Sunday, June 22, 2008

An injustice anywhere is a threat to justice everywhere

Martin Luther King

With Auckland businessman Vince Seimer facing an indeterminate prison sentence for contempt of court, the question has to be asked whether contempt of court is becoming a convenient excuse for the Courts to ignore the provisions of the Bill of Rights.

Section 14 of the Bill of Rights Act says quite clearly that: Everyone has the right to freedom of expression, including freedom to seek, receive and impart information and opinions of any kind in any form.

Theoretically the Courts have an obligation to respect this right, although there are some legitimate limitations to protect citizens from defamation, a breach of privacy and offensive material.

And then there are the constraints attributable to court orders, many of them imposed to protect the right of a person to a fair hearing.

But therein, lies the rub.

Courts, when imposing court orders, surely have a responsibility to ensure there is justification for imposing court orders, rather than do so purely to censor information somebody wants suppressed.

The discretion of the Courts to suppression information by way of court orders then becomes a serious threat to the well-established legal right to impart information and opinions.

Breach of a court order is considered a contempt of court – a serious offence for which the penalties include imprisonment for an indeterminate period of time.

In recent years, the following have faced, or are due to face contempt of court proceedings:

  • an MP – Dr Nick Smith for disclosing information on radio relating to a Family Court matter. Conviction could have cost him his political career.
  • a lawyer – Dr Bob Moodie for disclosing the Butcher report in the Berryman case. Conviction suspended his right to practice for several months.
  • a newspaper editor – Tim Pankhurst for coverage in the Dominion Post of the police terrorism raids
  • an author – Anne Hunt for her coverage of the outcome of a sexual abuse case. Conviction could have cost her, her seat on the Horowhenua District Council.
  • and of course a businessman – Vince Seimer for disclosing information on a web-site which is subject to an interim injunction in a defamation suit – yet to be heard.

In his New Zealand Civil Rights handbook, Tim McBride says that contempt of court is a potentially dangerous constraint on freedom of expression because it involves criminal proceedings that are unaccompanied by the ordinary safeguards of the criminal law.

Court orders can, in effect, sanction secret trials – the very antithesis of the transparency necessary to not only ensure that justice is done, it is seen to be done.

Not possible for secret trials to occur in a democratic country, you may presume.

Court documents prove otherwise.

Court orders in New Zealand can be potent enough to suppress the very existence of the proceedings, and that is the point at which, the right of the Courts to impose court orders must be curbed.

A person who appears in a courtroom which is closed to the public, has lost all rights to a fair and open hearing and is totally at the mercy of the Judge.

And Courts which exercise that right, should quite rightly be held in contempt!

The classic case which demonstrates how dangerous court orders is my own: A v A Hunt CIV-2003-485-2553. (Ironically, my name appeared on all court documents and was displayed outside the High Court in full view of the public, despite the name suppression order in force.)

On Friday 21 November 2003, Justice John Wild issued ex parte orders suppressing the existence of the proceedings.

These orders were not intended to be an interim measure.

Hugh Rennie QC had sought these orders to allow his client, the plaintiff, his day in court.

In other words, I as the defendant was denied the right to tell my husband that I would be travelling from my Foxton Beach home to Wellington because I had been summoned to appear in the Wellington High Court charged with contempt of court.

It would have been contempt of court for me to do so.

The Court had also deprived me of my right to access the documents used for my research and which had been returned to the owner.

For this reason I was not in a position to challenge allegations – and at this stage they were only allegations – that I had breached a court order, and therefore had no option but to recall all copies of my book at that stage on sale in bookshops. Library copies were also returned to await the outcome of the civil claim for contempt of court.

The onus was now upon the plaintiff to prove the contempt of court, but in the meantime the book had effectively been banned.

After two hearings in closed Chambers, I came to the conclusion that I had no hope of a fair hearing unless I succeeded in getting the order suppressing the existence of the proceedings uplifted.

After nine months, Justice Forrie Miller – the fourth judge I had encountered – conceded this order was extraordinary and removed it.

Nevertheless all ten interlocutory hearings continued be heard in closed chambers, and all documents remained confidential to the parties.

Justice Ron Young presided over the remaining interlocutory hearings; hearings which lacked transparency, and hence fairness.

After a three-day hearing before Justice Wild in Wellington, I was found to be in contempt of court, fined and ordered to pay damages, court costs and disbursements to the plaintiff.

