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AN IMPORTANT JUDGMENT,

', (BT TELEGEAPB.—SPECIAL- COERESPdS DENTo ' Auckland, July 18. A, judgment of considerable; importance has been given by Mr. Kettle,' SIM;, at' the Magistrate's Court. It related'to the position of the agent and his principal,' and ; has .a* bearing on; trading generally."; .-The; action was, of Pottkaemper and Co.; Kqoveyi-'the former being indent and commission agents;in; Auckland, arid, the defendant'a ,retail-dealer",' iii jewellery and curios at Napier.Th'e;facts : as ,set'out in His Worship's".-judgment;were that, in 1907, Koovey wrote'to .Pottkaemper and Cotasking them to' order and impOrt for, him some greenstone .tikis;'-and" ipendants. Plaintiffs wrote to a Birmingham firmj Keep 8r05.,-and' ordered the goods, prices; being sent to Auckland- by cable. ' . This;cable was not communicated tb- the 'defendant;'.and' the goods dulj; a'rrivod in Auckland,, the English firm'charging 345. each'for .and 25s'. for'the small tikis,, and'36s.; : for the jieridantiS. Pottkaemper and' Co:' : forwarded -the goods to KoOvey, and sent an-invojee, charging 605.ea'ch for the small tikis and'Bps!'eacn for the large ones.. ; They also .wrote 'st4ting;tha't the Home manufacturers were . demanding, adj vanced prices,' and' that in', future, they v . have to charge 655;; and'-86s'.'for the/tikis.; Mr;- Kettlo said that there': was nothing; in the correspondence to justify-" the' statement about.increased the-future. .Kooveyrefused>.to accept deliverT''of ; -the:goods, and later the plaintiffs started'-the'present;action, 1 suing him for £86 10s.'' for ' damages'!sustainea by 'reason of the defendant refusing to accept'and pay for 'goods 'bargained 'and.'sold by plaintiffs to defendant;;At the healing it was contended, on.belialf, of.; the defendant, that, the': true.-' between. the', defendant; and plaintiffs:,:was.'-that; of ■ principal arid indent; or commission agent, and'not ; tHat-' of vendor and purchaser, and- that, owing_ to the plaintiffs'. conduct -in deliberately failing tb communicate'the English'firm's quotations, and having alSo actually, concealed from defen'daril the prices charged bjvtlie. manufacturers, defendant was entitled toj'epudiate th.e;whble transaction. Mr. Kettle: upheld, the defendant's view, and.the,case:w^s. : fe-argued'Ori an amended statement' of '.claim, Messrs- Pottkaemper ;.asking for £46'•lGsii'dn';'an indemnity claim as agents.of the defendant; thus-doing away with the'; claim for damage. This the defendant also .opposed. . Concluding his judgment, Mr. Kettle said .' that parainouht and-vital principle of ; all-', agencies was "•überrima, fides " . (superabounding <ygood faith), and- that'.without, it; the Relation af t principal and agent could not.exist;'' So sedu•fously :was;. the- principal guarded-by the Courts that all departures' from it were' esteemed frauds upon-the.confidence:'.bestowed. ■The Courts had over again- held that it was the'bounden duty .of "agents to make full and fairidisclosure to their'principals of all ■ facts and circumstances ;which. came to Itheir knowledge in any'way, calculated .to influence their principal's conduct'./ Tho plaintiffs in the present case'hiid; in his'opinion, forfeited their right to claim indemnity-from 'the defendant, and their.conduct, entitled tho, dofendant 'to- rcnudiate the agency and-everything dono by.the plaintiffs thereunder. Tho plaintiffs would ;be'.nonsuited with costs. ■ . '", ; . ;

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/DOM19080720.2.60

Bibliographic details

Dominion, Volume 1, Issue 254, 20 July 1908, Page 8

Word Count
600

AN IMPORTANT JUDGMENT, Dominion, Volume 1, Issue 254, 20 July 1908, Page 8

AN IMPORTANT JUDGMENT, Dominion, Volume 1, Issue 254, 20 July 1908, Page 8

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