£1000 Claimed In Car Resale

Press, Volume CIII, Issue 30534, 1 September 1964, Page 3

£1000 Claimed In Car Resale

(New Zealand Press Association) AUCKLAND, August 31. An Auckland motor firm seeks damages of £lOOO for alleged breach of covenant regarding the resale of a car in an action begun in the Supreme Court af Auckland today.

The hearing is before Mr Justice Wilson. The plaintiff is Campbell Motors, Ltd., and the defendants are Eric James Claude Storey, railways employee, as first defendant,

and James Kirkpatrick, Ltd., trading as Midland Motors, as second defendant. The plaintiff alleges that in 1962 it sbld a car to Storey and that Storey then resold it in breach of a covenant between them not to do’ so within six months. The plaintiff also alleges that Storey and the second defendant conspired to breach the covenant. • Mr D. S. Beattie, for the plaintiff, said in opening that a judgment in the plaintiff's favour might help to stamp out what was quite clearly “plain racketeering.” Same Day

Storey was alleged to have bought a car from the plaintiff and on the same day to have resold it, acting in blatant breach of covenant. Mr Beattie said that a clear expression from the Court of the consequences of acting in breach of a covenant such as this would have a beneficial effect in tending to put an end to an undesirable practice of persons being permitted to sell new vehicles technically classed as secondhand at an otherwise illegal price, thereby taking in improper advantage of the unsatisfied demand for new vehicles that existed in the New Zealand motor-vehicle business at the present time. The hearing will be con'tinued tomorrow.