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{\*\generator Microsoft Word 10.0.6612;}{\info{\title IN THE HIGH COURT OF FIJI (AT SUVA)}{\author Amelia Rasovo}{\operator blake_r}{\creatim\yr2004\mo8\dy30\hr14\min46}{\revtim\yr2004\mo8\dy31\hr10\min29}{\printim\yr2002\mo3\dy6\hr11\min3}{\version3}
{\edmins3}{\nofpages6}{\nofwords2508}{\nofchars14298}{\*\company Judicial Department}{\nofcharsws16773}{\vern16389}}\widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\hyphcaps0\formshade\horzdoc\dghspace180\dgvspace180
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{\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 \fs20\lang1033\langfe5129\cgrid\langnp1033\langfenp5129 {\b\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
IN THE HIGH COURT OF FIJI}{\b\fs24\lang2057\langfe5129\langnp2057\insrsid4351589\charrsid4351589 
\par }{\b\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 (AT SUVA)
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 CIVIL ACTION NO. HBC 654 OF 1998S
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Between:
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\b\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 DARRELL E. LEE
\par }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Plaintiff
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 and
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\b\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 JOE LEE
\par }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Defendant
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
\par Plaintiff in Person
\par P. Knight for the Defendant
\par 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\b\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 JUDGMENT
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
\par This Action was begun by writ and Statement of Claim issued on 18 December 1998.
\par 
\par The Plaintiff is an attorney with law offices at Vancouver, Washington State, USA.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
He also has a number of other business interests.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 The Defendant is a businessman.
\par 
\par The Statement of Claim was followed by an amended Statement of Claim filed in March 1999.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
An amended Defence to the amended Statement of Claim was filed in August 1999.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
The progress of the proceedings was not helped by the Plaintiff\rquote s unfamiliarity with litigation procedures in Fiji, by the parties residency in the USA and by the appearance and then withdrawal of solicitors.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 There were several interlocutory applications and many affidavits, both in support and in opposition were filed.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Finally, however, a pre-trial conference was held between Counsel.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Some limited facts were agreed together with a bundle of documents.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Two issues were framed for determination.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 They are:
\par 
\par {\pntext\pard\plain\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 \hich\af0\dbch\af0\loch\f0 (a)\tab}}\pard \ql \fi-720\li1440\ri0\widctlpar{\*\pn \pnlvlbody\ilvl0\ls1\pnrnot0\pnlcltr\pnstart1\pnindent360\pnsp120\pnhang 
{\pntxtb (}{\pntxta )}}\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1440\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
Is the agreement signed by the Plaintiff and the Defendant and dated 24/25 December 1990 binding on both parties and enforceable by either party?;}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 and
\par {\pntext\pard\plain\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 \hich\af0\dbch\af0\loch\f0 (b)\tab}}\pard \ql \fi-720\li1440\ri0\widctlpar{\*\pn \pnlvlbody\ilvl0\ls1\pnrnot0\pnlcltr\pnstart1\pnindent360\pnsp120\pnhang 
{\pntxtb (}{\pntxta )}}\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin1440\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 If t
he answer to (a) is in the affirmative how is the Plaintiff to acquire his 40% shareholding in EMSL?
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
\par On 4, 5 & 6 April 2001 the Plaintiff testified.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
At the conclusion of the hearing on 6 April I saw Counsel for both parties in Chambers.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 I expressed cert
ain public policy concerns to which I will return.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 The proceedings were adjourned for continuation on 30 and 31 July.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 On 30 July Mr. Q.B. Bale who had hitherto been representing the Plaintiff withdrew.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 On 30 and 31 July and 1 August I heard the Defendant and his sole witness an accountant.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
At the conclusion of the evidence and following discussion with the Plaintiff and Mr. Knight it was agreed that written submissions would be filed.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Mr. Knight filed submissions on behalf of the Defendant on 10 September while the Plaintiff filed on 17 October.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 On 4 December I heard final argument from the Plaintiff and Mr. Knight.
\par 
\par The ghost at this particular banquet was that of Harold Wosepka, a businessman who died on 13 December 1990.
\par 
\par In October 1982 Wosep
ka, a US citizen, purchased Pacific Hotels and Developments Ltd a Fiji company which owned the land and buildings which then substantially comprised what may now be called Pacific Harbour and which some time later became Estate Management Services Ltd (EM
SL).}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 A copy of the agreement, disclosing a purchase price of F$600,000 is Exhibit 4.
