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Nelson v Attorney-General [2001] VUSC 34; Civil Case 114 of 1999 (10 April 2001)

IN THE SUPREME COURT OF

THE REPUBLIC OF VANUATU

(Civil Jurisdiction)

CIVIL CASE No.114 of 1999

ADELYNE NELSON

Plaintiff

AND:

THE ATTORNEY GENERAL
representing the Republic of Vanuatu

First Defendant

AND:

class="MsoNoMsoNormal" align="center" style="text-align: center; margin-top: 1; margin-bottom: 1"> THE TEA SERVICE COMMISSION

Second Defendant

Counsel: r. Robert Sugden for the Plaintiff

Mr. George Boar for the Defendants

Date: 10 April 2001

JUDGMENT

FACTUAL BACKGROUND

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ass="Mso="MsoBodyTextIndent2" style="text-indent: -36.0pt; margin-top: 1; margin-bottom: 1"> 2 & p; &nsp; &nsp; On 16 September 19er 1998, the Plaintiff obtained judgment against the First and Second Defendants in Civil Case No.17 of 1995. In that case, the Court held that the Plff haer belidly suspenuspended oded or disr dismissed from her employment as a Principal in the Vanuatu Teaching Service. Mr. Justice Tompkins held, in effect, that the Plaintiff was still employed as a Principal in the Teaching Service and ordered that all of her unpaid salary up to the date of judgment, less the salary she had managed to earn during that time at Vila City College, be paid to her.

class="Mso="MsoBodyTextIndent2" style="text-indent: -36.0pt; margin-top: 1; margin-bottom: 1"> 3 &nnbsp; Since e the judgmentgment the defendants apparently, have continued not to pay the plaintiff’s salaryrovid withincipsitioa sch/span

4 ;&nbssp;&nnbsp;&bsp; &bsp; The fendantndants nows now concede and accept that the plaintiff should have been paid the dence between her salary as a Principal (of Vatu 98,939) and what she coul could eard earn in other employment. The plaintiff has continued working at Vila City College, until 15/06/1999 when she resigned from there and did not work again until 01/04/2000.

5 &nbbsp; &nsp; &nbhp; T parties agreeagree that, for the period 15/06/99 until 15/09/99 the plaintiff should receive VT349,551.

p class="Mso="MsoBodyText" style="text-indent: -36.0pt; margin-top: 1; margin-bottom: 1"> 6 ;&nbssp; &bsp; The a parties are alre also agreed that each month of the period 1/4/00 until the present the plaintiff should receive the difference between her monthly salary asry as a Principal and her salary at Vanuatu Rural Training Centre (V.R.T.C.) (VT60,000 + VT20,000 for housing allowance) = VT98,839 – VT80,000 = 18,839. It is clear then, that as at 28/2/01 the number of months is 11. It follows and then agreed between the parties that the sum of this period is VT18,839 x 11 = VT207,229.

7 ;&nbssp; &nbbsp; bsp; On 15 June 199e 1999, the plaintiff resigned from Vila City College. She was then unemployed until 1/4/00. The p 15/6ntil 0 repts 6˝ (half) months. ths. This This perioperiod hasd has been the subject of dispute between the parties.

8 &nbbsp; &bsp;&nbse def defendants say that the plaintiff should receive nothing for the time as she had resigned from her position and therefore she had failed to mte hes.

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9 &nnbsp;;&nspp;&nsp; &nsp; The tifinaccepts tpts that she should have kept her employment at Vila City College in order to mitigate her loss brought about by the defend ailurpay her and that that because she chose to give up that inct income some she cannot require the defendants to make good what she have earned. However, the plaintiff says that, even if she had kept that employment she would still have suffered a loss of VT38,839 per month as she could only earn VT60,000 per month – Vt38,839 less then her salary. Thus, the plaintiff says, she should receive VT38,839 per month for this time – a total of 6˝ x VT38,839 = VT252,454.

EVIDENCE AND FINDINGS

10 &nbssp;&nnbsp; bsp; The plfintive gave oral oral evidence in addition to her sworn affidavit filed on 14 Febr2000. The plaintiff gave evidence to the effect that on 1st April 2000 s000 she started her current employment with the Vanuatu Rural Training Centre on a three year contract at a salary of VT.60,000 per month plus housing allowance of VT20,000 per month. The evidence establishes also that the defendants offered the plaintiff a teaching post at Lini Memorial College in Pentecost as an English and Social Science Teacher. This was done by a letter from the Hon. Jacques Sese, Minister for Education dated 30 May 2000, directing the plaintiff to make necessary arrangement to the said school, without any further delay. (Exh.D1)

11 & p; She stated aled also that her claim is now understood by the defendants to include a claim for houallow She t anded “Annexure A” part of the Teaching Service Staff Ruff Rules tles that ihat includnclude the provision relevant to housing allowance for teachers.

