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{\f3\fbidi \froman\fcharset2\fprq2{\*\panose 05050102010706020507}Symbol;}{\f10\fbidi \fnil\fcharset2\fprq2{\*\panose 05000000000000000000}Wingdings;}{\f34\fbidi \froman\fcharset0\fprq2{\*\panose 02040503050406030204}Cambria Math;}
{\f36\fbidi \froman\fcharset0\fprq2{\*\panose 02040503050406030204}Cambria;}{\f37\fbidi \fswiss\fcharset0\fprq2{\*\panose 020f0502020204030204}Calibri;}{\flomajor\f31500\fbidi \froman\fcharset0\fprq2{\*\panose 02020603050405020304}Times New Roman;}
{\fdbmajor\f31501\fbidi \froman\fcharset0\fprq2{\*\panose 02020603050405020304}Times New Roman;}{\fhimajor\f31502\fbidi \froman\fcharset0\fprq2{\*\panose 02040503050406030204}Cambria;}
{\fbimajor\f31503\fbidi \froman\fcharset0\fprq2{\*\panose 02020603050405020304}Times New Roman;}{\flominor\f31504\fbidi \froman\fcharset0\fprq2{\*\panose 02020603050405020304}Times New Roman;}
{\fdbminor\f31505\fbidi \froman\fcharset0\fprq2{\*\panose 02020603050405020304}Times New Roman;}{\fhiminor\f31506\fbidi \fswiss\fcharset0\fprq2{\*\panose 020f0502020204030204}Calibri;}
{\fbiminor\f31507\fbidi \froman\fcharset0\fprq2{\*\panose 02020603050405020304}Times New Roman;}{\f39\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\f40\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}
{\f42\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}{\f43\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}{\f44\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}{\f45\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}
{\f46\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}{\f47\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}{\f59\fbidi \fmodern\fcharset238\fprq1 Courier New CE;}{\f60\fbidi \fmodern\fcharset204\fprq1 Courier New Cyr;}
{\f62\fbidi \fmodern\fcharset161\fprq1 Courier New Greek;}{\f63\fbidi \fmodern\fcharset162\fprq1 Courier New Tur;}{\f64\fbidi \fmodern\fcharset177\fprq1 Courier New (Hebrew);}{\f65\fbidi \fmodern\fcharset178\fprq1 Courier New (Arabic);}
{\f66\fbidi \fmodern\fcharset186\fprq1 Courier New Baltic;}{\f67\fbidi \fmodern\fcharset163\fprq1 Courier New (Vietnamese);}{\f379\fbidi \froman\fcharset238\fprq2 Cambria Math CE;}{\f380\fbidi \froman\fcharset204\fprq2 Cambria Math Cyr;}
{\f382\fbidi \froman\fcharset161\fprq2 Cambria Math Greek;}{\f383\fbidi \froman\fcharset162\fprq2 Cambria Math Tur;}{\f386\fbidi \froman\fcharset186\fprq2 Cambria Math Baltic;}{\f387\fbidi \froman\fcharset163\fprq2 Cambria Math (Vietnamese);}
{\f399\fbidi \froman\fcharset238\fprq2 Cambria CE;}{\f400\fbidi \froman\fcharset204\fprq2 Cambria Cyr;}{\f402\fbidi \froman\fcharset161\fprq2 Cambria Greek;}{\f403\fbidi \froman\fcharset162\fprq2 Cambria Tur;}
{\f406\fbidi \froman\fcharset186\fprq2 Cambria Baltic;}{\f407\fbidi \froman\fcharset163\fprq2 Cambria (Vietnamese);}{\f409\fbidi \fswiss\fcharset238\fprq2 Calibri CE;}{\f410\fbidi \fswiss\fcharset204\fprq2 Calibri Cyr;}
{\f412\fbidi \fswiss\fcharset161\fprq2 Calibri Greek;}{\f413\fbidi \fswiss\fcharset162\fprq2 Calibri Tur;}{\f416\fbidi \fswiss\fcharset186\fprq2 Calibri Baltic;}{\f417\fbidi \fswiss\fcharset163\fprq2 Calibri (Vietnamese);}
{\flomajor\f31508\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\flomajor\f31509\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}{\flomajor\f31511\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}
{\flomajor\f31512\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}{\flomajor\f31513\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}{\flomajor\f31514\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}
{\flomajor\f31515\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}{\flomajor\f31516\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}{\fdbmajor\f31518\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}
{\fdbmajor\f31519\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}{\fdbmajor\f31521\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}{\fdbmajor\f31522\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}
{\fdbmajor\f31523\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}{\fdbmajor\f31524\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}{\fdbmajor\f31525\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}
{\fdbmajor\f31526\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}{\fhimajor\f31528\fbidi \froman\fcharset238\fprq2 Cambria CE;}{\fhimajor\f31529\fbidi \froman\fcharset204\fprq2 Cambria Cyr;}
{\fhimajor\f31531\fbidi \froman\fcharset161\fprq2 Cambria Greek;}{\fhimajor\f31532\fbidi \froman\fcharset162\fprq2 Cambria Tur;}{\fhimajor\f31535\fbidi \froman\fcharset186\fprq2 Cambria Baltic;}
{\fhimajor\f31536\fbidi \froman\fcharset163\fprq2 Cambria (Vietnamese);}{\fbimajor\f31538\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\fbimajor\f31539\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}
{\fbimajor\f31541\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}{\fbimajor\f31542\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}{\fbimajor\f31543\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}
{\fbimajor\f31544\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}{\fbimajor\f31545\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}{\fbimajor\f31546\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}
{\flominor\f31548\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\flominor\f31549\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}{\flominor\f31551\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}
{\flominor\f31552\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}{\flominor\f31553\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}{\flominor\f31554\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}
