LAW REPORTS. SUPREME COURT.

Dominion, Volume 5, Issue 1458, 5 June 1912, Page 3

LAW REPORTS.

SUPREME COURT.

MOOT POINT(N INSURANCE, An interesting .cj)iesli'on Cf '.law was sic-: cided by Mr. ; jlis.tveb 'C'po.p.ir.; yesterday,, in ; a friendly attipn li'etw.ce.n. tlio Waivarai?a Sawinillers' A'eiiideiit JjisiiraiiCO' &smpany,; plaintiff, anil (ho jfiinawaW 'J'ii.D.fjC.r Company, defendant. A'!* -ijwcsJt-ipn submitted in the sununons ivivs- whether .11) p„ defendant eomi'mny Ihiil/'jipAybr to bt'PQi'UO » member of -it .piii'p'lv- nriitual company wit.h. unlimited liability. IJe-.' fendant compahv.liad ii'c .p.bKo.r.■u.iViler.j.ts' articles of 't.iv t'iifeo- Sliiiiyy i)< anv companv or-enter -iiiM. in.\unvirec' business, and tlie, Cgiitt: wiis. asked, to say.: whether Mich. ;;i. .■ti>..ft"|itSi' )\ ft""""'insurance coiii'pa'ifv coiildbe implied from the defendant- .■ibni'pai.iy's ordinary .right to insure. .Mr. H. C. E-; KpliinSoii. p.f Mas'tertjori; : appeared fnr ; ';-|lnV '.p.liiiii.Uil.s.,; and Mr. Cj B. Mori.-on l'b.r ; 'thV'doi'biidaufs, His Honoiuv saijV ifoiiW b> 9. dangerous principle ;tb, cynccdrr.fhat sii.ch.. an arranKcnivii.t-e'ou.lit. bjb /implied. ; 'l.i was argued that, /because: Si'-cipnipaiiy' w.ag- .;i.ii'- ■ thoriscd to insure'.tfseif;' M : cpijUl- tn'teT into a contract/ 'nfutWily'tb/. i'li's.u'RV pthe.r people. In opinjoiv it could; do so only if; : i.t :lUid/'cj;j)i;css power. Mr. IfoljinSriii jftslcpil: iliis,.Hpnpii.r to. (ley cide whether 'H'li'fe-.SaWiiiiUiri's' : Accident. Company itself ■Wiis i 'e.ntitled..to. accept linn itcd liability/jAnirianies;'. as imienibers, Assuming that ijißit'e'Biriiwiiics'liau' th"e : ppwer to join. '■/ ■"./■'' ...■'!;■' ~ .... }tis HonoiM:'./.s'aid/,fiia't.. pr.iina; facie; ih>. Sawnn'llcrs' /Accident: Conuiany'" was, -%\-- thoriscd to enter into .jinch: a : Contract, if. the other company':had ..the : «b/w.e.i>. . 'He' would not decide : :tfe;t|fetipm\ Jiowcterv: as it was ]ipt.' : iv.e.cessar.vrto.r n of the present :Su'niirioiis.,'iii:,;V : iew ,of ..t'ijß.i fact that thc.;,M'a"3iaVi-at'tt'. a'inibec Pp- could not legally enter/'intb/.Siieli :a tfmtiScL ■ . Without calling; oil. M : i/' . Ins ' Honour 2avD;jJ!idgnieii.t!:fo^\.th''bXAlaVia;\ya(u:, Timber Co., which had been i"aisgdi;Ti'a':\th.Q'":-npgati.ve. HAR B 0 U.R'. :-Bb"AR ty --.RE NSiQNS, The Wclling&h'&aVbouri/Bpatd./is,. ■f'bhf' sidering to- establish; a superannuation: fund/for.