A HOTEL TRANSACTION.

New Zealand Herald, Volume XLIV, Issue 13501, 27 July 1907, Page 7

A HOTEL TRANSACTION.

Ix the Magistrate's Court yesterday, before Mr. C. C. Kettle, S.M., Donald McLeod, hotelkeeper, of Whaugarei, claimed £72 10s from Wenzl Scholium, commission agent, of Auckland. The defendant put in a counter-claim of £68 Bs. Mr. M. G. 1 McGregor appeared for plaimtiff, and Mr. J. R. Reed for Scholium., Mr. Reed said that the Settlers' Hotel, at Whangarei, was put into Scholium's hands, by McLeod, for sale, and Scholium secured a purchaser for £1836 Is Bd. It was also the custom for the agent to act as valuer for the vendor, and for this service Scholium claimed £20, and also £48 Bs, commission on the total value, £1836. Wenzl Scholium, the counter-claimant, gave evidence, also William R. Mowbary, hotel broker, and Arthur Bach, hotelkeeper. . ; -McLeod ;said thafcvhe had :>placed the hotel in Scholium's hands for sale, but he subsequently w'aote withdrawing it, and putting it into other hands.. Scholium sent a Mr. E. H. White up to see thehotel, and White ultimately purchased the house and paid Scholium a deposit of £100. Scholium then claimed that he was entitled to act as witness' valuer. Witness claimed -this £100 deposit, less £27 10s commission on the sale of the goodwill. Edward Whitehead,' hotel broker, gave evidence. .;'.';..., Mr. McGregor submitted that Scholium was entitled to commission only on the sale of the goodwill, which was £1000, and not on the gross amount of goodwill, stock, and furniture, which was £1856, and that plaintiff had not conclusively proved that it was the custom for tho agents to be appointed as valuers. Mr. Reed said sufficient evidence had not been brought to show Scholium was entitled to the £20 claimed in respect of the valuation, and would probably have to be satisfied with five per centum commission on the first £100 and 2£ per cent, on the balance. His Worship, in giving judgment, said that he considered the question as to Mr. Scholium's appointment was this: "Ho was asked by McLeod to find a purchaser who would give £1100 for the hotel, and stock and furniture to bo taken at valuation. The price was subsequently reduced to £1000, and . Scholium—through his sole exertion—found a purchaser." He (Mr. Kettle) was of opinion that Mr. Reed had acted rightly in withdrawing the claim of £20 in respect to valuation. The evidence showed that unless there was an agreement, the valuer was appointed bv the vendor, although the agent naturally liked to be appointed. Scholium, was ontitled to commission not only on the £1000 goodwill, but also on the valuation of stock, furniture, etc., making a total of £1830. This commission His Worship fixed at the rate of five per centum on the first £100 .and 2J per centum on (lie balance, making £48 Bs. The remainder of the £100 deposit paid by the purchaser to Scholium, and held by him, must bo paid over to McLeod. Each party had erred, McLeod in the amount of commission and Scholium in the claim of valuation. He considered that the justice of the case would be met by ordering each party to pay their own costs. Judgment was en. tered accordingly, McLeod taking £51 12s of the £100 deposit, and Scholium £48 Bs.