APPEAL FAILS.

Auckland Star, Volume LXIX, Issue 221, 19 September 1938, Page 11

APPEAL FAILS.

COURT'S DECISION. BILL OF SALE VALID. JUDGE'S VERDICT UPHEU). (By Telegraph.—tress Association.) WELLINGTON, this day. The Appeal Court to-day dismissed an appeal against the judgment of Mr. Justice Ostler, delivered at Auckland on December 3 last, in the ca«e of Dexter Motors, Limited, v. Henry Percy Metcalfe. The facts of the case were that the appellant company entrusted the car to A. C. Gibson for "the purpose of selling it for £100 cash. Gibson had authority to hand pver the car to a purchaser as though it were his own, and to deduct his commission from the purchase price. By false representation that the car was his own property he induced one named Adams to enter into a contract to take the car and £20 in payment for another car owned by Adams. This was carried into effect, and Adams handed over his own oar to Gibson and it was registered in Gjbson's name. Gibson subsequently mortgaged the car and other property by a bill of sale to the respondent Metcalfe, who knew nothing of the fraud and who honestly thought Adams' car was Gibson's prtfp>erty. After the bill of *ale was registered appellant heard of the fraud and took the car from Gibson and sold it. In the action brought by Metcalfe Mr. Justice Ostler held that the bill of sale was a valid one and took priority to ap[>ellant's rights.

The Appeal Court, in it« judgment to-day upholding the judgment of Air. Justice Ostler, held that the instrument by way of security given by Gibson was valid, although Dexter Motors was the real owner and Gibson merely the ostensible owner of the car affected by the judgment.