defendant and the dissolution of the Nakuruvakarua Company Limited without consultation nor the approval of the Beneficiaries;
36.2 in the incorporation and management of the Third Defendant and the dissolution and/or neglect of the Yanuca Trust without consultation nor the approval of the Beneficiaries;
36.3 in having caused and permitted a conflict to arise between their personal interest and duties as trustee and that of the Beneficiaries in the expenditure of trust funds;
36.4 in their neglect and failure to account fully to the beneficiaries for income derived from the utilisation of trust funds;
36.5 in the acquisition of assets that did not accurately reflect the interests of the beneficiaries;
36.6 in their failure to act impartially and to act in the interests of all the beneficiaries; and in their failure to provide information and accounts to the beneficiaries concerning the trust fund.
36.7 in their failure to provide information and accounts to the beneficiaries concerning the trust fund.
37.0 THAT Orders are made in the following:
37.1 That the First and Second Defendants be discharged from their duties and responsibilities as Trustees of the Third Defendant; and
37.2 Specific Damages be paid to the Plaintiff to the value of fifty percent (50%) of the total value of the Second Defendant for her untimely discharge, under duress, as sole Trustee of the Yanuca Trust and Director of Nakuruvakarua Company Limited; and
37.3 General Damages.
38.0 Costs; and
39.0 Such further orders and or other relief as this Honorable Court may grant in the circumstances of the case.”
“The grounds of the application are:
c. That the Plaintiff's claim is scandalous, frivolous or vexatious.
Striking out pleadings and indorsements (O.18, r.18)
18.- (1) The Court may at any stage of the proceedings order to be struck out or amended any pleading or the indorsement of any writ in the action, or anything in any pleading or in the indorsement, on the ground that–
(a) it discloses no reasonable cause of action or defence, as the case may be; or
(b) it is scandalous, frivolous or vexatious; or
(c) it may prejudice, embarrass or delay the fair trial of the action; or
(d) it is otherwise an abuse of the process of the court;
and may order the action to be stayed or dismissed or judgment to be entered accordingly, as the case may be.
(2) No evidence shall be admissible on an application under paragraph (1)(a).
(3) This rule shall, so far as applicable, apply to an originating summons and a petition as if the summons or petition, as the case may be, were a pleading.
“At a glance, this rule gives two basic messages, and both are salutary for the interest of justice and encourage the access to justice which should not be denied by the glib use of summery procedure of pre-emptory striking out. Firstly, the power given under this rule is permissive which is indicated in the word “may” used at the beginning of this rule as opposed to mandatory. It is a “may do” provision contrary to “must do” provision. Secondly, even though the court is satisfied on any of those grounds mentioned in that rule, the proceedings should not necessarily be struck out as the court can, still, order for amendment. In Carl Zeiss Stiftung v Rayner & Keeler Ltd (No 3) [1970] Ch. 506, it was held that the power given to strike out any pleading or any part of a pleading under this rule is not mandatory but permissive and confers a discretionary jurisdiction to be exercised having regard to the quality and all the circumstances relating to the offending plea. MARSACK J.A. giving concurring judgment of the Court of Appeal in Attorney General v Halka [1972] FJLawRp 35; [1972] 18 FLR 210 (3 November 1972) held that:
“Following the decisions cited in the judgments of the Vice President and of the Judge of the Court below I think it is definitely established that the jurisdiction to strike out proceedings under Order 18 Rule 19 should be very sparingly exercised, and only in exceptional cases. It should not be so exercised where legal questions of importance and difficulty are raised”.
“A reasonable cause of action means a cause of action with some chance of success, when only the allegations in the statement of case are considered” Drummond-Jackson v British Medical Association [1970] 1 ALL ER 1094 at 1101, [1970] 1 WLR 688 at 696, CA, per Lord Pearson. See also Republic of Peru v Peruvian Guano Co. [1887] UKLawRpCh 186; (1887) 36 ChD 489 at 495 per Chitty J; Hubbuck & Sons Ltd v Wilkinson, Heywood and Clark Ltd [1898] UKLawRpKQB 176; [1899] 1 QB 86 at 90,91, CA, per Lindley MR; Hanratty v Lord Butler of Saffron Walden (1971) 115 Sol Jo 386, CA.
“The power to strike out is a summary power “which should be exercised only in plain and obvious cases”, where the cause of action was “plainly unsustainable”; Drummond-Jackson at p.1101b; A-G of the Duchy of Lancaster v London and NW Railway Company [1892] UKLawRpCh 134; [1892] 3 Ch. 274 at p.277.”
