H.B. ADJUSTMENT COURT

Hawke's Bay Tribune, Volume XXI, Issue 305, 9 December 1931, Page 3

H.B. ADJUSTMENT COURT

SITTING IN NAPIER. The sitting of the Hawke’s Bay Adjustment Court was continued at Napier yesterday afternoon. On the Bench were His Honour the Chief Justice, Sir Michael Myers, Mr H. D. Vickery, and Mr L. O. H. Tripp. MORTGAGE REDUCED. The deterioration of a farmland near the Ngaruroro river formed the basis of an application in which it was alleged that the level of the land being lowered by one foot made it more subject to flood, while extensive cracking of the surface made much of the pi operty less valuable. As a result the Court was requested to release the mortgage on the property. Counsel stated that the dwelling, which was erected on the only spot on the property which was absolutely free from flood, had now to be re-erected on a new site that was protected by a stopback. A land valuer in evidence submitted that the subsidence in making the property more subject to flood would affect the prospects of sale at any time. The original cost of the property was about £7OOO. He estimated the economic loss at £2lOO and the earthquake loss at £2,300. The guarantor, in evidence, saw no reason why the mortgagee should not bear part of the loss, which was all that was being asked for. His Honour: No, your solicitor has asked to be released of the mortgage. The witness: Well, the solicitor prepared it, We asked that the mortgagee should bear only part of the loss The applicant in evidence explained that the earthquake caused lines of cracks, some of which were four feet wide and ten feet deep. A portion of them had been partly filled in by flood. The original site on which his house was built was absolutely free from flood, but the new site, although protected by a stop bank, did not afford the same protection from flood, as there was doubt with the general subsidence as to it being effective at all. Evidence was given by a previous employee on the property who was of the opinion that it had not suffered to any extent by the earthquake. The cracks were all in the poorest portion and would soon be made good by silt from the river. The small area not outside the stop bank was always a poor area of land, being under water for two or three months in the winter time. Cross examined witness admitted that owing to the depression and the level of the land it would be more subject to flood than previously. He was of the opinion that no one could tell what the effect of flooding would be until there had been a big flood. A good covering of silt might be of benefit to the property. Counsel, in reply to His Honour, submitted that in this case the mortgage represented unpaid purchase money and was not in the same position as that advanced by trustees. Counsel for the mortgagee submitted that there had been no evidence to justify any reduction being made. There had been no suggestion that the guarantor was not in a position to pay. The earthquake damage to the house had been dealt with by the Rehabilitation Committee. The Court was satisfied that the property had sustained some carth-

quake damage and felt that justice would be met by the reduction of the mortgage by £3OO. PUBLICAN’S CASE DISMISSED An application was made by a hotpi licensee for a reduction of £lO in the weekly rent of £25 during the period in which the hotel was out of repair. The applicant in evidence stated that the large private bar was unusable un til a week ago, with the result that during the period the takings were reduced to half. He had spent £72 in repairs on his own account. The landlord attributed the trade of the hotel going elsewhere, to the house being sadly mismanaged. He knew of there being about half a dozen fights, while black eyes were frequent. After the quake, the licensee cleared out for several days, during which time the public came in and drank all the stock He was prepared to accept a surrendci of the lease immediately, as he had two prospective purchasers who were will ing to pay the rental of £25 per week He had spent about £BOO in repairs to the hotel since the earthquake and (ho whole of it would be completed for occupation this week The Court held that no case had been made in which an order should be made.