SOLDIERS' MORTGAGES

New Zealand Times, Volume XLIX, Issue 11223, 31 May 1922, Page 5

SOLDIERS' MORTGAGES

JUDICIAL DECISION EFFECT SAID TO PROHIBIT TRAFFICKING. A CHRISTCHURCH CASE. PEB PRESS ASSOCIATION. CHRISTCHURCH, May 30. A judgment of the Supreme Court, delivered by Mr Justice Adams, has the effect of prohibiting civilians from trafficking in soldiers’ mortgages, and declares such action illegal. The judgment will affect- soldiers’ mortgages throughout New Zealand. The case waA one lin which John Thomas Hazeldine sued Edith Amy Milligan (a soldiers' widow, on whose property was a soldiers’ mortgage) and Herbert Edwin Lindsay (land agent, Christchurch), for rescission of contract, money paid on account of purchase and damages. Plaintiff agreed to buy the house from defendant through her agent, Lindsay, but on leariiing it was subject to a soldier's mortgage, objected to completing the agreement. Lindsay assured him that the mortgage was not subject to the regulations of the Discharged Soldiers’ Settlement Act, and on this representation the agreeement was completed. His Honour could not resist the conclusion that the jilaintiff was induced, by fraudulent concealment and misrepresentation, to first make an offer in writing for defendant’s property, and later to sign a formal contract materially different in effect. Mrs Milligan was personally entirely innocent of any intention to mislead the plaintiff, but she could not be allowed to benefit by misrepresentation made by Lindsay in the course of the transaction. Plaintiff was entitled to an order rescinding both contracts and to the relief usually granted in such cases, but not to damages, and, in addition, to such sum as would effect complete restitution. Questions as to the liability of the defendant, Lindsay, were reserved for further consideration, with liberty to plaintiff or Lindsay to apply for such judgment as he might consider himself entitled to.