Supreme Court.

Evening Post, Volume XXXVI, Issue 103, 29 October 1888, Page 2

Supreme Court.

CIVIL SITTINGS. This Day. (Before his Honour Mr. Justice Richmond, without a jnry.) PEDEESON V. COLONIAL MUTUAL LIFE INSURANCE SOCIETY AND HBSCOTT. This was an action brought by Ole Pederson, tinsmith, of Marton, 'against the Colonial Mutual Life Insurance Society, Limited, and George Hescott, life insurance canvasser, to recover JJISO damages for alleged fraudulent misrepresentations. The statement of claim set forth that the plaintiff was formerly the holder of a policy issued by the Government Life Insurance Department on the Bth of August, 1882, for Jl5O, payable at death or at the expiration of 25 years, the quarterly premium being .£1 5a 8d ; that on tho sth of December, 1887, he was induced by the defendants to surrendor the policy, tho inducement being a 'fraudulent misrepresentation to the effect that the defendant company would issue to him a policy at a oheaper rate and on more favourable terms, namely, a' polioy for .£2OO payable at death or on the expiration of 20 years ; that the said representations were falsely and fraudulently made for the purpose of inducing tho plaintiff to surrender his policy and accept one in the defendant company's offlcej payable only ,at death ; that in February, ' 1888; '.the defendant company issued to the plaintiff a policy for £2QQ, payable one month after proof of death ; and that tho defendant company refuse to issue a polioy on the terms promised by the canvasser. The plaintiff, therefore, prayed that the policy issued by the defendants be cancelled, and that J6150 damages be awarded to him. The defendants denied all the allegations as to false representations. One of the statements of defence originally tiled by Hescott was to the effect that the action had been commenced by the plaintiff in pursuance of an illegal agreement between him and the Government office that the latter would maintain him in the suit. This, however, was withdrawn, and another statement was substituted in which both defendants expressed their willingness to admit that the plaintiff might have signed the proposal for the polioy in the Colonial Mutual offioe under a misapprehension as to its purport and effect. They would therefore oonsent to a deoree for its cancellation, and also that the surrender of the Government policy should not be registered but should be delivered up to the plaintiff and oanoelled, only that it was not in their possession or under their control. They also denied that the plaintiff had suffered any damage. The Hon. P. A. Buokley and Mr. Stafford appeared for the plaintiff, and Mr. Gully represented the defendants. An adjournment of the case for half an hour was agreed to, and on the Court resuming, Mr. Gully said he was glad to be able to state that the matter had been disposed of without troubling the Court. Although originally a plea was put in denying geoorally the cause of action, the Colonial Mutual Company had satisfied itself 'that the plaintiff was at all events under a misapprehension as to the effect of the policy. Under those circumstances they had decided not to oppose tho prayer of the claim. They would agree to cancel the policy, and to repay to Pederaon the amount of the premium paid by him, £5 3s 6d. The plaintiff had undertaken to accept this, and oosts would be paid to him according to Bcale. The Hon. Mr. Buckley said that inasmuch as the plaintiff had practically got all he Bought, he would agree to the terms which Mr. Gully had Btated. He asked, however, that his Honour would certify that the case was one in which tiro counsel shonld reoeive fees, as it was one of very great importance, from the nature of the pleadings rather than the amount. Hia Honour agreed to certify for two counsel. Mr. Gully said it must be understood that the defendants consented to judgment on the ground expressed in their amended plea. The Court then adjourned until Friday next, at 10 o'clock.

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