COURT OF APPEAL

Hawke's Bay Tribune, Volume XXII, Issue 252, 7 October 1932, Page 3

COURT OF APPEAL

CLAIM BY NAPIER JEWELLER AN ALLEGED GUARANTEE Wellington, Oct. 6. The appeal of George Langley, a jeweller, of Napier, from the judgment of Mr Justice Ostler in dismissing an action brought by him against Delmonte and Patience, Ltd., of Wellington, and A. Delmonte, of Wellington, company manager, is being heard by the Court of Appeal. In his statement of claim Langley alleged that in October 1930 he sold his business to one Jenkins, the purchase price being guaranteed to the extent of £5OO by the respondent company. Jenkins made default in the payment of the purchase moneys and Langley asked for judgment against the company for the sum of £4BO, being the balance due under the alleged guarantee. As an alternative to the claim, judgment was sought against Delmonte, managing director of the respondent company, in the same amount as the damages, for having warranted that he had authority to give the alleged guarantee on behalf of the company, which he had not. The company pleaded that the giving of the guarantee was ultra vires of the company and also that the guarantee was not executed in accordance with the articles of association. Mr Justice Ostler upheld these contentions and dismissed the claim with costs. He also dismissed the claim against Delmonte, holding that the director of the company, acting honestly, was liable for damages for a breach of warranty of authority only if he made a misrepresentation of fact as to his powers and if the memorandum and articles of the company did not give notice of such misrepresentation. In this case tie considered the articles did give sucti notice. Langley is now appealing from that decision. The Court adjourned till to-morrow.