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{\title IN THE HIGH COURT OF THE COOK ISLANDS}{\author maasi_o}{\operator maltungtung_l}{\creatim\yr2007\mo10\dy2\hr15\min42}{\revtim\yr2008\mo3\dy11\hr9\min57}{\version477}{\edmins943}{\nofpages17}{\nofwords7465}{\nofchars42557}{\nofcharsws49923}
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\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid15479136 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {
\b\fs24\lang2057\langfe1033\langnp2057\insrsid15479136\charrsid13444835 IN THE HIGH COURT OF THE COOK ISLANDS}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15479136\charrsid13444835 HELD AT AUCKLAND}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid15479136\charrsid13444835 
\par }\pard \qc \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid15479136 {\fs24\lang2057\langfe1033\langnp2057\insrsid15479136\charrsid13444835 OA}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  5/04
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid15479136\charrsid13444835 
\par }\pard \qc \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid15479136 {\fs24\lang2057\langfe1033\langnp2057\insrsid15479136\charrsid13444835 B}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ETWEEN}{
\fs24\lang2057\langfe1033\langnp2057\insrsid15479136\charrsid13444835 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid15479136\charrsid13444835 
\par }\pard \qc \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid15479136 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid15479136\charrsid13444835 T}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
AAKOKA ISLAND VILLAS LTD
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 A}{\fs24\lang2057\langfe1033\langnp2057\insrsid15479136\charrsid13444835 pp}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 licant
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid7998795 {\fs24\lang2057\langfe1033\langnp2057\insrsid15479136\charrsid13444835 
\par }\pard \qc \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid15479136 {\fs24\lang2057\langfe1033\langnp2057\insrsid15479136\charrsid13444835 AND
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid7998795 {\fs24\lang2057\langfe1033\langnp2057\insrsid15479136\charrsid13444835 
\par }\pard \qc \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid15479136 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 RUTA TEREORA TUPANGAIA & ORS
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12527589\charrsid13444835 Respondent}{\fs24\lang2057\langfe1033\langnp2057\insrsid9731085\charrsid13444835 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid12527589\charrsid13444835 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid15479136\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 Hearing:}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  14, 15, 16 and 17 November 2005 and
\par 20 December 2005 (all at Auckland, New Zealand)
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7998795\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 Counsel: }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Mr B Morley and M}{\fs24\lang2057\langfe1033\langnp2057\insrsid7998795\charrsid13444835 s}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  K H}{\fs24\lang2057\langfe1033\langnp2057\insrsid7998795\charrsid13444835 ar}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 vey for the}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7998795\charrsid13444835  Applicant
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Mr P David and Mr D O}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Co}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7240625\charrsid13444835 nn}{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 or for the Respondent,
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 R T Tupangaia
\par (No steps taken by other respondents)
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7240625\charrsid13444835 
\par Judgment:}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  3 February 2006 (New Zealand time)
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7240625\charrsid13444835 
\par }\pard \qc \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid7240625 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 JUD}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
GMENT OF NICHOLSON J
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Introduction
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11219146\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [1}{\fs24\lang2057\langfe1033\langnp2057\insrsid11013743\charrsid13444835 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 On 2 December 1988, the four owners of nearly 1.7 hectares of lagoon side land at Muri, Rarotonga (the land) gave a 60 year lease of that land to Taakoka Island Villas Limited (Taakoka). It was intended that th
e land be used for a tourist resort. Taakoka built two tourist villas on the la}{\fs24\lang2057\langfe1033\langnp2057\insrsid5928081\charrsid13444835 n}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 d.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12922380\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [2}{\fs24\lang2057\langfe1033\langnp2057\insrsid12922380\charrsid13444835 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 By notice dated 22 December 2003, Ruta Tupangaia (Mrs Tupangaia), owner of a half share of the land, purported to forfeit Taakoka}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s interest in the land. The stated ground of forfeiture was rent was in arrears. Mr}{\fs24\lang2057\langfe1033\langnp2057\insrsid11430057\charrsid13444835 s}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Tupangaia thereupon claimed a}{\fs24\lang2057\langfe1033\langnp2057\insrsid12922380\charrsid13444835 nd took possession of the land.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12922380\charrsid13444835 [3] On 4 March 2004, Taakoka applied for relief against }{\fs24\lang2057\langfe1033\langnp2057\insrsid5520102\charrsid13444835 forfeiture.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid12922380\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid1707708\charrsid13444835 T}{\fs24\lang2057\langfe1033\langnp2057\insrsid12922380\charrsid13444835 hat }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 application was heard in Auckland in November and December 2005. Judgment was reserved.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12922380\charrsid13444835 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Hearing
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12922380\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [4] }{\fs24\lang2057\langfe1033\langnp2057\insrsid397464\charrsid13444835 O}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
n 23 December 2004, Williams J, as he then was, ordered that the substantive hearing of the application for relief against forfeiture be heard in Auckland, New Zeala
nd. A fixture was made for the hearing to start on Monday, 5 September 2005. However, on 2 September 2005}{\fs24\lang2057\langfe1033\langnp2057\insrsid15825218\charrsid13444835 , I}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 heard an opposed application by Mr P David, who had been recently instructed by Mrs Tupangaia, for an adjournment. I adjourned the hearing to start Monday, 14 November 2005. When the hearing started on 14 November 2005, 23 affidavits had been f}{
\fs24\lang2057\langfe1033\langnp2057\insrsid15825218\charrsid13444835 iled}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  and served. After his opening, Mr Morley, senior co}{
\fs24\lang2057\langfe1033\langnp2057\insrsid15825218\charrsid13444835 unsel }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 for Taakoka, called Roger Lyon (Mr Lyon), Keith Clark (Mr Clark), and Darryl Harvey (Mr Harvey) f
or requested cross-examination. With}{\fs24\lang2057\langfe1033\langnp2057\insrsid14036319\charrsid13444835  leave, he called Marshall Cook}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 (Mr Cook) to give evidence on matters raised in cross-examination.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid397464\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [5] After his opening, Mr David, senior counsel for Mrs T}{\fs24\lang2057\langfe1033\langnp2057\insrsid2192193\charrsid13444835 upangaia, called Malcolm Taylor}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  (Mr Taylor) and Mrs Tupangaia for requested cross-examination.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid397464\charrsid13444835 
\par [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
6] When cross-examination finished late on Thursday afternoon, 17 November, both counsel said they wished to make oral final submissions. The hearing was therefore adjourned part-heard until Tuesday, 20 December 2005, when
 after hearing final submissions, I reserved judgment.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12716392\charrsid13444835 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Submissions
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12716392\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [7}{\fs24\lang2057\langfe1033\langnp2057\insrsid12716392\charrsid13444835 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Mr Morley}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s fundamental submission was that the only rent outstanding at the time of the}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3685089\charrsid13444835  purported notice of forfeiture }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 was the base re}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3685089\charrsid13444835 nt of $7,500 and that as evidence}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 d by }{\fs24\lang2057\langfe1033\langnp2057\insrsid3685089\charrsid13444835 Mr P}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ostle}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s letter of }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3685089\charrsid13444835 2}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 December 2003 Taakoka was able to pay that and wanted to pay that and was simply waiting for a response from Mrs Tupangaia}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s solicitor as to how the payment should be made. He submitted that }{\fs24\lang2057\langfe1033\langnp2057\insrsid4750931\charrsid13444835 Taakoka was at all relevant tim}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 es, and remains, ready, willing and able to pay outstanding rent and revenue payments. He accordingly submitted that the application for relief against forfeiture should}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 be granted.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12716392\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid12716392\charrsid13444835 8]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Mr David accepted Mr Morley}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s submission about the applicable law re}{\fs24\lang2057\langfe1033\langnp2057\insrsid10247019\charrsid13444835 
lating to the exercise of }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 the }{\fs24\lang2057\langfe1033\langnp2057\insrsid10247019\charrsid13444835 discretion to grant }{
\fs24\lang2057\langfe1033\langnp2057\insrsid15756750\charrsid13444835 relief against forfeiture but submitted that in the }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
present case there were reasons which individually or in combination amounted to exceptional circumstances which warranted relief being declined. Mr David submitted that the reasons why relief should not be given were:
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10247019\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid210088 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [a}{\fs24\lang2057\langfe1033\langnp2057\insrsid10247019\charrsid13444835 ] }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 There is a history of prior non-payment and late payment of rent with a history of promises to perform which have not been fulfilled.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid210088 {\fs24\lang2057\langfe1033\langnp2057\insrsid10247019\charrsid13444835 [b] }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Taakok
a is insolvent (or, at the very best, of doubtful solvency). It is most unlikely to fulfil its re}{\fs24\lang2057\langfe1033\langnp2057\insrsid15756750\charrsid13444835 ntal}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 obligations under the lease in the future.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid210088\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid210088 {\fs24\lang2057\langfe1033\langnp2057\insrsid210088\charrsid13444835 [c] }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Taakoka}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s status means that i}{\fs24\lang2057\langfe1033\langnp2057\insrsid4737480\charrsid13444835 
t has no adequate funding in place }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 to carry out the development and meet its obligations under the lease, which is to build luxury villas as originally approved in 1987.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid210088\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid210088 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
[d] Taakoka has failed to undertake and complete the required motel development within a reasonable time.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid210088\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid210088 {\fs24\lang2057\langfe1033\langnp2057\insrsid210088\charrsid13444835 [e] }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
Taakoka is incapacitated. Its registration as a foreign enterprise has been revoked and it can no longer carry out its authorised business of developing the land. This situation reflects the current reality }{
\fs24\lang2057\langfe1033\langnp2057\insrsid10490084\charrsid13444835 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Taakoka will not be able to proceed. The status of its governance is, at best uncertain. The patte
rn of present failure to perform the obligations under the lease, express or implied, will continue. The}{\fs24\lang2057\langfe1033\langnp2057\insrsid210088\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid9180193\charrsid13444835 
lease which }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 was granted for the sole purpose of development will not}{\fs24\lang2057\langfe1033\langnp2057\insrsid210088\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 be perfo}{\fs24\lang2057\langfe1033\langnp2057\insrsid10490084\charrsid13444835 rmed.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid210088\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid210088 {\fs24\lang2057\langfe1033\langnp2057\insrsid210088\charrsid13444835 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid7697438 f] Taako}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ka}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
s board of directors as properly identified has not authorised the application for relief against forfeiture.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid210088\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15150466\charrsid13444835 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 9}{\fs24\lang2057\langfe1033\langnp2057\insrsid15150466\charrsid13444835 ]}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  In his final submissions Mr Morley took issue with Mr David}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s submissions about the reasons }{\fs24\lang2057\langfe1033\langnp2057\insrsid4346683\charrsid13444835 why relief should not be given a}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 nd made detailed submissions in}{\fs24\lang2057\langfe1033\langnp2057\insrsid2755439\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 response.

