INSURANCE PROCEEDS

Evening Post, Volume CXVII, Issue 146, 22 June 1934, Page 11

INSURANCE PROCEEDS

CASE FOR PRIVY COUNCIL

Reserved judgment granting the Public Trustee, as, administrator, of the estate of the late George Douglas Lyon, farmer, of Murchison, leave to appeal Jo the Privy Council on a question concerning a life insurance policy taken out by the deceased, has been delivered by the Court of. Appeal. .

The case originally-was presented in an originating summons issued by the Public Trustee to determine whether or not the provisions of tho Life Insurance Act, which exempted the proceeds of a ; policy or policies of insurance lip to £2000 from payment of debts, applied to the,.proceeds of. a policy taken out by the deceased in Scotland before he came to New Zealand. Mr. Justice Ostler was asked in the Supreme Court to decide whether: the widow, Sarah ; Charlotte Lyon, should receive the proceeds, or whether, if they were not exempt, they should be made available for'the creditors. His Honour held that the proceeds of the, policy "in question were not exempt, and that the New Zealand legislation did not cover them. This decision was reversed by the Court of Appeal, and application was' then made for leave to appeal to the Privy Council.

Tho Court granted leave to appeal upon condition that within a period of one-month the Public Trustee gave security of £400, and upon the further condition that within a period of two months the Public .Trustee, as appellant, should take the necessary steps for the purpose of procuring the preparation of the record and its dispatch to England. .

Mr. H. F. O'Leary, with him Mr. E., S. Smith, appeared in support of the application, arid. Mr. O. C. Mazengarb to oppose. •■.■•'>