STATUTORY LIMITATION

Hawera Star, Volume L, 6 February 1931, Page 8

STATUTORY LIMITATION

PERIOD APPLICABLE TO DOCUAIENT • ARGUMENT IN AIAGISTBATE'S COURT. A <• i\ ii action involving considerable I loyal argument was heard nj the Maw era Magistrate's Loin l jcAit J day he Jure Mi - . J. ii. Salmon, fcj.M. Ciiarlus Guodson, uf Him em, a, iarmer. claimed to 'recover from the : Ha if era Lawn Tennis Club the sum of £35 13$ Id., being' the amount of a loan made "y plaint-ill to tile 'defendant 'club, thget Iter with interest at the rate of £5 per centum jicr annum from 21-st January, IU2I, such moneys being secured by debentures. Iho form of the debentures, Nos. 11 aiul 12, was as follows: “On presentaj turn and surrender of this debenture to tilio treasurer of the Ha went- Lawn ••Tennis and Croquet Club, .Incorporated, |>Hawera, the bearer will be entitled to ('•receive on the 31st January, 1919). the I sum ot £lO for value received aiicl in-1 terest at the rate of £5 per centum per annum payable on 3l.it January of each year during the currency of this debenture or oil the maturity of same.’’ Mr. A. K .North appeared for plaintill and Air. P. O’Dea lor the defendant clu.l>. Authorities wore freely quoted and at the conclusion of legal argument Air. Nor lb said that the main issue Jbr, decision was whether this was ft simple contract debt or a speciality debt. The dub had given a bond anil was under obligation to pay a sum of money. In view of the fact that the document was sealed and bore the words ‘‘on 1 presentation and wur render” the document should he construed as a specialty debt on which the 20-year limitation period applied: For the defence counsel said that, the club repudiated liability on the grounds I hat the document was a proniisorv note and, as in the ease of all simple ! con tracts, the statutory limitation was six years. Plaintiff ‘ therefore wars I statute barred. 1

It was contended h v Afo. O'Doa that despite the fact that the document was titled, with the word “debentures’’ and sealed with the common seal of the elub. it did not. imply a specialty contra,t:u land It lie statutory limitation period of 20 years did not apply The magistrate’s decision was reserved.