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Vanuatu Commodities Marketing Board v Lessegman [1997] VUSC 24; Civil Case 016 of 1996 (1 August 1997)

IN THE SUPREME COURT OF
THE REPUBLIC OF VANUATU

(Civil Jurisdiction)

BETWEEN:

ass="MsoNormal" align="center" style="text-align: center; mer; margin-top: 0; margin-bottom: 0">

VANUATU COMMODITIES MARKETING BOARD
Plaintiff

AND:

EDWIN LESSEGMAN
Defendafendant

Coram: Mr Justice Oliver A. Saksak

ass="MsoNoMsoNormal" style="margin-top: 0; margin-bottom: 0"> Counsel: Mr Robert Sugden for the Plaintifan>

JUDGMENT

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Preliminary Matter

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This application was heard in Chamber17th July 1997. The Plaintiff applied for a Review of TaxatTaxation by way of a Summons issued under Order 57, Rule 1 of the High Court (Civil Procedure) Rules 1964. The summons was filed on 10th September 1996 returnable on 26th September 1996. Numerous notices of hearing have been served and the Defendant has not appeared on any occasion appointed. The Court proceeded to hear Mr Sugden in absence of the Defendant.

Brief Facts

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By order dated 5th June, 1996 Mr nt Lunabek, then in his capacity as Registrar and Taxing Mang Master awarded the sum of Vatu 320,500 to the Plaintiff�s Solicitors being for professional costs. The Plaintiff�s Solicitors had initially claimed the sum of Vatu 641,000 based on the usual rate of Vatu 20,000 per hour. The Taxing Master reduced this amount by one half of Vatu 10,000 per hour. The Plaintiff�s solicitors then applied for a review of Taxation which was heard by His Honour Judge Vincent Lunabek. By a Judgment dated 9th August 1996, the application for a Review of Taxation was refused. The application now comes before me by way of a review but in a completely new hearing as to costs.

class="MsoNoMsoNormal" style="margin-top: 0; margin-bottom: 0"> Issues

There are two separate issues that I have to deal with. The first issue is whether or not The Chief Registrar andr and Taxing Master who assessed the Costs later sitting as Judge, hear the application for Review of Taxation? The second issue is as to what was the appropriate sum to have been awarded as costs to the Solicitors, whether VT 20,000 per hour or VT 10,000 per hours?

Firsue

In my view the answer to the first issue ought to be in the negative. In his judgment for taxation review, His Lordship Judge Vincent Lunabek said this at paragraph 3:

�At that time, I sat as the CRegistrar/Taxation Master. I still hold the same views....�....�

Although His Lordship sat as a Judge, he gave a jud in which he upheld his views as Chief Registrar and and Taxation Master. That in my opinion cannot have been a review and it is my view that the Applicant has been denied his right. The term �Review� translated means �to see or behold again�. It is an act of looking over something again with a view to correction or improvement. It means also to re-examine or to reconsider something. (see the shorter Oxford English Dictionary).

It is my view therefore that when ae upholds his decision as Chief Registrar/Taxing Master, thr, there has not been a review within the ordinary meaning of the word, and as such, the Applicants have been denied their right to a review to a Judge. If a Judge reviewing taxation has made his determination and the Applicant is yet not contented, the Applicant then has a right to appeal against the decision of the Judge. In Vanuatu this is done in the Court of Appeal. In this case I hold that there has not yet been a �review� and the application is allowed accordingly.

Second Issue

The Applicant says that they do gree that their professional Costs was taxed by the Taxing xing Master at a rate of VT 10,000 per hour. Mr Sugden argued that substantial justice requires that the Applicant gets his costs at the rate of VT 20,000 per hour. He referred me to Article 47(1) of the Constitution which reads:-

�The administration of justice is vested in udiciary, who are subject oect only to the Constitution and the law. The function of the judiciary is to resolve proceedings according to law. If there is no rule of law applicable to a matter before it, a court shall determine the matter according to substantial justice and whenever possible in conformity with custom.�

This submission is made due to the presumption that there is no rule of law in Vanuatu govu governing costs and taxation thereof.

Mr Sugden argued thattion has nothing to do with what a Solicitor gets paid but to obtain justice. F Further he argued that solicitors acting for either parties in a case get paid their full bills either at the time or after taxation. In Vanuatu unless otherwise decided by the Solicitor the rate is VT20,000 per hour. He submitted that where a Court finds for the winning party, substantial justice requires that the losing party reimburses the solicitor the whole of his costs. The rational behind this is that the winning party is forced to go to Court to obtain justice. Where the suing party loses and having put the winning party at an expense that would not have been incurred had the suing party not initiated the Court proceedings, it is fair and just to award costs to the winning party. That cost includes solicitor�s costs which is reimbursed to him in full.

