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Aruhuri v Vanuatu National Provident Fund Board [2001] VUSC 97; Civil Case 095 of 1999 (28 August 2001)

IN THE SUPREME COURT Oan>

THE REPUBLIC OF VANUATU

HELD AT PORT VILA

(Civil Jurisdiction)

BETWEEN:

class="MsoNoMsoNormal" align="center" style="text-align: center; margin-top: 1; margin-bottom: 1"> PAULA ARUHURI, NANCY FAY MABON and OTHERS

Plaintiffs

AND:

VANUATU NATIONAL PROVIDENT FUND BOARD

Defendant

JUDGMENT

The Vanuatu National Provident d was created by statute; Cap 189. Its purpose is “to proviprovide for contributions to and the payment of benefits out of the Fund, and the matters connected therewith and incidental thereto”.

class="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> In late 1997 a group of members of the were worried their money was not safe. In December they saey saw the then chairman, Denis Savoie and the general manager, Mrs. Ietonga Aiong seeking return of their monies. A “Micro Loan Scheme” (MLS) was introduced by which members could “withdraw” or “borrow” a proportion of their contributions. There was no power in the Act to operate such a scheme. However, by late December the demand for ‘micro loans’ or return of contributions had rapidly reached levels which tested the ability of the Fund’s staff to process applications and the Fund’s liquidity to pay out the money.

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Presso process applications continued to mount in early January 1998. The Fund took variouarious actions for the protection of its building and staff. However, by the morning of 12th January that pressure was immense. A large crowd gathered outside the Fund’s Port Vila building. Tents had been erected back and front to distribute forms and receive completed ones. There was a police, Vanuatu Mobile Force (VMF) and private security presence. Staff were at work in the building. In Luganville a similar scene was developing outside the Fund’s office there.

A minor incident occurt the building in Port Vila which apparently angered the crowd. Within moments the Fund’s building was pelted with rocks, stones and other missiles. The staff outside in the tents withdrew into the building. Missiles flew into the building, windows were smashed, there was flying glass. The crowd was angry and abusive. Staff moved for safety into an internal room on the second floor. It had no windows or air conditioning.

After some time an attempt was madget staff out of the building, but that failed. A second atnd attempt was successful and staff were either taken home in buses, or made their own way home. Many, as a result of threats, stayed with relatives and friends.

The rioting sprea continued and other buildings were attacked and much damage was caused. A stat state of national emergency was declared. The Fund’s board and general manager were replaced. The decision was made to pay out and members and staff were required to return to work on 14 January. They cleaned up the glass and other debris in the offices. They then worked long hours in the ensuing weeks to make the pay-outs. It was days or weeks before broken glass was removed from the windows and panes replaced.

The nineteen plaintiffs were employees of the defendant, the Fund, at the time of these events. Their action is brought primarily under four heads.

A. nbsp; &nbbp;&nnbp;& &nbbsp; &nbp; &nbp; Statutory Duties

&nbs>

p cl

1. &nsp; & p;&nbp; &nsp; &&nbp;;&nbpp; &nnsp; p; pa>Employment Act (Cap 160)

: 1">

(a) Section 22(2) “The limit of hours of work provided for inor in subsection (1) (44 hours or 6 days in any week) may be exceeded:-

(a)…in case of an emergency, but only so far as may bessary to avoid serious ints interference with the ordinary working of the undertaking;

(b)…

Provided that the working hours shall not exceeded 56 in a week on the average.”

(b) Section 45(1) – “Every employer shall take appropriate steps as soos soon as possible to remedy any working conditions which may be dangerous for the health or welfare of his employees.”

Breach these statutory duties were alleged.

2. &bsp; ;&nbssp;&nbp; &nsp; ;&nbpp; &nnsp;&&nsp; &nbp; Health and Safety at Work Act (Cap 195)

Section 2 (1) states “ It shall e the duty of every employer to ensure, so far as is reasoneasonably practicable, the health, safety and welfare at work of all his employees (See s 20 (1)).

Breaches of these statutory duties were alleged.

lang="EN-GB" style="font-size: 12.0pt">B. &nnsp;&&nsp;;&nspp;&nssp;&nsp; &nbsp : 1">

It was an implied term of each of the plaintiff’s contracts of employment thnt that the Fund would ensure their health, safety and welfare at work.

Breaches of that implied term were alleged.

C. nbsp; p; &nbp; &nbssp; &nbssp; Common /span class="Mso="MsoBodyTBodyText" ext" stylestyle="mar="margin-tgin-top: 1op: 1; mar; margin-bgin-bottom: 1">

It was alleged the Fund negligently failed to remedy working conditions which were dangerous to the health, safety and welfare of each plaintiff.

Fuller detail of what was claimethe original Writ of Summons (filed on 29 September 1999) w99) was given in the Replies, (filed on 5 February and 12 March 2001) to requests for further and better particulars.

A defence was filed on 31 May 2000. Liability under alls was denied and contributory negligence and volenti enti non fit iniuria pleaded. During the course of the interlocutory proceedings some plaintiffs abandoned their claims, whilst others joined the action.

I will consider each of t heads of claim in the above order.

ass="MsoBoMsoBodyText" style="text-indent: -18.0pt; margin-left: 18.0pt; margin-top: 1; margin-bottom: 1"> A. nbsp; p; s Statutory Duties

1. ;&nspp;&nssp; Employmentyment Act

&n;"> & &nsp; &nbssp; pan>Section 22(2)

&nt">

The defendant argued as a preliminary point that the Fund is a pubuthority and therefore sect section 27(b) applies.

