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High Court of Fiji |
IN THE HIGH COURT OF FIJI
WESTERN DIVISION
AT LAUTOKA
[CIVIL JURISDICTION]
Civil Action No. HBC 68 of 2012
BETWEEN : AUSFURN FIJI LIMITED a duly incorporated limited liability company having its registered office at Nadi.
Plaintiff
AND : THE DIRECTOR OF LANDS, Government Buildings, Suva.
First Defendant
AND : ATTORNEY GENERAL, Attorney-General’s Chambers, Suva.
Second Defendant
AND : MATRIX ENVIRONMENTAL SOLUTIONS LIMITED,
A duly incorporated limited liability company having its registered office at Nadi.
Third Defendant
AND : PETER MICHAEL McGAHAN, a Company Director of Nadi.
Fourth Defendant
Before : Master U.L. Mohamed Azhar
Counsels : Ms. B. Doton for the Plaintiff
Mr. J. Mainavolau for the First and Second Defendants
Mr. Nilesh Kumar for the Third and Fourth Defendants
(On instruction)
Date of Ruling : 10th July 2019
RULING
01. This is the Notice of Motion filed by the plaintiff company on 12.07.2017 pursuant to Order 32 rule 6 of the High Court, which gives discretionary power to the court to set aside an order made ex parte. By the said motion, the plaintiff company sought an order that, the within the action which was taken off the cause list on the 16th day of November 2015 be reinstated and the matter be relisted to the cause list. The motion is supported by an affidavit sworn by Keith Treffers, the director of the plaintiff company.
02. This matter has a long history since it was instituted on 10.04.2012 and I do not see any reason to go through the entire history of the matter. Suffice to say that, the directions were given by the court for the plaintiff to file the supplementary affidavit verifying list of documents and to finalize the Pre-Trial Conference Minutes and thereafter the matter was adjourned to 04.11.2015. The plaintiff was absent and unrepresented on 04.11.2015, and the matter was then adjourned to 16.11.2015 with the notice to the plaintiff. On 16.11.2015 the neither the plaintiff nor its solicitor appeared and the matter was taken off the cause list. The plaintiff on 25.11.2015 (within 9 days) filed an application supported by an affidavit sworn by the law clerk seeking to reinstate the matter back to the cause list. The then Master rejected the supporting affidavit sworn by the law clerk and dismissed the said application. The plaintiff company then sought the leave to appeal against the said ruling, however failed in its attempt as the judge refused the leave to appeal. The plaintiff company thereafter renewed the application before this court by the instant motion which is now supported by an affidavit of its director.
03. The first and second defendants did not object to this motion of the plaintiff. However, the third and fourth defendants opposed the motion and filed their affidavit in opposition sworn by a director of the third defendant company. The said affidavit simply attached two rulings of the then Master dismissing first application and the ruling of the judge who refused the leave to appeal, and also relied on the affidavits filed in respect of the first application. The plaintiff chose not to file any affidavit in reply, and both counsels for the parties moved the court to dispose this matter by way of their written submissions.
04. The main contention put forward on behalf of the third and fourth defendants was that, this court was functus officio and did not have jurisdiction to hear the second or the renewed application as the first application was dismissed and leave to appeal too was refused. The counsel for the third and fourth defendant further submitted that, the present application to reinstate has been determined by two levels of the High Court and is therefore as abuse of court process. Seemingly, the third and fourth defendants rely on the doctrine of res judicata and abuse of process.
05. Conversely, it was submitted on behalf of the plaintiff that, the court did not decide the first application on merits, but dismissed it on the ground that there was no valid affidavit supporting the motion. It was further submitted that, the court in the first application did not consider the facts that led absence of the plaintiff and its solicitors on the said two consecutive ‘mention dates’. Therefore, it was argued that, the plaintiff is not barred from bringing the second application. Accordingly, there are two issues to be determined by this court. The first is whether the doctrine of res judicata applies and this court is functus officio since the counsel for the third and fourth defendants claims that, application to reinstate has been determined by two levels of the High Court or this court has jurisdiction to hear the renewed motion for reinstatement? The second is whether the court should be strict to the order made on 16.11.2015 taking the matter out of the cause list or reverse it?
