GUARANTEE CALLED UP.

Auckland Star, Volume LIX, Issue 232, 1 October 1928, Page 5

GUARANTEE CALLED UP.

APPEAL AGAINST JUDGMENT.

MR. LYSNAR CONDUCTS CASE. (By Telegraph.—Press Association.) WELLINGTON, this day. The Court of Appeal to-day was engaged in hearing the case of William Douglas Lysnar, of Gisborne, solicitor, versus De Pelichet, MoLeod and Co., Ltd. Appellant appeared in person, and the respondent company was represented by Mr. M. Myers, K.C. and Mr. Wauchop. The case consists of two appeals of W. D. Lysnar from the decisions of Mr. Justice Ostler, given in August of this year. The facts leading to the first appeal are that in March, 1926, G. H. Lysnar, a brother of appellant, borrowed from the respondent company £5000, and, to secure in part this advance, appellant executed in favour of the respondent company a guarantee to the extent of £3000. The deed of guarantee contained the provision that the appellant should not be entitled to call upon the respondent company to transfer to him whatever securities they held in respect of the debt until the whole of the moneys due to them bv G. H. Lysnar should be paid. In 19*27 G. H. Lysnar got into financial difficulties and a demand was made upon appellant for the amount of his guarantee. In June of that year appellant replied, stating that he would pay the amount if the respondent company would immediately upon receiving payment transfer to him all the securities they held from G. H. Lysnar to secure their whole indebtedness. This they refused to do, and an action was brought on the guarantee. Judgment was given for the respondent company for the sum -of £3000 and interest from the date of the first demand, Appellant is now appealing from this decision, on the ground that it wis erroneous in its determination of the I law.