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\qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid10356971 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid8408264 IN THE HIGH COURT OF THE COOK ISLANDS}{
\b\fs24\lang2057\langfe1033\langnp2057\insrsid10356971\charrsid8408264 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid8408264 HELD AT RAROTONGA
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid14906119 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid10356971\charrsid8408264 (CI}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid8408264 VIL DIVISION)}{
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid10356971 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 PLAINT NO:}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 11/2006}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid10356971 {\fs24\lang2057\langfe1033\langnp2057\insrsid14906119 BETWEEN}{\fs24\lang2057\langfe1033\langnp2057\insrsid14421086 :}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14906119 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid14906119 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid10356971 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid14906119\charrsid2255374 WILLIAM FRAMHEIN
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 of Rarotonga, Consultant
\par Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid14906119 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid10356971 {\fs24\lang2057\langfe1033\langnp2057\insrsid16676783 AND}{\fs24\lang2057\langfe1033\langnp2057\insrsid14421086 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid16676783 

\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid16676783\charrsid3104233 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid10356971 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid16676783\charrsid2255374 TEPAKI NOOA}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid14421086 P}{
\b\fs24\lang2057\langfe1033\langnp2057\insrsid16676783\charrsid2255374 II (TIM) TEPAKI
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 of Wellington, New Zealand, Property Developer Director
\par Defendant
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid3104233 {\fs24\lang2057\langfe1033\langnp2057\insrsid10428088 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 Mr Charles Little for Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid3482593\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 Mr Tevita Vakalalabure and (part only) Mr Norman George for Defendant}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9319626\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 Hearing: 25, 26, 27, 28 and 29 June 2007}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9319626\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 Decision: 29 June 2007}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9319626\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 Written reasons for decision: 4 July 2007}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9319626\charrsid3104233 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9319626 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid9319626 JUDGMENT OF FISHER J
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid3104233 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid11620227 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid9319626 Introduction
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9319626\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 1.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
The plaintiff claims $120,000 damages for alleged defamation by the defendant in two publications of the newspaper }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid14421086 Cook Islands News}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
. The passages in question were contained in the defendant's letter to the editor published on 9 December 2005 and in an article quoting the defendant published on 26 April 2006. The defendant admits the essentials of the claims but invokes the defences o
f fair comment and justification.}{\fs24\lang2057\langfe1033\langnp2057\insrsid12280665  He also denies some of the defam}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 atory meanings alleged by the plaintiff.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9319626\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 2.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid1380427 At the conclusion of the hearing on 29 June 2007 }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 I gave judgment for the plaintiff in the }{\fs24\lang2057\langfe1033\langnp2057\insrsid1380427 sum of $ 80,000 and awarded the }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 plaintiff costs recorded in a separate ruling. I}{\fs24\lang2057\langfe1033\langnp2057\insrsid1380427  indicate at the time that although the }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 reasons for decision had been dictated they}{\fs24\lang2057\langfe1033\langnp2057\insrsid1380427  would be provided to the parties as soon as was practicable thereafter. The reaso}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14421086 ns for the decision now follow}{\fs24\lang2057\langfe1033\langnp2057\insrsid1380427 . }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
\par 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid1380427 Factual Background}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8531962 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8531962\charrsid8531962 3.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10428088  }{\fs24\lang2057\langfe1033\langnp2057\insrsid14815315 
The defendant was a property developer operating through companies in New Zealand and the Cook Islands. His Cook Islands companies included Tepaki Investment}{\fs24\lang2057\langfe1033\langnp2057\insrsid11620227 s Ltd (\'93}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10428088 TIL\'94) and Tepaki Proper}{\fs24\lang2057\langfe1033\langnp2057\insrsid14815315 ties Ltd (\'93TPL\'94). He was a director and principal share holder of both. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8077740 It was common }{\fs24\lang2057\langfe1033\langnp2057\insrsid12978183 ground }{\fs24\lang2057\langfe1033\langnp2057\insrsid8077740 that he exercise}{\fs24\lang2057\langfe1033\langnp2057\insrsid14421086 d}
{\fs24\lang2057\langfe1033\langnp2057\insrsid8077740  de facto control over both companies and was their alter ego. }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5273338 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3738996 4. During 2004 the plaintiff was employed by the defendant an}{\fs24\lang2057\langfe1033\langnp2057\insrsid5339197 
d his companies in New Zealand. Towards the end of the year they agreed that the plaintiff would move in with his partner }{\fs24\lang2057\langfe1033\langnp2057\insrsid11220327 to the C}{\fs24\lang2057\langfe1033\langnp2057\insrsid13987269 
ook Islands to continue work for the defendant in two recently formed business}{\fs24\lang2057\langfe1033\langnp2057\insrsid14421086 es}{\fs24\lang2057\langfe1033\langnp2057\insrsid13987269  there incorporate}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14421086 d as TIL and TPL. The two formed}{\fs24\lang2057\langfe1033\langnp2057\insrsid13987269 
 part of the Tepaki Group which tended to be treated as one overarching business, albeit divided into various activities intended to be associated with particular companies. }{\fs24\lang2057\langfe1033\langnp2057\insrsid5273338\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
\par 5.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The plaintiff and his partner duly moved to the Cook Islands in December 
2004. The plaintiff was made director and company secretary of TIL but was the Cook Islands Manager of both TIL and TPL. As such he was given primary responsibility for}{\fs24\lang2057\langfe1033\langnp2057\insrsid14815116  managing both companies and }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 their financial affairs in the Cook Islands. This included being an authorised signatory of their cheque accounts.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14815116\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 6.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The }{
\fs24\lang2057\langfe1033\langnp2057\insrsid11220327\charrsid3104233 plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid11288690 \rquote }{\fs24\lang2057\langfe1033\langnp2057\insrsid11220327\charrsid3104233 s}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  partner was also made an employee of the Tepaki Group.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
The agreement they had with the defendant was that throughout their employment they would be paid salaries and would also be provided with free board. The two}{\fs24\lang2057\langfe1033\langnp2057\insrsid4729374  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 continued in their respective roles with the Group until they resigned nine months later on 2 September 2005.
