MOTOR SALES AGENCY

Evening Post, Volume CIX, Issue 124, 28 May 1930, Page 13

MOTOR SALES AGENCY

ACCOUNTANT'S CLAIM

ALLEGED BREACH OF

CONTRACT

Claiming a breach of agreement, William Gaston .Walkley, public accountant, of Hawera, proceeded against General Motors (N.Z.), Ltd., in the Supreme Court to-day ior £563 damages. ...... His Honour the. Chief Justice (Sir Michael Myers) presided." 1....' ': .'. Mr. Spratt, with him Mr. L. K. Wilson, appeared for the plaintiff, and Mr. H. F. O'Leary for the defendant. The statement' of claim set out, that in January last, at the request of-the defendant, the plaintiff took steps to form a limited liability company to take over the existing agency for the retail sales in Wellington of Chevrolet cars arid trucks and G.M.C. trucks under the General Motors Franchise. For his work the plaintiff was to be entitled to a brokerage of 5 per cent, on the capital subscribed. On 26th February, this year, the defendant, it was contended, wrongfully repudiated the agreement. The defence was a general denial of tho agreement, and that if any one purporting to act on behalf of the defendant entered or helped to enter into the arrangement with the plaintiff set out in the statement of claim he had no authority to do. so. NO WRITTEN AGREEMENT. /' In opening, Mr. Spratt said that the alleged agreement was not in writing, and correspondence or written memoran-. da were very scanty, but none the less he submitted that a clear agreement had been made out and that the breach was equally definite. General Motors, Ltd., •had no direct contact with the general public in the sale of motor-cars, for all the retail sales were done through what were called distributors.. It was claimed that Mr. Josephson,' who was in charge of the department of General Motors, dealing with the appointment and supervision of retail distributors, made overtures to the plaintiff in Wellington concerning the formation of a distributing company., Mr. Walkley returned to'Hawera and made inquiries regarding capital.'. Telegrams followed, but nothing definite was done until after Christmas,, when by arrangement, the plaintiff met Josephson in Wellington. On 7th JanuaT;- the plaintiff was invited by Mr. A. T. Barrow, sales manager of General Motors, to put his proposition into writing, which he did. On 18th January, the plaintiff received a message from Josephson, aßking him to go to Wellington,' because there had been a leakage concerning'the formation of a new company. The plaintiff on 20th January saw Mr. M'Hardy Forman, managing director of General Motors, Mr. Barrow, and Mr. Josephson. Ho satisfied Mr. Fonnan as to tho leakage of information, and informed him of the altered position regarding capital for the new company, but stated that he thought he could still get .capital. It was claimed that the plaintiff was told to go ahead, and when formed the company would have-the franchise. Subsequently Mr. Josephson went to Hawera to assist the plaintiff* in putting tho proposal before prospective shareholders. On 26th February they were ready as nearly as possible to go to registration, but Barrow, however, then intimated that he was sorry but, the deal was off. PLAINTIFF'S EVIDENCE. Evidence was given by the plaintiff. He said that when he, with Josephson, was asked to see Mr. Barrow on 26th February, and was told that the deal was off,, he was not given the reason for the decision. When he asked for the reason he was informed Tjy Mr. Barrow that it was Mt. Forrnan's instructions. (Proceeding.)