\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15150466\charrsid13444835 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Pertinent facts
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5645186\charrsid13444835 [10] From the evidence, }{\fs24\lang2057\langfe1033\langnp2057\insrsid14960136\charrsid13444835 much of which was irrelevant and some of which was }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 disputed, I find the following pertinent facts.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5645186\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid5645186\charrsid13444835 11}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
] In 1986 Mr Clark, an Auckland real estate agent and property development entrepreneur, engaged Tim de Roles, (Mr de Roles) architect, to locate land in the Coo}{\fs24\lang2057\langfe1033\langnp2057\insrsid14960136\charrsid13444835 k}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3099391\charrsid13444835 Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  that mi}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9045025\charrsid13444835 ght be suitable for development.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Mr de Roles located the land and information about its }{
\fs24\lang2057\langfe1033\langnp2057\insrsid5645186\charrsid13444835 o}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 wnership. Mr Clark met Mrs Tupangaia and her solicitor, Mr Taylor, along with another landowner, Teina Raki (Mr Ra
}{\fs24\lang2057\langfe1033\langnp2057\insrsid14960136\charrsid13444835 ki}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ), in Hastings, in August 1986, and discussed Mr d}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14960136\charrsid13444835 e}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Roles}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s development plans (the de Roles plans).
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid5645186\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5645186\charrsid13444835 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 12}{\fs24\lang2057\langfe1033\langnp2057\insrsid5645186\charrsid13444835 ]}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  By a written agreement dated 26 November 198}{\fs24\lang2057\langfe1033\langnp2057\insrsid3099391\charrsid13444835 6}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 , the four owners of the land agreed with Mr Taylor, as trustee for a company to be incorporated and Alexander Burrell (}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3099391\charrsid13444835 Mr Burrell), }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
as trustee for the proposed shareholders of that company, to lease the land for a term of 60 years. The owners were Mrs Tupangaia, who }{\fs24\lang2057\langfe1033\langnp2057\insrsid3099391\charrsid13444835 h}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ad a half-share, and her relatives, Mr Rakei, Te}{\fs24\lang2057\langfe1033\langnp2057\insrsid3099391\charrsid13444835 re Dean (Mr Dean), and Maui Ta P}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 u}{\fs24\lang2057\langfe1033\langnp2057\insrsid3099391\charrsid13444835 a}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  (Mr Ta }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3099391\charrsid13444835 P}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ua), each of whom had a one-sixth }{\fs24\lang2057\langfe1033\langnp2057\insrsid3099391\charrsid13444835 
share. The consideration was $NZ}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 333,333 and the owners were to have one-th}{\fs24\lang2057\langfe1033\langnp2057\insrsid3099391\charrsid13444835 ir}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 d of the total share capital of the company.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9378993\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [13] Mrs Tupangaia lived in Hastings}{\fs24\lang2057\langfe1033\langnp2057\insrsid6834409\charrsid13444835 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 Mr Taylor practised as a ba}{\fs24\lang2057\langfe1033\langnp2057\insrsid7360476\charrsid13444835 rr}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
ister and solicitor in Hastings and acted, and has continued to act, for Mrs Tupangaia. The}{\fs24\lang2057\langfe1033\langnp2057\insrsid9378993\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
agreement said that it was intended that the company would develop the land by constructing a tou}{\fs24\lang2057\langfe1033\langnp2057\insrsid7360476\charrsid13444835 rist}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 residential complex.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9378993\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6234925\charrsid13444835 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 14] On 3}{\fs24\lang2057\langfe1033\langnp2057\insrsid6234925\charrsid13444835 0}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  March 1988, Taakoka was incorporated. Its share capital was $1,000.00 divided into 1000 shares of $1 each. Mrs Tupangaia took 169 shares,}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9378993\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Mr Raki, Mr Dean and Mr}{\fs24\lang2057\langfe1033\langnp2057\insrsid7873671\charrsid13444835 
 Ta Pua each took 55 shares and}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  the balance of 666 shares were taken by Export A}{\fs24\lang2057\langfe1033\langnp2057\insrsid6234925\charrsid13444835 merica }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Limited, an investment company registered in New Zealand. The first directors of Taakoka were Mrs Tupangaia, Mr Taylor}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6234925\charrsid13444835 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Mr Clark, and Mr Burrell.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9378993\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [15] On 16 May 1988, T}{\fs24\lang2057\langfe1033\langnp2057\insrsid6234925\charrsid13444835 a}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
akoka was registered as a foreign enterprise in the Cook Islands by the Cook Islands Monetary Board.
\par 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14687540\charrsid13444835 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 16}{\fs24\lang2057\langfe1033\langnp2057\insrsid14687540\charrsid13444835 ]}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  By deed of lease dated 2 December 19}{\fs24\lang2057\langfe1033\langnp2057\insrsid1857562\charrsid13444835 8}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
8 (the lease), the four owners leased the land subject to High Court confirmation and Lease Committee approval to Taakoka for 60 years from 1 September 1988, at an annual rental f}{\fs24\lang2057\langfe1033\langnp2057\insrsid1857562\charrsid13444835 o}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 r the first five years of $5000 and thereafter as agreed or otherwise fixed by arbitration (the base }{\fs24\lang2057\langfe1033\langnp2057\insrsid1857562\charrsid13444835 
rent).The base rent }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 was to }{\fs24\lang2057\langfe1033\langnp2057\insrsid6362770\charrsid13444835 be}{\fs24\lang2057\langfe1033\langnp2057\insrsid1857562\charrsid13444835 
 paid on 1 September each year. In addition, Taakoka was to make annual }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 payments of 1.5% of the total annual gross revenue derived by it from tourist business tra}{
\fs24\lang2057\langfe1033\langnp2057\insrsid1857562\charrsid13444835 n}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 sacted on the land (revenue payment)}{\fs24\lang2057\langfe1033\langnp2057\insrsid1857562\charrsid13444835 .}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Consideration of $333,000 was to be paid by Ta}{\fs24\lang2057\langfe1033\langnp2057\insrsid1857562\charrsid13444835 a}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 koka to the owners upon confirmation and approval.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14687540\charrsid13444835 
\par [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 17] On 13 February 1989, the lease was approved by the Lease Approval Committee.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14687540\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [18] On 24 February 1989, Mr Dean died. Mr Ra}{\fs24\lang2057\langfe1033\langnp2057\insrsid3110257\charrsid13444835 kei}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  also died before December 2003. In her affidavit sworn on 26 September 2005, Mrs Tupa}{\fs24\lang2057\langfe1033\langnp2057\insrsid3110257\charrsid13444835 ngaia}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  said that so far as she knew, no orders had been made for any of the heirs of Mr Dean and Mr Rakei to become successors to their part shares in the land.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4933067\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [19] On 17 April 1989, the High Court conf}{\fs24\lang2057\langfe1033\langnp2057\insrsid5403298\charrsid13444835 irmed}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  the lease with conditions.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4933067\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [20] By share transfer dated 1 May 1990, Export America Limited transferred its 666 shares to Mary Whaley, an Auckland solicitor.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4933067\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [21] In 1990, the directors considered final plans prepared by Mr de Roles at a cost of approximately $100,000. These }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6629525\charrsid13444835 w}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ere for substantial two storey buildings close to the beach with single st
orey buildings behind. The directors decided that another architect should be instructed and Mr Cook, an Auckland architect, was instructed accordingly. At a cost of about another $100,000, Mr Cook prepared another development plan which was substantially
 different from that of Mr de Roles.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4933067\charrsid13444835 
\par [22]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 On 13 August 1991, pursuit to a deed of declaration of trust (the Taakoka Trust deed), Mary Whaley transferred the 666 shares to Robert Welch of Auckland, solicitor (Mr Welch), as trustee for the Taakoka Island Vil
las Trust (the Taakoka Trust). The primary beneficiary of that trust was Jodi Ann Clark.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4933067\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [23] On 28 February 1994, the Cook Islands General Licensing Authority gave approval in principle for an acco}{\fs24\lang2057\langfe1033\langnp2057\insrsid3015298\charrsid13444835 m}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 modation licence based on Mr Cook}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
s development plans.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4933067\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [24] In 27 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12918051\charrsid13444835 June 1995, Ms Lynsay Francis (Ms}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Francis), a Cook Islands land consultant, purporting to act on behalf of the lando}{\fs24\lang2057\langfe1033\langnp2057\insrsid6558728\charrsid13444835 wners}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10836955\charrsid13444835 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  served a notice of forfeiture on Taakoka and sent copies to the Monetary Board, the Cook Islands}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6558728\charrsid13444835  Licensing Authority, and the Department of Justice.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4933067\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3958974\charrsid13444835 [25] By letter of 11}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 August 1995, Mr Taylor advised the Cook Islands Monetary Board that he had instructions to act for the landowners and that it appeared that Ms Francis had }{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid13241300\charrsid13444835 \'85}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  not been aware o}{\fs24\lang2057\langfe1033\langnp2057\insrsid13241300\charrsid13444835 f}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  the full circumstances of the matter}{\fs24\lang2057\langfe1033\langnp2057\insrsid788446\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid13241300\charrsid13444835 \'85}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  and that he had f}{\fs24\lang2057\langfe1033\langnp2057\insrsid13241300\charrsid13444835 irm}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 instructions from landowners to advice that the matter was considered resolved by the landowners and any purported forfeiture of the lease was now absolutely waived and that the status of rental
 payments to the landowners under and in terms of the lease had been resolved}{\fs24\lang2057\langfe1033\langnp2057\insrsid13241300\charrsid13444835  to the }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
satisfaction of the landowners. He asked the }{\fs24\lang2057\langfe1033\langnp2057\insrsid13241300\charrsid13444835 \tab General }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
Licensing Authority and the Cook Islands Monetary Board }{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ... to actively co-operate to ensure t}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9075817\charrsid13444835 hat no unnecessary obstacles are}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  put in the way of (Taakoka}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s) resumption of work on the site ...}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 .
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4933067\charrsid13444835 
\par [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 26] By the mid-1990}{\fs24\lang2057\langfe1033\langnp2057\insrsid6574851\charrsid13444835 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
, some question had arisen over whether Mr Clark remained as a director. Accordingly, by a shareholders resolution dated 19 March 1996 signed by Mr Welch as
 trustee of the Taakoka Trust and Mrs Tupangaia, Mr Clark was appointed a director of Taakoka from 20 March 1996.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4933067\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [27] On 9 July 1996, the High Court granted }{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 final, full confirmation}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 of the lease. In 1996, Taakoka borrowed funds from the ANZ Bank and used these to build two villas according to the Cook development plan.
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid9437254\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [28}{\fs24\lang2057\langfe1033\langnp2057\insrsid9437254\charrsid13444835 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  On }{
\fs24\lang2057\langfe1033\langnp2057\insrsid529019\charrsid13444835 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  April 1999, Ms Francis, again p}{\fs24\lang2057\langfe1033\langnp2057\insrsid3163882\charrsid13444835 
urporting to act for the owners,}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  applied for an interim injunction to}{\fs24\lang2057\langfe1033\langnp2057\insrsid14167259\charrsid13444835  restrain John McElhinney (Mr Mc}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2177154\charrsid13444835 E}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
lhinney), the project manager for Taakoka, and other Taakoka agents, from entering onto or working on the land upon the grounds that the owners had f}{\fs24\lang2057\langfe1033\langnp2057\insrsid14167259\charrsid13444835 iled a notice of forfeiture and}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  had re}{\fs24\lang2057\langfe1033\langnp2057\insrsid9437254\charrsid13444835 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid14167259\charrsid13444835 entered and taken possession}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  of the land as the rent was in arrears.
