NELSON SHARE CASE

Evening Post, Volume CXIII, Issue 109, 10 May 1932, Page 14

NELSON SHARE CASE

JUDGMENT TO STAND

JCOURT EQUALLY DIVIDED

As the members, of the Court were Equally divided, two Judges holding that the appeals should be allowed and the remaining two that tho appeals should be dismissed, the result of the tearing before the Court of Appeal of three cases in each of which the General Mortgage Corporation, Ltd., was the appellant, was that no alteration "was made in the judgment of Mr. Justice MacGregor in ' the Supreme Court. Tho respondents were Sidney Alfred Gibbs, Harold Leon Harley, and Charles Bobert Duke. Tho reserved judgments of the Court of Appeal Bench wero delivered to-day.

The three appeals were heard to: gether. Last year, in tho Supreme Court, before Mr. Justice MacGregor, three Nelson, residents, Harold Leon Harley, solicitor, Dr. S. A. Gibbs, and Charles Robert Duke,, architect, proceeded against the General Mortgage Corporation, Ltd., alleging that they had been induced to apply for shares in the defendant corporation ■by the false and fraudulent misrepresentation of the accredited agent of the com-, pany. His Honour gave judgment for the plaintiffs, and it was from this judgment that the appeal was made. The Chief Justice (Sir Michael Myers) and Mr. Justice Herdman, in their reserved judgments, agreed that the appeals should be allowed. Mr. Justice Blair and Mr. Justice Kennedy, in separate judgments,. said that they thought the appeals should be dismissed.

After the judgments had been read, the Chief Justice said ' that as' the Court was equally divided the judgment of the Court below stood, that being a principle laid down in a case previously decidod, .

In the Supr.emo Court proceedings Mr. Justice MaeGregor gave judgment for the plaintiff in each of tho three cases for (1) rescission of the" contract to take shares on the ground of misrepresentation; (2) rectification of the share register or list of contributories of the compariy by removing the name of the plaintiff therefrom; (3) payment by the defendant company of all moneys paid on application and, or, allotment, with interest thereon at 6 per cent.'from-date of payment; and (4) £.31 10s in full costs of tho action, along with disbursements, witnesses' expenses, and interlocutory proceedings, to be .fixed by the Registrar.