A LAND SYNDICATE

New Zealand Times, Volume XXXIII, Issue 7979, 9 December 1911, Page 1

A LAND SYNDICATE

MORTGAGE OF £4OOO MEMBERS JOINTLY LIABLE. There was an important principle involved in tho case of Macarthy v. Bennio and others, reserved decision in which was delivered by his Honor the Chief Justice (Sir Robert Stout) yesterday. The action was a claim for «£10Q() a'nd interest on a mortgage, tho parties being Thomas George Macarthy, of Welling, brewer (palintiff), and James Bennie (architect); A. do 33. Brandon, T. W. Hislop, F. O. Louglman, J. AY. Thompson, E. C. Peeps, C. M. Montefiore, A. 11. 3i'ullford, and the trustees of tlie Into C. AY. Benbow (defendants). Mr G. L. Peacock©, with him Mr TToggard, appeared for the Dlaintiff; tho ilon. T. W. Hislop, udth him Mr T. C. A. Hislop for Bennie, Louglman, and Fullford; Mr F. G. Bolton for the Eenlow trustees; and Air T. Young for Montcfiore.

Certain land at Island Bay had been, oold by one, Francis Loudon, to a syndicate of ten persons, including himself and the defendants. Tho syndicate paid cX‘2ob!> in cash, and gave to Mr Loudon a mortgage over tho laud for .£4OOO, tho balance of the purchase money. Lou-' don assigned this mortgage to T. G. Macarthy, who now sued defendants for the .£4OOO.

It was urged for the defence: (1) That the defendants were liable only for .£-100 each; (2) that tho mortgage was invalid because it was made between Loudon, as ono of tho mortgagors, and himself as mortgagee. It was further alleged that several members of tho cyndicate were bankrupt or insolvent, and that the plaintiff, as Loudon's assignee, had to bear his share of tho contributions for which these members were liable. < Tho learned judge dealt exhaustively with tho legal aspect of the question, and decided that defendants were jointIv and severally liable for tho „£4(K>O. There was nothing in the document to show how the contributions should be made. Of course the mortgagees might take action against ono of their number. Judgment must be given for plaintiff for the amount claimed, with-costs. •M> Hislop, senr., asked if his Honor would grant’a stay of proceedings to allow of an appeal being made. His 'Honor; Yes, I will give you all facilities, X think -it is a .vory proper rust , for an appeal. •. ■ /. a order - was made for: a stov of proceedings fbr ton days.