FIRM SUES MANAGER

New Zealand Herald, Volume LXIX, Issue 21345, 21 November 1932, Page 11

FIRM SUES MANAGER

BREACH OP INSTRUCTIONS

CREDIT WRONGFULLY GIVEN

JUDGMENT FOR PLAINTIFFS

A claim for the recovery of £152 3s lid made by Skelton, Frostick and Company (in liquidation), against its former Auckland manager, A. L. Jaffrey, has been upheld in tho Magistrate's Court by Mr. W. R. McKean, S.M.

It was alleged by plaintiff company that the amount of the claim had been lost to tho company through defendant committing a, breach of instructions by supplying goods to one, Webb, or the City Boot Stores, Limited. Alternatively, recovery of the money was sought on the ground that defendant negligently carried out his duties and gave credit to the City Boot Stores, Limited, knowing that the company was unfinancial and that credit should not be given.

Plaintiff company was represented by Mr. Hubble, and defendant by Mr. Ziman. Instructions by Company

In reviewing tho case, the magistrate said plaintiff company had had dealings with the City Boot Stores, whose financial position was, during the year 1931, unsatisfactory, and plaintiff companv would not supply goods on credit. In a letter to defendant on August 19, 1931, plaintiff company said that "not anything less than a certified cheque before delivery of goods would be acceptable to us." Defendant himself on August 26 wrote saying " we coyld not consider any orders received, from them."

following month plaintiff company went into liquidation and defendant subsequently established an agency under the name of " W. D. Redmond." This fact, however, was not known to the liquidators, and defendant continued in charge of the Auckland branch of plaintiff firm until January, 1932. On December 4, 1931, defendant supplied the City Boot 'Stores with goods to the value of £196.

The goods were selected by Webb and were then listed on a pro forma invoice, not to Webb or City Boot Stores, but to W. D. Redmond" at liquidation prices. Defendant had quoted to Webb higher prices than liquidation prices. He instructed an employee to charge the goods through "Redmond's" packing slip book. Rates of Uhe Charges

At a subsequent date they were chargecj to Webb. They were charged at the liquidation price to " Redmond" and at the advanced prices to Webb. Defendant had told the employee that Webb was to pay for the goods in a short time and then it was to be put through as a cash sale.

" Defendant says that the entry in the 'Redmond' book was an error on the part of an employee," said the magistrate. "I am satisfied it was not an error, but was made because of defendant's instructions.

Mr. McKean said the position of Webb did not justify the giving of credit, and defendant, who was aware of this fact, acted improperly in giving credit. Plaintiff company was entitled to recover because of the breach by defendant of express instructions. The company would have been entitled to recover in" the absence of those instructions and also on the ground that the sale as put through was to " Redmond," and from that moment a liability of defendant. Judgment would be for the full amount claimed.