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Supreme Court of Nauru |
SUPREME COURT OF NAURU Civil Case No. 22 of 2020
AT YAREN
CIVIL JURISDICTION
BETWEEN
LEILANI GADEANANG Plaintiff
AND
JEFFERY IKA Defendant
Before : Fatiaki CJ
Date of Submissions: 8 July & 10 August 2021 (plaintiff)
26 July & 11 August 2021 (defendant)
Date of Oral Hearing: 12 August, 2021
Date of Judgment : 12 November, 2021
CITATION : Gadeanang v Ika
CATCHWORDS: “historical origins of consent form” ; “competing consent forms” ; “meaning and effect of a consent form” ; “priority of consent forms” ; “registration of a consent form” ; “different generation of signatories” ; “relevance of intention to build” ; “withdrawal of consent” ; “equitable maxims” ; “waiver and laches”.
LEGISLATION : ss 3, 4 , 6 & 15 Lands Act 1976 ; Laws Repeal and Adopting Ordinance 1922 ;
CASES REFERRED TO : Capelle v Capelle [2018] NRSC 39 ; Demaunga v Deireragea [2017] NRSC 87; Allen v Overseers of Liverpool (1874) LR 9 QB 180 ; ANZ (Vanuatu) Ltd v Gougeon [1999] VUCA 15; Kepae v Jeremiah [2019] NRSC 29 ; Hiram v Solomon [2011] NRSC 25 ; Koroa v Landowners of Portion 15 [2011] NRSC 22 ; Deireragea v Kun [2017] NRSC 35 ; Admur v Dongobir [2018] NRSC 40 ; Kamoriki v Kamoriki Civil Suit No 2 of 2017 ; Harris v Batsuia [2012] NRSC 13 ; Lindsay Petroleum Company v Hurd [1874] UKPC 2 .
APPEARANCES:
Counsel for the Plaintiff : L. Scotty
Counsel for the Defendant : J. Olsson
JUDGMENT
INTRODUCTION
THE CLAIM
THE DEFENCE
REPLY TO DEFENCE
disputed land because he has had over twenty (20) years to build but has not done so and
because he now already has “....many other homesteads for his personal use.” In other words, the defendant was being unfairly acquisitive in acting pre-emptively against more genuinely needy relatives.
AGREED FACTS
“ 1. The land under dispute is Land Portion No. 108 aka Atomoneab , Anibare. It lies on
the inner ring of the main road , across from the sand and sea.
and they are deceased.
house on the said land portion.
construction of her house.”
AGREED ISSUE :
“Whether the second consent for the Plaintiff superseded the first consent for the Defendant to use and build on LP 108 ? ”
PLAINTIFF SUBMISSIONS
Whatsmore , all other signatories are dead except for the defendant’s adoptive father Dagadaube Ika who himself is a “first cousin to the defendant”. The meaning and relevance of these latter claims concerning the defendant’s late “father” and “adoptive father” , is not entirely clear.
“ .... Evolution of time , generations of beneficiaries , present day circumstances (population growth) and went (breakdown of family ties) have overtaken , the Defendants consent which in simple terms – had missed the bus thereby superseded by the later plaintiff’s consent form.....”
