GOVERNMENT WINS.

Auckland Star, Volume LVIII, Issue 211, 7 September 1927, Page 8

GOVERNMENT WINS.

FOREST COMPANY ACTION.

MMJLMD OUT.

RIGHTS OF THE CfiOWS.

The Forest Service vrre plaintiffs in *a act ion beard at Uμ isipreate Court today. Thcr claimed £7>J aad cert* from Xt* Zealaad Redwood Foretta, Ltd., of Auckland, being tbc price of 250,000 redwood Medliags delivered tt&der a coßtnct of August, IVSS. Tbere vu a counter-claim a&wustizig to £1150 oa the ground tbat the contract vma for half a minion wwdlings, and tbat o&l; half tbat number was delivered. Mr. S. L. Patenoa represented tbc Department, and Mr. £. IL Xortacroft appeared for the eoapany. At tbe oauet of tbc proceeding*, Mr. Patenon formalir objected to tic coanter-daim briaf broaeit, dtiag mt bU aatbority tbe Crown 9niU Act, wbicb preclude* a c«aater-cla!m in an action by tbe Crown. Tbe defence to tbe counter-claim was tbat tbe coatract was subject to tbc crop at tbe Government aj Kotoraa. Tbs crop fell below expectation*, and it was not po«*ible to eupplr the fall half Billion, tbe 250,00 delivered bein? tbe ntaott qoantitv available nad«r tbe csrancftance*. Mr. Xortbcroft aaid tbe action fcad been peadin; for aone time. Certain difference* had arisen between the parties tbat tbexe were reflected in aome very acrimonioos correcpocdence -mhidi had been exesacped. Tbe defeadaai cosopa&y bad undertaken exteariv« adrcrtisinc an tic expecUtaoa of reeeiriag the foil order, while advances had alao beea made to boDd-boideriL. Tne omat*rclaita wa« in tbe natare of a defence, the Department's claim aot t~imm &*- paled. *«t m Tcckstdl OMcU«. Mr. Fstenon said tbe objection «&der tbe Crown Salts Art had not been railed oa merely technical graoads. in factthe Department bad good reason for it* action. An offer in wttleaeut lsd Jtim made which wa* more than drfeadaats woald have had reaaoa to expect to obtain by litigation. Every endeavour had beea made to ttttfe the case, bat the unreasonable attitnde adopted bv defendants, and tbe special circumstances of the case bad resahed in the Department deciding to sUad oa it* knl richt«. " Judge Stringer adjourned the proccediag» for a sbort time in order to consult lecal autboritir*. "I regret to ut thf objection raited on behalf of tbe Crown i« fatal." *aid hi« Honor oa retnrnlas. He would have tbougfat it would have been more convenient to have dispo*ed of tbe whole matter in one action, but tbe counter-claim was not by way of settkm«nt. Tbe tbeory underlying* tbe Crown Puit» Art was tbat it was beneath tie dignity of tbe Crown to have to anwreT a counter-daiia. Tb? cbiiicants mart file a petition for tbesr case to be b«ard *» a feparate action. Judgment w»» -ivea for the Crown, with costs aerordin* to «le, bat hi. Honor pointed out t*« tbi» jndenswrt in no way as>rt»d Qμ ngbt of the defendants to prowrJ *:&