COURT OF APPEAL

Dominion, Volume 8, Issue 2420, 27 March 1915, Page 5

COURT OF APPEAL

A FRIENDLY SOCIETY'S FUNDS

An interpretation of the law relating to friendly societies' funds is being sought from the Court of Appeal, which yesterday afternoon commenced tile hearing of a special case remitted from Napier. The Bench was occupied by their Honours the Chief Justice (Sir Robert Stout), Mr. Justice Denniston, Mr. Justice Edwards, Mr. Justice Cooper, and Mr. Justice Chapman. The plaintiffs in the case were Frederick Cook, William J. Francis, and Charles Briggs, the trustees of the Court Heretaunga No. 6553, a branch of the Ancient Order of Foresters. The defendants were William Adam Donaldson, John Kennedy, and Alfred Oswald Menefy, the trustees of the principal society itself. • Mr. C. P. Skorrett, K.C., with him Mr. H. B. Lusk) of Napier, appeared for the piautiffs (the branch trustees), while Mr. H. ,D. Bell, K.C., with him Mr. W. G. Wood, of Napier, appeared for the defendants (the trustees of the principal society). It appeared that the principal society passed certain amendments to its rules, bearing 011 'the sick and funeral fund; The plaintiffs' society (Court Heretaunga), believing such amendments to b« wholly ultra vires and void, refused to be bound by them, and the result was that the principal society purported to suspend the plaintiffs' society (Court Heretaunga). The Supreme Court was invoked in regard to the amended rules, 1 and in October, 1913, the Chief Justice had declared that one of the amendments was ultra vires and void, but that another of the amendments was not ultra vires and void. In March, 1914, the principal society again amended the rules, and, on the plaintiffs' society declining to comply with such amendments, the plaintiffs' society was expelled as_ a branch of the Hawke's Bay District Ancient Order of Foresters. An action was then commenced by the plaintiffs' society (Court Hcretaimga) to obtain a declaration that the amended rules were ultra vires and void, and that the expulsion of the plaintiffs' society was illegal and void. An injunction was also sought to restrain the principal society from enforcing with the amended rules or from dealing with the funds of the society in accordance with the provisions of such amended rules. The amendments had the effect of placing all sick and funeral funds under the administration of the district societies instead of the branch .societies, who prior to the amendment of the rules conT trolled their own sick and funeral funds. A defence to the action was filed, and, as a, former decision of the_ Supremo Court pronounced against district administration of the funds, it was agreed to state a special case for the Court of Appeal for a ruling as to whether the amended rules, of March, 1914, were ultra vires of the society. Legal argument was proceeding at 4.15 p.m. when the Court adjournel until Monday morning. A WANGANUI CASE. Hearing of argument was concluded In the Court of Appeal in the Wanganui oase of Mary Parlres and another v. the District Land Registrar. _ Some particulars of the original action and the ground of the appeal were published .in yesterday's issue. Decision was reserved.