VALIDITY OF A CHEQUE

Hawera Star, Volume LIII, 16 June 1933, Page 7

VALIDITY OF A CHEQUE

NONSUIT POINT FAILS

HAAA T ERA COURT DECISION

Judgment on a nonsuit point, previously reserved, has been given in favour of plaintiff in an action heard at - the last sitting of the Hawera Magistrate’s Court, when AY. J. Wilkinson, insurance agent, New Plymouth (Mr R. J. O’Dea) proceeded against M. J. Jones, farmer, Auroa (Mr A. K. North) for payment of a cheque stopped by defendant. Plaintiff, in evidence, said he had approached defendant on February 2/ with a view to effecting a policy of insurance upon his life. Defendant agreed to take out a policy and had ■signed a proposal. As defendant did not have .sufficient funds to pay tho premium witness had asked him to sign a. cheque for the amount, which defendant had done, making the cheque payable to hearer. AVitness agreed to pay the premium in the meantime and to reimburse himself when the eheque was met. Later witness had signed and filled in his own cheque for the amount of the premium in the defendant’s presence, and had later forwarded it to the company. The proposal Avas in duo 00111*50 accepted and; the policy forwarded to the defendant, who had, however, returned it to the company. Payment of his cheque was also stopped. Air North submitted that tho. .onus lay upon plaintiff to- prove that he had given consideration for tl}£ cheque. This had not been done and therefore plaintiff should be nonsuited. He quoted authorities in support of this view. For plaintiff Mr O’Dea submitted that tbe onus was on defendant to prove failure of consideration, and, in any case, the agreement to forward plaintiff’s own cheque and the subsequent forwarding of it to the company was consideration.