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Kamoriki v Development Bank of Kiribati [2010] KIHC 80; Civil Case 19 of 2010 (3 August 2010)

IN THE HIGH COURT OF KIRIBATI
CIVIL JURISDICTION
HELD AT BETIO
REPUBLIC OF KIRIBATI

High Court Civil Case 19 of 2010

BETWEEN:

TEETA KAMORIKI
Plaintiff

AND:

DEVELOPMENT BANK OF KIRIBATI
Defendant

For the Plaintiff: Mr Banuera Berina
For the Defendant: Ms Batitea Tekanito

Dates of Hearing: 3 August 2010

JUDGMENT
(Ex Tempore)

The defendant, DBK, in 2008 seized a 60 HP outboard engine Mariner, from the plaintiff as he was in arrears in repayment of a loan taken out in 1996 or 1997. At the time of taking out the loan he gave a B/S over the engine. The engine was at that time valued at $5,200 or a few hundred dollars less.

The DBK put the engine up for auction. Eleven times! Each time with a successively lower reserve price. Finally the engine was sold for $20.00.

Mr Berina complains that the DBK should have kept his client informed so as to give him an opportunity to buy the engine back himself. Mr Berina could not point to any obligation to do this: nothing in the B/S or the loan agreement. In the absence of some specific agreement there is no obligation in law to consult the owner when goods under a B/S are seized and auctioned. A moment's thought will make it clear that such an obligation would be most inconvenient, indeed unworkable.

The defendant was justified in finally selling for so low a price: it was the best price it could get. The claim fails: there will be judgment for the defendant.

THE HON ROBIN MILLHOUSE QC
Chief Justice