NELSON CASE

Evening Post, Volume CXII, Issue 79, 30 September 1931, Page 3

NELSON CASE

PURCHASE OF SHARES

PLAINTIFFS (SUCCESSFUL [

Judgment for each of the three plaintiffs in accordance with their statements of claim has beien given by Mr. Justice MacGregor., in the Supreme Court in a reserved decision in a case' in which three Nelson residents,-Har-' old Leon Harley^ solicitor, Dr. £1. A.'. Gibbs, medical practitioner, and CharlesRobert Duke, architect,' proceeded^ against the General Mortgage Corporation, Ltd., alleging .that, they had been induced to apply for shares in the defen^ dant corporation by the false arid fraudulent misrepresentations of, the'.aceredited agent of the company. - -,- , * His Honour gave" judgment for ithi plaintiff in each of tho three cases for. (1) rescission of tho contract to take shares on the ground of misrepresentation; (2) rectification of the share register or list of contributorieg of the company by removing the name of the plaintiff therefrom; (3) payment by the defendant company of all moneys/paid on application and, or, allotment, ..with, interest'thereon at; 6 per cent..,ftorndate of payment; and (4) £31 10s in. full costs of the action,-along: with disbursements, witnesses' expenses, and interlocutory proceedings, toV'ba. fixed' by the Registrar. t . ';',/;' The evidence was heard/ in^Nelsoii, after which the case was adjourned to Wellington, where legal argument, wai heard some weeks later in all "three* cases. : ... ;;■ '. ..■■■. " '..'■" Various grounds of defence were1 originally pleaded by the defendant company, but the questions at issue became narrowed by admissions and otherwise! and his Honour said that when.the ease, came finally before him at 'Wellington, for argument two affirmative defences only .remained open to. tho defendant company for consideration by the Court. These were: (1) That the plaintiffs in view of their position'as xnem.-. bers of the defendant company's;local advisory board in Nelson at.no time had-; any right.of rescission as claimed; and (2) that if that right eviar existed it had been lost in. each, case by failure: effectively to repudiate within a reasonable time. "''}'■■ ':'■"■ '" His Honour considered the two defences in detail, and held that both must fail. ? * • : • At the hearing, Mr. C. B. Fell, of Nelson, appeared for the plaintiffs, whos»' cases were .consolidated;'' ■ \''"