Justice Wild issued instructions for all copies of my book to be destroyed, and the order suppressing the title of my book was to remain in place.

This meant that, in effect, anybody could be charged with contempt of court, merely for mentioning the title of the book.

Such is the impact of court orders!

A stay of execution was required to prevent the destruction of my books, as I had filed an appeal on the grounds that Justice Wild had set aside all evidence relating to Dr David Collins QC (now the Solicitor-General) because I chose not to call him as a witness.

The Court of Appeal quashed all High Court orders, after reaching the view that Justice Wild had ‘inadvertently’ erred in his interpretation of the hearsay rule.

Only now can I disclose the documents which confirm that I had indeed been confronted with the prospect of a secret trial to ban Broken Silence, pressure which took a significant toll on my own health and that of my husband.

He suffered a fatal heart attack and died four months after urging me to settle because he had said he could not bear to live without me. A few days later, he apologised, stating that the principles we were fighting for were too important to be sacrificed.

Tragically we had sensed that this litigation would ultimately be the death of one of us.

Although the Court of Appeal has now exonerated me, I now have nothing but contempt for court.

As the author of The Foxton Murder, and having covered the murder trial following the death of Dr Howard Teppett and rape of his sister, I had always encouraged people to respect the integrity of the Courts. Only now, having experienced first-hand the intimidation that occurs in courtrooms without the safeguard of transparency, I have come to the belief that the Courts are no longer worthy of my respect.

Indeed I cannot rest whilst other law-abiding citizens are treated with contempt by the very Courts which have an obligation to respect the right to seek, receive and impart information and opinions of any kind in any form.

As I understand it, Michael Stiassny has yet to prove that the information subject to an interim injunction is defamatory, and until he has done so, the Solicitor-General must be cautious about resorting to contempt of court proceedings.

The Court of Appeal conceded that Dr David Collins QC undoubtedly made quite extensive notations on my manuscript, and that these notations confirm that he had viewed the page relevant to my own contempt of court proceedings.

Amongst other documents disclosed as evidence was the note I had taken of his phone call to me on Monday 18 June 2001, and which confirms that, disclosed to me during the course of this conversation was information subject to a suppression order.

It is not generally known that my books were recalled twice. On the first occasion it was to delete a surname covered by a name suppression order. As this surname had appeared on every document relating to this case I had seen (and I had viewed a considerable number of Court of Appeal documents referring to this associated case), I was appalled to discover that the Court of Appeal had ‘inadvertently’ released this name and yet I could still be charged with contempt if I did not agree to recall my books at considerable expense and delete this name from every book.

If disclosures by the Courts and also the lawyer who is now the Solicitor-General can inadvertently place members of the public in contempt of court, then the Courts themselves need to review their own procedures to ensure that all those associated with the legal profession meet the same standards demanded of citizens who are not as conversant with the law as they are.

Until they do so, the Courts warrant my contempt for their double standards and complete disregard for the Bill of Rights, they are required by law to uphold.

Contempt of court is, as I can now confirm, a potentially dangerous constraint on freedom of expression and the time has come to curb the autocratic power Judges wield when issuing court orders.

Judges have already proved that they are prepared to sanction secret trials for no other reason than to allow the plaintiff his day in court.

When Judges are also prepared to issue court orders to censor information which embarrasses influential people or organisations, the Courts have deprived law-abiding citizens of the very rights the Bill of Rights was enacted to uphold.

The precedents are in place, and warrant our contempt.

Anne Hunt

20 June 2008.

NEWS:

VECTOR LAWYERS ATTEMPT TO CLOSE DOWN WEBSITE!

11 May 2008
In the wake of Vector's pending sale of their Wellington lines asset to a Chinese Company, it seems that Vector is getting nervous about our contrasting point of view, and wants to make sure that only "The Official Line" (pardon the pun) gets out. They have instructed their lawyers to request that our overseas web hosting company close down the site.

To read the letter they sent 2Mhost hit this link http://www.vectorlimited.com/images/VectorL1.PDF

The response to this unlawful attempt written to the Editor of this truly world-class wenhost 2Mhost is to be found at: http://www.vectorlimited.com/images/VinceReply.pdf

Note the bluff and bluster. Of course, it isn't possible to defame a Company, and as usual, they don't identify a single defamatory word. Perhaps, because there isn't one.

