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High Court of Fiji |
IN THE HIGH COURT OF FIJI
AT SUVA
CIVIL JURISDICTION
Civil Action No. HBC 332 of 2013
BETWEEN : KALARA VUSONIWAILALA Tenant of 52 Ratu Sukuna Road.
PLAINTIFF
AND : LEECORP LIMITED a limited liability company having its registered office at Suva in the Republic of the Fiji Islands.
DEFENDANT
BEFORE: Master Vishwa Datt Sharma
COUNSELS: Mr. Anand Singh - for the Plaintiff
Ms. Choo - for the Defendant
DATE OF RULING: 19th July, 2017
RULING
[Defendant’s Summons to Strike Out the Plaintiff’s Writ of Summons and the Statement of Claim pursuant
to Order 25 Rule 9 of the High Court Rules, 1988 and the Inherent Jurisdiction of
this Honourable Court]
(A) INTRODUCTION
(B) BACKGROUND
The Defendant had not renewed the Plaintiff’s Lease Agreement from February 2013 due to numerous breaches of the Tenancy Agreement and illegal restructure of the said property without the consent of the Defendant.
The Plaintiff filed her claim against the Defendant but the Defendant in or about May 2014, sold the said property to one Binjie Investment Limited. The Plaintiff has since refused to vacate the property.
The Plaintiff in her claim seeks inter- alia;
(a) A declaration that the Plaintiff’s acceptance of the Lease is the result of unconscionable conduct of the Defendant;
(b) An order for a Lease as represented to the Plaintiff on such terms and conditions as the Court deems just; and
(c) Damages in a sum or sums as specified prior to trial in respect of the losses and damage detailed in the claim.
The Defendant in its Defence states that these redresses are now of no consequences and the claim is rendered invalid as the court can now no longer make an order against the Defendant and the damages sought above are nullified as Defendant is no longer the lessor by virtue of the sale of the said property to Binjie Investment Limited.
(C) CHRONOLOGY OF PLEADINGS FILED
(D) THE LAW
“9. – (1) If no step has been taken in any cause or matter for six months then any party on application or the Court of its own motion may list the cause or matter for the parties to show cause why it should not be struck out for want of prosecution or as an abuse of the process of the Court.
(2) Upon hearing the application the Court may either dismiss the cause [or] matter on such terms as may be just or deal with the application as if it were a summons for directions.’
“The power should be exercised only where the court is satisfied either (i) that the default has been intentional and contumelious, e.g. disobedience to a peremptory order of the court or conduct amount to an abuse of the process of the curt; or (ii) (a) that there has been inordinate and inexcusable delay on the part of the Plaintiff or his lawyers, and (b) that such delay would give rise to a substantial risk that it is not possible to have a fair trial of the issues in the action or is such as is likely to cause or to have caused serious prejudice to the Defendants either as between themselves and the Plaintiff or between each other or between them and a third party.”
“The power should be exercised only where the court is satisfied either:-
(i) That the default has been intentional and contumelious e.g.; disobedience to pre-emptory order of the court or conduct amounting to an abuse of the process of the court; or
(ii) (a) that there has been inordinate and inexcusable delay on the part of the Plaintiff or his lawyers (in the present case Defendant’s lawyers); (b) that such delay would give rise to substantial risk that it is not possible to have a fair trial of the issues in the action or is such as it likely to cause or to have caused serious prejudice to the Defendants either as between themselves and the Plaintiff or between each other or between then and a third party.”
“[23] – The correct approach to be taken by the courts in Fiji to an application to strike out proceedings for want of prosecution has been considered by this court on several occasions. Most recently, in Abdul Kadeer Kuddus Hussein v. Pacific Forum Lime Civil Appeal No. ABU 0024 of 2000 - FCA B/V 03/382 the court, in readopting the principles expounded in Birkett v. James [1978] AC 297; [1977] 2 All ER 801”
(2) Upon hearing the application the Court may either dismiss the cause [or] matter on such terms as may be just or deal with the application as if it were a summons for directions.”
“[4] – The central question raised by this appeal is whether the Court’s powers under O 25 r 9 should be exercised in substantial conformity with the powers it already possessed prior to the making of the new rule or whether an additional jurisdiction, exercisable on fresh principles, has been conferred on the Court.”
“[15] – A notable feature of the new Order 25 rule 9 is that it confers on the court the power to act on its on motion. Within our present High Court Rules such a power is only rarely conferred. One example is O 34 r 2 (6), another is O 52 r 4. In a number of overseas jurisdictions much wider case management powers have been given to the High Court and most of these powers are exercisable upon the court’s own motion. Such developments have however not yet reached Fiji.”
“[16] – In our view the only fresh power given to the High Court under Order 25 rule 9 is the power to strike out or to give directions of its own motion. While this power may very valuably be employed to agitate sluggish litigation it does not in our opinion confer any additional or wider jurisdiction on the Court to dismiss or strike out on grounds which differ from those already established by past authority.”
