GUARANTORS SUED.

Dominion, Volume 2, Issue 616, 20 September 1909, Page 10

GUARANTORS SUED.

;r;.! A , difference pf"ppihiqp ;: anioiig! guarantors, of ; tlie '-rn'eper-Waione'jpairy'' Company, in : rela- '■' tionto'% s^m'of-itoUOO called up by the bank,. ''.■'.'..'! has.'just -.been -settled, by -'a. judgment of Mr.; ; . Justice/Cooper. ;. : ....:■•'.;V.-: :■'. _ /■ •-.' ;■■ It; appears that :in-the year 1900- the' Wcber- »,. .Wairino.-'.pairy Factory. Company, Limited,, was, i established;••: and commenced '.The ;:- company; .instead of raising its 'capital in the iusual ..way* namely,. by. subscription by the ; •': ■ v shareholders, borrowed the < whole of lts cap- ; ! ital,' -at'i'ithat timb;JS2ooo, from the Bank, of ;'¥New.iSonth,.'Wales at.Dannevirko.'-'-To,secure-' ;' repaym'enk> >, of. this sum 'of money; tho./.bank, took a: joint and several "'.,"guartotee'i;signed by ' the .then shareholders of ■ the• company. ■ This. was 'a' joint:and several v :"-;gunrantee.for the snin'pf £2000, and'-wns signed ,'■ by. over':'thirty includingi'Messrs. Fa- '" ! bian,-Misseni and- Timothy jrQuinn,,and Mrs. ' :.'S.- A/.Wy.lie, 'and also by Messrs. L. G. Crosso 1 v!;-..'and :James;.M'Kenzie: ...In J;he :year jISO2 tho '■, 'company -wanted :-more .money,-: and .'the .bank -'■ 9agreed : itp Ut them:have a. further ■ wfilOOO,: pro-, J- Tided thatlthissnin was secured -by. a fnrther. ; i'guarantee-Vsighed-ito ,its : Satisfaction. "Over ti'ithiTty-;persons , signed the 'second/guarantee,. ' 'which waSvfor a sum of:>JSSOfIO; !and-npt..for the: -'■extra sMOOO alonW ' llessrs.v Fabian, Missen, , . ■'and^Ti'iJt'Quinn' and Mrs. S. A.. Wylie ■ re- :',>' fused.tpj'-'aiid did not,;sign this second '■gnaian-j ■■■ : . , '-.-.teei'-beca > 66B'they'..had. ceased to have 'any v ih-' ' 'rtereet 'ihSthe company. Messrs. L....G.\,Crosso, ■ :■:.James , and Vothers,'- ho««yer, ; ..':did '-■-ri'sigiiith'isisecond guarantee. , .The company-car-XSM riedion.bjißiness ;f6r;some years 'with .varying , ' ; ':. : euccess;vßut- ultimately it -.'.iras-: decided to-wind '/'"the coili'piiiytipi'aiid' the'bank topk .proce«d- ; :i :.iings''tp;'p'fi?teo(;. , .;itsclf. I Consequently/the.bank ; v -fisauedirtswrit a'gaiiist'.'five; of; the'.'persdhs who. : " • had,' signed.'. the ."secpnil. guarantee,:;of -.'whom . -r'UessrsljTCTflsso :'and. M'Kenzi'e"'.'■ wore.vtwd, 'Shd* '• : the .judgment against these flee '.' .'for-' thes ; anlonnf due,',namely, , a, little, 'over' .-.■ ' ; .'i£3ooo.'«Thisfe3dive subsequently :paid up the' '. {• f '■.'.■'- an\actioh^agljbist-alluthevothe,i w ;'S;bo{h. guarafttees ,- fprtthejMcqvcrjwSja'^pfpp ■■«;, tionate; , . share :from each', signatory., . This ac-- , M'QuiJui-. y.y grounds.'' ; v. ; ■: S' :'-.- , ; , ,-V|'-';*:'-! / !':T , 'V , J;' , V-V ,r S"."-' '-.:'*; :>: i-' ■■vi':. ; ]^.'4ustiOT..(^per', ; has:i'jnst ! ;.deli juclg- , ' - : pmeiit'in their ■fayour ) .'at:the same time, reserv- ■':■■; ing Mearo<.tP' the iplainKffs to';mover for 'judg-' against: all' the others'.:' : The'.'-judEmeht;i ,: „■ whioh;is a-long'one,'points'..out : :that':the.Bank' .-'V?bf rNew afteri the,second guarnn- , .- ; ttee :: was.signed;,relied only ';'pn ',it 'and. not; on ■j'.-the-first guarantee, and'that' the:'first,"guaran- , . ••I.'ifee.'-."though• not, : actually oancelled,. became :a •-?-passive "document'after the'second,'guarantee '.vVrVasV acted upon;;'. also i that all "cheques ;drawn' 'i-V'-.iiipon: the bankisubsequentlj;'. toVthe : sig.ning"of; '3; the : second' 'guarantee., were '.drawn - , against the'' v.;. eecurity, of/ that guarantee..: alone, 'while 'all: il"■'■/'deposib;.paid,into.theibank.' : 'wen(£first to.,die/' ;.',:"oharge'iiabiEty : :oii 'tho'.first.'gntirantee accord..■ing:.to; tho rule, laid down in Clayton's 'cate'." :'.,As;;'after the.signing of-tho;,isecond' guarantee,, vfover :'jE9OOO were paid ■into-.the-company/s; I.'count: at 'thebank," the .first l- 'gu'arantee . had :'-' been?/fully discharged:and.'with'it^the'signa-. .;:, torifis,'..thereof.,: Oonsequeiitly,; as.-.Messrs.'. , Fa- ■ ;': biani ~ Missen;, ,M 'Qriihli,' and-Jlrs. '■'Wylie.'.'had' S' , - the first guarantee .only,'they were fully '■'I-';, discharged''from liability.',:. , ; . . ••■".- ■,'": ','v-vSIr: T. H. G.- Lloyd acted'for Messrs.' Crosso ' ,'and others, (theplaintiffs), and Mr.':P.:B;:Fitz- :':'■:. herb.tTtifor ,the successful defendants.-. . .'• -,' ;