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High Court of Fiji |
IN THE HIGH COURT OF FIJI
AT SUVA
CIVIL JURISDICTION
Civil Action No. HBC 147 of 2014
BETWEEN : ESALA VULAt/a VEILOMANI TRANSPORT
PLAINTIFF
AND : MERCHANT BANK OF FIJI LIMITED t/a MERCHANT FINANCE
DEFENDANT
Appearances : Vakaloloma& Associates for the Plaintiff
Reddy & Nandan Lawyers for the Defendant
Before : Acting Master S. F. Bull
Ruling : 09 December 2016
RULING
Preliminary objection
The swearing of affidavits by solicitor’s clerks in contested proceedings appears with alarming regularity before the courts. Arun Kumar says he was duly authorized by defendants to dispose the contents. There is no authority annexed to the affidavit. Order 41 Rule 1 sub-rule 4 requires affidavit to be expressed in “first person”. The affidavit put before the court is more like a statement of defence in its wording rather than being expressed in first person. Swearing of affidavits by solicitors’ clerk on contested matters should be a rare exception and the reason why the party is unable to depose ought to be explained.
It has been said before by the Judges of the High Court and the Court of Appeal that such a practice is not acceptable. However, I am prepared to accept this affidavit because the plaintiff has given the clerk a written authorization for the clerk to swear the affidavit on its behalf due to the urgency of this application. Noting that the plaintiff operates a hotel on one of the outlying islands, it is understandable.
9. InAusfurn Fiji Ltd v Director of LandsCivil Action No. HBC 68 of 2012, Master Nanayakkara said:
In the Supreme Court Practice (1967) (The White Book) the following note appears at page 117:
‘The affidmay be made by the Plae Plaintiff or by any person duly authorised to make it. If not made by the Plaintiff, the affidavit itselt state that that the person making it is duly authorised to do so- Chingwin –v- Russell (1910) 27 T.L.R. 21”.
The law
On striking out
(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 –
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).
13. Apart from the power to strike out under the High Court Rules (Order 18 rule 18 above), the Court also has an inherent jurisdiction to strike out proceedings that are frivolous, vexatious or an abuse of the process of the Court, “to control proceedings and prevent an abuse of its process.” (Khan v BegumCivil Action No. HBC0153 of 2003L; also NBF Asset Management Bank v Taveuni Estates Civil Action No. HBC 543 of 2004)
It is only in plain and obvious cases that recourse should be had to the summary process under Ord Rule 18 (1) of the Rule Rules of the High Court. This was affirmed in Kemsley v Foot &Ors [1952] A.C. 345.
The terms "frivolous" and "vexations" (sic) are not defined in the High Court Rules. In accordance with the rules of statutory interpretation, those words should be given their ordinary meaning. In the Shorter Oxford English Dictionary frivolous means "of little or no weight or importance, paltry, not with serious attention or (in law, pleading) manifestly futile". Vexatious means "causing or tendency to cause vexation (i.e. something causing annoyance, irritation, dissatisfaction or disappointment) or (legal) actions being instituted without sufficient grounds for the purpose of causing trouble or annoyance to the defendant". I accept that it is only necessary to establish that the pleading be either frivolous or vexations for the Court to exercise its discretion.
On abuse of process
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 indorsement 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 indorsement 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.
In my opinion the learned judge at chambers ought to have exercised the inherent jurisdiction which he undoubtedly possesses of staying the action on the ground that it is frivolous and vexatious and an abuse of the process of the Court. I do not rest my decision upon the ground that the matter is res judicata, for I do not think it can be said that it is. I put my decision on the ground that the identical question raised in this action was raised before the county court judge upon an application for an order to tax the costs of the action in the county court, and was heard and determined by him. The county court judge had jurisdiction to hear and determine the question upon that application, and it is perfectly clear from the evidence before him that the question there was the same as that now raised in this action, namely, whether the deed of release was obtained by fraud. The plaintiff was present at the hearing before the county court judge, and had every opportunity of putting forward his case. The judge heard evidence upon the question and decided it. The issue now sought to be raised in this action has been determined by a court of competent jurisdiction, and the case of Reichel v Magrath (1776) 2 Sm. L. C. 10th ed. P. 713 and Macdougall v Knight 25 Q.B.D.1 shew that it would be an abuse of process of the Court to allow a suitor to litigate over again the same question which has been already decided against him.
