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Lupa Development Co Limited v Kongu Ngaloso Timber Co Ltd [2001] SBHC 41; HC-CC 110 of 2001 (4 July 2001)

IN THE HIGH COURT OF SOLOMON ISLANDS<

Civil Case No: 110 of 2001

LUPA DEVELOPMENT CO. LIMITED

&

GOLDEN HARVEST CO. LIMITED

v

KONGU NGALOSO TIMBER CO. LIMITED

&

OMEX LIMITED

Before: F.O. Kabui, J

Civil Case No: 110 OF 2001

Hearing: 29th June 2001

Judgment: 4th July 2001

C. Ashley for the Plaintiffs

Mrs. M. Samuel for 1st Defendant

J. Katahanas for 2nd Defendant

JUDGMENT

(Kabui, J): By Notice of Motion filed on 26th June 2001, the 1st Defendant seeks the following –

1. &&nsp;; Tspt tha requiremenrement for service be abridged.

2. &nbssp; That 1st and 2nd Plaintiffs’ Action filed herein be struck out for failing to disclose any reasonable cause of ctionp; 3. & p;&nssp; Isp; In the the alternative, that the Interim Order of this Court dated 7th of June 2001 be discharged upon the grounds set forth in the Affidavit of d Kitnd fin the 1the 19thth June 2001.

4. &nbbsp;& &nsp; Csp; Costs for this applonation to bne by the Plaintiffs. nbsp;

5. &&nsp; &bsp; &nbs; &nbss;&nbny further or such such orders that this Court deems fit to make.

The Facts

The Lupa Development Co. Limited (the 1st Plaintiff) and Golden Harvest Co. Limited (the 2nd Plaintiff) are the Plaintiffs in this case. They filed a Summons and a Statement of Claim against the 1st and the 2nd Defendants on 6th June 2001. The Defendants are Kongu Ngaloso Timber Co Limited and Omex Limited. On the same day, the Plaintiffs also filed an Ex parte Summons for ex parte injunctive orders. I granted the Orders sought on 7th June 2001. The 1st Plaintiff holds a Logging Licence No. TIM 2/83 issued by the Government permitting it to fell and remove timber from its Concession Area. By an Agreement signed on the 13th November 2000, the 2nd Plaintiff agreed to enter the 1st Plaintiff’s Concession Area and to undertake logging operation therein under the terms of that Agreements. The Concession Area is one–third of the area applied for by the 1st Plaintiff and granted by the Marovo Area Council in 1995 leaving out two–thirds of the area. In the meantime, the 1st Defendant was issued with Licence No. A1003 dated 10th October 2000 covering Kongu Ngaloso land stretching from Tetekarovo point to Patusora Point. This Licence was issued by the Government after the due completion of the timber rights acquisition procedure stipulated in the provisions of the Forest Resources and Timber Utilization Act (Cap. 40). The Marovo Area Council made the determination on 12th May 1998. This Area Council determination was appealed by Mr Tutua on 16th June 1998 and later dismissed by the Western Customary Land Appeal Court on 17th May 2000. There was no appeal to the High Court. There appears to be another appeal by Mr. Riringi of the Lupa tribe which appears to have gone stale.

The Plaintiffs’ Case

The Plaintiffs' case is based upon the“BR1” attached to Bexter Robert’s affidavit filed oled on 2nd May 2001 in Civil Case No. 21 of 1997. This map shows the 1st Plaintiff’s Concession Area as being from a place named Vao in the south to a line to the north which lies south of the Penjuku River. The western boundary lies to the west and the eastern boundary lies east but west of Mt. Mariu. This area within these boundaries is the 1st Plaintiff’s Concession Area and being the one – third allocated to it by the Marovo Area Council in 1995. Counsel for the Plaintiffs, Mr. Ashley, argued that the terms of the exparte order granted on 7th June 2001 were to preserve the rights of the Plaintiff’s within the 1st Plaintiffs’ Concession Area as understood by the Plaintiffs. He pointed out that affidavit evidence filed by Mr. Baxter Robert on 6th June 2001, confirmed that the Defendants had felled 13 large trees south of the Penjuku River approximately ten metres from that river were within the 1st Plaintiff’s Concession Area. <

