CLAIM AGAINST DAIRY COMPANY

Hokitika Guardian, 8 December 1930, Page 8

CLAIM AGAINST DAIRY COMPANY

SUPPLIER OBTAINS JUDGMENT. PAHIATUA, December 4. Reserved judgment was given by Mr J. Miller, S.M., in an important test case, Martin N. Olsen against the Mangatainoka Co-operative Dairy Company, claim £4 11s lOd, involving the method of. pay-out and an interpretation of the Articles of Association,' Clfijfse 18’ of which reads as follows: “After payment of working expenses, also any payment to the contingent fund as may be deemed necessary by the directors, interest shall be paid by the company on shares if the directors shall so decide.” Clause 19 reads: “Subject to the payments as provided in Clause 18, the whole of the profits of the Company shall be divided amongst and paid to the contributors of milk to the company in proportion to the butterfat actually contributed or supplied by them individually to the company as appears in the company’s’ books.” Plaintiff’s counsel contended that yearly supply was meant in Article 19 whereas the defence said the practice of the Mangatainoka Company was similar to that of many other factories in the district, which made monthly advances as complete pay-touts for each month subject to the bonuses, if any, paid at the end of the year. in a lengthy judgment, the Magistrate held- in favour of plaintiff ’ and judgment was given for the amount claimed.' with costs. Security for appeal was fixed at ten guineas.