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Lauringi v Lagwaeano Sawmilling and Logging Ltd [1999] SBHC 93; HC-CC 131 of 1997 (16 September 1999)

ass="MsoNormal"rmal" align="center" style="text-align: center; margin-top: 1; margin-bottom: 1"> HIGH COURT OF SOLOMON ISLANDS

Civil Case No. 131 of 1997

class="Mso="MsoNormal" align="center" style="text-align: center; margin-top: 1; margin-bottom: 1"> NELSON LAURINGI, RUBEN KIARA

AND KALISTO LETAKORO

v

LAGWAEANO SAWMG AND LOGGING LTD,

JOSEPH TAEGA, KUNUA, SANILE AND JOB TUITA

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High Court of Solomon Islands

Before: LUNGOLE-AWICH, J

Civil Case No.131 of 1997

Date aring: 6 September 1999

Date of Judgment: 16 September 1999

G Suri for Plaintiffs/Respondents

C Ashley for the 1st Defendant/Applicant

J Wasiraro for Defendants/Applicants

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

ass="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> (LUNGOLE-AWICH, J): The Application<: This is judgment in the application of the second defendants dated 19.7.1999, filed on 21.7.1999. The defendants asked for the following orders:

ass="Mso="MsoNormal" style="text-indent: -34.9pt; margin-left: 70.9pt; margin-top: 1; margin-bottom: 1"> “1. &nbssp; That that the plaintiff's claim laim per summons dated 30th May 1997 be dismissed with costs.

lass="Mso="MsoNormal" style="text-indent: -34.9pt; margin-left: 70.9pt; margin-top: 1; margin-bottom: 1"> 2. &nnbsp; That the interlnterlocutory orders of the court made on 25th August 1997 and subsequent variations be re fort.

3. & &nbssp; ssp; That all proceeds from sale of logs extracted from Lagwaeano tribal land by the applicants, and held in the joinountsolicifor piff and first defendantndants be paid to the applicants, without hout any dany deducteductions.

4. ;&nspp; Asternatively, the the plaintiffs provide security for damages in the sum equivalent to two thirds of the proceeds of logs extracted from Lano t landre ab s are not granted.

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5.  p;&nssp; Each parh parh party to these proceedings to bear their own costs.”

There have been nume interlocutory applications by both sides, starting with that by the plaintiffs iffs dated 19.8.1997, over 2 years ago, asking for interlocutory injunction order to stop logging operation being carried out at the time by the first and second defendants on customary land described by the plaintiffs, as Siubongi-Lagwaeano land, and other related orders. In my judgment delivered on 25.8.1997, I allowed the application. Subsequently there have been several applications to vary the orders, confirm consent terms into orders and even to have the original order discharged.

class="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> At the time oring this application on 6.9.1999, the important interlocutory orders that remained ned operative were the injunction order restraining both the defendants, their servants and agents, from carrying out logging operation on Lagwaeano-Siubongi; and the orders that both sides may jointly sell timber already felled, keep the proceeds in joint trust account, but may pay the necessary expenses. Some timber logs have since been exported and there is some money in joint trust account.

p class="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> The first defendant’s position depends very much on the position of the second, in that the first defendant company was merely engaged by the second to carry out the logging, selling and exporting of logs. The licence by which the first defendant conducted the operation was obtained under the Forest Resources and Timber Utilisation Act, Cap. 40, Laws of Solomon Islands, on the basis that the second defendants had been determined as the persons entitled to grant timber rights to a prospective licensee, the first defendant, and they have done so in an agreement with the first defendant as required under the Act. The case of the first defendant therefore succeeds or fails according to the case of the second defendants.

My decision on 25.8.1997 allowing the application of the plaintiffs and gra interlocutory injuncnjunction was based on the grounds that the plaintiffs had established a serious triable issue of customary ownership, yet to be finally determined in the Local Court, and if established, would entitle the plaintiffs to claim in trespass at the High Court. Trespass was therefore also a serious tribal issue established for final determination, but at the High Court. I decided so, notwithstanding that the second defendants had succeeded in establishing that they got themselves determined under s:8 of the Forest Resources and Timber Utilisation Act, as the persons entitled to grant timber rights and had the appeal of the plaintiffs to the Malaita Customary Land Appeal Court, the MCLAC, against the determination dismissed. The facts which I regarded as strong enough in the plaintiffs’ case to support prospect of their success at the time was that the plaintiffs subsequent to losing the timber rights appeal, commenced land ownership case before Marodo Council of Chiefs. The Council decided in favour of the plaintiffs. The plaintiffs also took the case to the Local Court; they said that the Local Court decided in their favour, the defendants did not attend. The defendants, explained to this Court that they did not recognise the Marodo Council of Chiefs and that they did not attend the Local Court because that Local Court lacked jurisdiction, they would not submit to it. I rejected the explanation. It must be mentioned here that while determination by an Area Council as to who is entitled to transfer timber rights may be an indication as to where customary ownership of the land lies, the determination, even if confirmed by Customary Land Appeal Court, is not a determination of ownership rights in customary land - see Gandly Simbe -v- East Choiseul Area Council, Eagon Resources Development Company Ltd and Others, SICOA Civ. App. No. 8 of 1997, in which the Court of Appeal approved the clear statement of my brother Palmer J on the point in a High Court case, Hyndai -v- Attorney General, HCCC No. 79 of 1993, and also what Commissioner Crome said in Fugui -v- Solmac Construction Company Ltd [1982] SILR 100.