 Mrs Tupangaia swore an affidavit in support of this application. Taakoka disputed that there were any rent arrears and filed an application for relief against forfeiture. The alleged notice of forfeiture and associated procee}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9437254\charrsid13444835 ding were subsequently withdrawn.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9437254\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [29] Be}{\fs24\lang2057\langfe1033\langnp2057\insrsid14167259\charrsid13444835 cause of Mrs Tupangaia}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14167259\charrsid13444835 s action}{\fs24\lang2057\langfe1033\langnp2057\insrsid12590146\charrsid13444835 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 , the Taa}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14167259\charrsid13444835 koka Trust}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  decided that it would be prudent to buy the shareholding of }{
\fs24\lang2057\langfe1033\langnp2057\insrsid14167259\charrsid13444835 Mr}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid15532724\charrsid13444835  T}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 upangaia and }{\fs24\lang2057\langfe1033\langnp2057\insrsid14167259\charrsid13444835 Mr Ta Pua.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9437254\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [30] On 5 July 1999, Mr K McMillan, registered valuer, valued the lease interest of Taakoka in the land at $895,000.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9437254\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [31] After negotiations with Mrs Tupangaia, through her solicitor, Mr Taylor, and}{\fs24\lang2057\langfe1033\langnp2057\insrsid3804572\charrsid13444835  Mr}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  T}{\fs24\lang2057\langfe1033\langnp2057\insrsid3804572\charrsid13444835 a Pua, through his}{\fs24\lang2057\langfe1033\langnp2057\insrsid6776600\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid15147275\charrsid13444835 Tokoroa solicitors, agreement was reached for the sale of}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3804572\charrsid13444835 Mrs Tupangaia}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid3804572\charrsid13444835 s 1}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 69 shares to the Taakoka Trust for $150,000, and for Mr Ta Pua}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s 55 shares to be similarly sold for $3}{\fs24\lang2057\langfe1033\langnp2057\insrsid3804572\charrsid13444835 8}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
,840.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3804572\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [32] In 1999, Mr Clark took steps to have a Canadian investor provide finance for the next stage of}{\fs24\lang2057\langfe1033\langnp2057\insrsid7619957\charrsid13444835 
 the development and to take 51}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 % of the Taakoka shares. However, when in 2000}{\fs24\lang2057\langfe1033\langnp2057\insrsid2900518\charrsid13444835  it became apparent that the Can}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 adian investor was unlikely to contribute, Mr Clark arranged for Mr Lyon, an Auckland businessman and a New}{\fs24\lang2057\langfe1033\langnp2057\insrsid7170262\charrsid13444835 
 Zealand construction company, }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Cabella }{\fs24\lang2057\langfe1033\langnp2057\insrsid5850264\charrsid13444835 Construction}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Ltd, to invest. When Cabella did not make a final commitment, Mr Lyon agreed to make an increased contribution. He a}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2900518\charrsid13444835 dvanced money to the Taakoka Tru}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 st to enable completion of the purchase of the shares from Mrs}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2900518\charrsid13444835  Tupangaia and Mr Ta Pua and fu}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ll payment was }{
\fs24\lang2057\langfe1033\langnp2057\insrsid2900518\charrsid13444835 made}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  to them accordingly.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4919405\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [33] During 2002, Taakoka agreed to increase the ground rent to $7,500 p.a.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4919405\charrsid13444835 
\par [34]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Ta}{\fs24\lang2057\langfe1033\langnp2057\insrsid11480789\charrsid13444835 akoka sought funding from Westpac}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 Bank. When it appeared that Westpac would finance part of the cost of t}{\fs24\lang2057\langfe1033\langnp2057\insrsid11480789\charrsid13444835 he next stage of development, Mr}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 Lyon obtained an estimate of the cost of that stage as being in the region of $2,300,000 and then agreed to contribute $1,153,882, being 50% of the estimated cost. On 22 May 2003, Mr Lyon arranged a bank cheque for this amount. He also provided other f}{
\fs24\lang2057\langfe1033\langnp2057\insrsid11480789\charrsid13444835 unds}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  to Taakoka.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4919405\charrsid13444835 
\par [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 35}{\fs24\lang2057\langfe1033\langnp2057\insrsid4919405\charrsid13444835 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  By October 2003, Mr Har
vey, a director of Project Economics Limited, a quantity surveying and project management company based in Auckland and which was contracted to Taakoka to act as quantity surveyor and project manager for}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4919405\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 development of the land, had completed plans for the next stage of the development involving th}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9528363\charrsid13444835 e construction of 12 further un}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 its, 
together with a restaurant, bar, swimming pool and sewerage treatment plant and had sent plans to contractors who were invited to tender for the work. Tender prices from interested contractors were received in November 2003. Project Economics interviewed 
the tenderers and prices for approximately two-thirds of the contract work were negotiated and agreed in November 2003.
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2233174\charrsid13444835 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 36}{\fs24\lang2057\langfe1033\langnp2057\insrsid2233174\charrsid13444835 ]}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  In late November 2003, after receiving a report from Mr Harvey, Mr Clark and Mr Lyon travelled to the Cook Islands to meet Mr McElhi}{
\fs24\lang2057\langfe1033\langnp2057\insrsid13522763\charrsid13444835 nney and Mr T Smith, the manager}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  of Westpac Bank in the Cook Islands, and negotiated an agreement that if Taakoka}
{\fs24\lang2057\langfe1033\langnp2057\insrsid5850264\charrsid13444835  obtained private funding to cov}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 er 50% of the construction costs for the }{
\fs24\lang2057\langfe1033\langnp2057\insrsid5850264\charrsid13444835 next stage of the development, then Westpac would contribute the other 50% on a }{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 dollar for dollar}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 basis. Mr Lyon agreed to provide Taakoka with sufficient funds to cover 50% of the construction costs subject to receiving building consent after a revised environment impact assessment report had been prepared. It was antici
pated that construction work on the second stage would start in early 2004.
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid2233174\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2233174\charrsid13444835 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 37] As project manager for Taakoka, Mr McElhinney was r}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9011145\charrsid13444835 esponsible for taking bookings }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
for the two villas on the land. Following a request from Mrs Tupangaia, Mr McElhinney agreed that she}{\fs24\lang2057\langfe1033\langnp2057\insrsid8541403\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
and her family could occupy the two villas rent free over the Christmas period from 13 December 2003 to 3 January 2004.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5903446\charrsid13444835 
\par [38]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  By letter of 2 December 2003, Mr Postles, the accountant for Taakoka, advised Mr Taylor about development progress and t
hat a contractor had been appointed and work would proceed under the supervision of Project Economics Limited as soon as clearance was received. }{\fs24\lang2057\langfe1033\langnp2057\insrsid5850264\charrsid13444835 He}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  said that funding had been secured for the work. Mr Postles concluded his letter by stating:
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7041251\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7041251 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 4. You will pro}{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 
bably be aware that Ruta has the}{\fs24\lang2057\langfe1033\langnp2057\insrsid5850264\charrsid13444835  use of bo}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 th e}{
\fs24\lang2057\langfe1033\langnp2057\insrsid5850264\charrsid13444835 xisting units for Xmas, as from}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  13.12.03.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid7041251\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7041251 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 5. According to my records, La}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 nd Rent of $7,500 was due on 30}{\fs24\lang2057\langfe1033\super\langnp2057\insrsid5850264\charrsid13444835 th}{\fs24\lang2057\langfe1033\langnp2057\insrsid5850264\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 September last. Could you please conf}{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 ir}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
m that payment }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid5850264\charrsid13444835 direct }{\fs24\lang2057\langfe1033\langnp2057\insrsid5850264\charrsid13444835 to the indigenous Owners is acceptable}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14619520\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid5850264\charrsid13444835 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid14619520\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid5850264\charrsid13444835 the original idea of payment to the Land Court se}{\fs24\lang2057\langfe1033\langnp2057\insrsid16544831\charrsid13444835 ems to be ponderous and archaic!}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid7041251\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [3}{\fs24\lang2057\langfe1033\langnp2057\insrsid7041251\charrsid13444835 9]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 Mr Taylor sent a copy of this letter to Mrs Tupangaia before she left for}{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Rarotonga.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7041251\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [40] When Mrs Tupangaia arrived in Rarotonga, Mr McElhinney walked ar}{\fs24\lang2057\langfe1033\langnp2057\insrsid16544831\charrsid13444835 ound the area of the next constr}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 uction stage with her and she appeared to be quite happy with the proposed development. She did not indicate that she thought that the rent was in arrears.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7631667\charrsid13444835 
\par [41] On 27 December 20}{\fs24\lang2057\langfe1033\langnp2057\insrsid2187545\charrsid13444835 0}{\fs24\lang2057\langfe1033\langnp2057\insrsid7631667\charrsid13444835 3, Mr McE}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
lhinney received an email from Travis}{\fs24\lang2057\langfe1033\langnp2057\insrsid14103221\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Moore, (Mr Moore), stating}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2187545\charrsid13444835 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7631667\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7631667 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 We act for the majority of the present Landowners of the above property.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid7631667\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7631667 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 O}{\fs24\lang2057\langfe1033\langnp2057\insrsid7631667\charrsid13444835 n}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  22 December 2003 the Landowners did re-enter the property, take possession thereof and forfeited the lease of December 1988.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid7631667\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7631667 {\fs24\lang2057\langfe1033\langnp2057\insrsid7631667\charrsid13444835 
The Notice of Forfeit was presented to the Registrar of the High Court and stamped by and accepted by him }{\fs24\lang2057\langfe1033\langnp2057\insrsid14291229\charrsid13444835 for}{\fs24\lang2057\langfe1033\langnp2057\insrsid7631667\charrsid13444835 
 registration on }{\fs24\lang2057\langfe1033\langnp2057\insrsid9331945\charrsid13444835 23}{\fs24\lang2057\langfe1033\langnp2057\insrsid7631667\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 December 2003}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7631667\charrsid13444835 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid7631667\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [42] Mr Moore requested transfer of Taakoka records and information.
