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Motis Pacific Lawyers v Chan Wing (Vanuatu) Ltd [1998] VUSC 11; Civil Case 046 of 1997 (1 May 1998)

IN THE SUPREME COURT OF
THE REPUBLIC OF VANUATU

(Civil Jurisdiction)

CIVIL CASE No.46 OF 1997

IN THE MATTER OF INTENDED ACTION

EN:

MOTIS PACIFIC LAWYERS (A FIRM)
pan>
Intended Plaintiff

class="MsoNoMsoNormal" align="center" style="text-align: center; margin-top: 0; margin-bottom: 0"> AND:

CHAN WING (VANUATU) LIMITED First Intended Defendant

AND:

class="MsoNoMsoNormal" align="center" style="text-align: center; margin-top: 0; margin-bottom: 0"> LAURIE br> Second Intended Defendant

AND:

KAHAN
(A.K.A. LO PUI SIN)
Third Intended Defendant

AND:

LE FLAMINGO LIMITED
Forth Intended Defendant

Coram: Acting Chief Justice, Vincent Lunabek, J.

p class="MsoNoMsoNormal" style="margin-top: 0; margin-bottom: 0"> Counsel: Mr Dudley Aru for the Intendeintiff
Mrs Susan Bothmann Barlow for the Intended nded Defendants

p class="Mss="MsoNormal" align="center" style="text-align: center; margin-top: 0; margin-bottom: 0"> ORAL RS

p class="Mss="MsoNormal" style="margin-top: 0; margin-bottom: 0"> By Summons dated 20th May 1998, the intended Plaintiff sought an injunction restraining all of the abovenamed Defendants by themselves, their servants or agents or howsoever otherwise from continuing or prosecuting or causing to be continued or prosecuted proceedings (including proceedings for enforcement of any judgment obtained in default of appearance or defence) against the Plaintiff or Julian Ronald Moti or Dudley Aru or any partner of the Plaintiff firm in the Supreme Court of Queensland, the Supreme Court of New South Wales and any other Court in the Commonwealth of Australia or elsewhere out of the jurisdiction of this professional services rendered to any or all of the abovenamed Defendants in connection with the following matters:-

1. the share sale agreement October 29, 1996 and made between Samuel Malcolm Guifre (are (as vendor) and the First Defendant (as purchaser) for the acquisition of all of the issued capital of the Fourth Defendant;

2. the Heads of Agreement dated ovember 7, 1996 and made between Ifira Trustees Limited, Sod, South Pacific Stores Limited and the First Defendant for the acquisition by the First Defendant of a majority shareholding in South Pacific Stores Limited;

3. upply Agreement dated November 22, 1996 and made between South Pacific Stores Limitedmited and the First Defendant for the supply by the First Defendant of certain products and service to South Pacific Stores Limited;

5. the Fourth Defendant’s application to the National Bank of Vanuatu for an overdraft facility;

and that the Defendants do not pay to the Plaintiff the costs of and oand occasioned by this application to be taxed.

class="MsoNoMsoNormal" style="margin-top: 0; margin-bottom: 0"> The following reasons are orally provided in Court on the 27th May 1998.

The persuasive authority ferred to this Court during the course of arguments is the case of Societe Nationationale Industrielle Aerospatiale (Appellants) v. Lee Kui Jack and Another (Respondents) [(1987) 1AC 871 (P.C.)].

<

In coming to the decision in this I have to relate some of the arguments in respect of the cthe case of Arospatiale referred to the Court this morning. In that case the Privy Counsel held that it was not right to treat the principles applicable in injunction cases as equivalent to those in forum non convenience cases as developed in Spiliada Maritime Corp v. Consulex Ltd [1986] UKHL 10; (1987) A.C. 460.

The Privy Counsel goes on to say that if the principles between cases where injunction can be granted and cases of forum non convenience were the same it would mean that party could be retrained from proceeding in a foreign court on the sole ground that England was the Natural forum. That could not be right because it would lead to the conclusion that in a case where there was simply a difference of view between the English court and the foreign court as to which was the natural forum the English court could arrogate to itself by the grant of an injunction the power to resolve the dispute. Such a conclusion would be inconsistent with Comity and disregard the fundamental requirement that an injunction will only be granted where the ends of justice so require. And the cases where injunctions can be granted or may be granted are exceptional only.

The Privy Counsel in the case of Aerospatiale held further that where a remedy weailable both in EnglaEngland as the natural forum and in foreign court the English court would in general only restraint the plaintiff from pursuing proceedings in the foreign court if the pursuit would be vexatious or oppressive. And the English court must be the natural forum for the action and it must take account of the injustice to the defendant if the plaintiff is allowed to pursue the foreign proceedings and also the injustice to the plaintiff if he is allowed to do so.

In the case of Aerospatiale the concept of vexatious and frivolous conduct was in fact given a wide interpretation so as to encompass the conduct of foreign proceedings which would cause injustice or serious injustice if the need for caution is to be given its proper weight.