- 'employees .iind ; : the board has;:inet^ithirfhislnitial dim--: culty—that thV'-SiipCTaniiiiatjp'ii..Act"'pro j: vides that ■be;-- , 'cn!c.ulat.e'di' only upon tlitf.' -leiigtli'.,of/ thry "Period;. Jthati, the employee'li'asic'critribute.d. tp,;ih'e;f uii'ds.: and not upbn'klen'gtli ot'v,service;' ■■ tl'ho board has realised; ;tliat//tlie: elderly servants of the/;b'oa'rcl; : :; *idip,. sunder . : J.lm scheme, w.ould: m their salary'/tlfau^yo^nger:'men.' would ■•■ receive thp time came foW-thejii.:::£bH : ctii'«-: '..'J'ha Act; gives power. m-iko an additional;:allowaiicp/tb : employees.,jil respect to tlieir'''se'n;ice'fn'lor.-t0.'41.i6' com:, ing into' foreeiofi'-thoJAct: /The fi.uesv tjon hns bc'e'iv. : vr.a'iped■',,as ; to,- Mic-: tlier, whcui'/a/iJbcal:'tody': is establisliin<» at? ysii'perauriuafiqnv;,scheme, ■: it can ex'erci?o'i!s-dis'c,'r'eti'o,n ift-fiiiiifesucli'■ allowance, to i the ■discretio'ii^b^;' ( ";tli'e:,a , ct«al';'autlipiv: ities in power:, .wheh'.'.ths: fi.nie.: c'aiiifi 'for the discretion' I>y IM" grant of spocific'iatripji ■ In order lor'oljlaiji , :Ji'i^u>!ipjilaJ.iTe,nrp-; noiinceinent 6ri?t'lfe'',poiixt'j..the r :'\\ , 'ell.inßt'p'u; Harbour «»»!-' inons under ■■ ;tK&'.Dcc'laratpiy' Jiidgnie.nts: Act. i'; ; 3 : if ; : .«.' '■.;......■ 'I'ho ease was:iiearil .by".the:C!iief-.Tu.st.icG (Sir Itobert Stput VJ : '■■,Mr.::%s.. JvVestAu vrVpresented t lift. lioS rcl: i'dVln inf i fT.);< : aii.d. - the Solicitor-Gpneral;. : . His Honour" : :'g'avc\; ! ]U(lg'msiit:;;y : estefday;, ; He found !.au--'. thorised under^Sectioji^lli'jof^jthe^iVct■'■■to; enter into with .its eiupldi;ei's: ; a's;':ivas'.contemi!lafßil;.; A local aHthqVUJV■P9 , u^ ( i : ••fiP^■tf e^M^■'J^l P !, cretion of itsssi'iccessbrs': 'iyso s ,,it,:..CAU.ld not so oarniarkv?aiij:',/mprieys;;::sei:i.:asidp as Ip prevcnt' , .^feuccoqdi]iß^ljo , a>:(r. 'fronr nv.iking it available, for. qtlier- purppses;His Honour I'eriuire to geOstatiiKry effect to its ritattef'of-es-tablishing n >special;vfiiml.; ;' Costs X 5 ss:{ : )vero- 'allpwcd. '.against' 'the board. ;''*, V;!;ir;-"." '-,■■ General and'.paf.tjc'ul'iii-vdanyiiges.fe'r alleged .elri.inied-; in a civil jictipiiiPiVVwh'ich;''tlXe : tice (Sir ;:gayp:' :jiulgiiient ; yesterday. Thetpar'fic , s ; ;tb*'tli9 ;, aetjpjV.^v;pfj-' John !of BuilsV' I'Ved. Siiiipsoii,;jfarnVer;:':pf r lohake.a,. IClntt, farnier,;'of.'.Ohakea, .Sand'.: >'.laiiv'es Hull, bank niaiiagbr^/of■.3iills v plajntiffs.; ■ and Uso AVolliiijjtjoiy.Vipit^V^MJV*?*?^^'-'"^"-: Comniissieners;.."f ph..'tlfer.Jb.aii..."fdi*' 1 ■J'i-ipifc". ways l , aving:'sa'n'!l'".TewJv : JTaIL d'efeiid-': ants. &-;yt;-Jx^:-:- v Mr. C. H. Treadwellj-'a'piK'a'rfd ibr .tlie'.; plaintiffs, andj;f.he£C!tx ''SpjicitpV (Mr|. J ; .