WAS IT A LOAN?

Evening Post, Volume CIV, Issue 24, 28 July 1927, Page 12

WAS IT A LOAN?

A BREWER'S FINANCES

CLAIM FOR £200 SUCCEEDS

Money advanced in connection with the reorganisation of the finances of a brewery business at Pctone was the subject of an interesting judgment given by Mr. E. Page, S.M., in tho. Magistrate's Court to-day. Tho case was one in which George George, res-taurant-keeper, of Wellington (Mr. W. P. Shorland), claimed repayment of £200 alleged to have been lent by him to Mark Herbert PAnson, brewer, of Petono (Mr. A. B. Sicvwright). In June, 1926, said Mr. Page, the dcfondant, finding that his finances roquired to be put on a better footing, entrusted Mr. F. W. Vare, a Wellington accountant, with the problem of reorganisation, and executed in his favour a general power of attorney. From that date onwards Vare managed the firm's finances, banking all the money roceived and discharging current liabilities by cheques signed by him alone. In October, 1926, Vare got into touch with the plaintiff, and invited him to put soino money into the business. The plaintiff paid over to Vare two sums of £100 each, which he alleged were by a loan to the defendant. The answer made by the defendant was that tho money, if paid by tho plaintiff to Vare, was paid without his knowledge or authority, not by way of a loan, but for tho purchase of shares in a company that was proposed to be formed to take over the business. I'Anson claimed, therefore, that the plaintiff's remedy, if any, was against Vare, and not against him.

"I do not propose to detail the steps taken by Vare and by tho defendant in relation to the plaintiff," continued tho Magistrate. "It is, I think, established that the money was advanced by way of loan, and, though paid to Vare, ho was authorised to receivo it, and did receive it, as agent for the defendant, in connection with whoso business it was utilised."

Judgment was given for the plaintiff for the full amount claimed, with costs to scale.