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Kuve v Ragoso [1999] SBHC 79; HC-CC 232 of 1999 (16 August 1999)

HIGH COU SOLOMON ISLANDS>

Civil Case No. 232 of 1999

MARLONE KUVE

v>

class=lass="MsoNormal" align="center" style="text-align: center; margin-top: 1; margin-bottom: 1"> HERRICK RAGOSO
(a (as representative of Zerolyn Viuru, Melton Jona,
Jeddie Alu and Lorraine Boso),
BAVA ISLAND DEVELOPMENT COMPANY LIMITED
& HAPPY ISLET LOGGING COMPANY LTD

High Court of Solomon Islands
(Lungole-Awich, J.)
Civil Case No. 232 of 1999

class="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> Date of Hearing: 4 August 1999
of Judgment: 16 August 199t 1999

Mr. P Lavery for taintiff /Applicant
Mr. A Nori for the Defendants/Rnts/Respondents

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

>

(LUNGOLE-AWICH, J.):- The Background and the Application: The facts put forward by both parties in this application for interlocutory injunction were fairly straight forward. What remained for ascertaining were deductions from the facts and conclusions of law therefrom so as to determine whether the strength of the plaintiff's case considered together with the defence can be regarded as one establishing serious triable issues. The plaintiff alleges that he and others that he represents were selected to be trustees of Bava tribe, to hold land parcel No. 079-006-4 on Bava Island, Vella Lavella, for the tribe. He contends that he and those others are entitled to be registered under s:214 of the Lands and Titles Act, Cap. 133 in the Laws of Solomon Islands, as the statutory trustees for the land. He says that they were not registered, instead the first defendant and others he represents, were registered as the statutory trustees. The defendants have embarked on cutting down trees and selling them overseas. The plaintiff complains that the money received by the first defendant is not being properly applied for the benefit of the trust. In his writ of summons, the plaintiff seeks the final relief of declaration that he and those he represents are the rightful trustees, and that they are therefore the ones entitled to be registered as trustees. He also seeks injunction to restrain the defendants from receiving money of the trust, and damages for breach of the trust and other incidental reliefs.

The second defendant is a company formed by the first defendant for the purpose of carrying on the logging operation and exporting the logs. It obtained the necessary licence and engaged the third defendant to carry on the actual logging and selling of the timber logs overseas.

The Defendant's Reply

The defendants have considerably narrowed the issues. In the affidavit filed on their behalf, they have admitted the following: That the first defendant and those he represents were not selected trustees, but that because of disagreement among the people of Bava tribe as to who should be trustees, the first defendant and those he represents have been authorised to hold the land parcel in trust while the tribe decides on who should be trustees. That they have conducted logging operations through the second and third defendants, and have distributed money and benefits. They contended, however, that they distributed the money and benefits only to the rightful beneficiaries and that all that they have done had been authorised at meetings held by the tribe. They have also contended that the plaintiff has no interest in the land because he does not belong to Bava tribe.

Requirements for Interlocutory Injunction

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For an interlocutory injunction to be ordered, there must be a cause of action in the case, the plaintiff applicant must, by affidavit, establish triable issue or issues of facts and law or of law only if the facts are common ground. He must also show why it is necessary to have interlocutory injunction. The purpose of interlocutory injunction order is to keep matters in status quo while the case proceeds to determination. It is an order to preserve the subject matter of the case while the case proceeds. In this jurisdiction several cases have been considered and several have been decided on the question as to when interlocutory injunction may be ordered. We have accepted and adopted the rules as stated in the American Cyanamid Co. -v- Ethicon Ltd [1975] UKHL 1; [1975] AC 396 [1975] 2 MR 316 see the judgment of my learned brother, Sir John Muria CJ, in the High Court case, John Wesley Talasasa -v- Attorney General and Others, High Court Civil Case No. 35 of 1995. At pages 6 and 7 Sir John Muria stated:

&quottest in Beecham Group Ltup Ltd -v- Bristol Laboratories Pty Ltd [1968] HCA 1; [1968] 118 CLR 618 that the plaintiff has to show that there is probability that at the end of the trial of the action lie will be entitled to relief is inapplicable to the circumstances of Solomon Islands and should not be applied ..........

In the American Cyan Cyanamid case, Lord Diplock rejected the use of expressions such as 'probability of success', 'strong prima facie case' because such expressions lead to confusions."

The Beecham rejected by Sir John Muria CJ was decided on appeal to the High Court of Australia. Other well known cases in this jurisdiction are: Allardyce Lumber Company Ltd and Others -v- Nelson Anjo Court of Appeal Civil Appeal No. 8 of 1998, Gandly Simbe -v- East Choiseul Area Council and Others, Court of Appeal Civil Appeal No. 8 of 1997, and Hitukera -v- Hyundai Timber Company Ltd and Maepeza, High Court Civil Case No. 132 of 1992. It is not necessary that the Court should be satisfied that if the case went to trial only on the facts as presented for the application, the plaintiff applicant would be "entitled to relief." That old view expressed in Preston -v- Luck [1884] 27 Ch D497 is no longer the guiding rule. It is also no longer the rule that the Court is required to find that a prima facie case has been established by the plaintiff applicant - see Smith -v- Grieve [1924] 1 KB 655 criticised in the judgment of Lord Diplock in the American Cyanamid case [1975] 2 WLR at page 322. What is required is that on the affidavits before Court, serious triable issue is disclosed. Of course that requires some amount of plausible evidence. Affidavits filed by the applicant must provide the evidence.