| fl'Sliea) appea'rfd- ,, ;fpV : .yh.p.' ; 'Siiiki.nj{;\ , -]r.uj)(V Commissioners;'' 'rji'i. ,V- ! .,:■ '■{' '•'■,".''.;, ; ,■ It was sct'=:;lpiifc-;Jlt- I 'th'i!:.'-*Jatppi'Pijt of claim that biit-o'r.s'-'aliiiiit:.' Xovbni'b'er 2',ItltO, plaint ,b;Hrers)f ..applied to the iSinkms./rinld' .Clommifsioii:-' ers for a 1 oan.'.'.:of ."pii .-itlie' secur.itv-:' of 860 acres ; aki;.: ? 'TJte; Sinking J'uiid.-j!o'nimissibners:.refiiscd) to.' advance this :;suni;y;l)uWsbiif ;'(i;'IHIO, after thp\:laiid : iliad : X 2285, they fpr. fivo years at:;s3ier.'fc.ent^.^hp..■plaintiffs' (Walker and but the Sinlciii(j."i!'''l!'und'> .'Goiiiiiti^i&ii_pi|a: ■ siibsetiuently loan. In cprisegnencpj-ofj.'jtlxi'si . r fhe.>plainv tiffs (Walker^an(lvi;bthers)l> ; <illege(i ."-fliat! they were pnf?:/tii*7Kr e and loss, an(l;.'.ttiafi.'thpy.'iiltiniat.ely; ]ia'd-' to raise a loan^Si^'tljer.iseeiijiif.v'-.p'f. ; - ihp: property at. I!6r' , .th'ese...'i ; .ea-. sens the plaititifi.Si ; '.(W.alkbi? and; bthers'l: claimed ,£95 geiieVah'daniag'e's' ':aii.d ; ,£\3. Os. 7d. specials/daihages";,. In defence, '.Cpmniisr'. sipners put fbi , ward.i;a;^jpiieyaV' , de)u)('iy'.'niiil. contended' -liee.ii. i,r : . breach of flip; .sbcii'rity. in (jucstiaii, iiiiasnij'icli' ja's\"tli'6"'se.'cii.fity;: wias not a suitaWer.bne." fbi; ..aiiii.! would have beeniuiliija; ''yircs' ,bf' tlio; .co.K': poration, a public. 'body. t\ir-. : ther, it w-as. | ialleged;"t,ha't' the. nlainti.'ffs knew or ought : tp,:'''.haye: kiipwii lliat. tlio; security was nbt'.. :s i;';suitable bpefiir f'r'iistees to invest*«TOit^V,l!p'V" : a;'' ; .f«!:rlipr "de.r. fence, the Sinking". Tiind: ..Cpmiiiissipiiers' contended thatf'*it , ' v iVpulil i . , 'hpye : ' , -ljMn , . ,, in. : breach of trust:; ; K;~l«n<is;pA.t ; h'e yaljiatipn made, inasniiicb-^Sj ■.'.yalu'erV 1 ' 'wiis.'.'rei : commended byitlib iplaihtiffl and'. the.ir soliwitors, and';' th'p'J : plaiu.tiirs.''Kiibw), nr. ought to havp' : i'.kiipjifn, 'flint i,t .'.w-buld: havo been a. breach.';^ 1 trust t.b' l'piid. oilsuch a valuatibn':.' His Hoiiouiv'.li'eld-that;:ha'd...tlip i Ipan been' granted no bfp'aclr ..rif trust .w.bu.ld.■ liavr-' been cpinmitte'ti;.;;' He;<: iipweve'r; "iip'lip'l'd the Comipissibnb'rs:V : e6ii.fention : lliat''''tlio. contract, shouldrhave. been made,' under' seal. He thorefprp/'gavbyudgiiibiit for (lie. defendants, wttlf, costis'J;7' 7s.j and di'fe bursements. '.■'■■.■.