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid5446061\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [43] This email was the first notice that
 anyone associated with Taakoka received of purported forfeiture, re-entry and possession. Acting on information received from a cleaner of the villas, Mr McElhinney went to one of the villas where Mrs Tupangaia was staying and retrieved a notice which wa
s attached to it. The pertinent parts of this notice said:
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid11277211 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 NOTICE OF FORFEIT
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid11277211 {\fs24\ul\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 TAKE NOTICE }{\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
that I, }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 RUTA TEREROA TUPANGAIA}{\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 , and }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
THE LANDOWNERS}{\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835  of }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 ALL}{\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835  [the land]}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7302167\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 \'85 have this day re-entered, posted with}{\fs24\lang2057\langfe1033\langnp2057\insrsid7302167\charrsid13444835 
 this}{\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835  notice, and taken possession of }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 ALL}{
\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835  that land }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 ON THE GROUNDS}{\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
 that THE BASE RENT IS IN ARREARS THE 1.5% OF GROSS INCOME PAYMENTS (RENTALS) ARE IN ARREARS
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid11277211 {\fs24\ul\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 DATED}{\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
 at Rarotonga this 22.12. day of December 2003
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid11277211 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 To: The Registrar of the Land Division, High Court or to whom it may concern:
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid11277211 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 \'85.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid11277211 {\fs24\ul\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 SIGNED }{\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 by t
he said }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 LANDOWNERS}{\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 :
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid11277211 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 [Signature]
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid11277211 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 BY: RUTA }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
TEREROA TUPANGAIA}{\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid11277211 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 Witness:
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid11277211 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 [Signature]
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid11277211 {\fs24\lang2057\langfe1033\langnp2057\insrsid5446061\charrsid13444835 Travis Moore
\par Vaimaanga }{\fs24\lang2057\langfe1033\langnp2057\insrsid732682\charrsid13444835 Rarotonga
\par Consultant
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid732682\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14289709\charrsid13444835 [44]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid149224\charrsid13444835 I}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 n the affidavit which he swore on 16 March 2004 in opposition to the application for relief against forfeiture, Mr Moore said that he was a land }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 consultant and agent for Mrs Tu}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 pangaia and that she }{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  ... retained my services towards the end of 20}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8727425\charrsid13444835 0}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 3 to see if I could bring to a close once and for all her attempts over many years to free her land ...}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14289709\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [45}{\fs24\lang2057\langfe1033\langnp2057\insrsid14289709\charrsid13444835 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 Mr Moore delivered a letter dated 23 December 2003 to the Development}{\fs24\lang2057\langfe1033\langnp2057\insrsid13717991\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Investment Board which said:
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14289709\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 I am writing you on behalf of the Landowners of the}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835  above }{\fs24\lang2057\langfe1033\langnp2057\insrsid9662121\charrsid13444835 property, as }{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 instructed by Ms Ruta Tu
}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 pangaia, majority Landowner.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 We have had a chance to review the DIB file for Ta}{
\fs24\lang2057\langfe1033\langnp2057\insrsid5266794\charrsid13444835 a}{\fs24\lang2057\langfe1033\langnp2057\insrsid5914774\charrsid13444835 koka}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 Island Villas Limited and spell out chronologically below what we see as a wholesale failure on the part of th}{\fs24\lang2057\langfe1033\langnp2057\insrsid5266794\charrsid13444835 is}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 Registered Foreign Investor to meet it}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s approvals.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid14289709\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid5266794 {\fs24\lang2057\langfe1033\langnp2057\insrsid14289709\charrsid13444835 \'85.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid14289709\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid10441584 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 We can see no reason why this Fore}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14289709\charrsid13444835 ign Enterprise should not be de-}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
registered at the next meeting of the DIB, if not sooner. The Landowners hereby make that de}{\fs24\lang2057\langfe1033\langnp2057\insrsid14289709\charrsid13444835 mand.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs22\lang2057\langfe1033\langnp2057\insrsid14289709\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [46}{\fs24\lang2057\langfe1033\langnp2057\insrsid14289709\charrsid13444835 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  By email of 27 December 2003, Mr Mc}
{\fs24\lang2057\langfe1033\langnp2057\insrsid2765211\charrsid13444835 E}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 l}{\fs24\lang2057\langfe1033\langnp2057\insrsid2765211\charrsid13444835 h}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 inney, on behalf of Taakoka,}{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
advised Mr Moore:
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2765211\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9582009 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Have no authority to release any information such as requested in your }{
\fs24\lang2057\langfe1033\langnp2057\insrsid13238781\charrsid13444835 email}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  on this matter. The major shareholder in the Company is issuing instructions to his solicitor to sue Ru}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 th}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 Tupangaia }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
and anyone else responsible for yet another landowner instigated delays, for any loss incurred by this action, as contracts for construction in the order of $2,200,000 have been let and finance arranged to co}{
\fs24\lang2057\langfe1033\langnp2057\insrsid13238781\charrsid13444835 mmence}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  the construction of the n}{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 ext stage -
}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  we are only awaiting the Environmental approval following the delivery of the }{\fs24\lang2057\langfe1033\langnp2057\insrsid13238781\charrsid13444835 EIA}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  to the Council on the 19}{\fs24\lang2057\langfe1033\super\langnp2057\insrsid13238781\charrsid13444835 th}{\fs24\lang2057\langfe1033\langnp2057\insrsid13238781\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Dec 2003. Both you and Ruth Tupangaia are fully aware of}{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835  this situation. This is not the}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  first time Ruth has been badly advised on this matter - the l}{\fs24\lang2057\langfe1033\langnp2057\insrsid13238781\charrsid13444835 as}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 t time cost her a lot in legal fees and so will this action. Her solicitor in NZ only a week or so ago was informed of the process in the development}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9582009\charrsid13444835 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  I am aware of the background to this and who you are really acting for.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid16142309\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid13238781 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 We have bookings for January so will expect }{
\fs24\lang2057\langfe1033\langnp2057\insrsid16142309\charrsid13444835 R}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 uth and her fa}{\fs24\lang2057\langfe1033\langnp2057\insrsid16142309\charrsid13444835 mily}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  out on the agreed date of the 3}{\fs24\lang2057\langfe1033\super\langnp2057\insrsid16142309\charrsid13444835 rd}{\fs24\lang2057\langfe1033\langnp2057\insrsid16142309\charrsid13444835 
 Jan}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 . The company has a lease on the property and will expect this to be done. An application for relief against forfeiture will also be forthcoming. Incidently [}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16142309\charrsid13444835 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ic] Ruth has only half of t}{\fs24\lang2057\langfe1033\langnp2057\insrsid16142309\charrsid13444835 he}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  shares in the land.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [47}{\fs24\lang2057\langfe1033\langnp2057\insrsid16142309\charrsid13444835 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  By }{
\fs24\lang2057\langfe1033\langnp2057\insrsid16142309\charrsid13444835 em}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ail of 31 December 2003, M}{\fs24\lang2057\langfe1033\langnp2057\insrsid15946156\charrsid13444835 s}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Harvey}{\fs24\lang2057\langfe1033\langnp2057\insrsid15946156\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 of Bro}{
\fs24\lang2057\langfe1033\langnp2057\insrsid15946156\charrsid13444835 wn Gibson}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Harvey PC, Barristers, Solicitors and No}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 taries Public, advised Mr Moore}{\fs24\lang2057\langfe1033\langnp2057\insrsid15946156\charrsid13444835 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16142309\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9196971 {\fs24\lang2057\langfe1033\langnp2057\insrsid13189123\charrsid13444835 John }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Mc}{
\fs24\lang2057\langfe1033\langnp2057\insrsid13189123\charrsid13444835 E}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
lhinney has instructed us in relation to the attempted forfeiture of lease of the above land. Contrary to the notice (which has not been served }{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 on the company), all rents have }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 been paid other}{\fs24\lang2057\langfe1033\langnp2057\insrsid13189123\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 than the ground r}{
\fs24\lang2057\langfe1033\langnp2057\insrsid15946156\charrsid13444835 ent}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  due on 30 September 2003. The Company}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}
{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s accountant, Bryce P}{\fs24\lang2057\langfe1033\langnp2057\insrsid13189123\charrsid13444835 o}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 stle}{
\fs24\lang2057\langfe1033\langnp2057\insrsid13189123\charrsid13444835 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 , wrote to Malcol}{\fs24\lang2057\langfe1033\langnp2057\insrsid13189123\charrsid13444835 m}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Taylor, who we}{\fs24\lang2057\langfe1033\langnp2057\insrsid13189123\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
understand is the landowners solicitor in New Zealand, regarding that rental on 2 December 2003 seeking instructions as to whether it was acceptable for the r}{\fs24\lang2057\langfe1033\langnp2057\insrsid15946156\charrsid13444835 ent}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  to be paid directly to the landowner}{\fs24\lang2057\langfe1033\langnp2057\insrsid15946156\charrsid13444835 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ,
 as has always been done in the past, rather than to the High Court. Mr Postles said in his letter }{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
According to my records, land rent of $7500 was due on 30}{\fs24\lang2057\langfe1033\super\langnp2057\insrsid13189123\charrsid13444835 th}{\fs24\lang2057\langfe1033\langnp2057\insrsid13189123\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 September last. Could you please confirm that payment direct to the indigenous owners is acceptable.}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  No response has been received to that letter. If you were to provide us with a fax }{\fs24\lang2057\langfe1033\langnp2057\insrsid13189123\charrsid13444835 number w}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 e w}{\fs24\lang2057\langfe1033\langnp2057\insrsid13189123\charrsid13444835 ould }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 be happy to forward a }{
\fs24\lang2057\langfe1033\langnp2057\insrsid13189123\charrsid13444835 c}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 opy of that letter to you.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid13189123\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9196971 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 It is evident that the lessee company is able and willing to }{
\fs24\lang2057\langfe1033\langnp2057\insrsid15946156\charrsid13444835 p}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ay the re}{\fs24\lang2057\langfe1033\langnp2057\insrsid15946156\charrsid13444835 nt}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  upon receipt of instructions as to where the payment should be made. On that basis, we are confident that an Application for Relief against Forfeiture will be successful. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid15946156\charrsid13444835 I}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 n light of the correspondence to the landowners solicitor however, we trust that such an appl}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 ication will not be ne}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 cessary and the notice will be immediately withdrawn. We also require the loc}{
\fs24\lang2057\langfe1033\langnp2057\insrsid15946156\charrsid13444835 k}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
s to be reinstated and that Ms Tupangaia will vacate the property on 3 January 2004 as originally agreed with the lessee company as guests are booked to arrive on that day.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par [48] In Mar}{\fs24\lang2057\langfe1033\langnp2057\insrsid9988609\charrsid13444835 c}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 h 2004, Mrs Tupangaia}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s son, Par}{\fs24\lang2057\langfe1033\langnp2057\insrsid9964542\charrsid13444835 a}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
u, visited the Cook Islands. He claimed to be an alternate director of T}{\fs24\lang2057\langfe1033\langnp2057\insrsid9964542\charrsid13444835 aa}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 koka for his mother. On 3 March 2004, P
arau Tupangaia and Mr Moore met at the restaurant of the Rarotongan Beach Resort & Spa and there purported to hold a meeting of directors of Taakoka}{\fs24\lang2057\langfe1033\langnp2057\insrsid9988609\charrsid13444835 . }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 According to the purported directors}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 resolution signed by Pa}{\fs24\lang2057\langfe1033\langnp2057\insrsid9964542\charrsid13444835 rau}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Tupangaia and Mr Moore}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9964542\charrsid13444835 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9988609\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9988609 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 When it was clear there was no qu}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9964542\charrsid13444835 orum}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 , Director Tupangaia, in accordance with the Articles of Asso}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9964542\charrsid13444835 ciation}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 , Paragraph 101, did co-opt Travis Moore, builder and land consultant, as }{
\fs24\lang2057\langfe1033\langnp2057\insrsid9964542\charrsid13444835 a}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  casual}{\fs24\lang2057\langfe1033\langnp2057\insrsid9964542\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Director for the meeting }{\fs24\lang2057\langfe1033\langnp2057\insrsid9964542\charrsid13444835 a}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
s called and for any adjournments thereof.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid9988609\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9988609 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Mr Moore accep
ted his appointment and Director Moore reached a consensus with Director Tupangaia that Director Tupangaia would serve as Chairman of the Board.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs22\lang2057\langfe1033\langnp2057\insrsid9988609\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [49] Mr Tupangaia and Mr Moore then purported to pass six resolutions which included resolutions that Mr McElhinney be advised that }{
\fs24\lang2057\langfe1033\langnp2057\insrsid2784596\charrsid13444835 any}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  contract be had with Taako}{\fs24\lang2057\langfe1033\langnp2057\insrsid9988609\charrsid13444835 ka}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  was suspended, that Taakoka}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
s lawyers be instructed to cease any further action on behalf of Ta}{\fs24\lang2057\langfe1033\langnp2057\insrsid4220364\charrsid13444835 a}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
koka, and that Mr Moore write to the legal and beneficial owners of 667,000 shares of Taakoka that were unpaid, demanding payment.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9988609\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [50] On 4 March 2004, Mr Moor}{\fs24\lang2057\langfe1033\langnp2057\insrsid2784596\charrsid13444835 e}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 , }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4220364\charrsid13444835 purporting }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 to act as a director of Taakoka, faxed Taakoka}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
s Auckland lawyers Hesketh Henry advising the purported resolution to call up unpaid shares and demanded payment of $670,000 in compliance with }{\fs24\lang2057\langfe1033\langnp2057\insrsid1652670\charrsid13444835 the}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  call, to be made within 14 days to the law offices of Mr John McFadzien, Rarotonga.
