COURT OF APPEAL

Dominion, Volume 9, Issue 2739, 6 April 1916, Page 9

COURT OF APPEAL

TEST CASE

Legal argument was concluded in the Court of Appeal yesterday in ,thc caso of Annie Magner v. Ernest AY, F. GJohns, an important test case concerning the right of the Court of Arbitration to allow an agreed-upon preference clause to become part of an award/ The Bench for the hearing of this case was occupied by Their Honours' the Chief Justice (Sir Robert Stout), Mr. Justice Edwards, Mr. Justice Cooper, Mr. Justice Sim, and Mr. Justice Hosking. Some particulars of the appeal were published in yesterday s issue. Mr. C. P. Skerrett, K.C., with him Mr. L. Cohen, of Wanganui, appeared yesterday for the appellant, while the Solicitor-General (Mr. J. W. Salmond. K.C.) and Sir John Findlay, IC.C:, appeared for the respondent. Decision was reserved.

'AN INSURANCE MATTER. The Court; was occupied in the afternoon with the hearing of the case of the University of' New Zealand v. the Standard Fire and Marine Insurance Coy., Ltd.,' of New Zealand. • For the hearing of tihis case the Bench was occupied by Their Honours Mr. Justice Edwards, Mr. Justice Sim, and Mr. Justice Hosking. On April 23, 1916, the University claimed £1000 from the Standard Insurance Company under a fidelity guarantee insuring the University against loss by reason of the dishonesty of any of its employees. .Ihe claim was made in connection with defalcations of Barclay Hector, intil recently the Registrar of the University, and the present argument, before the Court of Appeal is on a special case stated to settle a preliminary point of law. Briefly the facts ate as follow: The Standard Insurance Company, for the-purpose of the special case admits that the policy for £1000 was in force during the period in which Barclay Hector embezzled the University's funds, but it. draws attention to a clause in the policy by which it guaranteed to pay onlv sucfi losses as occurred during the twelve months immediately prior to the claim; the Standard Company further admits that the sum of £549 3s. 7d. is owing to the University on - account of losses occurring during the twelve months prior to the date of the claim, and offers -to pav this amount to the University; on the other hand, the 'University claims that losses during the currency of the policy exceeded' £1000, and that therefore the ' full amount 1 of the policy should be paid. The Court has to, decide the quesi tion j ns to whether tie policy covers losses occurring during its period of. existence when renewed from year to year, or whether the Standard Insurance Company is right in contending that anv loss can only be recovered by a olaim within twelve months after the . date on whicE the loss actually occurred?.. Mr;' Skerrett finished his address iußt before the adioilrnment last evening, and Mr. Treadwell will take up the argument at 10.30 a.m. to-day.