The claimants, Kakula Island Resorts Ltd. and Douglas Bailey, claimed damages against the two defendants, Russel Nari and the Government of the Republic of Vanuatu. The claimants operated companies and businesses devoted to tourism and development, and the first defendant, Mr. Nari, was the Deputy Director of the Environment Unit.

In 2000 the claimant acquired a lease of a small island, Rabbit Island, intending to develop it to a tourist resort. After submitting a development application, the company was directed to file an environment impact assessment under the Environment Management and Conservation Act. The company complied and the Environment Unit required a full-scale environment impact assessment. Mr. Nari also visited the development without consent from the company, and the Environment Unit then order the company to cease work. The claimants therefore claimed damages for trespass, negligence, injurious falsehood, defamation and breach of confidence and general damages and exemplary damages. The grounds were that income had been lost when the delays were caused and that the full environmental impact assessment had been costly.

The defendants on the other hand meant that the claimants were in breach of the laws of Vanuatu, in particular the environmental laws. They meant that their orders were lawful and that the development did not have the proper approvals. However, they did not file a defence and Mr. Nari did not attend Court.

The Claimants were awarded damages for the costs of the unnecessary environmental impact assessment, he cessation of work due to trespass and negligence, their additional operational costs and the loss of profit.