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\li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9700012 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid9700012\charrsid9700012 [2004] 4 ITELR 877 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9700012 {\fs24\lang2057\langfe1033\langnp2057\insrsid9700012\charrsid9700012 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1840213 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid1840213\charrsid337216 HIGH COURT OF THE COOK ISLANDS \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid1840213\charrsid12462650 RAROTONGA \par (CIVIL DIVISION) \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\fs24\lang2057\langfe1033\langnp2057\insrsid1840213 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9136126 {\fs24\lang2057\langfe1033\langnp2057\insrsid9136126\charrsid9713882 Plaint no 17/2001 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\fs24\lang2057\langfe1033\langnp2057\insrsid9136126\charrsid337216 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1840213 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid1840213\charrsid337216 A \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1840213 {\fs24\lang2057\langfe1033\langnp2057\insrsid1840213\charrsid13504268 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1840213 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid4289063\charrsid12462650 v}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid1840213\charrsid12462650 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1840213 {\fs24\lang2057\langfe1033\langnp2057\insrsid1840213\charrsid13504268 \par }\pard \qc \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1840213 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid1840213\charrsid337216 B}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid12462650 }{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid4289063 and}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid9713882 }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 others \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1840213 {\fs24\lang2057\langfe1033\langnp2057\insrsid1840213\charrsid9136126 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid1840213\charrsid337216 WILLIAMS J}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1840213\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid9713882 HEARING DATE: 20 MARCH 2002 \par JUDGMENT DATE: 4 APRIL 2002 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1840213\charrsid9713882 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Administration - Cook Islands}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid14094718 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 - Secrecy -Action against trust allegedly created to deprive judgment creditor in foreign proceedings -Application for discovery - Whether discovery prohibited by statute - Discovery permitted where provisions of Act required - International Trusts Act 19 84, ss 13B, 23 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1840213\charrsid9136126 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Procedure - Cook Islands - Di}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid6573613 scovery }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 -Action against trust allegedly created to deprive judgment creditor in foreign proceedings - Whether discovery prohibited by statute - Discovery permitted where provisions of Act required - International Trusts Act 1984, ss 13B, 23 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid9136126 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 An action was taken against a Cook Islands trust registered under the International Trusts Act 1984 alleging that it had been created to deprive the plaintiff of the benefit of a judgment debt resulting from legal action in the USA. Section 13B of th}{ \fs24\lang2057\langfe1033\langnp2057\insrsid12271817 e}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Act provided for causes of action which would enable the plaintiffs to recover from the trust the amount required to satisfy any general damages or restitutionary order under the foreign judgment. The plaintiff applied for orders of discovery of documents rel a ting to the establishment and affairs of the trust. The defendants resisted the order for discovery on the ground that to give discovery would constitute a criminal offence under s 23(1) of the Act which provided that it was an offence to communicate to a ny other person any information relating to the establishment or affairs of an international trust, except }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 where the provisions of this Act require}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 and subject to the other provisions of s 23. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid11295420 HELD}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid11295420 (allowing the application for discovery):}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 On its true c onstruction s 23 of the International Trusts Act 1984 did not prohibit orders for discovery of documents concerning the establishment of a trust if those documents had reasonably to be revealed to ensure fair and proper determination of a cause of action under s }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid4816703 13 of the Act. Such orders were required to make the provisions of s 13 work. Section 23 was}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 subject to exception where the provisions of the Act required and in}{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 determining what the provisions of the Act required the court would work out a practical interpretation that appeared to accord best with the intention of Parliament.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid11295420 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 There was no indication that Parliament had intended illicit or illegal dealings to take place under the cover of the Act and the fraud provisions of s 13 would be rendered us eless if in s 13 cases there could not be full and proper discovery (see }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid11295420 [30]-[34],}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 post). }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid11295420 Re Galileo Group Ltd, Elles v Hambros Bank Ltd (Bank of England intervening)}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [1999] Ch 100 and }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid11295420 Northland Milk Vendors Assoc Inc v Northern Milk Ltd }{\fs24\lang2057\langfe1033\langnp2057\insrsid3677212 [1988}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 ] 1 NZLR 530 applied. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Cases referred to in judgment \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 515 South Orange Grove Owners Assoc v The Orange Grove Partners (6 November 1995, unreported), Cook Is CA. \par Controller and }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 Auditor-General v Davison [1996] }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 2 NZLR 278, NZ CA. \par Galileo Group Ltd, Re, Elles v Hambros Bank Ltd (Bank of England intervening) [1999] Ch 100, [1998] 1 All ER 545, [1998] 1 BCLC 318, [1998] BCC 228. \par Northland Milk Vendors Assoc Inc v Northern Milk Ltd [1988] 1 NZLR 530, NZ CA. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Counsel: \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid12462650 J}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12462650 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 R F Fard}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 ell}{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 (NZ Bar) for the plaintiff. \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 A F G}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 rant}{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 (NZ Bar) for the settlors. \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 W Akel}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (NZ Bar) for the trustees. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Solicitors: \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Browne Gibson Harvey}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 for the plaintiff.}{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 M C Mitchell and Co}{\fs24\lang2057\langfe1033\langnp2057\insrsid5189214 for the settlors.}{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Timothy Arnold}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 for the trustees. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }\pard \qr \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7879728 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Cur adv vult \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 4 APRIL 2002}{\fs24\lang2057\langfe1033\langnp2057\insrsid11295420 . THE FOLLOWING JUDG}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 MENT WAS DELIVERED. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 WILLIAMS J. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 The Nature of the Proceedings \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [1]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid15233370 The plaintiff, A, is a bank, first defendant E is a settlor and together with her husband (first defendant B) and thei}{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid15233370 r children they are benefici}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid15233370 aries of the trust. B also transferred property to the trust. The trust is}{\fs24\lang2057\langfe1033\langnp2057\insrsid11417965 a}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid15233370 registered international trust pursuant to the International Trusts Act 1984. The Cook Islands Trust & Banking Corporation Ltd is a trustee company licensed pursuant to the Truste e Companies Act 1981-82 and carries on the business of the creation, establishment, maintenance and administration of international trusts.