SUPREME COURT

Hokitika Guardian, 10 March 1930, Page 3

SUPREME COURT

SATURDAY, MARCH Bth

(Before his Honour Mr Justice Adams)

His Honor took his seat at 10 a.m. IN BANKRUPTCY. Motion lor order for Annie Allen Orr, wife of Frank A. It. S. Orr, a bankrupt,, to deliver the furniture in the house of the said F. S. R. S. Orr, to the Official Assignee. Mr Murdoch appeared .for the Deputy Official Assignee (All C. W. Carver) and Mr W. Joyce for Mrs Orr. Mr Murdoch called evidence as fol-

lows : / Charles William Carver, sworn, said he was official assignee in bankruptcy of the property of Franks S. R. S. Orr. A statement off assets was supplied by the bankrupt. There was no furniture in the list. In his statement the bankrupt said that his wife had found £IOO to meet a- bill, and he had sold her the furniture. That was in the beginning of 1928. The insurance on it was £250, though he had not been aware that the insurance policy had been continued by Mr, King. Mrs Orr has claimed that furniture. He had made a formdemand for delivery in February, 1929, and Mrs Orr had refused delivery. The total value of the furniture claimed is £236. A writ of sale was issued by the Hokitika Savings Bank, prior to the petition of bankruptcy. Witness ejaimed. as assignee an order for delivery of the furniture.

p To Mr Joyce: He demanded the receipt for the sale of furniture, and Mrs i Orr supplied it. Mrs Orr told him her husband had to find some money for ’ his business. That she wanted some , security for her money, and that sold her the furniture mentioned in , the receipt. To Mr Murdoch :The receipt is signed, Orr Bros. Sero-t. C. J. King, sworn, stated he was bailiff at the Magistrate’s Court, TT ”kHika. -gating under instructions from the sheriff, he took possession o c the furniture of F. R. S. Orr, the bankrupt, on 7th November, 1929, and .remained in possession for about a j week ; : When he took possession he . saw Mrs Orr. Told her he held a warrant against her husband for a conr,k: iafile amount, and he had to ial:e an inventory of the property of her husband in’ the house. She pointed out the .articles, and as she did so he p wrote them down. He gave her clearly to understand that he only wanted | the articles belonging to her husband, and not to her. In pointing out articles' that belonged to her, he asked if she could .supply receipts, and Mrs Orr ; j said, no, and he took her word. .The , list produced is that cf the property., she said belonged to her husband. ‘ , . Winter date, shortly after Orr filed his schedule, Orr claimed the furniture he- p longed to his wife. He said lie had j | •borrowed £IOO from his- wife, and he * gave the furniture as security. He „ first heard of the receipt now before the Court, this morning. s To Mr Joyce: He would not dispute that on a previous occasion .about two yenre ago, Orr said he had obtained £IOO from his wife. Alexander Bertram King, sworn, stated he was an insurance agent residing in Hokitika. Resided next door to Orr. As agent of the N.Z. Insurance Coy. he had covered the furniture in the name cf Mr Orr about 8 or 9 years ago, and it still continued in his [ name. The renewal was issued in the ordinary way, except that witness paid it by himself, at the request of Orr, who had not .the money at the time. ‘ vv To Mr Joyce: There were two premi- d urns remaining unpaid by Orr, that si witness had paid, which Orr had faith- A fully promised to pay. b Herbert W. R. Sweney, sworn, stated he had valued the furniture and li effects in the house of Mr Orr, a honk- g, rapt. He valued the furniture at £lB6 p. ,10s. w

-This was the case for the assignee. Mr Joyce outlined the case for the defence, and called evidence, putting in a medical certificate by Dr Baird in regard to Mrs Oit’s health. Annie Ellen Orr, sworn, stated she was the wife of the bankrupt. She had bought certain articles of furniture. herself. She had bought :i war bond for £IOO with her own money. 'ln 1919 when her husband started business, he wanted an overdraft, and she gave him the war bond for her husband to put in the bank as security. That war bond was sold later in reduction of the overdiaft. Her husband paid her hack that £IOO from time to time. Later, when the Leyland people had a writ against her husband she gave her husband £IOO, and he gave her a receipt for the furniture. She had the money in thr. bank, and drew the money out on January 19th, 1926, £IOO. He gave her the furniture because' she wanted something for the £IOO a« security. She remembered Sergt. King coming to her about the furniture. She told him her husband was away at Reef ton. He had some papers. She refused to see the papers as it was her husband’s business. Sergt. King said he came to seize the furniture, what was her husband’s, not what was her’s. She was confused and said all she wanted was her five children, and he could have the lot. She told Sergeant King what was Mr Orr’s previously to her buying it. The receipt was in her possession, but Mr Orr had the keys. She asked SergeantKing if she should produce the receipt, and he said “No, T will take your word for it.” The whole of the furniture in the house belongs to witness. There was no article of furniture in the house belonging to her husband. To Mr Murdoch: She was confused when the Sergt. was there taking a list of the (furniture. She did not know

why the receipt was signed, “ Orr Bros.” Witness collapsed on leaving the witness box, and his Honour adjourned the Court,' resuming 15 minutes 1 liter.

Samuel Francis R. S. Orr, sworn, said lie was the husband of the last witness, and was a bankrupt. In De-c.-ember, 1919, commenced business with

his brother. Raised an overdraft at the Bank of New Zealand, partly ou securities which' lie furnished himself, and part on a war bond of £IOO which his wife loaned to him as security. At a later date the; bond was sold, and paid into his'account. He repaid the money to Mrs Oh’. In 1926 a writ of sale came from,- Leyland Company. Told Sergt. King, who brought it,

that he would require a few days. The amount was paid by a special guarantee fund, by other moneys that he raised and by £IOO from Mrs Orr, for which he sold her his furniture. An ordinary receipt was given. The receipt produced was the one. That was given on 19th January, 1926, on the same day that the money was drawn from her bank, and paid to his account. The furniture was- to belong to Mrs Orr. The piano was bought about 1917 for £25. None of the furniture sold to his wife was used in connection with the business. Did not go back in his business till 1927 or 1928.

To his Honour; He was quite clear that he was in business alone at that time.

To Mr Murdoch :The furniture was insured in his own name, and also the piano. The policy was not kept going at witness’s request. He may have paid one premium after the sale to his wife. He thought he told Mr King the policy would have to he transferred in his wife. From 1923 to 1927 MiKing had not paid any premiums for the policy. He looked on the transaction as a fin re sale. The whole receipt was made out at the same time. Counsel d’d not address the Court, tho subject for decision being a matter of fact.

His Honour in giving judgment said lie hod I’onrd the evidmwe of both onrties. Tho matter had been carried out nerhnns in a si in-shod wav, though if apne-.ired perfcHy legitimate action was t-al-an. He was satisfied on +hn evidence that the transaction of Mr end Mrs Orr in 1926 was as,stated hr thpm. He was satisfied the document was a '-enuine one, and free from reasonable suspicion. At first sight, his Honour remarked, the transaction ns between husband and wife was open to suspicion, and the Assignee was justified in filing the motion under the direction of the creditors. He would hold that the assignee was not entitled to Hie motion that he asks for. Costs £lO 10s and disbursments would he slewed Mrs Orr.

Incidentally, added his Honour, he wo-nlr] mention for the benefit off counsel that for years he had been insuring the property of others in his own name. Tn view of the references made during th° tearing lie would have to make other arrangements.

’" s concluded the business of the session and the Court rose at noon.