I accept these arguments and submissions.

lass="MsoNoMsoNormal" style="margin-top: 0; margin-bottom: 0"> But Mr Sugden further submitted that the iples as regards taxation in England govern Vanuatu up unti until independence and remain binding to date. This is done by virtue of Article 95(1) & (2) of the Constitution which reads:-

�Existing Laws

95(1) Until otherwise provided by Parliament, all Joint Regulations and subsidiary legislation made thereunder in force immediately before the Day of Independence shall continue in operation on and after the day as if they had been made in pursuance of the Constitution and shall be construed with such adaptations as may be necessary to bring them into conformity with the Constitution.

class="Mss="MsoNormal" style="margin-left: 36.0pt; margin-top: 0; margin-bottom: 0"> (2) Until otherwise provided by Parliament, the British and French laws in forceforce or applied in Vanuatu immediately before the Day of Independence shall on and after that day continue to apply to the extent that they are not expressly revoked or incompatible with the independent status of Vanuatu and wherever possible taking due account of custom.

(3).....�

These provisions fall within the transitionovisions of the Constitution which clearly state that until Parliament provides for the necessary legislation governing a particular subject or matter, the law applicable shall be British or French laws. It has been submitted to me that in Vanuatu there is no statute governing taxation, therefore the principles as applied in England apply in Vanuatu by virtue of Article 95(1) and (2). I find these submissions sound in law and I accept them entirely.

lass="MsoNoMsoNormal" style="margin-top: 0; margin-bottom: 0"> I was referred to the provisions of Articles 92 and 94 of the Constitution as the legal basis for or submitting that the Common Law of England forms part of the law of Vanuatu. I need not to quote those provisions here as it suffices to say that it is a fact, and this Court takes judicial notice of that fact. A number of cases provide clear authority for this:-

(a) Morris Ben v. Public Prosecutor, App Case No. 7 of 1993, 2 3, 2 VLR, 687 at p.689.

(b) Attorney General v. President Frederick K. Timakata, App Case No. 1 o. 1 of 1993 , 2 VLR 679 at pp 682-683.

(c) Lindsay Barrett v. Patterson & Or, App Case No. 122A of 1992, 2 VLR at pp 564-565.

(d) Kalkot MatasKelekele v. Iolu J. Abil, App Case No.7 of 1991, 2 VLR 517 at p. 518.

(e) Marie Noelle Ferrieux v. Banque Indosuez, App Case No. 1 of 1990, 2 VLR 490 at p. 492.

(f) Hon. Willie Jimmy v. The Ombudsman, Civil Case No. 111 of 1995, pp 2, 3, & 5.

(g) Marie Rose Banga v. Emily Waiwo, App case No.1 of 1996, at p. t p. 10.

With these line of cases I persuaded to accept that English Common Law not only is it persuasive but is als also binding on Vanuatu. As regards costs and taxation, the principles applicable in England are binding on the Republic of Vanuatu by virtue of Article 92(2) of the Constitution.

As regards the issue of how much should be awarded in this case, I am of the view that VT20,000 is the right amount. I take judicial notice of the fact that the going rate in Port-Vila at the present time is VT20,000 per hour. I also take judicial notice of the fact that this Court has in the past made Orders awarding costs at VT20,000 per hour. Depending of course on the circumstances surrounding each individual case, here I am persuaded to follow those decisions. I accept that VT20,000 is to be decided on the broad average rate principle. Geography is what the Court has to be concerned with in considering taxation of costs. (See Edwin Pierce Brown II v. Scott & Thompson reported in the Gazette 91/44 30th November 1994 at p.15).

It is without doubt that the costs of and incito all proceedings in the court shall be in the discrdiscretion of the Court (see Order 65 Rule 1 of the High Court (Civil Procedure) Rules 1964). But having held that the principles of Common law apply in Vanuatu, one such principle is that of Geographical consideration as shown by the Edwin Pierce Brown II case (Supra), it is my judgment that the discretion has to be exercised having regard to the geography of the parties to the proceedings. That being so, for Port-Vila the appropriate amount to be claimed on taxation on a party and party basis is VT 20,000 per hour.

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In my jnt therefore, both substantial justice and the Common law of England as applicable inle in Vanuatu require that the appropriate amount to be paid on a party and party cost is VT20,000 per hour. And I conclude therefore, that this is the sum that the solicitor is entitled to charge his client in the instant case to be reimbursed to him by the losing party namely, the Defendant, Mr Lessegman.

I therefore allow the review and order as follows:-

1) The Order of the Taxing Master and Chief Registrar dated the 5th day of June, 1995 be a be and is hereby set aside.

2) That the Plaintiff recover against the Defendant professional cost costs in the sum of VT641,000 plus disbursements in the sum of VT 89,540 totalling to the sum of VT730,540.

ass="MsoNoMsoNormal" style="margin-left: 36.0pt; margin-top: 0; margin-bottom: 0"> 3) There be no further orde to costs.

DATED AT PORT-VILA THIS ................... DAY OF AUGUST, 1997

BY THE COURT

OLIVER A. SAKSAK
Judge


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