06. Briefly, the rule of estoppel by res judicata is that, where final judicial decision has been pronounced by a competent court or tribunal over the parties to, or subject matter of the litigation, any person is estopped in any subsequent litigation to dispute the question of such decision on the merits. The term Res Judicata is Latin term which means “a matter adjudged”; “a thing judicially acted upon or decided”; “a matter or thing settled by judgment” etc. The full Latin maxim reads as “Res judicata pro veritate accipitur” which means ‘a thing adjudged must take0;for0;for truthuth’ and a pera period of time it shrunk to mere “Res Judicata”. This doctrine is based on two Latin maxims. The first one is “Nemet biam pr et eadem causausa”8221; and it mehat “No oneo oneo one ought to be twice vexed for one and the same cause”. The second one is “Interest rei publicae ut sit finis litium,” and it means that “it iscommon good thad that there be an end to litigation”. The effect of this doctrine is that, it stops a party from later controverting any issue or question had already been decided by a court and also prevents a pa a party from obtaining same relief for the second time from the same party. A passage considered being the best known or most authoritative on this doctrine is found in the judgment of Sir James Wigram VC in Hendersen v. Hsen (1843) Ha3) Hare 100. It was held at page 115 as follows;
“In trying this question, I believe I state the rule of the court correctly, when I say, that where a given r becthe st oect of litigation in, and of adjudicationation by, by, a court of competent jurisdiction, the court requires the parties to litigation to bring forward their whole case, and will not (exceder special circucircucircumstances) permit the same parties to open the same subject of litigation in respect of matter which might have been brought forward as part of the subject in co, buth was not broughtought forward, only because they have, from negligence, inadvertence, or e or even accident, omitted part of their case. The plea of res judicapliesplies, except in special cases, not only to points upon whie cohe court was actually required by the parties to form an opinion and pronounce a judgment, b every point which properloperly belonged to the subje litigation, and which the parties, exercireasonaasonaasonable diligence, might have brought forward at the time.”
07. The above authority sets a general rule that, the courts require the litigants to bring forward the entire case for adjudication. This requirement is not limited to issues or the points upon which the courts may form their opinion and pronounce the judgement, but it extends to each and every point which properly belonged to the subject of the litigation, and which the litigants exercising reasonable diligence and care might have brought forward at the time of adjudication. It is expected from a litigant to bring all the issues that a litigant exercising reasonable diligence and care might have brought. Thus it involves the application of an objective test in which the conduct of the litigant is compared to that of a reasonable person under similar circumstances. The rationale is that all the aspects of a matter will be finally decided by a court of law and in that sense it is based on the public policy that litigation should not drag on forever and the defendant should be protected from the successive oppressions by the multiple suits. This proposition was upheld by the English Court of Appeal in Barrow v. Bankside Agency Ltd.[1996] 1 All ER 981. Lord Justice Sir Thomas Bingham MR with whom Peter Gibson and Saville L JJ agreeing held at page 983 that;
“The rule in Hendersen v Hendersen [1843] EngR 917; (1843) 3 Hare 100, [1843-60] All ER Rep 378 is very well known. It require parties, when a en a matter becomes the subject of litigation between them in a court of competent jurisdiction, to bring their whole case before the court so that all aspects of it may be finally decided (subject, of course, to any appeal) once and for all. In the absence of special circumstances, the parties cannot return to the court to advance arguments, claims or defences which they could have put forward for decision on the first occasion but failed to raise. The rule t based on the doce doctrine of res judicata in a narrow sense, nor even on any strict doctrine of issue or cause of action esto It is a rule of public policy based on the desirability, in the general interest as well aell as that of the parties themselves, that litigation should not drag on forever and that a defendant should not be oppressed by successive suits when one would do. That is the abuse at which the rule is directed.
