£2000 CLAIM

New Zealand Herald, Volume 79, Issue 24211, 28 February 1942, Page 9

£2OOO CLAIM

AN ALLEGED CONTRACT MANUFACTURE OF PAPER SUPREME COURT ACTION Alleging a breach of a verbal contract for the supply of grease-proof paper made frpm newsprint, the Zealandia Finance and Trading Company, Limited, and Lawrence Pickles, director of the company (Mr. Beckerleg), brought an action for £2OOO damages against B. J. Ball (N.Z.), Limited, paper dealers, and Selwyn John Robinson, managing-director (Mr. North and Mr. Bartleet), before Mr. Justice Fair and a jury yesterday. The plaintiffs claimed that the defendants were to supply them with newsprint at £2B a ton, the plaintiffs were to treat it according to an agreed formula and it was to be bought back, by the defendants as grease-proof paper at £54 a ton. The defence denied that any such contract had been entered into, and further said that if it had been it was not enforceable. Plaintiff's Case Mr. Beckerleg said the plaintiffs undertook to treat newsprint obtained from the defendants and make it greaseproof according to a formula and sample approved by the defendants and return it to the defendants. A witness, Joseph Spencer Fawcett, would say that lie met Robinson in December, 1940, and interested him in the local manufacture of grease-proof paper. Pickles responded to an advertisement for a man to invest capital in this undertaking. Samples were made according to a formula of Fawcett's and were approved by Robinson. Counsel said the price agreed on for the treated paper was £54 a ton, but at a late stage Robinson said no such figure had ever been agreed upon and offered a price of about £36 a ton. Entirely relying on Robinson, the plaintiffs had invested approximately £llOO in premises and plant. Profits On Frocks Lawrence Pickles said lie had expressed to Robinson his willingness to invest £IOOO in an industry of this kind. It was agreed between them that the price for the finished processed paper would be £54 a ton. Robinson recently offered him £4l 10s a ton. In cross-examination witness said the Zealandia Finance Company was a licensed money-lending concern. Another of witness' concerns was the Astor Frock Company, which sold frocks on the hire-purchase system. The profit on them worked out at 80 per cent, although that required qualification as there were other charges to be met. If Robinson honoured his word and Fawcett's estimates were correct, then for an expenditure of £6OO witness was going to make £SOOO a year. The hearing of the claim will be continued on Monday.