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(THE
BANK OF NOVA SCOTIA
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PLAINTIFF
(Judgment Creditor) |
BETWEEN |
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(AND
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(JAMES
E. LINDO
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DEFENDANT
(Judgment Debtor) |
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(AND
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(GOVERNMENT
OF BELIZE |
GARNISHEE |
Supreme
Court
Action No. 67 of 1976
23rd June, 1983.
Moe, CJ.
Mr. Dean
Lindo S.C. for the Applicant/Defendant
Mr. Edwin Flowers for the Respondent/Plaintiff
Application
for leave to appeal from order of a judge in chambers -
Affidavit evidence - Hearsay - Res Judicata - Garnishee
Proceedings - Recovery of debt - Supreme Court Rules - Whether
evidence sworn to in the affidavit was a matter of personal
knowledge - Whether the affidavit used in the garnishee
proceedings raised a matter that was Res judicata - Application
failed - Leave to appeal refused - Costs.
D
E C I S I O N
This is
an application by the Defendant now the judgment debtor for
leave to appeal from an order of a judge in chambers made
on the 17th May, 1983 that the Government of Be1ize, the garnishee,
do forthwith pay the Plaintiff, the judgment creditor $33,988.16
being the debt owed from the said garnishee to the said judgment
debtor as is sufficient to satisfy a judgment debt recovered
against the said judgment debtor.
The Defendant
seeks leave to appeal on the grounds that (i) the judge erred
in holding that an affidavit of the Solicitor for the Plaintiff
was based on his personal knowledge; (ii) consequently the
judge erred in using that affidavit which was hearsay; and
(iii) the judge erred in using the affidavit inasmuch as it
contained matter Res judicata.
The affidavit
concerned was filed in support of the application by the Plaintiff
for a garnishee order and the deponent swore as follows: -
1. By
a judgment of the Court given in this action and dated the
7th of June, 1982, it was adjudged that the above-named
judgment creditor should recover against the above-named
judgment debtor the sum of $33,988.16.
2. The
said judgment debt still remains unsatisfied to the extent
of the entire sum.
3. The
Government of Belize is indebted to the judgment debtor
in the sum of $50,000.00 or thereabouts.
4. The
said Government of Belize is within the jurisdiction of
this Court.
An order
nisi was made on the 15th of March, 1983. At the hearing of
the application for the order to be made absolute, Counsel
for the garnishee stated that the garnishee had no objection
to paying the Plaintiff. However counsel for the Defendant
objected to the making of the order on much the same grounds
as those urged for the grant of the present application. On
that occasion he contended -
1. The
affidavit was inaccurate because the Defendant had already
stated on oath that the Government did not owe him $50,000.
2. The
Affidavit could only have been on the basis of information
and belief.
3. Such
an Affidavit must state the grounds for the belief.
4. The
Affidavit being based on information and belief and not
having grounds for belief stated was bad.
5. Consequently
the application could not be entertained.
One other
ground urged then is not pursued for the purpose of this application.
The affidavit
followed the form required by Order 48 Rule 1 of the Supreme
Court Rules. The pertinent paragraph, that the Government
of Belize is indebted to the judgment debtor in the sum of
$50,000.00 or thereabouts, was, as the judge found, sworn
to as a matter of personal knowledge. This was in keeping
with Order 39 Rule 3 that affidavits shall be confined to
such facts as the witness is able of his own knowledge to
prove ---. The question whether the deponent had sworn to
an untruth or to a matter on which the judge could not act
needed no determination for the Government itself through
counsel confirmed the truth of the paragraph. This application
therefore fails on the first two grounds urged.
In relation
to ground (iii) it was contended as follows:- that the affidavit
stated that the Government of Belize is indebted to the Defendant
in the sum of $50,000. That that was Res judicata for
in the proceedings of the 15th of February, 1983 on the hearing
of a judgment summons issued by the Registrar, the judge ordered
that he was not satisfied that the Defendant has since the
judgment had sufficient means to pay the judgment debt nor
does he refuse to pay. The record shows that at the hearing
of the judgment summons on the 15th of February, 1983 the
only evidence given was that of the Defendant who in evidence
in chief said inter alia "I was employed - or
was working on contract for Government since the judgment.
I was building roads and bridges for Government --- I received
a total of $65,600.00 for that work. I also received $137,000
from Government in 1982 for building feeder roads. Government
is not indebted to me at all. It is not correct that the Government
owes me about $50,000." The Defendant's submission now
is that the judge had on the 15th of February, l983 by his
order as above, ruled on the question whether the Government
of Belize owed the Defendant $50,000, and it was not open
to the Plaintiff to have the matter reopened. The Plaintiff
contended that the judge cannot be held to have adjudicated
on that question for there was only the statement of the Defendant
that the Government did not owe, there was no proof put forward
that Government owed the money and there were other matters
before the judge which could have caused him to order as indicated.
By Order
LXX1 Rule 1 a judgment summons such as was before the judge
on 15th February, l983 is issued on application made by a
judgment creditor to obtain the committal of the judgment
debtor. In addition to the application for committal, the
Courts require evidence of means to be filed. It does not
appear that there was such an application nor such evidence
of means filed.
However,
the accepted principle is "Before making a Committal
Order it is essential that the Court should satisfy itself
that in respect of the sums for which the committal order
is to issue it can truly be said that since the respective
due dates the debtor has had the means of paying them available
but has neglected to use those means for the purpose of paying
them. It is obvious that the debtors future prospects of payment
have no bearing on this question ---" see Laxmoore J.
in Re A judgment debtor 51 T.L.R. 524. ([1949] 2 Q.B. at
101). This is incorporated in Order LXX1 Rule 7(2) which
provides inter alia as follows: "If it shall appear
to the Court that the debtor has then or has had since the
judgment or order was obtained against him, sufficient means
and ability to pay the sum due thereunder, in respect of which
he has made default, and refuses or neglects, or has refused
or neglected to pay the same in accordance with such judgment
or order, or as directed by any order subsequent to such original
judgment or order, then the Court may order the debtor to
be committed to prison for a term not exceeding six weeks
or until sooner payment of the sum due."
What the
judge had to satisfy himself on was the position of the Defendant
on that date 15th February, 1983 and between the date of judgment
15th June, 1982 and that date. He was not satisfied that on
that date nor between date of judgment and that day the Defendant
had sufficient means to pay the debt and refused to pay. Such
a finding does not and cannot preclude a decision that on
a later date the 17th of May, 1983 the Defendant has sufficient
means to pay and refuses to pay. Thus, even if there was a
finding on the 15th February, 1983 that the Government did
not owe the Defendant a sum of money, that decision does not
preclude a decision that on the 17th of May, 1983 the Government
of Belize owes money to the Defendant.
For the
above reasons I would not agree that the affidavit used in
the garnishee proceedings raised a matter that was Res
judicata. The application would also fail on this ground.
In the circumstances leave to appeal is refused. The Respondent/Plaintiff
to have his costs.
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