A PARTNERSHIP DISPUTE.

Taranaki Daily News, 7 June 1921, Page 7

A PARTNERSHIP DISPUTE.

“THE GREAT BARRIER SYNDICATE.” AN INVESTMENT OF A “FIVER.” Particulars of a company venture which did not materialise came to light in the course of an action in the Magistrate’s Court, New Plymouth, yesterday. The case was a claim for £5 preferred by J. S. S. Medley against E. L. Humphries. Mr. D. Hutchen appeared for plaintiff and Mr. A. A. Bennett for defendant. The defendant was previously secretary to a company called the Great Barrier Syndicate, which -<vas formed to acquire sopie land at the Great Barrier but was subsequently wound up without acquiring the property. The amount in dispute was paid by defendant to Humphries, as secretary of the syndicate, in July of last year and, it was alleged, was part of a sum to be devoted to the securing of an option on 12,000 acres of land at the Great Barrier Island. Several gentlemen combined to make up £lOO to purchase the option, and Medley was one of them and paid £5 to Humphries. The proposals came to nothing, and the movement was abandoned. Medley applied for months and months for repayment of his contribution, but did not succeed in securing anything. During the .present action £2 4s had been paid into court as his share of the remaining moneys and the balance was supposed to have been absorbed by the expenses of four members of the company who went to the Great Barrier. The defendant, however, was not consulted in this and gave no consent, to the trip. The above facts were stated by Mr. Hutchen, who then called plaintiff, J. S. S. Medley, and evidence was givep on the lines of counsel’s explanation.

Cross-examined by Mr. Bennett, witness,, said he knew that an offer of £lB,tM)O had been made for the property, but was refused.- In this connection legal expenses would of course be incurred and he would not object to pay-ment-of. this item. He did not agree,however, to paying the expenses of four men going to the Cireat Barrier, three of whom did not know anything about farms, and also when it was well-known that they were, only going for a holiday. He did not know of any other members of- the. syndicate who refused to accept the £2.45, but lie knew that there was a lot of grumbling. For defendant, Mr. Bennett said that the money contributed by members was not, necessarily to be applied towards the purchase of an option, but was simply a contribution made to the general funds of the partnership. The price quoted for the land originally was £25,000, and after the inspection was made it was decided to offer This was not accepted and the syndicate was wound up, the agreement '{icing that the balance of moneys available was to be distributed equally among members. AH had accepted the balance available with the exception of plaintiff. The onus was on plaintiff to show that the money was paid for the special purpose he alleged. The syndicate was a partnership and the decision of the majority of those present at a meeting called to discuss affairs, was binding on all the partners. Defendant was entitled to judgment under the equity and good conscience clause, William B. Davies, member of the firm of Humphries and Davies, said that Medlev did not attend any of the meetings of the syndicate. Evidence was given by defendant, E. L. Humphries. Gross-examined by Mr. Hutchen, witness admitted the property had since beeii leased by bis firm in conjunction with three others. To 11 is Worship Nothing was said prior to the trip about paying expenses. The syndicate did not intend to farm the property, but reckoned there were immense possibilities in it and if they could have got it on -terms would havb cut it up and sold it. Evidence for defendant was also given by P. Jackson and W. L Ranger, members of the syndicate. His Worship gave judgment for plain, tiff for the amount paid into Court ( £2 4s; plus £2 7s 6<l. He found that plaintiff was entitled to contribute his share towards the general expenses which would therefore be deducted from the claim. He was not liable, however, for the cost of the Great Barrier tap.