OS 225 OF 2006; Madang Development Corporation Limited v Rabtrad Madang Limited and Rabtrad Niugini Limited and G. Litz & Company Limited (Third Defendant/First Cross Claimant) and Andersons Foodland Limited (Second Cross Claimant) (2013) N5259

• Jurisdiction: Papua New Guinea
• Court: National Court
• Citation: (2013) N5259
• Date: 13 June 2013
• Year: 2013

Full Title: OS 225 OF 2006; Madang Development Corporation Limited v Rabtrad Madang Limited and Rabtrad Niugini Limited and G. Litz & Company Limited (Third Defendant/First Cross Claimant) and Andersons Foodland Limited (Second Cross Claimant) (2013) N5259

National Court: Hartshorn, J

Judgment Delivered: 13 June 2013

Contempt—disobedience contempt—practicing lawyer—failing to comply with court order to pay K700,000 from his trust account—contempt continuing - penalty to be imposed - whether a term of imprisonment appropriate

Facts:

The contemnor Mr. Emmanuel Mai pleaded guilty to a charge of contempt of court for knowingly and wilfully failing to comply with an order of this court. This is the decision concerning the punishment to be imposed upon Mr. Mai. Mr. Mai is a lawyer and at the relevant time practiced on his own account as Mai Lawyers.

Held:

The very substantial amount of money that remains owing, the continuing breach of the court order and the fact that Mr. Mai was a practicing lawyer at the time that the court order for payment was made leads to the conclusion that a monetary penalty is not appropriate.

Cases:

Yap v TS Tan [1987] PNGLR 227; Ross Bishop v Bishop Bros Engineering Pty Ltd [1988–89] PNGLR 533; Bishop Brothers Engineering Pty Ltd v Ross Bishop (1989) N690; Concord Pacific Ltd v Thomas Nen [2000] PNGLR 47; Sr Dianne Liriope v Dr Jethro Usurup (2009) N3931; Bank of South Pacific Ltd v Anton Sekum (2011) N4588; Milupol Development Corporation Ltd v Paul Garai (2012) N4635

1. HARTSHORN, J: The contemnor Mr. Emmanuel Mai pleaded guilty to a charge of contempt of court for knowingly and wilfully failing to comply with an order of this court. This is the decision concerning the punishment to be imposed upon Mr. Mai. Mr. Mai is a lawyer and at the relevant time practiced on his own account as Mai Lawyers.

2. The order of this court with which Mr. Mai failed to comply was made on 11th May 2012 and required him to pay the sum of K700,000 together with any interest earned into the trust account of Henao’s Lawyers within three days (Payment Order). The sum of K700,000 was being held in the trust account of Mai Lawyers on behalf of the plaintiff, Madang Development Corporation Ltd. The Payment Order was made after Henao’s Lawyers were instructed to act for the plaintiff instead of Mr. Mai.

3. Mr. Mai has admitted that he did not comply with the Payment Order as he had applied the sum of K700,000 for his own use. He had intended to repay the money to his trust account from legal fees due to him. The payment of these legal fees however did not eventuate and he was not able to replace the sum that he had taken from his trust account. Mr. Mai has since made...