AGREEMENT HEW ULTRA VIRES

Press, Volume XC, Issue 27426, 12 August 1954, Page 8

AGREEMENT HEW ULTRA VIRES

ARRANGEMENT FOR CAR INSURANCE Zmtand Pran AMoetaticm) WELLINGTON. Augu.t 11. The Supreme Court has restrained the Automobile AssociaHon (Wellington), Inc., from proceeding with an insurance arrangement which three members of the association had contested before the Court 7 Judgment was delivered tqday by the Chief Justice (Sir Harold Barrowclough)The arrangement or agreement entered into by the association andthe State Fire Office provided for the appointment by the association of the State Fire Office as “official insurer” for a specifled term, an undertaking by the State Fire Office to issue such- members of the association as desired it a motor-vehicle policy "without franchise" and on other specifled terms, and payment to the association of a commission on business placed with the State Fire Office by members of the association. The question before the Court was whether the arrangement or agreement was within the powers of the association, and his Honour held that it was not.

His Honour held that the plaintiffs were entitled to an injunction. Mr F. C. Spratt, with him Mr H. Taylor, appeared for the plaintiffs. Mr H. R. C. Wild appeared for the defendant.