THE BEARD CASE.

Manawatu Standard, Volume XLII, Issue 10117, 26 October 1917, Page 5

THE BEARD CASE.

COUNSEL'S OPENING ADDRESS. (Per Press Association.) WELLINGTON, Oct. 25. Mr Von Haast, in opening for the Law Society in the Beard case before the Appeal Court, made comment of an old and leading practitioner to his client and said that this case showed that when Beard and Chennells were on the eve of completing thenarrangements for acquiring Mangahuia. Kerehoma was advised to make application to be made European, and thus all restrictions on the alienation of his land were removed. Although Beard and Cliennells knew Kcrehoma's lessees, Strang and 1 lodge, desired the renewal of the lease of Mangahuia, Board and Cliennells purchased the land from Kerehoma for £48,000 without making any attempt to invite competition, or see if a higher price could bo obtained in the open market. They received £6OOO cash from sub-purchasers of part of Mangahuia. but persuaded Kerehoma to leave the £48,000 (except £968 Is 6d) on mortgage at 5 per cent, £IO,OOO for five vears, and the balance for 20 years, most of the mortgagors being without, assets, and, although Beard and Cliennells themselves were the real purchasers (the transferees being merely volunteers through them), Beard and Cliennells did not guarantee payment themselves, or make the whole land liable for the whole of the purchase money. Knowing Kerehoma required to raise about £12.000 to discharge his liabilities, they allowed him to sub-mortgage some of the purchasers' mortgages for £B,OOO for 5 years at 6 per cent., and thoy persuaded Kerehoma to allow mortgages from purchasers to be so arranged that in the case of the following mortgage.-, the amount received by the mortgage was substantially higher than tho amount of the purchase money for the land, viz • N M. Beard, price paid £3736, principal secured £3946; G. G. Beard, £6999, £7392; Elizabeth Chei lis, £7204, £7609; K J. Chennells, £7291, £7699. Mr von Haast then dwell on the fact that ivhen Kerehoma sued Beard and Cliennells, and it- was alleged that they, knowing Kerehoma was unfit to manage his own affairs, advised him ami procured transfers to membe;- of I heir families by undue influence m a breach of their duty, they settled the action bv agreeing to pay £15,000. Beard and Chennells had themselves to becomo personally liable in a bond for £49,000. They had to agree lo pay interest at 5i per cent instead of 5 per cent, and to make up the interest on Perry's mortgage to 5j per cent, and agree to pay such sums as would reduce the amount of interest on the submortgages from Kerehoma for 6 per cent. to 5i ocr cent. Mr von Haast had not concluded when (he Court rose. It is expected that the case will last three days.