LAW REPORTS

Dominion, Volume 9, Issue 2749, 18 April 1916, Page 9

LAW REPORTS

COURT OF APPEAL

AN INSURANCE! MATTER

Reserved judgment was delivered by \ tho Court of Appeal yosterday in tho question of law submitted in the casts of the University of New Zealand v. tho Standard Fire and Marino Insuranco Co., Ltd., of New Zealand. On April 23, 1915, tho University claimed J2IOOO from tho Standard Insuranco Company uimrr a fidelity guarantee insuring the University against loss by reason of iho dishonesty of any of its employees. Jho claim was made in connection with the defalcations of Barclay Hector, until uccontly Kegistrar of tlio University, ana the Court of Appeal was asked to settle a preliminary point of law. Briefly. the facts wero as follow-The Standard' Intiurance Company, for the purposei oi the special case admitted that tho policy for iiIOOO was in i'orco during tho period in which Barclay Heclor embezzled the University's funds, but it drew attention to a clause' in the policy by whicli it guaranteed to pay only such lossos as occurred during the twelve months immediately prior to tho claim; tho Standard Company further admitted that the sum of c£sl9 3s. 7d. is owing to the University on account of losses _ occurring during the twelve months prior to tho date, of the claim, and offered to pay tins amount to the University; on tho other i hand, the University claimed that tho losses during the currency of the policy exceeded J2IOOO, and that, therefore, the full amount of the policy should bo pain. The Court had to decide the Question las to whether the policy covered losses ! occurring during its period of existence i when renewed from year to year, or I whether tho Standard Insurance Company. was right in contending that any loss could only bo recovered by & claini within twelve months aftOf tho date on which the loss actually occurred? Tho question was answered m tavour of tho Standard Insurance Co.. costs being allowed tho company on tho iumiulq BC< Mr. CP. Skerrott, K.C., with torn Mr. J. L. Stout, appeared for tlio University, while Mr. C. H. Treadwcll appeared for tlio Standard Insurance Company.

COURT

i CASE BEFORE A FULL BENCH. The judgment of a Full Bench of the Supreme Court was delivered josierday in tlio motion for & new trial io llio case of Keir and Muuro v. Aitken nud \\ il- 1 son. The action—a claim for .£6OOO damage's for alleged misrepresentation--was heard in Palmerstou North in December last before Mr. Justice Edwards and a special jury of twelve. Tho plaintiffs were John Keir and .Ferguson • Munro, whilo the dei'endajits were John Guthrie Wood Aitlcen and George, uilson. The action -arose out > of the sale by the defendants to the plaintiffs of the , formers' business as general merchants. 'Tho defendants counter-claimed for tho balance of the purchaso money alleged to be ofriug on tho sale of - the business. Hearing of evidence and argument extended over four days, and the jury, after ' retiring for three'hours, returned a verdict for the defendants by a. three- , fourths majority. , Of the nine issues put to the jury, the following two disclose the facts in dispute between the parties :-(2) Were the defendants aware, ,at the date of tho agreement to purchase, that according to the rules of tho said company (New Zealand AY ax Vesta Company) the plaintiffs could only bo appointed agents of tho said company if they, the plaintiffs, held <. shares the • 6i\id company ? and (5) did the defendants ] represent to plaintiffs that at tho time of the execution of the eaid agreement to. purchase they held tho agency for Sykes s drench? The jury answered these two questions in tho negative, that is to say, in favour of the defendants. ~On hearing tho verdict, plaintiffs' counsel objected to judgment ueing entered for tho de: fondants, and moved for a new tual, on the ground that the jury's vordict was against the weight .of evidence. The motion was taken, before a Full Bench, ■* with the result that yesterday a new a trial was : ordered.' Plaintiffs were alI lowed £10 10s. costs and disbursements on the motion. The question of costs of the first trial' was reserved for the Judge at the second trial. Sir John Findky, K.G., with him Mr. D. ft. Hoggard, appeared fQr the plaintiffs in support of tho motion, which was opposed by Mr. C. P. Skerrett, K.C.,' aud Mr. T.- Young, on behalf of tho defendants. i

DISPUTE OVER A LAND' SALE.

In the action, S. Law and R. S. Law v. F. Staples and G. Lambert, com--nienoed in the Supreme Court, His Honour the Chief Justice (Sir Robert Stout) delivered reserved judgment yesterday. Tho action was one arising out of the fhUrchase of a block of land near Shannon. The plaintiffs purchased the land from Staples (through an agent), Lambert being associated in . the defence merely as the original owner. It was claimed by plaintiffs that the amount of land in grass was not as represented, and that the land would not carry tho number of sheep represented. Plaintiffs sought rescission of tho contract or in the alternative <£1000 damages. < The defence claimed that' any • misrepresentation which may have occurred was in-, nocent of intent to mislead, and in fact was'not acted upon by plaintiffs in making 'the purchase. > ' His Honour, in a, previous judgment:, decided that misrepresentation iiad been made, that it was material, and that it induced ■ the contract. As to whether there' was a warranty. His Honour deferred decision on this point to allow legal argument to be heard. Argument .followed in due course/ when it trnn made clcar that plaintiffs did not sees damages- if the contract could be rescinded. Staples did not then oppose rescission if "lie ediild be placed io his original position. His Honour, therefore, made a decree rescinding the contract, and ordering the plaintiffs to transfer to Staples their rights under the contract. Costs were allowed the plaintiiis on the lowest scale as against Staples, who was also ordered to pay the costs l of tho defendant Lambert. At tho hearing, Mr. H. R. Cooper, of Palmerston North, appeared on bolinu of-the plaintiffs, Mr. T. Noavo appeared for Lambert, and Mr. C. B. Morison, K.C.. with him Mr. F. J. Courtney, for Staples.