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Native Land Trust Board v Merit Timber Product Ltd No 2 [1997] FJHC 158; Hbc0047r.96s (24 October 1997)

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Fiji Islands - Native Land Trust Board v Merit Timber Product Ltd - Pacific Law Materials

IN THE HIGH COURT OF FIJI

At Suva

Civil Jurisdiction

CIVIL ACTION NO. 0474 OF 1996

BETWEEN:

NATIVE LAND TRUST BOARD

Plaintiff

AND:

Defendant

Ms L. Ganilau for the Plaintiff

Mr. V. Kapadia for the Defendant

REASONS FOR DECISION

On the 17th of August 1997 this Court dismissed the defendant company's cation for a stay of proceeroceedings pending the referral of a dispute between the parties to arbitration pursuant to a timber concession agreement entered into by the parties in March 1980. It is common ground that the Court's decision was an interlocutory one.

On 17th September 1997 the defendant company sought leave to appeal against the Court's refusal to refer the matter to arbitration and a stay of all proceedings pending the hearing and determination of its appeal to the Fiji Court of Appeal.

The application is supported by an affidavit deposed by a law clerk in the employ of the defendant company's solicitors. Annexed to the affidavit is a Notice of Appeal which contains the following two grounds:

"(1) Learned Judge erred in law and in fact in not refe referring the matter to arbitration when the Arbitration Agreement dated the 6th March 1980 specifically provides for disputes relating to the Respondent's claim to be referred to Arbitration.

(2) THE Learned Judge erred in law and in fact in holding that the question of payment of $35,000 by the Appellant to the respondent is not one that touches 'the meaning construction and effect of the Agreement' so as to make it amenable to Clause 11 of the Agreement."

The deponent also deposed in his affidavit to his informed belief that the 'Defendant has good prospect of success on appeal.'

ass=MsoNormal stal style="margin-top: 0; margin-bottom: 0"> The application was opposed in an affidavit deposed by the Secretary of the plaintiff board in which he doubted the prospect of success of the defendant company's appeal and complained that the appeal was merely lodged "for the purpose of delaying the plaintiff Board's action for recovery of annual rent arrears properly owing to it by the defendant ..."

On Friday the 17th of October the defendant company's application for leave to appeal was heard in Chambers and at the end of which leave was refused for reasons which I now deliver.

So far as relevant for present purposes Section 12(2)/b>of the Court of Appeal Act expressly provides:

"(2) No appeal shall lie -

/p>

(f) without the leave of the judge ... from any ... interlocutory ... judgment given by a judge of the High Court ..."

In light of the above the assertion by the General Manager of the defe company in his affidavit ivit in reply, that the denial of leave to appeal would amount to a 'denial of natural justice' is both wrong and misconceived since there is no such thing as an unrestricted 'right of appeal' against an interlocutory judgment of the Court.

Furthermore, Sir Moti Tikaram, President of the Fiji Coji Court of Appeal recently stated in a decision delivered on the 3rd of October 1990, in A.N.Z. v. David McIntyre Campbell Civil Appeal No. 60 of 1995, at p.8:

"The Fiji Court of Appeal has emphasised on several occasions that leave to appeal against an interlocutory order will be given only in exceptional circumstances and that an appeal against such an order will rarely succeed unless the order or decision is plainly wrong.

By granting leave the lower Court ... will be seen to be encouraging appeals. Indeed thed the purpose why leave is required is to curb such appeals. If an interlocutory order is wrong it can still be corrected on an appeal against the substantive decision of the High Court."

In this case if leave is granted and the applicant's appeal is successful that would only finalis procedural question, but not, the substantive action which is a claim for payment arrears. There are in my view no exceptional complexities of law in this case which would warrant a prior determination by the Court of Appeal. In my view it would only further prolong this 'old' litigation if I were to grant leave to appeal what is essentially a procedural as opposed to a substantive matter.

In this instance the interlocutory judgment of the Court extended to 17 pages and, bs the arbitration issue nowe now sought to be appealed, dealt extensively with a more substantive issue, namely the meaning and effect of the annual payment provided for in Clause 6 of Schedule F, and of which the defendant company claims a 'dispute, difference or question' has arisen which ought to be referred to arbitration.

In rejecting the dent company's submissions in that regard this Court said (at p.12):

"There is in my considview, no confusion or ambiguity in Clause 6 of Schedule F oe F of the Agreement sufficient to raise a genuine 'dispute, difference or question' as to the defendant company's obligations thereunder. Certainly the so-called 'question' posed in defence counsel's written submissions falls well short of the mark."

The interlocutory judgment continues:

"g thus determined the meaning and effect of Clause 6 of Schedule F of the Agreement ment there would appear to be no need to go further. However if I should be wrong in my interpretation, then I proceed to consider the question whether or not this is an appropriate case for the exercise of the Court's unfettered discretion to stay the further prosecution of the plaintiff Board's Writ pursuant to Section 5 of the Arbitration Act (Cap. 38)."

It is noteworthy that neither ground of appeal specifi mentions Clause 6 of Schedule F nor hnor has either ground indicated in what way? or on what aspect? of the interpretation of the Clause did the Court 'err in law'. Indeed both grounds incorrectly refer to errors 'in fact' whereas a careful reading of the judgment would reveal that the only issues or questions raised before the Court related solely to matters of contract interpretation and to the exercise of the court's unfettered statutory discretion.

Needless to say if defendant counsel accepts that the court's interpretation of Clause 6Schedule F of thof the concession agreement between the parties is correct (and there has been no actual appeal against it), then it is difficult to see any prospect of success in the defendant company's appeal. Quite simply in my opinion it is destined to fail.

Even the so-called 'facts' relating to the defendant company's access to the concession area and its profitability necessitates the implication of contractual terms which the Court considered was a 'question of law'. (See: pp. 10 & 13 of the judgment)

Viewed in the above light the General Manager of the defendompany's claim that 'this matter should proceed to A to Arbitration by persons who have an understanding of Native forestry' appears to be misguided and overly optimistic.

For the foregoing reasons leave to appeal was accordingly refused.

ass=MsoNormal alal align=center style="text-align: center; margin-top: 0; margin-bottom: 0"> D.V. Fatiaki
JUDGE

At Suva,

24th October, 1997.

Hbc047r.96s


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