But desperate situations sometimes demand desperate measures.

We draw your attention to the suggestion that the web hosting company edit the site to remove the defamatory content (paragraph 3), but (Ooops), they neglect to identify any such material. This, of course, leaves the hosting company two choices: ignore the letter or close down the site completely. That might be a breach of our rights to publish factual information that is of interest to the public at large. In some countries, they call it Freedom of Expression, but we're not sure if it really exists in New Zealand. However, this website is an American publication.

Oh, and note the spelling in the subject line of the lawyers' letter. Of course, this issue has nothing to do with the Registration of the Domain Name, but we understand how easy it is to confuse the essential details.


Written by Vince Siemer, MBA
Member, Institute of Directors
27 Clansman Terrace
Gulf Harbour
New Zealand

Company ECG - Share Price

NEWS FLASH:
Vector's Board Instructs Lawyers to Spare No Expense in Effort to Shut Down this Site.
Read correspondence

Company ECG - Share Price
VECTOR LIMITED

Basics

Vector Limited is a ‘bricks and mortar’ utility provider of electricity and natural gas to the Auckland and Wellington regions of New Zealand. In recent years it has followed the Enron model of growth and expansion. The company directors claim this has quintupled the valuation of the company in three years. Much of this valuation is vested in intangible assets. For example, this monopoly provider of electricity and gas claims 28% of its valuation (NZ$1.6 billion) is vested in ‘goodwill’. The $1.6 Billion figure is roughly equivalent to the worldwide brand Coca-Cola.

Vector Limited currently has 29 subsidiaries and 4 associate companies. Many of the Vector controlled subsidiaries are non-trading shelf companies.

Dividends continue to rise each year despite lackluster performance of its core businesses and mounting company debt. In 2005, a $600,000,000 public share offering did little to pay down the enormous debt which currently stands at 400% of what it was 4 short years ago.


Key financial indicators, 2007

Total book assets: $5.73 billion
Total assets after questionable goodwill: $4.1 Billion
Total debt: $3.127 Billion (up 1.5% over previous year despite sale of nominal productive assets valued at $48 Million)
Debt ratio after questionable goodwill discounted: 3.14
Reported equity/total assets (with goodwill): 33.2%
Credit Rating: BBB+ with negative outlook.
Debt $3.126 Billion (up $44 million despite another $48 million in productive assets sold off during fiscal year)
Dividend paid: 13 cents per share (up from 12 cents the year before) WARNING: The company increased debt and drew negative retained earnings to pay dividend!

CURRENT THREATS TO VECTOR’S FUTURE PERFORMANCE

Concern lingers over why more of the $600,000,000 raised by the public capital float in mid 2005 did not result in debt being paid down significantly despite this being the primary stated purpose in the company’s much vaunted IPO in 2005.

Interest rate on debt increased overall by average of 0.5% compared to previous fiscal year. Vector summarizes its interest rate risk on the massive debt thusly:

“The group actively manages interest rate exposures in accordance with treasury policy. In this respect, at least forty percent of all debt must be at fixed interest rates or effectively fixed using interest rate swaps, forward rate agreements, option and other derivative instruments.”

Dividends were increased from 12 cents to 13 cents per share in 2007 despite negative retained earnings, increased debt, increased interest rates on that debt and the overall threat of all these factors to the company’s credit rating. If Vector’s credit rating were to fall or the debt ratio increase due to falling share value, there is a real risk that debt covenants could be breached, resulting in loan interest rates being hiked further and/or some loans called by the company’s lenders.

LIQUIDITY RISK:
Currently Vector reports that it has undrawn committed lines of credit to protect itself against the risks imposed by potential loan payments being escalated or other unexpected economic impacts. The problem is these lines of credit are subjected to the same pressures and risks inherent in the company’s overall debt portfolio. They therefore offer limited protection in the event of financial trouble.

SIGNS OF PROMISE TO VECTOR’S FUTURE PERFORMANCE
If economy remains strong, Vector’s strength in the share market is enhanced by the fact that less than 25% of its equity is tradable in the equity markets. This is because the 75.1% owned by the supermajority shareholder AECT is in the form of a non-salable shareholding held in trust.

If the officious chairman is able to impose his will upon the Commerce Commission to back off, Vector could easily raise power rates enough to bounce back like Enron did during the California power crisis.