SUPREME COURT.

Dominion, Volume 6, Issue 1753, 19 May 1913, Page 6

SUPREME COURT.

FORFEITURE OF INTEREST. Mr. Justice Chapman delivered reserved judgment in tlw Supreme Court on Saturday morning in an originating summons in which a question had been submitted to the Court in connection with the will of tho late Daniel M'Gregor. Tho parties were tho Public Trustee, plaintiff, and Mark Johnston, of New Plymouth, and Alexander Gore Brett, of Parnell, publisher, defendants. Mr. J. W. Mac Donald (solicitor to tho Public Trust Office) appeared for tho plaintiff, and Mr. Alexander Dunn, for tho defendants. Daniel M'Gregor, of Normanby,, farmer, died on February 19, 181)0, and his executors wero granted probate of tho will. On December 30, 1890, tho Supremo Court appointed the Public Trustee trustee in respect of tho trusts of one seventh part of the residue of tho estate for his son Duncan Henry M'Gregor. Theso trusts wero to pay tho income to Duncan Henry' M'Gregor for his life, or i:ntil ho did something whereby tho income became vested in some otlier person. After the determination of tho trusts in Tespcct of the income, the capital was to bo held for his lawful children, or, failing him, to his brother and sisters, and their issue, whom the defendants represented. On October 18, 1911, Duncan Henry M'Gregor, who lived in South Africa for many years, mortgaged his interest to one John Edward H. Gentle, of Johannesburg. In an action brought against the Public Trustee to obtain relief from tho consequences of his forfeiture, the Supremo Court affirmed that ho had lost all interest under tho trust. He is a bachelor, and the question arose as to the disposition of the capital and income after his doatli, and whether tho interests of his brothers and sisters had been accelerated. 11l giving judgment, his Honour held: (a) That the capital was to bo held tho death of Duncan Henry M'Gregor for the benefit of any children he might possibly have if ho married in the future; and (b) that 'tho income was to be accumulated as an accessory to tho capital funds for the benefit of such persons as ultimately come within tho description of tho class and showed themselves entitled to benefit, such accumulation to run only for 21 years from tho forfeiture of tho income, that being tho period allowed by the Thellusson Act, 1802. . Costs of the parties are to be paid out of tho fund.