LAW REPORTS

Dominion, Volume 8, Issue 2549, 25 August 1915, Page 11

LAW REPORTS

SUPREME COURT A BIG HOTEL DEAL "A ease concerning a big liotel transaction was lieard in tlio Supremo Court yesterday. • His Honour the Chief Justicc (Sir Robert Stout) was on the Bench, an,d a jury of twelve was empanelled. The plaintiffs in the action wore Joseph Mandel (formerly of Wellington, and now a liotelkeeper in Christchurch), Mrs. Mandel, and Halo, Grierson, and Davis (brewers, Timaru). They ivore represented by Mr. C. I'. Skerreft. K.C., with whom was Mr. Campbell, of Timaru. The defendants u'ci'o A. D. Kennedy and Co. (wine, and spirit merchants, Wellington), who.wore represented by Sir John Findlay, K.C., with whom Mr. E. K. Kirkcaldio apDeared. The statement' of claim set out that on or about February 25, 1915, the defendants. for the plaintiffs, received from George Macdonald the sum of £500 deposit on account of a purchase of a lease of the United Service Hotel, Christchurch. The contract was not uerformed, and the plaintiffs were called upon by Macdonald to repay the £500, hut did not do so.' Defendants refused to repay, the money to .tlio plaintiffs, although application had been made for it. The plaintiffs therefore claimed the sum with £3 las. 7d. as interest, • Tlio statement of defence and coun-ter-claim was to,the effect that on December 5, 1013, the plaintiffs through their agent and co-lessec instructed defendants to procure'a buyer of the lease of the hotel. In the letter of .instruction it was stated that the lease had thirty-four years to run, and .the prico was £31 10s. per week. The sum of £20,000 was required for the lease and furniture. *Tho cash required was £8000. and' the balance at £1000 per year with 6 per cent, added. The average taking (it was stated) were £500 a week. One clause of the letter was: "'Should you complete a sale, commission £700." On January 26, -1915 (the counter-claim continued) a further letter was received from Mandel, offering to let the lease for six years at £10 a Week, and £6000 for godwill, furniture, and valuation. At the 'time of handing tlio. letter to defendants,' I/laudci instructed tlieni to procure a.buyer at £20.000. and offered him £500, but defendants refused tlie offer, and pointed out that plaintiff had agreed to pay them £700. Defendants procured as a purchaser George Macdonald,- of Wanganui,' who agreed to purchase the leasehold at £19,200. Defendants (it was alleged) prepared a memorandum of the gale and purchase for signature by the vendors and purchaser, but. j-laintiif engaged a solicitor to prepare an agreement for the sale, which was executed bv Mandel and Macdonald, on behajf of the vendors. The defendants, accordingly, counter-claimed the sum of VTJ'J, and costs. • Evidence was heard, and the case stands adjourned till 10 o'clock , this morning ■