\par 
\par According to an obituary published in what appears to be a newspaper called the Vancouver Metro/Northwest dated 14 December 1990 (Document 31 in the bundle of agreed docu
ments) Wosepka was in 1983 convicted of 18 counts of misapplying federal funds, 5 counts of mail fraud, 4 counts of wire fraud and one count of supplying a false statement to obtain US$1.96 million from the US Small Business Administration.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 He was sentenced to 10 years imprisonment.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 According to the obituary at the time of his death the US Government\rquote 
s position was that Wosepka still owed the Small Business Administration $2.5 million in restitution ordered in 1983.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
He was however free on bail pending an appeal against a reconviction following retrial after his first conviction had been set aside on appeal.
\par 
\par In his evidence the Plaintiff told me that he first became involved with Wosepka and the Pacific Harbour properties in late 1984 or early 1985.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 At that time Wosepka was the owner and manager of these properties which included an hotel, a golf course and some villas.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 According to the Plaintiff, Wosepka told him that he was in serious trouble having been convicted of a serious criminal offence.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 He needed a lawyer to help him with the Fiji operation.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
Thereafter the Plaintiff began working for Wosepka on a percentage basis.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
No contract between the Plaintiff and Wosepka was disclosed but Exhibits 1 & 2 reveal something of the nature of the business relationship between them.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 The Plaintiff travelled on a number of occasions to Fiji usually with Wosepka and assisted him in his attempts to find a buyer for the properties.
\par 
\par On several of these visits the Plaintiff also met the Defendant.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 During 1986 and 19
87 the Plaintiff met the Defendant two or three times and again two or three times during the next 2 or 3 years.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
According to the Plaintiff the Defendant and Wosepka had been business associates for some time and had both been involved with business colleges.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
\par 
\par The Defendant in his evidence confirmed this.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 He told me that he had owned over 50 business colleges during the years 1965 to 1993.
}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 What the Defendant did not confirm but what was not challenged either on his behalf was the Plaintiff\rquote s eviden
ce that he had understood from Wosepka that the Defendant\rquote s main involvement in the Fiji operation was to have \'93all the agreements made in his name\'94.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 This was because, according to the Plaintiff, the Pacific Harbour Properties had been bought with the mon
ey which had been embezzled by Wosepka and which the US Government was of course keen to trace.
\par 
\par That the properties were indeed eventually substantially held in the Defendant\rquote s name is not in dispute.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
The defendant himself told me that }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 {\field{\*\fldinst SYMBOL 97 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589  of the shares were put in his name in 1984 and that later on after he lent EMSL $600,000 the remaining }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
{\field{\*\fldinst SYMBOL 98 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589  were also transferred to him by way of security for the loan.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 While I w
as told a confusing story of holding companies in Vanuatu and other subsidiary companies of one kind or another the position today basically remains the same:}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 the legal ownership of such Pacific Harbour properties as have not been sold remains in the Defendant\rquote 
s name or in the name of companies owned by the Defendant (see also paragraph 3 of the Defendant\rquote s affidavit filed on 21 April 1999).}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 One of the principal companies sold by the defendant was Waikalou Developments Ltd.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 This was sold to the Plaintiff in 1994 (see document 75) and is the subject of other proceedings between the parties pending in this Court.
\par 
\par }\pard\plain \s15\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 \fs24\lang1033\langfe5129\cgrid\langnp1033\langfenp5129 {\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
In 1990 and while the appeal against his reconviction was still pending Wosepka was diagnosed with cancer of the brain.}{\lang2057\langfe5129\langnp2057\insrsid4351589  }{\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 By the year\rquote 
s ending it was apparent that he would shortly die.}{\lang2057\langfe5129\langnp2057\insrsid4351589  }{\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
According to the Plaintiff there then followed a number of meetings and discussions held to decide what should happen to the Fiji properties after Wosepka\rquote s death.}{\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 The Plaintiff told me that in November 1990 he met \tab Wosepka, the Defendant,}{\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Vinod Singh and Wosepka\rquote s wife and son in Hawaii.}{\lang2057\langfe5129\langnp2057\insrsid4351589  }{\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
Following that meeting at which the future of the operations in Fiji was discussed the Defendant went to Australia while the Plaintiff returned to Washington.
\par }\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 \fs20\lang1033\langfe5129\cgrid\langnp1033\langfenp5129 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
\par On 11 December 1990 the Plaintiff wrote to the Defendant (Document 28).}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 He advised the Defendant that Wosepka\rquote 
s condition had deteriorated, that he had given his power of attorney to his son and that he had authorised his name to be removed \'93from everything in Fiji\'94.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 On 14 December (Document 30) the Defendant wrote to the Plaintiff. He claimed out that he was owed $1.2 million from the Fiji operation \'93
which was the original agreement I had with Harold\'94.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 \'93In the light of the newspaper article we must move quickly.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Please discuss with the family how I can work with them to recoup my losses and protect my investment\'94.