“(6) Where the owners of any land have been notified by the Minister under section 5 of
any such requirement as is referred to in that section and not less than three-fourths of the owners of that land, both by number and by interest in the title thereto, have executed the instrument granting the lease, easement, wayleave, other right or licence, as the case may be, required, then, if any of the other owners of that land refuses or fails to execute that instrument or is unable by reason of absence from Nauru or physical or legal disability to do so, the Minister shall inform the Cabinet thereof and if the Cabinet is satisfied:
(a) that the lease, easement, wayleave, other right or licence is required for a public purpose; and
(b) that the refusal or failure of that owner to execute the instrument is unreasonable or, in the case of a person who is absent from Nauru or under a disability, that if he were present in Nauru or not under a disability his refusal or failure to execute the instrument would be unreasonable,
it may direct that the instrument is to be executed on behalf of that owner by the public officer nominated under section 15; and the Secretary to the Cabinet shall forthwith send to the public officer nominated under section 15 to execute the instrument or instruments of the class of the instrument a notice in writing under his hand requiring him to execute the instrument on behalf of that owner. ”
“To repeal the Lands Ordinance 1921-1968 and to make new provision for the leasing of land for the purpose of the phosphate industry and other public purposes, and for the removal of trees , crops , soil and sand and the payment of compensation and other moneys.” (my highlighting)
“...all Crown grants , titles , certificates , licenses , orders , appointments , warrants , notifications , seals , registers , memorials , books , records , entries , instruments and generally all acts of authority affected by the Laws Repeal and Adopting Ordinance 1922 which were subsisting or in force immediately before the commencement of this Act shall , ...... continue to be valid and to subsist.....” (my underlining)
“The Lands and Survey registry records consist of the name of the owner(s) , along with the value of shares , name of the land and portion number , situated in which district , records of phosphate mining leases , Government portions for public purposes , and major showing the boundaries , size and measurements of the land.”
“ ...unkempt and at times a frustration to aggrieved landowners’ approach to check out their lands...”
“ ..... (it) has its own historical land records and customary inheritances. It is empowered under section 6 of the Lands Committee Act 1956 ..... to determine questions as to the ownerships of or rights in respect of , land ..... ”
and later :
“... the Lands Committee maintains the important role of calling up family meetings or putting on field trips for interested people to identify possible boundaries of their land with regards to any undetermined land sites.”
“... The proper process to obtain a ‘consent form’ is then to approach the Directorate of Lands and Survey a section operating under the ambit of the Department of Lands Management occupied by a Government Secretary who is head of the Department and directly answerable to the Minister of Lands”.
and later :
“.... After circulation to gather endorsement signatures from landowners , it must surpass the three-fourths (¾) criteria of consent set by the Lands Act 1976 and the 75% mark set by the Court , to receive the Secretary for Land Managements approval. The completed ‘consent form’ should then pave the way for registration in the offices of the Directorate of Lands and Survey and the Department of Land Management”
finally, counsel writes :
“.. The ‘instrument’ referred to by the (Lands) Act is the ‘consent form’... It need be noted that even through the practice of the ‘consent form’ has been in existence and been accepted as a legal process , there tend to be a drawback where it can develop immoral practices upon execution of signatures where forgeries can be made .... As the process now stands anyone can sign for another co-landowner in his absence and without that other person’s knowledge......” (my highlighting)
DEFENCE SUBMISSIONS
“ The consent form is a written agreement between customary landowners (family members) that gives permission/licence to the applicant to use and build a dwelling/house on a piece of land.
The applicant is required to first obtain 75% minimum consent of landowners.
The Nauru Lands & Survey Unit of Lands management , issues , assesses , and stores the consent form with the names of landowners
, so determined by the Lands Committee,
merely reproduced for the consent form.
Unlike the requirements for the determination of landowners , there is no requirement to publish the consent form in the government gazette ; and , the landowners’ agreement does not invite appeal to the Supreme Court.
Salient features of the consent form include : (i) minimum 75% consent of landowners
(ii) consent to be the first obtained before access to land (iii) states specific use (iv) does
not transfer ownership of land (v) user is non-transferable (iv) individuals can revoke consent (vii) there is no consideration (vii) does not endow the user exclusive or extensive or inexhaustible rights to the use of the land (ix) specifies a particular use to build a house (x) applies to both landowner and non-landowner.
The consent form is at best permission or licence to use the land and does not confer
interest let alone interest in a statutory sense. (Capelle v Capelle [2018] NRSC 39 ; ......
The consent form could only be legal in a common law sense and court has power to grant a remedy to a licencee which will protect but not exceed legal rights granted under the licence. [ per Blackburn J in Allan v Overseers of Liverpool Inman (1874) LR 9 QR 180].... ”
“In the present situation , the Defendant is title holder ; and both parties have obtained
licence by virtue of consent form to use and build a house on the land. It is accepted that where equities are equal, the law prevails ; which in this case the Defendant’s statutory rights must prevail.”
