LAW REPORTS.

Dominion, Volume 6, Issue 1841, 29 August 1913, Page 5

LAW REPORTS.

SUPREME COURT. MOTHER'S CLAIM ON SON'S' ESTATE. \ THE PROOF OF DEBT. ASSIGNEE'S ,RULINC DISPUTED. O The Official Assignee at iJannevfrko (Mr. N. L. Gurr), having rejected a proof of debt in connection with the bankrupt estate of Herbert Atkinson Thomson, bookseller, an appeal was lodged yesterday, beforo his Honour Mr. Justice Chapman, by a creditor— 'Amelia Sarah Thomson, mother of the bankrupt. In-his affidavit tho,Official Assignee that tho statutory meeting, of creditors had been called for July 14, but there was no quorum. Bankrupt and several persons Tvero present at his office during the discussion that ensued, and the bankrupt was questioned as to the details of his mother's claim of £550 against the estate. He gave answers that-, did not agree with Statements made by. him- at a. later meeting. At this second meeting (held on July 28) the bankrupt was further questioned as to the particulars of his mother's claim, but his answers were deemed to be so inconsistent and. unsatisfactory tliat he,(the Assignee) decided to reject Mrs. Thomson's proof .of debt. Bankrupt's statement., indicated that the money (if . any passed) from the mother to the son', was a gift and. not a loan. Mr. Neave, in opening the case on behalf of Mrs. Thomson, said that tho sum involved (£550) had been advanced by her son, who filed his schedule on July 4. The two principal creditors wore Mrs. Thomson and Mr. Newett, whoso Dannevirko busjnoss /bankrupt had purchased. The mother's proof had . been challenged ' by Mr. Newett, wlio had made certain allegations in consequence of, which the Official Assignee had decided 'to reject, the proof v and leave Mrs. Thomson to establish her right' to prove 'against the estate. There had been a quarrel between tho two creditors and the proceedings at the meeting had been somewhat heated. Mrs. Thomson held a security given by her son on tho stock and fittings, but there was'some doubt as to the identity of the chattels and Mrs. Thomson agreed to rank as an unsecured creditor. The only question was whether this wae a genuine debt or a gift; Prior to-1908 Mr. Thomson, sen., had been proprietor of tho "Hunterville Express," and in April tliat business had been leased to Mr. Keay, bankrupt having had charge of tho business for a few weeks previously, during which time he paid £1 a week to his mother. Mr. Keay eventually purchased tho business for £850, out of which the son paid liabilities for £239 and collected, hook debts amounting to £166, so thatTie had £777 left. Ho paid his mother£l7o on Septembor 30, 1908, £30 on November 16, £30 on January 5. and £55 on August 27,. leaving £492 12s. 6d. owing, together with £58 as accrued interest. With -the purchase money bankrupt purchased a bookseller's business at Pahiatua for £360, and this he sold fo'ur years later for £722. Unfortunately; .whilst; finding. a f pp'rc,liaser, he lost £100 in a ilaw suit ,for breach.of contract with a would-be purchaser/After selling tho business ho came to reBid® with his parents at Wellington, and his mother asked for.the repayment ..of the balance, but, eventual,",' she allowed her son to use the mc.nev for the purchase of the Dannevirko business on condition that he gave her. security on the -stock-in-trade. The. transactions showed a genuine indebtedness by bankrupt to his mother. Herbert Thomson gave evidence. Ho denied that he had paid his mother more interest than was due. In 1910* he had paid nothing as he had had to find £200 in doctors'.bills. Amelia Sarah Thompson denied any intention of making a gift of the business or the sale-money to her son, as that was the only means of. livelihood which she had. She had two sons and two daughters in business, and all lived with her, paying for their board, besides which : she had fivo children awav from home. She could not therefore give all the estate to one son to tho prejudice of the other nine .'children. Her son had paid, her about £30 in four years as interest. He had no interest in the' Pahiatua business. Hugh C. Thompson stated -that he had approved of the advance of the money to his son, but there was no intention of making a gift of it'. His son was manager of the "Express," but that arrangement was not continued at Pahiatua or Dannevirke. : Sir. T. C. Hislop contended that the action of the Official Assignee, was a proper one. His Honour agreed, but added that he was quite satisfied that an honest case had been made out. Having'heard the evidence and tho entries from appellant's book he deemed it improbable that tho money would be given to ono son by a mother with ten children. The appeal would be allowed with costs out of the estate. HOUSE & STREET LINE. i' / HITCH IN A BUILDING. JOB. A case was resumed and concluded yesterday (after his Honour Mr. Justice Sim had been,, engaged with tho hearing all day on Wednosday) in which Henry Edwin Manning, contractor, Ellis Avenue, sued ilrs. Ellen Hall, St. Mary's Street, for £36, balance due on a building contract, plaintiff having erected for J] rs. Hall a house at the corner of Tinakori Road and St. Mary's Street, which, on being "found to have encroached 4J feet on tho roadway,.had to bo reorganised and made smaller. The defence was continued yesterday, Mr. W. H. D. Bell contending that no further liability' beyond tho .contract , price had been incurred, except a few. small extras, and that, on .tho other hand, a. saving had been effected through the house being made smaller than was originally intended. After a further t\vo. hours' hearing his Eonour- reserved judgment.' ■ OTHER BUSINESS. x / CASE AGAINST NORWICH UNION. A civil action, in which Mrffv Ellen Macarfchy is claiming £332 10$. from the Norwich Union Life Insurance Company. has been set down for hearing at the' Supreme Court on Monday week.Addresses Unknown. Pearson and Co., Ltd., claimed £33 lis. 3d. from Roland T. Robertson, formerly a Wellington merchant (pre'sent address unknown) for wines and spirits supplied, and judgment was 1 given for the amount claimed and costs (£8 Bs.). Mr. W. Percy was for the plaintiffs, James Ferguson, storekeeper, Waipawa, was sued by Bannatyne and Hunter for £22 Bs. 5d., silk and tobacco supplied. Mr. T. C. Hislop, ed in this case also that .defendant's whereabouts were' unknown. . Judgment was given for the amount claimed, £8 Bs., costs, and disbursements. Divorce Court. Mr. Justice . Chapinan ■ held a . short sitting of; thq Divorce Court yesterday there being only, one undefended, case, <"n which Mary Elise Neill. applied,

through Mr.- D. Smith, for a decree absolute, she having some months ago been granted a divorce from her husband, Thomas Neil!. The application was granted, petitioner to have the custody of the one child.