PRIVY COUNCIL CASE

Evening Post, Volume CXX, Issue 134, 3 December 1935, Page 11

PRIVY COUNCIL CASE

PUBLIC TRUSTEE V. LYOU

JUDGMENT RESERVED

(Received December 3, noon.)

LONDON, December 2.

The Privy Council has reserved judgment in the case the Public Trustee of New Zealand, versus Lyoni

In June, 1934, the Public Trustee, as administrator of the estate of the late George Douglas Lyon, farmer, of Murchison, was granted leave to appeal to the Privy Council on a question concerning a life insurance policy taken out by the deceased. The case originally was presented in an originating summons issued by the Public Trustee to determine whether or not the provisions of the Life Insurance Act, •which exempted the proceeds of a' policy or policies of insurance up to £2000 from payment of debts, applied to the proceeds of a policy taken out by Lyon in Scotland before he came to New Zealand. Mr. Justice Ostler was asked in the Supreme Court to decide whether the widow, Sarah Chari lotte Lyon, should receive the proceeds, or whether, if they were not exempt, they should be made available for the creditors. The Judge held that the proceeds of the policy in question were not exempt, and that the New Zealand legislation did not cover them. This decision was reversed by the Court of Appeal, and application was then made for leave to appeal to the Privy Council.