ILLEGAL PACT

Hokitika Guardian, 18 April 1932, Page 8

ILLEGAL PACT

FRAUD ON COMPANY

APPEAL COURT DECISION

WELLINGTON, April 12

The judgment of the Court of Appeal iu the case -Silver v. Mitchell was that the appeal should he allowed, their Honors expressing the opinion that, as both parties had chosen to enjier into an illegal agreement to defraud the New Zealand Trawl.ng and Fish Supply C’u. they were in pan delicto and, that being so, the Court .below should not have lent its aid to one party to recover from ’die other. Costs were allowed oji the middle scaleto appellant.

The appeal was against the judgment of Mr. Justice Blair in awarding damages against Samuel T. Silver, structural engineer, of Wellington, in an action brought against him for alleged deceit and breach of du-ty by Alexander Stewart Mitchell, of ‘Wellington, architect. in July, 1930, proceedings were taken by the New Zealand Trawling and Fish Supply Company, Ltd., against Mitchell, alleging that the latter, by providing in a specification ot a building to be credit'd for the company the sum of £1164 for reinforcing steel, when the same could have been purchased for £682, had been guilty of negligence and a breach of duty. .Uitcliejl confessed judgment for the sum of £526, inclusive of costs, and sued Silver for this sum and £250 general damages, on the grounds that lie employed Silver a-s an expert in steel construction work, and Silver, in recommending him to direct the purchase o> steel from a named supplier for £ll6v, had been guilty of dociet as well as a breach ol duty. Judgment for £32c damages, being the sum of £526 claimed, less a reasonable fee for professional services, was given in favour of he »nlaintiti, Mitchell. Defendant, Silver, appealed from this judgment.