Section 27(b) states “ Nothing in sections 22 to 26 inclusiall apply to or in relationation to–

(a)…

(b) &nbbsp; &nbbsp; &nbp; &nbp; of iceshich stch staff is engaged in connection with the administration of public authority,

: 1"> (c) &nnsp;&&nsp;;&nspp;&nssp;&nsp; …”<

&n/span

At paragraph 2(b) of closing submissions the defence set out their arguments in support. Saunders third edition defines a “Public Authority as a person or administrative body entrusted with functions to perform for the benefit of the public and not for private profit…”, the meaning varying according to the statutory context.

In the High Court of Australia in Renmark Hv- Federal Commission of Taxation [1949] HCA 7; (1949) 79 CLR 10 at page page 18 Rich J stated that to be a Public Authority the body “should carry on some undertaking of a public nature for the benefit of the community or of some section or geographical section of the community and that it should have some government authority to do so”.

The Defendant argued the Fu was established and empowered pursuant to an Act and for the purposes stated, in , in effect to provide superannuation benefits for employees on retirement. The Minister can make Regulations and appoint the Board and its chairman; it is a statutory authority and the Leadership Code Act applies.

Further, the Ombudsman Act (No 27 of 1998), defines “P Authority” as “any body, authority or instrumentalittality (corporate or unincorporate);

(a) &nbsp &nbbp;&nnbp;& &nbbsp; &nbp; &nbp;

(b) &nnsp;&&nsp;;&nspp; s in which the Government has any interest;”.

Whilst that is, of course, a efinition for the purposes of the Ombudsman Act, it is a us a useful reference.

p class="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> The plaintiff contended the Fund wasa public authority. There is no definition in the Employmenoyment Act, the VNPF Act nor the Interpretation Act. Dicta in Bradford Corporation –v- Myers [1919] A.C. 242 was cited. At page 247 Lord Buckmaster L.C. stated “It is because the act is one which is …[in] the exercise of a public authority. I regard these latter words as meaning a duty owed to all the public alike or an authority exercised impartially with regards to all the public. It assumes that there are duties and authorities which are not public, and that in the exercise or discharge of such duties or authorities this protection does not apply. “(The case itself concerned the application of the Public Authorities Protection Act 1893)

Sn 27 (b) says “ engaged in connection with the administration of public authority”. Ty”. There is no indefinite article before the words public authority. Was this a draftsmans’ error or was something wider intended than the acts of a public authority?

Section 76(1) states “ Except as provided in subsection (3) the provisions of this Act shall apply in relation to public servants and the Government and any other public authority…”

In my judgment sn 27(b) was intended to apply to the administration of a public authority.

I accept the definition of a public authority as set out in the Ombudsman Act. (That is the same definition in esin essence as that under the repealed Ombudsman Act, No. 14 of 1995). I am satisfied the Vanuatu National Provident Fund, by the provisions of the Act setting it up, describing its functions, defining its control and appointments and empowering it to carry out its functions, is a public authority.

In these circumstances section 27 (b) Employment Act applies and any claim there mightnder section 22 must must fail.

(b) &nbssp;&nnsp;& Sect>Section 45(1) Employment Act./span>

I will consider this section later

2. &nsp; & span>Section 2 Health and Safety at Work Act (Cap 195)

In considering this head of claim counsel for the defendant did not refer to Section 20. Counsel for the plaintiff acknowledged it existence “en passant”.

Section 20 (1) states “ Nothing in this Actl give risk (sic) to a right of action in civil proceproceedings”. The word “risk” is apparently a typographical error and should read “rise”.

The position is, as the plaintiffs’ counsel points out, curious when the wording of subsection (2) is considered – “Unless otherwise provided for in the regulations, breach of a duty imposed by health and safety regulations shall, so far as it causes damage, be actionable”.

ass="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> Whatever is the meaning of subsection (2bsection (1) is clear. This head of action is brought under section 2 and must fail. I can see no interpretation or application of subsection (2) to these proceedings which would save it.

lass="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> [It is further pertinent to note that nr counsel argued whether or not the breach of any statutoryutory duty imposed by the Employment Act or the Health and Safety at Work Act gave rise to an action in tort.]

B.&n;"> & &nsp; &nbssp; &nbs Contractual Duties.

Paragraph 11 of the Statement of Claim averred eacintiff had a written letter of appointment signed on on behalf of the defendant, setting out the terms and conditions of each plaintiff’s employment. This was admitted in the defence.

Paragraph 12 averred it was an implied conditi each contract that the defendant would “at all times take all necessary steps to ensure the health, safety and welfare at work” of the plaintiffs. The defence did not admit this. Any breach and the consequences of such breach were denied.

On 12 March 2001 a “ Reply to further and better particulars of paragraph 12 sought by the defendant” was filed. The Reply, Paragraph 6, stated

“(a) Thendant’s duty to prov provide, supervise and maintain a safe system of work for the plaintiffs.

> (b) ;&nbssp; &nsp; &nbs; &nbbp;&n p; The plae plaintiffs repeat and rely upon the Particulars provided at paragraphs 1 (a) and 3 (a) above.

(c) &nbssp;&nnbsp;&nsp; &nsp; &nbssp; &&nsp;;&nsp; The plafstiffs rely upon the particulars provided in respect of paragraph 1 (d) above.”

nbsp;

Paragraph 3 (a) stated,

“The plaintiff’s (sic), repeat and rely upon the Particulars provided in d in relation to paragraph 1 (a) above.”

