DEBT COLLECTORS

Grey River Argus, 6 May 1936, Page 6

DEBT COLLECTORS

TO PAY £207

Charged “Court Costs”

AGAINST THEIR CLIENTS.

(Per Press Association.) AUCKLAND, May 5.

Fines and costs totalling £207 6s wen*, imposed on Percy Fraser Hodgson, maaagiag director oi the Loniin ion Mercantile Agency, Limited, and I’i'ederick William Packer, manager oi Ihe li rm’s .X iu'k hi nd office, by All. Hunt. S.M., in the Police Court, Thev were each convicted on 36 charges of committing theft by fraudulent Iv omit ling to account, for, or pay. part of the moneys received from clients under the heading of “court

The police contention was that the amounts charged under tins heading as •• summons fees” were in excess of the actual disbursements. •■This company is the largest, of its kind hi \< u Zealand,” said Mr. Spencer R. Mason, who appeared for the defence in opening his address, when ihe ea-e was resumed. “It has been built up od'i 2S vears by integrity and trust, and it is'suggested that a line of that kind not only perpetrates a lorn- series of pet tv thefts, but. does so in "the knowledge of its numerous st tiffs. Air. Mason submitted that the 5s was not a solicitor’s fee for issuing a summons, but an office charge, almost in the nature of a disbursement to eoyer the whole of the organisation which the company conducted. It included the typing and preparation of statements of claim, and other chaigos. The company did not sue, generally, without consulting its customors. In fact, it sometimes "had difficulty in persuading its customers that legal action was not worth while. There was no suggestion that there was any encouragement of summonses. Sanderson had said, in his letter resigning his position that he was going to prosecute. That showed malice, contended counsel. Lie had since engaged in a competitive business, and had flourished the matter in the faces of the Dominion Mercantile Agency’s clients. Sanderson had said he had no opportunity of seeing the books, but. he had been in charge of the office in Packer’s absence. The evidence would show that Sanderson was consumed with a desire to smash the Dominion Mercantile Agency. Mr. Mason also submitted that there was no evidence to connect Hodgson with the charges. Hodgson, giving evidence, said that the summons fees were, imposed 10 or 12 years ago. He thought that all of the clients were aware of the summons fees.

“Aly contract between this agency and its clients is one in which the greatest good faith is required,” said the Magistrate. Court, costs -were an illegal charge, he added, for such ehtrrgps could only be made by authorised people, 'fills was to prevent litigation being exploited. In this case, the 5s was coiieealed as having been a disbursement into court. “If a solicitor had done this, I think he would have been dealt with under the Law Practitioners' Act and probably struck off, and possibly prosecuted,” said His Worship. “I think the subordinate had to do what he was told, but he was a party.”

Hodgson was fined £5 and Packer IDs on each of Ihe 36 charges, with costs £-1 14s, but to allow of an appeal, the Magistrate increased the penalty to £5 Is on one charge against each defendaat.