INSURANCE POINTS

Wairarapa Age, Volume XXXII, Issue 10650, 5 June 1912, Page 5

INSURANCE POINTS

DECIDED BY MR JUSTICE " COOPER. A somewhat fine point came before Mr Justice Cooper yesterday. The parties were the Wairarapa Sawmillers' Accident Company,, plaintiff, .and the Mawawatu Timber Company, Ltd., defendant. Mr H. C. L. Robinson, of Masierton, appeared for plaintiff, and Mr C. B. Morison for defendant. The. question was whether defendant company has power to become a member of a purely mutual insurance company withunlimited liability. Defendant has no express power to take sha.res.ioi any company or enter into insurance business. It has the ordinary power to insure. It was asked that the Court should say that it had power to become a member of, a mut-. ual company. His Honour said that Mr Robinson, i bad very well argued that under the last clause such a power was implied. In his opinion, however, it would be a 'dangerous principle to concede that such lam arrangement could be irncompany was authorised to ensure itself it could enter into a- contract to mutually insure other people. In his Honour's opinion, it could do so only if it jihad express power. Ml' Robinson asked his Honour to decide .whether the Accident Company itself was entitled to accept limited companies as members, assuming such companies had the power to join. His Honour said that prima facie the Accident 'Company was authorised to enter into such a, contract if the other Company had the power. He would not decide the question, however, as it w.as not necessary for the decision of the present summons, in view, of .the fact that' Mr Morisoirs company could not legally enter"such a contract. Without calling on Mr-Morison, his Honour gave judgment for the defendant, answering the question, in the negative.