{\flominor\f31555\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}{\flominor\f31556\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}{\fdbminor\f31558\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}
{\fdbminor\f31559\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}{\fdbminor\f31561\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}{\fdbminor\f31562\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}
{\fdbminor\f31563\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}{\fdbminor\f31564\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}{\fdbminor\f31565\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}
{\fdbminor\f31566\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}{\fhiminor\f31568\fbidi \fswiss\fcharset238\fprq2 Calibri CE;}{\fhiminor\f31569\fbidi \fswiss\fcharset204\fprq2 Calibri Cyr;}
{\fhiminor\f31571\fbidi \fswiss\fcharset161\fprq2 Calibri Greek;}{\fhiminor\f31572\fbidi \fswiss\fcharset162\fprq2 Calibri Tur;}{\fhiminor\f31575\fbidi \fswiss\fcharset186\fprq2 Calibri Baltic;}
{\fhiminor\f31576\fbidi \fswiss\fcharset163\fprq2 Calibri (Vietnamese);}{\fbiminor\f31578\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\fbiminor\f31579\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}
{\fbiminor\f31581\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}{\fbiminor\f31582\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}{\fbiminor\f31583\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}
{\fbiminor\f31584\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}{\fbiminor\f31585\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}{\fbiminor\f31586\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}}
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\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \ltrpar\s28\qc \li0\ri0\sl-360\slmult0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14816132 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 
\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid16189640\charrsid14816132 IN THE HIGH COURT OF THE COOK ISLANDS
\par HELD AT RAROTONGA
\par (CIVIL DIVISION)
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640 
\par PLAINT 130/96
\par 
\par BETWEEN:
\par 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 SAMUEL KARAPONGA}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640 
\par P}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 earl Farmer of Manihiki
\par Plaintiff
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640 
\par AND:
\par 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 MITSUGU NAKADA}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640 
\par Pearl Tech}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 nician of Manihiki
\par First Defendant
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640 
\par AND
\par 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 APII PIHO}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 Pearl Farmer}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14816132  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 of Manihiki
\par Second Defendant
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640 
\par }\pard \ltrpar\s28\ql \li0\ri0\sl-360\slmult0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14816132 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640 Counsel: }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid16189640\charrsid16189640 Mrs. T.P.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14816132  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 Browne }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640 for Plaintiff}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 Mr. A.M.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14816132  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 Manarangi}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14816132 
 for Defendants}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640 
\par 
\par Hearing: 25, 26, 27 August 1997
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8800292 Judgment:}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640  22 December 1997
\par }\pard\plain \ltrpar\s39\qc \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16189640 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 
\af0 \ltrch\fcs0 \b\insrsid12146328\charrsid14816132 JUDGMENT OF QUILLIAM C.J.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid396695 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 The First Defendant (Nakada) has commenced two actions}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid396695  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 against the Plaintiff (Karaponga).}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 He is a pearl technician who was based on Manihiki and who has seeded }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8800292\charrsid16189640 oysters for}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
 Karaponga, a pearl farmer on Manihiki.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 The basis of}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14816132  }{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid12146328\charrsid16189640 their arrangement was that Nakada would receive 34% of the proceeds of sale of pearls harvested from any oysters seeded}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid396695  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 by him for Karaponga.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 The two actions differ only in}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid396695  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 re
spect of the season in which the seeding was done, and it is conceded on behalf of Karaponga that he is liable to Nakada in both actions, although the amounts appear to be subject to valuations yet to be made.
