COURT OF APPEAL

Dominion, Volume 11, Issue 27, 26 October 1917, Page 8

COURT OF APPEAL

A LAWYER'S CASE

APPLICATION TO STRIKE OFF

THE ROLLS

Tho Court of Appeal was yesterday engaged in hearing an application by the New Zealand Law Society for & rule absolute to strike oil the rolls, of barristers and solicitors William Gascoyeo Beard, on tho ground of professional misconduct. The Chief Justice (Sir Robert Stout) pre sided, and with him ou the bench were Mr. Justice Denniston, Mr. Justice Cooper, Mr. Justice Chapman, and Mr. Justice Hosking,

Mr. H. F. von llaast appeared for the Law Society, and Mr. A. Gray, K.C., and Mr. M. Myers for Beard.

• Law Socicty alleged that Beard was "guilty of professional misconduct in his dealings with his client, Rangi Xerehoma, a Maori, in the following respects: That, being Rangi's solicitor, and knowing that Raugi was an improvident person and susceptible to the guidance of his advisers, and therefore requiring protection, and knowing hlso that William Boyce Chennells, of Masterton, commission agent, stood in a fiduciary position to and exercised great influence over the said Rangi, Beard, in conjunctiou with Chennells—

(a) Advised and procured Rangi to give a power of attorney to Chennells. and to be declared a European under Section 17 °f the Native Laud Amendment. Act, 1912, thereby bringing Rangi further under the influence of Chennells and depriving him of the protection afforded to him as a Maori;

(b) By undue influence and in breach of his duty as a solicitor to Rangi, and in fraud of his rights (i) did procure the execution by the said Rangi of leases and transfers of the lands known aa Mangaliuia, and Uhiroa, and did iirocure the "Cx* ecution by Rangi of leases p-nd an agreement to sell the lands known as "Tablelands, by which agreement the vendor was to take mortgages for ihe whole of the purchase money payable by the purehasees for. a term of 30 years at 5 per cent, interest, and did endeavour to procure the execution hy Rangi of transfers of 'Tablelanas in each case to members of the families of or other persons connected ?r,j' l(! „ sa, d Beard and Chennells (on behalf of Beard and Chennells themselves); (n) in conjunction with Chennells j o ttJ^ lTl ' *h e said leases of Mangahuia and Uhiroa, and did purchase the said lands at a gross under value, as evidenced j 1 Bearrf and Chennells settled an action brought against, them w S? rs by an &i iu the Supreme Court at Wellington by agreeing to pay X 13.-198 Ms. as damages for breach of duty, the costs of the solicitors of Rangi (£600). and agreeing to comploto the purchaso of Uhiroa at a price. of £2607-in lieu 0 f £1266 lis., tho prion at which it was originally purchased from Rangi, and relinquishing all claim to 'Tablelands.' r t 'nSL K ," ow^» that Kansi "quired from £10,000 to £12,000 ,to discharge his liabilities, and having been instructed to raino this money for Rangi, Beard, in conjunction with Chennells, procured an acceptance by fiaugi of only £968 Is. 6d. in cash, out of a total of £48,000 purchase money; and the acceptance bv Kaniri oi" mortgages for the whole of the balonco ol tho said money, for a term of about, years at 5 por cent, interest, such mortgages in several cases being for iv larger amount than the amount, of purchase money payable by the mortgagors respecwvely, and procured the execution by ttangi or sub-mortgages of some of sticli mortgages for a total sum of £8000 for terms of about, five years at 6 per cent, interest, in ono case to the wife, and in the other to a client of Beard (d) That, Edgar J. W. Hallett, of Hastings, solicitor, who wa-N put forward na Rangia solicitor, acting and advising Rangi independently in connection with some of the foregoing transactions, was in reality employed by Beard and Olienuelle, and that in all the foregoing transactions Rangi was without any independent advice; thai the said Hallett.'was never Instructed to consider and advise Rnngi whether the transactions between .Rangi and Beard and Chennells were fair and equitable from a. commercial point of view, and was In general not instructed until Rangi had already entered into his arrangements with Beard and Chennells. and then only to see whether documents submitted carried out the said arlangempnts and that Rangi was satisfied therewith.

"(e) That although Beard knew that, tho lessees of .Mangahuia and Uhiroa desired a renewal of their leases or to purchapc tho land comprised therein, he. as solicitor of Rangi, took uo stops before obtaining the leases and transfers for Maueahuia and Uhiroa, and tho leases and agreement for the salo of 'Tablelands* to HI Vl ''£ ten^(M ' s such leases, or to obtain the best rents or the best prices for the lands of Raiiffi by public auction or competition in the open market, but subordinated the interests of Rangi to those of himself and Chenuells. (f) That Beard endeavoured Jo procure tho Acceptance by Rangi of mortgages for the whole of the purchase money payable to the latter under the proposed transfers of Tablelands,' for a term of 30 years at 5 per cent.. interest." Mr. voti' Haust addressed the Court at considerable length; traversing' a number of affidavits made in connection with the matter. • The hearing was not concluded when the Court rose.