INDUCED TO SIGN DOCUMENT.

Hawera Star, Volume XLVII, 26 April 1928, Page 5

INDUCED TO SIGN DOCUMENT.

WIFE’S PLEA IN BANKRUPTCY. • LIABILITY THROUGH RELATIVES. Adjudged bankrupt on April, 3 on the petition of a- single- creditor, the liability to whom was said to have -been contracted through a third party, and without the full cogniisnnce of its possible effect, Constance- Annie Blennerhassott, a manned woman of E-ltham, was unable, owing to illness, to appear at the meeting of creditor®) summoned before the D.O.A. (Mir R. S. Sage) at Hawera on Tuesday. On bankrupt’s behalf, a medical certiffoa'to of illness was received, stating itwas quite impossible for her to attend at court and highly inadvisable for her, to attend to any business at p-rosent. She was represented by Mir J. L. Weir, while the creditor, who did not appear, was represented by Me E. M. Beeeliey, under instruction.

The financial statement showed onjry one debt, the sum of £204- 13s 2d being owing to Hugh Delaney, farmer, of Matamata. Against this there was no ee-cuirity. There were no other liabilities and no assets. FARM PROPERTY PURCHASE.

“In 1923 my -husband, Leonard Blcnnerhiasseit, and my father-in-law, Arthur William Bienneirhaissett, - purchased a farm near M-atamata,” said bankrupt in her written statement. “I do not know who the seller was nor the price or termis. I understand that tits seller guaranteed £2OO of my husband’s account at the bank -to enable my husband and fabher-in-i’aw to carry on farming operations, etc. The seller subsequently left the district, and Hugh Delaney, who- has made me bankrupt, agreed- to be guarantor in nis piacs. “I was induced by my husband and father-in-law to . isigii some kind of document indemnifying Hugh Delaney in respect of his guarantee, although I confess I did not understand what the matter was about. As a result of the price paid for the farm my husband and fatlior-,in-]aw Iliad to abandon, it and my husband'/ went ■ bankrupt. T then returned -to Eltham and had to start piano* teaching to make a living for myself and my two children. In October, 1927. I received a letter from the solicitor for Hugh. Delaney threatening to sue me for the amount paid by him under the guarantee, and I instructed my 'solicitors, Messrs Spine and Weir, to write and explain my position fully.” LOANS NOT REPAID. The -letter referred to by bankrupt was forwarded in October, 1927, and stated it was utterly impossible for her to attempt to- make any payment or any promise of payment. She bad at one time -a little money of her own, and was induced both, by her husband and his father to lon cl that money to them. They had! had the benefit of a. good few hundred pounds, of which 'they had never repaid anything nor had ishe received any payment of interest. She bad been reduced for some years past to the expediency of having to teach music in order to provide her two children with food and clothing. Although her husband was still alive, she obtained no help from him. As Mrs Blennerh assett .received no value or gain out of the debt to Hugh Delaney, it wais /suggested he should abandon proceedings, n,s the ultimate making of Mrs Blennerhassett a. bankrupt would bring nothing, blit would only add a certain amount of distress of mind to her. NULLA BONA WARRANT. “Notwithstanding this letter.” continued the statement, “Hugh Delaney proceeded and-'obtained a judgment

against an© on December 20, 1927, and then followed this up with a. distress warrant, which was returned nulla bona, and finally a creditor’s petition in bankruptcy. I owe nobody any money except the usual tradesmen’s monthly accounts and a sum for doctor's expenses, but these creditors will not prove in the estate. “I feel very much my position, hut I also feel that I am not morally liable to Hugh Delaney, and that for some unknown reason he has' sought to place ane in this position deliberately. I have no money except what I earn from week to week myself at piano teaching, and I need all to keep myself and my two children, as I get nothing from my husband.” Mr. Beechcy : I have' keen instructed to ask for particulars concerning Mrs. Blennerhassett’s interest under her deceased’s father’s will. INTRTt/RftT T\ T FATHFR’K, WTT.T,

J .IN i'JiiK-Ji'S-X J A J W J lil i. Mr. Weir replied that the creditor appeared to have the impression that Mrs; Blennerhassett had ail independent- source- of income, but in 1921 her interest under her father’s will had been vested in trustees for her own and her children’s benefit and could not be- alienated. A portion of the trust was the house in which she was- living, and the furniture belonged to her mother. Though the settlement had been made to protect her against the possibility of advancing further money to her husband, it had not been prepared particularly to meet the present contingency, as the liability had not been ineured for three yeans after the interest in the will had been vested in the trustees. Counsel, who had advised Mrs. Blenlierhassett at the time- of the settlement. had been 'surprised after her return from- the Waikato to find she had given her signature to a document, though, she was unable to inform him as to its nature or contents. Mi'- Beechey: Apparently she signed a promissory note.

The D.O.A. said it appeared he could do nothing in the matter, and after further .discussion between counsel the 'meeting was ad ion rued sine die.