IMPORTANT CLAIM

Hokitika Guardian, 24 March 1933, Page 3

IMPORTANT CLAIM

FREEZING COMPANY SUED

CONTRACT FOR SUPPLY OF

ELECTRICITY

WFILLTiNiGii'ON, fcdrch 21. Legal argument is being- heard by Mr Justice Glair in toe Supreme Court in a, case of great importance to electric power L-cards. ' The parties are the Hawke’s Bay Electric Power Board, and Thomas Bortlnvick ; and Sons (Australasia), Limited.

The board, is churning, from the company £2033, which ...it al.eges is payable 'under the terms, ,of an agreement entered into in 1927 for the supply and reception of electric cur-l-eut at the freezing works of the company at Pakip-aki, pear Hastings. Theworks were very extensively damaged by the Hawke's Bay ('.earthquake on -February 3, 1931, and were not rebuilt. The electric supply agreementwas for five years > with a guarantee by the company to pay a minimum amount of £IOOO to the board. The claim of the power board is for the period after the earthquake, and until the termination of the agreement on November 1, 1932, together with an additional period of six months by way of notice.

! The hearing of evidence was taken in Napier on March 6,7, 8, before Mr Justice Blair, who then adjourned the action for the heading i of. d airgmHept. . The presenta- ; .trion of this by Mr H. F. Johnston, i K.C., .for the defendant 1 company, iiccupkd the whole of to-day. The | main defences to the- claim are that the agreement was frustrated or ren- | dered impossible of --performance by the earthquake; that the' power board, because of the damage 'sustained to its plant by the earthquake, wes not able to .supply power for a period cf several days, during which time the- defendant company had to arrange its own lighting in order to load, out of cold stores the frozen meat which they contained; and that since the earthquake most of the defendant’s stock bought in Hawke’s Bay has been killed and frozen at two other freezing works adjacent to Hastings, which lias resulted in increased consnmpton of electrical energy l>,y these two works. The hearing will be continued tomorrow.