IMPORTANT LEGAL DECISION.

Patea Mail, Volume IV, Issue 341, 24 July 1878, Page 4

IMPORTANT LEGAL DECISION.

At the lI.M. Court, Dunedin, a decision of considerable interest to School Boards, affecting the question ■whether rates can bo legally imposed on school buildings, was given by Mr J. Bathgate, E.M. The North-East Yalley Hoad Board sued the Otago Education Board for £ll, alleged to bo due for rates by the defendants in their capacity as owners of various school buildings situated within the road district. The defendants pleaded: 1. That the defendants, a statutory body, cannot pay money out of the fund at their disposal, except as specially authorised by statute; that their authorised expenditure is expressly defined by section 19, of the Education Board Act, 1876, in which there is no mention of rates. 2. In the heading of the rate-book, the local body is described as the Noith-East Valley Koad Board, whereas there is no such Corporation. The plaintiffs are incorporated under the title of the District Board and Batepayers of the North-East Valley Hoad District, and any rate-book bearing to be made for another local body, cannot be used by them, and is of no value to them. B. The Education Board are only trustees for Her Majesty. They are not beneficially interested in the lands held by them, and they hold only on behalf of the Crown. Lands, the property of Her Majesty, being exempt from rates under the “Eating Act, 1872,” section 87, the defendants cannot be charged rates for lands held by them in trust for the Crown. His Worship, in giving judgment, said with respect to the first objection, he was of opinion that the Education Board had authority to pay rates if they were legally chargeable. Some confusion must have arisen as to the title of the body. He thought that the body was the administrative body conducting the business of the Corporation, and that it Avas a body within the larger one, with defined powers and functions. One of the powers of the body Avas to levy assesments. By the Eating Act, the form of the rate-book was prescribed. It contained a blank for the insertion of “ the local body .” In the interpretation clause the Avords “local body” meant “any "body empowered under any Act or Ordinance, to make and levy rates.” In the Otago Eoads Ordinance, 1871, the district Avas described as “ The NorthEast Valley.” It Avas not necessary to insert the full designation of the Corporation in the heading of the rate-book, but only that of the Board, which is the local body as defined in the Act. It Avould have been more technically correct if the word “district” had been inserted between the words “ road” and “ board,” the districts in the schedule being called “ road districts,” but he AA r as not prepared to pronounce the rate-book invalid on ) account of the omission of the word |

“ district.” The objection lhat the property for which rates were demanded ■was held by the defendants as trustees for Her Majesty, and was therefore not liable, was of some weight, but the defendants were stopped from making objections to the rate-book. On the whole, he saw no reason why the rates sued for should not be paid. Judgment would be for the plaintiff, with costs.