The Defendants' case is based upon the map attach Mr. Simeon’s affidavit t filed on 23rd May 2001 in Civil Case No. 21 of 2001. In his affidavit he said the boundaries of Kongu Ngaloso land began at a place named Patusora in the south – west and thence along a line stretching eastwards towards Mt Mairu and thence along a zigzag line west of Mt Mariu northwards and thence northwards towards Tetekarovo. The map itself shows Patusora to Seko being shaded and an unshaded area between Seko to Tetekarovo. What appears to be a similar map was attached to Mr. Kituru’s affidavit filed on 19th June 2001. The map also shows a place named Patusora to Seko being shaded and an unshaded area between Seko to Tetekarovo. The southern boundary of Kongu Ngaloso land begins at Patusora and runs in an easterly direction just slightly towards Mt. Mariu. Counsel for the 1st Defendant, Mrs. Samuel argued that in the first place, the Plaintiffs’ Statement of Claim did not disclose any cause of action and should be struck out. Secondly, she argued that the facts did show that Kongu Ngaloso land was excluded from the 1st Plaintiff’s Concession Area and so the Plaintiffs would have no case to bring to Court. On that basis, she urged me to discharge the ex parte order dated 7th June 2001. Counsel for the 2nd Defendant, Mr. Katahanas, said that he would leave the matter of indorsement of the Writ of Summons in the Court’s hands and would abide by the decision of the Court on that issue. However, Mr. Katahanas urged upon me to consider his argument that the Plaintiffs had not disclosed all the material evidence at the ex parte hearing and the fact that the 1st Plaintiff provided no undertaking as to damages. On that basis, he said, the same ex parte order should be discharged. Mr. Katahanas also attacked the terms of the ex parte order as being too wide and vague and could lead to injustice. He further argued that the Plaintiffs could only come to the High Court for protective injunctions and cited Gandly Simbe v East Choiseul Area Council & Others (Civil Appeal No. 8 of 1997). That is to say, no such application had come to the Court invoking its protective jurisdiction nor was there any evidence showing intention to do so. He argued that the Plaintiffs should not have come to court for such injunctive orders without ownership of land being sorted out first in the Local Court.

The Court’s Finding

Forms 1, 2 and 3 preceding the granting of the Timber Licence to thpan> 1st Plaintiff nor its Timber Licence No. TIM/2/83 were tendered in Court as evidence. The documents would have shown the areas by name intended to be logged by the Applicant in the Form 1 application. Forms 2, 3 and the Licence itself would have also shown the same areas by name. Mr. Berry who spoke at the Marovo Area Council timber rights hearing on 18th October 1995 on behalf of the applicant said his Company wanted to log 1663 hectares of green forest. When questioned further, Mr. Berry said the total hectares would be 1663.3 of which 332.6 hectares would be logged annually. Mr. Kituru on behalf of the Kongu Ngaloso land then objected to their land being included. He said that Kongu Ngaloso land commenced from Patusora in the south - west and stretched northwards inland to Mt Mariu and hence northwards to Tetekarovo. In the result, the Marovo Area Council only accepted one - third of the area applied for in the Form 1 application. One - third of 1663.3 hectares would have been approximately 552 hectares of land. That would have been the 1st Plaintiff’s Concession Area as determined by the Marovo Area Council on 18th October 1995. No boundaries have ever been stated in any document before this Court other than Exhibit “BR1” attached to Mr. Robert's affidavit filed on 6th June 2001 referred to above. In other words, no evidence has been tendered to say, without Exhibit “BR1” above, that the northern boundary of the 1st Plaintiffs Concession Area is the Penjuku River. Also, there is no evidence to say who drew up the boundaries in Exhibit “BR1” and whether or not these boundaries were accepted by the Kongu Ngaloso tribe whose representative objected at the Marovo Area Council hearing on 18th October 1995. That is to say, there is no evidence to say that the one - third Concession Area accepted by the Marovo Area Council on 18th October 1995 is the one demarcated by the boundaries drawn in Exhibit “BR1”. It is therefore difficult to confirm that the one - third Concession Area granted to the 1st Plaintiff does correspond with the boundaries shown in Exhibit “BR1”. Had the Kongu Ngaloso tribe agree to the boundaries shown in “BR1”, they would not be disputing them today.