“It is clear from the authorities that the Court's jurisdiction to strike out on the grounds of no reasonable cause of action is to be used sparingly and only where a cause of action is obviously unsustainable. It was not enough to argue that a case is weak and unlikely to succeed, it must be shown that no cause of action exists (A-G v Shiu Prasad Halka [1972] 18 FLR 210; Bavadra v Attorney-General [1987] 3 PLR 95. The principles applicable were succinctly dealt by Justice Kirby in London v Commonwealth [No 2] [1996] HCA 14; 70 ALJR 541 at 544 - 545. These are worth repeating in full:
1. It is a serious matter to deprive a person of access to the courts of law for it is there that the rule of law is upheld, including against Government and other powerful interests. This is why relief, whether under O 26 r 18 or in the inherent jurisdiction of the Court, is rarely and sparingly provided (General Street Industries Inc v Commissioner for Railways (NSW) [1964] HCA 69; (1964) 112 CLR 125 at 128f; Dyson v Attorney-General [1910] UKLawRpKQB 203; [1911] 1 KB 410 at 418).
2. To secure such relief, the party seeking it must show that it is clear, on the face of the opponent's documents, that the opponent lacks a reasonable cause of action (Munnings v Australian Government Solicitor [1994] HCA 65; (1994) 68 ALJR 169 at 171f, per Dawson J.) or is advancing a claim that is clearly frivolous or vexatious; (Dey v. Victorian Railways Commissioners [1949] HCA 1; (1949) 78 CLR 62 at 91).
3. An opinion of the Court that a case appears weak and such that it is unlikely to succeed is not alone, sufficient to warrant summary termination. (Coe v The Commonwealth [1979] HCA 68; (1979) 53 ALJR 403; (1992) 30 NSWLR 1 at 5-7). Even a weak case is entitled to the time of a court. Experience reaches that the concentration of attention, elaborated evidence and argument and extended time for reflection will sometimes turn an apparently unpromising cause into a successful judgment.
4. Summary relief of the kind provided for by O 26, r 18, for absence of a reasonable cause of action, is not a substitute for proceeding by way of demurrer. (Coe v The Commonwealth[1979] HCA 68; (1979) 53 ALJR 403 at 409). If there is a serious legal question to be determined, it should ordinarily be determined at a trial for the proof of facts may sometimes assist the judicial mind to understand and apply the law that is invoked and to do so in circumstances more conducive to deciding a real case involving actual litigants rather than one determined on imagined or assumed facts.
5. If notwithstanding the defects of pleadings, it appears that a party may have a reasonable cause of action which it has failed to put in proper form, a court will ordinarily allow that party to reframe its pleadings. (Church of Scientology v Woodward [1982] HCA 78; (1980) 154 CLR 25 at 79). A question has arisen as to whether O 26 r 18 applies only part of a pleading. (Northern Land Council v The Commonwealth [1986] HCA 18; (1986) 161 CLR 1 at 8). However, it is unnecessary in this case to consider that question because the Commonwealth's attack was upon the entirety of Mr. Lindon's statement of claim; and
6. The guiding principle is, as stated in O 26, r 18(2), doing what is just. If it is clear that proceedings within the concept of the pleading under scrutiny are doomed to fail, the Court should dismiss the action to protect the defendant from being further troubled, to save the plaintiff from further costs and disappointment and to relieve the Court of the burden of further wasted time which could be devoted to the determination of claims which have legal merit”.
"An abuse of the process of the court arises where its process is used, not in good faith and for proper purposes, but as a means of vexation or oppression or for ulterior purposes, or more simply, where the process is misused. In such a case, even if the pleading or endorsement does not offend any of the other specified grounds for striking out, the facts may show that it constitutes an abuse of the process of the court, and on this ground the court may be justified in striking out the whole pleading or endorsement or any offending part of it. Even where a party strictly complies with the literal terms of the rules of court, yet if he acts with an ulterior motive to the prejudice of the opposite party, he may be guilty of abuse of process, and where subsequent events render what was originally a maintainable action one which becomes inevitably doomed to failure, the action may be dismissed as an abuse of the process of the court."
“36.1 in the incorporation and management of the Second Defendant and the dissolution of the Nakuruvakarua Company Limited without consultation nor the approval of the Beneficiaries;
36.2 in the incorporation and management of the Third Defendant and the dissolution and/or neglect of the Yanuca Trust without consultation nor the approval of the Beneficiaries;
36.3 in having caused and permitted a conflict to arise between their personal interest and duties as trustee and that of the Beneficiaries in the expenditure of trust funds;
36.4 in their neglect and failure to account fully to the beneficiaries for income derived from the utilization of trust funds;
36.5 in the acquisition of assets that did not accurately reflect the interests of the beneficiaries;
36.6 in their failure to act impartially and to act in the interests of all the beneficiaries; and in their failure to provide information and accounts to the beneficiaries concerning the trust fund.
36.7 in their failure to provide information and accounts to the beneficiaries concerning the trust fund.”
L. K. Wickramasekara,
Acting Master of the High Court.
At Suva,
28/02/2024
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