\par 
\par 7.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 When the plaintiff and his partner arrived in the Cook Islands TIL and TPL were still at an embryonic stage.
 Essentially it was the plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid14421086 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
s brief to launch and promote their trading activities. This was complicated, however, by a severe cash shortage under which the Group operate}{\fs24\lang2057\langfe1033\langnp2057\insrsid11620227 d}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  during the nine months of the plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid14421086 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
s employment in the Cook Islands.
\par 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid12978183 8. The liquidity}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 problems had several consequences. One was that during the nine months they had with the Group the wages of the plaintiff and his partner were no}{\fs24\lang2057\langfe1033\langnp2057\insrsid11220327 t paid in any normal sense. The}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  second was that from time to time the plaintiff paid certain items on behalf of the Group. The third was that the plaintiff allowed so}{
\fs24\lang2057\langfe1033\langnp2057\insrsid5178385 me intermingling between the plainti}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 ff s financial affairs and those of the Group. This}{
\fs24\lang2057\langfe1033\langnp2057\insrsid11024780  included the plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid14421086 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11024780 s payment}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  of some of the Group's debts and also occasions on which Group cheques were use}{\fs24\lang2057\langfe1033\langnp2057\insrsid14421086 d}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 in whole or in part to }{\fs24\lang2057\langfe1033\langnp2057\insrsid9330850 pay for food, petrol and other }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 such items }{\fs24\lang2057\langfe1033\langnp2057\insrsid9330850\charrsid3104233 from}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 which the plaintiff and his partner benefited. Essentially these benefits were drawings in lieu of wages.
\par 
\par 9.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The liqui}{\fs24\lang2057\langfe1033\langnp2057\insrsid15285186 dity problems were com}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 bined with some rather amateurish bookkeeping and}{\fs24\lang2057\langfe1033\langnp2057\insrsid14160005  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
financial practices. In the real}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid14160005 w}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
orld this is probably common enough. However, the plaintif}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 f}{\fs24\lang2057\langfe1033\langnp2057\insrsid14421086 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
s approach of intermingling his financial affairs with those of the two companies w}{\fs24\lang2057\langfe1033\langnp2057\insrsid14160005 as less than ideal.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 In an ideal world his wages and those of his partner would have been regularly pa}{\fs24\lang2057\langfe1033\langnp2057\insrsid14421086 id}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
, whether in cash or by journal entry, if necessar}{\fs24\lang2057\langfe1033\langnp2057\insrsid16524710 y associated with simultaneous a}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
dvances by the plaintiff and his partner back to the company in question.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
Benefits derived by the plaintiff and his partner could then}{\fs24\lang2057\langfe1033\langnp2057\insrsid16284890  have been either paid by them d}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
irectly or debited against their advance accounts with }{\fs24\lang2057\langfe1033\langnp2057\insrsid16524710 the company.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16524710\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 10.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
On the other hand a full record was kept of all relevant transactions. This included the ex
tent to which the plaintiff and his partner were benefiting from some transactions in which one of the companies purchased goods or services from which the plaintiff and his partner benefited.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 In addition to primary documents, records were kept in the accounting system kept by the plaintiff in an accounting package on a Dell computer.
\par 
\par 11.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 This meant that at any given time it would always be possible to reconcile the state of accounts between the c
ompanies on the one hand and the plaintiff and his partner on the other. Essentially the reconciliation at that time would require a balancing between undrawn wages plus other payments which the plaintiff had incurred on the companies' behalf against any 
cash or other benefits received by the plaintiff and his partner on the other. The difference between the two could the}{\fs24\lang2057\langfe1033\langnp2057\insrsid11091171 n}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 be paid in cash. So in the long run there was no inherent reason why the intermingling and amateurish approach to bookkeeping would disadvantage either party.
\par 
\par 12.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 Another feature of the casual way in which the business was run involved the use of the companies' bank accounts}{
\fs24\lang2057\langfe1033\langnp2057\insrsid11091171 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  The official Tepaki Group policy, as recorded in documentation with the bank and at least one set of group minutes
 recorded on 29 August 2005, was that all cheques would bear two signatures. In fact for the last three months of the }{\fs24\lang2057\langfe1033\langnp2057\insrsid10582073\charrsid3104233 plaintiff\rquote s}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  employment cheques were often drawn using only the }{\fs24\lang2057\langfe1033\langnp2057\insrsid10582073\charrsid3104233 plaintif}{\fs24\lang2057\langfe1033\langnp2057\insrsid10582073 f
}{\fs24\lang2057\langfe1033\langnp2057\insrsid10582073\charrsid3104233 \rquote s}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  signature. In itself that does not seem to have mattered given 
that, with matching casualness, the bank always accepted all such cheques without insisting on a second signature.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10582073\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 13.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 Following unhappy differences between the plaintiff an}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3432084 d the defendant, the plaintiff }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 sent the defendant his resignation on 2 September 2
005, effective immediately. On the same day he faxed to the defendant, via the defendant's lawyer Mr Sparhawk, a full set of company account records. Despite some equivocation by the defendant on th}{\fs24\lang2057\langfe1033\langnp2057\insrsid11091171 
e point, I accept the plaintiff's}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  evidence that this included a full print out of the TI}{\fs24\lang2057\langfe1033\langnp2057\insrsid15562747 L and TPL cheque book registers}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  from his computer. It also included lists of creditors, a calculation of the wages due t}{\fs24\lang2057\langfe1033\langnp2057\insrsid11091171 o}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  the plaintiff and his partner totalling $24,800.00, and}{\fs24\lang2057\langfe1033\langnp2057\insrsid4028134  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
a list of the drawings by way of benefits derived direct from the companies for whic}{\fs24\lang2057\langfe1033\langnp2057\insrsid4028134 h }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 they would need to give credi}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4028134 t}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 . At that time these }{\fs24\lang2057\langfe1033\langnp2057\insrsid11037894 drawings were thought to total }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 $5,073 (all cents will be omitted). After deducting the value of the drawings from his}{\fs24\lang2057\langfe1033\langnp2057\insrsid11037894  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 calculation of }{\fs24\lang2057\langfe1033\langnp2057\insrsid3432084 unpaid wages the }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 plaintiff claim
ed the net sum of $19,726.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4028134\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 14.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
Two days later the plaintiff and his partner vacated the company property.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
On leaving, the plaintiff took with him the Dell computer and fax machine which he had been using in the business.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11037894\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 15.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid11037894 On receiving the fi}{
\fs24\lang2057\langfe1033\langnp2057\insrsid11037894\charrsid3104233 nancial}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  records and statement of accounts from the plaintiff, Mr}{
\fs24\lang2057\langfe1033\langnp2057\insrsid11037894  Sparhawk recalculated the sum}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 due to the plaintiff by way of wages at $12,785. He sent his calculation on to the defendant by email, commenting that the $12,785 "will need to be adjusted to reflect an}{\fs24\lang2057\langfe1033\langnp2057\insrsid11037894 y }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 drawings, purely personal expenditure for advances made to William [the plaintiff] by group companies and trusts over the period from}{
