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Jersey Unreported Judgments


You are here: BAILII >> Databases >> Jersey Unreported Judgments >> Home Farm Developments Limited and Others -v- Le Sueur [2016] JCA 010B (18 January 2016)
URL: http://www.bailii.org/je/cases/UR/2016/2016_010B.html
Cite as: [2016] JCA 10B, [2016] JCA 010B

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Debt - consequential judgment to 25 November 2015 - application to extend time.

[2016]JCA010B

Court of Appeal

18 January 2016

Before     :

Jonathan Crow, Q.C., President

Robert Logan Martin, Q.C., and

Sir Michael Birt, Q.C.

Between

(1)   Home Farm Developments Limited

(2)   Strata Developments Limited

(3)   Shane Holmes

Plaintiffs/Appellants

 

And

Jamie Le Sueur

Defendant/Respondent

 

Between

Jamie Le Sueur

Plaintiff/Respondent

 

And

Shane Holmes

Defendant/Appellant

 

Mr Holmes appeared for the Plaintiffs/Appellants.

Advocate M. H. D. Taylor for the Defendant/Respondent.

judgment

the president:

THIS IS THE JUDGMENT OF THE COURT

Introduction

1.        This is the judgment of the court.  It deals with the consequences of certain events occurring since we gave judgment in the substantive appeal on 25 November 2015 ("the 25 November judgment"). 

2.        In the 25 November judgment we said this at paragraph 55:

55.      The position today is that the Order of Justice has been struck out.  For the reasons set out above, we would set aside the orders below, but only to the following limited extent and only on the following strict conditions:-

i.         We consider that the proceedings could in principle be salvaged by an amendment seeking an order for rectification of the Settlement Agreement to reflect Mr Holmes' allegation that it was a condition of that agreement that Mr Le Sueur would procure that the creditors of Strata should accept his aggregate payment of £50,000 in full and final settlement of their claims.  To that extent we would allow the appeal, but only on condition that within 4 weeks of today's date the Appellants issue and serve a Summons returnable before the Master applying for leave to amend the Order of Justice in terms which the Master considers properly pleads a reasonable cause of action this regard.

ii.        If and to the extent that Mr Holmes wishes to procure that the claim be maintained in the name of Strata, he shall within 4 weeks of today's date issue the necessary proceedings to restore that company to the register and shall at the same time serve copies of the relevant application and supporting evidence on Mr Le Sueur's advocates.  If he fails to issue proceedings by the stated deadline, the claim ostensibly brought in Strata's name will remain struck out.  If Mr Holmes issues the proceedings in time but fails to pursue them at all stages with due expedition, then Mr Le Sueur shall be at liberty to restore the matter to the Master for a direction that the claim brought in the name of Strata be struck out."

3.        In the event, Mr Holmes issued no applications within four weeks of 25 November.  Instead, at 16:07 on 24 December he sent an email to the court attaching two summonses, one seeking leave to amend the Order of Justice ("the amendment summons") and the other to restore Strata to the Register ("the Strata summons"). 

4.        Advocate Taylor for the Respondents objected (by email dated 4 January 2016) that both summonses were out of time, that the amendment summons did not attach a draft Amended Order of Justice, that the Strata summons was unsupported by any evidence and that it was in any event in the wrong form, as the application should have been made by way of Representation. 

5.        In an email dated 7 January, the Master gave Mr Holmes until 11 January (i) to provide a draft Amended Order of Justice, (ii) to explain why he had not complied with the time limits set out in paragraph 55 of the 25 November judgment, and (iii) to make submissions on whether the Master had power to extend time and, if so, whether that power should be exercised.  He also indicated that Advocate Taylor should make submissions on the same points.  Finally, he gave Mr Holmes until midday on 8 January to explain whether evidence in support of the Strata summons had been prepared but not yet filed, or whether it had not been prepared. 

