CLAIM UNDER MORTGAGE

Sun (Auckland), Volume IV, Issue 996, 12 June 1930, Page 12

CLAIM UNDER MORTGAGE

TOBACCO COMPANY SUED The sum of £7,520 was claimed by a Riverhead farmer, Theophilus Wake, from the Auckland Tobacco Growers. Ltd., in an action commenced in the Supreme Court yesterday afternoon, and continued today. Mr. Justice Ostler was on the Bench. The major portion of the claim was a mortgage for £7,100 over 735 acres of land at Riverhead, given on July 31, 1929, to Wake by the Southern Land Company, which subsequently sold the property to Auckland Tobacco Growers, Ltd., who entered into a covenant with the mortgagee taking over all liabilities under the mortgage. The mortgage was later mortgaged to tho Reliance Loan, Mortgage, and Discount Corporation, Ltd., for £3.300. Plaintiff claimed that Auckland Tobacco Growers, Ltd., had made a default in the payment of a quarterly instalment of interest amounting to £106; that it had removed a house valued at £450 from the property, thereby committing a breach of the covenant; and that it had failed to keep the land free of blackberry and gorse as required. Through these defaults, it was alleged, the principal sum of £7,100 became due, and in addition £450 was claimed for the house, and £270 for clearing the land. The defence contended that plaintiff had assigned all moneys due under the mortgage to the Reliance Loan, Mortgage, and Discount Corporation, and therefore had no cause of action against the defendant firm. It was further contended that the defendant firm had faithfully observed all the covenants under the mortgage, and had made no default which caused the principal sum to become due. MU S. R. Mason represented the plaintiff, and Mr. Tong appeared for the defendant. (Proceeding.!