“ Where the equities are equal , the first in time prevails ”
( see : the judgment in ANZ (Vanuatu) Ltd v Gougeon [1999] VUCA 15)
“ Equity aids the vigilant , not those that slumber on their rights”.
“ The 75% minimum requirement is a statutory requirement in section 6 Nauru Lands Act 1976 and which is applicable only to phosphate lands and lands for public purposes via lease and other legal instruments. A public officer is empowered (section 15 Nauru Lands Act) to execute the consent of the remaining 25% of landowners who will also receive royalties and rents like the other 75%.
Again, the principle majority share of customary landowners is disregarded in this consent process.
For family use of land, there is nothing in stature that stipulates 75% consent to apply to approve the use lands to build a house amongst landowners. The consent form in effect denies 25% of landowners their right to speak on the use of their land.
Jitoko CJ gave his view on 75% in Darryl Tom v Transome Duburiya [2016] : “ It is now a generally accepted rule that the majority to three-quarters consent of the landowners if required for a person to use any part of the land , in this case ”
(my highlighting)
“ Nauruans identify themselves as customary landowners and the label and practices
of owners in common is alien to them.
Registration of shares of landowners becomes evident that it is for the purpose of
calculating not only royalties and rents but useful to the Lands & Survey to calculate the 75% consent for consent forms. It is certainly not for identifying customary landowners who may have greater weight in decisions to transfer the use of their lands.
That custom is unwritten does not invalidate land practices that are legitimized by the
people it serves ; customary landowners is a dying race.....
In the particular aspect of collective ownership , Nauru’s land tenure system is described to be “primarily based on the concept of common ownership something akin to tenancy in common. Land is held by individuals as unsevered separate shares of portions of land. It is defined in equal or unequal shares. For example , as between two co-owners of a portion of land , amongst others , one may hold only one-quarter share as compared to the second who holds one-twentieth shares in the same but undivided portion of the land. The law does not recognise any exclusive right of claim to any particular part , section or plot of the land ; nor does it grade their priority of right of use in terms of their portions of shares. Having a bigger portion of land does not necessarily entitle one to first claim over any particular section of the portion.”
The above description is erroneous and it opposes the claim of customary landowners that the owner with the greater share in a piece of land has right to greater weight in decision making as to the usufruct use of the land ......
In Capelle v Capelle [2018] , the defendant held majority shares of 25% in the land while the plaintiff had neither title nor equitable interest in the land portion , but only a license through a consent form. The Court was of the view it has ample power to grant a remedy to a licence which will protect but not exceed his legal rights granted under the licence....”.
CONSIDERATION & DECISION
“ 75% Consent and the Majority rule
Counsel for the defendant in his oral submissions discussed and criticized the majority rule concerning the landowner’s written consent which is required by those who wish to use, work or deal with the land.
On a number of occasions he emphasized the custom of discussion, mediation and reconciliation which played an important role in Nauru society which therefore makes consent form unnecessary.
Unfortunately as he developed his argument he tended to contradict himself and the submissions become confusing and difficult to follow and understand.
He did emphasise however that the plaintiff should never have been allowed to initiate these proceedings and obtain an interim injunction against his brother without consulting and liaising with the brother.
The interim injunction however was granted in June 2016 and there has been no attempts of reconciliation or negotiation but several incidents of intimidation and confrontational conduct by the defendant.
It is plainly apparent that the defendant wants the plaintiff to dismantle the garage.
The majority rule as counsels agree has been in existence since the Housing Scheme was introduced under the Nauru Housing Act 1957. If all landowners were required to give their written consent the Housing Scheme would have been a failure.
The consent form was accordingly drafted giving permission to use the land only but not to create or grant interests in the land.
It is a modification of the English common law which requires all land the owners of a particular land to consent. Accordingly it has been termed as customary law.
