ASSIGNMENT OF PROFITS

Hokitika Guardian, 22 March 1930, Page 6

ASSIGNMENT OF PROFITS

INVALIDATED B;Y BANKRUPTCY

By Telegraph—Per Dress Association.J

WELLINGTON, Marc 20

Reserved judgment was delivered today by Chief Justice Myers, in a case in, which : William Collingbourne Hewitt, of Pataruru, sought to recover £SOO from either the Official Assignee or from the property ol Edward John Barnes, or Ernest Keeble. Barnes and Keeble, as partners, entered into a contract with the Government at the end of April, 1927, for the construction of the foundations of a locomotive shop in Hutt Valley. On June 8, 1927, Barnes gave in plaintiff’s favour” an order authorising Keeble in consideration of plaintiff advancing Barnes £SOO, to pay to Hewitt all ' his profits up to £SOO, that might accrue from he contract. On June 17, 1927 Barnes committed an act of bankruptcy, and on October 21 be was adjudicated bankrupt, tbe bankruptcy dating back to June 17. At that date only preparatory work had been done in connection with the contract, -which was completed about September. Eventually, tbe profit was ascertained to be about £1823, half of which, but for his bankruptcy, would have belonged to Barnes.

Chief Justice Myers, in his judgment, held that as the bankruptcy dated hack to June 17, and at that time it seemed clear to him no profit had been earned by Barnes, there was no money to which the assignment could attach, and therefore plaintiff could not succeed.