Development Bank of Kiribati v Naike [2006] KIHC 31; Civil Case 48 of 2004 (23 February 2006)

IN THE HIGH COURT OF KIRIBATI
CIVIL JURISDICTION
HELD AT BETIO
REPUBLIC OF KIRIBATI

High Court Civil Case No. 48 of 2004

Between:

DEVELOPMENT BANK OF KIRIBATI
Plaintiff

And:

TEBOU NAIKE
1st Defendant

MIIRI ERIA
2nd Defendant

For the Plaintiff: Ms Batitea Tekanito
For the 1st Defendant: Mr Aomoro Amten
For the 2nd Defendant: Mr Glenn Boswell

Date of Hearing: 23 February 2006

JUDGMENT
(Ex Tempore)

The plaintiff has tendered, by consent, a loan agreement, guarantee and request for salary deduction form. Judgment has already been entered against the first defendant, the principal debtor for $4,082.82 and Mr Amten was given leave to withdraw.

The action has continued against the second defendant, the guarantor. The guarantee form is blank except for two signatures of the guarantor and the date 12-1-2000. Nothing else has been filled in. To connect the guarantee with the loan Ms Tekanito has relied on a request for deduction of salary. This does have the name of Tebou Naike on it and a loan account number: it is signed by the guarantor. Unfortunately the officer who handled the loan is no longer with the Bank. Mr Tekiera could give evidence only of the normal practice with regard to guarantors, not what happened in this transaction.

Mr Boswell appeared for the second defendant but had few instructions. His client is on Abaiang.

On the evidence before me – and Ms Tekanito has told me she has no other – I could not be satisfied even on the balance of probabilities that the plaintiff has proved that the guarantor is liable under this guarantee.

There will be judgment for the defendant.

THE HON ROBIN MILLHOUSE QC
Chief Justice