IN THE SUPREME COURT OF BELIZE A.D. 1999

Action No. 490

 

Between (ROSI RUBY SANCHEZ
PLAINTIFF
 

(
(
( And
(
(

  (FOREIGN BUSINESS
(INCORPORATED LIMITED
DEFENDANT

J. Courtenay for Applicant/Plaintiff
D. Barrow S.C. for Respondent/Defendant

J U D G M E N T

AWICH J:

Notes: Application to strike out defence, can affidavit be used? Sham defence, frivolous and vexatious defence, prejudice. Entering judgment upon striking out defence, O. 22 r31 and O. 28 r4.

On 12.4.2001 I heard application of Rosi Ruby Sanchez, the applicant/plaintiff, for court order to strike out defence in this action and enter judgment for him. I dismissed the application with costs and stated that I would file the reasons for my decision. These are the reasons.

On 15.12.1999 the applicant/plaintiff, had writ of summons issued against Foreign Business Incorporated Limited, the respondent/defendant. The writ of summons appears to have been specially indorsed. That was the view of the parties anyway. The indorsement was as follows:


"STATEMENT OF CLAIM

The Plaintiff's claim is for the sum of $51,045.00 for commission earned by her as agent for the plaintiff on (sic) the sale of real property.


PARTICULARS

8th July - 1999 sold parcel 17 and 18 in block 198 in the Santa Elena Section for $176,300 @ 15% $26,445.00
28th - September 1999 sold Parcel 29 in block 198 in Santa Elena Section for 164,000 @15% 24,600.00
  Total claim: $51,045.00


AND the Plaintiff claims: The sum of $51,045.00 and Costs

Place of Trial - Belize City"


The respondent entered appearance and filed an equally brief defence as follows:

"DEFENCE

  1. The Defendant denies that it employed the Plaintiff as its agent or agreed to pay her the alleged or any commission in and about the sale of its property as alleged in the Statement of Claim or at all.

  2. The Plaintiff was never the agent of the Defendant.

  3. The Plaintiff did not sell or procure a purchaser of any of the parcels of land referred to in the Statement of Claim.

  4. The Defendant denies that the properties referred to in the Statement of Claim were sold by it as a result of anything done by the Plaintiff and says that in any event the amount of commission claimed by the Plaintiff is excessive and unreasonable.

  5. The Defendant therefore denies that the Plaintiff is entitled to the sum of $51,045.00 or to any sum at all, or to any relief claimed.

DATED the 10th day of January, 2000."

The applicant supported her application to strike out the defence, with an affidavit which in effect expanded the averments in the statement of claim. At paragraph 2, 3, and 4 she deposed to negotiation leading to her employment in the defendant's business generally. At paragraphs 5 and 6 she deposed to the scope of her employment. At paragraphs 8, 9, 10, 11, 12, 13, 14, 15, 16 and 17, she deposed to negotiation leading to her appointment as agent, and the sale by her of parcels of land on behalf of the defendant. Paragraph 18 is about renumeration, "the commission," that the applicant says she was entitled to for the sale of the properties.

On 11.4.2001, the respondent filed an affidavit in which replies to the depositions in the applicant's affidavit were made. For the first time, the respondent admitted having employed the applicant as an agent, but in respect of different transactions. For the second time, the respondent denied having engaged the applicant as an agent for the purpose of the sale of the parcels of land in question. The respondent contended that the transactions were carried out by one of it's directors.

Grounds of the Application and Submissions

The applicant stated in her application that it was made, "under the inherent jurisdiction of the court and/or under the Rules of the Supreme Court...." The grounds were that the defence was an abuse of court process and that the defence disclosed no reasonable answer in law and further, that it tended to cause prejudice or delay in the trial of the case. In his submission, learned counsel Mr. J. Courtenay for the applicant, said that the respondent's defence comprised mere denials without adding facts upon which the denials were based and as such the defence was bad in law. The rest of the submission focused mainly on there being no reasonable defence; he based that on the falsehood in the denials by the respondent.

Learned senior counsel Mr. D. Barrow for the respondent, countered the submission by urging that even if the defence comprised only denials, that was adequate for the applicant's averments which were also very brief and lacking in details.

Both counsel for the applicant and respondent cited, Remmington v Scoles [1897] Ch. 1 in support of their submissions.

