REFUSAL TO PAY.

Auckland Star, Volume LIX, Issue 248, 19 October 1928, Page 8

REFUSAL TO PAY.

INSURANCE COMPANY SUEDI

BT.TTBigI.TF. HOUSE BUBHEDk

OWNER CLAIMS £375.

Refusal by the Standard Insuraaet Company to pay out on a polity is accordance with its terms, when th» building was destroyed by fire, on the ground that the house had not been defi> nitely occupied for 30 days, ended in much argument when the company was sued before Mr. Justice Blair in th« Supreme Court this morning.

Stewart Douglas Harold James (Mr. Learv), owner of the house, claimed £373. from the company, or, alternatively! against Samuel Vaile and Sons, Ltd. (Mr. McVeagh).

Messrs. Vaile and Sons, Ltd., was appointed attorneys while plaintiff ww living temporarily abroad. When ha returned to Auckland early this year tha arrangement was continued. The house had been insured for sums of £300 and £200, but was later burned.

The house was subject to a mortgage of £500, and the Standard Company mad* the mortgagee an ex gratia grant of £325.

That Messrs. Vaile, as agent?, had negligently failed to notify the Standard Company that plaintiffs house was unoccupied was the contention of Mr. Leary. As an alternative, he said that the frequent attendance of plaintiff at the house to repair it constituted occnpancy. Reasonable supervision, said counsel, could be considered occupancy. Forfeiture of the policy had not arisen ia terms of the policy. That James had terminated his agree* ment with Messrs. Vaile a month befor# the fire was the defence.

The defence of the insurance company* for whom Mr. Richmond and Mr." Uren appeared, depended upon the clause that notice of cessation of occupancy must b» given within 30 days. Charles Frederick Bennett, land agent, said it was the practice of his firm, when acting as attorneys, to act as though they were the owners of the house. If a property should be vacant, insurance companies were notified within a week. As far as he knew ; that was the general practice in the business. Ha would feel in duty bound to notify hit principal should the latter resume control of the property, if an insurance company had not been notified.

In answer to a question by Mr. Richmond witness said he regarded a honsa as unoccupied if nobody was actually living in it.

Plaintiff stated in evidence that during the six weeks from the time the house became unoccupied to the date of its destruction, Messrs. Yaile had the key. Witness now and then obtained the key to enter the place to repair it. He denied that he had ever informed Messrs. V aile on February 23 last that their ajrencv was at an end. They were still acting when the fire happened on March 2ti. Witness told Messrs. Vaile of the fire, and found they already knew. Two days later they sent him a cheque in final settlement of their transactions for him.

Under cross-examination witness said he last got the kev from Messrs. Vail® two days before the fire.

-Asked what was the cause of the fire, witness said he did not really know, but he understood that an electric wire fused.

This fusing business is fast taking the place of the oat and the old said Mr. Richmond scepticallv.

(Proceeding.)