Tonga’s Court of Appeal has overturned a Supreme Court decision, reopening an eight-year legal dispute between Lord Nuku and Lord Luani, two members of the king’s nobility.
The Appeal judges also extended the term of Lord Luani’s receiver, Dianne Warner, until 2026 to collect and enforce the decision made against Lord Nuku’s TOP$3,380,335.00 debt.
In its May 16 ruling, the Court of Appeal found the lower court erred in dismissing enforcement proceedings, ordering the case remitted for rehearing with proper joinder of all parties while clarifying that receivers possess broad enforcement powers independent of the Land Act.
The decision marks a significant development in Lord Luani’s protracted effort to recover the debt originally awarded in 2017, which had stalled despite a 2020 charging order securing Nuku’s tax allotment and two Veitongo leases, as lands officials cited procedural barriers to transfer.
In a 2017 Appeal Court judgment, Lord Nuku had been ordered to pay Lord Luani the substantial sum.
Despite obtaining a 2020 charging order over Nuku’s assets, including a tax allotment and two leases (9436 and 9473) at Veitongo, enforcement stalled when the Minister of Lands claimed inability to transfer the leases without Nuku’s consent.
By extending the receivership term and ordering costs against the Minister of Lands, the Court of Appeal has strengthened creditors’ ability to enforce judgments against land assets while setting the stage for potentially resolving one of Tonga’s most high-profile noble debt cases.
The Court of Appeal criticized the Supreme Court’s handling of the case, particularly its dismissal of the Receiver’s application due to the absence of key parties, stating this procedural issue could have been resolved by joining Lord Nuku and the lessees rather than rejecting the claim outright.
The Court of Appeal clarified several important legal principles.
It affirmed that receivers appointed for equitable execution have broad powers to enforce judgments, including authority that may override provisions of the Land Act.
The judges emphasised that charging orders operate independently of the Land Act and don’t require consent from the Minister or landholders.
With the case now remitted to the Supreme Court, the next phase will require formal joinder of Lord Nuku and the leaseholders, potentially paving the way for Lord Luani to finally obtain the disputed properties.
The Court of Appeal also ordered the respondent, the Minister of Lands, to pay the appellant’s costs, adding financial pressure to resolve the long-running dispute.
The extended receivership term through February 2026 provides Warner with a two-year window to complete the complex recovery process.