08. The examination of the successive decisions after Hendersen v. Hendersen (supra) reveals that, the courts have gone to the extent to declare any such new issues, which the litigants could have put forward for decision on the first occasion but failed to raise, being brought, as an abuse of the process of the court. There is plethora of cases which is evident to that proposition and of which below are some which reflect the trend of the English court after the rule in Hendersen v. Hendersen (supra).
09. Somervell LJ in Greenhalgh v Mallard [1947] 2 ALL ER 255 at 257) held that;
‘issues or facts which are so clearly part of the subject matter of the litigation and so clearly could have been raised that it would be an abuse of the process of the court to allow a new proceeding to be started in respect of them’
“The second question depends on the application of a doctrine of estoppel, namely res judicata. Their Lordships agree with the view expressed by McMulin J, that the true doctrine in its narrower sense cannot be discerned in the present series of action, since there has not been, in the decision in no. 969, any formal repudiation of the pleas raised by the appellant in no. 534. Nor was Choi Kee, a party to no. 534, a party to no. 969. But there is a wider sense in which the doctrine may be appealed to, so that it becomes an abuse of process to raise in subsequent proceedings matters which could and therefore should have been litigated in earlier proceedings.” (Emphasis added)
‘In my judgment, it is important to distinguish clearly between res judicata and abuse of process not qualifying as res judicata, a distinction delayed by the blurring of the two in the court’s subsequent application of the above dictum. The former, in its cause of action estoppel form, is an absolute bar to relitigation, and in its issue estoppel form also, save in “special cases” or special circumstances’. See Thoday v Thoday [1964] 1 ALL ER 341 at 352, [1964] P 181 at 197 – 198 per Diplock LJ and Arnold v National Westminster Bank plc[1991] 3 ALL ER 41, [1991] 2 AC 93. The latter, which may arise where there is no cause of action or issue estoppel, is not subject to the same test, the task of the court being to draw the balance between the competing claims of one party to put his case before the court and of the other not to be unjustly hounded given the earlier history of the matter. Thus, abuse of process may arise where there has been no earlier decision capable of amounting to res judicata (either or both because of the parties or the issue are different) for example where liability between new parties and/or determination of new issues should have been resolved in the earlier proceedings. It may also arise where there is such an inconsistency between the two that it would be unjust to permit the later one to continue” (See: [1999] EWCA Civ 944; [1999] 4 ALL ER 217 at 225[1999] EWCA Civ 944; , [1999] 1 WLR 1482 at 149.)
Auld LJ continued:
“In my judgment, mere “re-litigation, in circumstances not giving rise to cause of action or issue estoppel, does not necessarily give rise to abuse of process. Equally, the maintenance of a second claim, which could have been part of an earlier one, or which conflicts with an earlier one, should not, per se, be regarded as an abuse of process. Rules of such rigidity would be to deny its very concept and purpose. As Kerr LJ and Sir David Cairns emphasized in Bragg’s case [1982] 2 Lloyd’s Rep 132 at 137 and 138 – 139 respectively, the court should not attempt to define or categorize fully what may amount to an abuse of process; see also per Stuart Smith LJ in Ashmore v British Coal Corp [1990] 2 ALL ER 981 at 988, [1990] 2 QB 338 at 352. Bingham MR underlined this in Barrow v Bankside Members Agency Ltd [1996] 1 ALL ER 981 at 986, [1996] 1 WLR 257 at 263, stating that the doctrine should not be “circumscribed by unnecessary restrictive rules” since its purpose was the prevention of abuse and it should not endanger the maintenance of genuine claims; see also [1996] 1 ALL ER 981 at 989, [1966] 1 WLR 257 at 266 per Saville LJ. Some additional element is required, such as a collateral attack on a previous decision (see e.g. Hunter v Chief of Constable of West Midlands [1981] UKHL 13; [1981] 3 ALL ER 727, [1982] AC 529, Bragg’s case [1982] 2 Lloyd’s Rep 132 at 137 and 139 per Kerr LJ and Sir David Cairns respectively and Ashmore v British Coal Corp) some dishonesty (see eg Bragg’s case at 139 per Stephenson LJ and Morris v Wentworth Stanley [1999] 2 WLR 470 at 480 and 481 per Potter LJ) or successive actions amounting to unjust harassment (see e.g. Manson v Vooght [1998] EWCA Civ 1665; [1999] BPIR 376”) (S.ee [1999] EWCA Civ 944; [1999] 4 ALL ER 217 at 227 – 228[1999] EWCA Civ 944; , [1999] 1 WLR 1482 at 1492.)