\par In respect of the earlier of the two actions (
No. 130/96) Karaponga has filed a Counterclaim and Set-off in which, pursuant to Rule 110 of the Code of Civil Procedure, he has joined a second defendant (Piho) and has claimed relief against Nakada in respect of certain matters, and relief against Nakad
a and Piho jointly and severally in respect of other matters. Karaponga has declined to pay the amounts for which he is liable until it is determined whether he should succeed by way of counterclaim or set-off.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12146328 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 It is unnecessary to set out the details of th
e actions any further because I was informed by counsel at the commencement of the trial that the only matter now in issue is the counterclaim, and, more specifically, whether Nakada and Piho, or either of them, is liable for loss suffered by Karaponga wh
ose pearls were in the end sold to one Maima Tehei who has not paid for them and has disappeared. The counterclaim is pursued in contract, tort and bailment.
\par There is no dispute over the fact that Karaponga entered into a contract with Nakada for the latter to seed his}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 oysters.}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 A number of other pearl farmers on Manihiki}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 also engaged Nakada.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 The contract was in writing and}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 provided that Nakada would harvest, polish and grade the pearls in return for receiving 34% of the value of the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328  }{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 pearls.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Although not stated in the written contract it}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 is clear from the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8800292\charrsid16189640 evidence that}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640  there was a collateral oral agreement that if Karaponga could not sell his pearls within three months then Nakada would undertake the sale}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 of them on Karaponga}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s behalf.}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 It was for this reason}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
that the rate of payment was increased to 34% from the more usual 25%.
\par In the relevant season Nakada seeded 1040 oysters for Karaponga and in due course extracted 641 pearls from}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 those oysters.}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Karaponga put a reserve price of $100}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 each on those pearls and left them with Nakada for the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 purpose of sale.}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Several attempts were made by Nakada to}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
sell the pearls, both in Rarotonga and in Australia, but}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 without success.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Although Karaponga went to Rarotonga}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
with Nakada when negotiations for sale were to take place there is no doubt that Karaponga was excluded from any such negotiations and his pearls were in the custody of Nakada throughout.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8012950 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
Apii Piho was one of the group of pearl farmers on Manihiki and, as he put it, "I have often been nominated by the group as their spokesperson and representative on}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8012950  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 issues affecting the group."}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Piho and Nakada acted for}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid8012950  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 the most part together in the attempts to sell Karaponga}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 s pearls.
\par Eventually Piho was left by Nakada with Karaponga}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s pearls (and those of some others as well) for the purpose}{\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid8012950  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 of finding a buyer.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
Piho was introduced by Karaponga}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8012950  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 brother, Daniel Apii, to a Tahitian woman named Maima Tehei, who was in Rarotonga in order to purchase pearls. Maima Tehei was interested in purchasing Karaponga}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8012950  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 pearls on consignment.}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 The negotiations which followed}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8012950  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 were carried out by Daniel Apii on Karaponga}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
s behalf. Karaponga had by then agreed to lower his reserve price to $90.
\par On 23 March 1995 Piho and Apii met Maima Tehei and}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8012950  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 as a result a sale was arranged.}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 It was evidenced by a}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8012950  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
handwritten agreement prepared by Piho which records that it is made "between Apii Niho (Pearl Producer) and Maima Tehei (seller)", and which records further:
\par {\listtext\tab}}\pard\plain \ltrpar\s21\qj \li1440\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\ls14\outlinelevel0\adjustright\rin0\lin1440\itap0\pararsid8012950 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 
\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 "I, Apii Piho do solemnly declare that I have agreed to allow Maima Tehei to take our pearls on consignment.
