Supreme Court PURCHASE OF SHOP

Press, Volume CIII, Issue 30529, 26 August 1964, Page 23

Supreme Court PURCHASE OF SHOP

Buyer s Appeal Allowed Mr Justice Wilson, in a reserved decision in the Supreme Court yesterday, allowed F. E. Turner, Ltd., £3OO damages against Gordon Clarence Knowles and Averil Mary Knowles. F. E. Turner, Ltd., had appealed against a magistrate’s decision on June 18 which allowed Gordon and Averil Knowles £lO5 Is 7d, claimed as money owing on the sale of a business, Complete Garden Supplies, at 86 Wainoni road. The magistrate dismissed a counter-claim by F. E. Turner, Ltd., which sought £3OO damages for failure to assign the lease of the shop. Alternatively, F. E. Turner, Ltd., alleged fraudulent misrepresentation by Gordon and Averil Knowles in inducing the contract of sale. His Honour held that F. E. Turner, Ltd., had proved a breach of contract as to the assignment of the lease, and as a result the judgment entered in favour of Gordon and Averil Knowles had to be set aside. On the other hand, F. E. Turner, Ltd., had failed tn prove what damages flowed from the breach of contract, and Should have been nonsuited.

As to F. E. Turner, Ltd.'s second cause, the magistrate found that Mr Knowles had represented that he was taking home £l5 a week from the profits. Though there was no specific finding that the

representation was made fraudulently, he thought a finding to that effect was implicit in the magistrate’s decision, said his Honour. It was abundantly clear that the business was carried an at a loss, and therefore had no goodwill value. The £l2OO paid for the business included £3OO goodwill. F. E. Turner, Ltd., was therefore entitled to judgment for the £3OO. Mr B. J. Drake appeared for F. E. Turner, Ltd., and Mr J. N. Macfarlane for Gordon and Averil Knowles.