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [2]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 The trust was purportedly established and created pursuant to a trust settlement dated 12 July 2000 made betwee n the first defendants and the second defendants (C and D) as trustees. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [3]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 The first defendants are also the sole shareholders of Group Inc, which was indebted to the plaintiff under a $US 17m promissory note dated 31 May 1999. They unconditionally guara nteed full payment to the plaintiff of all indebtedness owed under the note. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [4]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 It was alleged that the defendants were in breach of their obligations as guarantors and arbitration proceedings were commenced by the plaintiff against the first defendants claiming in excess of $US 17m in July 2000. It is contended by the plaintiff that while the arbitration proceedings were pending the first defendants allegedly transferred assets to the second defendants in their capacities as trustees of the trust for no consideration. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [5]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 On 31 October the first defendants consented to two arbitration awards against them and in favour of the plaintiff for the amounts due under the guarantee. On 28 December 2000 the Circuit Court for Baltimore City, State of Maryland, Uni ted States, entered a judgment on the first arbitration award against the first defendants. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [6]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 The central allegation against the defendants in these proceedings, which}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2772499 are brought pursuant to s 13B(1}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 ) of the International Trusts Act, is as follows: \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7879728\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11154107 {\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Th at the transfer of the Residence, Furnishings and Liquid Assets to the Second Defendants as trustees of the Trust were [sic] made with the intention and }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid6978033 effort}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 to hinder, delay, deprive or defraud the Plaintiff and has left the First Defendants without pro perty sufficient to satisfy the First Defendants indebtedness to the Plaintiff or in respect of the Guaranty evidenced by the judgment entered in the Circuit Court State of M entered on 28 December 2000 in favour of the Plaintiff in the amount of United S tates Dollars Sixteen Million }{\fs24\lang2057\langfe1033\langnp2057\insrsid15546789 E}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 ight Hundred Forty One Thousand One Hundred and Twenty Dollars Twenty Nine Cents (USD$ 16,841,120.29) together with pre-judgment interest in the amount of United States Dollars Six Hundred Thirty Five Thousand Forty Dollars an d Sixty Cents (USD$ 635,040.60) plus post-judgment interest and costs pursuant to the First Defendants consenting to an arbitration award dated 31 October 2000 against them in favour of the Plaintiff for amounts due under the Guaranty.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [7]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 There is pending an application to amend the statement of claim by adding a new cause of action but that is not material to the issues to be determined in this judgment. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid11800750 The Issue for Determination}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid9136126 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 [8]}{\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 By application dated 8 February 2002 the plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid13922978 applied}{\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 for orders for discovery against first defendants B and E and D the second}{\fs24\lang2057\langfe1033\langnp2057\insrsid11800750 named second}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 defendant. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid657095 [9]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid657095 It is not disputed that the }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid11557621 plaintiff}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304\charrsid11557621 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid11557621 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid657095 application for specific discovery encompasses documents }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid657095 relating to the es}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid657095 tablishment, constitution, busi}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid657095 ness undertaking or affairs of an international trust}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid657095 , namely the trust which}{\fs24\lang2057\langfe1033\langnp2057\insrsid657095 is involved in this litigation.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid657095\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid13858567 [10]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid13858567 On 18 March 2002 the solicitors for the first defendants filed a notice of opposition to the application, the first ground of which stated:}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11154107 {\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 1. Section 23(1) International Trust}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6109066 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 Act 1984 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9989137 {\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11154107 {\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 To the extent that discovery is sought of documentation }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid424304 "}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 relating to the establishment, constitution, business undertaking or affairs of}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid424304 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 The Trust, }{\fs24\lang2057\langfe1033\langnp2057\insrsid6572667 s}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 ection 23(1) of the International }{\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 Trusts Act provides that it is an offence for such information to be }{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 "}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid10962765 divulge}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 [d] or communicate[d] to any}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid8469441 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \'85}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8469441 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 person}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 and it is accordingly contended that discovery cannot be ordered of such documentation.}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\fs24\lang2057\langfe1033\langnp2057\insrsid11154107\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 [11]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 The notice of opposition filed on behalf of C dated 15 March 2002 makes the same objection. The issue for determination is therefore whether s 23(1) precludes an order for discovery in this case. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [12]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 An unusual feature of the case is that some documents relating to the establishment, constitution, business undertaking or affairs of the trust have been secured by the plaintiff in the course of discovery orders a gainst the first defendants in the state proceedings. However, the parties agreed that the court could not avoid a ruling on the applicability of s 23 for two reasons. First the question would remain as to whether the documentation secured in the Maryland proceedings could be used in these proceedings without breaching s 23. Second, and in any event, there were additional documents relating to the establishment of the trust which the plaintiff was seeking in its specific discovery application. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12012935 Relevant Statutory Provisions}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [13]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 The International Trusts Act 1984 as amended in 1999 creates a regime for the establishment of international trusts in the Cook Islands. It is part and parcel of the legislation that has been passed in the Cook Islands to establish itself as a South Pacific tax haven. This legislation comprises the Cook Islands Monetary Board Act 1981, the Offshore Banking Act 1981, the Internatio}{\fs24\lang2057\langfe1033\langnp2057\insrsid12064684 nal Companies Act 1981-82, the O}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 ffshore Insurance Act 1981-82, the Trustee Companies Act 1981-82, the Int ernational Partnership Act 1984 and the International Trusts Act 1984. A prominent feature of the various Acts is the incorporation of secrecy provisions which broadly prohibit any person or entity from divulging}{ \fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 information relating to an international company or a foreign company, trust or partnership or to offshore banking or insurance business.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid3628023 [14]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid3628023 So far as the International Trusts Act is concerned the relevant provisions for the purposes of this judgment are the following:}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid215870 3. Saving of existing laws}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid215870 {\fs24\lang2057\langfe1033\langnp2057\insrsid215870\charrsid215870 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid215870 The laws applicable to trusts in force in the Cook Islands shall apply to international trusts except in so far as they are inconsistent with or have been modified by the provisions of this Act.