\par 
\par On 21 December 1990 the Defendant again wrote to the Plaintiff (Document 32).}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
He explained that he had had further discussions with the Wosepka family who did not wish to have any further involvement with the Fiji project.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 He instructed the Plaintiff to \'93draft all necessary paper work to release the estate from any involvement in the Fiji}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 operation\'94.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 While the Defendant would be \'93more than glad
\'94 to see Wosepka\rquote s widow 
\par 
\par Josephine receive something he however foresaw \'93a problem there because of the Court action\'94.
\par 
\par On 24 December the Plaintiff replied.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 He advised the Defendant that he had prepared all necessary papers to have Wosepka\rquote 
s son removed as an officer and director.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
He had also prepared all the necessary papers for signature by Josephine Wosepka to acknowledge \'93that you own everything\'94.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
Importantly he enclosed \'93a confidential agreement to be known only by us. Sign a copy and send it back or make whatever changes are appropriate.\'94}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  The papers signed by}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589  Josephine Wosepka are documents 42 and 43.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
The confidential agreement is document 36-38 which, after amendment by the Defendant was signed as document 39-41 which is the agreement referred to in issue (a).
\par 
\par No more then a mere glance at Documents 42 and 43 is required for one to be satisfied that they are fundamentally false and misleading.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 The third paragraph of each document reads:
\par 
\par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 \'93this is to make it clear that my husband Harold Wosepka doe
s not and never did own or have any legal or equitable interest in any of the properties or corporations in the country of Fiji\'94.
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
\par Apart from these statements being contradicted by the oral and written evidence of both parties, Documents 42 and 43 are also inconsistent with Exhibit 4 and Documents 6 & 17.
\par 
\par It will be noted that Documents 42 and 43 both declare that the Fiji properties and other ancillary properties were owned by the Defendant.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 This assertion of ownership is in direct conflict with the second paragraph of the agreement under consideration (Document 39-41) which reads:
\par 
\par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 \'93the properties \'85
.. are hereby jointly owned forty percent (40%) by Darrell E. Lee and sixty percent (60%) by Joe Lee\'94.
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
\par The Plaintiff\rquote s case is that the agreement was declaratory of the beneficial ownership of the Fiji properties following Wosepka\rquote s death and was subsequently acknowledged accepted and acted upon by the Defendant.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Insofar as it required performance by the parties the Plaintiff discharged the obligations impose
d upon him but the Defendant in part did not.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
Although the Defendant did inject a further sum of US$50,000 as required by the agreement and although the Plaintiff was, as also required by the agreement, appointed a director of the various companies, no sh
ares were transferred to him, in other words his 40%}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 never actually legally became his own.
\par 
\par The Defendant\rquote s case is that the agreement was merely the skeletal outline of further relations between the parties.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
Although it is accepted that the Plaintiff became a director it is denied that the Plaintiff ever injected US$174,000 of his own funds as required by the agreement.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 While it is not disputed that US$174,000 was sent 
by the Plaintiff to EMSL the Defendant asserts that this money came from the Wosepka bail bond which was refunded after his death and that the bail bond originally came from the Defendant and was therefore not the Plaintiff\rquote s even though}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 it had moved from the Tacoma District Court into the Plaintiff\rquote s trust account.
\par 
\par The suggestion that the bail bond came from the Defendant was of course derisively rejected by the Plaintiff.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
It appears this was the bail bond over }{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589 which Wosepka had no \'93legal or e}{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 quitable interest or control\'94
 and which is mentioned in Document 42.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
According to the Plaintiff the original $500,000 although paid by the Defendant, did not come from the Defendant until after it had been given to him by Wosepka and was actually part of the monies which had been embezzled.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
In support of this suggestion the Plaintiff referred to Document 33 which appears to show proceeds of a partial repayment of the original bond being expended at Wosepka\rquote s direction.
\par 
\par By this stage of the narrative I hope three things will have become clear.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
First, both the Plaintiff and the Defendant were deeply involved in the processing of property which was directly or indirectly the proceeds of crime.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Secondly, both parties were involved in the preparation and offering of false legal documents.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Thirdly, this Court was only told a very small part of the whole story, much of which remains deliberately concealed.
