LEGAL CHARGES.

Southern Cross, Volume 2, Issue 28, 6 October 1894, Page 8

LEGAL CHARGES.

A decision of some moment to all having dealings in property was delivered by His Honour Mr Justice Williams at the last sitting of the Supreme Court in Invercargill. The question which called it forth cropped up at the annual meeting of the Southland Building Society, when the right of its solicitors to demand £1 Is by way of production fee to allow a second mortgagee to register his security Avas challenged. Acting on the advice of Mr A. C. Henderson, the fee was not paid and in Chambers His Honour directed the registrar to register the document. The following is His Honour’s memorandum :—“ The refusal of the registrar was without justification. The certificate of title is not the property of the first mortgagee; he is only entitled to the possession of it, and he cannot prevent other instruments being registered, but on the contrary is bound to produce it in order that it may be registered. There is nothing in the Act which allows the first mortgagee to charge any fee for its production. If, however, he is not compellable to produce it without payment of the cost of producing it, this payment should only be a charge as a compensation for trouble incurred in bringing it to the office. If it is already in the ofiice for another purpose there would be no possible claim for any payment, and the first mortgagee has no poAver to prevent the registration of a second mortgage, nor should the Registrar refuse to register. As the Registrar has not registered the second mortgage, but has parted with the certificate without registering it, he must now get back the certificate, and. register it, and if there is anything to pay for the production, he must pay it himself. Order in terms of summons.” The decision will be hailed with delight by all who believe that legal charges and procedure might be greatly cheapened and simplified. The pity is that the protest Avas notmade years ago.