MILK SUPPLY

Evening Post, Volume CIV, Issue 3, 4 July 1922, Page 8

MILK SUPPLY

QUESTIONS FOR APPEAL COURT

CITY COUNCIL & NO. 3 COMPANY

An appeal from a judgment of Mr. Justice Reed awarding the Wellington Milk Vendors' Association £880 damages against the Wellington City Council for alleged breach of contract in connection with the supply of milk during the winter months of 1920 was referred to the Court of Appeal—the Chief Justice, Sir Robert Stout, and their Honours Mr. Justice Hosking, Mr. Justice Herdman, and Mr. Justice Salmond—to-day, .Messrs. A. Gray, K.C., H. Buddie, and li. C. Heniery, appearing for the appellant corporation and Messrs. M. Myers and O. C. Mazengarb for the respondent vendors' association. The claim, for £1299, the basis of the Supreme Court action, was founded on an allegation that the City Council, which for all practical ipurposes held a monopoly over the supply of milk and cream to the vendors, had during the winter of 1920 failed to supply the vendors with the full quantities of milk and cream which they required to supply, the full needs of consumers in the hlock served, No. 3. Acicordingly, said the association, profits had been lost on such quantities as would have been distributed had the City Council fulfilled its obligations under the agreement drawn up when the .block system was decided upon. _ His Honour held that the City Council had not carried out its part under the agreement, for there was, milk in the country at a price, but he left the taking of accounts and the question of damages to an arbiter. As the result of the further examination of accounts, the sum of, £880 was agreed upon, and judgment was entered for that amount. '

To-day the evidence called in the Supreme, Court is being reviewed and authorities cited by counsel for the City Corporation in support of the several ■ contentions made, the chief point being that if the corporation did fall to supply the whole of the milk and cream required by the vendors*, for distribution, it was,- by the fact that it was not possible to obtain winter supplies from the farmers to pass on to the distributors.

The Chief Justice remarked , that if there was milk in the country, to be had at a price, or if the City Council had failed to make arrangements far enough ahead to' secure supplies of winter milk, then it might be held to be liable. , , ■

Mr. Gray replied that. the agreement seemed, to show that the Corporation was not to be held liable for a breach of contract^not due to negligence, and the Corporation did not admit any negligence in the matter of arranging for winter supplies; in fact, it had done everything possible to secure supplies, but had found it impossible to arrange with the farmers to send their milk into the depot.

"I have looked over the evidence," remarked Mr. Justice Hosking, "arid it appears that the Corporation set about arranging for winter supplies as late as January." ' ..-;'.'■ (Proceeding.)