\par 
\par As already mentioned, on 6 April 2001 I saw both Counsel then representing the parties and voiced my concern.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Ap
art from public policy concerns most neatly expressed in the maxims \'93ex turpi causa oritur non actio\'94 and \'93he who comes into equity must come with clean hands\'94
 I was also troubled by the consequence of any declaration of legal entitlement in favour of either party.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
Would not such a declaration have the effect of stamping the High Court of Fiji\rquote s seal of approval upon these transactions?
\par 
\par But there is another way of looking at the situation.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Is it not the case that the Wosepka embezzlement, never finally p
roved, happened many years ago?}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Are there not many innocent people now perfectly legally involved in the Pacific Harbour venture?}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Would a refusal by the Court to intervene by declaring legal entitlements not leave not only the relation between the partie
s but also many other interests in a sort of legal limbo?
\par 
\par In a postscript to his written submission the Plaintiff admitted and apologised for preparing a false document.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
He asserted that he had only become involved with Wosepka years after he had committed his crime.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
For the Court to decline to interfere now would effectively be to reward the Defendant since he would be allowed to retain his 100% shareholding in the properties despite the Plaintiff\rquote s entitlement.
\par 
\par I was, frankly, disappointed not to receive some assistance from Mr. Knight, as the sole remaining counsel, on this point after Mr. Bale had withdrawn.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 The Defence made no submissions on these difficulties at all and my own research did not prove enlightening.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 I must confess that I found it a difficult problem to resolve.
\par 
\par In his otherwise detailed and helpful written submissions Mr. Knight set out in detail a number of other reasons why the agreement should not be upheld.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 I did not find any of these reasons convincing.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
While the agreem
ent is undoubtedly somewhat vague and ambiguous, as are many agreements which come before the Court, it seems to me to be clear enough on the central point which is that at the moment of signing and subject only to the provision of cash contributions by t
he parties they were henceforth beneficially entitled to ownership of the named properties in the proportion of 40 to 60%.
\par 
\par The Plaintiff\rquote s unchallenged evidence was that the agreement itself was not questioned by the Defendant until the Plaintiff discovered certain alleged breaches of the agreement in about 1995.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 The Plaintiff\rquote 
s assertion on this point is corroboration by the preamble to document 68 and paragraph 5 of document 70 both of which were acknowledged by the Defendant in October 1994.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 It also receives support from paragraph 4 of}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
Document 76, apparently written by the Defendant in April 1995.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
Further support comes from the 60% ownership of the properties in question claimed by the Defendant in a personal statement of assets and liabilities filed by him on 15 May 1991 (Document 50).
\par 
\par Mr. Knight suggested that the manner in which the Plaintiff was to acquire the 40% or had already acquired it was unclear.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
While I agree I}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 am also of the opinion that this criticism not only applies to the Defendant\rquote 
s 60% also but that it is now far too late to raise as a defence, contradicted as it is by the plain declaratory words of the agreement.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 As to the $174,000 which the Defendant claims the Plaintiff never really sent, I prefer the Plaintiff\rquote s evidence.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 If indeed the Plaintiff had merely sent down $174,000 of the Defendant\rquote 
s money and had thereby purported to comply with the agreement one would have expected to find some contemporaneous complaint by the Defendant in the papers.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 A similar answer may be give
n to the suggestion that subsequent funds remitted by the Plaintiff were not to EMSL but were to Waikalou Developments Limited, the company which he later acquired.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 If, as suggested by Mr. Knight the agreement was not supposed to be binding and if the Def
endant did not accept that the Plaintiff had any stake in these companies then why was he appointed one of the three directors?
\par 
\par If the circumstances placed before the Court had not so plainly arisen from dishonest dealings then I should have had no hesitation in upholding the agreement and declaring it to be legally enforceable.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 In my view it was plainly intended to be a solemn and binding agreement between the pa
rties and was accepted as such and acted upon as such.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
Whether it was intended to be followed by a transfer of shares from the Defendant to the Plaintiff or to a Plaintiff\rquote s nominee I do not know.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 How the agreement could remain \'93strictly confidential\'94 and yet be publicly implemented is not at all clear.}{\fs24\lang2057\langfe5129\langnp2057\insrsid4351589  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 Because, however, I am not prepared to give the High Court of Fiji\rquote s approval to this agreement or 
the transactions which preceded it or followed it I decline to go any further towards answering the questions posed.
\par 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\b\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 M.D. Scott
\par Judge
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4351589 {\fs24\lang2057\langfe5129\langnp2057\insrsid4853252\charrsid4351589 
\par 7 March 2002
\par }}