One thing is however clear in the evidence before the Court. At pagf the Minutes of thof the Marovo Area Council hearing on 18th October 1995, Mr. Kituru representing the Kongu Ngaloso tribe, clearly stated the boundaries of Kongu Ngaloso land. He said the boundaries commenced at Patusora in the south - west and extending northwards to Mt Mariu and thereafter extending to Tetekarovo. Mr. Simeon in his affidavit file on 23rd May 2001 in Civil Case No. 21 of 2001 also said that the boundary of Kong Ngaloso land commenced from Tetekarovo to Patusora although Civil Case No. 21 of 2001 was to do with Mr. Nano’s ownership of land between Patusora and Seko but being within Kongu Ngaloso land. In the Marovo Area Council hearing on 12th May 1998 over the area between Patusora and Seko, Mr.Riringi at page 4 of the Minutes said that that area was within the 1st Plaintiff’s Concession Area. As regards Seko to Penjuku, he held no objection. He, however, pointed out that the whole area from Patusora to Penjuku was not totally clear of dispute if no mutual agreement was reached. Indeed, mutual agreement may have been reached for the Marovo Area Council determination on 12th May 1998 still stands although Mr. Simeon said in his affidavit that Mr. Riringi had appealed. Apart from that statement, there is no conclusive evidence on this point in this court.

lass="Mso="MsoNormal" style="margin-left:-1.0cm"> In case of the 1st Defendant, its Licence No. A10003 (Exhibit “AK1”)AK1”) clearly states that its licence would cover land from Tetekarovo point to Patusora Point. The map attached (unmarked) to that affidavit shows Patusora, Seko and Tetekarovo though Mr. Riringi had said that Patusora to Seko was within the 1st Plaintiff’s Concession Area

The Mistake

I think there was a mistake of fact in this case. This mistake arose in way. The one - thir third Concession Area allocated to the 1st Plaintiff by the Marovo Area Council in 1995 did not include Kongu Ngaloso land deliberately excluded by the Marovo Area Council. The excluded area runs from Patusora in the south – west and stretching north - west inland towards Mt Mariu and thence northwards to Tetekarovo. The phrase “north – west” should really be “northeast”. There must have been a typing error. The southern boundary of Kongu Ngaloso land is the line that runs from Patusora eastwards towards Mt Mariu and the same is the northern boundary of the 1st Plaintiff’s one – third Concession Area. This ought to be the position following the Marovo Area Council determination on 18th October 1995. The fact however is that according to Exhibit “BR1”, the northern boundary of the 1st Plaintiff’s Concession Area is the Penjuku River which is well beyond Patusora in the north. This Penjuku River as the northern boundary of the 1st Plaintiff’s Concession Area is wrong because it does not correspond with the boundaries of Kongu Ngaloso land given at the Marovo Area Council hearing on 18th October 1995 and were accepted by the Area Council to be excluded from the 1st Plaintiff’s Concession Area. Civil Case No. 21 of 1997 arose because of this mistake. Mr. Riringi being a member of the Lupa tribe has land interests in and around Guave Point and generally in the area between Patusora and Seko. Mr. Riringi’s land interest in and around Guave Point arises from the land case between himself and Simeon Nano in the Marovo Local Court in 1982 and later in the Western Customary Land Appeal Court. Mr. Riringi won in both decisions. However, his land interest is not extensive as Simeon Nano of the Kongu Ngaloso tribe had disputed Mr. Riringi’s boundaries. This dispute became the dispute in Civil Case No. 21 of 1997. Mr. Riringi’s interest again came to the fore at the timber rights hearing conducted by the Marovo Area Council on 12th May 1998. Mr. Riringi did not succeed but reserved his right to dispute the Marovo Area Council’s determination. Although Mr. Kituru in his affidavit filed on 19th June 2001, said Mr. Riringi had appealed to the Western Customary Land Appeal Court, there is no evidence to prove that fact, as I have said.

