By Matangi Tonga reporters
Damages amounting to over $20 million pa’anga in total were awarded to the plaintiffs, the Tonga Development Bank and its CEO 'Emeline Tuita and Board Chairman, Penisimani Vea, in a landmark "judgment in default" by made by the Lord Chief Justice Bishop on 23 September, against the Reserve Bank, its Governor, a local broadcaster and a journalist.
The order released by the Supreme Court of Tonga Civil Jurisdiction yesterday, is believed to be the largest amount ever awarded in a civil damages case in Tonga.
The Plaintiffs (TDB, Tuita and Vea) sued the National Reserve Bank of Tonga, its Governor and three independent journalists (Katalina Tohi, Tevita Motulalo and Kalino Latu) for damages for loss of profit, general damages and exemplary damages, in a civil writ of claim (CV34 of 2024) filed by the Plaintiffs to the court on 6 August 2024.
The judgment in default means that the defendants had not filed a defence in response to the 106-pages writ of claim seeking over $20 million in damages.
Because a defence had not been filed within the required 28 days, the Plaintiffs applied successfully to the court on 11 September for a “judgment in default” against four of the five defendants. (It is understood that the plaintiff did not seek a judgment in respect of the 4th defendant Kalino Latu).
The four defendants named in the writ of claim, who were ordered to pay the damages are the National Reserve Bank of Tonga and its Governor Tatafu Moeaki (total $15 million), independent Tongan broadcaster Katalina Tohi of Radio 89.5fm (total $4 million), and a Nuku'alofa-based journalist and news editor, Tevita Motulalo ($1.2 million).
LCJ Bishop made the ruling on 23 September, “After considering the Plaintiff’s notice of application dated 11 September 2024 for judgment in default against the First, Second, Third and Fifth Defendants, and the affidavit of Mele Hala Lokotui dated 11 September 2024 sworn and filed in support, and in reliance upon Order 14 rule 1 of the Supreme Court Rules.”
Order 14 rule 1, allows a judgment to be made when a defence has not been filed, in certain cases, within 28 days of an application.
He ordered the final judgment for the plaintiffs against the first, second, third and fifth defendants in sum of:
(a) Damages for loss of profit in the sum of $4,783,200.
(b) General damages against the first, second, third and fifth defendants in favour of the first plaintiff (Tonga Development Bank) in the sum of:
(i) $5 million against the first and fifth defendant(ii) $1,000,000 against the second defendant
(iii) $300,000 against the third defendant.
(c) General Damages against the first, second, third and fifth defendants in favour of the second plaintiff (Penisimani Vea) in the sums of:
(i) $2 million against the first and fifth defendant(ii) $1,000,000 against the second defendant
(iii) $$300,000 against the third defendant
(d) General Damages against the first, second, third and fifth defendants in favour of the third plaintiff (‘Emeline Tuita) in the sums of:
(i) $3 million against the first and fifth defendant(ii) $1,000,000 against the second defendant
(iii) $300,000 against the third defendant
(e) Exemplary damages against the first, second, third and fifth defendants in the following sum:
(i) $5 million against the first and fifth defendant(ii) $1,000,000 against the second defendant
(iii) $300,000 against the third defendant
The Lord Chief Justice also issued a retraction order to the first, second, third and fifth Defendants of the published article/broadcast about this matter.
He ordered that the Plaintiffs are to file and serve their bill of costs in according with Order 46 rule.
“In addition, a copy of this order was also expected to be served on first, second, third and fifth defendants by the plaintiffs within a period of 14 days of its issuance from the Court.”
Meanwhile, it is understood that defendants who were ordered to pay damages were applying to the court to set aside the “judgment in default”, and to allow them time to file their defences to the damages claim.
Leaked letter
The damages claim related the broadcast and publication of extracts from a letter written by the Reserve Bank Governor to the Minister of Finance on 17 May 2024 on the subject of Regulatory Actions being taken by the Reserve Bank against the Tonga Development Bank, its CEO Tuita and Chairman Vea.
The letter, which was leaked by an unnamed person, allegedly detailed the serious concerns of the Reserve Bank and included a “cease and desist” order to remove the CEO and Chairman from their roles in the TDB.
Two civil actions
The application for damages is one of two civil cases between the plaintiffs, the Tonga Development Bank, Emeline Tuita (TDB CEO) and Penisimani Vea (Board Chairman) against the defendants, Tatafu Moeaki (Governor) and the National Reserve Bank of Tonga.
The other civil case CV24 of 2024 is ongoing and has not concluded.
On 19 September the Lord Chief Justice ordered in regards to CV24, that a previous directive (i) that TDB is not to engage in any economic development activities (joint development agreements) without the prior approval of the NRBT, continues in full force. He said that In the meantime, the parties must prepare draft orders which must include an undertaking to serve a sworn statement dealing with the allegations of non-disclosure, lack of authorization and the assertion of a substantial withdrawal of funds.
Although they are two distinct entities, the government has the controlling interest in each of the two banks involved in the ongoing dispute.
See also:
Friday, September 20, 2024: Court battle continues for National Reserve Bank and Tonga Development Bank
Wednesday, July 3, 2024: Court gives Tonga Development Bank leave for Judicial Review over release of letter
Tuesday, May 28, 2024: Police search Tonga Development Bank in response to complaint
Thursday, May 23, 2024: No official statements over troubles at Tonga Development Bank