\par {\listtext\tab}}\pard \ltrpar\s21\qj \li1440\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\ls14\outlinelevel0\adjustright\rin0\lin1440\itap0\pararsid13001463 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
"In return Maima Tehei has agreed to insure the pearls to its full value on receiving the total parcel of pearls and has guaranteed the sale of pearls to the value agreed by the pearl producers.."
\par }\pard\plain \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid406862 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid12146328\charrsid1597362 The document then records that the transaction included 641 of Karaponga}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid1597362 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid1597362 
s pearls at}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640  $90NZ }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8800292 p}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8800292\charrsid16189640 er}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640  piece, a total price of $57,690. The document was then signed by Piho and Maima Tehei, and their signatures were witnessed by Apii.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1597362 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 The pearls were duly handed to Maima Tehei who failed}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1597362  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 to insure them, and then disappeared.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 Karaponga}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s loss}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1597362  }{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid12146328\charrsid16189640 was $57,690, and Nakada}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s claim against him was 34% of that amount.
\par The question then is as to whose liability it was that this loss occurred.
\par It is necessary first to refer to the joinder of Piho in the proceedings by means of the counterclaim.
\par Rule 110 of the Code of Civil Procedure Provides:
\par {\listtext\tab}}\pard\plain \ltrpar\s21\qj \li1440\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\ls14\outlinelevel0\adjustright\rin0\lin1440\itap0\pararsid16189640 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 
\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 "110. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid12146328\charrsid14835230 Counterclaim against plaintiff and another person}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 \emdash A defendant may set up a counterclaim against}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14835230  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
a plaintiff and some other person.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 In any such}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14835230  }{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid12146328\charrsid16189640 
case he shall serve a copy of the counterclaim on that other person...; and the court may, on the application of the plaintiff or that other person, make such orders and give all such directions as may be necessary to enable any questions at issue between
 all the parties to be determined at the hearing of the action."
\par }\pard\plain \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14420859 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 On behalf of Nakada it was argued that this rule did no permit the joinder of Niho in the present actions because those actions related to claims in respect of the 1996 and 1997 harvests, and 
the counterclaim related to the 1994}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14420859  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 harvest.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 In support of this submission reliance was}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14420859  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
placed on Rule 150 of the New Zealand High Court Rules which provides:
\par {\listtext\tab}}\pard\plain \ltrpar\s21\qj \li1440\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\ls14\outlinelevel0\adjustright\rin0\lin1440\itap0\pararsid16189640 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 
\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 "150. ...if the defendan
t has a counterclaim against the plaintiff along with any other person (whether a party to the proceeding or not) }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid12146328\charrsid9249542 for any }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid10106466 
relief relating to or connected with the original subject-}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid12146328\charrsid9249542 matter of the proceeding}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 he may...file a statement of the counterclaim.." (}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10106466 emphasis mine)}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
\par }\pard\plain \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9249542 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 It is apparent from the words underlined that the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9249542  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
two provisions are significantly different.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Whether}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9249542  }{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid12146328\charrsid16189640 R.110 could encompass a counterclaim based upon some wholly different cause of action may well be in doubt, but I am sure that it must per
mit the present counterclaim which is directly connected with the relationship between Nakada and Karaponga in respect of successive yearly contracts. I accept that the matters raised in the counterclaim could equally have been the subject of separate pro
ceedings, but I consider they also fall within the terms of R.110.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14166690 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 The sale on consignment of the pearls to Maima Tehei}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9249542  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 was carried out by Piho.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 It was an express term of the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9249542  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 handwritten contract prepared by Piho that the pearls were}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid9249542  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 to be insured.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 This was
 not done and this failure was}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9249542  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 the immediate cause of Karaponga}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s loss.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Maima Tehei}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9249542  }{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 disappeared with the pearls and there seems to be no}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9249542  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
prospect of her being traced.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 In evidence Piho was}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9249542  }{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid12146328\charrsid16189640 refreshingly frank in accepting responsibility for what}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9249542  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 happened.}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 He acknowledged that it was his responsibility}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9249542  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 to see that the requirement as to insurance was complied}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14166690  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 with}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid14166690  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 before he handed over the pearls.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
He conceded that}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14166690  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 the sale on consignment which he arranged was "a big mistake".
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid83237 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 It remains then to consider the bas
is on which his liability is to be assessed, and whether he alone is liable or whether Nakada is also.
