THE GRESSON DEFALCATIONS.

New Zealand Herald, Volume XXIX, Issue 8883, 20 May 1892, Page 2 (Supplement)

THE GRESSON DEFALCATIONS.

At the Court of Appeal, at Wellington on Thursday, the 28th April, before the Chief Justice and Judges Williams and Conolly, the case of Charles McUrath v. John Freer was heard. This is an appeal from the decision of Justice Denniston, delivered under the following circumstances —The appellant purchased from the respondent certain property in Canterbury, the late John B. Gresson, solicitor, acting for both parties. Gresson received from appellant £2550, raised by mortgage from Lord Lyttleton, and agreed to give him a title, subject to £450, balanco of purchase money, which was to remain on second mortgage. Prior to the sale, the vendor held the property subject to a sua of £1300, due on mortgage to Thomas Walmsley, of Halifax, England, with interest, and £800 due on mortgage to P. B. Gresson and A. E. G. Rhodes with interest. Gresson represented to the vendor that he had liquidated these mortgages, and to the purchaser that the title was clear with the exception of new incumbrances of £2550 and £450, balance o: purchase money. Instead of doing this, he forwarded to Thomas Walmsley the sum of £500 only, representing that this was all the mortgagee could pay off, and paid the remainder into his own private account, accounting to the vendor for the difference between these mortgages and the purchase money less costs and disbursements. Freer left for Tasmania, believing the matter settled, and Gresson was subsequently killed on tho Christchurch railway. The above facts then transpired. The appellant, on discovering that his land was still subject to mortgages to Thomas Walmsley of £1039, and A. E. G. Rhodes of £800, took proceedings against the vendor to recover these amounts. Justice Denniston, in giving judgment, said it was a case of that difficult and painful character in which the Court had to decide which of two absolutely innocent parties would have to suffer for their natural but misplaced confidence. He gave judgment for the defendant with costs. I' is from this judgment that the appellant now appeals. Messrs. H. D. Bel! and Spackman appeared for the appellant, and Mr. Stringer for the respondent. Their Honors reserved judgment.