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15013953 {\fs24\lang2057\langfe1033\langnp2057\insrsid215870 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid215870 \'85}{\fs24\lang2057\langfe1033\langnp2057\insrsid215870\charrsid337216 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 13B. Fraud \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (1) Where it is proven beyond reasonable doubt by a creditor that an international trust settled or established or property }{\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 disposed to an interna}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 tional trust}{\fs24\lang2057\langfe1033\langnp2057\insrsid6425156 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6425156 {\fs24\lang2057\langfe1033\langnp2057\insrsid6425156\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid3757208 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (a) was so settled established or disposed by or on behalf of the settlor with principal intent to defraud that creditor of the settlor; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid3757208 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (b) did at the time such settlement establishment or disposition took place render the settlor, insolvent or without property by which that creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s claim (if successful) could have been satisfied, \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 then such settlement est ablishment or disposition shall not be void or voidable and the international trust shall be liable to satisfy the creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s claim out of the property which but for the settlement establishment or disposition would have been available to satisfy the creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s claim and such liability shall only be to the extent of the interest that the settlor had in the property prior to settlement establishment }{ \fs24\lang2057\langfe1033\langnp2057\insrsid6425156 or disposition and any accumula}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 tion to the property (if any) subsequent thereto. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (2) In determining whether a n international trust, settled or established or a disposition, has rendered the settlor insolvent or without property by which a creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s claim (if successful) may be satisfied, regard shall be had to the fair market value of the settlor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s property, (no t being property of or relating to the trust) at the time immediately after the settlement establishment or the disposition referred to in subsection (1)(b) and in the event that the fair market value of such property exceeded the value of the creditor}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s c laim, at that time, after the settlement establishment or disposition, the trust so settled or established or the disposition shall for all purposes be deemed not to have been so settled established or the property disposed of with intent to defraud the c reditor. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (3) An international trust settled or established and a disposition to such trust shall for all purposes be deemed not to be have been so settled or established, or the property disposed of with intent to defraud a creditor- \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid3757208 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (a) if settled establ ished or the disposition takes place after the expiration of 2 years from the date that creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s cause of action accrued; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid3757208 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (b) where settled, established or the disposition takes place before the expiration of 2 years from the date that the creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s cause of action}{\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 accrued, that creditor fails to commence in a court of competent jurisdiction proceedings in respect of that creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s cause of action before the expiration of 1 year from the date such settlement establishment or disposition took place, \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Provided that this subsection shall not have effect if, and subject to subsection (5), at the time of settlement, establishment, or disposition, as the case may be, proceedings in respect of that creditor}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s cause of action against that settlor have already been commenced i}{ \fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 n a court of competent jurisdiction.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (4) An international trust settled or established and a dis position of property to such trust shall for all purposes be deemed not to have been so settled or established, or the property disposed of with intent to defraud a creditor if the settlement establishment or disposition of property took place before that creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s cause of action accrued. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid1455984\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid1455984 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (5) A settlor shall not have imputed to him an intent to defraud a creditor, solely by reason that the settlor-}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2374786 {\fs24\lang2057\langfe1033\langnp2057\insrsid2374786\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid1376594 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (a) has settled or established a trust or has disposed of property to such trust within two years from the date of that creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s cause of action accruing;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2374786 {\fs24\lang2057\langfe1033\langnp2057\insrsid2374786 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid1376594 {\fs24\lang2057\langfe1033\langnp2057\insrsid2374786 (b) has retained, possesses or acquires any of the powers or benefits referred to in paragraphs (a) to (f) of section 13C;}{\fs24\lang2057\langfe1033\langnp2057\insrsid2374786\charrsid337216 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid1376594 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (c) is a beneficiary, trustee, or protector; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid1376594 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (d) has settled or established a t rust, or has disposed of property to such trust at a time when proceedings in respect of that creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s cause of action against that settlor have already been commenced in a court of competent jurisdiction. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (6) Where an international trust is liable to satisfy a creditor}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s claim in the manner provided for in subsection (1)- \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid3422098 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (a) the creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s rights to recovery shall be limited to that property referred to in subsection (1), or to the proceeds of that property, to the exclusion of any rights against the trustees of the international trust or any of them, against any other property of the international trust, or against any other of the property or assets of the trustees of the international trust, or any of them; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid3422098 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (b) where the international trust is unable to satisfy the creditor}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s claim by reason of the fact that the property referred to in subsection (1) has been disposed of, other than to a bona fide purchaser for value, then any such disposition shall be void. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (7) For the purpose of this section the onus of proof of the settlor}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s intent to defraud the creditor lies on the creditor. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (8) For the purposes of this section and section 13K- \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid11932620 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid6307573 (a) the date of the cause of action accruing shall be, the date of that act}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6882622\charrsid6307573 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid6307573 or omission which shall be relied upon to either partly or wholly establish the cause of action, and if there is more than one act or the omission shall be a}{\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid6307573 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid6307573 continuing one, the date of the first act or the date that the omission shall have first occurred, as the case may be, shall be the date that the cause of action shall have accrued;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11932620 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid11932620 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (b) the term }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 cause of action}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 means the earliest cause of action capable of assertion by a creditor against the settlor of an international trust or, as the case may be, against the settlor of property upon an international trust, by which that creditor has established (or may establish) an enforceable claim against that settlor; \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid11932620 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (c) where a creditor has, or asserts, or could have asserted, multiple or successive causes of action against a settlor (whether by virtue of the nature of the relevant circumstances of the case, or by reason of having atta}{ \fs24\lang2057\langfe1033\langnp2057\insrsid15739855 ined the status of a }{\fs24\lang2057\langfe1033\langnp2057\insrsid15739855\charrsid10705587 judg}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid10705587 ment}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 creditor in respect of one or more of such causes of action, or by reason of asserting or being able to assert an allegedly fraudulent settlement of or disposition to an international trust, or otherwise) the entitlement of such a credi tor to relief under this section shall be determined, and the periods referred to in this section shall be calculated with reference to one only of the creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s causes of action, being that cause of action which accrued first in time in accordance with paragraph (b); \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid11932620 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid3694504 (d) nothing in paragraphs (b) or (c) shall apply so as to affect the right or requirement of a creditor to commence separate proceedings under this section in relation to a cause of action which is separate from and independent of another ca use of action where the court is satisfied, having regard to paragraph (c), that both the circumstances out of which the cause of action arose and the subject matter of that cause of action are wholly unrelated to those of the other cause of action.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (9) T he provisions of this section shall apply to all civil actions and proceedings brought in the Court in which fraud, deceit, unconscionable conduct or any other inequitable conduct however described or any species of unjust enrichment is alleged, against a n y person (whether a party to the proceedings or not) with regard to the settlement or establishment of an international trust or the disposition of property to such a trust, or receipt of property by or for such a trust (or subsequent disposition of prope r ty from such a trust with the intention of prejudicing creditors of the settlor of such property or such trust), and the remedy conferred by subsection (1) shall be the sole remedy available in such an action or proceedings, to the exclusion of any other relief or remedy against any party to the relevant action or proceeding. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (10) The provisions of this section shall operate to the exclusion of any other remedy, principle or rule of law, whether provided for by statute, or founded in equity or in common la w including, for the avoidance of doubt, the imposition of a constructive trust upon any }{\fs24\lang2057\langfe1033\langnp2057\insrsid3694504 interested party or the recogni}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 tion and enforcement of any constructive trust imposed or recognised by the laws of any other jurisdiction. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (11) Subject to the section 16(6), the provisions of this section shall apply to every international trust and to every trust which having been registered as an international trust, is no longer so registered, and in respect of all dispositions to such a trust. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (12) For the purposes of this section the term }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 " }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 means a creditor of the settlor and includes any person who alleges a }{\fs24\lang2057\langfe1033\langnp2057\insrsid3694504 cause of action against a settlor}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 . \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (13) A creditor seeking to enforce a claim under this section in reliance on a foreign }{ \fs24\lang2057\langfe1033\langnp2057\insrsid11104299 judgment}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 may not enforce such claim until such time as it can demonstrate to the reasonable satisfaction of the court that: \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid14171165 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (a) it has exhausted all remedies available to it against the settlor}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s remaining property, and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid14171165 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (b) all rights of appeal against that foreign }{ \fs24\lang2057\langfe1033\langnp2057\insrsid11104299 judgment}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 have been exhausted. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (14) For the purposes of assessing the liability of an international trust to a creditor under this section, where the amount of that creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s claim against the settlor is, wholly or partly, in any way related to or evidenced by a foreign }{\fs24\lang2057\langfe1033\langnp2057\insrsid11104299 judgment}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 , the Court in making any award in favour of that creditor shall disregard and exclude any amount awarded in that foreign }{\fs24\lang2057\langfe1033\langnp2057\insrsid11104299 judgment}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 to that creditor which comprise any form of exemplary, vindictive, retributory or punitive damage s (by whatever name), or is an amount of damages arrived at by doubling, trebling or otherwise multipl}{\fs24\lang2057\langfe1033\langnp2057\insrsid4357449 ying a sum assessed as compensa}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 tion for the loss or damage (which types of damage are in this section together called }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 punitive damages}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 ). \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (15) The burden of proof shall be on a creditor to establish that an amount awarded in a foreign }{ \fs24\lang2057\langfe1033\langnp2057\insrsid11104299 judgment}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 does not wholly or partly comprise punitive damages.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4357449 {\fs24\lang2057\langfe1033\langnp2057\insrsid4357449\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4357449 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (16) Subsection (14) shall not apply }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid5836712 if}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 , at th}{\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 e time of settlement, establish}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 ment, or disposition, as the case may be, an award of punitive damages has already been made in a foreign }{\fs24\lang2057\langfe1033\langnp2057\insrsid11104299 judgment}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 against a settlor.}{\fs24\lang2057\langfe1033\langnp2057\insrsid11616488 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4357449 {\fs24\lang2057\langfe1033\langnp2057\insrsid4357449 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4357449 {\fs24\lang2057\langfe1033\langnp2057\insrsid4357449 \'85 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4357449 {\fs24\lang2057\langfe1033\langnp2057\insrsid4357449\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11498312 13K. Commencement of p}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid4357449 roceedings}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1668911 {\fs24\lang2057\langfe1033\langnp2057\insrsid1668911\charrsid4357449 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid4357449 (1) No action or proceedings whether pursuant to this Act or at common law or in equity to- \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid4357449 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid11801898 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid4357449 (a) set aside the settlemen}{\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid4357449 t of an international trust; or}{\fs24\lang2057\langfe1033\langnp2057\insrsid11616488 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11342542 {\fs24\lang2057\langfe1033\langnp2057\insrsid11342542\charrsid4357449 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid11801898 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid4357449 (b) set aside any disposition}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid4357449 to any international trust; or}{\fs24\lang2057\langfe1033\langnp2057\insrsid11616488 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11342542 {\fs24\lang2057\langfe1033\langnp2057\insrsid11342542\charrsid4357449 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid11801898 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid4357449 (bb) seek relief or remedy under section 13B,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 shall be commenced, unless such action or proceedings is commenced,-}{ \fs24\lang2057\langfe1033\langnp2057\insrsid1718267 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1718267 {\fs24\lang2057\langfe1033\langnp2057\insrsid1718267 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid13566191 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (c) in the High Court of the Cook Islands; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid13566191 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (d) before the expiratio}{\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 n of 2 years from the date of,}{\fs24\lang2057\langfe1033\langnp2057\insrsid10164021 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid11616488 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11342542 {\fs24\lang2057\langfe1033\langnp2057\insrsid11342542\charrsid337216 \par }\pard \ql \li2160\ri0\widctlpar\faauto\adjustright\rin0\lin2160\itap0\pararsid11287502 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (i) the settlement}{\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 of the international trust; or}{\fs24\lang2057\langfe1033\langnp2057\insrsid11616488 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11342542 {\fs24\lang2057\langfe1033\langnp2057\insrsid11342542\charrsid337216 \par }\pard \ql \li2160\ri0\widctlpar\faauto\adjustright\rin0\lin2160\itap0\pararsid11287502 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (ii) the disposit}{\fs24\lang2057\langfe1033\langnp2057\insrsid11616488\charrsid337216 ion to the international trust,}{\fs24\lang2057\langfe1033\langnp2057\insrsid11616488 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11342542 {\fs24\lang2057\langfe1033\langnp2057\insrsid11342542\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 as the case may be.