BUTTERMILK CONTRACT

New Zealand Herald, Volume LXXV, Issue 23052, 1 June 1938, Page 16

BUTTERMILK CONTRACT

CLAIM AGAINST COMPANY . COURT UPHOLDS REJECTION In a judgment delivered in the Supreme Court yesterday Mr. Justice .Callari decided that a proof of debt 'for £750 submitted by Lawrie Ellesmere Carter was rightly rejected by the liquidator •of the Arawa Dairy Company, Whakatane, Mr. John Murray. Acting; for Carter, Mr. C. C. Chalmers brought a summons to reverse the liquidator's rejection of proof, but this summons was dismissed by His Honor, who,reserved the question of costs. Mr. Leary appeared for the liquidator. The claim was based on a contract that Carter entered into with the dairy company in October, 1934, for the supply of buttermilk and the lease of property until June 30, 1938. As a result of a zoning decision of tho Executive Commission of Agriculture the Arawa Company found it necessary to sell its business, and in February, 1937, it notified Carter that it was doing so and that his Contract would lapse as from July 31, 1937. Ho claimed damages for ths loss of contract. • His Honor .said he could not find in the contract any express promise by the company that it would continue its business or the.making of buttermilk, and applicant had to satisfy the Court that the company was bound to continue although it had not expressly promised to do so. In finding against the applicant His Honor said that, the company appeared to'' have given Mr. Carter the fullest length of notice possible in the circumstances, 'and to have made endeavours to arrange for him an alternative source of supply of buttermilk.