WHARF UNION FUNDS.

Dominion, Volume 7, Issue 1987, 18 February 1914, Page 8

WHARF UNION FUNDS.

TEST CASE DECIDED.

EXECUTIVE CAN OPERATE. ON BANK ACCOUNT. 'i'lio waterside test case was decided by the Supreme Court yesterday. It will be remembered that, recently, the Waterside Union's bankers (Bank of Now Zealand) refused to allow the union's account to bo further operated on by the executive pending a decision by the Court. The bank had been warned, by certain members of the union fhat the executive werel not entitled to operate on the'moneys'. Yesterday's ' judgment, ' however, went against this faction. The executive are to.control. At the hearing, , Sir. H. F. Von Haast appeared for the plaintiffs, tho Wellington Wharf Labourers' Union, Mr. W. A. Sim for the defendant Bank of New Zealand, Mr. A. W. Blair for the' defendant Green, and Mr. P. J. O'Regan for defendant Goodall, tho last two .defendants being among those members of tho union , who were opposed to the executive of the union using the.unioh's funds. ■ ■ The Four Materia! Union Rules. The Chief Justice, who delivered judgment, said that the Court", had bceii asked by summons to interpret or construe therules of the union. His-Hon-our traversed Rules 10, 11, 13, and 18, which bpro on the case. Rule 11 provides inter alia that the president shall countersign all cheques, monay orders, ond negotiable instruments. Rule 13 defines the functions of the secretary and treasurer, and spates inter alia that "ho shall take charge: of the funds of tho union. He shall receive all moneve due to tho union, and pay same to the credit of the union in a bank to be determined by the'committee, and he shall make all payments due by tho union after such accounts have been duly passed by tho committee" Rule 18 provides: Two trustees shall ho appointed annually,"who shall have control of the property • of tho union, and who shall invest the.funds not required for immediate use in 6uch manner, as the union '; niny direct. They shall sign all orders for withdrawal .of trustmoneys from the bank or elsewhere, . when required to do so by a resolution of the. union. '. . , \ '•

His Honour Interprets Them. - v "Tlie union,", said His Honour, "receives subscriptions from its members. These moneys were, in pursuance of Rulo 13, paid into ihe bank. Tho committee, by. resolution, authorised moneys to be withdrawn from.tho bank for the ordinary expenses of the union, tho cheques to bo signed by the president, the secretary,' and the treasurer. Several members of the union (P. C. Green and others) wrote to the bank .protesting, ■ and drawing particular attention to Rulo 18 re trustees. In consequence of this protest the bank declined to pay, and this originating summons was brought. . .••./ ■ ... '■■:..■. : "It will,be observed," said 'His Honour, "that 'these protesting members held that; no money could bo withdrawn without 'tho authority of a. , legallyconstituted meeting of tho union. . In tho argument before tho Court this contention was not rcliod on. Tho contention was that no money could bo withdrawn without tho sanction of the tiusteos, and Rulo 18 was relied on as showing that the trustees had .tho. sole power' to deal with moneys even wifhout the sanction of the committee or the union, dn fact, it was said that no contract could bp made that might creato liability on the funds of the union' without the Gauction of tho trustees. This is attributing,to Rule 18 a greater significance than has been, held to apply to tho provisions of the Trade Unions Act, and under that Act tlie trustees have all the property of the union vested in them. The rules, like a statute, haveto be interpreted as a whole, and duo eifect. givoni to every one of them. If no contract can be made, no funds paid away without- the authority of the trustees, I am at a loss to understand what, functions under Rule 10 aro left to tho oxecutive, and what was the need of the counter-signature of the president under Rule 11, or what charge has tho secretary. and treasurer under Rulo 13 which says "he shall tako charge of tho funds of the union,' or how can ho pay accounts under the same rule! . How Much Power Have tho Trustees? "In my opinion, the word 'property , in Rulo 18 does not have tho wide meaning attributed to ft. It it had there was no need of the latter part of the rulo authorising the,trustees to invest the funds not required for immediate use, and requiring them to sign 'all orders) for withdrawal of trust moneys from the bank.' This obviously means —expressio unius exclusio alterius—that somo other authority is to withdraw from the bank tho moneys that aro not trust moneys. To read the 18th Rule otherwise wquld be to delete Rulo 10 from the lules, for there would be, as I have said, no governance left to the executive. v Executive's Power. i "I ain therefore of opinion that the oxecutive can enter into contracts intra vires of tho union, can withdraw {jinds (not sot aside as trust funds) from the hank for ordinary expenses, and do what directors of companies can ordinarily do, manage and govern the union There is by this interpretation nowcr. .left to the trustees. The trust iund they will manage as the union directs, and, if landed or other property, they will as trustees control it for the benefit of tho cestui qui trust, the union. Effect can in this way be given to'ajl tho rules referred to." As to costs, His Honour directed that tho union pay their own, and that the union should also pay £5 ss. costs to each of the other defendants appearing.