“[28] – Securum Finance Limited v. Ashton (supra is especially instructive since it explains why, following the introduction of the new Rules, the courts in England and Wales have been more ready to strike out actions on the ground of delay alone. At paragraphs 30 and 31 Chadwick L.J wrote that:
“30 the power to strike out a statement of claim is contained in CPR r3.4. On particular, rule 3.4 (2) (b) empowers the court to strike out a statement of case ... if it appears to the court that the statement of case is an abuse of the court’s process. ...In exercising that power the curt must seek to give effect to the overriding objective set out in CPR 1.1: see rule 1.2 (a). The overriding objective of the procedural code embodied in the new rules is to enable the court “to deal with cases justly”: see rule 1.1 (1). Dealing with a case justly includes “allotting to it an appropriate share of the court’s resources, while taking into accounts the need to allot resources to other cases”.
“31 In the Arbuthnot Latham case this court pointed out in a passage which I have already set out that:-
“In Birkett v. James the consequence to other litigants and to the courts of inordinate delay was not a consideration which was in issue. From now on it is going to be a consideration which was in issue. From now on it is going to be a consideration of increasing significance.”
[29] In Fiji there is as yet no equivalent of the English CPR r 1.1 or 3.4 and therefore the approach exemplified in Securum has not yet become part of our civil procedure.
(E) ANALYSIS and DETERMINATION
Default is contumelious
This case was commenced by the Plaintiff by filing a Writ of Summons coupled with a Statement of Claim and same was served on the Defendant on 20th November, 2013. An Acknowledgment of Service was filed by the Defendant. Thereafter, in terms of the High Court Rules, 1988, the Defendant followed the procedures as per the requirement of the High Court Rules, 1988 and therefore filed and served its Statement of Defence as per the requirement of the High Court Rules. The matter was yet to be listed before this Court with a Summons for Directions for any directions to be made as it was premature since no Reply to the Statement of Defence was filed. Therefore, there was no disobedience of any Court directions, since no directions were made until the Defendant filed and served his application for the striking out of the Plaintiff’s Statement of Claim.
For the above rational, the first arm of the test does not apply herein.
Delay
Intentional
For these two elements to be satisfied, the Defendant must establish that the delay was intentional on the part of the Plaintiff. In other words the Plaintiff has filed an action with having no intention to proceed with the same.
The Plaintiff submitted that the alleged delay ought to be computed from 01st October, 2014 when the Notice of Intention to Proceed was filed by the Plaintiff. The end date for the computation of the alleged delay is 31st December, 2014 when the Summons was filed for the striking out. Further, the Writ alleges a number of causes of action including a breach of statutory provisions as contained in the Commerce Decree 2010. The Plaintiff’s action is in relation to business premises that the Plaintiff was leasing from the Defendant. The Defendant than sold and transferred the property. Therefore the Plaintiff had to defend the action by the New Owner, Binjie Investment (Fiji) Limited to avoid an eviction order and bring formal proceedings against the new owners which the Plaintiff did in both instances. Therefore, priority given to the eviction proceedings brought by the new owners, Binjie Investment (Fiji) Limited. Hence the delay.
The Defendant submitted that the delay was intentional. The Plaintiff filed its Writ of Summons on 19th November; 2013 and for more than 1 year, the Plaintiff did not take any proactive measures to move the matter forward expeditiously. From 19th December, 2013 when the Defendant filed its statement of Defence the Plaintiff allowed the matter to lay in abeyance until almost a year later when the solicitors for the Plaintiff on the 01st October, 2014 filed a Notice to Proceed. However, in terms of Order 3 Rule 5 of the High Court Rules, 1988, a Notice to proceed must give not less than one month’s notice of their intention to proceed. Reference was made to the case of Deo v Ascot Motors Proprietary Limited [2011] FJHC 453; HBC331.2008 (18 August 2011) Justice Calanchini on the issue of Notice of Intent made this observation-
‘This no doubt was a reference to Order 3 Rule 5.I do not consider that this observation adds a great deal to the principal issue of the delay between April 2009 and January 2011. Even if a notice under Order 3 Rule 5 had been filed and served it would have made no difference to the issue of delay unless the Plaintiff had taken a further step in the action.’
The Defendant stated that in this case the matter didn’t proceed despite filing a notice to do so. The Plaintiff has not given any genuine reason why the matter should not be struck out only to say that they had prioritized action no. 266 of 2014 and can be implied she chose to dishonor the Rules of the High Court with the action. Nothing estopped the Plaintiff from pursuing this action.
Inordinate
This relates to the length of delay. The Plaintiff submitted that the issue for consideration is if there was inordinate delay. The Plaintiff filed the Notice of Intention to proceed on 01st October, 2014. The filing of this Notice was necessary compliance of the Rules of the High Court. Even if is no step in the proceedings, it clearly evinces the Plaintiff’s intention that she was intending to proceed with her proceedings against the Defendant herein.
He submitted that what constitutes inordinate delay is a question of fact to be determined from the circumstances of the case. In all the circumstances placed before the court, it is submitted that there has not been an inordinate delay on the part of the Plaintiff. In other words the delay was not such that it ought to attract negative sanction of the court.
Further, that the delay has not been of a kind that can be classed as inexcusable. The alleged delay even if inordinate is excusable on the ground that the Plaintiff was prosecuting and defending proceedings connected with the subject matter of these proceedings, that is, the lease pertaining to the property.
