NO OBLIGATION.
TO SUPPLY MILK TO COMPANY’S FACTORY. CLAIM FOR DAMAGES FAILS. Reserved judgment has been given by Mr. J. L. Stout, S.M., in the case wherein the Makowhai Co-operative Dairy Co. Ltd., proceeded against Stanley Quinlan, farmer, of Makowhai claiming £39 9/7 damages for an alleged breach by the the defendant of an obligation imposed by the articles of the Association of the plaintiff company to supply milk from his farm to the company’s factory. In giving judgment, Mr. Stout said that the article under review imposed an obligation, but no penalty was imposed for its breach, except insofar as other articles gave the right to call up the balance of share capital in respect to such shares. If a shareholder should cease supplying for a. period of six months, and if he ceased supplying and -supplied elsewhere within a radius of five miles from the factory, a further right, to forfeit his shares accrued. Neither of these rights, presuming they could be enforced, had so far been exercised in this case. The validation contained in the Act was limited to a validation of the article, and of any penalty imposed for its breach for a period of six months from the passing of the Act. The Act, however, gave no right to any action for damages apart from any such penalty. An action for damages, then, could only arise if the parties had- entered into a collateral contract, incorporating the provisions of the article. In this case, there, was no evidence that defendant did more than make an application for shares, which were duly allotted him. These shares, it was true, carried with them the obligation imposed' by article to supply milk to the factory, but the appliation for shares was insufficient evidence of the entering into of a contract, express of implied, to supply milk to the company. As the plaintiff company had failed to prove any right to the damages claimed, it must be non-suited, with costs according, to scale.
At the hearing of the case on Tuesday last, Mr. J. Grant appeared for the plaintiff company and Mr. H. R. Cooper for defendant.
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https://paperspast.natlib.govt.nz/newspapers/MT19250505.2.50.9
Bibliographic details
Manawatu Times, Volume XLIX, Issue 2672, 5 May 1925, Page 7
Word Count
358NO OBLIGATION. Manawatu Times, Volume XLIX, Issue 2672, 5 May 1925, Page 7
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