\fs24\lang2057\langfe1033\langnp2057\insrsid11037894  26/12/04 to 2/09/04\'94. }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11037894\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid8922118 16. }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid11274578 On 5 September 2005 the defendant forwarded the Sparhawk email to }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8922118\charrsid11274578 the }{\fs24\lang2057\langfe1033\langnp2057\insrsid8922118 plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid11274578  adding his ow
n comments. He referred to Mr Sparhawk's calculation of salary as $12,785 and commented "you and Eddie will now have to adjust this against funds}{\fs24\lang2057\langfe1033\langnp2057\insrsid11274578  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid11274578 you have drawn from TPL and TIL...". He criticised the plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid13266960 \rquote }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid11274578 s transfer of funds from TPL }{\fs24\lang2057\langfe1033\langnp2057\insrsid8922118 to}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid11274578  TIL}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6382851 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid11274578  He went on to make}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 various other criticisms but neither Mr Sparhawk nor the defendant criticised the fact that, as the plaintiffs records revealed, various drawings had been made in lieu of wages.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11561272\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 17.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The plaintiff replied the next day, 6 September 2005,
 rejecting the defendant's criticisms, essentially stating that everything he had done had been done with the knowledge and authority of the defendant. He also advised "I have taken the Dell}{\fs24\lang2057\langfe1033\langnp2057\insrsid16331938  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 computer and the fax machine and the value of the computer and fax machine can be}{\fs24\lang2057\langfe1033\langnp2057\insrsid16331938  deducted from the $19,726.30. I}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  calculate the value of the Dell to be $2,500 and the}{\fs24\lang2057\langfe1033\langnp2057\insrsid16331938  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8922118 
fax machine which I bought }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 and was reimbursed was $450.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
So you owe us $16,776.30".}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15222392\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 18.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
In an email of the same date (the precise order of these two emails being unclear) the}{\fs24\lang2057\langfe1033\langnp2057\insrsid2570649  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
defendant traversed various aspects of the argument between the two and stated "I understand you have claimed the Dell computer presented to me by ANZ Bank. You can keep it provided you allow our troops to dow}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8922118 nload information belonging to }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 Tepaki Group".}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid936853\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 19.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
The plaintiff duly arranged with TIL and TPL representatives in Rarotonga to download the Tepaki Group accounting information from the Dell Computer. He also met w}{\fs24\lang2057\langfe1033\langnp2057\insrsid6583074 ith the Group's accountant, Mr E}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 ddie Drollet, to go through the acco
unts in detail. In the course of doing so minor adjustments were made in various respects but the plaintiff s claim remained the same in its essentials. The plaintiff then produced a revised reconciliation in which the deduction for drawings was increased
 by $641 from $5,073 to $5,714 and an additional deduction of $2,500 was allowed for the Dell computer. The revised figures were conveyed to the defendant.
\par 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid6583074 20. When}{\fs24\lang2057\langfe1033\langnp2057\insrsid16413980  the defendant rejected}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  the
ir claims the plaintiff and his partner issued proceedings for unpaid wages less drawings. After amendments their claim was for unpaid wages at the rate of $800 per week ($29,600) plus sums paid by them on behalf of the compani}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10755762 es to Telecom ($3,263) and to Te}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 Aponga Uira ($287) less drawings in the form of payments made by the company to the benefit of the plaintiff and his partner ($5,714).
\par 
\par 21.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The plaintif}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 f}{\fs24\lang2057\langfe1033\langnp2057\insrsid16413980 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 s wage claim was reported in the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid16413980 Cook Island News}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  of 7 December 2005. The defendant responded in a letter to the editor published in the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid16413980 Cook Island News}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  of 9 December 2005. In the letter the defendant referred to the plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid16413980 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 s wage claim and went on to say:}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4052\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11620227 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 "Had you bothered to contact our office at Nikao you would have found out that a recent reco
nciliation by our accounts division sho}{\fs24\lang2057\langfe1033\langnp2057\insrsid16597795 w that William Fram}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
hein in fact owed some $3,000 to the group accounts and not the other way round, and transfers of funds have occurred under William's wat}{\fs24\lang2057\langfe1033\langnp2057\insrsid16597795 ch of the group accounts that am}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 ounts to fraud. As for the Dell computer he said he bought, that simply isn't true. The particular computer was gifted to the group by a Wellington bank for being a preferred customer.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11620227 {\fs24\lang2057\langfe1033\langnp2057\insrsid4052\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11620227 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
The disappointment for me is that I asked the Tepaki Group board meeting of 5 December, prior to my departure for New Zealand, that the debt owed by William be waived and the board refrain from handing their findings to the police."}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid3104233 {\fs24\lang2057\langfe1033\langnp2057\insrsid8731363\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10844144 22}{\fs24\lang2057\langfe1033\langnp2057\insrsid15996650 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid15996650\charrsid3104233  The}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid15996650\charrsid3104233 plaintiff\rquote s}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid15996650\charrsid3104233 solicitor wrote}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  to the defendant's solicitor alleging that the published letter was defamatory and se
eking a retraction failing which proceedings would be issued. The defendant rejected this request. Shortly after he gave an interview to a journalist from }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3488832 Cook Island News}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  which published the result in an article on 26 April 2006. The article contained a number of comments by the defendant upon the plaintif}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 f}{\fs24\lang2057\langfe1033\langnp2057\insrsid6447098 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
s threat of defamation action describing it as "attention seeking" predicting that the plaintiff would defame himself
 rather than the defendant, describing the defamation proceedings as a publicity stunt and concluding "if he wants to file for defamation anchored on the in}{\fs24\lang2057\langfe1033\langnp2057\insrsid7684682 formation we have supplied to CI}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  News to defend ourselves from his media outbursts let him, and let the}{\fs24\lang2057\langfe1033\langnp2057\insrsid4284298  courts decide who defamed who"}{
\fs24\lang2057\langfe1033\langnp2057\insrsid15562747 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid4284298\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16597795 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 23.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
The article also quoted the defendant in the following terms:}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5719233\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5719233 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 "Tepaki said there were irregularities and unexpected shortage of funds during Framhe
in's watch of the accounts, which could not be explained until Framhein left Tepaki Group, when new staff uncovered that he as a signatory to both accounts had moved money between the two accounts without the authority of a second signatory. In other word
s, cheques were signed by him alone, which breached the authorisation process lodged with the banks.
