THE RELATIONS OF BREWER AND PUBLICAN.

New Zealand Herald, Volume XXIX, Issue 9027, 4 November 1892, Page 5

THE RELATIONS OF BREWER AND PUBLICAN.

[BY TELEGRAPH.—PRESS ASSOCIATION.] Wellington, Thursday. In the Appeal Court, before Mr. Justice Williams, Mr. Justice Denniston, and Mr. Justice Conolly, the case of Staples v. McKay is being argued. The appeal is one from a judgment of Mr. Justice Richmond Tho respondent, McKay, purchased the lease of a hotel from the appellant, Staples, who is a brewer, giving him bills for the purchase money, and a mortgage of tho lease (under the Land Transfer Act) to secure the amount of the bills. The mortgage contained a covenant by McKay to purchase beer from Staples exclusively during the continuance of the term of years granted by the lease. The principal and interest having been wholly paid some years before the expiry of the lease, McKay demanded the endorsing on the memorandum of mortgage of a receipt in the form in ordinary use expressed to be "in full satisfaction and discharge of the within obligation." Staples refusod on tho ground that a receipt in that form would discharge the covenant to deal exclusively with him, but was willing to sign a receipt leaving it open whether the covenant to deal was still in force. McKay brought an action to compel Staples to execute tho receipt in the form he asked for ; and Mr. Justice Richmond gave judgment for McKay, on the ground that the covenant for exclusive dealing, although expressed to apply to tho whole term of the lease, being contained in the mortgage, was at an end on payment of the mortgage debt. Staples now appeals from this decision. Mr. Skorritt is appearing for tho appellant, and Mr. G. Hutchison for the respondent.