CASE OF A SOLICITOR

Nelson Evening Mail, Volume L, Issue 175, 26 October 1917, Page 3

CASE OF A SOLICITOR

FURTHER PROCEEDINGS. (Diiiid Fkiu Asiooiaziom.J WELLINGTON 1 , Oct. 25. The Court of Appeal continued the hearing of an application to stiike off the rolls William Gascoyne Beard, solicitor, of Masterton, for alleged professional misconduct in connection with dealings with Rangi Kerehoma, a Maori. Mr "Von Haast appeared for the Law Society, and Mr Gray K..C, and Mr •Myers for Beard. Mr Von Haast, in opening for the Law Society, said that the case showed that when Beard and Channells were on the eve of completing their arrangements for acquiring Mangahuia, Kerehoma was advised to make application to be made a European, and thus all restrictions on the alienation of his land were removed. And although Beard and Chennells knew that Kerehoma's lessees, Strang and Hodge, desired a renewal of Mangahuia, Beard and Chennells purchased it from Kerehoma for £48,000 without making any attempt to invite competition or see if a higher price could be obtained in the open market. They received £6OOO cash from sub-purchasers of part of Mangahuia, but persuaded Kerehoma to leave £48,000 (except £qqq i s 6d) on mortgage at 5 per cent., £IO,OOO for five years and the b'alance for 20 years, most of the mortgagors being without assets. And although Beard and Channells themselves were the real purchasers (the transferees being merely volunteers through them), Beard and Chennells did not guarntee payment themselves or make the whole of the purchase money. Knowing that Kerehoma required to raise about £12,000 to discharge his liabilities, they allowed him to sub-mortgage some of the purchasers' mortgages on £BOO for five years at 6 per cent., and they persuaded Kerehoma to allow the mortgages from purchasers to be so arranged that in the case of the following mortgages from purchasers to be so arranged that in the case of the following mortgages the amount received by mortgage was substantially higher than the amount received by mortgage was substantially higher than the amount of the purchase money for the land, viz. iN.M. Beard price paid £3736, principal secured £3946; 'G. G. Beard, £6999 and £7392; Elizabeth Chennells, £7204 and £7609 ; E. J. Chennells, £7291 and £7699. Mr Von Haast then dwelt on the fact that when Kerehoma sued Beard and Chennells, and it was alleged that they, knowing Kerehoma was unfit to manage his own affairs, advised him and procured transfers to members of their families by undue influence, in breach of their duty, they settled the action by agreeing to pay £15,000, Beard and Chennells had themselves to become personally liable in a bond for £49,000 and had to agree to pay interest at 5£ per cent., and agree to pay such sums as would reduce the amount of interest on the sub-mortgages from Kerehoma from 6to 5£ per cent. Mr Von Haast had not concluded when the Court rose.

It is expected the case will last three days. ,