19. In NBF Asset Management Bank v Taveuni Estates Ltd (supra), Calanchini J (as then was) stated:
A pleading is usually regarded as an abuse of the process of the Court if it raises an issue that has already been litigated between the parties. In Raijieli Naqarase -v- The Public Trustee of Fiji (1994) 40 FLR 215 Pathik, J observed at page 217:
"I also agree that to institute the present action (civil action 168/94) which is the same as the said action 49/93 and covering the same subject matter is an abuse of the process of the Court."
20. In Razak v Fiji Sugar Corporation Ltd Civil Action No. HBC 208 of 1998L at [11] (Decision of 23 February 2005), Gates J (as His
Lordship then was) stated:
It would be an abuse of process for the plaintiff to bring a second action for the same cause of action after disobedience of peremptory
orders had resulted in the dismissal of the first action: Janov v Morris [1981] 3 All ER 780. It is said the process is misused thereby. Re-litigating a question, even though the matter is not strictly res judicata has been
held to be an abuse of process: Stephenson v Garnett [1898] UKLawRpKQB 22; [1898] 1 QB 677 CA. In that case the suitor was the same person and he sought to re-open a matter already decided against him.
Analysis
Is there a reasonable cause of action?
It is settled law and practice that any allegation of fraud must be expressly pleaded together with the facts, matters and circumstances relied on to support the allegation.
As pointed out by ‘Odgers’ Principles of Pleading & Practice in Civil Actions in the High Court of Justice’ (22nd Ed. p. 100), the acts alleged to be fraudulent should also be set out and then it should be stated that those acts were done fraudulently. (See Re Rica Gold Washing Co [1879] UKLawRpCh 18; (1879) 11 Ch.d. 36).
The Court will require of him who makes a charge that he shall state that charge with as much definiteness and particularity as may be done, both as regards time and place (per Lord Penzance in Marriner v. Bishop of Bath and Wells [1893] P. 145...
...the word ‘material’ means necessary for the purpose of formulating a complete cause of action; and if any one ‘material’ fact is omitted, the statement of claim is bad; it is ‘demurrable’ in the old phraseology, and in the new is liable to be ‘struck out’...
Fraud
It is well established that fraud or dishonesty...must be distinctly alleged and as distinctly proved; that it must be sufficiently particularised; and that it is not sufficiently particularised if the facts are consistent with innocence...This means that a plaintiff who alleges dishonesty must plead the facts, matters and circumstances relied on to show that the defendant was dishonest and not merely negligent, and that facts, matters and circumstances which are consistent with negligence do not do so.
It is important to appreciate that there are two principles in play. The first is a matter of pleading. The function of pleadings is to give the party opposite sufficient notice of the case which is being made against him. If the pleader means ‘dishonestly’ or ‘fraudulently’, it may not be enough to say ‘wilfully’ or ‘recklessly’. Such language is equivocal...
The second principle, which is quite distinct, is that an allegation of fraud or dishonesty must be sufficiently particularised, and that particulars of facts which are consistent with honesty are not sufficient. This is only partly a matter of pleading. It is also a matter of substance. As I have said, the defendant is entitled to know the case he has to meet. But since dishonesty is usually a matter of inference from primary facts, this involves knowing not only that he is alleged to have acted dishonestly, but also the primary facts which will be relied upon at trial to justify the inference. At trial the Court will not normally allow proof of primary facts which have not been pleaded, and will not do so in a case of fraud. It is not open to the Court to infer dishonesty from facts which have not been pleaded, or from facts which have been pleaded but are consistent with honesty. There must be some fact which tilts the balance and justifies an inference of dishonesty, and this fact must be both pleaded and proved.