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid3104233 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12911128 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
He said he had not bothered to respond to Framhein's attention seeking through the media as the manner of his handling Tepaki Group's accounts had been placed in }{\fs24\lang2057\langfe1033\langnp2057\insrsid15562747 the hands of the police. Tepaki }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 said he has been told that the police now had the evidence they required from the banks, which should enable them to move forward, and that's where that matter sat for now.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid12911128\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12911128 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 Tepaki said Framhein was an enigma. He must
 have known when the police fingerprinted him and told him to hand in his passport on Friday 23 December 2005, only avoiding being jailed that day through the intervention of one of Tepaki Group's staff, that he had been snapped."}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid3104233 {\fs24\lang2057\langfe1033\langnp2057\insrsid12911128\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid7684682 24. Noting}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  the allegatio
n that the Police had apprehended him, the plaintiff obtained from the Cook Islands Police a letter of 3 May 2006 confirming that the Police never interviewed, charged, arrested or fingerprinted the plaintiff nor demanded his passport as alleged. The plai
ntiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid4402052 \rquote }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 s solicitors sent this to the defendant's solicitor along with a letter stating that the latest }{
\i\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid610656 Cook Island News }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
article was defamatory and asking for an apology and retraction. The defendant again refused any apology or retraction. The plaintiff then issued the present proceedings for defamation.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid610656\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 25.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The plaintiff}{
\fs24\lang2057\langfe1033\langnp2057\insrsid12465403 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 s wage claim came on for hearing in the High Court 
on 18 and 19 June 2007. In a judgment of 20 June 2007 Weston J found for the plaintiff and his partner. He held that each was entitled to wages at $800 per week (totalling $29,600) plus the two further items paid on behalf of the two companies ($3,263 and
 
$287) less the drawings from the company to benefit of the plaintiff and his partner ($5,714). He held that no further money was due to the companies for the Dell computer as the defendant had said in his email of 5 September 2005 that the plaintiff could
 
keep the computer so long as access was provided to extract relevant data. As the data had been downloaded, the condition was satisfied and no account had to be given by the plaintiff for the computer. In the result judgment was entered for the plaintiff 
and his partner in the su}{\fs24\lang2057\langfe1033\langnp2057\insrsid12465403 m}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  of $25,024 plus interest. The Judge held that }{\fs24\lang2057\langfe1033\langnp2057\insrsid1580318 
the actual employers had been TI}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 L and the defendant personally.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid489341\charrsid3104233 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid489341 Issues in the defamation proceedings
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid489341\charrsid489341 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 26.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The defamation proceedings originally involved the }{
\fs24\lang2057\langfe1033\langnp2057\insrsid10963284\charrsid3104233 plaintif}{\fs24\lang2057\langfe1033\langnp2057\insrsid10963284 f}{\fs24\lang2057\langfe1033\langnp2057\insrsid10963284\charrsid3104233 \rquote s}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  partner as a second plaintiff and another Tepa}{\fs24\lang2057\langfe1033\langnp2057\insrsid12465403 ki }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
Group director and the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid12465403 Cook Island News}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  as second and}{\fs24\lang2057\langfe1033\langnp2057\insrsid10963284  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 third defendants. As the proceedings progressed the parties were progressively pared down to the present plaintiff and defendant.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 

\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10963284\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 27.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
At a formal level the issues between the parties are identified in the third amended statement of claim filed on }{\fs24\lang2057\langfe1033\langnp2057\insrsid12465403 11}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 June 2007 and the second amended statement of defence filed on }{\fs24\lang2057\langfe1033\langnp2057\insrsid12465403 8}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 June 2007 (applied with all necessary modifications to the third amended statement of claim) as refined by agreement in my ruling of 26 June 2007.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8798764 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 28.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
In the result the prima facie essentials for the defamation claimed are commo}{\fs24\lang2057\langfe1033\langnp2057\insrsid12465403 n ground, namely the facts that:}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1585295\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11085635 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 (a)}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The words complained }{\fs24\lang2057\langfe1033\langnp2057\insrsid8798764 of were published in the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8798764\charrsid12465403 Cook I}{
\i\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid12465403 slands News }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 on the dates alleged.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid1585295\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11085635 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 (b)}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The plaintiff was identifiable as the subject of the criticisms made in the two publications.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid1585295\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11085635 {\fs24\lang2057\langfe1033\langnp2057\insrsid1585295 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 c)}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
It was the defendant who wrote the letter published on 9 December 2005 and who made the statements quoted in the publication of 26 April 2006.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid11085635\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11085635 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 (d)}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The extracts relied upon by the plaintiff were d}{\fs24\lang2057\langfe1033\langnp2057\insrsid11085635 efamatory of the plaintiff (see statement}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  of defence para 3).}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid11085635\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11085635 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 (e)}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The words complained of "meant and were understood to mean that the... plaintiff was a dishonest employ [sic] of the defendant" (statement of defence para 3).}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid11085635\charrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid3104233 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 29.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 As the prima facie ingredients of a cause of action for defamation
 are common ground the principal question is whether the defendant can escape liability by successfully relying upon an affirmative defence.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid865780\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 30.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
The only affirmative defence of consequence advanced by the defendant is justification.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The defendant alleges 
that when the plaintiff signed cheques from which he benefited to the extent of $5,714 he did so dishonestly in that he was drawing these cheques for his own personal benefit knowing that he had no right to do so.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The defendant also criticises the plaintif
f for using these cheques with one signature rather than two, and also for transferring funds from TPL to TIL, but in the}{\fs24\lang2057\langfe1033\langnp2057\insrsid16085594  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
end, as I understand it, those a}{\fs24\lang2057\langfe1033\langnp2057\insrsid12465403 r}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