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1652670\charrsid13444835 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 51}{\fs24\lang2057\langfe1033\langnp2057\insrsid1652670\charrsid13444835 ]}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  On 5 March 2004, Ms K J Harvey of }{\fs24\lang2057\langfe1033\langnp2057\insrsid4926231\charrsid13444835 Brown G}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
ibson Harvey PC filed the application for relief against forfeiture as solicitor for Taakoka, together with affidavits of Mr McElhinney and Mr Postles in support.
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid4345988\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [52}{\fs24\lang2057\langfe1033\langnp2057\insrsid4345988\charrsid13444835 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 On 8 March 2004, the Development Investment }{\fs24\lang2057\langfe1033\langnp2057\insrsid8199525\charrsid13444835 B}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 oard revoked the foreign enterp}{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 rise registration of Taakoka. I}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 n its letter of 19 May 2004 to Ms Harvey}{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835  advising he}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8199525\charrsid13444835 r}{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835  of the revocation, the Board said:}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid6582385 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 In considering }{\fs24\lang2057\langfe1033\langnp2057\insrsid4345988\charrsid13444835 
the}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  above decision, the Board of }{\fs24\lang2057\langfe1033\langnp2057\insrsid4345988\charrsid13444835 
Directors would like to advice Taakoka Island Villas Ltd that it is welcome to submit a new Foreign Enterprise Registration Application at any time.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs22\lang2057\langfe1033\langnp2057\insrsid4345988\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [53] }{\fs24\lang2057\langfe1033\langnp2057\insrsid5317570\charrsid13444835 O}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
n 17 March 2004, there was a shareholders}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  resolution by }{
\fs24\lang2057\langfe1033\langnp2057\insrsid1458395\charrsid13444835 Mr}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Welch as trustee of Taakoka Trust, repre
senting 666 shares, and Trustee of Taakoka Trust and attorney for Mrs Tupangaia and Mr Te Pua, pursuant to the share sale and transfer agreement between each of them and the Taakoka Trust, representing 169 shares and 55 shares respectively, conf}{
\fs24\lang2057\langfe1033\langnp2057\insrsid1458395\charrsid13444835 irming}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  the 
appointment of Mr Clark as a director, appointing Mr Lyon as a director, removing Mrs Tupangaia as a director, and resolving:
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6582385\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7358763 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Parau Tupangaia, claiming and purporting to have b}{
\fs24\lang2057\langfe1033\langnp2057\insrsid1458395\charrsid13444835 een}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  a}{\fs24\lang2057\langfe1033\langnp2057\insrsid1458395\charrsid13444835 
ppointed on a date unknown as an alternate director fo}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 r R}{\fs24\lang2057\langfe1033\langnp2057\insrsid1458395\charrsid13444835 u}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ta Tupangaia is }{\fs24\lang2057\langfe1033\langnp2057\insrsid932553\charrsid13444835 hereby removed as a director.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 

\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid7358763 {\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7358763 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Travis Moore, claiming and purporting to have been co-opted by Pa}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 rau Tupangaia on 3 March 2004 as}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  a casual director of the company under Article 101 of the }{
\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 company}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 s Article}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s of }{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 Association}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 is hereby removed as a director.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14578793\charrsid13444835 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 5}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 4}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14578793\charrsid13444835 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  On 29 March 2004, Mrs Tu}{\fs24\lang2057\langfe1033\langnp2057\insrsid14578793\charrsid13444835 pan}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 gaia signed a document appoint}{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 ing Parau Tupangaia as her attorn}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ey and a document in which she purported to act as a director of Taakoka}{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835  and appoint Parau Tupangaia }{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 to}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  act as my alter}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14578793\charrsid13444835 nate director in my absence from}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Cook Islands}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 .
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 
\par [5}{\fs24\lang2057\langfe1033\langnp2057\insrsid14578793\charrsid13444835 5] By deed dated }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 30 April 2004, Mr Welch retir}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 ed as the trustee of Taakoka Tru}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 st and Mr Lyon was appointed as a new trustee in his place.
\par 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 56] On 23 December 2004, Williams J, }{\fs24\lang2057\langfe1033\langnp2057\insrsid14578793\charrsid13444835 
as he then was, ordered that the }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 substantive hearing of Taa}{\fs24\lang2057\langfe1033\langnp2057\insrsid14578793\charrsid13444835 ko}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ka}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s application for relief ag}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 ainst forfeiture be heard in }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Auckland.
\par 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 [57]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  By email of 30 June 2005, Mr McFadzien advised that he had ceased to act for the resp}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14578793\charrsid13444835 o}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ndent in the relief proceeding since the venue decision of Williams}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14578793\charrsid13444835  J}{\fs24\lang2057\langfe1033\langnp2057\insrsid4662250\charrsid13444835 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 
\par [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 58] On 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid14578793\charrsid13444835 4 J}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 uly 2005, Mr M
oore filed an application for an order striking out}{\fs24\lang2057\langfe1033\langnp2057\insrsid10958937\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Taakoka}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s relief against forfeiture proceeding }{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 for want of prosecution}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
. That application was adjourned for consideration at the substantive hearing.
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid7358763\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 [59] On}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  19 October 2005, Mr M}{\fs24\lang2057\langfe1033\langnp2057\insrsid3107740\charrsid13444835 cF}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 adzien, acting on behalf of Taturoanui Graham}{\fs24\lang2057\langfe1033\langnp2057\insrsid3804297\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3107740\charrsid13444835 Crocombe (Mr Crocombe),}{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835  applied to the Leases }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3107740\charrsid13444835 Approval Tribunal to approve an }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 agreement to lease the land by M}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 rs Tupangaia and Mr Ta Pua to Mr}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 Crocombe for 60 years from 1 March 2006. The consideration was $375,000 or as reviewed pursuant to the agreement to lease a}{\fs24\lang2057\langfe1033\langnp2057\insrsid3107740\charrsid13444835 n}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 d the annual rental was $7500 plus 1.5% of resort income and transfer consideration. The agreement to lease contains the following terms:
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7358763 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 5. This agreement is subject to proceedings filed in the High Court by the former
 lessee Taakoka Island Villas Limi}{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 ted for relief against forfeiture}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  being }{
\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 unsuccessful}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  so that the landowners are, after such proceedings have been }{
\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 determined}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  in their favour, in a position to enter into the Deed of Lease }{
\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 hereby}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  contemplated.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7358763 {\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 9.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  The Lando
wners and the Lessee agree, that}{\fs24\lang2057\langfe1033\langnp2057\insrsid2298680\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 on the settlement date (being the date upon which the goodwil}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 l is paid) the Landowners and Tata shall}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 on production of valid invoices have taken into account actual and reasonable legal and other expenses paid by 
each of them to forfeit the lease held by Taakoka Island Villas Limited and to assist in and further the defence of the application for relief filed by that company from the time notice of forfeiture was given in December 2003 until the date on which the 
lease contemplated by this agreement shall be confirmed by the Hig}{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 h Court. For the purposes of taki}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
ng such sums into account, the Landowners shall on settlement be entitled to add legal and other expenses paid by them to the goodwill payable hereunder and the Lessee shall then be }{\fs24\lang2057\langfe1033\langnp2057\insrsid15494118\charrsid13444835 a
}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ble to deduct legal and other expenses p}{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 aid by the Lessee from that total}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 .
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid7358763 {\fs22\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7358763 {\fs24\lang2057\langfe1033\langnp2057\insrsid3040288\charrsid13444835 13.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid15494118\charrsid13444835 I}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 n the event that the application for relief against forfeiture herein before referred to shall be successf}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 ul, or if Leases Approval Tribun}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 al shall not }{
\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 approve}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  the proposed lease or if the }{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 High}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 Court shall on application for partition award to the Landowners an area that is in the opinion of the Lessee significantly less than that which is contemplated by this agreement (or this Agreement as modified by 
clause 7), then the Lessee may at the Lessee}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s so}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 le option cancel this agreement}{\fs24\lang2057\langfe1033\langnp2057\insrsid15075337\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ...
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid7358763 {\fs22\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 [60]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 The only rent payable by Taakoka}{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835  in December 2003 was the}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  ground rent of }{
\fs24\lang2057\langfe1033\langnp2057\insrsid15357487\charrsid13444835 $7500, which became payable on 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  September 2003. Taakoka was able and willing to pay that re
nt and in his letter of 2 December 2003, }{\fs24\lang2057\langfe1033\langnp2057\insrsid15948002\charrsid13444835 Mr}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Pos}{
\fs24\lang2057\langfe1033\langnp2057\insrsid15948002\charrsid13444835 t}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 les for Taakoka sought}{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 directions as to the mode of payment. That base re}{\fs24\lang2057\langfe1033\langnp2057\insrsid15948002\charrsid13444835 nt}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  and base rent and revenue payments which have subsequently become due have been either paid into Court or held in a tru}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 st account available for payment}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 , if directed by the Court.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Pertinent law
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [61] Term 8 of the lease provides:
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid1014482 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 If the rental hereby reserved or any part thereof shall be in arr}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14627481\charrsid13444835 ear}{\fs24\lang2057\langfe1033\langnp2057\insrsid7358763\charrsid13444835  and unpaid for the space of three calendar months after the same shall become due or if the Lessee for }{
\fs24\lang2057\langfe1033\langnp2057\insrsid14627481\charrsid13444835 a like period}{\fs24\lang2057\langfe1033\langnp2057\insrsid15278986\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid2301252\charrsid13444835 fails to}{
\fs24\lang2057\langfe1033\langnp2057\insrsid15278986\charrsid13444835  observe }{\fs24\lang2057\langfe1033\langnp2057\insrsid14627481\charrsid13444835 or perform any of the covenants}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  }
{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 or conditions on its part hereinafter contained or implied it shall be lawful for the Les
sors thereupon or at any time thereafter to re-enter upon the said land and terminate this lease but without prejudice to the rights of the Lessors to recover any rent which may be in arrears or unpaid at the date of such termination.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par [62] The New Zealand Property Law Act 1952 (the Property Law }{\fs24\lang2057\langfe1033\langnp2057\insrsid13133002\charrsid13444835 Act) applies in the Cook Isl}{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 ands}{
\fs24\lang2057\langfe1033\langnp2057\insrsid13133002\charrsid13444835  -}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Section 637 Cook Islands Act 1915. Section 11}{
\fs24\lang2057\langfe1033\langnp2057\insrsid13133002\charrsid13444835 8}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 of the Property Law Act governs lease forfeiture, re-entry and relief against forfeiture. However, s 118(3) provides:
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid1014482 {\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 (3) Exce}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 pt in }{
\fs24\lang2057\langfe1033\langnp2057\insrsid13133002\charrsid13444835 a case where the}{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835  lessee is bankr}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
upt this section shall not affect the law relat}{\fs24\lang2057\langfe1033\langnp2057\insrsid13133002\charrsid13444835 ing to re-entry or forfeiture in}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  case of non-payment of r}{
\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 e}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 nt.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [63] Therefore if the sole basis for the purported for}{\fs24\lang2057\langfe1033\langnp2057\insrsid12339991\charrsid13444835 feiture and re-entry in this cas}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 e was non-payment of rent then the relief against forfeiture application is to be decided in exerci}{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 se of the Court}
{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 s equitable jurisdiction to}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  grant relief.

