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Leaupepe v METI [2025] WSSC 50 (20 June 2025)

IN THE SUPREME COURT OF SAMOA
Leaupepe v METI [2025] WSSC 50 (20 June 2025)


Case name:
Leaupepe v METI


Citation:


Decision date:
20 June 2025


Parties:
ALOEMA LEAUPEPE of Mulifanua (Plaintiff) v MATUAILEOO ENVIRONMENT TRUST INCORPORATED, an incorporated entity having its registered offices at Motootua (Defendant).


Hearing date(s):
27 February 2025
Submissions: 3 April 2025


File number(s):
2023-01208 SC/CV/UP


Jurisdiction:
Supreme Court – CIVIL


Place of delivery:
Supreme Court of Samoa, Mulinuu


Judge(s):
Senior Justice Nelson


On appeal from:



Order:
There were ample grounds justifying the plaintiffs instant dismissal for serious misconduct pursuant to section 57(2) of the Labour and Employment Relations Act 2013 as well as at common-law.

The plaintiffs claim is dismissed, judgment will be entered for the defendant.

The defendant as the successful party is entitled to reasonable costs to be fixed by the court if not agreed upon by the parties.


Representation:
A. Su’a for plaintiff
Q. Sauaga for the respondent


Catchwords:
Wrongful dismissal


Words and phrases:



Legislation cited:
Labour and Employment Relations Act 2013, ss. 54; 54(2); 56; 57; 57(2).


Cases cited:
Faamau v Samoa Breweries [2009] WSSC 85;
Liki v Samoa Breweries Ltd [2005] WSSC 3;
Shirlaw v Southern Foundaries Ltd [1939] 2 All ER 113;
Toremana v Samoa Water Authority [2019] WSSC 16.


Summary of decision:

IN THE SUPREME COURT OF SAMOA
HELD AT MULINUU


BETWEEN:


ALOEMA LEAUPEPE of Mulifanua.


Plaintiff


A N D:


MATUAILEOO ENVIRONMENT TRUST INCORPORATED, an incorporated entity having its registered offices at Motootua.


Defendant


Counsel: A. Su’a for plaintiff
Q. Sauaga for the respondent


Hearing: 27 February 2025


Submissions: 03 April 25


Decision: 20 June 2025


DECISION OF THE COURT

Background

  1. It is not in dispute that the defendant (‘METI’) is a charitable trust duly incorporated under the Charitable Trusts Act 1965 and at all material times was carrying on business from its premises at Lalovaea in Apia. Its objects include but are not limited to the following:
  2. The Trust is managed by a Board of Directors and its Executive Director at all material times in this matter was Dr Walter Vermuellen.
  3. The plaintiff was employed in 2009 by the defendant as a Trainer earning a gross salary of $16,000 per annum. In 2014 she was promoted to Senior Trainer ($26,000 per annum) and in 2020, to Program Co-ordinator at $40,000 per annum. There was however never at any stage a written contract or written terms and conditions of employment.
  4. The plaintiff argues her employment was therefore governed by the ‘Matuaileoo Environmental Trust Inc - HR Policies and Procedures’. Or alternatively by the ‘Working Conditions and Entitlements Manual 2015’ of the Office of the Public Service Commission. As correctly conceded by her counsel during hearing of Closing Submissions, this is disputed by the defendant who through Dr. Vermuellen says in an affidavit produced at trial as Exhibit “R-1” for the Respondent:
  5. On this issue the court accepts the evidence of the defendant, the plaintiffs employment was governed by the Labour and Employment Relations Act 2013 (“the Labour Act”). This also seems to be accepted to a large extent by plaintiffs counsel based on the content of his Closing Submissions.

Plaintiffs claim

  1. Subsequent to a motor vehicle accident at Aleisa in the evening of 20 July 2021 involving the defendants Mazda vehicle driven by the plaintiff, the plaintiff was summarily dismissed by letter dated 18 October 2021 (“the dismissal letter”). As the reasons for dismissal are crucial to this matter, the letter is reproduced below in its entirety:

“18 October 2021

Ms Aloema Leaupepe
MULIFANUA

Aloema,
The Board had reviewed with me the latest information in regards the various incidents mentioned in my earlier letter of 27 September 2021.
The Board holds you responsible for the Mazda crash on 21 July 2021. The latest information received from the MOH is that you were seen at 1:45 am the next morning and not in the earlier evening as you maintain. Further, the mechanic did not arrive on the scene until after midnight. This further supports the evidence that the Mazda was spotted before the incident around 11:30 pm at Tamaligi with you in the passenger seat and the car being driven by a white haired male.
The Board has taken a dim view of your refusal to obey the Executive Director’s order (based on a Board’s decision) not to use a METI vehicle after working hours, the Board considers this plain insubordination.
The Board has taken note that you made the false claim that you were the owner of the Toyota vehicle, which you had placed as guarantee for your pay advances, whereas in fact the vehicle was registered under the name of your jailed and estranged husband Iakopo Faatauvaa.
When you brought the transfer notice presumably signed by Iakopo, we took steps to have this verified and have him interviewed. With the Deputy Commissioner of Police in charge of the Prison as witness, it was found out that you misled Iakopo to get his signature by claiming that ‘Walter wanted you to sign the transfer to METI since METI is short on vehicles’, failing to tell him that the true reason for the transfer of ownership was to cover your pay advances.
Iakopo was so upsent, when being told the true reason for the transfer that the he crossed out his signature on the transfer notice that you made him sign under false pretences. He has now written and signed the transfer notice to me, not METI (see copies attached).
As a result of you not being able to sell the vehicle as you had promised by the due date of 21 September 2021, you offered for METI to buy the vehicle at a discounted price of $9,000, which we did in good faith. We then deducted all the pay advances you received over time and gave you in cash the remaining amount of $5,140. Now that Iakopo has been unwilling to transfer the vehicle to METI, you owe METI the amount of $9,000.
As a result of your actions and based on the Board’s instruction, I hereby terminate your employment with METI as from this date.
I expect you to return all METI property including the Noah vehicle immediately.
Sincerely,

Walter Vermeulen
Executive Director.”
  1. The plaintiff originally brought an action based on wrongful dismissal and promissory estoppel but has abandoned the latter cause of action. In respect of wrongful dismissal, the plaintiff argues:

Relevant law

  1. Section 54 of the Labour Act provides for ways in which a contract of employment may be terminated. Section 54(2) relevantly states:
  2. Section 56 deals with trainees, casual employees and other matters and has no application to the present case. Section 57 provides:
  3. It is clear from the dismissal letter that the plaintiff was dismissed without notice and for the reasons contained therein. Whilst the letter does not specifically refer to “serious misconduct”, it would appear the defendant Board regarded the matters referred to therein as amounting to either “serious misconduct” under section 57(2) or serious enough to warrant instant dismissal.
  4. “Serious misconduct” is defined by section 2 of the Labour Act as -
  5. In Samoan labour and employment law, it is important to distinguish between a common-law action for wrongful dismissal and an action for unlawful dismissal based on a breach of the Labour and Employment Relations Act 2013. As noted by Chief Justice Sapolu in Liki v Samoa Breweries Ltd [2005] WSSC 3:
  6. Further on in Liki v Samoa Breweries Ltd the learned Chief Justice explains:
  7. The court also said:
  8. Subsequently in Faamau v Samoa Breweries [2009] WSSC 85, the Chief Justice added:
  9. A useful discussion of the difference between common-law actions and those based on statute can be found in Toremana v Samoa Water Authority [2019] WSSC 16 where Clarke, J noted:
  10. In relation to onus of proof, Clarke, J held and I agree with him:

Discussion

  1. The dismissal letter essentially refers to three reasons for the plaintiffs termination:
  2. In relation to (i), the defendants position after investigation of the matter was relayed to the plaintiff in its letter dated 27 September 2021 attached as “A-2” to the plaintiffs affidavit dated 02 October 2023 produced at trial as Exhibit “P-1” for the plaintiff. Her version of events is contained in the letters adjacent to “A-2” consistent with her sworn evidence.
  3. The defendant obviously rejected her explanations as outlined in their 27 September 2021 correspondence in particular because of the plaintiffs failure to report the alleged ‘hit and run’ accident to the Police and due to the conclusions reached by the defendants mechanic and the plaintiffs own mechanic following inspection of the vehicle.
  4. As regards (ii), the plaintiffs evidence was she regularly used her office vehicle after-hours and was never told by the Executive Director or anyone else she had no authority to do so. She says the defendant paid for the petrol and the Executive Director was well aware of what she was doing.
  5. The defendants position on this is not totally clear but from the correspondences and evidence adduced, it seems to me likely this instruction was only given post-the 20 July 2021 accident and when the plaintiff took possession of the black METI vehicle on 21 July 2021. This the plaintiff refused to comply with as is clear from her 29 September 2021 explanation letter where she says at the bottom of the first page
  6. In the words of the Executive Directors letter of 27 September 2021 to the plaintiff, the defendant considered such behaviour to be “straight and simple, insubordination” and “blackmail since the plaintiffs resignation would have seriously affected the defendants efforts to complete in time important project reports.” Sentiments which are repeated in the dismissal letter when it states:
  7. In relation to (iii), the chain of correspondence is plain enough. The Board were of the view the plaintiff fraudulently misrepresented the situation regarding the vehicle registered to her imprisoned husband ultimately leading to a loss of $9,000 to the defendant. The particulars of this were challenged by the plaintiff in her affidavit and evidence but what she did not address was the core allegation that her husband now refused to transfer the vehicle to settle her salary advances thus resulting in a $9,000 loss to the defendant, over $5,000 of which was given in good faith in cash to the plaintiff.

