DISPUTE OVER GUARANTEE.

Taranaki Daily News, 6 February 1920, Page 6

DISPUTE OVER GUARANTEE.

STOCK AGENTS AND DEALERS. •• In the Supreme Court at New ; Plymouth yesterday, the Stratford branch of the N.Z. Loan and Mercantile Agency Co., Ltd. (Mr. A. H. Johnstone, with him Mr. L. M. Moss, Stratford) proceeded against Robert Willis, farmer, Rowan (Mr. T. Neave, Wellington) for £43 i! and interest. The facts of the case were that in 1013 George E. Willis commenced dealings with the plaintiff company, with whom an account was opened. His indebtedness had reached £350 before any security was required. His brother, Robert Willis, then guaranteed the account up to £4OO. Some time in April, 1915, the account had risen to £IOSO, and Robert Willis signed an endorsement on the guarantee, agreeing to allow the account to fluctuate up to £IOOO. George Willis went into camp in April, 1918, and prior to going gave a mortgage of his stock to the company, and a power of attorney to Robert Willis. George Willis signed a statement of lug account with the company, and paid £l9 on account. It was ascertained that there would probably be a loss to Robert Willis of £IOOO, and it was suggested the life of George Willis should be insured and the policy assigned to the company. George Willis subsequently died, and when the company realised the security given him there was a deficiency of £llOO. A demand was made on Robert Willis for the amount of his guarantee plus a year's interest at 8 per cent., but.liability had been denied. The present indebtedness of the estate to the company was £IOO2 2s 9d. Evidence was given by the manager of the branch (Wm. Alfred Hewitt) who, in cross-examination, denied knowledge of an assurance to the defendant by his company that George Willis' account would not be allowed to exceed £4OO. Percy Thompson, Stratford, solicitor to the company, also gave evidence. The Court adjourned till 10 a.m. today.