\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 
\par [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 64] The general principle upon which the discretion to grant relief is exercised}{\fs24\lang2057\langfe1033\langnp2057\insrsid9706663\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid7698657\charrsid13444835 was described by Jenkins LJ}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  in }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
Gill v Lewis}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  [1956}{\fs24\lang2057\langfe1033\langnp2057\insrsid7698657\charrsid13444835 ] }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 2 QB 1, 13:
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid1014482 {\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 ...}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
save in exceptional circumstances, the function of the Court in exercising this equitable jurisdiction is to grant relief when all that is due for rent and costs has been paid up, and (in general) to disregard any other causes of co
mplaint that the landlord may have against the tenant. The question is whether, provided all is paid up, the landlord will not have been fully compensated; and the view taken by the Court is that if he ge}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7698657\charrsid13444835 ts the whole of his rent and cos}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ts, then he }{\fs24\lang2057\langfe1033\langnp2057\insrsid7698657\charrsid13444835 
has}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  got all he is entitled to so far as rent is concerned, and extraneous matters of breach of covenant, and so forth, are, generally speaking, irrelevant.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid1014482 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 But there may}{\fs24\lang2057\langfe1033\langnp2057\insrsid12868156\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 be very}{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835  exceptional cases in which the conduct of the tenant}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7698657\charrsid13444835 s has been such as, i}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 n effect, to
 disqualify them from coming to the court and claiming any relief or assistance whatever.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs22\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 [65] I}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 n }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 Studio X Ltd v Mobil O}{
\i\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 il New Zealand Ltd}{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835  [1996}{\fs24\lang2057\langfe1033\langnp2057\insrsid13385278\charrsid13444835 ] }{
\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 2 NZLR 697, Hammond J}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  comprehensively considered the English and New Zealand cases on the discretion to grant
 relief aga}{\fs24\lang2057\langfe1033\langnp2057\insrsid13385278\charrsid13444835 inst forfeiture. His findings are}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 succinctly and correctly summarised in the headnote on page 698 of the report and apply equally to the s 118 and equity discretion to grant relief.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid1014482 {\fs24\lang2057\langfe1033\langnp2057\insrsid10250035\charrsid13444835 2 \'85\'85}{\fs24\lang2057\langfe1033\langnp2057\insrsid13906632\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6833088\charrsid13444835 A number of factors had}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  to b
e considered in exercising the discretion to grant relief. These included: whether the breach had been deliberate; whether the breach had been beyond the tenant}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s control; whether the breach had involved an immoral or illega}{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 l use and whether the tenant had
 made or would make good the breach of the covenant or was able and }{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 willing}{\fs24\lang2057\langfe1033\langnp2057\insrsid6833088\charrsid13444835  to fulfil his obligations }{
\fs24\lang2057\langfe1033\langnp2057\insrsid13971935\charrsid13444835 in the future;}{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835  the conduct of the landlord; the personal qualifications and financial position of the }{
\fs24\lang2057\langfe1033\langnp2057\insrsid7474557\charrsid13444835 tenant}{\fs24\lang2057\langfe1033\langnp2057\insrsid6833088\charrsid13444835 ; sometimes }{\fs24\lang2057\langfe1033\langnp2057\insrsid400413\charrsid13444835 the position }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6833088\charrsid13444835 of the third parties}{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 ; }{\fs24\lang2057\langfe1033\langnp2057\insrsid6833088\charrsid13444835 the}{
\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835  gravi}{\fs24\lang2057\langfe1033\langnp2057\insrsid5706532\charrsid13444835 ty of the breach; whether it had}{\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 
 occasioned lasting damage to the landlord; and the proportionality of damage suffered by the landlord compared to the advantage}{\fs24\lang2057\langfe1033\langnp2057\insrsid1925647\charrsid13444835 s}{
\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835  if no relief was granted.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 Decision}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid1014482\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par [66] The evidence satisfies me that Taakoka was able to, and wished to, pay the outstanding rent of $7,500 in December 2003 and its failure to do so arose solely because it was waiting to hear from Mrs Tupangaia}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s solicitor about her payment preference.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 
\par [67]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  A history of late pay}{\fs24\lang2057\langfe1033\langnp2057\insrsid14625382\charrsid13444835 ments of rent was the subject of}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  considerable evidence and submissions. In my view}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835  such late payments as did occur}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  arose either from a common belief that it was not possible to make rental payments until the lease has been finally confirmed by
 the High Court or, dispute about whether the landowner shareholders were l}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 iable to contribute to Taakoka}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 running costs. They did not arise out of financial inability by Taakoka to make such payments. The difficulties were ultimately reso}{\fs24\lang2057\langfe1033\langnp2057\insrsid14625382\charrsid13444835 lved to common satisfaction by t}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 he final confirmation of the lease, and the agreements reached inv}{\fs24\lang2057\langfe1033\langnp2057\insrsid14625382\charrsid13444835 olving the sale by Mrs Tupangaia}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  and Mr Ta Pua of their shares.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 
\par [68]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  The financial position of}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835  the lessee is a factor that may be taken into accou}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 nt in deciding whether to grant relief against forfeiture. Even if the lessee is insolvent that is only one factor to be considered in all the circumstances and it does not follow}{
\fs24\lang2057\langfe1033\langnp2057\insrsid13109418\charrsid13444835  that relief should be declined for that reason}{\fs24\lang2057\langfe1033\langnp2057\insrsid13444665\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid13109418\charrsid13444835 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13444665\charrsid13444835  }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid13109418\charrsid13444835 McKenna v North Harbour Tav
erns Limite}{\fs24\lang2057\langfe1033\langnp2057\insrsid13109418\charrsid13444835 d Wy}{\fs24\lang2057\langfe1033\langnp2057\insrsid14436594\charrsid13444835 lie J AKHC, CP}{\fs24\lang2057\langfe1033\langnp2057\insrsid13109418\charrsid13444835 459/91, 22
}{\fs24\lang2057\langfe1033\langnp2057\insrsid3943288\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid13109418\charrsid13444835 July 1991.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13109418\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16411344\charrsid13444835 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 6}{\fs24\lang2057\langfe1033\langnp2057\insrsid16411344\charrsid13444835 9]}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8406696\charrsid13444835  Mr David based}{\fs24\lang2057\langfe1033\langnp2057\insrsid14378961\charrsid13444835  his }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
insolvency submission on the affidavit evidence of Grant}{\fs24\lang2057\langfe1033\langnp2057\insrsid16081003\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid14378961\charrsid13444835 Gra}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ham a Chartered Accountant partner in F}{\fs24\lang2057\langfe1033\langnp2057\insrsid14378961\charrsid13444835 errier}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Hodgson & Co. Mr Graham expressed his opinion based on the affidavit evidence and in particular Taakoka}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s financial statements for the years ended 31 December 2003 and 2004, that Taakoka was insolvent and in that its assets were insufficient to meet its undisputed liabilit}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14378961\charrsid13444835 ies, that Taa}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
koka does not have the ability to meet its ongoing obligations to pay rent from its own resources, that it has no ability to generate business (apart from the}{\fs24\lang2057\langfe1033\langnp2057\insrsid14378961\charrsid13444835 
 two units) and asset values are}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  over-stated in regard to depreciation and potentially in}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid14378961\charrsid13444835 regard to expenses accrued as}{\fs24\lang2057\langfe1033\langnp2057\insrsid7697438  }{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 building}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 assets.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 
\par [70]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  In response Taakoka filed an affidavit by Michael Carr an Accountant practising in }{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 Rarotonga}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  as the resid}{\fs24\lang2057\langfe1033\langnp2057\insrsid11030287\charrsid13444835 ential director of the firm KPMG}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  in Rarotonga.}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
Mr Carr disagrees with the insolvency opinion of 
Mr Graham. He stated that Mr Graham appeared to apply the theoretical solvency test applied in New Zealand under the Companies Act 1993 and said that the position in the Cook Islands was different as under Cook Islands law the applicable solvency test is 
that set out }{\fs24\lang2057\langfe1033\langnp2057\insrsid9729481\charrsid13444835 in the Companies Act 1955. That}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  test requires that a company be able to pay its debts as}{
\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
they fall due. Thus, under Cook Islands law, a company will not necessarily be insolvent because its liabilities exceed its assets.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 
\par [71] In my view the rele}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 vant financial consideration is whether in reality Taakoka will be likely to be able to continue paying base rent and revenue payments under the}{
\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 lease and to comply with its othe}{\fs24\lang2057\langfe1033\langnp2057\insrsid11030287\charrsid13444835 
r obligations under the lease. I}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 n this regard it is important to bear in min
d that Taakoka is a development company and that it expended considerable money before December 2003 in preparing for the development of a tourist resort on the land and implementing some of that}{
\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
development. Its major liabilities are the advances of shareholders made for that purpose. Also, its major asset is a lessee interest in the land, which in 1999 was}{\fs24\lang2057\langfe1033\langnp2057\insrsid16665940\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid11030287\charrsid13444835 valued at $8}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 95,000. Mr Lyon has made substantial financial contribution to Taakoka and I am
 satisfied that if relief against forfeiture is granted Mr Lyon will}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
continue financial support by making further advances. I consider that it is highly likely that if relief }{\fs24\lang2057\langfe1033\langnp2057\insrsid11030287\charrsid13444835 against forfeiture is granted Ta}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 akoka will continue to receive financial support which will enable it to meet its ongoing rent, revenue and other obligations under the lease.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 
\par [72] I am}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  satisfied that Taakoka had adequate }{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 f}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10174837\charrsid13444835 u}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 nding}{\fs24\lang2057\langfe1033\langnp2057\insrsid10174837\charrsid13444835  in place to carry o}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ut the second stage of the development and indeed had taken appropriate steps to do so w
hen Mrs Tupangaia and Mr Moore intervened in December 2003 with the purported forfeiture, re-entry and taking of}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 possession. Had this not }{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 happened}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 it was very likely that the second stage of the development would have continued and}{\fs24\lang2057\langfe1033\langnp2057\insrsid1122622\charrsid13444835  have been completed before now.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  I am}{\fs24\lang2057\langfe1033\langnp2057\insrsid8867200\charrsid13444835  further satisfied that with Mr}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Lyon}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
s continued financial support it is highly likely that if relief against forfeiture is granted, Taakoka will continue with the development of a tourist resort on the land.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 
\par [73] Mr}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  David submitted that failure to build the promised resort is a breac}{\fs24\lang2057\langfe1033\langnp2057\insrsid5059911\charrsid13444835 h of an implied term in the lease}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  and that such a breach can be considered under either the Property Law Act or under the Court}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s equitable juris}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 diction. He submitted that a term should be implied }{
\fs24\lang2057\langfe1033\langnp2057\insrsid5059911\charrsid13444835 in the lease that the resort should be build within a }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
reasonable time and that the implied period should be five years from the date of entry into the lease.
