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Sekovolomo v Eagon Resources Development Company Ltd [1999] SBHC 116; HC-CC 218 of 1992 (2 December 1999)

HIGH COURT OF SOL ISLANDS

Civil Case No.218 of 1992

STEPHEN SEKOVOLOMO

lass=lass="MsoNormal" align="center" style="text-align: center; margin-top: 1; margin-bottom: 1"> v

lass=lass="MsoNormal" align="center" style="text-align: center; margin-top: 1; margin-bottom: 1"> EAGON RESOURCES DEVELOPMENT COMPANY LIM

AND OTHERS

class="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> High Court of Solomon Islands

p class="MsoNormal" style="margin-top: 1; margin-bottom: 1"m: 1"> Before: Palmer J.

Civil Case Number 218 of 1992

class="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> Hearing: 19th November 1999

Judgement: 2nd December 1999

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S. Watt for the Plaintiff

Sol-Law for the first – fourth Defendants

Attorney-General -No Appearance.

PALMER J.: These proceedings were commenced in the High Court on 24 July, 1992 by Writ and Statement of Claim for inter alia, an injunction restraining the First Defendant, its servants or agents from entering upon KOQOATOVO LAND, and for damages for trespass and conversion against the First to Fourth Defendants. Against the Fifth Defendant, orders sought included a declaration that the licence granted to the First Defendant was invalid.

The Plaintiff sues in his representative capacity as chf the land-holding tribe, tbe, the KOQOATOVO TRIBE. In the Statement of Claim, the Plaintiff claims the KOQOATOVO TRIBE is the rightful owner in custom of KOQOATOVO LAND. The First to Fifth Defendants in contrast describe this land in their joint Defence as SOUTH MAVARA LAND and claim it was owned by the Mavara Tribe of which the Second to Fourth Defendants were either chiefs or representatives. On 24 July 1992, interim orders were obtained from this Court restraining the First Defendant from carrying out its logging operation on the said land and from paying out royalty payments to the Second to Fourth Defendants. These orders were continued in a judgment delivered on 19 October 1992, after an inter partes hearing. One of the serious issues identified by Court between the parties was the question of rightful ownership in custom over Koqoatovo land. Fortunately for the parties, they had been able to pursue that matter before the appropriate courts to conclusion; starting off with a chief's hearing at Voza Village between 7 and 9 May 1992. The Chiefs decision was not accepted by the Plaintiff and so the matter was continued before the Local Court. The said court gave judgment in favour of the Plaintiff on 7 April 1994 (see Document Number 3 in bundle marked 'SMW1' annexed to affidavit of Steve Macpherson Watt filed 5th July 1999). This was not accepted by the Defendants and the matter taken further on appeal to the Customary Land Appeal Court and finally to the High Court. On each occasion the appeals were dismissed (see Documents numbered 2 and 1 respectively in the same bundle marked 'SMW1"). The issue of ownership and boundaries of Koqoatovo Land between the Plaintiff and the Second to Fourth Defendants accordingly, had been finally determined in favour of the Plaintiff. The Plaintiff now comes to Court by way of Notice of Motion, asking this Court to make determination on the issues raised in its claim for trespass and conversion against the Defendants. It seeks orders inter alia, to have the First to Fifth Defendant's Defences struck out, as failing to disclose a reasonable cause of action, and/or, in the alternative, that they are both frivolous and vexatious.

The Plaintiff's claims in respass and conversion against the First Defendant are set set out in paragraphs 3, 5, and 11 of the Statement of Claim. The First Defendants Defence is premised essentially on the submission that the actions of the First Defendant were carried out under cover of a validly issued licence under section 5 of the Forest Resources and Timber Utilisation Act [Cap. 40] (hereinafter referred to as "the FRTUA') and that accordingly no claim for trespass or conversion could validly be made against it until the issue of ownership had been determined once and for all. In other words, the First Defendant argues the issue of a valid licence justified the entry and removal of logs in the interim period pending determination of the issue of ownership of Koqoatovo Land.

