SALE OF TEAROOMS.

New Zealand Herald, Volume LXIII, Issue 19471, 29 October 1926, Page 15

SALE OF TEAROOMS.

ALLEGATION OF FRAUD. CLAIM FOR DAMAGES FAILS. CASE NOT ESTABLISHED. [BY TELEGRAPH. —OWN CORRESPONDENT.] CHRISTCHURCH. Thursday. In the Supreme Court to-day before Mr. Justice St ringer, ( Harry Ostler claimed £l2lß damages from Mrs. Elizabeth Davies on the grounds that he had been induced to buy from defendant by a fraudulent statement the Oriental Tea Rooms in Manchester Street. Plaintiff said he had lost £2300 capital in the business and had to sell his stock in-trade by public auction. His loss on the actual funning of the business Was £I3OO in the 16 months he was in it. He was now carrying on a pastrycook's business in Wellington. The judge said the case stood on the statement that it was represented that a profit was being made. That was a charge, of deliberate fraud and had to be established clearly. His Honor always regarded with the gravest suspicion allegations of fraud which were not made until a considerable time afterwards. It seemed to him that plaintiff had overestimated the profits to be made on the business and, having found that they were not up to his expectations, he had made the allegations of fraud. The case had not been established and judgment would bo for defendant, with costs.