THE LEVY CASE

Dominion, Volume 9, Issue 2879, 18 September 1916, Page 6

THE LEVY CASE

? SETTLED OUT OF COURT LEVY PAYS £2000 DAMAGES' CONTRACT CANCELLED FAULTY UNIFORMS TO BE RESTITCHED Tho Hon. Arthur M. Myers, Minister in Charge of Munitions, and Supplies, has supplied the Press with a copy of a letter written by Mr. P. S. K. Macasscy, counsel for the Crown, which sets out tho full terms of settlement of the Crown's claim for damages in respect of A. Levy's breaches of contract, the terms of same having been accepted by' Messrs. Gray and Jackson, counscl for Levy. The letter, which is as follows, and dated September H, is addressed to Messrs Gray and Jackson: — "Reference to the proposals contained in yo-ur letter of the Bth iiist., and to conference which has since taken place thereon between Messrs. S. Kirkcaldie, A. M. Adams, and your Mr. Gray and Mr. Myers (of Bell, Gully, Bell, and Myers), I havo tho honour, by direction of the Hon. Minister in Chargo of Munitions and Supplies, to now place on record tho arrangement entered into, namely (a) The cancellation of Levy's contract to stand. (b) Regarding the goods of tho approximate value of £10,000 being garments stated to be properly sewn with linen thread, and stated to have heen completed before tho cancellation or Levy's contract, thfi Minister . will accept on delivery to Defence Stores, Wellington, and pay for tho goods at Levy's cancelled contract prices, provided samo'are on examination • found to fully comply with specifications and conditions of the cancelled contract, and provided tho Minister is satisfied that these garments were completed prior to tho cancellation of tho contract. (c) The Minister will permit your client to re-sew with linen thread the garments to the value of approximately £15,500 already delivered but rejected, and now returned to him, such re-sewing to be with linen thread specified for, and to ho properly _ done under Government supervision, in accordance with specifications, and to the satisfaction of the Minister's representative, ■ and when properly completed goods to bo delivered at Defence Stores, Wellington, and paid for at Levy's contract prices. (d) The Minister will supply military buttons and hooks sufficient to complete the garments to the value of approximately £2000, stated to he properly sewn with linen thread, and will accept samo at prices ruling under Levy's cancelled contract on delivery, provid- ' ral that tho goods arc, on examination, found" to bo in accordance with previously mentioned conditions, and provided tlio Ministoi is satisfied that theso garments wero ma'do prior to cancellation of tho contract. (0) As to stock' of khaki cloth of tho approximate value of .-£4721, tlio Hon. Minister does not see his way clear to accede to the request made, that Levy bo permitted to make up this. material into uniforms at tlfe prices ruling under tho cancelled contract; but ho will consent to Lew being relieved of the cloth on tho following conditions. namely— (1) It must ho khaki cloth of New Zealand manufacture, in full pieces as actually supplied to Levy in accordance with a direction received by -tlio woollen mills from tho Hon. Minister. (2) Such cloth to be in perfect condition to the satisfaction of tho Minister's exports. (3) Delivery to bo mado whenever directed within tlio City of Wellington to the Hon. Minister's nominees, and tho property in tho goods to bo retained by Levy until delivery taken by the lion. Minister's nominee or nominees. (4) Sucli nomineo or nominees to pay for all cloth so delivered, at tho actual invoice price properly charged to Levy by tho manufacturer, less usual trade discount, and the discount to be allowed to nominees for casb payment-, whether Levy actually his discounts from tho woollen mills or not. '(5) The Hon. Minister's nominees will of course be substantial persons; and (6) (a) referring to the request that Levy bo allowed to make up the material mentioned in tho above paragraph, or that Levy be allowed to make arrangements in this respcct with the Wellington Woollen Company; the Hon.' Minister directs me to state that ho is not prepared to accede to this suggestion, or to consider the question during the present war, of again entering into any contract with the firm of A. Levy for the supply of military uniform*, (b) In this connection it is observed that yon state your client is as a sub-con-tractor making up a small portion of the uniforms now being supplied by tho Wellington Woollen Company. In regard to this matter, the Hon. Minister directs me to state that while ho has no intention of disturbing any arrangement mado by tho Wellington Woollen Company or any other reputable supplier to bring about tbe .faithful execution ' of thoir contracts with tho Crown, he, however, cannot see his way to agree to tho cloth mentioned in paragraph (c) horein being made up as suggested. (f) Although you state your client's position is very serious, his request for payment on account cannot be acceded to, for the reason that prompt payment will be made for goods referred to under heading (b) herein, provided goods are satisfactory. Tho Hon. Ministor cannot pay any heed to your contention that special consideration should bo given by the Government to Levy, owing to strain on his finances following a conviction for liis own wrongful actions. (g) Levy to pay to tho Government tho sum of £2000 in settlement of claim by the Crown for damages in respect of goods delivered by your client under his contract (other than goods specially ' referred to ill paragrapns (b), (c), and (d) herein). The Crown to bo at liberty to deduct tho above sum of £2000 from any moneys owing or to become owing by tho Crown to your client. (h) Nothing heroin contained to relievo your client from his obligation to pay the fino of £50 and costs imposed oil him in accordance with tho conviction. (1) Tho lion. Minister desires mc to state that the terms of settlement outlined herein arc tho result of duo consultation with his experts—Messrs. Sidney Kirkcaldie and J. L. Morrison—who have in this connection acted in co-opera-tion with tho members of the Supplies. Hoard of Advico (Messrs. A. H. Miles, Alexander Macintosh, and George Wilson). (j) Publicity to bo given to the full terms oT settlement as herein sot out. U&loss tho terms of this lotter are'

accepted without reservation, this letter is to bo without prejudice. Acceptance to reach me by noon on Friday next. Yours faithfully, (Signed) P. S. K. MACASSEY, (Assistant Law OQiceri.