p class="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> The Facts Now Obtaining

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There has been some recent devent to add to the material facts in this case. Parties are are now agreed that the Local Court has finally decided the question of ownership in a way that favours the second defendants; it has decided that Siubongi and Lagwaeano are not one customary land as the plaintiffs had contended, rather they are separate customary lands; the plaintiffs own Siubongi, and the second defendants own Lagwaeano. In its judgment exhibited during the application, the Local Court went as far as pointing out the boundary between the two customary lands. The result now is that the defendants’ logging operation is on Lagwaeano and not Siubongi. The plaintiffs have appealed to the Malaita Customary Land Appeal Court, the MCLAC, the notice of appeal and appeal points have been exhibited. I understand that the MCLAC will sit to hear the appeal on 30th of this month, September 1999. The second defendants have decided, without waiting for the MCLAC’s determination of the appeal, to apply to the High Court to have the orders imposing interlocutory injunction and related orders discharged.

Jurisdiction of the High Court to Grant Injunction In Customary Land Cases

Inow settled that the High Court has original jurisdiction to decide the question of i of interlocutory injunction order restraining trespass, conversion and other wrongs on or affecting customary land even though under s:254 of the Lands and Titles Act, Cap. 133 of the Laws, only the Local Court has original jurisdiction to decide the question of rights over customary land. The judgment of the Court of Appeal in Gandly Simbe -v- East Choiseul Area Council, Eagon Resources Development Company Ltd and Others, is very clear on the point. In the case the Court of Appeal upheld the judgment of my brother Palmer. J, discharging interlocutory injunction which had been obtained ex parte. The Court cited an English case, Patel -v- W.H. Smith (Eziot) Ltd [1987] 1 WLR 853; [1987] 2 All ER 569 to illustrate the Common Law rule that a landowner whose title is not disputed is prima facie entitled to injunction restraining intruders onto his land. The Court then went on to apply that rule of the Common Law to Gandly Simbe case which was about a claim based on customary ownership of customary land, except that the Court decided that the appellant's claim of ownership in the customary land was contingent and remote and not of the kind that would readily call for injunction to restrain trespass. I shall mention here that in Gandly Simbe the Court of Appeal did not say that as a general rule, for a claim in customary land to be sufficient to raise triable issue the claim must be based on a decision of the Local Court in favour of the applicant, the Court stated that in the circumstances of the Gandly Simbe case, it was justified to require a claim based on decision of the Local Court. On page 26 of the judgment the Court stated:

“In these circumstances Palmer J was plainly justified in conng that, without a favourabourable determination in the Customary Court, and in the absence of any indication of a present intention on the part of the plaintiff to seek a determination in that forum, there was, in the action instituted by the plaintiff in the High Court, no serious question to be tried concerning the validity of the timber rights agreement to which he was not a party. The result might conceivably have been different had the plaintiff undertaken in appropriate terms in the High Court to prosecute, in a court having jurisdiction in the matter, his claim on behalf of the Dali Tribe to an interest in the Kolekana 1 land; but nothing of that kind was suggested either at the hearing below or on this appeal.”

Other recent Court of Appeal cases acknowledging the jurisdiction of the High Court are: Allardyce Lumber Company Ltd and Dovele Development Company Limited -v- Nelson Anjo, SICOA, Civ. App. No.8/96 and Mega Corporation Limited -v- Nelson Kilo, and Zarihana Timbers -v- Nelson Kile, SICOA Civ. App. No. 1/97. In the former, the Court of Appeal dismissed appeal against the order of the High Court granting interlocutory injunction, the Court decided that there were sufficient facts in the plaintiff's case to support serious triable issue of rights in customary land, so as to warrant the High Court ordering interlocutory injunction restraining logging on Seqelele customary land. The plaintiff had sued in the High Court for trespass, and asked for damages and final injunction, basing his claim on rights in customary land. In the latter case, the Court of Appeal allowed appeal against High Court order refusing to discharge interlocutory injunction. The facts which convinced the Court of Appeal that interlocutory injunction order could not continue were that the second defendant had obtained timber rights determination in its favour against which there had been no appeal, and also had obtained the decision of the Council of Chiefs about ownership in the customary land. The Court of Appeal said that the facts were not such that warranted the order to continue the interlocutory injunction order, it was quashed, but not for lack of jurisdiction of the High Court.

