A POSTHUMOUS BANKRUPTCY

Dominion, Volume 10, Issue 3098, 31 May 1917, Page 7

A POSTHUMOUS BANKRUPTCY

'' CLAIM. AGAINST A. BAAK AS TRUSTEE. i. . ' • '"By Telegraph—Press Assottatilm. Auckland, May 30. , An important civil action bearing ou the postnumous bankruptcy of tho laic William Coleman, solicitor, was commenced at the Supreme Court to-day, when tho Hon. Arthur Myers sued the Bank of New South Wales to recover the sum 'of JSOOO. Tho statcmont of claim set out that in May, 1807, tho' 'plaintiff, tho lato William Coleman, and the late Alfred Homy- Morisby wore mudo executors and trustees under the will of John Paseoe, of Auckland, mining engineer,' who died in England in May, 1309, Morisby havinc predeceased him in 1902. In November, 1909, plaintiff Droved tho will in England, reserving power to Coleman; as the other surviving executor. Portion of tho estate in England consisted of (he sum of -E3OOO. invested in Government debentures deposited, by Coleman with tho defendant lank'in Juno, 1908. In June, 191.1. Cole'man wrote a letter to theWnk notifying 'that the debentures, together with tho other securities, belonged to Myers and himself, as executors for Paseoe, and asking that the interest from them should be paid into his "Account No. 3." The defendant bank, it is alleged, negligently and improperly dealt .witlk.thc debentures by delivering them in February, 191 A, /to tho Bank'of Now Zealand, receiving .£3OOO \in cash, logother with .£6O accrued interest, both of which fiums it placed to the credit of Coleman. Of tho .£3OOO, .£IOOO was converted by Coleman to his own use. and the balance deposited by him with tho Auckland Gas Company, at call. In the following July tho Ons Company repaid ;-£IOOO, which Coleman converted also to ■his own use. The balance of .6IQOO was by tho company till after tho death of Coleman in September, 1915. anil then, handed over to the Official Assignee, iwho was now holding it to tho credit (of Pascoe's estate, -

The; statement, of defendant admitted 'trusteeship, but'denied any impioner conduct or neelisenco in dealing -with the securities in the manner aliased. It further alleged that if the capital of tho •state had been reduced by afl ■allesed,-the said capital had been lost polely through the improper conduct and n6£lijrenc« of the plaintiff, in (a) permitting Coleman to have uncontrolled disjKwal of the eaid moneys, (b) not makiac reasonable inquiry as to'the Investments representing, the money in tho fstate,' (c) not ascertainine the date upon •which the debentures fell due and seeing to the proper Jnyostment of tho proceeds. In. the .course of. argument it, was stated that the benefipiaiies had ismied n, ■writ against Myers, claiming a refund of .£2OOO, and that ho had satisfied the da.im.