Paragraph 1(a) – (d) stated,

lass="MsoBoMsoBodyText" style="text-indent: -36.0pt; margin-left: 108.0pt; margin-top: 1; margin-bottom: 1"> 1(a)(i) Failure to ensure that any or any approprsteps taken to ensure that the Defendant’s offices in Port Vila and Luganville wlle were sere safely secured prior to requiring the plaintiffs to return to work;

(ii) &nnbsp;; &nsp; &nsp; &&nbp;; / Failure lure to re-o re-locate the plaintiffs to safe working premises until the VNPF building was reasonably safe and secure;

(iii) &nbssp;&nnbsp;&nsp; &nsp; &nbssp; Fpan>Failure to remo remove the broken glass left hanging on the window frames by rubber until in or about late February 1998 oly Ma998;

ass="MsoBodyText" style="text"text-inde-indent: -nt: -36.0p36.0pt; margin-left: 108.0pt; margin-top: 1; margin-bottom: 1"> (iv) &nbssp; &nbssp; Failure ture to secure the broken windows from the elements until in or ut labruar8 or Marc8; (v)  p; &nsp; &nbbsp;

(vi) &nbssp;&nnbsp;&nsp; &nsp; &nbssp; Fpan>Failure to proo provide the plaintiffs with any gloves and/or ot ctive clothing to clean up broken glass and/or debris following the riot;span>

(vii) &nbssp;&nnbsp;&nsp; &nsp; &nbs reilure to obto observe the physical and emotional strain upon the plaintiffs by the Defendant’s requirement that the plaintiffs work ours in e of the plaintiffs’ employment contracts and/or a/or as pros providedvided by s.22 of the Employment Act [CAP 160] amended;

(viii)  p;&nssp; Failure to proo provide, supervise and maintain a safe system of work.

class="Mss="MsoBodyText" style="text-indent: -35.45pt; margin-left: 71.45pt; margin-top: 1; margin-bottom: 1"> (b)&nbs> &nbbsp; &nsp; &nbbp;&nnbp;& &nb Inan>In resperespect of items 1 (a) (i) and 1(a) (ii) above, the appropriate s shoave baken to ring taintiffs turn to work. In respect oect of itef items 1 ms 1 (a) ((a) (iii),iii), (a) (a) (iv),(iv), (a) (v), (a) (vi), (a) ( vii) and (a) (viii), above, immediately following the riot on 12 January 1998.

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(c)&nb"> &nnbsp; &nsp; &nbbp;&nnbp;&&nbp;; &nsp;

ass="dyTexyle="n-lef.0pt; margin-top: 1op: 1; margin-bottom: 1">

(d) &nbp; &nnbsp; &nbssp;&nsp; &nbp; ;&nbpp; (i)&nbs) ; &nnsp;&&nsp;;&nbp; &nbp; The absof glar /oeve clot clotho clean up broken gken glass lass and other debris was dangerous to theo the pla plaintifintiffs;

(ii) &nbbsp;& &nsp; &nsp; &nThp; ailure to evac evacuate the plaintiffs from the defendant’s offices in Vila Luganville within a reasonable period was dangerous to the plaintiffs and and was a factor which caused the physical and emotional ill-health as deposed to by each of the plaintiffs in their affidavits sworn and filed herein and as set out under item 4 (a) below;

(iii)  p;&nssp; &nbsp failure re to to ensure that any or any appropriate steps were taken to ensure that the Defendant’s offices in Port Vid Lugle wefely ed pro quiring ting the plhe plaintiaintiffs tffs to reto return turn to work was dangerous to the plaintiffs and was a factor which caused the physical and emotional ill-health as deposed to by each of the plaintiffs in their affidavits sworn and filed herein and as set out under item4 a) below;

(iv) &nbbsp;&&nsp;;&nsp; &nsp; The failure to locate tate the plaintiffs to safe working premises until the VNPF building was nably and secure was dangerous to the plaintiffs’ health and was a faca factor wtor which hich caused the physical and emotional ill-health as deposed to by each of the plaintiffs in their affidavits sworn and filed herein and as set out item 4 a) below;

(v) &nbbsp; &nsp; &nbbp;&nFap; re to se secure the broken windows from the elements until in or about late February 1998 or early March 1998 was dangerous toplain and red the irconners ineffective duve during ring perioperiods ofds of inte intense heat and caused some of the plaintiffs’ to incur “flu and common colds and as set out in item 4 a) below;

(vi) &nbssp; &nbssp; &nbp; &nbs; &nbbp;&nnbp;& Tpan>The failure to clean the VNPF’s office in Port Vila’s floors within a reasonable perio dang to the plaintiffs an (vii) &nnbsp; &nsp; &nbbp;&nnbp;& Thp;requiremeirement that the plaintiffs work in excess of their contractu/span>ours and/or the hours prescribed bbed by s.22 of the Employment Act [CAP 160] as amended was dangerous to the plaintiffs and caused the physical and emotional ill-health as deposed to by each of the plaintiff’s affidavits sworn and filed herein.

The complaints made under this head are the same as those made undetion 45 Employment Act, whi, which states “ Every employer shall take appropriate steps as soon as possible to remedy any working conditions which may be dangerous for the health or welfare of his employees.” There is no statutory exemption for a public authority.

The complaints can be divided into three groups concerning-

(X) &nsp; & &nbbsp; &nbp; &nbp; s

(Y) & p; &nsp; &nsp; ;&nbpp; / Tpan>The Physical Wcal Working Conditions Upon Return To Woran> (Z) &&nsp;;&nspp;&nssp; p; The Alleged Excessive Hours.

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It must be remembered when considering these that ensuring “the hehe health, safety and welfare at work” of employees is a wider obligation than “remedying any working conditions which may be dangerous for the health or welfare” of employees.