e alleged to be merely the means by which the plaintiff dishonestly took funds to which he was not entitled rather than dishonesty per se.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7152477\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 31.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
Secondly, and independently, the defendant relies for its justification defence upon the allegation that the plaintif}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 f}{\fs24\lang2057\langfe1033\langnp2057\insrsid12465403 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 s removal of the Dell computer amounted to theft.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5063487\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 32.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 In his statement of defence the defenda
nt had also purported to rely upon the defence of fair comment on a matter of public interest.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
On a closer examination of the statement of defence, however, it was clear that this added nothing to the defence of justification since the particulars upon whi
ch the defendant relied were essentially allegations of fact. The sting of the publications lay in the express or implied factual allegations. There was little or nothing of significance by way of comment.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5063487\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 33.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The principal issues in the case are therefor
e whether the defendant can show that when the plaintiff made drawings from the companies totalling $5714, and/or when the plaintiff removed the Dell computer, the plaintiff was acting dishonestly. Further issues are whether the published words carry all 
the defamatory meanings alleged by the plaintiff and, if the plaintiff succeeds on liability, the assessment o}{\fs24\lang2057\langfe1033\langnp2057\insrsid2045324 f}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 damages. Of these issues, it will be convenient to begin with defamatory meanings.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16194277\charrsid3104233 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid5254425 Additional defamatory meanings
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16194277\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 34.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The meanin
gs to be taken from the letter published on 9 December 2005 must be derived from the particular words pleaded by the plaintiff, namely "...and transfers of funds have occurred under William's watch of the group account that amounts to fraud", albeit inter
preted in the wider context of the articles as a whole and the preceding article of 7 December 2005.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2631513\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 35.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
Similarly, the meaning to be taken from the article published on 26 April 2006 must be taken from the particular sentence:}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11038193\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid11038193 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 "...He must have known whe}{\fs24\lang2057\langfe1033\langnp2057\insrsid15956213 n
 the Police finger printed him}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  and told him to hand in his passport on Friday, 23 December 2005, only avoiding being jailed that day through the i}{
\fs24\lang2057\langfe1033\langnp2057\insrsid15956213 ntervention of one of the Tepaki}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  Group staff, that he had been snapped."}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 

\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid11038193\charrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid11038193 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 again interpreted in the wider context of the articles I have mentioned.
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid3104233 {\fs24\lang2057\langfe1033\langnp2057\insrsid2631513 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 36.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
The plaintiff alleges that in their natural and ordinary meaning the words complained}{\fs24\lang2057\langfe1033\langnp2057\insrsid12280665  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 of meant that the plaintiff was:}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7957978\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14489413 {\fs24\lang2057\langfe1033\langnp2057\insrsid9765854 \u8243\'3f}{\fs24\lang2057\langfe1033\langnp2057\insrsid9765854\charrsid3104233 (}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 i)}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 A dishonest person who is guilty o}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3818535 f}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  criminal dishonesty and breach of trust in handling company funds and company property;}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid7957978\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14489413 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 (ii)}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 A dishonest person who acted fraudulently whilst in the employ of the defendant; and}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid7957978\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14489413 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 (iii)}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 Guilty of theft.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid7957978\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14489413 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 (iv)}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 A criminal}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid7957978\charrsid3104233 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14489413 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 (v)}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 A person who engages in criminal behaviour."}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid9765854 {\fs24\lang2057\langfe1033\langnp2057\insrsid7957978\charrsid3104233 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid3104233 {\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 37.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
As indicated earlier, the defendant admitted that the words meant that the plaintiff "was a dishonest employee of the defendant" but this does not exactly match any of the meanings pleaded by the plaintiff and I will therefore take it t
hat the defendant rejects all five of the alleged meanings.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid354742\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 38.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
I accept Mr Vakalalabure's helpful submissions as to the test for the meanings to be extracted for present}{\fs24\lang2057\langfe1033\langnp2057\insrsid354742  purposes derived from }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid354742\charrsid13574899 
Lewis &}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid13574899  Anor v Daily Telegraph Ltd etc}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  [1963}{\fs24\lang2057\langfe1033\langnp2057\insrsid13574899 ] }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 2 All ER 151 (HL) at 155. The question is what the ordinary reasonable reader of the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid15956213 Cook Island News }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 would take from the published item.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid354742\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 39.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
The test does not involve any careful semantic or legalistic analysis. It is th}{\fs24\lang2057\langfe1033\langnp2057\insrsid12280665 e ordinary reader of the daily C}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
ook Islands newspaper that matters. In approaching this question I bear in mind that Rarotonga is a relatively small place, that the businesses and persons involved were relatively well known, and that a substantial body of readers would be capable of rem
embering the gist of the first article over the period of several months that separated it from the second.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1260440\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 40.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
Given the wider context I accept that the ordinary reader would take from the statement made on 9 December 2005 "...transfers of funds have occu
rred under William's watch of the group account that amounts to fraud" the meaning that while in the employ of the defendant and his companies the plaintiff was responsible for the fraudulent use of funds. I further accept that the ordinary reader would t
a
ke from the references to dealings with the Police in the article of 26 April 2006, coupled with the allegations that the plaintiff had been "snapped" and that this was of sufficient seriousness that, but for intervention by the defendant's staff, the pla