While counsel for the defendant agreed with the majority rule as discussed in paragraph 20 above he objected to the 75% bench mark which was introduced by section 6 Lands Act 1976. He is quite correct that the 75% figure was introduced by the 1976 legislation
Crulci J acknowledged that in her judgment in Deireragea v Kun (3). She states at paragraph 49 :
‘I consider that the Lands Act 1976 where section 6 refers to a requirement of no less than three fourths of the land needing to give their permission in respect of granting of a lease or other license, as the basis for consolidating the legal requirement that three fourths or 75% of the land owners need to agree in relation to the land.’
Counsel however contended that the other 25% which did not give their written consent (following the formula in the 1976 Legislation) must still be consulted or considered. Again this contradicts what he conceded to that the majority rule introduced by the Lands Committee to facilitate the building of houses under the Nauru Housing Act was widely accepted as customary law since 1957.
This majority rule has been in place and judicially recognized. In Harris v Batsiua for instance, Eames CJ dealt with a bitter dispute amongst members of a family over the occupation of a house which was then occupied by the plaintiff and his family. He said at paragraph 12 :
“The plaintiff is one such landowner, having a 1/3 interest. He may well occupy the house under a tenancy at will, in which
case a majority of landowners may well have a right to terminate his tenancy, if it exists.”
Since Deireragea v Kun, the majority rule has since been accepted as the 75% majority
rule.
The Lands Committee as an institution under the customs and Adopted Laws Act 1971 has adopted 75% as the benchmark for the majority required of the landowners to agree in relation to the land. Its consent form is accordingly worded and formatted to reflect it.”
(my highlighting)
and said (at para 27) :
“as can be seen from the cases discussed above that 75% or more of the landowners need to give their approval/consent to constitute the majority and once 75% give their consent/approval then it has effect of binding the remaining 25%. This has been the practice in this country and that practice has to be followed to provide certainty and continuity , unless of course that practice is changed by (the) legislature”
“ Finally , the issue of consent of landowners was raised by Counsel for the plaintiff arguing that there is no law that requires a majority of 75% of landowners for a person to use or build on any land on the island. The nearest comparison one can come to is the exercise of the Governments’ prerogative to acquire land for public purpose under the Lands Act 1976. Section 6 ...... stipulate that procedure to be adopted by the Government when it requires , through lease or licence to acquire land after having obtained three-fourths of the land owners consent. A similar process can be applied to that of ...... a landowner wishing to utilize a part of Portion 135 that is commonly held (undivided) and commonly owned (in unequal shares). Given the complexity of the land tenure system , to require a 100% landowners’’ consent , ............... as contended for by the plaintiff , is almost asking for the impossible. In my view the formula and procedure adopted under section 6 ....... acknowledge this difficulty and at the same time also lays recognition to the practice long established by customs and customary law of the people of Nauru and that is the use of commonly -owned land was by a consultative process but ultimately decided by the consensus of the co-owner of property. Consensus here means general agreement not necessarily unanimity. It is now a generally accepted rule that the majority to three-quarters (¾) consent of the landowner is required for a person to use any part of the land....” (my highlighting)
“.... based on the concept of common ownership. Land is owned by individuals in common with others. They have rights over the whole land even although they hold only a portion or part of it. This is because their rights of ownership are undivided , that is , they cannot be separated from the whole. This is normally referred to as the ‘unity of title....’
In my respectful view the presumption that the family agreement subsists and binds future interested parties is not supported by the law. The nature of land ownership on Nauru will not allow the possible perpetual alienation of the common ownership of land in favour of a particular family or person” (per Jitoko CJ in Adumur v Dongobir [2018] NRSC 40)
“it is also common ground that the rights to use the land owned by a number of co-tenants, can only be obtained through the consent of the majority of all the co-owners ......... the plaintiff did not consent to the defendant building on the spot assigned to the plaintiff ....... The equitable doctrine of unjust enrichment comes into play. Contrary to the contention by the defendant the consent granted to her by the landowners does not rival the consent granted earlier to the plaintiff. Both consent forms allowed both the plaintiff and defendant to occupy the land.
the Law does not recognize any exclusive right of claim to any particular part , section or plot of the portion of the land ; nor does it grade their priority of rights of use in terms of their portion of shares. Having a bigger share in a portion of land does not necessarily entitle one to first claim over any particular section of the portion. The right to use can only be obtained through the consent of the majority of all the co-owners of the portion.” (see : Demaunga v Deireragea [2017] NRSC 87).
