SUPREME COURT.

Globe, Volume VII, Issue 733, 25 October 1876, Page 2

SUPREME COURT.

SITTINGS AT NISI PRIUS. Wednesday, October 25. [Before his Honor Mr Justice Johnston and a Special Jury.] The civil sittings of the Court opened at 10 a.m. WALTON V EDWARDS AND ANOTHER. In this case Richard Walton, as trustee of the estate of Brown Brothers, is plaintiff, and John C. Aitken and Robert Connall, trading as Edwards, Bennett and Co, defendant?. The plaintiff seeks to recover from the defendants the sum of £2950 under the following circumstances: —The bankrupts, trading under the firm and style of Brown Brothers, had business relations with the defendants to the extent of the latter advancing moneys to purchase material for the carrying on of their business as wool scourers, tanners, &c, and also to pay the wages of the workmen employed. The bankrupts were also indebted to certain other persons in large sums, and on the sth of January, 1876, filed a declaration of insolvency. The bankrupts had previously insured their premises and stock in the Batavia Insurance Company, under two policies respectively of £SOO and £250, and, on the Ist of December, the defendants obtained from the bankrupts a bill of sale over all their property and an assignment of the insurance policies, and, as alleged by the plaintiff in this case, fraudulently to defraud the other creditors. A fire took place on the bankrupts' premises, and the claims under the insurance were preferred, the assignment of them having taken place on the morning of the fire. The defendants sold under the bill of sale obtained by them, and also received the insurance money under the policies of insurance, the bankrupts having given the latter under the impression that further advances would be made so as to cover the amount secured by the bill of sale over the property of bankrupts. When, however, they signed the receipt for the insurance money the defendants refused to advance any further sums, and then took possession of their property under the bill of sale. The plaintiff by his declaration alleged that the defendants had fraudulently obtained a preference over the other creditors, and by getting the policies of insurance and bill of sale defeated the realisation of the just claims of other creditors, Wherefore as trustee of the estate and in the interests of the other creditors the plaintiff claimed the amount mentioned, Mr Garriok, with him Mr George Harper, for the plaintiff. Mr Joynt for defendant. Mr T. M. Hassal was chosen foreman of the jury. The issues sent to the jury were exceedingly lengthy. On the application of Mr Joynt, His Honor made an order, directing the issue of a commission to the Registrar to examine Isaac Allen, a witness for the defence, in presence of the counsel on both sides, owing to the illness of the said Isaac Allen. Mr Malet, the Registrar of the Supreme Court, produced the minutes of meeting of creditors under the Act and the resolutions declaring the liquidation of the estate; also, the appointment of plaintiff as trustee of the estate, and his acceptance of the same. The Registrar also produced a registered copy of a bill of sale from Brown Bros, to defendants. Mr W. |H. Smith, publisher of the Press was called to prove the insertion in the paper of the various notices under the Debtors and Creditors Act. Joseph Brown, one of the bankrupts, was examined at some length, and the case was proceeding when we went to press.