It was not contested in evidence nor in closing submissions that there was in the contract of employment of each plaintiff an implied condition that the defendant would “at all times take all necessary steps to ensure the health, safety and welfare at work” of each plaintiff. There is the statutory obligation to do so “as far as is reasonably practicable”. Such an implied term meets the criteria for an implied contractual term and is generally accepted.

ass="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> I find there uch a term m in the contract of each of these plaintiffs. I find that that obligation upon the defendant be read as being as far as is reasonably practicable. I do not consider such an implied term could place upon the defendant an absolute duty to ensure the health, safety and welfare of the plaintiffs, whatever the circumstances.

class="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> I now consider each complaint in turn:-

X &nnbsp; The Timthe Riot Iiot Itself.

&

I will consider this subhead when dealing with the “Common Law Duty” section.

Y & p; eu>Thsical Work Working Conditions Upon Return.

I will deal later with the evidence of the witnesses.indings are as follows.

Most of the plaintiffs returned to work as required, two days after the riot. In Port Vila there is no dispute most of the windows were shattered, there was broken glass everywhere, pieces of glass hanging from frames, rocks and other missiles were lying about and office furniture and equipment was in disarray.

In ville the picture was different. There were one or two broken panes and a door had bead been forced a few days earlier.

It is not disputed that staff in Port Vila were required to clean up their own work area and occasionally that of others. No gloves or special equipment was provided. Nor is it disputed that broken glass was hanging from the windows. The photographs shew the picture. Whilst replacement glass was being obtained, there was no attempt in Port Vila to board up windows, have broken window glass removed etc.

There was the very real threat of further violenhere was a national emergency and the government had temporarily assumed executive power. The continuing focus of public discontent, or at the least a large section of the public, Fund Members, was the Fund itself, its building and staff. Much heat had been drawn from that discontent by the promise to pay out everyone and the replacement of the Fund’s board and general manager. The very fact of the pay out meant large numbers of people would return to the Fund building.

With the state of national emergency came roadblocks, public security measures and a greater presence of VMF and police on the streets. However, there is no evidence of any security in or around the Funds building, following the staff’s return to work, which could deal with or protect the staff from anything more than a minor disturbance. Many were bussed to work, some bussed home again as well. Many for a few or several days had moved out of their own houses, to those of friends or relatives in view of the threats they received. In Luganville Joel Tovor had moved out of his house and returned with his family to his village.

I find the defendant did fail in its duty under section 45 he implied conditions as alas alleged in paragraphs 1 (a) (i) and (ii). They further failed under paragraph 1 (a) (iii) – (vi) inclusive and (viii).

Y. &nbsp &nbbp;&nnbp;& &nbbsp; &nbp; &nbp; pan>The Physical Working Conditions- Causation and Injury, Loss and Damages.

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There is simply no nce of any further disturbance outside the Fund offices in Port Vila or Luganville le after the staff’s return to work. The lack of adequate security, as found, has caused no loss to the plaintiffs. It must be remembered that within the state of emergency there were police and VMF road blocks near the Fund’s building and generally a far greater presence on the streets of security forces.

lass="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> Similarly there is no evidence of any injuries, damage to clothing or oproperty as a result of thef the failures found under paragraph 1 (a) (iii)-(vi) and (viii).

I accept that many stafe the subject of real and frightening threats; several had to move house, theirtheir families were affected. Whether or not this would give rise to a claim need not be decided. It is not pleaded.

I will deal later with the medevidence concerning each plaintiff.

Accordingly under head Y, I find the plaintiffs’ claim must fail. I have nond it necessary to de decide whether or not the breach of the statutory obligation under section 45 gives rise to an action in damages.

Z. & &nsp; &nbssp; &nbssp; The Alleged Excessive Hours.

Subparagraph (vii) alleges the defendant failo observe the physical and emotional strain upon the plaintiffs by the Defendant’s requirement that the plaintiffs work for hours in excess of the plaintiff’s employment contracts and/or as provided by s.22 of the Employment Act [Cap 160] amended”.

p class="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> I have considered section 22 above. Paragraph 4.3 of the office Manual, Conditions of Service, Hours of Work ( page 147, agreed bundle) states the hours of work as 35 per week, 7-30am to 4-30pm with a two hour lunch break from 11-30am to 1.30 p.m. Whilst the obligation on the Fund not to require employees to work excessive hours has not been pleaded as a specific implied term, such an obligation is part of the implied term of ensuring the “health, safety and welfare” of each plaintiff.

The Manual’s provisions for “Overtime” are set out at page 150 of the Agrundle. It sets out the authorities required and rates of remuneration.

p class="Mss="MsoBodyText" style="margin-top: 1; margin-bottom: 1"> Most of thintiffs in their affidavits alleged the working of extremely long and unsociable hour hours. When their time sheets were put to them in cross-examination there was a modification of their claims, in some cases a radical modification. The actual hours of work varied immensely, some plaintiffs left the Funds’ employ after a few days or weeks, others took days off whilst others did work long hours.

Having considered each plaintiff’s time card and whilst I acknow most worked very hard, I , I cannot say the hours worked, given the circumstances, were dangerous to the health or welfare of the employees nor were inherently excessive. With a few exceptions they would not have breached section 22 (2) proviso (b) Employment Act, had it applied.

The only evidence from the plaintiffs of complaints to the defendelated to the lack of partiparticular computer equipment and comparative overtime rates, and the letter of 6 May 1998. That letter (page 46 B agreed bundle) blamed the original board and general manager for the riot, complained of the lack of staff security during and after the riot and demanded compensation of Vatu 500,000 each for Port Vila staff and Vatu 200,000 each for Luganville staff. The reference to working excessive hours was “…from 7-30 am to midnight daily in the first week and up to at least 1800 hours in the following week. They had to work on weekends by which they were deprived the normalcy of spending reasonable time with their families.”

class="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> By the date of that letter, the complabout hours worked related to the claim for compensation, ann, and not about lessening them. Doubtless the plaintiffs were more tired than usual after work. However, it cannot be successfully alleged the defendant failed to observe (and presumably act to obviate by reduction of working hours) the physical and emotional strain caused by the required hours of work when no complaint was made and the hours worked, as I have found them, were not excessive.

