INSURANCE CLAIM.

New Zealand Herald, Volume LXVII, Issue 20594, 19 June 1930, Page 14

INSURANCE CLAIM.

CITY COUNCIL ACTION.

DECISION FOR COMPANY

A very lengthy judgment was delivered by Mr. Justice Smith in the Supreme Court yesterday in the case, heard in February last, in which tho Auckland City Council (Mr. Stanton and Mr. Butler) sought a writ of mandamus commanding the Mercantile and General insurance Company, Limited (Mr. Cornish and Mr. Glaister) to pay certain insurance moneys, it was alleged that these moneys were due under a policy of £SOO on a house that had been destroyed by fire.

The lessee from tho City Council of the property on which the fire took place was Mary Brown, wife of Alexander Brown, marine engineer. Tho defendant contended that in tho insurance proposal Mrs. Brown stated tho property to bo her freehold property, whereas she was only tho lessee, and therefore the policy was null and void. It was stated in evidence that an agent of tho defendant company had filled in "f" indicating "freehold" on tho proposal form. 110 did so because of Mr. Brown's statement that tlip property wa3 "the wife's own" and that it was free, and. because ho thought there was no leasehold property in the street. His Honor found that the agent had no actual authority to represent that Brown's signaturo to the blank proposal form would bo sufficient for the purposes of the company. Tho true inference from the facts was not that the company must, bo bound by an ostensiblo authority to make such a representation, but that Brown authorised tho agent to complete the form on Mrs. Brown's behalf.

"In my opinion," said His Honor, "no sufficient ground has been established to prevent the defendant company from relying upon the breach of warranty. The motion must be dismissed, with costs to the defendant according to scale as on a claim for £447—being the amount claimed for reinstatement —and witnesses' expenses and disbursements to be fixed by the Registrar." He certified for £lO 10s for Ihe second day, and for £4 4s for second counsel for each day, and ajso for £3 3s for defendant's affidavit of di 3 covery.