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid12075966\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [74] }{\fs24\lang2057\langfe1033\langnp2057\insrsid10297919\charrsid13444835 In}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835  support of his submission M}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 r David referre}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 d to the judgment of Quilliam CJ}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  in }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Pa Ariki,}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  High Court}{
\fs24\lang2057\langfe1033\langnp2057\insrsid12917548\charrsid13444835  of the Cook Islands A.O}{\fs24\lang2057\langfe1033\langnp2057\insrsid10297919\charrsid13444835 . No. 4/}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 97, 10 }{
\fs24\lang2057\langfe1033\langnp2057\insrsid10297919\charrsid13444835 November 19}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 97}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 
. In that judgment Quilliam CJ}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 made declarations that the lessee was in breach of its lease obligation to complete construction of a four-star resort and golf course (the Sheraton project) within three years from the }{
\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 commencement}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  of the lease. However, Quilliam C}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10297919\charrsid13444835 J}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 reached that decision by construction of the terms of the lease, which made specific provision for the completion of the hotel, and the fact that construction had started shortly }{\fs24\lang2057\langfe1033\langnp2057\insrsid10297919\charrsid13444835 a}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14953740\charrsid13444835 fter the lease was signed but h}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
ad stopped after the hotel was about 80% completed due to the insolvency of the first contractor and then the inability of the lessee to meet payments due under the second construction contract. The provisions of the Sheraton lease and the 
factual matrix of that case are so different from those in the present case as to make the judgment not relevant in deciding it.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 
\par [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 75]}{\fs24\lang2057\langfe1033\langnp2057\insrsid10713693\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8999814\charrsid13444835 It}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  is plain that when the lease was made all parties intended that Taakoka would use the }{\fs24\lang2057\langfe1033\langnp2057\insrsid8999814\charrsid13444835 
land as the site for building an}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
d operating a tourist resort. However, there was no term or covenant in the lease which required that Taakoka do that and particularly what that resort was to be and when it was to be com}{
\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 pleted. Furthermore, the circum}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 stances were such that in my view the 
conditions necessary to imply a contractual term that Taakoka would erect a tourist resort as designed by Mr de Roles, and do so within five years, are not satisfied - }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
BP Refinery (Western}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835  }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Port) Pty. Limited v Shire of Hastings}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  (1997) 16 ALR 36}{\fs24\lang2057\langfe1033\langnp2057\insrsid14492281\charrsid13444835 3(P}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 C); }{
\i\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 Devonport}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Borough Council v Robbins}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 [1979}{\fs24\lang2057\langfe1033\langnp2057\insrsid8999814\charrsid13444835 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  NZLR 1 (CA).
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 
\par [76]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Eve
n if there were a contractual obligation on Taakoka to construct a tourist resort on the land within a reasonable time I do not consider that there was a breach of such an obligation by Taakoka given the decision made by the directors who included, a}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14369937\charrsid13444835 t}{\fs24\lang2057\langfe1033\langnp2057\insrsid2497906\charrsid13444835  the time}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 , Mrs Tupangaia and her }{
\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 lawyer}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 Mr Taylor, not to proceed with the de Roles development plan but obtain another development plan from Mr Cook, the delays and expenses caused by Mrs Tupangaia}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s efforts to forfeit th}{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 e lease in 1995 and 1999 and the}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  difficulties in obtaining t}{\fs24\lang2057\langfe1033\langnp2057\insrsid2497906\charrsid13444835 h}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
e necessary development and building consents.
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 [77] Mr David submitted that the revocation of Taakoka}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 s foreign enterprise registration by the Development Board on 8 March 2004}{\fs24\lang2057\langfe1033\langnp2057\insrsid13918220\charrsid13444835  means that}{
\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835  Taakoka cannot carry on business in the Cook Islands and this disabling factor is a compelling objective fact.
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid12075966\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12075966\charrsid13444835 [78]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  However, it must be borne in mind that when the revocation decision was made Taakoka}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s interest in the land seemed to have been forfeited and it appeared to be no longer in possession 
of the land and able to continue with development on the land.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13973320\charrsid13444835 
\par [79]}{\fs24\lang2057\langfe1033\langnp2057\insrsid1845757\charrsid13444835  In responding to Mr}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Da}{\fs24\lang2057\langfe1033\langnp2057\insrsid13973320\charrsid13444835 vid}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid13973320\charrsid13444835 s submissions about deregistra}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
tion Mr Morley appropriately referred to the concluding statement in the Developm}{\fs24\lang2057\langfe1033\langnp2057\insrsid13973320\charrsid13444835 ent Investment Board}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid13973320\charrsid13444835 s letter of}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  12 May 2004 advising revocation that:
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13973320\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid13973320 {\fs24\lang2057\langfe1033\langnp2057\insrsid13973320\charrsid13444835 I}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
n considering the above decision, the }{\fs24\lang2057\langfe1033\langnp2057\insrsid1845757\charrsid13444835 B}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 oard of Director}{
\fs24\lang2057\langfe1033\langnp2057\insrsid1845757\charrsid13444835 s would like to advise Taakoka Is}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
land Villas Limited that it is welcome to submit a new foreign enterprise registration application at any time.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid13973320\charrsid13444835 
\par [80]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Mr Morley also referred to the affidavit evidence of Bret Gibson, a Solicitor Principal in Bro}{\fs24\lang2057\langfe1033\langnp2057\insrsid16266466\charrsid13444835 wn}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Gibson Harvey PC, that if Taakoka is successful in obtain}{\fs24\lang2057\langfe1033\langnp2057\insrsid16266466\charrsid13444835 ing relief then he would e}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 xpect that a new application for foreign enterprise registration would be immediately filed and then considered in accordance with the investment}{
\fs24\lang2057\langfe1033\langnp2057\insrsid13973320\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 code}{\fs24\lang2057\langfe1033\langnp2057\insrsid16266466\charrsid13444835 .}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Mr Gibson understood that the proposed development would not be}{\fs24\lang2057\langfe1033\langnp2057\insrsid13973320\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 inconsistent with the investment code as it currently stood. He said that even if the }{\fs24\lang2057\langfe1033\langnp2057\insrsid16266466\charrsid13444835 B}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 oard was not prepared to grant foreign
 enterprise registration for the purposes of completing the development that would not prevent Taakoka owning the land and that he would expect, as has been done in the past, that the Board would issue a}{
\fs24\lang2057\langfe1033\langnp2057\insrsid15555776\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 limited foreign enterprise registration for the purposes of enabling Taakoka to sell its interest in the land.

\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid13973320\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [81] I consider that the fact of deregistration is }{\fs24\lang2057\langfe1033\langnp2057\insrsid11731104\charrsid13444835 not}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  a sufficiently signifi}{\fs24\lang2057\langfe1033\langnp2057\insrsid13973320\charrsid13444835 cant factor }{\fs24\lang2057\langfe1033\langnp2057\insrsid11731104\charrsid13444835 to}{
\fs24\lang2057\langfe1033\langnp2057\insrsid13973320\charrsid13444835  warrant refusal t}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 o grant relief against forfeiture, as such deregistration was consequent }{
\fs24\lang2057\langfe1033\langnp2057\insrsid11731104\charrsid13444835 on Mrs Tupangaia}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11731104\charrsid13444835 s and Mr Moore}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s }{\fs24\lang2057\langfe1033\langnp2057\insrsid13973320\charrsid13444835 action}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  in purporting to forfeit the lease and Mr Moor}{\fs24\lang2057\langfe1033\langnp2057\insrsid11731104\charrsid13444835 e}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  then engineering a successful appli}{\fs24\lang2057\langfe1033\langnp2057\insrsid11731104\charrsid13444835 cation for deregistration. The B}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 oard has clearly left the door open for a fresh application for registration and should relief against forfeiture be granted then it is likely that in }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6183670\charrsid13444835 that}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  situ}{\fs24\lang2057\langfe1033\langnp2057\insrsid13973320\charrsid13444835 ation fresh registration will be}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  granted, although that of course is a matter for determination by the Board and not by this Court.
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8486059\charrsid13444835 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 82}{\fs24\lang2057\langfe1033\langnp2057\insrsid8486059\charrsid13444835 
] Mr David said that his submission that the }{\fs24\lang2057\langfe1033\langnp2057\insrsid8266619\charrsid13444835 B}{\fs24\lang2057\langfe1033\langnp2057\insrsid8486059\charrsid13444835 oard of }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8266619\charrsid13444835 D}{\fs24\lang2057\langfe1033\langnp2057\insrsid8486059\charrsid13444835 irectors of Taakoka as }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
properly identified, had not authorised the application for relief against }{\fs24\lang2057\langfe1033\langnp2057\insrsid8266619\charrsid13444835 forfeiture}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
, arose from the invalid nature of the }{\fs24\lang2057\langfe1033\langnp2057\insrsid8266619\charrsid13444835 sale }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 of shares by Mrs Tupangaia and Mr Te Pua upon }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8486059\charrsid13444835 which}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  the appointment of Mr Clark and Mr Lyon as directors, was based. He submitted that Taakoka was dysfunctional.

\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid8486059\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [83] Mr M}{\fs24\lang2057\langfe1033\langnp2057\insrsid16581578\charrsid13444835 orley}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16581578\charrsid13444835 s detailed submissions in}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 response directly and effectively countered these submissions. I find that decisive factors on this aspect are:
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8486059\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid8486059 {\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 i) As }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8486059\charrsid13444835 agreed}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  by Mr Taylor in cross-examination, the resignations of Mr Taylor and Mrs Tupang}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16581578\charrsid13444835 a}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
ia as directors of Taakoka became effective on the signing of the agreement for the sale and purchase of Mrs Tupangaia}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s shares }{\fs24\lang2057\langfe1033\langnp2057\insrsid16581578\charrsid13444835 o}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 n 27 November 2002.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid11800084 {\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid8486059 {\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
ii) That the acts of Mr Paru Tupangaia on 3 March 2004 as a purported director of Taakoka were invalid as Mrs Tupangaia did not purport to appoint him as her alternative director until 29 March 2004 and consequently Mr P}{
\fs24\lang2057\langfe1033\langnp2057\insrsid1906419\charrsid13444835 aru}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Tupangaia}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s purported appointment of Mr Moore as a casual director}{\fs24\lang2057\langfe1033\langnp2057\insrsid1906419\charrsid13444835  on 3 March 2004, was also invali}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 d.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid1906419 {\fs24\lang2057\langfe1033\langnp2057\insrsid1906419\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid11800084 {\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 (i}{\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835 
ii) The appointment of a casual}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  director could be made only by the directors, not by a director.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid11800084 {\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid11800084 {\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835 (iv) That even i}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 f Mr Paru Tupangaia}{\fs24\lang2057\langfe1033\langnp2057\insrsid6637295\charrsid13444835  and Mr Moore were directors of}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Taakoka on 3 March 2004 they, and particularly Mr Moore who was acting as agent for Mrs Tupangaia as a lessor, were obviously in a}{
\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
conflict of interest situation and the resolutions which they purported to pass were patently against the interests of Taakoka and in favour of Mrs Tupangaia and were made in breach of a dire}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6637295\charrsid13444835 c}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 tor}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s fiduciary duty.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid11800084 {\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid11800084 {\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835 (v) There was}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  }
{\fs24\lang2057\langfe1033\langnp2057\insrsid9331158\charrsid13444835 a }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 valid shareholders }{\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835 resolution}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  on 17 March 2004 confirming the appointment of Mr Clark as a di}{\fs24\lang2057\langfe1033\langnp2057\insrsid5507965\charrsid13444835 rector, appointing Mr Lyon as a}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  director and extinguishing any pos}{\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835 ition which Mrs Tupang}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9331158\charrsid13444835 aia,}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Mr Paru Tupangaia and Mr Moore then held as directors of Taakoka.