\par The precise relationship between Piho and Nakada is}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 not clear.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 It has been described as a partnership, but}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 this is at least doubtful.}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 What is undoubted is that}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
initially Karaponga entrusted his pearls to Nakada for}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 sale.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid12146328\charrsid16189640 From the time of the final harvest Karaponga}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 scarcely saw his pearls.}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 They were set out (along with}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
the pearls of other farmers) by Nakada for inspection, and}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 each farmer was given a grading sheet.}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 They never left}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10106466  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Nakada}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s possession, however, and it was he who took them}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 to Rarotonga with a view to sale.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 At Rarotonga Karaponga}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 was not permitted to be present at the viewing of the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
pearls by prospective purchasers.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Of the farmers, only}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid12146328\charrsid16189640 Piho was permitted to be present.
\par No sale eventuated during this visit to Rarotonga and Nakada returned to Manihiki leaving the pearls in}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Piho}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s custody.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
Piho then proposed a sale to Maima}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Tehei but Nakada refused to agree.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8800292\charrsid16189640 Later, Nakada}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640  and}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
Piho went to Rarotonga again and from there Nakada took Karaponga}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s pearls to Australia and Piho went to New}{\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Zealand.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
Nakada was unable was unable to obtain a sale}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 in Australia and then sent the pearls to Piho who was by}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 then in Rarotonga.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
There followed the negotiations by}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8800292\charrsid16189640 Piho}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8800292  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid8800292\charrsid16189640 for}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640  a sale to Maima Tehei.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
In March 1995 Nakada was}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 told of a possible sale to Maima Tehei at Karaponga}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 reserve price of $90 per piece.}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 He consented to that}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
sale on consignment on the condition that the pearls were}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 insured.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Nakada acknowledged that he did not speak to}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Karaponga before giving that consent.

\par Although there were occasional communications between Karaponga and Piho, I can see no basis upon which it could be said that Karaponga ever authorised Piho to act as }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237\charrsid16189640 his}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid83237  agent}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640  for the purposes of sale.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
It is undoubted that it}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 was Nakada to whom Karaponga had entrusted his pearls for sale, and this was in accordance with the contract between}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 them.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
It was Nakada}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s decision to hand the pearls over}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 to Piho but this did not relieve him of his responsibility to Karaponga.
\par At no stage did Karaponga give his consent to a sale}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 by Piho.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Although his brother, Daniel Apii,}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 was present}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 at the sale there is no evidence that he had authority from Karaponga to agree to the sale or to the terms of a sale.
\par There is, I think, no doubt that Piho acted either as Nakada}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s agent for the purpose of selling Karaponga}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s pearls in accordance with the contract between Nakada and Karaponga, or as a gratuitous bailee.
\par If it was the former, then Piho departed from Nakada}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s express instruction not to sell on consignment unless}{\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 insurance was arranged.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
In that case Piho is personally}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 liable upon a warranty of authority for Karaponga}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s loss. If it was the latter, then he failed in his duty of care to Karaponga as a gratuitous bailee and again is liable directly to Karaponga.
\par Nakada}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s position is, however, different.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 He had}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 a contractual obligation to Karaponga to arrange a sale at not less than Karaponga}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 s amended reserve price of $90}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 per piece.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 He gave his consent to Piho to sell at that}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 price, but upon the condition that insurance was arranged. I can see no basis upon which he can be held liable to}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 Karaponga.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 He had discharged his obligation and had acted}{\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 with due care in his instructions to Piho.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12146328\charrsid16189640 He cannot}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 be held responsible for the fact that Piho departed from his express instructions.
\par In the result I consider that Karaponga is entitled}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 to succeed against Piho but not against Nakada.}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 The}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
amount claimed against Piho is$57,690, but there is also a claim for interest in respect of which there is no evidence.
\par There will be judgment on the Counterclaim for Karaponga against Piho, and for Nakada against Karaponga.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 I am not aware whether i
t is necessary to enter judgment}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 for Nakada on his two actions against Karaponga.}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid16189640\charrsid16189640  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 In the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
circumstances leave is reserved to all parties to apply further as to the precise form of the judgment which}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid83237  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12146328\charrsid16189640 
should now be entered if they are unable to agree on this.
\par Similarly, leave is reserved to apply for costs.
\par }{\*\themedata 504b030414000600080000002100828abc13fa0000001c020000130000005b436f6e74656e745f54797065735d2e786d6cac91cb6ac3301045f785fe83d0b6d8
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