THE EFFECT OF A LICENCE

efence raised by the First Defendant raises the question, what is the effect of the lthe licence issued. Section 40 of the FRTUA actually answers this question in very plain terms:

“No licence or permit issued under this Act shall convey or be construed to convey any any night which the Government doer not have and in particular no such licence shall convey nor be construed to convey any right or authority to enter any private land nor take any action with respect to anything without the author of the owner of that land or thing.”

The crucial wordsh determine the effect of a licence fall on the words “without the authorityority of the owner of that land or thing”. The FRTUA recognises that a licence validly issued, however issued, under the said Act, can convey no right or authority whatsoever, without the authority of the owner of the said customary land. In the particular circumstances of this case, the licence issued in favour of the First Defendant could not have conferred any rights without the authority of the Plaintiff as owner of Koqoatovo land. That no authority or right had been issued is not in dispute.

THE LAW IN THE FRTUA?

The warning signs were first echoed formally by Commissioner Crome as far as 1982 in Fugui & amp; Another v. Solmac Construction Company Limited and Others (1982) SILR 100. At page 105, the learned Commissioner pointed out as follows:

“The essence of the procedure lg to the granting of a lice licence is to ensure that those persons who in custom are entitled to the timber rights, as defined in the Act, are traced and their consent given to the operation proposed by an Applicant for a licence.

… In order to trace the customary owners who are entitled to enter into any agreement relating to the granting of timber rights an elaborate procedure must be followed, all clearly laid down in the Act,…”

The learned Commissioner then set out what the procedure to be followed was. At p106 and 107, the lear learned Commissioner described what the problem was with this piece of legislation.

“All a licence amounts to, it seems, is a defence to a prosecutionution under s. 4(1) and the possibility that the true customary owners of timber rights and any persons by whose consent the exploitation of those rights can be sold or dealt in, have been traced as a result of the lengthy procedures under the Act. No guarantee is given that the contracting customary owners are the true owners.”

n lie the problem. The First Defendant at the most, could only hope that the true cuse customary landowners would be identified after the elaborate procedure had been followed. If not, then the “hapless applicant” (to borrow the term used by Commissioner Crome) is no better off than when he started out. The licence's worth to that extent is very little. It does not guarantee title to the land, or confer any rights to log against the true landowners. It confers no immunity from civil suits for trespass and conversion taken out by the true landowner. In the circumstances of this case, the First Defendant had not been given authority by the true landowner to enter Koqoatovo Land and carry out logging operations.

TRESPASS

p class="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> Has trespass been proven to the required standard? In Salmond on TorI Edition pages 38/39 the lthe learned Author states:

If the entry is intentionalis actionable even though made under an inevitable mistake take of law or fact and even though the Defendant honestly believed that the land was his own or that he had a right of entry on it. There is no foundation for the assumption that a man cannot be a trespasser unless he knows he is one.”

It cannot be denied entry in this case was iional. It was purportedly made pursuant to the licence issued by the Commissioner of Forest Resources, under section 5 of the FRTUA after an approved agreement had been made purportedly with the true landowners of Koqoatovo Land. It has since transpired that the true landowner is the Koqoatovo Tribe represented by the Plaintiff. The entry therefore was never authorised and amounts to a trespass by the First Defendant into the land of the Plaintiff.

CLAIM TRESPASS AGAINST THE SECOND TO FOURTH DEFENDANTS

This claim is based essentially on the submissiat the Second to Fourth Defendants were persons directly ly involved in the execution of the timber rights agreement which authorised the entry of the First Defendant into the Plaintiff’s land. To that extent I am satisfied the Second to Fourth Defendants are as much liable as the First Defendant for the entry into the Plaintiff’s land (see Salmond on Torts (ibid) page 38).

CONVERSION

The Plaintiff also claims damages against the First to Fourfendants for the unlawful cful conversion of its timber growing on the said land. In Salmond on Torts (ibid) the learned Author defines conversion as:

“…an act (or complex series of acts) of wilful interfe, without lawful justificaification, with any chattel in a manner inconsistent with the right of another, whereby that other is deprived of the use and possession of it.”

