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Harry v Kalena Timber Company Ltd [1999] SBHC 58; HC-CC 064 of 1993 (21 May 1999)

lass="MsoNormal"rmal" align="center" style="text-align: center; margin-top: 1; margin-bottom: 1"> HIGH COF SOLOMON ISLANDS

Civil Case No. 64 of 1993

p class=lass="MsoNormal" align="center" style="text-align: center; margin-top: 1; margin-bottom: 1"> ASERY HARRY

v

& WILLIE LIANGA AND GEORGE LILO

High Court of Solomon Islands

Before: Muria, CJ.

Civil Case No. 64 of 1993

Judgement: 21st May 1999

S. Watt for the Plaintiff

J. Sullivan for the 1st Defendant

A. Nori for the 2nd Defendant

JUDGMENT

p cl

MURIA Cspan> The second and third defendanendants have brought this application by way of Notice of Motion filed on 12th March 1999 seeking to strike out the plaintiff's claim on the ground that it discloses no causes of action. The first defendant supports the application and also rely on its own Notice of Motion filed on 25th March 1999. The two applications will be dealt with together as they both seek to strike out the plaintiff's Statement of Claim on the same ground.

lass="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> Background to the Case

class="MsoNormal" style="margin-top: 1; margin-bottom: 1">: 1">

The fdefendant applied for Timber Rights over the land between Pike Creek to Ovuzu River kver known as Ughele/Moka Land, in the Rendova Island. The Rendova Area Council dealt with the application on 3rd January 1983 and determined who were entitled to grant timber rights over the land. The Timber Rights Agreement (TRA) was signed on 6th December 1988. One of the persons named as representative of the landowners was the plaintiff. Following that, the first defendant was issued with the Logging Licence on 20th February 1989 and thereafter commenced operation.

By a letter dated 24th September 1992, Mr. Lavery a Solicitor in the Public Solicitor’s Office, Gizo who acted for the “Trustees” wrote to the first defendant giving one (1) month’s notice pursuant to Clause 30 of the TRA. By that notice the first defendant was required to make full and complete rectification of and compensation for the breaches set out hereafter. The letter enumerated the alleged breaches. In response the first defendant requested by a letter of 19th October 1992 further particulars of the alleged breaches. No further particular has ever been supplied. On 26th March 1993 the plaintiff issued a writ against the first defendant claiming permanent injunction and damages for the breaches as enumerated in the letter of 24th September 1992 from plaintiff’s solicitor. An Ex parte order was made on 26th March 1993 suspending the first defendant’s operation on Sabere Vuvere Land on Rendova Island. Further order was made on 19th August 1993 joining two Trustees, Willie Lianga and George Lilo as second and third defendants. This was obviously done as a result of the meeting of the Board of Trustees on 29th June 1993. It was at that meeting that the Board of Trustees decided to challenge the plaintiff's right to bring this action which did not have the support of the other trustees.

ass="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> Issues

The main issue raised in these proceedings is whether the plaintiff’s Statement of Claim discloses a cause of action. The extent of plaintiff's authority to bring this action in absence of the consent of the other trustees has also been raised as an issue. This is particularly important in the light of the clear disapproval by the rest of the trustees over the plaintiff’s action in this case.

Whether the plaintiff has a cause of action.

The plaintiff's claim in this case is based on Clause 30 of TRA which provides as follows:

class="Mso="MsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> “Where the company fails to comply with its obligation or is in breach of the the provisions of this agreement the landowner shall serve one (1) month’s notice requiring the company to comply with the agreement and in default the company’s operation under this agreement will be suspended until the breach is remedied or obligations fulfilled and such formal notice through the public solicitor acting as their agent, to comply with such obligations”.

As I have already noted the one (1) month’s notice issued to the first defendant was given under this clause. It will be observed that this clause firstly, requires the company to comply with the agreement. Secondly, where it has been shown that the company has not complied with any of the provisions of the agreement, the company’s operation will be suspended until the breach is remedied or its obligations under the agreement are carried out. The power to suspend obviously vests in the Commissioner of Forests. Thirdly, the notice of compliance is to be issued out by the public solicitor who acts as agent of the landowners.

In so far as the second and third defendare concerned, it has not been alleged that they were in n breach of any obligation under Clause 30. The alleged breaches were directed at the first defendant. Again when one turn to the Statement of Claim, no cause of action has ever been pleaded against the second and third defendants even after they were joined as defendants. There was no amendment to the Writ and Statement of Claim to include them as defendants. The matter proceeds on the understanding that they were joined as defendants. Even if it were so, the plaintiff has not pleaded any cause of action against the two defendants at all.

Thus at the close of the pleadings no cause of action whatsoever was pleaded against the second and third defendants and as such there is presently no cause of action against them.

As to the first defendane claim against it was in respect of alleged breaches of the TRA relying on Cla Clause 30 of that Agreement. The reports made following the alleged breaches of the TRA confirmed that there were breaches committed by the first defendant. See the Reports by David Nagu, Forestry Officer (TCU) made on 22nd September 1992 and 4th November 1992, by the AFO (Ag) (TC) made on 26th October 1993 also from the Forestry Division and by one Brent Tegler made on 15th August 1995 who was the Environment Officer for the Western Province.

Ins of Clause 30, the breaches having been identified were brought to the notice of thef the company. Once the breaches were confirmed, the Commissioner of Forests acted upon them, ordering suspension of the first defendant’s operation effective from 12th November 1992. It would appear from the Report by the AFO (Ag) that the company has taken steps to remedy the breaches. That AFO’s Report made following the Order of the Court, recommended that the company must continue to take steps to improve its operations.

The plaintiff's action was based on breaches of the TRA.e are materials on the file file, sufficiently capable, in my view to show a cause of action against the first defendant in this case, based on the alleged breaches of the TRA alone. Whether they can succeed or not is not for the court to say at this stage, suffice, of course, to say that if the action is one which is “obviously unsustainable” then the court would not allow the case to proceed. I think, however, it would only be obviously unsustainable if there was no material to support that alleged breaches at all. Attorney General of Duchy of Lancaster v L & NW Rly [1892] 3 Ch. 278. In this case, the Reports do contain materials, which give the plaintiff a good ground to continue the action against, at least, the first defendant.

Should the plaintiff as a trustee bring this action<

[1988-89] SILR 78 and Luke v South Kensington Hotel Co. [1879] UKLawRpCh 96; [1879] 11 Ch D 121, that is to say that one or some only of the trustees cannot act without the agreement of the remainder of the trustees. However I accept Mr. Watts argument, that like in those cases the question as to the position of the trustees ought to be fully considered at the trial and there is good reasons for that. The position of the plaintiff as a representative of his tribe in a land related dispute as in this case is closely link with his Customary rights in the land. Thus, the regime under which the plaintiff draws his authority in such a situation cannot simply be meted out against the provisions of the Trustee Act, 1925 of the United Kingdom, lest we may be placing one source of law, i.e. an Act of UK Parliament of general application, above another source, i.e. customary law which is an equal source of law in this country. Allied to that consideration would be the argument raised by Mr. Watt regarding the terms of the trusteeship or representation placed upon the plaintiff so as to project the interests if those whom he represents. That can only be fully appreciated at the trial and not in an application such as the present one.

Conclusion

Thus on the material before the Court I am satisfied that thintiff has a cause of actioaction to pursue against the first defendant. There is no cause of action against the 2nd & 3rd defendants and the order joining them as parties to this action must be discharged.

p class="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> Order

The action to proceed to trial against the first defendant.

Costs of 2nd and 3rd

(GJB Muria)

CHIEF JUSTICE


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