“To lay down the rule ...... with perfect accuracy , I think it should be stated in some such form as this : ‘as between persons having only equitable interests , if their equities are in all other respects equal , priority of time gives the better equity ; or qui prior est tempore portion est tempore portion est jure’.....
I think the meaning (of the rule) is this :
That in a contest between persons having only equitable interests , priority of time is the ground of preference last resorted to , ie , that a Court of Equity will not prefer the one to the other , on the mere ground of priority of time , until it finds upon an examination of their relative merits that there is no sufficient ground of preference between them or in other words , that their equities are in all other respects equal ; and that if the one has on other grounds a better equity than the other , priority of time is immaterial.
In examining into the relative merits (or equities) of two parties having adverse equitable interests , the points to which the court must direct its attention are obviously these : the nature and condition of their respective equitable interests , the circumstances and manner of its acquisition , and the whole conduct of each party with respect thereto : And in examining into these points it must apply the test , ..... (namely).... the same broad principles of right and justice which a Court of Equity applies universally in deciding upon contested rights. ”
“.... it is now clearly established that prima facie priority in time will decide the matter unless , as laid down by Lord Cairns LC in Shropshire Union Railways v The Queen [1875] UKLawRpHL 6; LR 7 HL 496 , that which is relied on to take away the pre-existing equitable title can be shown to be something tangible and distinct having grave and strong effect to accomplish the purpose..... the conduct of the parties having the equitable interests and all the circumstances must be taken into consideration in order to determine which has the better equity.”
and later :
“ Apart from priority in time the test for ascertaining which encumbrancer has the better equity must be whether either has been guilty of some act or default which prejudices his claim ; ......”
“.... The Lapins are bound by the natural consequences of their acts in arming (a third party) with the power to go into the world as the absolute owner of the lands and thus execute transfers or mortgages of the land to other persons , and they ought to be postponed to the equitable rights of Abigail......”
“.... the doctrine of laches in Courts of Equity is not an arbitrary or a technical doctrine. Where it would be practically unjust to give a remedy , either because the party has , by his conduct , done that which might fairly be regarded as equivalent to a waiver of it , or where by his conduct and neglect he has , though perhaps not waiving that remedy , yet put the other party in a situation in which it would not be reasonable to place him if the remedy were afterwards to be asserted , in either of these cases , lapse of time and delay is most material.”
and later :
“Two circumstances , always important in such cases , are , the length of the delay , and the nature of the acts done during the interval , which might affect either party and cause a balance of justice or injustice in taking the one course or the other so far as relates to the remedy.” (my highlighting)
“ The family connection to the defendant , date of death and age of some of the original signatories to his consent form , from family records are : (a) Adion Ika (uncle) died 13th Nov 1988 ,aged 69 years ; (b) Edouwa Buraman (auntie and grandmother to plaintiff) died 5th September, 2002 , aged 79 yrs. (c) Beiyoun Ika (uncle) died 15 December 2007 , aged 76 years. (d) Dogodag Ika’s data is unknown.”
additionally :
“..... Dagadaube Ika (first cousin to defendant) is now very old and sickly .... and who adopted the Defendant as his only child” and finally “......(the defendant’s father) Billy Ika’s demise in 1958 at age 58”.
“ The defendant , his servants and agents are restrained from further interfering
directly or indirectly with the construction of the plaintiff’s house on the disputed
land.”
DATED : this 12th day of November , 2021
____________________
D.V.FATIAKI
Chief Justice
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