Conclusions

  1. From the point of view of whether in all the circumstances the plaintiff was guilty of “serious misconduct” within the terms of section 57(2) of the Labour Act, the court finds as follows:
(iii) It can also amount to ‘serious misconduct’ which by statutory definition includes “dishonest conduct” and the making of “a false statement orally or in writing.”
(iv) On this basis alone, the plaintiffs employment could have been terminated pursuant to section 57(2), the defendant employer having discharged its obligation to give the employee a reasonable opportunity to respond to the written allegations of ‘serious misconduct’ in its letter to the plaintiff dated 27 September 2021.
(v) The plaintiffs non-compliance with the defendants instructions concerning after hours use of her office vehicle is also sufficiently established on a balance of probabilities especially given her own words in her letter dated 29 September 2021 (see paragraph 22 above). Compliance with an employers instructions is fundamental to any employer-employee relationship and failure to do so would clearly constitute a breach of a fundamental term of employment. Again this too can amount to ‘serious misconduct’ warranting instant dismissal and the court is satisfied the issue was properly raised in writing with the plaintiff via Dr Vermuellens letter dated 27 September 2021.
(vi) What was not raised in the above referred letter of 27 September 2021 was the third termination ground of payment of the plaintiff’s salary advances using the Toyota Primo vehicle purportedly hers but in fact registered to her husband. Whilst this is capable of being ‘serious misconduct’, it is a mandatory requirement of section 57(2) that the plaintiff be “first given a reasonable opportunity to respond to allegations of serious misconduct put in writing”. The defendants failure to do this means it cannot rely on this as a lawful basis for termination without notice pursuant to section 57(2).
(vii) Notwithstanding the above, it is the courts view that the plaintiffs behaviour in the circumstances outlined above also amount to “just cause” for summary dismissal at common-law. As noted in Liki supra:
(viii) It seems from the defendants dismissal letter that it was not any one reason that justified the plaintiffs instant dismissal, rather that it was the cumulative effect of the plaintiffs “actions”. As reminded by the court in Liki:
(ix) As to the plaintiffs argument that her termination was invalid because she resigned before the letter of dismissal was issued, there is a clear conflict in the evidence between what she says and what the defendant says. Her evidence is that she tendered her resignation in writing to the defendant by letter dated 05 October 2021 (annexure ‘B’ of “P-1” for the plaintiff). But after a discussion with Dr Vermuellen she decided to follow his advice and tender a second letter dated 05 October 2021 outlining her financial claims (annexure ‘C’ of “P-1”). The evidence of Dr Vermuellen is that he never received the 05 October 2021 letter of resignation, only the one detailing the plaintiffs claims. Further that no discussion as suggested took place.
(x) The defendants position is they invited the plaintiff to resign gracefully in their correspondence of 27 September 2021 but the plaintiff refused and opted to pursue her demands hence her letter dated 05 October 2021. This is consistent with what Dr Vermuellen told the Police in his statement concerning the theft of the defendants car post-dismissal (annexure ‘H’ of “P-1”) that the plaintiff agreed to resign but “with conditions.”
(xi) It is significant in my view that the letter of demand which the plaintiff says was the second letter of 05 October 2021 begins with the sentence:

And concludes with the sentence:

“Plus I will hand over my work to someone and my resignation letter before leaving METI.”

This suggests that at that stage, there was no letter of resignation as it opens with the phrase “before I resign from METI” and ends with a commitment to hand over her work “and my resignation letter.” On this issue, I therefore prefer the evidence of Dr Vermuellen that at the 05 October 2021 meeting, the plaintiff presented not a resignation but a letter of demand. Meaning that as at the date of the dismissal letter, the plaintiff had not as a matter of fact tendered her resignation. It is likely also that if she had, the letter of dismissal would have made reference to this fact.

Decision

  1. There were ample grounds justifying the plaintiffs instant dismissal for serious misconduct pursuant to section 57(2) of the Labour and Employment Relations Act 2013 as well as at common-law.
  2. The plaintiffs claim is dismissed, judgment will be entered for the defendant.
  3. The defendant as the successful party is entitled to reasonable costs to be fixed by the court if not agreed upon by the parties.

SENIOR JUSTICE NELSON



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