Determination

In an application to strike out based on non disclosure of reasonable defence (or reasonable cause of action), and on the pleading being frivolous and vexatious or in other ways an abuse of court process, evidence is rarely furnished. On the rare occasions when evidence is furnished, it must not be for the purpose of disproving the facts in the defence (pleading), it must be for the purpose of proving that the defence has been dishonestly delivered so as to delay or divert the course of justice. Evidence is not led to prove or disprove facts because at that stage the court is not yet concerned with the truth or otherwise of the pleading. The point has been made in, Remmington v Scoles, the case cited, especially in the judgment of Lindley L.J. at page 1098. In the case, evidence was accepted to prove that in a previous action the defendant had admitted in affidavit the facts he subsequently denied such as having been paid £1,750 so that he could purchase the land in question. It was held that his defence which comprised denials, was a sham set up dishonestly and for the purpose of delay.

After reading the affidavit evidence for both sides and after hearing both submissions, I formed the view that the circumstances in this application are such that evidence should not have been made available. The affidavit filed for the applicant simply sought to confirm the facts upon which the claim is based by discrediting the denials of those facts by the respondent. It was not used to show that the defence was a mere delaying tactic or a sham in other ways. The affidavit for the respondent answered in similar way by trying to prove the truth of the defence. Yes, I note that both the statement of claim and the defence are scanty. The better course to take, in my view, was that both parties should have simply sought further and better particulars or served notice to admit facts or interrogatories and asked for costs if the defendant had unreasonably with-held the information.

Then it does occur to one that looking at the whole application without the name, "application for order to strike out defence," given to it, one would take the application for a summary judgment application under O. 15 r31. It is in application for summary judgment made immediately after appearance has been entered, that affidavit must be and is used by the applicant/plaintiff to verify his claim, which is really a way to bolster his case, and used by the respondent/defendant to do likewise to his defence.

I accept the submission of learned senior counsel, D. Barrow, that given the brief statements in the statement of claim, the brief defence was adequate. I add that the denial were not just general denials. Take the central issue of the claim, for instance, which is that the applicant, as agent of the respondent sold some parcels of land on commission. The defence is that, "the defendant denies that it employed the plaintiff as its agent or agreed to pay her the alleged or any commission about the sale of property as alleged in the statement of claim or at all." In my view that left the plaintiff in no doubt what the issue in the case would be. It was a good defence no doubt. This case contrasts sharply with Hildige v O'Farell (1881) 8LR Ir 158, in which the denial of tenancy was struck out as embarrassing and was for the purpose of delay because in an earlier action the defendant had admitted tenancy.

It is my decision that there are no facts to support a finding of abuse of process; no demonstration of the defence having been filed for ulterior motive such as delay, and no demonstration that the application is frivolous and vexatious or an abuse of process in any other way.

Beside the submission of both counsel, it must be remembered that the Court has discretion to order amendment or delivery of better particulars instead of striking out, if the pleading can be improved upon. The point was illustrated by the fact that in Remmington v Scoles, the court, after striking out, afforded the defendant opportunity to file an honest defence. It is also illustrated by the fact that O. 22 r31 is silent about the consequence of striking out except for costs, and O. 28 r4 states entering judgment as one and not the only consequence that may follow striking out defence.

The affidavits filed for both sides have supplied facts I would have ordered for to amplify both the statement of claim and defence, had parties applied for. The defence as it now stands together with the facts in the affidavit of Luis Buenfil Duran, clearly discloses reasonable defence in law. I understand the defence to clearly deny that the applicant was engaged in the sale of the parcels of land in question, but that she was engaged as agent in other transactions. That cannot be a sham and therefore no defence to the claim that the applicant was engaged as an agent for commission in the sale of the parcels of land.

The contention about prejudice and delay cannot be supported by any facts. The applicant has not pointed out any disadvantage occasioned or likely to be occasioned so as to show prejudice. The defence was filed as long ago as 10.1.2000, the applicant filed her application to strike out defence only on 16.6.2000, some five months after. She was not in a hurry, can she complain about delay?

I have to mention that denial without citing other facts is not necessarily bad defence. The judgment of Lindley L.J. in, Remmington v Scoles is explicit on the point. If there is any doubt, the provisions of O. 24 rr1 to 4 should clear the doubt. The provisions state instances when mere denials will not be adequate defence, so what do we conclude about instances not included in the rules? Denials may be acceptable in those other instances. The judgments of Morton L.J. and Tucker L.J. in a more recent case in England, John Lancaster Radiators Ltd. v General Motor Radiator Co. Ltd. and Others [1946] 2 All ER 685, are instructive on the point.

Application Dismissed

The application for court order to strike out the defence filed on 10.1.2000, and to grant leave to enter judgement, is dismissed with costs.

Filed this Tuesday the 8th day of May, 2001

At the Supreme Court, Belize City, Belize.

Sam Lungole Awich
Judge