12  p; &nsp;&nThe plaintiff by leby letter of 22 June 2000 appealed against the ministerial decision of 30 May 2000 for three (3) rs:

13 &nbssp; &nsp;&nbp; Firstly becsuse she is e is currently employed by the Vanuatu Rural Development Training Association and she needed to give three (3) months noto he mployer. Sly, she said her appointment ment as a as a classclass teac teacher at the said school is still contradictory to the judgment of the Supreme Court issue by Justice Tompkins on the 16 September 1998. Finally, because she was deprived of her profession and salaries by the defendants since October 1998 and then was unemployed since June 1999 to 1 March 2000, she did not have the finance for such an abrupt posting at such a inconvenient time. She also said that she will willingly take up any posting anytime in future if-

ass="Mso="MsoBodyText2" style="text-indent: -36.0pt; margin-left: 72.0pt; margin-right: -7.55pt; margin-top: 1; margin-bottom: 1 (i)  p; &nsp; &nbbsp; &nbbsp; <span>Her withheld salaries mmediately released; and

(ii) ;&nbssp; &nsp; &nsp;  p; &nnsp;&&nsp; <the denendants via the Ministry of tion consider fully points 1 and 2 of this letter in respect to the next postiposting.

14 &nbssp; She gave gave evid evidence that she did not receive a response of her appeal from the defendants. There is no evidence from the defendants to the contrary. Tis noon toelieve the plaintlaintiff oiff on than that point.

lass="Mso="MsoBodyTextIndent2" style="text-indent: -36.0pt; margin-top: 1; margin-bottom: 1"> 15 &nbbsp; She stated thad that prior to the decision of the Hon. Justice Tompkins in September 1998, she had been living ientedises rt-Vi a monthly rental of VT33,000 and had received no payo paymentsments of a of any sony sort frrt from the defendants. She shared the rents with her partner. She paid VT18,000 for the rent and her partner paid VT15,000. She produced all receipts/invoices of rent she paid from January 1998 to February 2001. (Exh.P2)

16 &nbbsp; The he defendantndants file a sworn affidavit dated 26 February 2001, of Louis Pakoa, Manager in charge of the Government salaries within the Department of Finance. This affidavit shows the personal account history file of the plaintiff covering the last two (2) periods as a teacher from 1993 to 1994 marked “CPI”. It is also said in the affidavit that as a teacher in Teaching Service with Vanuatu Government, the plaintiff’s TPF No. is 2-60079. She ceased to receive her salary on 13 September 1994. The Finance record shows that she received a basic forth night salary of Vatu 39,919 plus Vatu 2,125 being for subsistence allowance. Mr. Pakoa’s affidavit further shows that the plaintiff was not paid any housing allowance nor was her salary deducted towards payment of housing rent.

17 &nbssp; &nsp; I find as aer of f of fact that the affidavit of Pakoa shows the financial record of forth-night salary of the plaintiff as a class teacher butas a Pral of the l which is in issue in the prhe proceedoceedings.ings. The The evidence of the plaintiff is then preferred.

18 I find al also that the Teaching Service Staff Regulation which include relevant provisions for housing allowance for the Teachers No.33 of 1994 became effective6 Oct1994 the plaintiff was wrongly ngly dismidismissed ssed by the defendants. It is also common ground that as from the judgment of the Hon. Justice Tompkins of 1998, the plaintiff had never been validly suspended or dismissed from her employment as a Principal in the Vanuatu Teaching Service. The Supreme Court, in effect, held that the plaintiff was still employed as a Principal in the Teaching Service. It is also the case that the Court ordered that all of the plaintiff’s unpaid salary up to the date of judgment, less the salary she had managed to earn during that time at Vila City College, be paid to her. The evidence shows also as an established fact that the plaintiff paid housing rents exceeding VT15,000 per month prior to the judgment of the Supreme Court in September 1998.