In thiticular instance, it is not in dispute there had been an act of wilful interference wnce without lawful justification. If anything, the defence raised was a claim of right. Unfortunately that claim of right had been proven to be wrongful. At page 106 of Salmond on Torts (ibid), the learned Author pointed out:

Although a conon is necessarily an intentional wrong in the sense anse already explained, it need not be knowingly wrongful. A mistake of law or fact is no defence to anyone who intentionally interferes with a chattel in a manner inconsistent with the right of another. He does so suo periculo and takes the risk of the existence of a sufficient lawful justification for the act; and if it turns out that there is no justification, he is just as responsible in an action of conversion as if he had fraudulently misappropriated the property.”

In the facts of this case, it cannot be denied thed been a dealing with the property (trees) of the Pla Plaintiff which is inconsistent to his rights of ownership. The fact it had been done purportedly under cover of a valid licence and timber rights agreement is no defence.

The validity of the timber licence issued inect of Koqoatovo Land must surely be in doubt after t the ownership issue had been finally determined in favour of the Plaintiff. The approved agreement obtained by the First Defendant turns out to be a worthless piece of document after all. In my respectful view a declaration must issue to the effect that the said licence is invalid. The Commissioner of Forest Resources cannot be satisfied in the circumstances of this case, the approved agreement had been obtained from the rightful owners in custom over Koqoatovo Land.

CONCLUSION

I am satisfied the following rders should be made.

1. &nbbsp;& &nsp; KEsp;KE OUT DEFENCEHEF THEF THE FIRST TO FIFTH DEFENDANTS AS FAILING TO DISCLOSE ANY REASONABLE CAUSE OF ACTION.

2. &nnsp;& Esp;R JTEGEJUDGEMENGEMENT IN FAVOUR OF THE PLAINTIFF AS &nnbsp;; &nsp; &nsp; &&nbp;; Wb:

(a) &nbp; GRANT PERT INJUNCTIONCTION RESTRAINING THE FIRST DEFENDANT, ITS SERVANTS AND AGENTS FROM ENTERING UPON THE SAID LAND.

lass=ormalle="m-left0pt; n-top: 1;p: 1; marg margin-boin-bottom:ttom: 1"> 1">

(b)  p;&nbbsp; Osp; ORp; ORp; ORDER THE FIRST DEFENDANT TO PAY ANY OUTSTANDING ROYALTIES TO THE PLAINTIFF ON BEHALF OF HIS TRIBE.

(c) & Tsp;FIRE , T SECOND, OND, THIRD AND FOURTH DEFENDANTS JOINTLY AND SEVERALLY TO PROVIDE AN ACCOUNT OF ALL TIMBER REMOVED FROM KOQOATOVO LAND.

(d) &nbssp;&nTsp; IRE FIRST, T, SECOND, THIRD, AND THE DEFENDANTS AND SEVERALLY TO PROVIDE AN ACCOUNT OF ALL ROYALTIES PAID TO AND RECEIVED BY THE SECOND URTH DANTSn>

(e) & THE FIRST DEFENDANT TONT TO PROVIDE AN ACCOUNT OF ALL TAXES OR LEVIES PAID TO THE SOLOMON ISLANDS GOVERNMENT ARISING FROM TIMBER REMOVED FROM THE SAID LAND.

(f) &nbssp;&nnbsp; Dsp; Dsp; DAp; DAMAGES FOR TRESPASS AGAINST THE FIRST TO FOURTH DEFENDANTS JOINTLY SEVERALLY, TO BE REASSESSED.

(g)  p; DsMAGES FOR OR OR UNLAWFUL CONVERSION AGAINST THE FIRST TO DEFENDANTS JOINT SEVERALLY, TO BE REASSESSED.

/p>

(h) &nnbsp;; DECLARE TARE TARE TIMBER LICENCE ISSUED IN RESPECT OF KOQOATOVO LAND TO BE INVALID.

3. &nbssp; &nsp; THE COSTS OF T E PLA PLAINTIFF TO BE BORNE BY THE FIRST TO FOURTH DEFENDANTS JOINTLY AND EVERA/span

THE COURT


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