The law quite rightly requires questions of dishonesty be approached more rigorously than other questions of fault. The burden of proof remains the civil burden – the balance of probabilities – but the assessment of the evidence has to take account of the seriousness of the allegations and, if that be the case, any unlikelihood that the person accused of dishonesty would have acted in that way. Dishonesty is not to be inferred from evidence which is equally consistent with mere negligence. At the pleading stage the party making the allegation of dishonesty has to be prepared to particularise it and, if he is unable to do so, his allegation would be struck out. The allegation must be made upon the basis of evidence which will be admissible at the trial. This common sense proposition has recently been re-emphasised by the Court of Appeal in Medcalf v Mardell (2001) Times, 2 January, in which Peter Gibson LJ said: “The material evidence must be evidence which can be put before the Court to make good the allegation.” Evidence which cannot be used in Court cannot be relied upon to justify the making of the allegation of dishonesty.
First, in order to sustain an action of deceit, there must be proof of fraud, and nothing short of that will suffice. Secondly, fraud is proved when it is shewn that a false representation has been made (1) knowingly, or (2) without belief in its truth, or (3) recklessly, careless whether it be true or false. Although I have treated the second and third as distinct cases, I think the third is but an instance of the second, for one who makes a statement under such circumstances can have no real belief in the truth of what he states. To prevent a false statement being fraudulent, there must, I think, always be an honest belief in its truth. And this probably covers the whole ground, for one who knowingly alleges that which is false, has obviously no such honest belief. Thirdly, if fraud be proved, the motive of the person guilty of it is immaterial. It matters not that there was no intention to cheat or injure the person to whom the statement was made.
Particulars cannot be used to fill gaps in the statement of claim which ought to have been filled by appropriate statements of the various material facts together constituting the cause of action - Bruce v. Odhams Press Ltd. (supra); H. 1976 Nominees Pty. Ltd. v. Galli[1979] FCA 74; (1979) 40 FLR 242 at 246; Trade Practices Commission v. David Jones (Australia) Pty. Ltd. [1985] FCA 228; (1985) ATPR 40-607.
The Plaintiff’s claim is founded on four separate loan contracts that he had entered in with the Defendant to purchase four new trucks. Those four loan contracts were subsequently amalgamated into one contract on the 17th of November 2003. However, all those four trucks together with another truck owned by the Plaintiff which was given by him as a security for this loan contract were repossessed by the Defendant on the 22nd of January 2004. Plaintiff claims that he initially thought that the action of the Defendant was right. However, sometimes on or about 2009, he discovered some irregularities and discrepancies in those payments and contracts such as payment in advance, discrepancies in the amount of money borrowed and prices of the vehicles. The Plaintiff then instituted this action based on
those discovered irregularities and discrepancies.
And later, at [21]:
Upon careful consideration, it is obvious that the cause of action pleaded in the Statement of Claim is founded on breach of contract and statue barred pursuant to section 4 (1) of the Limitation Act. The Plaintiff also admitted that his cause of action is time barred in paragraph 33 of the Statement of Claim. The Plaintiff contended that section 4(1) of the Limitation Act is not applicable in this instance action since the cause of action is based on fraud, which allows the Plaintiff to institute this action pursuant to section 15 of the Limitation act.
If the Plaintiff discontinues this action, the counter claim remains on foot and proceeds to trial. In the case, the Plaintiff, being confronted with a counter-claim in excess of his claim discontinued and argued that the counter claim fell with his discontinuance. This would be true of a set-off but a counter claim taking effect as a cross-action is not affected by the fate of the Plaintiff's action.
A cause of action estoppel or res judicata or estoppel per rem judicatem arises where a party brings an action against a particular defendant in which a final judgment is delivered...There is a strict rule of law that the party cannot bring another action based on the same cause(s) of action against the same party.
The point of the present appeal is that the resporespondent brought an action against the appellant and recovered judgment against him. He obtained a judgment of the Court in which the cause of action upon which heed merged, thereby destroestroying its independent existence so long as that judgment stood. so long as that judt judgment stands, it is not competor the respondent to bring further proceedings in respect oect of the same cause of action. It is no answer to say that the Courtt, ifopriate, stay they the second action as an abuse of processocess. The impediment goes deeper than that; res judicata may sustain a plea of abuse of process but in that case the appropriate remedy is to strike out the later action... (My emphasis)
Conclusion
S.F. Bull
Acting Master
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