GOLDMINE SHARES.

New Zealand Herald, Volume LXI, Issue 18896, 19 December 1924, Page 13

GOLDMINE SHARES.

PASTRYCOOK'S PURCHASE.

JUDGMENT SET ASIDE.

A motion to sot aside a judgment by default against the purchaser of 27,000 shares of 5s each in the Horseshoe Mines, Ltd., was heard by Mr. Justice Reed in the Supreme Court yesterday. Mr. Dickson appeared for the mining company, the plaintiffs in the original action, and Mr. A. H. Johnstone for the original defendant, Thomas Rowell, p, pastry-cook, of Wellington.

Mr. Johnstone said representations were made by a director of the plaintiff company to the defendant, who was there* by induced to purchase the shares. Defendant, in his affidavit, alleged that those representations were false. Jn another affidavit, by defendant's first counsel, it was set forth that that counsel came to Auckland to see the company's directors, and that a meeting was called at which counsel attended. Various particulars were then given to him, and he inspected a copy of the company's balance-sheet, but was refused permission to take it away. Ho returned to Wellington with an idea of making an offer of settlement.

Mr. Dickson read an affidavit by Charles Arthur Stubbs, the secretary of plaintiff company, in which deponeut stated that he had written to defendant on numerous occasions and had also sent several telegrams, requesting payment, but had received no answer. Deponentthen instructed the plaintiff company's solicitors to write to defendant and request payment. That was done, but no answer was received. Deponent dealt with the several futilo applications to defendant, and stated that finally defendant's agent in Wellington had telegraphed, offering to meet the liability by giving three promissory notes in favour of the company. When application was made to defendant for the notes ho ignored it, and the writ was served on him, after his first counsel had been notified of the intended service. Defendant still ignored the company, and sometime later judgment in favour of the plaintiff company was entered by default in Auckland. Subsequently defendant filed a motion to set the judgment aside. His Honor held that defendant had been induced to purchase the shares by representations made to him, but considering his financial position, ho was very foolish to enter into an agreement to purchase over £6000 worth of shares. As defendant had acted so foolishly in one thing, His Honor could well understand his stupid attitude in taking no notico of the several applications made for payment. In these cases the Court was always inclined to lean toward the setting aside of a judgment where there was a possibility of a defence to the previous t action, but as the defendant had put the plaintiff company to considerable expense he would have to pay for it. His Honor made an order setting aside the judgment, provided that defendant paid aLI plaint,iif company's costs to date, gave security for £100 in favour of plaintiffs for the costs of a rehearing, and filed a statement of defence, by January 20 next.