Lawyer’s Claim For Damages

Manawatu Times, Volume 59, Issue 220, 20 September 1934, Page 6

Lawyer’s Claim For Damages

Proceedings Against Companies’ Commisson

NEGLIGENCE ALLEGED IN REPORT

Per Press Association. AUCKLAND, Last Night. Damages of £20.000 arc being claimed from the members of’ the Companies’ Commission—Air. J, 8. Marten, S.M., Professor Belshaw and Mr. F. E. Graham—by Martin Heyweod Hampson, barrister and. solicitor,' of Auckland. The papers relating to the claim were served in Wellington to-day ou Air. Barton, chairman of the Commission. The statement of claim says that plaintiff was a director of New Zealand Redwood Forests, Ltd., from September, 1929, until March, 1931. During that period he was a director and a shareholder of Edgoeumbo Forests, Ltd., a company holding 3800 shares out of a eapit 1 of 4000 shares in Kotahi Lands Ltd., which was the registered proprietor of some 22,000 acres at Alatahina, near To Teko. On January 17 defendants were appointed a Commission to inquire into and report upon tendencies and developments apparent in the Dominion relevant to company promotion methods and otherwise. Plaintiff claims that the Commission is not a judicial tribunal. The statement continues that, on August 28, defendants presented a report recommending, inter alia, that Edgceumbe Forests, Ltd., Kotahi Lands, Ltd., and the Ovcrana Land Company, Ltd., should be added to the schedule of the Companies (Spcifial Investigation) Act, 1934. It is stated that the Ovcrana Land Company, Ltd., is a private company, the shareholding being held solely by plaintiff and his wife, and that that concern was a shareholder in Edgecombe Forests. Ltd. In their report, under Ihc heading “ reconstruction scheme, ” defendants made representations concerning a reconstruction scheme placed before de-benture-holders in New Zealand Redwood Forests, Ltd., and approved by them in 1930, which involved the acquisition by the Redwood Company of certain land from the Edgecumbo Company.

It- is held by plaintiff that defendants were under a duty to him to tako care that such represenutions were true and fair, and lie alleges that, in exercise of their powers, defendants acted negligently. The statement of claim gives particulars of -four paragraphs in the Commission’s report nud in respect of two of them it. is alleged that defendants knowingly omitted fi their statement facts which wore required to render their statements completely true. It is alleged that the third paragraph misrepresents 1 lie facts an 1 that: the fourth is untrue.

Plaintiff contends that Die “negligence of defendants as aforesaid has caused great damage” to 1 s practice and reputation, and for that reason he claims damages and costs and such further relief as the Court may decide.