GUARANTEE FOR BROTHER

Evening Star, Issue 19985, 1 October 1928, Page 8

GUARANTEE FOR BROTHER

W. D. LYSHAR'S APPEAL I E’er Uxn'tu Bitiiss Associatiox.] WELLINGTON, October .1. Tho Court of Appeal is to-day engaged in hearing the case of William Douglas Lysnar (Gisborne), solicitor, versus De Pclichct, M'Leod, and Company, Limited. Appellant appeared m person, and respondent company was represented by Messrs M. Myers and Wauchop. Tho case consists of two appeals ot \V. D. Lysnar from the decisions of Mr Mr Justice Ostler, given in August of this year. Tho facts leading to the first appeal are that in March, 1920, G. H. Lysnar, a brother of appellant, borrowed from the respondent company To,ooo, and to secure (in part) this advance appellant executed in favour of tho respondent company a guarantee to the extent ol £;;,000. 'The deed of guarantee contained a provision that appellant should not be entitled to call upon the respondent company to transfer to him whatever securities they held in respect of the debt until tho whole of the moneys duo to them by G. H. Lysnar should bo paid. In 1927 G. H. Lysnar got into financial difficulties, and a demand was made upon appellant lor tne •amount of his guarantee. In June oi that year appellant replied stating that ho would pray tho amount providing that tho respondent company would, immediately upon payment, translcr to him all file securities they held Irom G H. Lvsmir to secure their whole indebtedness. This they roluscd to do, and action was brought on the guarantee. Judgment was given lor tlvj respondent company for the sum of £J,OOO and interest from the date or the first demand. , Appellant is now appealing from tins decision on tho ground that it was erroneous in its determination of the law.