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid11800084 {\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid11800084\charrsid13444835 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6564107 {\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835 [84] }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
Such dysfunctionality as existed within Taakoka initial}{\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835 ly arose from the actions of Mrs Tupang}{\fs24\lang2057\langfe1033\langnp2057\insrsid15539298\charrsid13444835 
aia in seeking to forfeit the lease in 1995 and 1999 and this was}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  resolved by the purchase of her shares and those of Mr }{
\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835 Te}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  Pua in 20}{\fs24\lang2057\langfe1033\langnp2057\insrsid12589301\charrsid13444835 
02. Such further alleged dysfunc}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 tionality was created by Mr Moore in March 2004.
\par 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11800084\charrsid13444835 [85]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6700353\charrsid13444835 I}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  find that the relief proceeding was validly commenced and has been validly pursued by the appropriate directors of Taakoka with the authority and support of t}{
\fs24\lang2057\langfe1033\langnp2057\insrsid95834\charrsid13444835 he majority, at least, of the T}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 aako}{\fs24\lang2057\langfe1033\langnp2057\insrsid95834\charrsid13444835 ka}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  shareholders. Such dysfunctionality as existed or appeare
d to exist within Taakoka has been as the result of the actions of Mrs Tupangaia and Mr Moore and has been effectively countered by those who have real, legal and genuine concern for the welfare of Taakoka, being primarily Mr Lyon and Mr Clark}{
\fs24\lang2057\langfe1033\langnp2057\insrsid95834\charrsid13444835 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835 
\par [86]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  I mov
e on to consider the factors of whether the breach was inadvertent or deliberate, the conduct of the lessors, the gravity of the breach, damage to the lessors and proportionality. The only breach, and that on which the forfeiture was based, was failure to
 pay base rent of $7,500 on 1 September 2003. Taakoka was willing and ab}{\fs24\lang2057\langfe1033\langnp2057\insrsid4016662\charrsid13444835 le to make that payment and on }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
the date of purported }{\fs24\lang2057\langfe1033\langnp2057\insrsid2770232\charrsid13444835 forfeiture}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 was waiting to hear from Mrs Tupangaia about her preferred mode of payment. The breach was not deliberate.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835 
\par [87]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  The breach was not of significant gravity and had Mrs Tupangaia considered it to be so, she could have obtained p}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4592792\charrsid13444835 ayment within a matter of a day }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 or so by simply answering the query about }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4592792\charrsid13444835 how }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 the payment was to be made. It became clear in her cross-examination that
 Mrs Tupangaia was not concerned about the arrears of rent when she signed the notice of forfeiture and indeed before she signed it she did not ring Mr Taylor to see what the rental position }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4592792\charrsid13444835 was. There is strong evidential}{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
foundation for Mr Morley}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s submission that the condu}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835 ct of Mrs Tupangaia and her }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 agents left much to be desired, involving duplicity }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4592792\charrsid13444835 and manipulation to terminate }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Taakoka}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s lease for an ulterior purpose namely the benefits to be obtained from}{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4592792\charrsid13444835 leasing the land again.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4592792\charrsid13444835 The}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  evidence establishes that Mr Moore played a}{\fs24\lang2057\langfe1033\langnp2057\insrsid4592792\charrsid13444835 n}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  ac}{\fs24\lang2057\langfe1033\langnp2057\insrsid4592792\charrsid13444835 tive role in arr}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
anging and implementing the purported forfeiture, obtaining deregistration of Ta}{\fs24\lang2057\langfe1033\langnp2057\insrsid4592792\charrsid13444835 a}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 koka and atte}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4592792\charrsid13444835 mpting to disable Taakoka from }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
obtaining relief against forfeiture. There are considerable question marks about Mr Moore}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s motives and financial
}{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 interests in doing this. In cross-examination Mrs Tu}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4592792\charrsid13444835 pangaia said that she believed}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  that Mr Moore wo}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4592792\charrsid13444835 r}{\fs24\lang2057\langfe1033\langnp2057\insrsid4282909\charrsid13444835 ked}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 for Mr Crocombe but she was not aware of that at the time.}{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
However, it is unnecessary and inappropriate for me to make findings about Mr Moore}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
s motives and financial interests in this matt}{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835 er and I therefore do not do so.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par 
\par [88] So far as the conduct of the lessors is concerned, I go no further }{\fs24\lang2057\langfe1033\langnp2057\insrsid15743432\charrsid13444835 tha}{\fs24\lang2057\langfe1033\langnp2057\insrsid12868758\charrsid13444835 n}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  accepting the submission of Mr Morley and find that the evidence establishes that the conduct of Mrs T}{\fs24\lang2057\langfe1033\langnp2057\insrsid12868758\charrsid13444835 up}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 angaia and her agents in this case left much to be desired. There will be no legitimate damage to the landowners if relief against forfeiture is grante
d as I accept that Taakoka fully intends to pursue development of the land as}{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
soon as reasonably possible if relief is granted. The landowners did not obtain a significant difference in the terms of a re}{\fs24\lang2057\langfe1033\langnp2057\insrsid12868758\charrsid13444835 placement lease with Mr Crocombe}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 . Their only signific
ant loss will be failure to obtain a doubling up of consideration. The proportionality of loss suffered by Taakoka if relief is not granted, namely inability to use the land}{\fs24\lang2057\langfe1033\langnp2057\insrsid12868758\charrsid13444835 
, far outweighs any legitimate l}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 oss which would be suffered by the landowners}{\fs24\lang2057\langfe1033\langnp2057\insrsid8392427\charrsid13444835 .}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid9110505\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835 [89]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 Mr Morley made submissions about the legality of the purported forfeiture of the lease by Mrs Tupangaia. Mr David argued that Taakoka}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 s application for relief involved it accepting the forfeiture and re-entry as being valid. In support of that}{\fs24\lang2057\langfe1033\langnp2057\insrsid8392427\charrsid13444835  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 proposition Mr David referred to the decision of the NZ Court of Appeal in }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 A}{
\i\fs24\lang2057\langfe1033\langnp2057\insrsid8392427\charrsid13444835 m}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ity Inns Limited v R}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8392427\charrsid13444835 H & }{
\i\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 PL Papps Limited}{\fs24\lang2057\langfe1033\langnp2057\insrsid8392427\charrsid13444835  (1992) 2 NZ}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 ConvC 191, 371. However in}{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Amity}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  case the Court of Appeal stated that the steps taken by the lessee may have been aimed at achieving the earliest reinstatem}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8392427\charrsid13444835 ent}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  of p}{\fs24\lang2057\langfe1033\langnp2057\insrsid8392427\charrsid13444835 os}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 session, not as a communication of abandonment of claims for damages for wrongful re-entry. Therefore }{\fs24\lang2057\langfe1033\langnp2057\insrsid8392427\charrsid13444835 the}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  lessee could not be regarded as having abandoned the right to challenge the validity of the re-entry simply by filin
g and serving the application for relief against forfeiture. Whether Taakoka is to be regarded as having abandoned the right }{\fs24\lang2057\langfe1033\langnp2057\insrsid8392427\charrsid13444835 to}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  challenge the validity of the re-entry }{\fs24\lang2057\langfe1033\langnp2057\insrsid14159997\charrsid13444835 simply }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 by filing and pursuing the application for relief against forfeiture, is an issue which need not be decided unless and until it}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 is raised in a separate proceeding. The iss}{\fs24\lang2057\langfe1033\langnp2057\insrsid8392427\charrsid13444835 
ue}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  of wh}{\fs24\lang2057\langfe1033\langnp2057\insrsid8392427\charrsid13444835 ether}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 the purported forfeiture and re-entry was valid has not been considered
 and decided in determining the application for relief. The application has been considered and decided on the hypothesis that the purported forfeiture and re-entry was valid. That hypothesis may or may not be correct.
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid9110505\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [90] Having regard to the proceeding
s and the conduct of the parties and all the circumstances of the case, I find that it is appropriate to grant the application for relief against forfeiture, and I do so}{\fs24\lang2057\langfe1033\langnp2057\insrsid14162551\charrsid13444835 .}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835  The basic factors are that Taakoka was, and is, willing and a}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 ble to pay all outstandi
ng base rent and revenue payments and that none o}{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835 f the grounds put forward by Mrs Tupangaia}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 either singly or in combination, }{\fs24\lang2057\langfe1033\langnp2057\insrsid14162551\charrsid13444835 make}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  this an exceptional case i}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835 n which the conduct of Taakoka has been such as to in effect disqualify it from }{\fs24\lang2057\langfe1033\langnp2057\insrsid11619707\charrsid13444835 obta}{
\fs24\lang2057\langfe1033\langnp2057\insrsid12066860\charrsid13444835 ining relief against forfeiture. Taakoka is entitled to }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 forthwith re}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 enter the land and resume exercise of all of its rights as le}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4289524\charrsid13444835 ssee.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1644766\charrsid13444835 [91] The a}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 pplication to strike out was not pursued. It is dismissed.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835 
\par [92] Mr M}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 orley is to provide Mr David with a schedule of a}{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835 lleged outstanding base rent and}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  revenue payments within 28 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835 days of receiving this }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 judgment. If Mrs Tupangaia does not agree with all or any of the amounts stated in the schedule Mr David is to advise Mr Morley within 28 days of receivi}{
\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 ng the schedule. If counsel can}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 not then agree on the outstanding base rent and revenue payments leave is given fo}{
\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 r}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  memorand}{\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 a to be filed for determination}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  of outstanding }{\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 base rent and revenue payments}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  by me by consideration of the mem}{\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 oranda filed. If Mr David does not challenge the figures given}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  by Mr Morley within the stated time }{\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 t}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
hen all }{\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 outstanding base rental and revenue}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 payments not already paid into the High Court as advised by Mr Morley are to be paid into the Hi}{\fs24\lang2057\langfe1033\langnp2057\insrsid4264701\charrsid13444835 gh Court within 28 days of}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835  the }{\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 expiry of the}{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
 time for Mr David to advise disagreement.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9110505\charrsid13444835 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 Costs}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid4741816\charrsid13444835 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid7555711\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 [93] }{\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 
As Taakoka has succeeded in its application for relief against forfeiture and having regard to the conduct of the parties I consider that Mrs Tupa}{\fs24\lang2057\langfe1033\langnp2057\insrsid4741816\charrsid13444835 n}{
\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 gaia }{\fs24\lang2057\langfe1033\langnp2057\insrsid4741816\charrsid13444835 should }{\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 pay costs to 
Taakoka and I so order.}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6564107\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\highlight7\langnp2057\insrsid1324193\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 [94] If Taakoka pursues such cost}{\fs24\lang2057\langfe1033\langnp2057\insrsid9526092\charrsid13444835 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 
 then it is to file and serve a cost}{\fs24\lang2057\langfe1033\langnp2057\insrsid16449574\charrsid13444835 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 
 memorandum within 28 days of receiving this judgment. Mrs Tupangaia may then file and serve a costs memorandum in response within 28 days of receiving Taakoka}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570368\charrsid13444835 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 s costs}{\fs24\lang2057\langfe1033\langnp2057\insrsid6497841\charrsid13444835 
 memorandum. Taakoka can file a costs memorandum in reply within 28 days of receiving that memorandum. I will then decide costs in accordance with this judgment and by consideration of the costs memoranda filed.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid1324193\charrsid13444835 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6497841\charrsid13444835 
\par }\pard \qc \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid5716633 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid6497841\charrsid13444835 C M Nicholson J
\par }}