Thus an injunction may be granted to a plaintiff to prevent ther party from asserting a cg a claim abroad to which the plaintiff has a defence. Further the defendant could be restrained from instituting or continuing proceedings in a foreign court if a proper case of injustice were made out without any declaration of right. This is because injunction of this kind can be sought by defendants who are not seeking to assert any independent cause of action but simply right not to be sued in a foreign court. This is the critical point for these present proceedings.

I went through the Court papers this morning just to understand how those proceedings ed. The intended Plai Plaintiff initiated an action against the Defendants by filing the Writ of Summons in this jurisdiction against the Defendants. The defendants filed their appearance and no defence were filed and in the interim a Notice of Motion was filed. I consider also that the transactions upon which the action was filed in this jurisdiction were the same transactions out of which the First and Second Defendants filed an action in the Queensland Jurisdiction and they appear, thus, as plaintiffs in Queensland. I consider as well that one of the points mentioned this morning by the defence Counsel is that because of the delays in the hearing of the Notice of Motion the defendants filed actions on the basis of same transactions upon which an action was already before this court. I have also consider some persuasive authorities on the point of exception where cases of injunctions can be granted. The cases of British Airways Board v. Laker Airways Limited [1984] UKHL 7; (1985) A. C. 58 and the case of Midland Bank Plc v. Airways Limited (1986) QB 689 are the authority for the proposition that cases where an injunction may be granted to restrain foreign proceedings are exceptional cases.

The case before this Court is also an exceptional case. There are proceedings pending before the Supreme Court of Vanuatu. The action was brought before this Court on the basis of transactions occurring in Vanuatu, involving the laws of Vanuatu between the abovenamed parties. Before this Court, the Plaintiff filed the Writ of Summons with his statement of claim against the Defendant. Each of the Defendants filed their appearance before this Court but no defence was filed on behalf of the Defendants. I take into consideration that the Defence Counsel filed a Notice of Motion which is a pre-requisite to the filing of a defence and, yet, I am also informed that the abovenamed First and Second Defendants issued legal actions before the Supreme Court of Queensland, as Plaintiffs, against the intended Plaintiff in Civil Case No.46 of 1997 pending before this Court, on the basis of the same transactions upon which legal actions were brought against them before this Court. The transactions were occurring in Vanuatu, involving the laws of Vanuatu and between the same abovenamed First and Second Defendants. The intended Plaintiff in Civil Case No.46 of 1997 pending before this Court, who became the Defendant in the Queensland proceedings, on the basis of the same transactions occurring in Vanuatu involving Vanuatu laws did not file an appearance and default judgment were obtained against him. The default judgment was then set aside and he was required to file his appearance and defence.

It is on that basis that t morning I was urged upon to consider the urgency of hearing the Summons which isch is the subject of this hearing.

is case is really a difficult case and I must confess that it is really a headache inhe in respect of any type of considerations to be made by the Court since one of the parties, and in this case, the intended Plaintiff was put on unconscionable and unjust position and at great expenses (see Affidavit of Julian Ronald Moti, filed on 22nd May 1998 in support thereof).

In this case, the Plaintiff filed an action against the Defendants in Civil Case No.46 of 1997. Each of the Defendants filed their appearance. Pending the hearing before this Court of that motion, the Defendants filed legal actions in Queensland jurisdiction against the Plaintiff on the same transactions occurring in Vanuatu, involving Vanuatu laws and between the same parties.

On the basis of these considerations, I come to the conclusion that this Cour entertain the applicpplication. In my view, an injunction may be granted to the intended Plaintiff in Civil Case No.46 of 1997 pending before this Court to prevent the Defendants from asserting a claim abroad to which the Plaintiff may have a defence. Further the Defendants could be restrained from instituting or continuing proceedings in a foreign Court if a proper case of injustice were made out without any declaration of right. I find that there is a case of injustice against the intended Plaintiff in Civil case No.46 of 1997 and that Vanuatu is also the National forum [see Societe Nationale Industrielle Aerospatiale v. Lee Kui Jack & Others (1987) 1AC 871 (PC)].

On the basis of th considerations, I am of the view that the Orders sought should be granted in the the terms sought in the Summons and with a specific direction that the Notice of Motion filed by the Respondent’s Counsel be given an urgent consideration and as such it is directed as an addition to this Order that the Notice of Motion will be heard by this Court on 22nd of June 1998 at 9.00am o’clock.

DATED AT PORT-VILA, this ......... DAY of MAY 1998

lass="Mss="MsoNormal" align="center" style="text-align: center; margin-top: 0; margin-bottom: 0"> BY THE COURT

p class="Mss="MsoNormal" align="center" style="text-align: center; margin-top: 0; margin-bottom: 0"> Vincenabek, J.
Acting Chief Justice


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