LIEN CLAIM DISPUTED.

New Zealand Herald, Volume LXI, Issue 18895, 18 December 1924, Page 14

LIEN CLAIM DISPUTED.

BUILDER'S ASSIGNED ESTATE

OPERATIONS AT MT. ALBERT.

A claim under tlio Contractors and Workmen's Lien Act was heard by Mr. Justice Reed in the Supreme Court yesterday.

Ellis and Burnand, Ltd., Hamilton, sawmillers, claimed judgment for a lien for £619 5s lid against the trustees in the assigned estate of William Ferguson, Auckland, builder. Mr. Towlc, instructed by Mr. Hume, appealed for plaintiffs, and Mr. Inder for defendants. An agreed statement of facts was put in.

Mr. Towle said the action was in the nature of a test case, as a number of other lien claimants were in the same position. The circumstances were that on December 3, 1923, Ferguson agreed to purchase a property at Mount Albert for £9080 from three vendors, giving a cheque for £50 as deposit. On the same dato he entered into possession and commenced building operations. It was in respect of those operations that tlio plaintiffs and other creditors claimed a lien. Ferguson's cheque for the deposit was subsequently dishonoured and the vendors purported to givo a notice of recission. Notwithstanding this Ferguson remained in possession and continued his building operations up to January .18, 1924, when lie assigned his estate to defendants for the benefit, of his creditors.

The claimants contended they were en-tit-led to a lien, having given the requisite notice under the Act on January 19, 1924. Defendants, however, took up the attitude that tlio agreement had been rescinded and that, therefore, no action for a lien would lie.

Mr. Inder contended the cheque for the deposit having been dishonoured the agreement was a nullity from its commencement, that the vendors were never bound, and accordingly no proceedings for a iifri would lie.

.ITi'< Honor reserved his decision