intiff would have}{\fs24\lang2057\langfe1033\langnp2057\insrsid4941728  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 been jailed, that the plaintiff had committed a crime in the course of his e}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4941728 mployment with the Tepaki Group.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4941728\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 41.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid12484090 I}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 further accept that the ordinary reader would understand the published words to have each of the meanings pleaded by the plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid15956213 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 Fraud is an example of "dishonesty". The references to the Police, jail an}{\fs24\lang2057\langfe1033\langnp2057\insrsid13574899 d "sn}{
\fs24\lang2057\langfe1033\langnp2057\insrsid15956213 apped" import criminality.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 I reject the argument that in this context "snapped" might be taken as a reference to police photography. I prefer Mr Little's submission tha
t in the context, the word "snapped" imports being caught red-handed in some form of behaviour that one should not engage in. "Employment" with the defendant is clearly the context. "Theft" is not quite so obvious but in my view the ordinary reader, seein
g
 the reference to transfer of funds in association with fraud, would be likely to conclude that in lay persons' terms there had been the theft of company money. It follows that the pleaded meanings (i) to (v) inclusive fall within the natural and ordinary
 meaning of the words complained of}{\fs24\lang2057\langfe1033\langnp2057\insrsid12280665 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2360245\charrsid3104233 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid2360245 The defence of justification
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid2360245\charrsid2360245 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 42.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
It is common ground that the onus of proving that the facts imported by the defamatory statements were true lies upon the defendant although truth in substance will suffice.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 It is criminal dishonesty that lies at the heart of the two particulars pleaded in}{\fs24\lang2057\langfe1033\langnp2057\insrsid7033431  justification }{
\fs24\lang2057\langfe1033\langnp2057\insrsid15956213 - }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 the fraudulent use of company cheques to take funds to which the plaintiff was not entitled and theft of the Dell computer.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5119218\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 43.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
Because criminal dishonesty lies at the heart of those two allegations I think it important to set to one side other potential criticisms of the plaintiff. This is not a case about carelessness, inefficiency, failure to follow instructions or amateurish b
ookkeeping. It is important to emphasise that at the outset because throughout the case the defence appears to have been distracted by such criticisms. The plaintiff has not sued over criticisms of that nature. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid15956213 He}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  has sued over allegations of criminal dishonesty.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5119218\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 44.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 An example was the }{
\fs24\lang2057\langfe1033\langnp2057\insrsid5119218\charrsid3104233 plaintiff\rquote s}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 use of cheques bearing one signature rather than two. There is a direct conflict between the plaintiff and the defendant as to whether the defendant specifically authorised the use of one signature alone.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 In that conflict I happen to prefer the evidence of the plaintiff for a number of reasons: there were}{
\fs24\lang2057\langfe1033\langnp2057\insrsid5119218  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
occasions when the defendant was with the plaintiff when cheques of that nature were used; the defendant was a "big picture" man who prided himself upon not being
 concerned with details; the defendant preferred that the plaintiff use the TPL cheque account rather the T}{\fs24\lang2057\langfe1033\langnp2057\insrsid6499589 I}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
L cheque account wherever possible and yet during the period June to September 2005 the plaintiff was the sole employed signatory authorised to sign such cheques; during that period the only other Tepaki Group employee or officer }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3285802 who had been authorised to sign}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 cheques on that account, Rosemary Fletcher, had left her employment with the Tepaki Group; if any cheques were to be signed at all during that period, the plaintiff was the only person authorised to do it; on the TPL account the only signatory othe}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16320864 r than the plaintiff in the Cook}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 Islands (the defendant himself was normally based in New Zealand), Mr Short, was not normally at the companies' offic
e, lived on the other side of Rarotonga, and was away from his home on building sites and in other places in the course of his work. The Group company policy that cheques would always bear two signatures was one of those rules which sounded good in theory
 
but was bound to fail in the real world. The plaintiff had no real incentive to spend valuable time chasing Mr Short around the countryside to obtain his signature to company cheques on the TIL account when the bank unfailingly demonstrated that it was co
ntent to meet cheques with only one signature.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5119218\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 45.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
None of that matters in the slightest, however, unless the use of one signature rather two was associated in some way with the fraudulent taking of funds to which the plaintiff was not entitled. Shorn of t
hat element, the use of one signature rather than two had no more significance than failing to abide by conventional bookkeeping practices, failing to put the correct postage on company envelopes, or exceeding the speed limit while using a company car.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13711612\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 46.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
It is also important to note that the use of cheques bearing one signature was not confined to the making of drawings in favour of the plaintiff or his partner. Cheques signed in that way were equally used for other legitimate company purposes such as pa
ying the companies' trade creditors. No complaint has been, or could be, made that the use of single signature cheques for legitimate company purposes was in some way dishonest.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13711612\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 47.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
I am bound to conclude that the time and energy devoted by the defendant to the}{\fs24\lang2057\langfe1033\langnp2057\insrsid1407443  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
subject of single or double signatures on cheques was misdirected.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The real target}{
\fs24\lang2057\langfe1033\langnp2057\insrsid13711612  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 had to be the use of company cheques for dishonest personal gain, not the number of signatures on the cheques for its own sake.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13711612\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13711612 48}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
In a similar category was the defendant's criticism of the transfer of funds between companies within the Tepaki Group. Again there is a dispute between the plaintiff and the defendant over whether the defendant had 
authorised transfers between TPL and TIL. But whether or not authorised, it could not be suggested that the transfer of funds between one Tepaki company and another was dishonest per se. The properly documented intra-group transfer of funds between compan
i
es forming part of the same group of companies is a standard practice. In the present case such transfers conferred no personal benefit on the plaintiff and caused no loss to the Tepaki companies. As with single or joint signatories, the practice could be
 of relevance for present purposes only if it provided the means by which the plaintiff was able to dishonestly take company money to which he was not entitled. Whether he did so remains the only real question.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8258939\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid8258939 49. A third distraction was criticism of the plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid6499589 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid8258939 
s approach to bookkeeping. The defendant criticised the way in which the plaintiff intermingled his personal affairs with those of the company. In this I have some sympathy with the defendant. There were ways in which the plaintiff could have bet
ter managed the company financial records. But it is important to remember that this not a case about standards of bookkeeping. It is a case about dishonesty.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8401293\charrsid8258939 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid8401293 When the plaintiff took benefits through the use of company cheques was he acting dishonestly?
