A BUILDER’S FLIGHT

New Zealand Times, Volume LII, Issue 12198, 24 July 1925, Page 6

A BUILDER’S FLIGHT

HEAVY LEGAL EXPENSES “LOVE OF fIUCH LITTGATIOr PETITION IN BANKRUPTCY John Baird, a Wellington builder, met his creditors at a meeting presided over by the Official Assignee in bankruptcy (Mr 8. Tansley) yesterday. Baird was represented by Mr H: H. Cornish. The amount owing to unsecured creditors was shown at £1270 3s 3d, the principal amounts being: Gray Young (architect), £1213 Us 6d; Electrical Engineering and Supply Co., Ltd., £ll 10s Id; Carrara Ceiling Co., Ltd., £l7 18s Id; G. J. Feil (accountant), £27 3s 6d. A sum of £37 17s 6d was also shown as a loss on a contract, while assets were set down as nil. In a sworn statement, bankrupt said he had been contracting in Wellington since about 1918. and was a financial success until he entered into agreement with Mu Gray Young to erect a house. Bankrupt’s foreman, who put in the foundations, discovered that the section was swampy and dangerous to erect a plastered house on as. first Agreed upon. The foreman, before finally, putting in the concrete for the foundations, got Mr Young to test the bottom, and Mr Young was convinced that it was quite satisfactory. As the job progressed, and the foreman had the framework completed, he could see that the load that the foundations had to carry was going to cause the foundations to sms, and cause ruination to the construction of the residence (which eventuated before he left the building). “Mr Young go* into touch with me,” stated bankrupt, “and asked that concrete piers be put in at intervals in the most critical places. Before leaving the site the mutual agreement was talked over, and the book signed. Mr Young did not keep his payments to me according to our agreement.” SOLICITOR’S ADVICE Ultimately, bankrupt said, he refused on his solicitor’s advice to go ahead any further with the building, Mr Young, his solicitor considered, having broken his agreement. “Then I unsuccessfully sued him for the amount owing —about £900,” stated Baird. “MiGray Young successfully counter-claimed I fully expected judgment, and was depending on getting my of Mr Young’s house to finance my other work. My present position is due to the unfortunate result of the proceedings mentioned. My difficulties with the Oriental Bay flats began through a serious mistake made by the bricklayer stating his price too low. The bricklayer, on finding out his mistake, abandoned the work, and it cost me £BOO move than the amount allowed for in my tender to complete the work. These difficulties, together with the fact that insufficient progress payments were being made, forced me' to give up the work, which was taken over by the sub-contractors. Mrs Baird out of her separate estate advanced £7BO to help me to carry on. In regard to the Oriental Bay flats, it is proper to state that the sub-contractors took over both the benefit and the burden of the contract and carried it through to , conclusion. I have no assets, and am at present working for wages.” “WOULD BE MONSTROUS” After the Official Assignee read the bankrupt's statement. Mr C. G,. White, who represented Mr Gray Young, said he desired to protest against the framing of the statement. Counsel said that it would he monstrous that that sort of thing should be put on record when the case had been decided against Mr Baird. “He is repeating statements which the jury disbelieved.” said Mr White. Mr Cornish: The purpose of putting in the statement is to enlighten ‘he creditors. It is an explanation of the circumstances. The creditors come hove to hear the explanation, as they have’ a right to. It is a candid and frank statement of the position. The judgment is a highly appealable document, hut Mr Baird unfortunately did rot have the funds to appeal. The whole position of Mr Baird is the result of these proceedings. Mr Cornish pointed out that Mr Gray Young was the principal creditor, and consequently any examination would have to be directed before the Oriental Bav transaction started. Mr Tansley: He can be asked any question at all. Mr Feil: How much money has been expended on legal expenses in the last three years ? Bankrupt: With legal and arbitration costs, about £BOO. In reply to Mr White, bankrupt said he had owned some property at Timaru. Mr Tanslev stated that three of the bankrupt’s sections at Timaru were mortgaged to a deceased estate, hut the payments were not kept up and the sections were sold. , LIKE TO INSPECT BOOKS Mr White said he would like timo to inspect the bankrupt’s books. Mr Feil: .I do think Mr White considers he is the only person to be considered. Because Mr Gray Young takes it into his head to make Mr Bairtl bankrupt, the other creditors are not to be considered at all. Mr White thinks because he has finished we all are finished. - “We have not adjourned yet,” reminded' Mr Tansley. “Tins is a bankruptcy of sheer misfortune.” remarked Mr Cornish. Mr Feil: I should say sheer misfortune comßned with love of much litigation Mr Tansley: Do you suggest he went into it for fun ? Mr Feil: There are oertain individuals who are always getting themselves into disputes with others. “Gross incompetence in making up his costs,” remarked Mr White. , “You can’t sav that,” replied Mr Feil. who produced books showing that in September, 1921, bankrupt had a capital of £393. Mr Feil also showed that from .July, 1920, to September 1921. bankrupt in addition drew out £1054. After further discussion, the meeting was adjourned sine die to permit of bankrupt’s books being examined.