I will deal latr this and other heads with the evidence concerning the “physical and emotional straistrain” upon the plaintiff.

Accordingly I reject the claim under 1 (a) vii.

C bsp; &nbsp &nbup;

lass="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> In the statement of claim the plaintiffs say the defendant owed each “a of care to take any or allr all appropriate steps to remedy any working conditions which were dangerous to the health, safety and welfare of each of the Plaintiffs”. The defendant did not challenge the existence of such a duty of care. A breach of that duty is alleged for negligently or carelessly failing to take any or all appropriate steps to remedy the working conditions “which were dangerous to the health, safety and welfare of each of the plaintiffs as a consequence of the riot.”

class="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> The particulars allege,

lass="MsoBoMsoBodyText" style="text-indent: -19.5pt; margin-left: 55.5pt; margin-top: 1; margin-bottom: 1"> (a) &nbs; &nbbsp; it fail failed to evacuate the plaintiffs from the defendant’s offices in Port Vila and Luganville on the riot date within a reasonable time period;

(b) it failed to ensurensure that any or all appropriate steps were taken to ensure that the defendant’s officers in Port Vila and Luganville were safely secured prior to requiring thintif retu work;

>

(c) &nbssp; ipan>it failed to observe the physical and emotional strain upon the plaintiffs by its requirement the plaintiffs work for hours in excess of the plaintiffs employment contracts and/or d/or as provided in section 22 of the Employment Act (Cap 160) as amended.”

The claims set out at (b) and (c) must fail for the reason set out above at and B-Z.

class="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> I consider (a). This necessarily links with parts A.1.b, section 45(1) Employment Act and B-X “ The Time of the Riot.”

Section 45 (1) requires the “taking of appropriate steps as soon as possible to remedy” conditions. Paragraph 12 of the Statement of Claim (as expanded at 1a and 1d) speaks of a breach of the implied term by failure to ensure health, safety and welfare “as a consequence of the riot” Paragraph 15, under the “Common Law Duties” Section talks of taking “appropriate steps to remedy” working conditions., And paragraph 16 alleges a breach by negligently failing to take steps to remedy the working conditions,… ‘as a consequence of the riot”

This is somewhat curiou wording for the formulation of the claims. The sense of all three heads of claim aaim appears to be a failure to remedy the working conditions, (i.e. being besieged by rioters), by failing to evacuate rather than an allegation of failing to make plans for the staff should their safety be threatened. The defendant took up this point at paragraph 6 (c) of the written closing submissions.

The plaintiffs, in their pleadings, have not alleged the defendant was responsfor the riot. (Closinlosing written submissions appear to come close but I disregard that). However, the plaintiffs do state (Reply to submissions dated 29 January 2001) at paragraph 3 (b)- “Negligent failure to evacuate?

p class="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> “The defenknew or should have known of the public unrest in the days immediately preceding 12th January 1998 and the defendant was negligent in that-

(i) &nbp; &nnbsp; &nbssp;&nsp; &nbp; ;&nbpp; &nnsp;& sp; itan>it failed to ensure that it had in place an adequate evacuation plan for the plaintiffs should the need arise;

(ii) &nbp; &nnbp;&&nbp;;&nbpp; &nsp;  p; s it left left the plaintiffs in an inadequate room…for approximately three hours”

1"> &nt"> It is not in issue that tension s rising in the early days of January 1998 and that there were were major security concerns. By the nature of the “ Micro Loan Scheme” and its widening to all members it was inevitable the Fund, its building and staff would become the focus of a large number of people (the members) seeking return of their money. That was against the back ground of the fear (well founded or not) that monies had been wrongly dissipated and there might not be enough to pay back all the members.

The mounting tension was being discussed by the Board and was clearly in the minds of the Chairman and general manager. Police and VMF assistance was obtained, complaint was made about the adequacy of police action, a Court order was obtained and private security firms were engaged.

Whilst a full scale riot might not have been forseen, clear the defendant foresaw the high risk of seriousrious civil disturbance and the fact that that disturbance would be focused on its building and its staff. In the few days before the 12th January both in Port Vila and Luganville staff were working “flat –out” to distribute and process forms. Tents were erected outside the Vila building to facilitate this. Members seeking repayment were becoming demanding, abusive and angry towards the Fund’s staff who were dealing with them.

However, care must be taken to ensure findings are not made “with the benefit of hindsight”. I find it was reasonably forseeable that a serious disturbance could occur and that the focus of that disturbance would be the Fund’s building and its staff. The location of the Funds’ building was known to all, and the Fund’s staff were easily identifiable by their uniforms.

The Fund took the measures set out above. They were clearly aimed at securitside and around the building both in Port Vila and Luganville. There is no evidence of any special instruction issued to staff as to what to do if a disturbance should break out. There was no prior identification of anyone (staff or security officer) in the building who would be in charge of and responsible for staff, where they should go, what they should do, how they would be protected and then evacuated from the building. In particular, for the purposes of evacuation and concealing identity how staff should dress. The simple expedient of instructing staff to go to and from work in ordinary clothes and change at work would have assisted and meant every member of staff had a set of ordinary clothes at work.

p class="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> In the event it was the quick thinking and courage of security officers Nato Tawia and Willie Kaloris that saved the plaintiffs from physical injury, (save for Maxime Charley).

