NO PROOF OF CONTRACT

Dominion, Volume 18, Issue 117, 9 February 1924, Page 4

NO PROOF OF CONTRACT

CLAIM AGAINST CITY COUNCIL ' A DEBENTURE ISSUE An action arising out of the issue of Wellington City Council debentures, came before His Honour Mr. Justice MacGregor and a jurv of twelve_in the Supreme Court yesterday, when Charles Thomas Gayne. farmer, now of Wellington. formerly of Otane and Levin, proceeded against the City Council lor the recovery of £609 Os. 6d. for an alleged breach of agreement. J 1 r tiff conducted his own case. Mr. J. O’Shea (citv solicitor) npeared lot the defence. Mr. George Gapes was forempiai°ntift' stated that the City Council published a prospectus calling for tmioers for £250,000 worth of debentures. He applied for £2400 woruh and forwarded the amount to the corporation. After 18 months had elapsed the council sought to repudiate the investment and offered him his money back with interest at the rate of 5 and 3->-48ths percent. He refused the offer. Idamtiff claimed that the interest should have been at the rate of 64 per cent., and that the investment should have been honoured instead of the money being returned after the matter had been held over for 2| years. Mr. O’Shea maintained that no contract had. been, proved between the parties for the issue of debentures. The monev had been returned with interest. He urged that plaintiff must be non-suited. His Honour considered that plaintiff must be non-suited under the provisions of tho Municipal Corporations Act as there had been no proof of a contract. Plaintiff had to prove (1) that there was a legal contract; (2) if so, that there had been a broach; and (3) that damage had thereby been caused to plaintiff. What plaintiff contended, however, had not been made clear to His Honour. At all events, he could not succeed in establishing a case in accordance with the' - law. His Honour advised plaintiff to seek legal advice, instead of relying on his own non-ability. Plaintiff said he had found it necessary to “cut his cloth according to bis suit.” He had not been in a position to engage professional services. His Honour remarked that it seemed to him that when a man was in a position to invest £2400 in one deal he would be in a position to engage professional services.