The Law about When to G Interlocutory Injunction

The law about when courts in Solomon Islands will grant interlocutojunction order has been stan stated in many cases. We have adopted the Common Law rules as stated in the English case, American Cyanamid Company -v- Ethicon Ltd [1975] UKHL 1; [1975] CA 139; [1975] 2 WLR 316; [1975] 1 All ER 304. The starting consideration is whether the plaintiff's case as disclosed in his affidavits, and despite the replying affidavits of the defendant, discloses serious triable issue with prospect of success at the final determination; the plaintiff is not required to establish a prima facie case. The Court does not at this stage critically evaluate the evidence, that is left until the hearing for final determination. In the case, the plaintiff filed action for breach of patent and proceeded to apply for interlocutory injunction which the judge at first instance granted. The Court of Appeal reversed the decision on the ground that the plaintiff had not established prima facie case. On further appeal, the House of Lords allowed the appeal; it stated that there was no rule which required that the evidence available at the interlocutory application stage must be such that if the case went to trial on that evidence only, the plaintiff would be entitled to a permanent injunction, that is, entitled to succeed. We have applied the rules in the American Cyanamid Company case in our Court of Appeal cases such as Allardyce Lumber Company Ltd and Dovele Development Company Ltd -v- Nelson Anjo, SICOA Civ. Appeal No-8 of 1996, Mega Corporation –v-Nelson Kile and Zarihana Timbers -v- Nelson Kile, SICOA Civ. App. No. 1 of 1997 and of course in many High Court cases, notably, John Wesley Talasasa -v- Attorney General and Others - HCCC No.43/95, Forest and Another -v- Mahlon Ali and Attorney General, HCCC No. 1 of 1994, Hitukera -v- Hyundai Timber Company Ltd and Maepeza, HCCC 132/92 and Marlon Kuve -v- Herrick Ragoso and Others, HCCC 232/99.

ass="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> The rules about allowing or not, application for interlocutory injunctiony in stages. If the Court iurt is satisfied that the applicant has established serious triable issue with prospect of success, the Court proceeds to determine whether if injunction is not ordered, the damage that the applicant will have suffered by the time the case is finally determined, if determined in favour of the applicant, will not be adequately compensated for by award of money damages, or whether the damage is such that money is not at all the relief for it. If money will not be adequate compensation, the Court may allow the application and order interlocutory injunction. If money will be adequate compensation, the Court will decline to order interlocutory injunction although the applicant will have established serious triable issue. If the damage that the applicant will have suffered was such that money would not adequately compensate for, and the Court is inclined to granting injunction, the Court must consider the converse as well, that is, if the respondent should win at the final determination, whether the damage he will have suffered if the injunction had been imposed, will be such that money will not adequately compensate for or money will not be a relief at all. The Court weighs the two probable damages, balancing the disadvantages. It is really balancing the two inconveniences other than conveniences, but the adopted description of the exercise is, “the balance of convenience”. If the result is doubtful, the Court may even weigh the comparative strength of the parties’ cases. The American Cyanamid Company case suggests that if the result of comparison is doubtful, it is prudent to maintain the status quo thereby preserving the interests in the case.

In this jurisdiction logging cases on customary laesent difficult question. The trees cut down or to be be cut down for timber are trees that grow naturally, not planted; they would have grown to maturity over several decades and sometimes over a century. If the applicants’ desire is to protect the trees or the environment and not merely to contest the right to carry out the logging operation for profit for himself, and if interlocutory injunction is not ordered, and should the applicant win his case at final determination, the trees are lost and cannot be replaced for generations or at all. There is no way that his loss can be compensated for. In my view, if there is some merit in an applicants' claim to prevent logging on customary land, his possible permanent loss, arising from the particular local circumstances must be given due weight within the rules of the Common Law we have adopted. That is the spirit of Schedule 3 to the Constitution made under S:75, providing for application of the principles of the Common Law and equity in Solomon Islands, but taking into account local circumstances and customs.