SUBMISSIONS OF THE PARTIES

ass=lass="MsoNormal" style="margin-top: 1; margin-bottom: 1"> Plaintiff

19  p; Tsp; Taintiff accepts thas that she should have kept her employment at Vila City College in order to mitigate her loss broubout e deft’s fe to pay her and that that because she chose to give up that inat income come she cshe cannot require the defendant to make good what she could have earned. However, even if she had kept that employment she would still have suffered a loss of VT38, 839 per month as she could only earn VT60, 00 per month for this time.

a) &nbs; &nbbsp;& p; Unpaid Salary

ass=lass="Mss="MsoBodyoBodyTextIndent3" align="left" style="text-align: left; margin-top: 1; margin-bottom: 1"> 20 &nnbsp;;&nspp; Tsp; The e Plaintiff’s Counsel submitted that calculation of the compensation or unpaid salary of the plaintiff should be for theriodpan><

i) ;&nspp;&nssp; Teaching at Vila C City; difference in her Salary (TSC/Vila City College)

&nbssp; &nbssp; 15/09/9809/98 to to 15/6/99 = 9 months x VT38, 839 = VT349, 551

&nbs>

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ii) &nnbsp; Period she re resigned from Vila City College

&nt"> &bsp; nbsp;&nbsp &nbbs;&nnbsp;;&nsp; &nsp; 15/6/99 o 1/4/2000 = 90 = 9 and ˝ months x VT38, 839 = VT388, 839

iii) &nbssp;&nnbsp;&nsp; Psp; Period from 1/sup> April 2000 to end of February 2001 – total of 11 months. Calculations base on difference bn plaf’s s and housing allowance subtracted fr from her salary as principal of VT98, 898, 839 per month.

21 ; aThent of compensation should beonths, 839g the difference in hein her earr earning ning which is VT207, 229.

b) &bsp; ; HousiHousing Allo Allowance

22 &nbbsp;&&nsp;; sp; The counsel for the plai plaintiff submit that the plaintiff entitled to housing allowance starting from 15 September 1998 up to 28 February 2001. The total month for this period is 29 ˝ months x VT15, 000 per month = VT442, 500.

23 Therefore, th ctalensmpensation (unpaid said salary and housing allowance) the plaintiff should receive is VT1, 368, 251. p clasoNorstylegin-t; margin-bottobottom: 1"m: 1"> > <

Defendant<

(a) Unpala Salary

24 &nbbsp; &nsp; The defe dant lthough ough admitted that plaintiff is entitled to compensation, argued that she cannot be compensated for the period she resigned Vila llege and ve no remuneration. This peri period, tod, the dehe defendafendant argued that she failed to mitigate her loss. The defendant cited British Westinghouse Electric and Manufacturing Co. Ltd. v. Underground Electric Railways Co. of London Ltd. [1912] UKLawRpAC 43; [1912] AC 673 which in Viscount Haldene LC said:

25 ;&nspp;&nssp;  p; &nbp; &nbp; ;&nbpp; “The fundamundamental basis is…. compens for iary natur owing the h; but this principle is qualifualified bied by a sy a secondecond whic which h imposes on a plaintiff the duty of taking all reasonable steps to mitigate the loss consequent upon the breach; and debars him from claiming in respect of any part of the damage which is due to his neglect to take such steps……”

26 &nnbsp;;&nbssp; bsp; Relyinelying on the above authoruthority the defendants deny compensation for the 4 months the plaf is ut job as a result of her resignation from Vila City College until the tihe time shme she gets the job with Vanuatu Rural Training Centre. The defendants argued that the plaintiff could have avoided loss of VT38, 839 being the difference in salaries had she continued to work at Vila City College. The defendant further argued that the assertion that the plaintiff could have avoided the loss of VT60, 000 (being salary per month at Vila City College) by not resigning but must still be paid the difference of salary had she continue to work is untenable. Defendants admit that the plaintiff can only entitle to difference in salary for the period. In supporting the proposition, the defendant cited Halsbury’s Vol. 4 at paragraph 1195 which states:

p class="Mso="MsoBodyTextIndent" style="margin-left: 35.45pt; margin-top: 1; margin-bottom: 1"> “(she) must be prepared if n> necessary to lower her sight and accept employment at a lower remuneration”.

