TIED HOUSES.

Press, Volume LIV, Issue 9816, 27 August 1897, Page 2

TIED HOUSES.

(PHESS ASSOCIATION TELKORA.M.)

WELLINGTON, August 25. In the Appeal Court judgment was given to-day in a case affecting the custom of tied houses. Thie was Maoarthy v Kellahor, ift which the respondent, a publican, mort* gaged the lease of his public house to the appellant, a brewer, covenanting in thft mortgage to take all his colonial beer from the appellant during the subsistence of the security. The mortgage having becoiw overdue, the appellant required the* tfr spondent to execute, and the respondent did execute, amongst other documents, a separate deed. The covenant was not expressed to be part of the mortgage transaction by which the respondent, for an expressed consideration of £1, covenanted to take l\is colonial beer from the appellant during the whole residue of the respondent's lease, tiie appellant covenanting in the ssnw deed to supply the respondent with all the colonial beer he required, on certain terms as to payment, at the same priced, and of the same quality, as he supplied to other c'nstomets. The Court of Apne»l held, affirming the decision of the Chief Justice, that the respondent's covenant contained in the sepwaty deed was void, both ' because ifc : wae in partial restraint of trade and for merely a colourable, and also because it amounted to a lejml agreement between the mortgagor and flic mortgagee, which had the effect, of clogging the equity of redemption and attempted to give the mortgagee rights the pay , ment'of"- bis pijncipnl and interest. Tb» appeal was therefore dismissed with cosfrs^