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2701714 {\fs24\lang2057\langfe1033\langnp2057\insrsid2701714 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11616488 {\fs24\lang2057\langfe1033\langnp2057\insrsid2701714 \'85}{\fs24\lang2057\langfe1033\langnp2057\insrsid2701714\charrsid337216 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 23. Privacy \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (1) Except where the provisions of this Act require, and subject to this section, it shall be an offence under this Act for a person to divulge or communicate to any other person information relating to the establishment, constitution, business undertaking or affairs of an international trust. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (2) All judicial proceedings, other than criminal proceedings relating to an international t rust shall, unless ordered otherwise be heard in camera and no details of the proceedings shall be published by any person except in accordance with subsection (3). \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (3) Every decision of the Court in respect of any proceedings concerning the application o r interpretation of this Act shall be published or reported for the purposes of affording a record of those proceedings, provided that in every case- \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid2518514 {\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 (a) }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 the written decision of the Court shall be edited to such extent as shall be necessary to preserve secrecy in respect of the identity of the trust of every interested party and of the subject matter of the proceedings; and \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12061029 {\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid2518514 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (b) no such decision shall be reported or published unless or until a judge of the Court shall have ascertained the views of the part ies to the proceedings as to the adequacy of any editing undertaken, and certified in writing to the Registrar of the Court that the decision as edited may be released for publication or reporting. \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (4) Unless excluded by the terms of a trust instrument, a trustee or an officer or employee of a trustee or trustee company may divulge or make available information relating to the establishment, constitution, business undertakings or affairs of an international trust}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid7674185 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7433203 {\fs24\lang2057\langfe1033\langnp2057\insrsid7433203\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid7433203 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (a) to any person or class of persons as that trustee, officer or employee considers necessary from time to time, in its complete discretion, for carrying out the management and administration of the trust assets in the ordinary course of business; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid7433203 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (b) to a legal practitioner-}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2701714 {\fs24\lang2057\langfe1033\langnp2057\insrsid2701714\charrsid337216 \par }\pard \ql \li2160\ri0\widctlpar\faauto\adjustright\rin0\lin2160\itap0\pararsid7433203 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (i) for the purpose of obtaining legal advice relating to establishment, constitution, business undertakings or af}{\fs24\lang2057\langfe1033\langnp2057\insrsid2701714 fairs of an international trust;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }\pard \ql \li2160\ri0\widctlpar\faauto\adjustright\rin0\lin2160\itap0\pararsid7433203 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (ii) for the purpose of prosecuting or defending any litigation relating to the establishment, constitution, business undertakings or affairs of an international trust.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2701714 {\fs24\lang2057\langfe1033\langnp2057\insrsid2701714 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid7433203 {\fs24\lang2057\langfe1033\langnp2057\insrsid2701714 \'85}{\fs24\lang2057\langfe1033\langnp2057\insrsid2701714\charrsid337216 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 28. Penalties \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (1) Any person who: \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid4416605 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (a) does anything which is forbidden by or under this Act; or \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid4416605 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (b) omits to do something required or directed by or fails to comply with any provisions of this Act }{\fs24\lang2057\langfe1033\langnp2057\insrsid9136126 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid10643441 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid10643441 {\fs24\lang2057\langfe1033\langnp2057\insrsid10643441 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10643441 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 shall be guilty of an offence against this Act and shall be liable}{ \fs24\lang2057\langfe1033\langnp2057\insrsid14382760 on conviction}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 }{\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 to}{ \fs24\lang2057\langfe1033\langnp2057\insrsid1849056 a fine not exceeding US$10,000.}{\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 00 or to imprisonment for a term not exceeding 1 year or to both.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7674185 {\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid8216208 Submissions for Defendants in Opposition}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [15] }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 For the first defendants Mr Grant began his submissions b}{\fs24\lang2057\langfe1033\langnp2057\insrsid2898724 y outlining the structure of th}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 e Cook Islands tax haven and the legislation which supports it, including the International Trusts Act, by reference to the Report of the New Zealand Wine Box Inquiry. He referred to the recent OECD Project on Harmful Tax Practices, a concerted international }{\fs24\lang2057\langfe1033\langnp2057\insrsid6438018 campaign underway at present }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 to reform various aspects of tax havens throughout the world. He noted that the Cook Islands was one of the countries which had not at t he time of the OECD 2001 Progress Report, made a political commitment to eliminate those elements of the tax haven which were thought by the OECD to be inappropriate. He sought to have the court infer that the non-compliance to date by the Cook Islands go v ernment indicated that it was intending to enforce in their full rigour the existing provisions of its tax haven legislation including s 23(1). Whatever weight might have been due to this submission has been eliminated by the recent announcement that the OECD is removing the Cook Islands from its }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 blacklist}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 following pledges of co-operation from its government (see }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid1463129 New Zealand Herald}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 , 2 April 2002}{\fs24\lang2057\langfe1033\langnp2057\insrsid1463129 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 p C3). \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 [16]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 As to the precise question for decisio}{\fs24\lang2057\langfe1033\langnp2057\insrsid10710188 n, Mr Grant submitted that the p}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 lain words of s 23(1) prevented the court from making orders for discovery in so far as the documents sought related to the establishment, constitution, business undertaking or affairs of an international trust. He stressed that it was an offence to divul ge such information }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 except where the provisions of this Act require}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 . As to that, he submitted that the phrase necessitated an explicit provision in the International Trusts Act referring to and authorising a person to divulge or communicate the identified information. He pointed out that there was no such specific provision. He contended that the court should not be astute to carve out exceptions to the basic rule about secrecy and privacy because case by case ad hoc exceptions would be inconsistent with a regime where unauthorised disclosure was a criminal offence. In such circumstances all parties should know in advance what was the position about disclosure and must know where they stood because of the dangers of breaching the criminal law if they made a wrong decision. