Soaika v Inter-Port Trading and Agency [2016] SBHC 187; HCSI-CC 210 of 2016 (19 October 2016)

IN THE HIGH COURT OF SOLOMON ISLANDS
Civil Jurisdiction

BETWEEN:

REX SOAIKA AND AMOS TEIKAGEI -
Claimant

AND:

INTER-PORT TRADING AND AGENCY

1^st Defendant

OCEANIA TRADING COMPANY - LIMITED
2^nd Defendant

ATTORNEY GENERAL
3^rd Defendant

Date of Hearing and Judgement: 19 October 2016

Mr. J. Zama for 1^st and 2^nd defendant
Mr. E. Olofia for claimant

Applications for declaratory orders in relation to validity of felling license by Commissioner of Forests.

Brown J:

Extempore
Mr. Olofia has asked for an adjournment of these proceedings listed for trial today. It is clear from the letter given the Registrar on the 17 October that Mr. Rano, who has carriage of this matter on behalf of the claimants, is sick and unable to appear today. The Court regrets that situation but the Court must seek to control its own list. I see from the letter-head that Mr. Rano’s firm lists 2 senior associates and 2 junior associates. There is then counsel able from the firm, to represent the claimants and Mr. Olofia is here today

This matter now is of relatively narrow compass. To resolve the issues between the parties an Memorandum of Understanding was signed on the 17 July 2016 by Mr. Soaika on behalf of the Amos Groups of Hongamugava village West Rennell Island and Oceanic Trading Company.

The Namalaga land logging concession of Oceanic included it is alleged, Tehakamangoku concession of the Amos group. To resolve the differences, the MOU recognized Mr. Soaika as authorized to represent the Amos Group and be responsible for payment made by the 2^nd party, Oceanic. The MOU also accepted the assignment of Inter-port Trading and Agencies licence to log as the contractor over the Namalaga concession.

It was agreed that Rex Soaika would fully cooperation with Oceanic over the logging of Namalaga customary land area, including the disputed land to which purpose the MOU was agreed.

In consideration of that undertaking by Rex Soaika, Oceanic would make payments of various amounts detailed in the MOU to Mr. Soaika.

The MOU was signed by Rex Soaika (named as “releaser”) and Wong Lieng Ping OTC General Manager witnessed by Jefter Tuhagenga.

By the recited in the MOU, it is stated that Oceanic has invited Rex Soaika on behalf of Amos Groups to make agreement for variation for the purpose of harvesting Namalaga land concession. Such invitation has been accepted by Rex Soaika and “he decided to accept the variation for such purpose”. It is further recited;-
“Both parties now concord and believe that such agreement will help all land owners benefit without encountering any form of tension and civil problems that might potentially harm land owners relationship and their opportunities to be benefitted”

Lieng Ping Wong by statement filed 29 Sep, says further to the MOU, an amount of $100K as goodwill payment was given Rex Soaika in the presence of Jefter Tuhagenga, (the witness to the MOU).

By statement filed on that day Rex Soaika says he could not recall receipt of $ 100K, and stated such money was paid to Jefter.

In the circumstances, [notwithstanding the hearsay evidence relating to the reason the money was paid Jefter] by the supporting evidence I accept Lieng Ping Wong’s statement, for by particulars forming part of Mr. Wong’s statement, a sum of $228,069.50 was paid Rex Soaika over the period 3 May to 1 Sep 2016.

In relation to the specific land negotiation on the 17 July amounts of $ 4,000, $ 150,000 and $ 1,000 were paid to the 12 August 2016.

As a consequence of the MOU, draft orders for the consent of the court were prepared by both Parties lawyers. The Oceanic draft included a provision for export duty equivalent to 25% of the proceeds from the sale of logs to be paid the Solomon Island Government in accordance with the law. Mr. Wong states that Mr. Soaika refused to accept this part and as a result the consent draft orders were never executed.

Since these orders were envisaged after the agreement evidenced by the MOU and since moneys have been shown to have been paid by Oceanic in good faith on the basis of the MOU, I am satisfied the draft orders acknowledge and reflect the agreement signed by Rex Soaika subject to the legal requirement to meet duty obligations.

These Proceedings may be resolved by my order to effectuate the agreement between the parties, recognizing the legal obligation to pay duty from the proceeds of sale of the logs.

By draft order 29 August 2016(exhibit SR 10) an amount of $ 1,946, 725-76 is shown at paragraph 1(a) (v) representing the duty to be paid on the log shipment. [Any other moneys to be paid by way of duty shall remain the obligation of Oceanic].

Having read the statements referred to by Rex Soaika and Lieng Ping Wong and for these reasons.

I make orders varying those earlier orders made on the 11 July 2016 in terms of paragraphs 1 and 2 of the document named consent variation order (exhibit SR 10 to the statement of Rex Soaika filed 23 September 2016).

The 2^nd defendant shall receive the sum of $ 1,946,125-76 for and on behalf of the Solomon Island Government and shall make payment in accordance with the duty liability in relation to the shipment together with any other moneys found liable for duty.

The balance of the proceedings is dismissed.
Each party will pay their own costs.

__________________
BROWN J