Faloon v Commissioner of Inland Revenue

Case [2012] NZHC 1154


IN THE HIGH COURT OF NEW ZEALAND TAURANGA REGISTRY

CIV-2011-470-878 [2012] NZHC 1154

UNDER  the Judicature Act 1908

IN THE MATTER OF     an application for the "extraordinary remedy" of an order of prohibition under Part 30 of the High Court Rules

BETWEEN  CLARENCE JOHN FALOON Plaintiff

ANDTHE COMMISSIONER OF INLAND REVENUE

Defendant

Hearing:         7 February 2012 (Heard at Hamilton)

Appearances: Plaintiff in person

J A L Oliver and K Ross for Defendant

Judgment:      28 May 2012

JUDGMENT OF PETERS J

This judgment was delivered by Justice Peters on 28 May 2012 at 2 pm pursuant to r 11.5 of the High Court Rules

Registrar/Deputy Registrar

Date: ...................................

Solicitors:           Crown Law, Wellington: kristen.ross@crownlaw.govt.nz

Counsel:            J A L Oliver, Barrister, Wellington:  john.oliver1@xtra.co.nz

Copy for:           C J Faloon:  randcfaloon@clear.net.nz

FALOON V THE COMMISSIONER OF INLAND REVENUE HC TAU CIV-2011-470-878 [28 May 2012]

[1]     The Applicant (“the Commissioner”) seeks an order striking out the Respondent’s (“Mr Faloon”) statement of claim and dismissing the proceeding.  The order to strike out is sought on the grounds that the statement of claim discloses no reasonably arguable cause of action, is frivolous or vexatious or is otherwise an abuse of the process of the Court.[1]

[1] High Court Rules, r 15.1(1).

[2]      In his statement of claim dated 20 October 2011, Mr Faloon seeks an order pursuant to Part 30 of the High Court Rules.  In particular, Mr Faloon seeks an order prohibiting any further hearing of a quite separate proceeding, CIV-2010-470-922 (“CIV 922”).

[3]      CIV   922   is   a   proceeding   that   Mr   Faloon   commenced   against   the Commissioner in 2010.  The Commissioner made the same application in respect of the statement of claim and proceeding as is before me in this proceeding.   In November 2011, an Associate Judge granted the Commissioner’s applications in CIV 922.   I heard and dismissed Mr Faloon’s application to review the Associate Judge’s decision in February 2012.

[4]      Accordingly, aside from anything else, the order that Mr Faloon seeks in this proceeding has been overtaken by events.

[5] I should, however, also refer to the basis on which Mr Faloon seeks the order referred to in [2]. Mr Faloon pleaded in this proceeding that the Commissioner was not entitled to pursue an application to strike out in CIV 922, because the Commissioner had not filed a statement of defence to an amended pleading that Mr Faloon had filed in CIV 922.

[6]      There is no requirement that a party who seeks to strike out a pleading must first file a statement of defence.  Accordingly, the present proceeding has never had

any prospect of success.

[7]      I make orders striking out the statement of claim dated 20 October 2011 and dismissing the proceeding.

[8]      Costs are to lie where they fall.

..................................................................

M Peters J


Details
AGLC
Faloon v Commissioner of Inland Revenue [2012] NZHC 1154
Case
[2012] NZHC 1154
Decision Date

CaseChat Overview and Summary

Clarence John Faloon brought an application before the High Court of New Zealand seeking an extraordinary remedy in the form of an order of prohibition. The Commissioner of Inland Revenue opposed the application, arguing that Faloon's statement of claim should be struck out as it disclosed no reasonable arguable cause of action and was frivolous or vexatious. Faloon's claim sought to prohibit further proceedings in a separate case, CIV-2010-470-922, which was already subject to a strike-out application by the Commissioner. The Commissioner had previously succeeded in having Faloon's claim struck out in CIV 922, a decision that Faloon unsuccessfully sought to review. Faloon argued that the Commissioner was not entitled to pursue the strike-out application in CIV 922 because the Commissioner had not filed a statement of defence to an amended pleading. However, there is no such requirement, and the court found that Faloon's application had no prospect of success.

The court considered that the Commissioner was entitled to strike out Faloon's statement of claim as it disclosed no reasonable arguable cause of action and was frivolous or vexatious. The court found that the proceeding was an abuse of the court process and dismissed Faloon's application. The court also noted that the order Faloon sought had been overtaken by events, as the Commissioner had already succeeded in having the claim in CIV 922 struck out.

The court made orders striking out Faloon's statement of claim and dismissing the proceeding. The court also ordered that costs were to lie where they fell.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

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