27  p;&nbbsp;&nsp; Tsp; T defendantued tued thad that the plaintiff’s reason for her resignation from Vila City College is low salary and pressurwork.defenargued that as she voluntarily rily resigresigned she should not be entitled to clao claim for the period she was unemployed.

b) n/spasiHouAllg ancewance

28 ;&nbssp;&nnbsp; bsp; Tsp; Tsp; The defendants cited Rule 7.16, which set out housing allowance entitlement. The defen arguat when the plaintiff was principal at Epi High School, she was not beingbeing paid paid housing allowance. Defendants argued that she lost nothing and cannot claim for benefits for which she was not previously enjoyed.

lass="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1; text-indent:-36.0pt"> 29 &nbssp; &nsp; n Mitigation of Loss

a) &nbbsp; pan/span>The fThe first and most important rule is that the plaintiff must take all reasonable steps to mitigate the loss to him consequent upe defens wrong and cannot recover damages for for any sany such luch loss which he could thus have avoided but has failed, through unreasonable action or inaction, to avoid. Put shortly, the plaintiff cannot recover for avoidable loss;

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b) The second rule is the corollary of the first and is that, where the plaintiff does take reasonable steps to mitigate the loss to him consequent upon the defendant’s wrong, he can recover for loss incurred in doing so; this is so even though the resulting damage is in the event greater than it would have been had the mitigating steps not been taken. Put shortly, the plaintiff can recover for loss incurred in reasonable attempts to avoid loss;

c)

Housing Allowance

30 &nnbsp;; &nsp; Tsp; The law in this a a area is Teaching Service Staff (Amendment) Regulation No. 33 of 1994. The relevant provisions are as follows:

31 &bsp; &nbbp;&nnbsp; &nbbsp; p; <Amendment of chapter 7 of the Principal Rules

3. &nbbsp; &nbbsp; &nbp; &nbp; &nb p; Chapter 7 or 7 of the principal Rules is amended by adding after paragraph 7.15 the following new paphs-n> >

Housing allowance

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7.sp; (a)&n(a)  p&nbssp;&nAsp; All l locally recruited officers, permanent or temporary are entitled to receive a housing allowance of VT15,000 per month.

class=lass="MsoNormal" style="text-indent: -35.45pt; margin-left: 106.35pt; margin-top: 1; margin-bottom: 1"> (b)&nb"> &nnbsp; &nsp; &nbbp;&nnbp;&&nbp;; &nsp; An er icsidiesiding in Government housing will not be eligible for housllowaut wintinupay the rent for thor the house at the rate imposed fsed for thor the grae grade inde in which the house is classified.

(c) &nnsp;&&nsp;;&nspp;&nssp;&nsp;

&nbspan> p classclass="Mso="MsoNormaNormal" style="text-indent: -36.0pt; margin-left: 142.35pt; margin-top: 1; margin-bottom: 1"> (i)  p;&nssp;  p; &nbp; &nbp; will ie eligible ible to be paid VT15,000 where the equa xceedt amoor

(ii) &nbssp;&nnsp;&&nsp; &nsp; &nbbp;&nnbsp; where the rent is less than VT15,000, the housing ance we equal to the amount of the rent.

(d) nbsp; p; &nbp; &nbssp; /span>Officefficers livs living with relatives or residing in their own houses are entitled to 50% only of the housing allowance.

clasoNormtyle="margin-top: 1; margin-bottom: 1om: 1">">

7.17 (a) ; &nbs;&nnbp;&&nbs; In ; In the case f an officer or officers who are married and living with relatives or living in their own houses they shall be entitled to be paid an allowance at the rate of 50% of the allowpayable to one officer only only;

/p>

(b) &nnbsp; &nnbsp; &nbp; &nbp;

nbsp;

(i) ;&nbssp; &nsp; &nbs; &nbbp;&nnbp;& in separate rate private rented housing are each entitled to be paid the housing allowance in accordance with paragraph 7.16(c);

clasoNormtyle="margin-left: 106: 106.35pt.35pt; mar; margin-top: 1; margin-bottom: 1">

pan lang="EN-GB" style="font-size: 12.0pt">(ii) &nbssp; &nbssp; &nbp; togeth r in private rented housing are each entitled to tusing ance iordanth paph 7.; pro that it is paid t to theo the fema female pale partnerrtner.

(c) & p;&nssp&nbsp Sip; Single officers sh sharing private rented housing shall each be paid a proportion of the allowance which when added together will be equal or as near to the rent payable for the private dwe per month.”

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APPLICATION OF THE LAW

32 ; The; T pla plaintiffntiff has been wrongly dismissed by the Teaching Service Commission and obtained a judgment of the court on 16 September 1998 to be paid her /span full salary entitlement by the Teaching Service Commission (defendant). Since her dismissal the plaintiff managed to teach at Vila City College and earned a salary less than what she normally earns when she was a principal with the Teaching Service Commission. The plaintiff here mitigates her loss due to the wrong caused to her by the defendants. By doing so, the plaintiff had lower her sight and accepted employment at a lower remuneration. The plaintiff, then, resigned from Vila City College on 15/9/98 and got a new job on 1st April 2000. This represents a period of 9˝ months that the plaintiff was unemployed.