The True Boundaries

Clearly, the 1stup>st Plaintiff’s Concession Area begins at Vao in the south and stops at Patusora to the north. Its Licence TIM2/83 must necessarily cover that area only being the one - third Concession Area granted by the Marovo Area Council on 18th October 1995. Members of the Lupa tribe must be assumed to be the owners of the land between Vao and Patusora, as against the members of the Kongu Ngaloso tribe subject to any exceptions that may arise. Likewise, members of the Kongu Ngaloso tribe are assumed to be the owners of the land between Patusora to Tetekarovo through Seko also subject to any exceptions that may arise. In customary land tenure system, individuals may own one or more areas of land within land owned by another tribe for reasons recognised and accepted in custom. I say ownership is assumed because in both cases, the determination of the persons lawfully entitled to grant timber rights was done under the provisions of the Forest Resources Timber Utilization Act (Cap. 40) by the Marovo Area Council not being a Court (See Gandly Simbe v East Choisuel Area Council, Eagon Resources Development Company Limited, Steven Taki and Peter Madada Civil Appeal No. 8 1997 at 6) In the case of the 1st Plaintiff, there is no evidence of an appeal to the Western Customary Land Appeal Court. In the case of the 1st Defendant, there is hearsay evidence of an appeal but no documentary evidence of that appeal itself. What then is the position regarding ownership of land? One position is that since there is no appeal to the Western Customary Land Appeal Court, ownership of land remains undetermined. The other position is that upon the expiry of the statutory one month period, land ownership, vests automatically in the persons lawfully entitled to grant timber rights as set out in Forms 2 and 3. Gandly Simbe’s case on appeal cited above appears to favour the first position. Its practical effect in this case is that if either the Lupa tribe or Kongu Ngaloso tribe should wish to find out which of them owns Lupa land or Kongu Ngaloso land as the case may be, it has to invoke the jurisdiction of the Chiefs first and then the Local Court and the Customary Land Appeal Court whichever is the case. A situation may arise where for example, a palm oil project is being proposed for the logged areas and the foreign investor and the Government or the Provincial Government wishes to find out who the landowners are for the purposes of negotiation and rental payment. In custom, the tribe that owns the land also owns the trees standing on that land. On that basis, the Area Council determination can be taken as evidence of ownership in any hearing before the Chiefs or before the Local Court etc. The protective jurisdiction of the High Court may well be invoked also if the need arises. The effect of the second position is that if there is no appeal within the statutory one month period, then the assumption is that the persons who are lawfully entitled to grant timber rights and whose names are set out in Forms 2 and 3 are the landowners on behalf of their tribe.

This cannot be the case because ownership in customary land cannot be determined by defaulting in the appeal procedure in section 10 of the Forest Resources and Timber Utilization Act. In my view, I would prefer the first position it is in line with the Gandly Simbe's case on appeal cited above. The question of ownership does not arise where there is an appeal to the Customary Land Appeal Court because that Court would determine final ownership of land.

In logging related cases, action for trespass is usually brought agains logging operator btor by persons who believe their land is not included in the operator’s licence or vice versa where the logging operator sues for trespass against persons who often enter the logging camp and commit unlawful act against the operator. Such cases usually arise from claims by third parties who are not parties to the timber rights agreement or objectors at the timber rights hearing. In such cases, injunctions may be granted but if the issue to be tried is ownership of customary land, the High Court would have no jurisdiction to determine ownership. (See Allardyce Lumber Company Limited v Nelson Anjo (Civil Appeal No. 8/1996) affirmed in Gandly Simbe’s case on appeal above. There is however the possibility that pending the determination by the Local Court, if ownership is in issue, the High Court may, depending upon the circumstances, grant an interlocutory injunction restraining entry on, felling and removing of timber from the land being under dispute (See Gandly Simbe’s case on appeal above at page 23). Whilst the result of taking such a step by the High Court may appear to be harsh upon a logging operator, such a step can be taken if the circumstances of the case do warrant it to be taken.

class="Mso="MsoNormal" style="margin-left:-1.0cm">

class="Mso="MsoNormal" style="margin-left:-1.0cm"> Th effect of my finding is that the 1st Plaintiff’s Concession Area doea does not cover the areas of land north of Patusora to Seko and beyond to Tetekarovo. It therefore follows that the 1st Plaintiffs’ Licence No. TIM2/83 does not cover those areas of land also. The 1st Plaintiff clearly has no cause of action. The 2nd Plaintiff must therefore suffer the same fate in term of relying upon Licence TIM2/83 as being a valid Licence for the areas of land within Kongu Ngaloso land. If there is no cause of action, there can be no basis for an interim injunction orders as were made on 7th June 2001. My finding clearly shows that the Statement of Claim filed by the Plaintiffs on 6th June 2001 has no basis in fact and in law and therefore falls. For this reason, I need not now consider and decide the various arguments advanced by Counsel for the 2nd Defendant, Mr. Katahanas. The arguments advanced by Counsel for the 1st Defendant, Mrs. Samuel were sufficient to enable me to decide this case. The 1st Defendant’s application is granted. In the result, I order that –

[1] the requirement for service be abridged.

[2] &nnbsp; the PlainPlaintiffs’ action be struck out for disclosing

;&nbssp;&nnbsp;&bsp;&nsp;&nsp; no reasonable cause of action.

[3] the interim order dated 7th June 2001 be discharged

&nnbsp;; &nsp; &nsp; and.

classNormayle="mae="margin-rgin-left:left: -1.0cm; margin-top: 1; margin-bottom: 1"> [4] costs be paid by the Plaintiffs. I order that-

te>

F. O. Kabui

Judge


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