6.        Advocate Taylor submitted his clients' Skeleton Argument later that day, submitting that this court (rather than the Master) has jurisdiction to deal with the matter.  On 8 January Mr Holmes sent an email to the court saying that he thought at the time that the summonses "were in the appropriate order and filed on time", and in particular he did not believe that the 25 November judgment or the court Rules required a draft Amended Order of Justice to accompany the amendment summons.  Nevertheless, he said that he had drafted an Amended Order of Justice "save for one minor addition on the matter of rectification which I wish to make" and he said that he would make that addition and file it with the court the next day.  He did not answer the Master's question as to whether any evidence in support of the Strata summons had been drafted. 

7.        On 11 January Mr Holmes provided a Skeleton Argument in which he said that his failure to issue and serve the summonses in time was "a human error" on his part, but that it was "excusable" and the court ought to apply by analogy the approach set out in Pitman v JEP [2013] (2) JLR 293.  He argues that this court had passed the matter back to the Master.  He also provided a draft Amended Order of Justice. 

8.        This court accordingly has to decide whether it has jurisdiction to deal with these latest developments, and if so what it should do. 

Jurisdiction

9.        We are satisfied that, under Article 12(3) of the Court of Appeal (Jersey) Law 1961, this court has jurisdiction to deal with the latest developments. 

10.      We are also satisfied that the full court must deal with it, pursuant to Article 18(3) of the 1961 Law. 

11.      So far as paragraph 55 of the 25 November judgment is concerned, this court passed back to the Master the further disposal of the summonses on the assumed basis that they would be issued in time.  By contrast, the issue that has now arisen is whether the summonses were issued in time, and if not whether any extension of time should be granted.  Those are not matters that were passed back to the Master. 

Disposal

12.      The 25 November judgment was entirely clear in its terms.  The summonses had to be issued within four weeks of 25 November (i.e. by 23 December at the latest), not within a calendar month.  There is no room for doubt that the summonses were issued late, and Mr Holmes has not sought to suggest that they were issued in time.  The court must therefore decide whether to extend time. 

13.      In considering any application to extend time, the court is bound to take into account all the relevant circumstances, including the context in which the application arises, the length of the delay, the reasons for the delay, the consequences for each party respectively of either granting or refusing the extension, and the extent to which either party's conduct encourages the court to be more or less amenable to the application (e.g. whether other time limits have been missed, whether the other side contributed in any way to the delay etc.). 

14.      Taking that approach, we have no hesitation in saying that time should not be extended.  The delay was not long, but every other factor militates strongly against an extension:-

(i)        First, the question arises in the context of a successful strike-out application.  This court held that the claim as pleaded could not succeed.  Out of indulgence to Mr Holmes, we were prepared to give him one last chance to amend his pleading in order to salvage his claim.  In the circumstances, the court is entitled to expect him to take up that opportunity with alacrity, and not to leave it to the last possible minute (as he did even on his apparent understanding). 

(ii)       Second, there is no possible excuse for the misunderstanding.  "Four weeks" means four weeks, not a calendar month. 

(iii)      Third, the consequence for Mr Holmes of refusing an extension is to leave in place the order of the court below dismissing his claim - a decision which we have held was rightly made on the basis of the pleading as it stands.  By contrast, the consequence for the Respondents of granting an extension is that they will have to face a contested amendment application followed by the further expense and delay of a contested trial if the amendments are allowed. 

(iv)      Fourth, the amendment summons was not accompanied by any draft Amended Order of Justice. 

(v)       Fifth, even now Mr Holmes has not submitted a draft pleading seeking rectification: the only draft he has provided seeks damages and rescission based on allegations of misrepresentation, breach of contract and breach of fiduciary duty. 

(vi)      Sixth, the Strata summons was not in the right form nor was it accompanied by any evidence. 

(vii)     Finally, even now Mr Holmes has not provided any evidence in support of the Strata summons. 

15.      For these reasons, we refuse to grant an extension of time.  As a result, the Act of Court issued on 18th February 2014 now takes effect, and the claim remains struck out. 

Authorities

Home Farm Developments-v-le Sueur [2015] JCA 242.

Pitman v JEP [2013] (2) JLR 293.

Court of Appeal (Jersey) Law 1961.


Page Last Updated: 08 Nov 2016


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