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\par }\pard \s20\qc \li0\ri360\sl360\slmult1\widctlpar\tqc\tx4513\tqr\tx9026\aspalpha\aspnum\faauto\adjustright\rin360\lin0\itap0\pararsid9266095 {\insrsid9266095 \par }\pard \s20\qj \li0\ri0\sl360\slmult1\widctlpar\tqc\tx4513\tqr\tx9026\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid9266095 \par }}{\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6757691 \f179\fs24\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\b\f0\insrsid9266095\charrsid6757691 IN THE HIGH COURT OF THE COOK ISLANDS \par HELD AT RAROTONGA \par (CIVIL DIVISION) \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6757691 {\f0\insrsid9266095\charrsid6757691 \par }\pard\plain \s17\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \b\caps\f179\fs24\lang1024\langfe1024\cgrid\noproof\langnp5129\langfenp5129 {\b0\f0\lang2057\noproof0\langnp2057\insrsid9266095\charrsid2506071 PLAINT NO. 25/2010 \par }\pard\plain \qj \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs24\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\f0\insrsid9266095\charrsid2506071 \par }\pard\plain \s22\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs24\lang5129\langfe5129\cgrid\langnp5129\langfenp5129 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 BETWEEN \par }\pard \s22\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard \s22\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 TEPAKI NOOAPII TEPAKI \par }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Plaintiff \par }\pard \s22\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard \s22\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 AND \par }\pard \s22\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard \s22\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 RAROTONGA RESORTS MANAGEMENT LIMITED \par }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 First Defendant \par \par AND \par }\pard \s22\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard \s22\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 ROBIN EGGLETON \par }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Second Defendant \par }\pard \s22\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard \s22\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 AND \par }\pard \s22\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard \s22\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 KIM EGGLETON \par }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Third Defendant \par }\pard \s22\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard \s22\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 AND \par }\pard \s22\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard \s22\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 ANNE MARY BOYS \par }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Fourth Defendant \par }\pard \s22\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard \s22\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 AND \par \par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 MICHAEL INNES JONES \par }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Fifth Defendant \par }\pard \s22\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard \s22\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 AND \par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par STRATEGIC FINANCE LIMITED (In Receivership and Liquidation) \par }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Sixth Defendant \par }\pard \s22\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard \s22\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 AND \par }\pard \s22\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard \s22\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 DAVID SOMERFIELD \par }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Seventh Defendant \par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs24\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\f0\insrsid9266095\charrsid2506071 \par Hearing: 8 December 2010 \par \par Counsel: Plaintiff in person for First, Second, Third and Fourth Defendants \par \par Judgment: }{\f0\insrsid12208122\charrsid2506071 December }{\f0\insrsid9266095\charrsid2506071 2010 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid9266095\charrsid2506071 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\insrsid9266095\charrsid2506071 JUDGMENT OF GRICE J \par (i) Application to strike out by First, Second, Third and Fourth Defendants \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid9266095\charrsid2506071 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid9266095\charrsid2506071 Tepaki Nooapii Tepaki, Arorangi, Rarotonga \par Tim Arnold PC, Solicitors, Rarotonga \par C Little, Little & Matysik PC, Maraerenga, Avarua, Rarotonga \par }{\f0\ul\insrsid9266095\charrsid2506071 Copy}{\f0\insrsid9266095\charrsid2506071 : \par W Akel/BJ Upton, Simpson Grierson, Auckland, New Zealand \par \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid15011500\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [1]\tab}}\pard\plain \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs24\lang5129\langfe5129\cgrid\langnp5129\langfenp5129 {\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 Mr }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Tepaki is involved in various Hotel or Resort developments. His business interests have turned sour. He is facing financial ruin. This case concerns three of the developments. These are Lagoon Lodges Villas and Bungalows (Lagoon), Castaway Beach Villas (C astaway) and Manuia Beach Boutique Hotel (Manuia). These are owned by Tepaki 5 Holdings Limited (In Receivership) (T5H), Tepaki 6 Holdings Limited (In Receivership) (T6H), and Tepaki 7 Holdings Limited (T7H). Mr\~ Tepaki is the majority shareholder and direct or of the companies and the controlling mind behind the developments. A fourth Hotel, Manea Beach Villas acquired by Tepaki Holdings Limited (In receivership), is referred to in the claim but is apparently the subject of separate litigation, although it i s referred to in the statement of claim. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [2]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Lagoon, Castaway and Manuia resorts were structured as Unit Titles under the Unit Titles Act\~2005. This involved the appointment of a Body Corporate for each Hotel. Mr\~ Tepaki is the Chairman of the Bodies Corpor ate. Initially he appointed his own management entity, Kia Manuia Management Limited (Kia Manuia) as the leasehold manager for the Hotels. The leasehold manager was to manage the Unit Title leases on behalf of the owner. Mr\~ Tepaki also appointed a manageme nt company, Kia Orana Management Limited (Kia Orana Management) as the Hotel Operator to operate the Resorts. This was later replaced by the First Defendant, Rarotonga Resorts Management Limited (RRM), with the agreement of Mr\~Tepaki. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [3]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Third party inve stors purchased interests in the separate Units and through the Unit Title structure had various rights to buy, sell and receive income proportionate to their interests. The Second, Third and Fourth Defendants are investors. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid15011500\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [4]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 On 20 }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 May}{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 2008 Mr }{ \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Tepaki appointed the First Defendant, Rarotonga Resorts Management Limited (RRM) as a Hotel Operator replacing Kia Orana Management. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [5]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The Sixth Defendant, Strategic Finance Limited (In Liquidation) (Strategic Finance), is a New Zealand finance company. It }{ \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 was put into receivership on 12 March }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 2010, and into liquidation on 26}{ \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 July }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 2010. It called up its loans to T5H, T6H and T7H and pl}{ \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 aced them in Receivership on 19 August }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 2010. The Receiver is the Fifth Defendant, Michael Innes-Jones (Mr Innes-Jones). \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The Plaintiff's approach \par \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [6]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Strategic Finance provided finance for the developments of all the Hotels. Mr\~ Tepaki says the loans for Lagoon and Castaway have been repaid. The balance loan for Manuia, he says, remains outstanding at approximately $4.4\~million (para 151 of the statement of claim). \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [7]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Paragraph 7 of the statement of claim reads: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid15011500 \f179\fs24\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\f0\insrsid9266095\charrsid2506071 That the Plaintiff also mean [sic] T5H, T6H and T7H where relevant in this proceeding. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid9266095\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [8]\tab}}\pard\plain \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs24\lang5129\langfe5129\cgrid\langnp5129\langfenp5129 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 T}{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 his apparently seeks to make Mr }{ \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Tepaki's personal interes t interchangeable with those of his companies who are not parties to the proceedings and present in receivership. For the causes of action disclosed by the statement of claim to survive, the causes of action in the c}{ \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 laim must be those for which Mr }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Tepaki p ersonally has a right to pursue. If a cause of action is disclosed in the proceedings and it accrues to the companies only the action cannot succeed. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid15011500\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [9]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 Mr }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Tepaki claims that he has personally lost millions of dollars as a result of Strategic Finance put ting his companies into receivership. He also disputes his liability under a guarantee of the indebtedness by the companies to Strategic Finance. He disputes the amount that Strategic Finance says was owing on the loans, and he says the Receiver has wrong ly been appointed because the moneys were not owing under the various security documents pursuant to which the Receiver was appointed. }{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 Mr }{ \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Tepaki disputes the security arrangements which include cross-guarantees and securities between the companies. The pres ent proceedings do not seek any remedies in relation to the appointment of the Receiver. Nor do they relate to the enforceability of the various guarantees and loans b}{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 etween Strategic Finance and Mr }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Tepaki. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [10]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Strategic Finance claims the amount outstan ding by virtue of various loans and guarantees and cross-securities to various Tepaki related entities for which T5H, T6H and T7H are liable amount to approximately $33\~million. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [11]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The Receiver of Strategic Finance, John Howard Ross Fisk, swore an affid avit in this matter in which he deposed that the likely distribution to unsecured creditors in Strategic Finance is zero (para\~20 of the affidavit of John Fisk dated 21\~October\~2010). \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [12]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Strategic Finance held no securities over the management companies, including the First Defendant, RRM. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [13]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The present application is an application brought by the First, Second and Third Defendants to strike out the Plaintiff's statement of claim on the grounds that: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 \f179\fs24\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\f0\insrsid9266095\charrsid2506071 Insofar as the First and Fourth Defendants are concerned no reasonable cause of action against them is disclosed in the proceedings. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid9266095\charrsid2506071 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 Insofar as the Second Defendant is concerned: \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid9266095\charrsid2506071 \par }\pard \ql \li1440\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 (a) He was at all times a paid employee of the First Defendant; and \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li1440\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 (b) No reasonable cause of action against him personally is disclosed in the proceedings. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 Insofar as the Third Defendant is concerned, no reasonable cause of action against her personally is disclosed in the proceedings. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard\plain \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs24\lang5129\langfe5129\cgrid\langnp5129\langfenp5129 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Approach of the Plaintiff \par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [14]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 T he Plaintiff is self-represented. He was courteous to the Court and responsive to questions. No doubt he was genuine in his desire to assist, but was not able to properly articulate either in his documentation or oral submissions claims which corresponded with legal rules. The statement of claim is essentially a narrative containing allegations of fact, comment, and conjecture. The Plaintiff has thrown all the facts and allegations at the Court and asked that the Court investigate. There is no attempt to i solate causes of action or to relate the claim for damages of $66\~million to the causes of action or causation. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [15]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 At the outset of his submissions Mr\~Tepaki indicated that he was pursuing a conspiracy and he wanted the Court to unravel it. In a related application to strike out brought by the other Defendants, he asked the Court to appoint an administrator to replace the Receivers, and to take over and sort this out. In his submissions, which were wide ranging rather than focused on the application at hand, he isolated the following as demonstrating the conspiracy: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \f3\lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 RRM breached a contract (the Administration Agreement, which is referred to later) for the operation of the Hotels. The Operator failed and did not pay various amounts, including $1\~ million to Mr\~Tepaki, which led to a $2.5\~million increase in indebtedness to Strategic Finance. This in turn led ultimately to the receivership and the loss of a substantial amount of money by Mr\~ Tepaki. The amount claimed in the statement of claim totals $66.4\~million or $66\~million (the amount varies between the words and the figures). \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \f3\lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Other investors in the Hotel development, including the Second, Third and Fourth Defendants, asked him for a transfer of the leasehold interest (held by Kia Manuia). }{ \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 Mr }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Tepaki refused to transfer this to them and he alleges their request as part of the conspiracy and demonstrates fraud. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \f3\lang2057\langfe5129\langnp2057\langfenp5129\insrsid15011500\charrsid2506071 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 Mr }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Enoka, the Chief Executive of the original Hotel management company, Kia Orana Management, which had been established by Mr\~ Tepaki, was involved with the investors conspiring to breach the original Kia Orana Management Agreement by transferring the management of the Hotels to a new company. This ultimately occurred when RRM took over the management of the Hotel pursuant to the Administration Agreement. This arrangement was agreed to by Mr\~Tepaki. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \f3\lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 RRM is trading while insolvent. Therefore its directors are personally liable. The Second and Third Defendants are directors of RRM. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \f3\lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 This is a conspiracy of immense proportions that only a Court hearing can unravel. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \f3\lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 He has suffered a great injustice for which someone is responsible. He is not sure whether it is the investors or the Receivers who are responsible for this injustice. He throws himself on the mercy of the Court with an expectation that the Court will sort it out. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [16]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Mr\~Tepaki did not even attempt to provide any assistance to the Court in isolating the relevant causes of action which he wishes to pursue. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [17]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 He emphasised both in his oral submissions and in his statement of claim that he wants the Court to investigate and do justice. In his statement of claim he says: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 \f179\fs24\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\f0\insrsid9266095\charrsid2506071 1. THAT the Plaintiff is not a lawyer and is forced to represent himself in the absence of lawyers able to act. The Plaintiff is likely to err on matters of Court protocol and begs the Court's tolerance and forgiveness in that event; \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 \'85 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 3. THAT the Plaintiff humbly begs the Court's examination of the facts and seeks the Court's justice! [sic] \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [18]\tab}}\pard\plain \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs24\lang5129\langfe5129\cgrid\langnp5129\langfenp5129 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 In his Notice of Opposition, at para\~4, he puts the situation as: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 \f179\fs24\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\f0\insrsid9266095\charrsid2506071 4. It is not the Plaintiff's intention or his right to apportion blame and consequent share of redemption of losses and/or damages. It is consequently that all parties need to be party to this Court case for a proper investiga tion and discovery of the situation to be presented to the Court for resolution. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard\plain \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs24\lang5129\langfe5129\cgrid\langnp5129\langfenp5129 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The application for striking out \par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid15011500\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [19]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 Mr }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Arnold in support of the application for striking out approached the matter as follows: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 a)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 An examination of the statement of claim and supporting material in an attempt to isolate possible causes of action. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 b)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 An argument that it should have been T5H, T6H and T7H who were the Plaintiffs if there were causes of action available rather than Mr\~Tepaki personally. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 c)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 In the case of the Second and Third Defendants they were merely directors of RRM and are not personally liable. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 d)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 In the case of the Fourth Defendant, Anne Boys, a further investor, she was at best an unpaid employee of RRM, and accordingly it is RRM not her who should be the Defendant in any claim in relation to the hotel operations. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 No cause of action \par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [20]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The Defendants cited the recent decision of }{\i\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Tuake v Toeta & Anor}{ \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 .}{\cs25\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \chftn {\footnote \pard\plain \s24\qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs20\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\cs25\super\insrsid9266095 \chftn }{\insrsid9266095 }{\i\f1\insrsid9266095 Tuake v Tuakana Toeta & Anor}{\f1\insrsid9266095 , HC }{\f1\lang5129\langfe5129\langnp5129\insrsid9266095\charrsid11093206 Cook Islands}{\f1\insrsid9266095 , 13\~}{\f1\lang5129\langfe5129\langnp5129\insrsid9266095\charrsid11093206 September}{ \f1\insrsid9266095 \~2010, Plt No 11/2010, Hugh Williams\~J.}}}{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The Judge adopted the New Zealand approach to applications to strike out proceedings on the basis that they disclosed no reasonable cause of action. He stated: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 \f179\fs24\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\f0\insrsid9266095\charrsid2506071 [5] }{\f0\insrsid15011500\charrsid2506071 Rule } {\f0\insrsid9266095\charrsid2506071 131 of the Code of Civil Procedure of the High Court gives the Court power to strike out proceedings if they disclose no "reasonable cause of action". \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 [6] The body of law which governs applications to strike out is well settled. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 [7] Applicants to strike out proceedings on the basis they disclose no reasonable cause of action must show the pleading is so clearly untenable, where as a matter of law or incontrovertible fact, that it cannot possibly succeed. The jurisdiction is exercised sparingly and only in clear cases where the Court can reach a set t led conclusion. That applies even in complex cases. The hurdle to striking out proceedings is deliberately set high so as not to impinge on citizens' rights of access to the Court. Successful striking out proceedings are more often based on assertions tha t the claim is incapable of success as a matter of law rather than a matter of fact, because Courts, on striking out proceedings, do not and cannot embark on any consideration of disputed factual issues. Finally, if a proceeding can be satisfactorily amend ed, the Courts will almost always follow that course and give the party whose claim is under attack an opportunity to amend rather than the proceeding being struck out.}{\cs25\f0\insrsid9266095\charrsid2506071 \chftn {\footnote \pard\plain \s24\qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs20\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\cs25\super\insrsid9266095 \chftn }{\insrsid9266095 }{ \i\lang5129\langfe5129\langnp5129\insrsid9266095 Marshall Features Ltd (In Liq) v Marshall}{\lang5129\langfe5129\langnp5129\insrsid9266095 [1992] 1 NZLR 316.}}}{\f0\insrsid9266095\charrsid2506071 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [21]\tab}}\pard\plain \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs24\lang5129\langfe5129\cgrid\langnp5129\langfenp5129 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 In that case part of the claim and counterclaim was outside the limitation period. The pleadings could be amended to exclude the items of the claim and counterclaim that offended. The other ground was that some of the claims advanced in the counterclaim a ppeared to have no legal basis. Williams\~ J accepted that the claim might be amended as there possibly was a contract claim and claims in trust or equity law. The application for striking out was unsuccessful. A timetable Order was put in place to allow amendment of the pleadings. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [22]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Counsel for the Defendants urged me to take a more liberal approach to the threshold question. He referred me to English authority in which the Court weighed out the likely outcome of the case against the cost of a lengthy and expensive trial. The English Court of Appeal decision: }{\i\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Jameel (Yousef) v Dow Jones & Co. Inc.,}{\cs25\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \chftn {\footnote \pard\plain \s24\qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs20\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\cs25\super\insrsid9266095 \chftn }{\insrsid9266095 }{\i\f1\insrsid9266095 Jameel (Yousef) v Dow Jones & Co. Inc.}{\f1\insrsid9266095 [2005] QB 946 (CA).}}}{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 related to an application to strike out brought in defamation proceedings. The defamation had very limited publication. The Defendant applied to strike the claim out on the basis that the cost of the exercise would be out of all proportion to what was achieved.}{\cs25\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \chftn {\footnote \pard\plain \s24\qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs20\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\cs25\super\insrsid9266095 \chftn }{\insrsid9266095 }{ \lang5129\langfe5129\langnp5129\insrsid9266095 At p\~970, para\~69.}}}{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The Court of Appeal noted two recent developments which rendered it mo re likely to entertain such an application. The first was the introduction of new civil procedure rules in which pursuit of the overriding objective requires a more flexible and proactive approach. Secondly, was the application of the Human Rights Act\~ 1998 to defamation claims. Mr\~Akel argued that this more robust approach was particularly appropriate in the Cook Islands where there were scarce judicial and other resources. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [23]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 I propose following the well established approach outlined by Hugh Williams\~J in }{\i\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Tuake v Toeta & Anor}{ \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 . The English cases cited are peculiar to defamation and the particular rules in force in that jurisdiction. It may be that one day the Cook Islands will follow that course but it is not appropriate to move in that direction today. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [24]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 In addition, counsel for the Defendants argued that the proceedings: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 a)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 were prolix and in part unintelligible; \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 b)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 raised a relevant matter; \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 c)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 asserted matters with no factual foundation; \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 d)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 made broad allegations of fraud and illegality for which no particulars are provided; and \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 e)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 advanced a claim against Strategic Finance which was pointless because there could be no recovery for unsecured creditors. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid15011500\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [25]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 In relation to Mr }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Innes Jones it was also submitted that the alle}{ \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 gations were made contrary to r}{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 41}{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 of the Code of Civil Procedure}{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 1981, which provides: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 41.\tab}}\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid12404431 \f179\fs24\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\f0\insrsid9266095\charrsid2506071 Defendant interest in part of claim \endash It shall not be necessary that every Defendant to an action shall be interested as t the relief claimed, or as to every cause of action, but the Court may make any order that may appear just to prevent any Defendant from being embarrassed or put to expense by being required to attend any proceedings in which he has no interest. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [26]\tab}}\pard\plain \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs24\lang5129\langfe5129\cgrid\langnp5129\langfenp5129 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 To summarise, the Court approaching strike out application must consider the following criteria: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 a)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Assume pleaded facts are true: This is not to say that the truth of pleaded allegations should be accepted if they are entirely speculative and without foundation (}{ \i\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Collier v Pankhurst.}{\cs25\i\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \chftn {\footnote \pard\plain \s24\qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs20\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\cs25\super\insrsid9266095 \chftn }{\insrsid9266095 }{\i\f1\insrsid9266095 Collier v Pankhurst}{ \f1\insrsid9266095 6/9/99, CA 136/97 (cited at McGechan on Procedure }{\f1\lang5129\langfe5129\langnp5129\insrsid9266095\charrsid6430436 High Court}{\f1\insrsid9266095 Rules at para Hr 186.05).}}}{ \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 ) This is apposite in}{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 this case where counsel and Mr }{ \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Tepaki provided substantial material. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 b)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Causes of action are clearly untenable \endash they must be so clearly untenable they cannot possibly succeed. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 c)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The jurisdiction will only be exercised sparingly in a case where the Court is satisfied it has the requisite \endash tape cuts off. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [27]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 In addition, some useful observations from McGechan}{\cs25\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \chftn {\footnote \pard\plain \s24\qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs20\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\cs25\super\insrsid9266095 \chftn }{\insrsid9266095 }{ \lang5129\langfe5129\langnp5129\insrsid9266095 At para Hr 186.05.}}}{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 are: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \f3\lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Affidavits are admissible only if matters to which they refer are incontrovertible facts. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \f3\lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Challenges are not infrequently based on criticism of infelicitous pleadings not complying with the Rules rather than an assertion that the claim is clearly untenable. An opportunity to amend such pleadings will normally be given. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [28]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 In relation to the Court's jurisdiction to strike out for reasons other than their failure to discl ose a reasonable cause of action, which includes prejudice caused by the proceedings, frivolous or vexatious allegations or claims and abuse of process generally. Summary in McGechan is also helpful.}{ \cs25\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \chftn {\footnote \pard\plain \s24\qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs20\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\cs25\super\insrsid9266095 \chftn }{\insrsid9266095 }{\lang5129\langfe5129\langnp5129\insrsid9266095 At Hr 186.06.}}}{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The Applicant must show that the pleading in question not only prejudices, embarrasses or delays but carries overtones of impropriety. Subject to that the words are to be given a "liberal interpretation". Examples given in McGechan include: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 a)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Unnecessarily prolix pleading: }{\i\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Hill v Hunt Davis;}{ \cs25\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \chftn {\footnote \pard\plain \s24\qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs20\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\cs25\super\insrsid9266095 \chftn }{\insrsid9266095 }{\i\f1\insrsid9266095 Hill v Hunt Davis}{\f1\insrsid9266095 (1884) 26 CHD 470.}}}{ \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 b)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Proceedings which are both scandalous and irrelevant: I note that in }{\i\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Van Der Kapp v A-G}{ \cs25\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 \chftn {\footnote \pard\plain \s24\qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs20\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\cs25\super\insrsid9266095 \chftn }{\insrsid9266095 }{\i\f1\insrsid9266095 Van Der Kapp v A-G}{\f1\insrsid9266095 (1996) 10 PRNZ 162, Hammond\~J.}}}{ \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Hammond\~J dealing with a "lay litigant's diatribe" stayed the proceedings to afford an opportunity for the claim to be repleaded on terms. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 c)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The pleading is purely evidential material. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 d)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Unintelligible pleadings. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 e)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Pleadings containing irrelevant material. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [29]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 No objection was taken to the affidavit evidence of either side. It is unusual to have such extensive evidence, and much of it was of no assistance at all. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Tape commences:}{ \b\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [30]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The pleadings do not allege facts which would amount to a tortuous conspiracy, either an unlawful purpose conspiracy or an unlawful means conspiracy which I refer to in more detail below. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [31]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 At best in the confusion of the allegations it appears a cause of action based on breach of contract might be disclosed and possibly \endash tape cuts off \endash each hotel can engage a} {\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 n operator for that hotel (para }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 47). \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [32]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 It is pleaded that RRM "through its lawyer and the Sixth Defendant" attempted to coerce the Plaintiff to assign the Unit Title leases held by KNN on behalf of owners to it;" \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [33]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The Pla}{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 intiff refused to do this (para }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 69). It is then alleged that the request "amounts to fraud!". The heading on this}{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 section of the pleading (paras }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 67 to 71) is headed "Conspiracy to hold owners' leases". \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [34]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The allegation of fraud has no basis other than a request which was turned down. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [35]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The claim headed ""Conspiracy to hold owners' leases" must be struck out as disclosing no cause of action. In addition, it makes a serious allegation of fraud without a ny basis. The next allegation against the First Defendant is headed "Conspiracy by fellow owners". }{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 Paras }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 72 \endash 75 set out a}{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 claim which culminates at para }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 75 in an allegation as follows: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 \f179\fs24\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\f0\insrsid9266095\charrsid2506071 75. That fellow owners will not be part of this proceeding as they by and large are at distance from the collusion by the First and Sixth Defendants!}{\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard\plain \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs24\lang5129\langfe5129\cgrid\langnp5129\langfenp5129 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 This also makes an allegation of fraud against "fellow owners" who are not named. }{\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [36]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 This claim of collusion by the First and Sixth Defendants does not appear to disclose any cause of action against the First Defendant, and should be struck out. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [37]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Under the heading "Hotel operation" the pleading is that RRM was contracted to operate Lagoon, Castaway and Manuia as one as provided by the agreement in relation to administ ration of income of Resorts s}{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 igned by the parties in October }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 2008. }{ \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 (para }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 77 of the statement of claim). That agreement (the Administration Agreement) was exhibited to an affidavit filed in opposition to the }{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 application to strike out by Mr }{ \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Tepaki. However, the affidavit was illegible. Counsel did refer to the Administration Agreement and Mr\~Arnold had managed to decipher pa}{ \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 rts of it. It was clear that Mr }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Tepaki is a party to that agreement, albeit is only entitled to limited revenue rights under agreement. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [38]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The allegations in relation to the Administration Agreement in general terms are: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \f3\lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 RRM failing to meet revenue forecast (paras 79 and 80); \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \f3\lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 RRM mismanaging the operations (para 81); \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \f3\lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 RRM failing to file proper operational and financial }{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 reports and filing taxes (paras }{ \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 82 - 86); \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \f3\lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 An allegation of fraud because the First Defendant did not pay the full amount of revenue entitlements under the }{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 Administration Agreement (paras }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 89 and 90). \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \f3\lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Failure to pay taxes. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \f3\lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls5\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 An allegation that a provision in the Administration Agreement that indemnifies RRM against operational loss is negated by acts of fraud on the part of RRM and is therefore not applicable. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [39]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The facts pleaded do not give rise to, at best, a cause of action in breach of \endash tape c uts off - Paras 93, 94 and 95 allege RRM has breached the provisions of the Administration Agreement in the Body Corporate Rules. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [40]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Mr\~Tepaki has no standing to bring a claim under the Body Corporate Rules. There is no attempt to explain what standing he might have. Therefore, any claims about Body Corporate Rules for the claim about breach of the Body Corporate Rules discloses no cause of action (paras\~93 and 95) as they relate to the Body Corporate Rules are struck out. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [41]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 In a heading "Particulars of charges" which provides a summary in the statement of claim of the allegations against each Defendant under the heading "First Defendant" (paras 138-140) state: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 \f179\fs24\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\f0\insrsid9266095\charrsid2506071 138. THAT the First Defendant failed to perform and breached the Administration Agreement it signed by the BC and central to this proceeding.}{\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 139. THAT the First and Sixth Defendants conspired and colluded in the Sixth Defendant's conversion of the Plaintiff's assets; \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 140. THAT the First and Sixth Defendants colluded in arresting the BC operation and preventing the BC and owners from filing taxes.}{\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [42]\tab}}\pard\plain \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs24\lang5129\langfe5129\cgrid\langnp5129\langfenp5129 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The allegations made in the statement of claim (paras\~76 to 94) if properly pleaded disclose a cause of action based on con tract. There are no facts which give rise to allegations of fraud. Nor are there any facts which would give rise to tortuous conspiracy as a cause of action. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [43]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 However, bearing in mind the high threshold for strike out, I propose allowing the Defendant to attempt to amend the pleadings insofar as they relate to the claim against RRM based on a contractual cause of action. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [44]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 It is nearly impossible to pick through the present statement of claim, to identify the paragraphs which should remain. It will be for the Plaintiff replead the claim in that regard. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Second Defendant}{ \b\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [45]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Robert Eggleton is the Second Defendant. He is described as a director and a decision-maker at La}{\f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 goon, Castaway and Manuia (para }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 10). It is alleged that he conspired with the Chief Executive of the original management company, K}{ \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 ia Orana Management (KOM) (para }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 55). Neither the Chief Executive nor KOM are parties to this proceeding. }{ \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 Para }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 55 does not disclose the nature of the conspiracy. The conspiracy is also alleged to involve o ther investors who are not parties to this claim. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid15011500\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [46]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid15011500\charrsid2506071 At para }{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 57 the statement of claim refers to "conspiracy of immense proportion and laced with insider trading and collusions of embarrassing dynamics occurred". Again the conspirators involve the CEO o f KOM as well as a director of Tepaki Group in New Zealand, the representative of investors at Lagoon and Castaway, the Second Defendant and the loans manager for the Sixth Defendant. The nature of the conspiracy appears in general terms the First Defenda nt as Hotel Operator taking over management from KOM. The First Defendant was appointed by an agreement to which the Plaintiff was a party. The facts do not disclose any tortuous conspiracy for an unlawful object or purpose or by unlawful means. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [47]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The c onspiracy against the Second Defendant seems to be based on the fact that he was copied in on emails to "keep him informed" (para 61.2). The summary of the charges against the Second Defendant is under "Particulars of charges" and reads as follows: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 \f179\fs24\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\f0\insrsid9266095\charrsid2506071 Second and Third Defendants \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 141. THAT the Second and Third Defendants are the directors and accomplices of the First Defendant. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [48]\tab}}\pard\plain \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs24\lang5129\langfe5129\cgrid\langnp5129\langfenp5129 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The statement of claim does not allege any facts which would base a recognised cause of action for conspiracy by unlawful purpose or unlawful means against the Second Defendant. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [49]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 There is no cause of action available to the Plaintiff against the Second Defendant as a director of the First Defendant. An allegation as an "accomplice" takes the matter no further. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [50]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The claim against the Second Defendant is struck out as disclosing no cause of action. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Third Defendant \par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [51]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 This is a claim against Kim Eggleton, the wife of the Second Defendant. At para\~11 she is described as the other director of the First Defendant, RR M. The only other allegation against her appears to be at para\~141, which is under the summary clause, headed "Particulars of charges". It is pleaded she is a director and accomplice of the First Defendant. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [52]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 There is no cause of action available against her as a director of RRM. The claim against the Third Defendant is therefore struck out. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Fourth Defendant \par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [53]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The Fourth Defendant is Anne Boys. It is alleged she was appointed by the First Defendant (RRM) in May 2010 to take over as "decision-maker" at Lagoon, Castaway and Manuia (para\~12). \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [54]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 A reference is made to her husband (para\~24) as being an "owner". This does not take the claim against Mrs Boys any further. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [55]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Para\~118 alleges that she was appointed by RRM to operate the hotels as interim operator and director's representative. The allegation is as follows: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 \f179\fs24\lang2057\langfe5129\cgrid\langnp2057\langfenp5129 {\f0\insrsid9266095\charrsid2506071 118. THAT the First Defendant appointed the Fourth Defendant and business woman Anne Boys to operate the hotels as interim operator and director's representative. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 118.1 That she too has no knowledge of how to operate a hotel in the Cook Islands and operates by experimentation as well;}{\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 118.2 Th at she filed operational reports that if anything revealed the inadequacies of the First Defendant as operator; \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 118.3 That she too resisted filing financial reports requested by the Plaintiff as BC Chairman and only provided financial information via the Sixth Defendant, continuing the First Defendant's train of denying owners financial information; \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12404431 {\f0\insrsid9266095\charrsid2506071 118.4 That she requested the Plaintiff provide written permission for her to communicate directly with the Sixth Defendant and its receiver and when refused, she communicated directly regardless. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\f0\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [56]\tab}}\pard\plain \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 \f179\fs24\lang5129\langfe5129\cgrid\langnp5129\langfenp5129 {\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 At best this allegation is that she does not know how to operate a hotel and that she colluded with the Sixth Defendant and fellow owners. It is unclear as to what that collusion entailed. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [57]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 At para\~142, in the summaries headed "Particulars of charges" the allegation is that she is "an accomplice" of the First Defendant. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [58]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 There is no cause of action apparent from the facts pleaded against Mrs\~Boys. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [59]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The claim against the Fourth Defendant is struck out. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [60]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 I have therefore reached the conclusion that claims against the Second, Third and Fourth Defendants disclose no cause of action and should be struck out. In addition I find the claims in general t erms unnecessary prolix, irrelevant and allegations of fraud are unsupported and scandalous. The pleadings in many respects are unintelligible. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [61]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 It is only the disclosure of a cause of action, assuming the facts pleaded are true, based on contract aga inst the First Defendant that leads me to allow the statement of claim against the First Defendant to remain. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [62]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 The statement of claim needs to be radically amended. It is not for the Court to tell the Plaintiff how to do this. I propose following the same cause of action as Hammond\~J in }{ \i\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Van Der Kapp v A-G}{\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 and stay the proceedings to afford an opportunity for claims to be repleaded by the Plaintiff. The timetable for that repleading is as follows. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 General allegations }{ \b\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [63]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 There are a number of irrelevant pleadings and disclose no cause of action. These are not made specific?? and for completeness they are struck out: These are headed "The Conspiracy \endash paras 57 \endash \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [64]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Manea conspiracy \endash paras 62 to 63 refer to a claim in relation to another resort ca lled Manea. Para 63 says that "separate legal action is pending on this matter and will not be further mentioned in this proceeding!" \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [65]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 There is no attempt to tie the particulars of damages to any cause of action or any claim. There is just a general p rovision headed "Particulars of damages" and lists special damages as loss of equity and assets; loss of earnings by the Plaintiff which is based on projected revenue from the resorts; unpaid revenue which relates to revenue from investments; general dama ges for "embarrassment, ridicule and loss of credibility" and aggravated damages for the "malicious action of the Defendants towards the Plaintiff conspiring against him, defrauding him, ignoring his entitlements as owner". \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [66]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 It will be up the Plaintiff to properly plead his damages claim in the amended claim against the First Defendant. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Costs \par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 [67]\tab}}\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin0\itap0\pararsid9266095 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 As the First, Second, Third Defendants have been successful in the claim it is appropriate that costs be awarded in their favour. I seek submissions as to costs as follows: \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 a)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Submissions by each of the Defendants within three (3) days from the date of this Judgment; \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 b)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Submissions by the Plaintiff three (3) days after receipt of the submissions by each of the Defendants; \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par {\listtext\pard\plain\s18 \lang2057\langfe5129\langnp2057\langfenp5129\insrsid9266095\charrsid2506071 \hich\af0\dbch\af0\loch\f0 c)\tab}}\pard \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\ls1\ilvl1\adjustright\rin0\lin720\itap0\pararsid12404431 { \f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Submissions in reply by each of the Defendants two (2) days after receipt of the submissions by the Plaintiff's submissions. \par }\pard \s18\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9266095 {\b\f0\lang2057\langfe5129\langnp2057\insrsid12404431\charrsid2506071 \par }\pard \s18\qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12404431 {\b\f0\lang2057\langfe5129\langnp2057\insrsid9266095\charrsid2506071 Grice J \par }}