LAW REPORTS.

Dominion, Volume 6, Issue 1597, 14 November 1912, Page 9

LAW REPORTS.

SUPREME COURT. ' SAWMILLER AND BUILDERS. ; PAYMENT FOR TIMBER. BY TRANSFER OF MORTGAGE. Litigation arising out of an arrangement to'pay, by transfer of mortgages, for the supply of timber' for house building, culminated in a civil action, which was commenced at tho Supreme Court yesterday morning, before the Chief Justice (Sdr Robert Stout). The parties were: James 'Drysdale, sawmiller, of , Nireaha, plaintiff, and William Joseph. Ferkins, builder, and Atinio Ferkins (wife of James I'erkins, builder), of Wellington, and carrying On business Under the style' of F. and W. Ferkins, defendants. Air. C- P. Skerrott, K.C.; with Mr. T. M. Page, of Eketahuna, appeared for Brysdale; while Mr M. Myers appeared for the defendants, In the statement of claim it was set forth that Drysdale commenced to supply timber'to the Jinu of F. and W. Forkins in August, 1904, according as the latter required in connection with their 1/usiness in Wellington. It was'agreed between the parties at the .commencement of the Healings that Drysdale should supply timber on-credit, and that I\ and W. Ferkins should from time to time transfer to Brj-sdale such mortgages as they might think proper. F. and W. Ferkins further represented and warranted (so it was alleged), that suchi mortgages so to be transferred would bo "good mortgagee" (meaning thereby that such, mortgages were a sufficient security for tho repayment of the principal and interest). There was also an understanding that F. and W. Ferkins should collect the principal and'interest when due, and rtmit tho amounts to Drysdale. The value of, the timber. supplied by Drysdale, from August,. 1901, to March, 1908, was .£3950 Bs. 6d., and the amount of mortgages handed |o Drysffa'lo ivj&'..£3sl2 18s. Id. The pay'inent of'the dilference (,£437 10s. 4d.) was secured by a mortgage, dated June 5,1908, jnrliicli had not yet fallen duo, and' for ;thatireason'-he wasrnofsumg to recover 'this .'sum. however, that, in iespect of several of the second mortgages ■Jield i by him, interest was.in arrear and She principal had become payable; more'over,' Borne-of"the .owners had abandoned ;the properties, and the , mortgages were .of no value. After giving credit for the .amount of mortgages not proved valueless, ,'or realised,- Drysdale claimed to recover five .sum of .£2711 6s. 10d., which ho alleged ixos due, either for timber supplied or by reason of the warranty given that the mortgages were "sood," or by reason of the promise to see that the ■amounts due were paid. Drysdale also, asked that accounts be .taken and that F. and'W.'Ferldns be declared liable for/the payment of the ■ deficiency. In the statement of defence, F-. and W. Ferkins generally admitted the transactions in timber and the transfer of the mortgages, They said that tho arrangement was that they were.to receive credit for tho mortgages as for cash, and that in the event of- the mortgages not being paid, or failing to realiso their full amount'and' interest, Drysdale was to have no claim upon, them- (F. and W. Ferkins) for tho deficiency. ' , In opening the case for the plaintiff, , Mr. Skerrett said that.-two main questions' were .presented in the action:— '(1) Did-the plaintiff in fact accept " . second mortgages from the defendants, as payment' pro: tanto of the price of ' goods supplied,. 'without the defendants Leiug concerned with the payment either of principal or interest to plaintiff?, . ■ • (2) Did the defendants, whon they : handed over the mortgages to plaintiff, warrant that they were good mortgages, and guarantee payment of principal and interest? Hearing of evidence opoupiod the Courtuntil late in the evening. Legal argument.will be taken on u .' COMPENSATION COURT. ' ; j '• FIXTURES. ARRANGED. The.'Chief'Justice (Sir Robert Stout) has mode the following fixtures for. compensation cases to bo heard in Wellington:—Wednesday, December 4, Taylor v. the Wellington City Corporation: Thursday, December 12, the Westport Coal Co., Ltd., v. the Wellington City Corporation (to follow Samplo y. Cook). , , IN DIVORCE. Cases sot- down- for- hearingi in' divorce at the current sessions of the Supremo Court .will be taken by Mr. Justice Chapman at 10 o'clock -to-morrow morning.