I find that in the unusual circumes of this case it was forseeable that the “working conditinditions” of these plaintiffs could become dangerous and they did. Whilst the Fund was not in a position to remedy the conditions as such by stopping the riot they were in a position to reduce or abate the effects of the riot upon the staff by the prior formulation and promulgation to staff of instructions and a plan as to what to do. This they failed to do. The fact there would be and were police and VMF outside the building to deal with disturbances and some security officers outside or inside did not mean the Fund could leave the matter there.

I have not heard evidence from Willie Kaloris. The evidence of Nato Tawia, is that he attended voluntarily at the building after hearing about the riot. His security firm’s contract was in fact for night time from 6p.m. to 6 a.m. Immediately upon arrival he advised evacuation of the staff. He considered a helicopter but rejected the idea. “ I then instructed that other security officers and VMF officers for us to remove the staff to the strongroom of the building.

“Upon my instructions, we ushered all the employees to the strongroom.” He ordered the power to be switched off to prevent fire.

Nato Tawia was on the island of Ifira when he heard of the rioting. That meanshe defendant’s evidence e there was no direction to staff for their safety from when the riot started for the time it took for news to reach him and for him to reach the building.

It is pertinent to note that most staff des the general manager as already being in the strong room om when they arrived there.

Tawia helped escort some loyees out of the building. A hole was cut in the wire to do this. His estimation wasn was that staff were in the strong room for about two hours before evacuation.

In cross-examination he said it was his decision to evacuate staff.he Court he said, “I got noot no instructions as to who was in overall charge. It was me and one of the police officers who decided to remove them.” He was present when some staff tried to leave but couldn’t. He said “Many staff put T shirts over their uniforms. Many had turned their shirt (inside out). The riot was still going at 12. There were still staff inside… From my experience I decided we better get the staff up to the storeroom.”

This description of events coincides with the picture painted by the plaintiffs of much attention been given toen to looking after the building but a failure for minds to be directed towards the safety and evacuation of staff, generally and should a disturbance break out.

The room the staff were taken to was secure from the rocks and missiles. However there were no windows, no air conditioning or ventilation and it was crowded. They were in there for a considerable time, knowing there was a riot going on outside and that it was partly directed at them. Prayers were said. One attempt was made to evacuate them, but that failed. Several plaintiffs said that as soon as the crowd saw their (VNPF) uniforms the missiles and anger were directed at them and they had to go back.

Some staff members escaped through the wire, some escaped and hahide immediately, most were were eventually led out and buses obtained and they were sent home.

All plaintiffs descrhe whole incident as terrifying and frightening. Several feared for their liveslives. I accept that evidence. There would have been a short time of fear after the riot started until any prearranged plan could have been put into action. However, I find the failure to issue contingency instructions and have any plan available greatly contributed to the measure of fear and fright felt and the duration of it. Whilst no employee (save Maxime Charley) was physically hurt and no specific sum is claimed under these heads, I find the plaintiffs are entitled to damages for the consequences of the defendant’s failures as set out above. I award those damages for breach of the implied contractual term and common law duty.

I accept the evidence of Maxime Charley concerning the injuries he received (left thigh hit by a missile and right elbow by glass). There is no evidence of any long term effects from them.

Time estimates vary as to long the riot went on for and how long the employees were trapped in the buildinilding. In circumstances such as these that is not surprising. I find it was between two and three hours. There must be some allowance for the fact that even with a plan there would have been a period before it could be put into action.

I have considered each plaf’s case, there are factors in each for increasing and decr decreasing the amount. I find the correct course is to award the same fixed sum to each plaintiff who was in Port Vila. I now consider the position in Luganville.

LUGANVILLE

class="Mss="MsoBodyText" style="margin-top: 1; margin-bottom: 1"> The employees at the defendant’s Lugan office, Joel Tovor, William Vira and Jephlyne Nasse were subject to the same work pressure before, during and after 12th January as their colleagues in Port Vila. There was a similar pattern of increasing tension and gathering crowds up to and on 12th January.

The security of the staff at Luganville was not ever consid Dinh Van Than accepted thid this in evidence and nowhere is there any reference to it in those Board Minutes that are still available.

Luganville is much smaller than Port Vila. There were only three staff there. For these reasons the individual pressure upon these plaintiffs and their feeling of isolation and vulnerability must have been greater. They each describe the aggressive and abusive treatment they received from Fund members in those days. Their houses and families were subject to threats as well.

Major Aru and Inspector Boe gave evidence of the request the Fund mor security assistance and and what action they took. It is pertinent to note here, though it is applicable throughout these whole proceedings, that I have not heard evidence form Denis Savoie or Ietonga Aiong, respectively the Board chairman and general manager at the time. Denis Savoie was in Luganville on 12th January.

class="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> News of the in Port Vila reached Luganville about the middle of the day. There was a crowd of f somewhere between 500 and 800 people, first in Unity Park and later around the Fund’s office. Tension was high, people were demanding money, there were drunks. The crowd started to disperse later in the afternoon, and up to that time no damage had been done to the building. A window was broken by a stone in the later evening, and it was boarded up.

It must be to the credit of or Aru and Inspect Boe that no major disturbance took placeplace, and only one or two windows were broken. Major Aru give evidence of the patrols he sent out to look after the staff homes and the Fund building although this did not stop the threats and abuse and the need to temporarily move home.

There is disagreement between the plaintiffs and the defts on some matters, e.g. whg. when the tent was set up behind the premises, exactly how many windows were broken. In the light of my finding these are not of material relevance. This must not be taken as disguising the fact that for the three Fund employees in Luganville this was a frightening and then a tiring time. It should have been plain to the Board members that the same tensions and risks were building in Luganville as were building in Port Vila. It was clear to Denis Savoie by 9th January that assistance was required, this was when he contacted Major Aru. Denis Savoie was alerted on 12th January to what was happening, yet he spent most of the day away from the building and the staff.