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid7674185\charrsid337216 [17]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 He also suggested that if exceptions to the general rule of privacy were allowed in the case of discovery in civil proceedings }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 one would be able to drive a lorry}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid160374 through the secrecy }{\fs24\lang2057\langfe1033\langnp2057\insrsid160374\charrsid337216 provisions of the statute by }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 simply making tenuous allegations of fraud and then see}{\fs24\lang2057\langfe1033\langnp2057\insrsid6621045 king the disclosure}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 of information relating to the trust on discovery. Any exceptions needed to be spelt out by the legislature and not by the courts, if the court was deprived of relevant information so as to make it difficult to adjudicate, then that too was a matter that should be addressed by the legislature and not by the court. \par \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid3826410 [}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid3826410 18]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid3826410 Mr Grant relied upon }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid9322529 Re}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid3826410 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid3826410 Galileo Group Ltd, Elles v Hambros Bank Ltd (Bank of Engla}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid6763559 nd intervening) [1999] Ch 100, [}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid3826410 1998}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid6763559 ]}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8397167 1}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid3826410 All ER 545}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid3826410 . That case involved s 82 of the Banking Act 1987 (UK) which makes it a criminal offence for a person who, under or for the purposes of the Act, has received information relating to the business or other affairs of any person to disclose t hat information without the consent of the person from whom it was received. The court does not find the case of any assistance since the prohibition on disclosure in that case was absolute except in cases where the person from whom t}{ \fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid3826410 he information was received con}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid3826410 sented to its disclosure.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [19]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Mr Akel for the trust company made similar submissions. He accepted that under s 3 of the Internati onal Trusts Act the rules of civil procedure of the High Court Code of Civil Procedure and the Judicature Act would apply to international trusts but that they had been modified by s 23. He further submitted that the exception in s 23(4) showed the carefu l ly circumscribed limits to the general rule of privacy and secrecy. Parliament had thus carefully drawn the lines for any exception relating to civil proceedings and the court should not go further. As to the true interpretation of s 23(4), he conceded th a t on the strict construction for which he contended, only the trustee and its lawyer could use the otherwise protected material in the course of defending any litigation. He acknowledged that this would necessarily result in a situation where relevant evi dence relating to the establishment of the trust etc, could only be produced by one side in civil proceedings such as the present. If that side elected not to produce the }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid6977235 information}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 it would be impossible for the court to have access to it for the purposes of making its decision. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Submissions for the Plaintiff in Reply \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid9136126 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Section 23 generally \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [20] }{\fs24\lang2057\langfe1033\langnp2057\insrsid1837383 Mr}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Fardell for the plaintiff began by suggesting that s 23 requ}{\fs24\lang2057\langfe1033\langnp2057\insrsid3826410 ired a careful analysis and was}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 not as limited as the defendants suggested. Section 23(4) was relied upon as authorising discovery in this case. }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid478354 Section}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 23 essentially fell into three }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid8153055 parts}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 , which had points in common but which also had significant points of difference. The first part was contained in sub-s (1) and comprised a general restriction on the divulging of information relating to the establishmen}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3826410 t, constitution, business under}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 takings or affairs of an international trust. But importantly, this gene}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7477297 ral proscription}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 was expressly subject to other provisions of the Act and, in particular, s 23(4). T he second part contained in s 23(2) and (3) provided for a presumptive position that proceedings relating to an international trust shall be heard in camera and every decision of the court should be edited so as to provide for secrecy in relation to the i d entity of the trust, of every interested party and of the subject matter of the proceeding. But even then, in the case of the former, the court could order the proceedings to be heard in public and in the case of the latter, the court could require its de cision, suitably edited, to be released for publication or reporting. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid5469546 Consequently}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 , although there was a premium on secrecy/privacy in}{ \fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 rela}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 tion to the conduct and reporting of proceedings, there were importan}{ \fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 t}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 limits, no doubt in recognition that the justi ce of the case and the inevitable public interest factors would need to be determined on a case by case basis. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 [21]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 He also drew attention to the significant fact that s 23(2) provided for a comprehensive exception to the secrecy/privacy provisions in the case of criminal proceedings. He accepted that al}{ \fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 though civil proceedings involv}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 ing an allegation of fraud did not fall within the broad exception of s 23(2), the scheme of s 23 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 recognized}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 that the court should have the necessary discretion to create an exception to the presumptive rule where the allegations were criminal or quasi-criminal in nature, as otherwise the International Trusts Act would itself b}{ \fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 ecome an instrument of impropri}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 ety. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Section 23(4) \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 [22]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Subsection (4) was the third part of s 23 and the one most directly relevant in this case. It was in two parts. First, s 23(4)(a) involved a broad discretion ves ted in a trustee, officer or employee of a trustee or trustee company to release information (and without restriction if necessary) to anyone, for carrying out the management and administration of the trust assets in the ordinary course of business. Secon d, s 23(4)(b) was an enabling power to disclose to a legal practitioner (but not necessarily }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid13830219 the}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 legal adviser of the trustee) for the purpose of prosecuting or defending any litigation relating to the establishment or affairs of an international trust. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 [23]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 He submitted that both limbs applied to this case and justified the orders sought. In respect of s 23(4)(a), the qualification of }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 carrying out the management and administration of the trust assets in the ordinary course of business}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 embraced the defenc e of proceedings relating to the ongoing undertaking of the trust}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s affairs. Given that a central purpose of the International Trusts Act was to establish international trusts which hold assets and administer property which will often be derived from forei gn jurisdictions, it was inevitable that in the ordinary course of running the business of such an international trust, the trustee would need to deal with litigation about the management and administration of the trust}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s affairs. The phrase, }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 ordinary course of business}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 was wide in its import and included everything from the day to day management, taking steps to preserve the assets and wealth of the trust (which included defending litigation that poses a challenge to that) to the more mundane things, suc h as paying bills, preparing accounts and attending to regulatory filings. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 [24]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 The short point was said to be that a trustee encounters litigation of the present type only because of its func}{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 tion of carrying out the manage}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 ment and administration of the trust}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s business in the ordinary course. This was the very raison d}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid12282181 \'ea}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 tre for joining the trust companies as}{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 defendants. They were in control of the trust assets, which the plaintiff alleged they had received pursuant to a fraudulent conveyance. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 [25]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 The present proceeding was seekin}{\fs24\lang2057\langfe1033\langnp2057\insrsid11952665 g to impeach the very establish}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 ment of the trust, its business undertakings and affairs, in the sense that it was alleged that the sole purpose of the trust was to put beyond reach assets that would otherwise answer the unsatisfi ed judgment of the Circuit Court. The plaintiff and more importantly the court, needed to know all of the circumstances affecting the transfer and receipt of the trust assets and the way in which those assets have been continually managed and administered for the purposes of determining the current proceeding. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 [26]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 There was little doubt that the trustee was empowered to disclose under s 23(4)(a) to the first defendants and their advisers documentation relating to the management and administration of the trust assets for }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid5971258 the}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 purposes of this proceeding. Such disclosure would be in the ordinary course of the trust}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s business and was not different in principle to disclosure for statutory/regulatory compliance purposes}{ \fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 . Similarly, if the trustee was }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 acting bona fide or reasonabl y, it would disclose to the other parties in the litigation and to the court relevant documents that related to the management and administration of the trust assets for the purposes of the current proceeding. In summary, s 23(4)(a) authorised discovery o f the type sought by the plaintiff. At the very least, the first-named second defendant should be required to advise the court whether it had made any disclosure in relation to the establish}{ \fs24\lang2057\langfe1033\langnp2057\insrsid10097284\charrsid337216 ment, management and administra}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 tion of the trust assets in the cont ext of this proceeding to the first defendants and, if so, whether it intended to discriminate against the plaintiff in relation to the same disclosure and if so, the reasons for that. In the absence of a genuine, bona fide reason for distinguishing betwe e n the two sides in this litigation (it was hard to see any, given the allegation of fraudulent conveyance and the wish no doubt of the trustees to be seen to be acting neutrally and objectively in that context) the trustees and their employees were accoun table under this provision and could be required to make appropriate discovery. This was said to be entirely consistent with the principles enunciated in }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid11952665 Controller and Auditor-General v Davison [1996] 2 NZLR 278 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid11952665 at 287}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 -288 where the Court of Appeal discuss ed in depth the public policy issues that arise when secrecy provisions of Cook Islands legislation were invoked to assist in the perpetuation of a scheme in the nature of fraudulent evasion. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6449391\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6449391\charrsid12401527 [27]}{\fs24\lang2057\langfe1033\langnp2057\insrsid12401527 Passing to s 23(4)(b), sub-cl}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12401527 (iii) was expressly directed towards disclosure for the purpose of prosecuting or defending any litigation and again related to the establishment, constitution, business undertakings or affairs of the trust. In other words, disclosure under this limb was for all purposes associated with the trust, both in re}{\fs24\lang2057\langfe1033\langnp2057\insrsid337216\charrsid12401527 lation to its initial establish}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12401527 ment and its subsequent management and administration. Disclosure was limited under this subclause to a legal practitioner, but the use of the indefinite article }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12401527 a}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12401527 showed that it was not just the le gal adviser of the trust, but any legal adviser involved in the proceeding for any party that could and should be the recipient of disclosure. (The court does not agree}{\fs24\lang2057\langfe1033\langnp2057\insrsid6449391\charrsid12401527 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12401527 with this latter interpretation although in the circumstances it is not a material factor.) }{\fs24\lang2057\langfe1033\langnp2057\insrsid14306795 Mr}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12401527 Fardell submitted that a}{\fs24\lang2057\langfe1033\langnp2057\insrsid8147093 significant aspect of sub-cl}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12401527 (b) was that a trustee did not have the same ample discretion as arose under sub}{\fs24\lang2057\langfe1033\langnp2057\insrsid5051983 -cl (a). Although the opening wo}{\fs24\lang2057\langfe1033\langnp2057\insrsid8216986 rds of sub-s (4) included re}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12401527 ference to }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12401527 may divulge or make available}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12401527 , this was an enabling power, rather than conferring a broad discretion. This must be so, as otherwise the reference in sub-cl (a) to }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12401527 considers necessary from time to time in its comple}{\fs24\lang2057\langfe1033\langnp2057\insrsid8611297 te discretion}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8611297 , would be otiose.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12401527 In summary, in the context of litigat ion, Mr Fardell contended that there was a virtual mandate on the trustee, as officers and employees to disclose to legal advisors all relevant documents in the context of litigation.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6449391\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6449391\charrsid337216 [28]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8611297 By way of overall summary}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 it was submitted that disclosure under s 23(4) was permitted. If the trustees, their officers and employers were acting bona fide and reasonably, they would disclose in this case under sub-cl (a) and would not differentiate for this purpose between the plaintiff and the first defendants. It wou l d be an improper exercise of the discretion under this clause to refuse disclosure, when the allegation was one of fraudulent conveyance and there were overriding public policy issues to ensure that the trustees did not assist in a fraudulent and iniquito us exercise. Disclosure under this head would extend to the plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid1143956 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s employees and not just its legal advisers. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6449391\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Decision \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6449391\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6449391\charrsid5188103 [29]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid5188103 The court does not find it necessary to rule on Mr Fardell}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid5188103 s submission that s 23(4) empowers the making of orders for specifi c discovery of the disputed documents in this case. Its tentative view is that s 23(4) is directed to a different topic name}{\fs24\lang2057\langfe1033\langnp2057\insrsid6310212 ly the need to protect trustees }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid5188103 from potential criminal liability under s 28 in respect of discl}{\fs24\lang2057\langfe1033\langnp2057\insrsid16391646\charrsid5188103 osure in the course of routine tr}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid5188103 ust adminis}{\fs24\lang2057\langfe1033\langnp2057\insrsid16391646\charrsid5188103 tration}{\fs24\lang2057\langfe1033\langnp2057\insrsid6449391\charrsid5188103 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid5188103 or in the course of obtaining legal}{\fs24\lang2057\langfe1033\langnp2057\insrsid16391646\charrsid5188103 advice.