33 ; thIs lainplaintiff eiff entitled to any compensation from the defendants corresponding to that period (15/9/98 to 1/4/00)? My answerhis que is y accee plaf’s submisubmissionssion that that even even if t if the he plaintiff had kept her employment at Vila City College (and not resigned) she would still have suffered a loss of 38,838 per month as she could only earn VT60,000 per month for this time. It is clear the defendants had caused loss to the plaintiff that could not be avoided. If the defendants caused loss to the plaintiff, the defendants must make good that loss. The failure of the plaintiff to mitigate that loss does not stand as a penalty.

34 &nbssp; &nsp; &nbbp;&nnbsp; &nbhe plaintiff tiff claimelaimed housing allowance of 15,000 Vatu per month since ptemb98. Hg allowance ince is ones one of t of the cohe conditinditions oons of thef the employment between the Teaching Service Commission and its employees.

35 &nbssp; &nsp; The plfinti a loca locally recruited officer, and has continued to be employed between 15/9/98 and 28/2/01. Shenot rd in nmenting during that time time as she was not offered it. She is ress residingiding in p in privatrivate rental accommodation for which she pays rental in excess of VT15,000 per month so, she comes within Regulation 7.16(c)(1) and so is entitled to vt15,000 per month. The plaintiff is not married so she does not come within 7.17(a) and (b) and she is not sharing with officers and so she does not come within 7.17(c). There is no reason to reduce what she is allowed under Regulation 7.16(c). It does not matter what she would have been entitled to if she had been appointed to Epi High School as its Principal during that time because she was not appointed. It is to be noted that, if she had been, she would have received Government housing at cheap rent – much better off financially than paying for private rental accommodation. As an officer during that period, she was not given Government housing, and hence, she should have been given housing allowance.

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ION

>

36 &nbssp; &nsp; The plfinti entitlntitled to the salary she had lost that cannot be avoided as the result of herwron>wrong disg dismissal. Calculation of the amount of money she entitles to should reflect the following three periods:

- an/spr fHel salary aary as from the time of her dismissal to the time she managed to get the job as an ordinary teacher at Vila Cityege; n>

- &nbssp;&nnbsp;&nsp; &nsp; p clasoNormal" style="text-indent:dent: -18. -18.0pt; margin-left: 54.0pt; margin-top:-top: 1; m 1; margin-bottom: 1"> - &nbbsp; &nsp; spaference in hern her salary when she was teaching at Vila City College for the period she voluntarilygned eceiv remuion.

1">

Calculation as follows:

p class="Mso="MsoNormal" style="text-indent: -18.0pt; margin-left: 54.0pt; margin-top: 1; margin-bottom: 1"> i) Teaching at Vila City; difference in hein her Salary (TSC/Vila City College) 5/09/98 to 15/6/99 = 9 months x VT38, 839 = VT349, 551.

ii) Period when resignesigned gned from Vila City College

&nbssp; 1sp; 15/6/99 to 1/4/2000 9 and ˝ months x VT38, 839 = VT388, 839.

class="MsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> <

iii) Period from >st April 2000 to end of February 2001 – total of 11 months. Calculations based on difference between plaintiff’s salary and housing allowance subtractem her salary as principal opal of VT98, 839 per month. The amount of compensation should be 11 months x 18, 839 being the difference in her earning = VT207, 229.

37 &nbbsp;& bsp;l otaaidnp salary compensation she shoe should be granted is VT349, 551 + VT388, 839 + VT207, 229 = V 619

">

class=lass="MsoBodyText3" align="left" style="text-align: left; margin-top: 1; margin-bottom: 1; text-indent:-36.0pt"> 38 ;&nbssp; &nsp; Tsp; The plai is a is also entitled to housing allowance of VT15, 000 per from 15/9/98 up to the time she was employedanuatal Trg Cen The housing allowance she is entitled to from 15/9/98 to 28/2/2000 is 29˝ months x VT15, 000 per month = VT15,000 x 29,5 = VT442,500.

39 ;&nbssp;&nbs;&nbs; &nbp; refore the total coml compensation the plaintiff should get is VT 945,619 + VT 442,500 = VT 1,388,119.

DATED at PORT-VILA, this 10th DAY of APRIL, 2001

BY THE COURT

LUNABEK Vincent

Chief Justice


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