APPEAL CASE ENDS

Dominion, Volume 30, Issue 147, 18 March 1937, Page 18

APPEAL CASE ENDS

Dispute Over Ownership

of Yacht

DECISION RESERVED Further argument for John William Shaw Mr-Arthur, company director, in whose favour Mr. Justice Johnston gave judgment in September last, in a civil action concerning the ownership of the luxury yacht Morewa, was heard in the Court of Appeal at Wellington yesterday. Appellants were the Pacific Exploration Co., Ltd., financiers, and the. Sterling Investments Co. (N.Z.), Ltd., investors, two companies of the McArthur group now in liquidation. At. the .Supreme Court hearing plaintiffs claimed that defendant, should pay to the Pacific company or to the Sterling company either the sum of £lo..”>■>■> 4/4, the cost of the yacht, or the value of tiro yacht at the date of its acquisition by defendant. Alternatively, -the claim was for payment to the Sterling company of the sun: ot £8931 9/-, being the amount owed it by’ the Pacific company for advances on the construction of (he y.nchr. to February 28, 1934, and to the Pacific company of the sum of £1403/15/4, being the amount expended by that company on Hie yacht subsequent to February 28, 1934. Mr. Justice Johnston, in giving judgment for defendant, held that the fraud alleged could not be imputed without better proof.

The case on appeal, which opened on Monday, was heard by the Chief Justice (Sir Michael Myers), Mr. Justice Ostler, Mr. Justice Smith, and Mr. Justice Fair.

Mr. G. G. G. Watson, with him Mr. H. J. V. James, appeared for appellant companies, and Mr. R. E. Tripe for respondent. Continuing his argument from tlie previous day, Mr. Tripe contended that the real effect of Hie accountancy evidence was diametrically opposed to the effect submitted by Mr. James. The £BOOO entry of December 28, 1933, in ils context, was entirely consistent with the sale from Pacific to McArthur and entirely consistent with the amended statement of defence. The case for respondent rested upon the unshaken evidence of McArthur, who, in spite of 12 pages of cross-examination, was not shaken in any material point regarding credit; the evidence of two accountants who were eminent and skilled experts; aii'tl -the supporting evidence of the books and records, particularly the balance-sheets of Pacific and Sterling and the three books of Pacific—the cash-book, the ledger, and the journal. The weight of evidence for McArthur was supported by the reasonable probabilities of Hie ease and by the fact, as found by the trial judges, that I he companies actually benefited by the transactions alleged, said Mr. Tripe. As against that, it was submitted that tlie case for appellants rested upon the interpretation placed by a servant of the companies upon one journal entry, the entry being made at a dale later than Hie transactions it purported to refer to, with no narrative, said by defendant’s accountants to be inconsistent in its, context with a sale to Sterling, and not even satisfactorily explained by Mr. A. E. J. Anderson, Public Trust accountant. Further, it was consistent with plaintiffs' own evidence. Decision was reserved.