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8401293\charrsid8401293 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid8258939 
50. 1t is common ground that, through the use of company cheques the plaintiff and his partner derived benefits to a total value of $5,714. The sole question for present purposes is whether the taking of those benefits was dishonest. The onus is on the de
fendant to prove that it was.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4342752\charrsid8258939 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8345671 51. I}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid8258939  am satisfied}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 that the defence has failed to establish either that the plaintiff was not entitled to the benefits he took or that in taking them he did so without any honest belief in his right to do so. In the end the defendant effectively admitted at le}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8345671 ast the first of those elements.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  In his evidence he did not challenge the }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8345671\charrsid3104233 plaintif}{\fs24\lang2057\langfe1033\langnp2057\insrsid8345671 f}{\fs24\lang2057\langfe1033\langnp2057\insrsid8345671\charrsid3104233 \rquote s}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  entitlement to the $5,714. The benefits were no more than drawings in lieu of the wages to which}{\fs24\lang2057\langfe1033\langnp2057\insrsid8401293  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 the plaintiff and his partner were entitled. The defendant also admitted that it was im
material to him whether the plaintiff took his wages in cash or in kind so long as the value of the benefits did not exceed the wages owed.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4342752\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 52.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
The defendant's evidence on this aspect was entirely consistent with the lack of any complaint over the drawing
s from the outset. Drawings in principle were anticipated by Mr Sparhawk in his email to the defendant on 5 September 2005 and in the defendant's email to the plaintiff on the following day.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The defendant's complaint has never been that the plaintiff was not entitled to take all or part of his wages in the form of benefits rath}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10829151 er than cash. The defendant's fun}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 damental complaint was that the plaintiff had overstated the wages due to him and his partner.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 On that dispute the defendant has by now lost before We
ston J. The defendant has allowed himself to be distracted by an aspect of signing of the cheques which had n}{\fs24\lang2057\langfe1033\langnp2057\insrsid6493933 othing to do with the plaintiff'}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 s honesty or lack of it.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid878676\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 53.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
It is also clear that the plaintiff thought he was entitled to take part of his remuneration by that means. He was perfectly open about the process. There was no attempt to conceal. The defence of justification under this heading fails.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid878676\charrsid3104233 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid7234981 When the plaintiff took the Dell computer was it theft?
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7234981\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 54.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 I accept that since the p
laintiff has alleged that one of the meanings to be derived from the impugned words was that the plaintiff was guilty of theft, without qualification, the defendant is entitled to justify, if he can, on the basis of theft in general. I accept that in prin
ciple he could rely upon theft of the Dell computer even though the meaning of which the plaintiff complained had been derived from the allegedly dishonest transfer of funds.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8401603\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 55.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 Much of the background
 is beyond dispute. It is clear that in late 2004 one of the defendant's companies owned a Dell computer;}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
that the plaintiff asked for a computer, saying that the plaintif}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 f}{\fs24\lang2057\langfe1033\langnp2057\insrsid6493933 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
s existing computer was too small to undertake the operations which would be requir}{\fs24\lang2057\langfe1033\langnp2057\insrsid1073957 ed in the C}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
ook Islands; that the defendant said that the plaintiff could take the Dell computer; that the plaintiff personally paid the duties arising from its importation into the Cook Islands; that during the nine months of his employment in the Cook Isl
ands the plaintiff used the computer to keep track of the accounts of TIL and TPL along with his personal computer requirements; that when}{\fs24\lang2057\langfe1033\langnp2057\insrsid8401603  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 the plaintiff left his employment in September 2005 he took the computer with him; that when he removed it the comput
er still had on it the financial records of TIL and TPL; and that at that time the Tepaki companies owed the plaintiff and his partner a substantial sum in unpaid wages.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8401603\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 56.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
It is against that background that the defendant alleges that the }{\fs24\lang2057\langfe1033\langnp2057\insrsid10125149\charrsid3104233 plaintiff\rquote s}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  rem
oval of the computer constituted theft. For present purposes "theft" is the act of fraudulently and without colour of right taking anything capable of being stolen with intent to deprive the owner permanently of such thing. It is complete when the object 
is moved with intent to deprive the owner permanently of it. "Colour of right" is an honest belief that the act is justifiable even though the belief may be based upon ignorance, mistake of fact, or any matter of law other than the law as to theft.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14363234\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 57.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The
 plaintiff says that when the defendant assigned the computer to him in late 2004 the plaintiff understood it to be a gift. The defendant denies this. I can see ample room for the two participants to come away from that meeting with a different constructi
on of the conversation as to the future ownership of the computer. Indeed it seems quite probable that neither party turned their mind to the point until recent events.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13590476\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 58.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
However it is not necessary to decide whether or not this was technically a gift because by 4 September 2005 events had moved on. By that stage the Tepaki companies owed the plaintiff a substantial sum in unpaid wages; the practice by which the plaint}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6493933 iff was taking some of his wage}{\fs24\lang2057\langfe1033\langnp2057\insrsid1407443  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
entitlement in kind rather than in cash was by then well-established, and, to the knowledge of both the plaintiff and the defendant there was a recent precedent in which another resigning Tepaki Group executive had been al}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6493933 lowed to take with her as a set-}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 off against unpaid wages the company computer which she ha
d been personally using. Like the plaintiff, Rosemary Fletcher had been an executive within the Tepaki Group and an authorised signatory of the TPL cheque account. She left in the first half of June 2005. When she left, the plaintiff proposed at a Tepaki 
G
roup board meeting that if she asked to keep the company laptop she be permitted to do so subject to removal of Tepaki Group details and information stored on it. The defendant responded that he did not mind whether or not she returned the laptop and went
 on to state "payment}{\fs24\lang2057\langfe1033\langnp2057\insrsid15676431  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
outstanding to Rosemary at $1,000 net per week since she started less amounts drawn by her, and less the sum paid out for laptop if she keeps it".}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15676431\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 59.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 For all those reasons I ac
cept that when he left the company the plaintiff was entitled to think that whatever the technical position might have been as to ownership, he would at least be entitled to take the Dell computer in part satisfaction of unpaid wages. In his email of 6 Se