“what is now taken to be the rule in Henderson v Henderson has diverged from the ruling which Wigram V C made, which was addressed to res judicata. But Henderson v Henderson abuse of process, as now understood, although separate and distinct from cause of action estoppel and issue estoppel, has much in common with them. The underlying public interest is the same: that there should be finality in litigation and that a party should not be twice vexed in the same matter. This public interest is reinforced by the current emphasis or efficiency and economy in the conduct of litigation, in the interest of the parties and the public as a whole. The bringing of a claim or the raising of a defence in later proceedings may, without more, amount to abuse if the court is satisfied (the onus being on the party alleging abuse) that the claim or defence should have been raised in the earlier proceedings if it was to be raised at all. I would not accept that it is necessary, before abuse may be found, to identify any additional element such as collateral attack on a previous decision or some dishonesty, but where those elements are present the later proceedings will be much more obviously abusive, and there will rarely be a finding of abuse unless the later proceedings involves what the court regards as unjust harassment of a party. It is however; wrong to hold that because a matter could have been raised in early proceedings it should have been, so as to render the raising of it in later proceedings necessarily abusive. That is to adopt too dogmatic an approach to what should in my opinion be a broad, merits based judgment which takes account of the public and private interests involved and also takes account of all the facts of the case, focusing attention on the crucial question whether, in all the circumstances, a party is misusing or abusing the process of the court by seeking to raise before it the issue which could have been raised before. As one cannot comprehensively list all possible forms of abuse, so one cannot formulate any hard and fast rule to determine whether , on given facts, abuse is to be found or not. Thus while I would accept that lack of funds, would not ordinarily excuse a failure to raise in earlier proceedings an issue which could and should have been raised then, I would not regard it as necessarily irrelevant, particularly if it appears that the lack of funds has been caused by the party against whom it is sought to claim. While the result may often be the same, it is my view preferable to ask whether in all the circumstances a party’s conduct is an abuse than to ask whether the conduct is an abuse and then, if it is, to ask whether the abuse is excused or justified by special circumstances. Properly applied, and whatever the legitimacy of its descent, the rule has in my view a valuable part to play in protecting the interests of justice”.
“The object of the rule of res judicata was said by Lord Blackburn in Lockyer v Ferryman (1872) 2 App Cases 519 at 530 to be put on two grounds – the one public policy, that it is in the interest of the state that there should be an end to litigation, and the other, the hardship on the individual that he should be vexed twice for the same cause. Thus, as Somervell LJ stated in Greenhalgh v Mallard [1947] 2 ALL ER 255 AT 257, the principle covers issues or facts which are so clearly part of the subject matter of the litigation and so clearly could have been raised that it would be an abuse of the process of the court to allow a new proceeding to be started in respect of them. In Brisbane City Council v A-g for Queensland [1978] ALL ER 30 at 36, [1979] AC 411 at 425 Lord Wilberforce described ‘abuse of process’ as the true basis of the doctrine, a description approved by Lord Keith in the House of Lords in Arnold Westminster Bank plc [1991] 3 ALL ER 41 at 48, [1991] 2 AC 93 at 107. What this and other cases have emphasized, of course, is that the rule does not apply to all circumstances. As Lord Keith observed in Arnold [1991] 3 ALL ER 41 at 50, [1991] 2 AC 93 at 109, one of the purposes of estoppel being to work justice between the parties, it is open to the courts to recognize that in special circumstances inflexible application of it may have the opposite result. The existence of special circumstances excluding the application of the rule was, of course, recognized by Wigram V-C himself in the passage I have quoted”.
