LAW REPORTS

Dominion, Volume 8, Issue 2503, 2 July 1915, Page 7

LAW REPORTS

SUPREME COURT BUILDING SOCIETY'S AFFAIRS Questions of liability and responsibility for losses incurred by the Johnsonvillo Co-operative Building Society have been decided by a reserved judgment, which has been delivered in the Supreme Court by His Honour the Chief Justice (Sir Robert Stout). It had been decided some time ago that the society was to be dissolved, and a deed of dissolution was drawn up, dated May 11, 1914. The questions referred to then arose for settlement. Plaintiff, in the action (an originating summons) was managing law clerk, of v\ ellmgton, while the defendants were the society and its trustees (Robert Bould, farmer, and Alfred Mills, Town Clerk, both of Johnsonvilte). At the hearing, Mr. D. S. Smith appeared for the plaintiff, who claimed to represent members of the society, who had given notice to withdraw, ana whose notice had expired before tlio commencement of the dissolution. Mr. D. R, Hoggard appeared, for the trustees, who had been appointed by the deed of dissolution. Mr. T, Neav© appeared for those members who had not given notice to withdraw, and who had not had an advance upon their shares. Mr. Douglas Jackson represented an "advanced" member. Mr. J. C. Peacock was_ also in l tie case as counsel for Harriett Sophia Cook, the first mortgagee of. a property of which the society held the equity of redemption. His Honour, in the course of his judgment, remarked that the society was one of a kind called Starr-Bowkett societies, and that its object was to lend money to some of its members without charging interest. It was, in fact, a lottery of funds. His Honour, held that the trustees of the society had power to give titles to land and to discharge mortgages, but they could not compel a repayment of mortgages otherwise than according to the terms of ..the mortgages. Members of the society did not acquire a right to withdraw unless the_ necessary three months' notice had expired before the society stopped business.. As to the liability of members, His Honour held that the class represented by Mr. Smith's client (the. plaintiff) were not liable for any losses. The class ("advanced" members) represented by Mr. Jackson's client were liable both for subscriptions and redemption money, and suffered deductions for losses. Members (represented by Mr. Neave), who had not given notice to withdraw, and who had not had an advance on their shares, also suffered on account of losses. COURT OF APPEAL. The Court of Appeal was occupied all day yesterday with the hearing of further legal argument in the Wangimni case. M'Caul v. Fraser. At 4.30 p.m. the further hearing was adjourned until this, morning... . PRIVY COUNCIL APPEAL THE MILKING-MACHINE DISPUTE. (By Telegraph—Press Assn.—Copyright.) London, June 30. -The Privy Council has granted the New Zealand Ridd Milking Machine Company leave to appeal against the Simplex Milking Company. The question of costs was reserved pending the appeal. •. ,