Layman’s Document Leads to Litigation

Manawatu Times, Volume 63, Issue 44, 22 February 1938, Page 10

Layman’s Document Leads to Litigation

MISTAKE lIT WORDING CAUSES TROUBLE Per Press Association. CHRISTCHURCH, Feb. 19. Drawn up by a layman and failing in its objective, a mortgage clearance document was the main cause of an interesting Supreme Court action this morning, when W. E. Clouston and Co., of Blenheim, asked that the rejection ol proof of debt submitted by them to the bankrupt estate of William Goss, of Christchurch, should be cancelled and that the debt should stand against the estate. When the bankruptcy occurred in 1931, the applicant company submitted proof of debt :;or £l,lll, that being the full amount ot debt (£2,196) less the value of a security over which the applicant held a mortgage. The document which caused the Official Assignee subsequently to reject proof of debt was drawn up by the applicant company when it was desired to sell the land. It was intended to clear the land only and not to affect the obligation of the bankrupt estate. In effect, it cleared and land the obligation as well. To-day, Mr Justice Northcroft upheld the contention that justice would not be served if the assignee were compelled to act on what was admitted to be a sheer mistake in the wording of the document, and ruled that proof of deb; should be admitted.