ptember 2005 he explicitly said that he had taken the Dell computer. Indeed this must have been obvious to anyone entering the Tepaki office following his departure. There was no attempt at concealment.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15676431\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 60.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 In a curious reversal of roles at the time, the p
laintiff suggested in his email of 6 September 2005 that there be a deduction of $2,500 from his wages on account of the computer, while in the defendant's email at approximately the same time he said "you can keep it provided you allow our troops to down
load information belonging to Tepaki Group".}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15676431\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 61.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid738320 I}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 am inclined to think that in both of those emails the parties were offering concessions with a view to avoiding a potential dispute.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 What I am clear about, however, is that this could not possibly have been t}{\fs24\lang2057\langfe1033\langnp2057\insrsid5054664 heft. Theft would have required}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  knowledge on the }{\fs24\lang2057\langfe1033\langnp2057\insrsid14034134\charrsid3104233 plaintiff\rquote s}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 part that he was not entitled to remove the computer and a dishonest intention to permanently deprive the Tepaki companies of it. Given the histor}{\fs24\lang2057\langfe1033\langnp2057\insrsid15676431 y that the companies owed him a }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 substantial su
m in unpaid wages, that the companies had cash flow problems, that in the past wages had been met in part by taking equivalent benefits, and that there was a very recent precedent for including a personal computer in lieu of wages, the plaintiff would hav
e been astonished at the suggestion that by taking the computer he was stealing.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
One of the essential ingredients for theft is lack of an honest belief in the right to take the item. Th}{\fs24\lang2057\langfe1033\langnp2057\insrsid738320 e defendant has failed to show}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  the requisite dishonesty. The defence of justification under this heading therefore fails as well.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15676431\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 62.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
I mentioned earlier that the prima facie elements for an action for defamation were established. The defence rested upon justification. This having failed, liability is established. The next qu
estion is the damages which the defendant must pay the plaintiff.
\par 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid15352809 Damages
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15352809\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 63.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
The allegation that a businessman is dishonest, a thief, a fraudster and a criminal is one of the most serious forms of defamation that can be made. After being warned over the first defamatory publication, the defendant proceeded with a second one.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13570794\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 64.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The breadth of the publication was very wide.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 Wide publication is inherent in publication in a newspaper. Predictably, the d}{\fs24\lang2057\langfe1033\langnp2057\insrsid9122030 
amage then spread further by re}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 publication in other media including the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid9122030 Cook Islands Herald}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 , two internet websites, and Radio New Zealand.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13570794\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 65.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
The plaintiff has adduced convincing evidence of the damage to his reputation within his family, relatives, the wider community, and in the business community.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9122030\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 66.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
Within his family he was questioned whether the allegations were true, saw distancing from one of his close relatives inferentially as a result of the publications, and had to read in the }{
\i\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid6572354 Cook Island News}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  a letter from another branch of Framhein family distancing itself from the plaintiff.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9067788\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 67.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
Before the publication the plaintiff has started a consultancy business of his own offering services in business plan writing, finance brokering, property development facilitati}{\fs24\lang2057\langfe1033\langnp2057\insrsid738320 on, project manag
ement and land}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  acquisitions. I accept that in immeasurable ways the defamation would have harmed his image}{\fs24\lang2057\langfe1033\langnp2057\insrsid9067788 
 in a commercial context. His }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 bank, and others who came into contact in a business context asked questions about the allegations. It is not necessary 
for the plaintiff to prove damage to his business reputation in any tangible form. Damage to some degree can be inferred.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9067788\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 68.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 In addition to the damage to the }{
\fs24\lang2057\langfe1033\langnp2057\insrsid17854\charrsid3104233 plaintiff\rquote s}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  reputation he is entitled to compensation for the distress that he suffered as a res
ult of the publications and their repercussions. The nature of the defamations was serious and their publication wide. The claim to $80,000 by way of general damages was not irresponsible. I consider a reasonable assessment under this heading to be $60,00
0.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid17854\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 69.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
The plaintiff also claims aggravated damages of $40,000. The purpose of aggravated damages is to recognise exacerbation to the }{\fs24\lang2057\langfe1033\langnp2057\insrsid17854\charrsid3104233 plaintif}{\fs24\lang2057\langfe1033\langnp2057\insrsid17854 
f}{\fs24\lang2057\langfe1033\langnp2057\insrsid17854\charrsid3104233 \rquote s}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233  feelings due to the defendant's improper conduct in association with, and following, the defamations.

\par 
\par 70.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
In the present case the defendant was warned after the first publication but persisted in the second. The second publication formed part of an article in which the defendant repeated defiant dismissals of the plaintiff}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7473875 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 s threatened defamation action.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 The defendant reinforced the defamation in a Radio New Zealand interview on 26 April 2006 and in the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid7473875 Cook}{
\i\fs24\lang2057\langfe1033\langnp2057\insrsid7473875\charrsid7473875  I}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid7473875 slands Herald}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
 of 13 May 2006. He persisted in the allegations, and the details concerning the alleged encounter with the Police on 23 December 2005, notwithstanding his knowledge of a letter from the Police refuting those aspects.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid17854\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 71.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 
Again, the claim of $40,000 by way of aggravated damages could not be dismissed as irresponsible. I consider $20,000 to be suitable under this heading.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid17854\charrsid3104233 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid17854 Result
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid17854\charrsid3104233 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 72.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233  }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 There wil
l be judgment for the plaintiff in the total sum of $80,000 in damages for the publications on 9 December 2005 and 26 April 2006. In addition the d}{\fs24\lang2057\langfe1033\langnp2057\insrsid7473875 efendant must pay the plaintiff'}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 s costs}{\fs24\lang2057\langfe1033\langnp2057\insrsid4524239  which have been set at $10,383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid3104233 in a separate ruling.

\par 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1008896 {\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid1008896\charrsid7473875 Justice Robert Fisher}{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid3104233\charrsid7473875 

\par }}