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid5188103 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16391646\charrsid5188103 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16391646\charrsid5188103 [30]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid5188103 The crux of the case is the interpretation and application of the proviso found}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 in the opening words of s 23(1). As to that it is imp}{\fs24\lang2057\langfe1033\langnp2057\insrsid8600492 ortant to note that the p}{\fs24\lang2057\langfe1033\langnp2057\insrsid7215481 hrase is}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 except where the provisions of this Act require}{ \fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 not }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 provide}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 . This strongly supports the view that it is implicit that if something has to be done to make the statute work, it is permissible to allow it. There is no need for an explicit requirement in the Act. As to what is i mplicitly required, the court considers that the approach should be }{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 to work out a practical interpretation appearing to accord best with the general intention of Parliament as embodied in the Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (per }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid6501031 Cooke P}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid7215481 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid6501031 in}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid7215481 Northland Milk Vendors Assoc Inc v Northern Milk }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid1847509 Ltd }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid12537706 [1988] 1 NZLR 530).}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16391646\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16391646\charrsid337216 [31]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 The provisions which require discovery in the present case are those in s 13 which provide an important limited protection to creditors in respect of the otherwis e impregnable asset protection provisions of the International Trusts Act and related legislati}{\fs24\lang2057\langfe1033\langnp2057\insrsid6501031 on. The purposes of s 13 are}{\fs24\lang2057\langfe1033\langnp2057\insrsid16391646\charrsid337216 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 of central importance. As the Court of Appeal said in }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid793327 515}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid6501031 South Orange Grove Owners Assoc v The Orange Grove Partners}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (6 November 1995, unreported) at p 24, 26, 27: \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16391646\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13905393 {\fs24\lang2057\langfe1033\langnp2057\insrsid424304\charrsid10231507 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid10231507 The purpose of the Act may be said to be to provide a haven which protects funds deposited with trust companies to the exclusion of the rights of creditors. On another view, the purpose of the Act may be said to protect f unds against actions by creditors but only after giving those creditors a chance of recovery within a certain time limit ...}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304\charrsid10231507 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13905393 {\fs24\lang2057\langfe1033\langnp2057\insrsid13905393\charrsid337216 \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [32]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 The court went on to find, having examined the legislative history, that Parliament intended to maintain high quality services and the integrity of the offshore banking and trust industry. The court said it would be-}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3022623\charrsid337216 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid337216\charrsid337216 \par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid337216 {\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid337216\charrsid337216 ...}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9136126 loath}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 to interpret the International Trusts Act as a statute which was intended to give succour to cheats and fraudsters by totally ex cluding the legitimate aims of overseas creditors ... We cannot think that Parliament ever intended that by passing the International Trusts Act the Cook Island should become an Alsatia in the South Pacific from which the commercial comity of nations was completed ousted}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 . \par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8607365 {\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid1315201 [33]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid1315201 Against that background and those statements the answer in this case becomes straight}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 forward, the Cook Islands legislature wished to ensure that no illicit or illegal dealings took place under cover of the International Trusts Act. Hence it enacte}{ \fs24\lang2057\langfe1033\langnp2057\insrsid1315201 d the fraud provisions of s 13B}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 (1). It is inconceivable that s 23 was intended to emasculate the power of the court to render a fair and just decision in proceedings brought }{\fs24\lang2057\langfe1033\langnp2057\insrsid13526152 under the fraud provisions of s}{ \fs24\lang2057\langfe1033\langnp2057\insrsid10641586 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 13}{\fs24\lang2057\langfe1033\langnp2057\insrsid1315201 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Section 13 would be rendered us eless if there could never be in s 13 cases full and proper discovery, especially bearing in mind that the creditor carries the unusually heavy onus of proving beyond reasonable doubt that there was either an intent to defraud or that }{ \fs24\lang2057\langfe1033\langnp2057\insrsid337216\charrsid337216 the settlement rendered the settl}{\fs24\lang2057\langfe1033\langnp2057\insrsid1315201 or}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 insolvent or without property by which the creditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid424304 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 s claim, if successful, could be satisfied. In s 13B cases the question of disclosure of the information is adequately protected by the requirement in most cases to hold the hearing in priv ate and the various provisions about the non-publication of unedited judgments of the court. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid337216\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [34]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 For all of these reasons the court rules that the true construction of s 23 is that it does not prohibit appropriate orders for discovery involving documents concerning the establishment }{\fs24\lang2057\langfe1033\langnp2057\insrsid13526152 of a trust if those must reason}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 ably be revealed in order to ensure the fair and proper determina}{\fs24\lang2057\langfe1033\langnp2057\insrsid13526152 tion of a cause of action under s}{ \fs24\lang2057\langfe1033\langnp2057\insrsid4985786 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 13. In that sense the Act itself and a proper fulfilment of s}{\fs24\lang2057\langfe1033\langnp2057\insrsid1402770 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 13 require an exception to be made for discovery purposes in s 13 proceedings. There was no dispute that the documents in question were discoverable based on the traditional tests as to relevance and discoverability. It is reasonable that they be discover ed. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid337216\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Result \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid337216\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid337216\charrsid337216 [35}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 For all of the foregoing reasons the court rules that s 23(1) does not deprive the court of the jurisdiction to make the orders for specific}{\fs24\lang2057\langfe1033\langnp2057\insrsid337216\charrsid337216 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 discovery sought in this case. Such orders are required to make the provisions of s 13B work. Accordingly the application is granted subject t}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13526152 o}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 the various conditions and reservat}{\fs24\lang2057\langfe1033\langnp2057\insrsid337216\charrsid337216 ions recorded in the minute of }{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 the}{\fs24\lang2057\langfe1033\langnp2057\insrsid337216\charrsid337216 court dated 20 March }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 2002. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid337216\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Costs \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid337216\charrsid337216 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 [36]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 The plaintiff is entitled to a modest order for costs. If costs cannot be }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2054572 agreed by the parties then the p}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 laintiff must file submissions in support of an application for costs within 28 days from the date of this judgment. My tentative view is that costs of $1,500 for the plaintiff (in total) might be }{\fs24\lang2057\langfe1033\langnp2057\insrsid15340390 appropriate,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 to be paid in equal shares by the defendants but of course I shall give the matter full consideration if called upon to do so. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid337216\charrsid337216 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid337216 Application granted.}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8607365\charrsid14769362 \par }}