Determination

class="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> While the defendants by their forthright affidavit have considerably reduced the contentious issues of fact, I do not accept that they have eliminated them altogether. Issues still remain as to whether the plaintiff is entitled to appointment as trustee or agent of some sort, in which case there would be no need for temporary custodians who the first defendant and those he represents say they are. I think that is a question of how, in custom, a person may be appointed to take care of tribal assets. Further inquiry into that through trial is called for. The plaintiff has not specifically mentioned the importance of customary manner of appointing trustee or representative, and whether that was the way he was appointed, nevertheless he has raised the issue that the tribe appointed him and those he represents to be trustees of the interest of the tribe in the land, parcel No. 0790-006-4. Issues also remain as to the manner in which the money of the trust is to be distributed and whether the plaintiff is entitled to receive any. Those remain issues even if I were to accept the evidence of the defendants that the first defendant did not breach the instruction given to them by some of the members of the tribe at meetings held. The defendants may consider that their evidence against that of the plaintiff is overwhelming, but I think some issues remain proper to be referred to full trial, so as to resolve some of the lingering uncertainties before such an important conclusion is reached. It is to be remembered that evidence at this stage is by affidavit, it is incomplete and untested by cross-examination as would otherwise be the case at trial.

[1979] FSR 466 at Page 474. The words of Megarry VC quoted are:

"The prospects of the plaintiff's success arss are to be investigated to a limited extent, but they are not to be weighed against his prospects of failure. All that has to be seen is whether the plaintiff has prospects of success which, in substance and reality, exist. Odds against success no longer defeat the plaintiff, unless they are so long that the plaintiff can have no success, but only a hope. If his prospects of success are so small that they lack substance and reality, then the plaintiff fails, for he can point to no question to be tried which can be called 'serious' and no prospect of success which can be called 'real'."

The Order Granted

class="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> In my vihe plaintiff has succeeded in establishing some triable isse issues sufficient to warrant an order for the preservation of the assets of the tribe while the case proceeds to final determination. 1 also consider that there is no evidence before me from which I may conclude that compensation will at the end of the trial be adequate remedy for the plaintiff in the event that he is successful in his claim, in which case 1 would exercise discretion and refuse to order interlocutory injunction. On the contrary, there is some. evidence that suggests that monetary relief may riot be adequate redress because it remains a real question as to whether there will be money available in the hands of the defendants to meet any monetary relief in the event of such an order being made at the end of the trial. The plaintiff and the defendants do not disagree as to whether logging should proceed, they disagree only as to whether the plaintiff or the defendants should be in charge and as to how much he is to share in the proceeds or at all.

I have considered another factor in the case. Even if the plaintiff succeeds in the end, he and those he represents will be entitled to only part of the proceeds of the logging business. From the affidavit of Mr. Litigate, even if it is still to withstand the test of full trial, it appears that there are many other tribes - people of Bava tribe who are happy with the way the money from the logging operation is being applied. It is therefore fair that any injunction I order should only affect part of the money of the tribe.

During the hearing I asked the defendants whether theyd give undertaking tong to hold some money until determination of the case, the defendants offered undertaking to hold 5% of the 45% due to the tribe. 1 then asked the plaintiff whether he would accept the undertaking given by the defendants. Counsel for the plaintiff was not able to take instruction on the matter immediately. Today before delivering this judgment 1 inquired about the position of the plaintiff, unfortunately both the plaintiff and his solicitor were not in attendance in Court. If the plaintiff accepted the undertaking offered by the defendants, I would not proceed to order interlocutory injunction, but would hold the defendants to their undertaking. I now proceed on the basis that the plaintiff did not accept the undertaking offered and I now order interlocutory injunction requiring the first and second defendants to pay into interest bearing trust account of the solicitors for both sides, sums equal to 7% (seven-percent) of the gross proceeds of the 45% receivable by the first and second defendants for the benefit of the tribe. The 7% is to be retained from each payment made. The order I have made does not stop the defendants from continuing to apply some of the proceeds accruing to the tribe in the normal honest way expected of the defendants by the tribe. There is no injunction as to 93% of the 45% receivable by the first and second defendants.

The rest of the orders applied for by the plaintiff are misconceived, most of them such as rendering records for inspection, and account of trees felled so far, are matters for pleading in the normal course. The application succeeds only partly. The ex parte order of 6.7.1999 have of course expired and the orders I made on 4.8.1999 are now replaced by the orders in this judgment. Costs are to follow event in the full trial.

The question of security for damages that the defendants may suffer in the event that the plaintiff loses his case in the end, was not raised, but I considered it. In the circumstances of this case it is unlikely that the injunction order I have made will occasion losses to the defendants. I make no order as to security or undertaking for damages.

. Nori, learned counsel for the defendants respondents presented written submissions complete with case authorities that he considered are applicable. Mr. Bravery, learned counsel for the plaintiff applicant asked the Court to disregard them, he said, because the authorities were not for consideration at this stage. He did not present written submissions on his part. Far from what Mr. Bravery said, Mr. Nori's submissions were very much relevant. In the submissions, Mr. Nori pointed out that the Court was to consider whether on the facts before it the plaintiff had, in his case, disclosed cause of action, and in his affidavit sufficiently raised contentious issues of facts to warrant the conclusion that there are real triable issues which could lead to determination of the plaintiff's right to relief. Then he proceeded to submit that nothing of a triable issue was left of the plaintiff's case. Mr. Nori's submissions were good examples, especially to newer members of the bar, as to what learned and good submissions expected of counsel are. It is of course a different matter as to whether counsel succeeds or not on the submissions; one thing is certain though, such good submissions are of great assistance to Court. I am grateful to Mr. Nori for his effort.

Sam Lungole-Awich
Judge


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