It is probably through a mixture of good fortune and the skill of Major Aru and Inspector Boe that the staff in Luganville were not subject on 12 January to the same fate as their colleagues in Port Vila. However, there was a period when they were in the building, with a hostile crowd outside, there was no senior managerial directive or plan, no contingency plan for their evacuation, indeed they were virtually on their own. In these circumstances, an award of damages should be made, albeit not as great as for those in Port Vila.

p class="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> CONTRIBUTORY NENCE and VOLENTI NON FIT INIURIA

Contributory negligence and volenti non fit injuria have been pleaded in thence. I can find no e evidence to support either contention. This pleading might well be regarded by the plaintiffs as insulting.

In the days before the riot the plaintiffs continued to work and work hard in an atmosphere of gathering hostility. Despite the fact that there was a strong feeling, (whether or not with real foundation) that the whole circumstance had come about as a result of the actions of the senior management and one or more members of the Board of the defendant, they continued working in buildings that were almost besieged. Some of their number went out to tents at the edge of the crowd to deal with applications.

They were without direction and reasonable personal proon for a substantial period at the start of the riot.riot. They were in an airless strong room for 2 to 3 hours, knowing there was a hostile crowd outside and that police and VMF efforts were not adequate. There was an unsuccessful attempt to leave. Their uniforms and their jobs made them targets. Some later suffered threats and had to move home.

THE WITNESSES

p class="MsoBodyText" style="margin-top: 1; margin-bottom: tom: 1"> I willider the evidence of the plaintiffs’ and defendant’s witnesses in turn.

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&nbsp &nbssp; &nsp; &nbbp;&nnbsp; &nbbsp; p; The Plaintiffs’ Witnesses.n>: 1"> <

(a)&t;"> &nnsp;&&nsp;;&nspp; s The Plais

At the start of the trial there were twenty plaintiffs. Nineteen gave evidence. One was overseas.

I have considered the evidence of each plaintiff. With the exception of the matters below I accept the evidence of each plaintiff. I did not find they were trying to do other than tell the truth about what happened as best they could remember.

lass="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> As far as hours worked are concerned and in coming to my findings set out above I have relied upon the time sheets and not the affidavits of the plaintiffs. The affidavits were made many months after these events, without having the time-sheets and the recollections of those times will have been ones of long hours worked and tiredness.

The defence emphasised the fact the plaintiffs were paid above the normal overtime rates and wages received were the most each plaintiff had ever received. The latter fact is not relevant, and in any case it was too unquantifiable a factor to have merit. In evidence it was stated the overtime monies being paid were about 20 % above the norm. It was not specifically the rate being paid that was in issue, it was whether or not the hours were excessive. Such extra payments in any event were in respect of the long hours and hard work. There was no evidence the extra was directed to anything else. The plaintiffs must accept that overtime is paid as a percentage of the wage earned, the higher the wage, the bigger the sum will be for overtime per hour worked.

Many plaintiffs state the Board or some of its membe the first day back at work made a promise of compensmpensation. In the atmosphere prevailing then it is perfectly possible promises of compensation were made in respect of what had happened or to encourage the staff to work hard in the coming months. It was not pleaded and in any case it is not a matter on which the court can or should make a finding.

I heard no evidence from Monica Melve- She was overseas. It is clear from the face of her affidavit she was in the Port Vila building at the time of the riot. I cannot pay regard to that as she was not present for cross-examination. No application was made to dismiss her case specifically. I do not dismiss it, nor make any finding. It would seem sensible to treat her in the same way as the other Port Vila plaintiffs.

p class="MsoBoMsoBodyText" style="text-indent: -36.0pt; margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> &bsp; ;&nbssp;&nbp; &nsp; ;&nbpp; &nnsp;& sp;
The Medical Evidence.

The Court must express concern at the medical evidence adduced for the plaintiffs. The medical report for each plaintiff was of little or no use. Claims were made at paragraph 4 ( re paragraph 10 of the statement of claim) in the Particulars filed by the plaintiff on 12 March. None of the medical reports established a nexus between the wrong suffered and the alleged condition. Many relate to the alleged effects of working excessively long hours, a claim which is rejected. In most cases there is no contemporaneous complaint. The doctors have done little more than act as a record for the memories and ideas of the plaintiffs. In several cases there were pre-existing conditions, and no evidence was forth coming of any exacerbation thereof.

ass="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> I have not examined the instructions giv the doctors. Nor am I aware of their experience of p preparing reports for cases such as these. However, I can find no assistance from the medical reports in discerning whether or not what the plaintiffs suffered on 12 January caused any medical condition and if so its nature and severity.

The defendant has conceded that the events of 12up> January were very frightening and necessarily wou would give rise to upset for some time and bad memories which would fade, but probably not go away. I approached the assessment of the figure for damages on this basis.

(c) p; Other Witnesses

I accept the evidence of Andrew Ngwele. The experifor him must have been very frightening with his wife inside the building.

His evidence illustrates the palso made by other witnesses that many non-VNPF people appe appeared to be able to enter and leave the building with little danger, whereas VNPF staff could not, (paragraph 7 of his affidavit),

class="MsoBoMsoBodyText" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> “I told a security offio go and get my wife outside. I told him that my wife wife was a staff member of VNPF. He came back and told me that she was too scared to come out.”

