A MONEY TRANSACTION

Hokitika Guardian, 5 July 1930, Page 3

A MONEY TRANSACTION

CASE BEFORE APPEAL COURT

WELLINGTON, July 2

The Court ot Appeal was engaged to-day m hearing trie appeal of 1 nomas Riichau'dison, ol Welkngioii,/ money lender, fiom the judgment oi Mr Justice Horainai. kcliveieu m August last year.

The respondent was Thomas of Martin bo noug li, lar.m labourer. Under the wilt oi ni's lathe* lie was entitled (inter alia) to a life interest in the «um of £7250. Respondent’s father Charles Harris, died in January, 1013 and probate of his will was granted in the following month. On 'May 15, 1916, respondent was adjudged bankrupt and tiie income coming to him from his father’s estate was duly paid to the Official Assignee. In June, 1918, some of the respondent's creditors expressed dissatisfaction with his position and threatened to sell the life interest in his father’s estate but suggested to respondent that he should himself endeavour to arrange a loan on this security. Respondent later proceeded to 'Wellington and jintervjiewed nppelhint with the purpose of obtaining this loan. Appellant refused to lend money on the security but offered to purchase it and it was ultimately arranged that he should purchase for ,£1750. An assignment of the life interest was accordingly executed,; and appellant also obtained the benefit of insurance policies on respondent’s life, amounting to £2OOO. In 1928, ten years after this transaction, respondent issued a writ against appellant alleging that appellant had taken advantage of his pecuniary position and purchased the life interest for gross: undervalue and asking that the , transaction he set aside.

-At the, hearing Mr Justice Herdman held that respondent was of weak ■character and his intelligence not of a high order, that Richardson stood in a position of superiority towards him, and that lie had taken an advantage of respondent’s pecuniary position. Judgment was accordingly given setting the transaction aside and ordering the appellant to account for the moneys received bv him.

Appellant now appeals from this judgment.

i -Argument had not concluded when (the Court rose for the day.