A Cheque Transaction.

Taranaki Daily News, Volume XLVI, Issue 84, 13 April 1904, Page 2

A Cheque Transaction.

(l'er I'ress Association). WELLINGTON, April 12. Dr. McArthur, S.AI., delivered judgment in a case recently heard of W. 0. Soiuerville, solicitor, v. Samuel J. Gibtjjons, a Claim of £SO Ts 9d. His Worship suicl the plaintiff's statement of claim set. forth tlui.t he was the holder in due course or l'or value of a cheqiue niude, signed, and issued by the defendant, dated 13th .May, 1002, and drawn on the Hank of New Zealand, Marlon, for £44 os, mid that the said cliuine was duly presented for payment and was dishonoured. Hefendnnt had not paid the same, nor any part thereof, wherefore plaintiff prayed judgment for the amount of the said cheque and interest with costs of action, llis Worship said the cheque was lintde ijv defendant und given by him to one Livingstone, as defendant said, in payment of wagers which had been lost by him to Livingstone at totul|isaltor odds. It was then negotiated by Livingstone to plaintilT, \?ho asserted that he receiwid it in due course without any notice that the cheq'ue was in payment of wngora» After reviewing the evidence his Worship said it was the duty of the plaint'ill to have impured further before taking the cheque, which was given for wagers made at totnlisator odd«, and plainUfV might easily have learnt this liet'ore he accepted it. If, then, the cheq'ue was given as defendant had stated, could plamtilT recover '? liis Worship thought not, and after citing authorities sai'd ; "I am therefore of opinion that the cheque was taken for an illegal consideration ; that, that, defect in tile title cannot be ranudicd; that plaintiff had at hand the means of learning the nature of the consideration but failed to avail himself of tliein, and that by reason of the illegality of the consideration ha cannot recover." Judgment was for defendant wiliiout costs. Mr Young (for the plaintilT) asked leave to appeal, as the question was one of considerable importance, and the application was granted.