AN IMPORTANT JUDGMENT.

Greymouth Evening Star, Volume XXXI, 7 November 1901, Page 4

AN IMPORTANT JUDGMENT.

. It is generally understood that in the case Pactolus Gold Dredging Company W Anderson Foundry (Ohristchurch), the verdict will go for plaintiff for £417 los with costs. This was a case brought to recover damages for loss sustained by the company through defendant being 18<L days behind his contract time in completion of the company's dredge. A eliuse in the conditions of contract provided'that in the event of the contract being dolayed through the non-arrival of machinery from England, an extension ot time might be allowed. For this delay the company's engineer allowed*9o days and imposed a penalty of £3 per day for 94 days, making a total penalty of £282. This amount wa3 withheld from the final payment. Thereupon defendant threatened to sue. for the amount. The company being advised by its solicitor that it could not deduct the amount paid it over to defendant at the same time intimating its intontion to sue for dimages. The Company prior to making this last payment were prepared without prejudice to accept the £282 in settlement. At the hearing of the case Messrs Harper and Wilding of Christ, church, the defendant's solicitors, argued that the engineer having assessed the penalty, and such penalty having been subsequently paid over to defendants, the plaintiff company had no further remedy. Mr Hannan who along with Mr Free appeared for plaintiff, contended that the Engineer had no power to make an award, and further, that the defendants, not having accepted the Company s engineers direction, the penalty clause was at large and out of existence and the Company could sue and recover any sum by way of damages for breach of contract. The decision, which is likely to be appealed against, is an important one, for it is understood that five other dredging-Companies on the West Coast contemplate taking action.