Guaranteeing an Overdraft.

Evening Post, Volume XLI, Issue 140, 16 June 1891, Page 2

Guaranteeing an Overdraft.

[By Telegraph.] ' [united peess association.] Chbistchurch, 15th June. An important case, arising out of the transactions of the late J. B. Gresson, was heard at the Supreme Conrt, before Judge Denniston and a special jury of twelve, today. It was brought by the Bank of Australasia to recover .£SOOO from Mr. Cook Rcgnell, on account of a guarantee of Gresson's overdraft signed by him. The Bank advanced .£SOOO on this. Defendant pleaded that Gresson had obtained his signature fraudulently. He read a guarantee stating tho amount at .£SOO, which was what defendant agreed to become responsible for, but the document was filled in for .£SOOO either then or afterwards. Regnell did not notice when he signed how it was filled in, as he had implicit confidence in Gresson, who had managed his affairs for many years and always acted honourably. Eegnell also signed a certificate to the effect that the guarantee had been read to him, and he acknowledged himself responsible for the amount mentioned therein. The Bank contended that he had been guilty of negligence, but the jury by two-thirds found he had not. Mr. Justice Denniston gave judgment for the defendant, but there are legal points to be argued in Banco. Messrs. Wilding and Stringer appeared for the plaintiff, and Messrs. Harper and Martin for defendant.