OPTION OVER TIMBER

New Zealand Times, Volume XXXII, Issue 7319, 24 December 1910, Page 11

OPTION OVER TIMBER

CUTTING RIGHTS AND ROYALTIES. A question affecting the interpretation of clauses of a timber license was. decided in the Supreme Court by the Chief Justice, Sir Robert Stout, -yesterday. The matter came before the court in th© form of an originating summons, plaintiff being William v Augustus Limbrick, land agent, and th© 'defendants Robert McOauly Henson and Edwin Green, sheep farmers, of Gisborne. The point on which the interpretation of the court was desired was whether the lessee had the option to cut th© prescribed minimum quantity of timber per month or to pay the agreed royalty on th© minimum quantity of timber per month, such payments of royalties to be afterwards deductable from the timber when cut. His Honor said the point he was requested to decide was whether default or breach of th© covenant had been ’committed by non-cutting of the timber. He was of opinion that it was never intended by. the purchaser that there should b© a right of re-entry if there was no cutting. He must read clause 6 of the lease as allowing it to continue so long as the royalty money was paid and that non-cutting did not constitute a breach. The lessees had the alternative of either cutting or paying Die royalties. Mr C. P. Skerrett, K. 0., with him Mr S. A. Atkinson, appeared for the plaintiff, and Mr IJ. D; Bell, IC.C., with him Mr H. Johnson, for the defendants. . j