There was a threat to burn the building. Ngwele went in. He saw the staff “squeezeide the small room” S She at first refused to leave. He told her of the threat to burn the building. She “immediately followed me with other male staff. The male staff took off their uniform shirts. I took off my shirt and gave it to my wife and she wore it over her uniform and we all went down the stairs with the assistance of Mr. Kaloris and out through the back exit door of the building”. They went over the fence and away. On reaching home their housegirl told them of a group of rioters heading that way.

class="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> I also accept the evidence of Tari Kalterekia. He describes clearly thhering tension and pressuressures on staff. The difficulties in being outside the building working at the tents and the fact a crowd was already gathered outside by 7-30 a.m.

The Defendant’s Witnesses.

The majority of the defendant’s affidavits were filed late, and in several cases only days before the trial. This placed the plaintiffs at considerable disadvantage.

There are, in fact, on my findings few areas of relevant, sntial disagreement in the ethe evidence between the witnesses of the plaintiffs and those of the defendants.

Whilst t of the scale that eventuated, covering many commercial premises, might not have beee been forseeable, the high risk of serious civil disturbance was forseeable. It was also forseeable that the focus of that risk would be the Fund, its building and staff. Dinh Van Than felt it would be prudent to be prepared and prevent any problems and secure the safety of staff and the property.

The Board Minutes for vital meetings (5 and 10 January ) are missing. There were alsoor more ad hoc meetineetings over lunch. The available Board Minutes show the fact the defendant was aware of the deteriorating situation and the need for security. There is no record of any discussion re the specific position of the staff and their security nor the making of any directive to formulate contingency plans for their safety.

I acceptrally the evidence of Dinh Van Than. In reality there is nothing contentious in it. Hit. He says the Board was concerned for the staff as well as the building. The Board was disappointed at the competence of the police. The issues came up in the meetings of 2nd January, a lunch meeting on a Saturday after 2nd January, probably 10th, (no minutes) and on 5th and 10th January (minutes missing). Nowhere is there reference to a specific directive or plan concerning the staff. Their thoughts in any event were directed to Port Vila, “we didn’t talk about Luganville, we only talked about Port Vila.”

Esley Charlie, Timothy Noviel, Whitely Kenneth aulon Williams are members of the VMF. Their evidence is not contentious. They described the scene outside and inside the building. Timothy Noviel epitomised the erroneous view, that the situation was secure, in his affidavit, “At all material times, we were very confident that the employees were safe as the VMF were placed around the building and there were other security officers as well. Therefore the rioters never came into the building. The rioters were only throwing stones and other materials at the building.” Kenneth says the “staff were safe in the strongroom”.

class="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> I have dealte with the evidence of Nato Tawia.

class="MsoBoMsoBodyText" style="margin-top: 1; margin-bottom: 1"> I accept the evidence of Major Aru and Robert Boe. I need make no findwere these is a conflict wict with the plaintiffs.

The evidence of William Tari and Meto Chilia deals with theod immediately after the rihe riot and does not bear specifically on my findings.

Joses Kenneth was deputy genmanager at the time. He detailed the concerns about securitcurity and the conversations with the Police and measures taken. He says at the meeting on 10th January “it was recognised that there could be trouble, but no one anticipated the possibility of public rioting. He says after the meeting on 2nd January “ Mr. Willie Kaloris and four other men working under his supervision were contracted on 5th January 1998 to assist with crowd control in processing of members Micro Loan Scheme applications”. The 10th January meeting was for the Police Commissioner to advise on his strategy for controlling members at both offices coming to file applications and receive loans. He accepted staff were very busy through this period. Whilst he says security staff escorted everyone to the strong room he does not say when, or by whom. There is no mention of a plan. Many plaintiffs describe Mr. Kenneth as being in the room when they arrived. When he says management provided T shirts to staff, I prefer the evidence of the plaintiffs in that for the most part they had to make their own arrangements to disguise their uniforms.

He considered thatoris was to give security for the staff”. Mr. Kenneth refers to Kaloris letter of f appointment dated 8 January 1998 (agreed bundle p 303) which speaks of the mutual agreement on the 5 January when “the following points were agreed upon”. There is then nothing more the broadest description of being recruited as a “security officer for the Fund.”

Deputy (now Acting) Commissioner Api Jack described the situation from outside as far as the VMF was concerned. Joshua Bong (currently serving in East Timor) was, he stated, in charge of police and VMF. He did say that in his opinion “the intention of the crowd was to trap the staff.”

He remembered the lunch, referred to by Joses Kenneth, and it was at the Park Royal, “al, “it was a Saturday or Sunday morning, Saturday morning,”. I accept his evidence.

I acthe evidence of Mark Bebe. He described the great difficulties in paying the monies oies out after the government’s instructions to do so. He paid tribute to how hard the staff worked “to fulfil what the Board and the Fund was required to do by the government”. Even in February “ the staff regarded the Board as a group of people that were there to protect them since the whole public was angry and or cross with them”. He said no complaints were received from the staff.

Kelep Sandy’s evidence does not bear directly on the substantial claims of the plaintiffs as I have found them. He was able to escape early from the riot. He took off his uniform and hid in the garage of a Chinese man. He was very scared. Similarly there is nothing contentious in the evidence of Peter Bong that bears upon the matters as I have found them.

The claim made by the staff in the complaint letter of 16th May was for Vt500,000 for Port Vila staff and 250,000 for Luganville staff. Whilst I have not accepted as a matter of law that they had claims for everything set out, the sum they requested was modest, it was not inflated. It seems a pity that the VNPF could not have sat down with the staff and worked out some satisfactory compensation or damages for its staff. The idea of a thank-you dinner was mooted by the Board, but there it stopped. I award damages for Port Vila staff in the sum of Vt 200,000 and 100,000 for the Luganville staff.

DATED AT PORT VILA this 28th day oust 2001.

p>

R.J. COVENTRY JUDGE


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