BEAUTY SALON.

Auckland Star, Volume LXV, Issue 126, 30 May 1934, Page 9

BEAUTY SALON.

INNOCENT PARTY PAYS

BUILDER'S CLAIM SUCCEEDS.

WOMAN VICTIM OF FRAUD

A claim arising out of tlie equipping of a beauty salori, concerning the promo- j tion of which an agent was recently con- j victed in the Supreme Court of false j pretences and theft, was heard before Mr. Justice Ostler this morning. Arthur Facer (Mr. C. O. Butler), builder, of Northcote, brought an action against Olive Tui Marion Turnbull (Mr. Hendry) to recover the sum of £199, the balance of money owing on a contract for the equipment of the salon. Mr. Butler stated that plaintiff was put in touch with a man named Pearson in connection with the job, Pearson appearing to be supervising the work on behalf of the defendant. Plaintiff submitted a tender, and later had a discussion with Mrs. Turnbull and Peaison, who had the contract before them, and it was accepted. Mrs. Turnbull watched the progress of the work, and told plaintiff, when he asked for a progress payment, that she had given the money to Pearson. Difficulty was experienced in obtaining a second progress payment, and plaintiff then found that the man Pearson had stolen Mrs. J urnbull s money. He then found for the first time that there was a company known as tlie Margaret Rose Salon, Limited. Plaintiff, in evidence, stated that be submitted a tender addressed to Mrs. Turnbull. After its acceptance the latter evidenced interest in the work, as if she were the owner, selecting material and colours. She authorised £50 worth of extras. Witness said he treated Pearson throughout as defendant's agent. Progress Cheque Dishonoured. During the progress of the work witness asked for a payment of £140, and Mrs. Turnbull told him to get it from Pearson. He. received £100. When he asked for a further progress payment he was again referred to Pearson. Again lie received a cheque for £100, but it was dishonoured. In consequence he rang Mrs. Turnbull, who seemed quite surprised, and assured him that he would be paid, as she had given Pearson the money to meet the account. Defendant's Money Stolen. Mr. Hendry submitted that the contract had been made with a company known as tho London- Beauticians.

His Honor: This man knew nothing of the London Beauticians. He made an offer to Mrs. Turnbull, which she accepted. It is very unfortunate that one of two innocent parties should have to suffer for the fraud of a third. It is quite obvious defendant Rave Pearson the money, and he stole it. .Mr. Hendry: She gave it to liim for shares in the company to be known as the London Beauticians. Counsel added that defendant would deny seeing the contract letter from plaintiff. The arrangements he submitted were made by Pearson, she presumed, on behalf of the company in which she had a pecuniary interest, and in which she was to be engaged as manageress at £4 a week.

Defendant, in evidence, said that she had arranged to subscribe £250 to the company known as the London Beauticians. The name was subsequently changed to the Margaret Rose Salon. Altogether she contributed Witness denied having seen plaintiff's contract letter. After hearing a further submission by Mr. Hendry that the point at issue was whether a contract had been made between th© defendant and. the plaintiff, his Honor said it was a very unfortunate case. He felt sorry for Mrs. Turnbull in the matter, because she was perfectly innocent. So was the plaintiff, Facer. It was a question of which of the two must suffer for the fraud of the third party? His Honor added that he preferred to accept the evidence of plaintiff that defendant saw the contract. A meeting of the parties was held to consider the contract, and it was most unlikely that they would not have the contract before them. Right through defendant had held herself out as the person with whom the contract had been made. Pearson had stolen the money which Mrs. Turnbull had given him for the very purpose of paying for the work. His Honor said he was,, sorry, but she would have to pay.

Judgment was entered for plaintiff with costs.