Determination of the Present Application

p class=lass="MsoNormal" style="margin-top: 1; margin-bottom: 1"> In the present application do the facill sustain serious triable issue for determination? The he plaintiffs in their statement of claim have claimed that they are the owners of customary land they called Siubongi-Lagwaeano and that the defendants had and continued to trespass onto the land, they were logging on it. The plaintiffs then asked for these reliefs:

“1. der declaring that Lagwaeano is the same land as Siubongi customary land situated in d in Fataleka Constituency, North West Malaita, Malaita Province.

lass="Mso="MsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> 2. An order declaring that the plaintiffs are the tnd primary customary ownerswners of Lagwaeano or Siubongi customary lands.

4. Costand incidental to this action.

5. Further or other orders as ourt deems fit.”

Reliefs (1) and (2) are misconceived, they are in the exclusive original jurisdiction of the Local Court; and substantive appeal lies to the Customary Land Appeal Court. Appeal to the High Court is limited to questions of, “point of law other than customary law,” or “failure to comply with written requirement of procedural law” - see ss254 and 256 of the Lands and Titles Act. The High Court may also decide at first instance, the question as to whether the land is customary land or not, and so it may also decide the question on appeal from CLAC - see s:254(b) of the Lands and Titles Act. The plaintiffs’ case in this Court is therefore only in trespass for which they claim damages, permanent injunction and costs.

The facts now prevailing and upon which this Court is nowecide whether or not to cono continue or discharge the interlocutory injunction are: That the second defendants have been determined as the persons who are entitled to grant timber rights. The plaintiffs appealed to the MCLAC against the determination and lost their appeal. Now the Local Court has decided that Lagwaeano is separate from Siubongi, the consequence is that the presence of the defendants and their operation on Lagwaeano land is now not unlawful. The plaintiffs have appealed to the MCLAC on that question of ownership of Lagwaeano. They say the prospect of them succeeding on appeal is good, this Court is to maintain the interlocutory injunction on that ground. My view is that when one has lost a case of timber rights determination and has lost a case of customary ownership in the Local Court, one's case has been seriously weakened so that one’s prospect of success has been very much diminished to a mere hope, even wishful hope for success. The facts in this case are similar to the facts in the Mega Corporation -v- Nelson Kile case, except that in Mega Corporation case, the case about ownership rights had only gone as far as the Council of Chiefs, a tribunal whose decision is binding only by consent of parties. From a decision by Council of Chiefs, about ownership of customary land, should the decision not be accepted by any of the parties, the case is referred to the Local Court whose decision becomes binding unless altered by Customary Land Appeal Court. In the Mega Corporation case, the Court of Appeal was of the view that the determination of timber rights in favour of the defendants against which there had not been appeal, and the decision of the Council of Chiefs about ownership in favour of the defendants, were enough to render the plaintiffs' case without serious triable issue. In this case there are even stronger factors against maintaining the injunction orders; there has been a determination of timber rights in favour of the second defendants which has been confirmed on appeal and there has been a decision of the Local Court about ownership in favour of the second defendants; the decision of the Local Court is binding unlike the decision of the Council of Chiefs in the Mega Corporation case.

p class="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> My decision is that the facts now as altered cannot support the granting of interlocutory injunction order and therefore the order granted originally on 25.8.1997 and all subsequent orders as varied or as they obtain to date cannot be continued, they are discharged forthwith. Money held in trust account will, however, not be released until the determination of the appeal at the MCLAC. Parties are required to prosecute the appeal case now before the MCLAC with diligence. Liberty is granted to the plaintiff to reapply for interlocutory injunction in the event that the appeal is delayed because of lack of diligence on the part of the second defendants. The defendants are given liberty to apply for the release of the money held, in the event that the appeal is delayed because of lack of diligence on the part of the plaintiffs. The case is to be listed within 14 days after the appeal hearing before the MCLAC, the plaintiffs are to apply for the listing.

Jurisdiction to Discharge Interlocutory Injunction Order or Interlocutoryent Order

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Learned Counsel Mr. Suri submitted that once interlocutory order other than interim order has been granted it cannot be discharged except on appeal, and that consent order cannot be discharged. Both submission’s are not correct. It is correct that appeal against interlocutory injunction order does not require leave, but that does not mean that when the facts upon which interlocutory order was granted or consent was given and confirmed into court order, have changed, the order must, nonetheless, remain enforceable. Application may always be made to the Court of first instance that granted the order, to have the order discharged.

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Costs

The defes, the applicants, have won in their application, but the order they asked for about bout costs is that parties bear their own costs, I order so.

Delivered this Thursday the 16th day of September 1999

ass="MsoNormal" style="marg"margin-top: 1; margin-bottom: 1"> At the High Court,

Honiara.

Sam-Lungole Awich
Judge

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