DAIRYING DECISION.

Manawatu Standard, Volume XLIV, Issue 744, 28 June 1923, Page 5

DAIRYING DECISION.

IMPORTANT JUDGMENT.

(Per Press Association.) AUCKLAND, Juno 27. A judgment of groat importance to the dairying industry was given by the Chief Justice at the Supreme Court to-day on the appeal, Stephen Shalfoon v. the Cheddar Valley Co-opflvaUvo Dairy Cot, being against a decision of the Magistrate’s Court at Opotiki. The suit was brought by the appellant for £ls 12s 6d for butter-fat. The claim was not denied, but the respondent brought a counter-claim for £53, being at the rate of £1 per cow in pursuance of article 17 of the articles of association of (ho company, which provided that all shareholders should send all their butter-fat to Iho company’s factory or Ire penalised by a fine of £1 per cow per annum. His Honour said Unit the main contention was as to the validity of article 17, and various grounds had been submitted, and at least two other articles of the company wore involved. First it was claimed that article 17 was unenforceable on the ground that it was in restraint of trade. Secondly it was staled that the claim for £1 per cow was one for a penalty and not for liquidated damages. There were other objections cm the score of ambiguity. _ Having reviewed the English und Now ZgcluUkl decisions, His Honour said be was of opinion that the appeal should be dismissed with costs £3 Bs. Leave to appeal to the hull Court was granted.