“The principles to be derived from the authorities, of which by far the most important is Johnson v Gore Wood & Co [2002] 2 AC 1, can be summarized as follows:
Proposition ii) above seems to me to be of importance because it is one thing to say that A should bring all his claims against B in one action, whereas it is quite another thing to say that he should bring all his claims against B and C (let alone against B,C , D, E, F and G) in one action. There may be many entirely legitimate reasons for a claimant deciding to bring an action against B first and, only later (and if necessary) against others”.
“In this situation we would prefer to say that there will be no estoppel unless it appears that the matter relied upon as a defence in the second action was so relevant to the subject matter of the first action that it would have been unreasonable not to rely on it. Generally speaking, it would be unreasonable not to plead a defence if, having regard to the nature of the plaintiff’s claim, and its subject matter it would be expected that the defendant would raise the defence and thereby enable the relevant issues to be determined in the one proceeding. In this respect, we need to recall that there are a variety of circumstances, some referred to in the earlier cases, why a party may justifiably refrain from litigating an issue in one proceeding yet wish to litigate the issue in other proceedings e.g. expense, importance of the particular issue, motives extraneous to the actual litigation to mention but a few. See the illustrations given in Cromwell v County of Sac. (1876) 94 US (24 Law Ed, at p 199) (at p603)
It has generally been accepted that a party will be estopped from bringing an action which, if it succeeds, will result in a judgment which conflicts with an earlier judgment. In this respect the discussion in Brewer v Brewer [1953] HCA 19; (1953) 88 CLR 1 is illuminating. (at p603)”.
“In 1843 Wigram VC referred in Henderson to “pointsh properly belonged to the subject matter of litigation in earlier proceedings”. Some Somervell LJ (‘part of the subject matter of the litigation”) and the Full Court of Hong Kong (“necessary and proper”) echoed this approach in slightly different language. The test of reasonableness in Anshun attempted to work out the underlying principle. It can be seen to be derived from the requirement in Henderson that the point should “properly belong” to the earlier litigation coupled with the concept of vexatious and unreasonable conduct central to the exercise of the court’s powers to prevent abuse of its process.
It is therefore suggested that the extended doctrine does not prevent a party bringing forward in later litigation a cause of action not previously adjudicated upon, provided it is not substantially the same as one that has been, unless success in the new proceedings would result in inconsistent judgments”.
“CounsCounsel referred us to many manifestations of applications of the nderson rul0;rule. We fi unhelpful pful to review them all since we are attracted by the non-dogmatic approach in&#b>Johnson v. Gore Woods an reasonableness approach oach in AnshuAnshun”.
If, when the trial of an action is called on, neither party appears, the action may be struck out of the list, without prejudice, however, to the restoration thereof, on the discretion of a judge.
One of the first and highest duties of all Cous to take care that the act of the Court does no injury to any of the Suitors, and when then the expression “the act of the Court” is used, it does not mean merely the act of the Primary Court, or of any intermediate Court of appeal, but the act of the Court as a whole, from the lowest Court which entertains jurisdiction over the matter up to the highest Court which finally disposes of the case. It is the duty of the aggregate of those Tribunals, if I may use the expression, to take care that no act of the Court in the course of the whole of the proceedings does an injury to the suitors in the Court.
U.L. Mohamed Azhar
Master of High Court
At Lautoka
10.07.2019
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