The Defendant sets out the chronology of pleadings in its written submissions stating as follows-
The Defendant submitted that the Plaintiff filed a Notice of Intention to Proceed on 01st October, 2014. Despite filing this Notice to proceed, they failed to file any Reply to the Defendant’s Statement of Claim. Issuing a Notice of Intention to proceed is not a step in a proceeding in any cause or matter. It does not progress the matter or cause. It merely gives a notice to the other party of the party‘s intentions. The Plaintiff has not given any genuine reason why the matter should not be struck out but said gave priority to action no. 266 of 2014. Paragraph 3 of the Plaintiff’s affidavit states that she had made several attempts to discuss settlement with Mr. Lee of the various issues raised but failed to annex any evidence of any such correspondences. That despite the delay of more than a year, the Plaintiff deposes at paragraph 7 that she was in process of filing necessary reply to defence, however she fails to annex a proposed Reply to Defence. The Plaintiff was supposed to file a Reply within 14 days of being served with a Defence.
Therefore the Defendant submits that the delay on the part of the Plaintiff has been intentional and contumelious. There is no excuse for the delay and for more than a year the Plaintiff has slept on her rights to pursue her claim with diligence and now the Defendant is being prejudiced by the action or inaction of the Plaintiff.
In the above circumstances I am of the finding that the Plaintiff contributed to the delay in filing of their respective pleadings which has caused this matter to remain pending in the court. In particular the Plaintiff failed to file any Reply to the Statement of Defence within the time frame of 14 days allocated in the law nor did she file any application seeking the leave of this court to file and serve the Reply to the Defence.
However, the Plaintiff has explained her delay sufficiently which in the given circumstances is acceptable to this court.
Even if the Defendant succeeded in establishing inordinate and inexcusable delay, these factors would not, on their own, be sufficient to warrant the striking out of this action.
Prejudice
However, this court can be mindful of the fact that the court should give a tight timelines for the parties to comply with the same bearing in mind the nature of the substantive issue.
Further, this court is also aware of the fact that there is also a simultaneous case HBC 345 of 2014 filed by the same Plaintiff against the new owner (Binjie Investments Limited) of the property who succeeded in obtaining a vacant possession order against the Plaintiff in a third Court file referenced HBC 266 of 2014.
The overriding objective of the procedural rule and the requirement in ‘Birkett v James is to enable the court “to deal with cases justly”. Dealing with a case justly includes “allotting to it an appropriate share of the court’s resources, while taking into accounts the need to allot resources to other cases”.
In this case, I reiterate that there are two (2) pending cases filed by the same Plaintiff against the initial owner of the property, Leecorp Limited and new current owner Binjie Investments Limited. The particulars of the Statement of Claim in both cases speak for themselves. This Court is of the view that both cases can be consolidated and heard together once directions are made by the court for the parties to comply and complete the cause of action expeditiously. This case was initiated in 2013, both Defendants are represented and documentary evidences together with any witnesses may be around to enable court to hear and conclude the cases accordingly.
This will certainly alleviate any prejudice to the Defendant.
Interest of Justice
[15] A more fundamental difficulty for the Respondent is that the judge failed to make any finding at all on the final question to be asked when applying the Birkett v. James principles namely: ‘In view of the delays which have occurred, is a fair trial now possible?’ (Also case of Department of Transport v, Chris Smaller (Transport Limited [1989] AC 1197 refers.
‘The applicant must show that the plaintiff has been guilty of inordinate delay, that such delay is inexcusable, and that it has seriously prejudiced the defendant. Although these considerations are not necessarily exclusive, and at the end one must always stand back and have regard to the interests of justice, in this country, ever since NZ Industrial Gases Ltd v Andersons Ltd [1970] NZLR 58 it has been accepted that if the application is to be successful, the applicant must commence by proving the three factors listed.’
’26. This principle was restated by the Court of Appeal of Fiji in Pratap v Kristian Mission Fellowship [2006] FJCA 41. Also refer to; New India Assurance Co Ltd v Singh [1999] FJCA 69.
The principle as enunciated in these cases reflects the principles on this topic in other common law jurisdictions. These decisions include; Metropolitan Bank Ltd v Pooley (1885) 10 App Cas 210; Dey v. Victorian Railway Commissioners (1949) HCA 1; (1949) 78 CLR 62; Birkett v James [1978] AC 297; Lovie v Medical Assurance Society Limited [1992] 2 NZLR 244; Agar v Hyde [2001] HCA 41; (2000) 201 CLR 552. Indeed the passage from Abdul Kadeer Kuddus Hussein v Pacific Forum Line reflects closely Birkett v James (above). These authorities also make the point that in exercising a peremptory power of the kind under contemplation in these proceedings, the court must be cautious and to put the matter in another way, the court must stand back and ensure that sufficient regard is ahead of the interests of justice.’
Dated at Suva this 19th Day of July, 2017
.................................................................
VISHWA DATT SHARMA
Master of High Court, Suva
cc: Singh & Singh Lawyers, Suva
R.Patel Lawyers, Suva
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