ASHBURTON LIBEL ACTION

NZ Truth, Issue 818, 16 July 1921, Page 6

ASHBURTON LIBEL ACTION

Builder's Bother Over Business Accounts

Timber Merchants Sued for £200

Da*mages

(From "Truth's" Christ-church Rep.) On Friday last, W. J. Brown, builder, Ashburton, proceeded against W. H. Collins and Co. and S. J. Graham, secretary to the company, for £200 for alleged defamatory statements, the case being tried before Mr. E. 'D. Moslcy, S.M., at the Magistrate's Court, Mr. O. T. J. Alpers appeared for plaintiff and Mr. C. S. Thomas for defendants. Mr. Alpers said that the case •was one uf slander, .which the plaintiff was compelled to bring m defence of his business standing m Ashburton. His financial position was steadily improving since he had been m business on his own. For a number of years he had a current account with the defendant firm, with whom he dealt for materials. The defendants had gone round to his various jobs and asked the clients for a personal undertaking ( for the materials supplied. Without these undertakings no more credit would be forthcoming. In doing this they exceeded what they were entitled to do, and made false statements concerning plaintiff's standing. An apology had been asked for, to be published m Timaru, Ashburton, and ChTistchurch, but defendants refused, and his client was compelled to bring the matter before the court. W. J. Brown, plaintiff, said that he went into business m 1915. Ever since, except with one short break, he had dealt with Collins and Co. His largest account, with them was £G2l. He had a guaranteed overdraft at the bank for £500, and had a freehold property. Up to August 1, 1919, when his account .with Collins and Co. was &621, the firm . HAD NEVER PRESSED HIM, though on one occasion they had asked him for an order on Mr. R. Kennedy, for whom plaintiff was building a house. This was refused. When the £G2l account was rendered, plaintiff, paid £150 by cheque, and could have drawn a further £338 without exceeding the limit of his overdraft. When the £150 was paid, Graham (secretary to the company), asked for more money, and plaintiff said he would give them more m a few days or give the company a bill on the bank. Graham .said his firm did not wani. a .bill, ;so plaintiff left with the understanding that he would have to get more money. He fully believed he could collect the amount of Collins's account within a week, and intended to do so when he Went out on the jobs. Plaintiff related how Collins and Co. had placed liens on jobs being carried out by him. He had been questioned by business people regarding his finance. The rumors had affected his position with customers m respect to progress payments, which, since the trouble, were less than were asked for. He had succeeded m paying off Collins and Co., and had closed the account. Later, he interviewed, "a solicitor and demanded at apology, which was not forthcoming. His money was locked up m various jobs, but he was not at all perturbed about his finances. He never refused to disclose his position to Collins and Co., and had never been asked to do so. On September 14 he owed debts of about- £1000. Prior to the defamatory statements his credit had nevej been questioned. He received a letter from a Christchurch firm stating that the CASH, * 'AND NOT A^ CHEQUE, was wanted before goods would be supplied. William Jewel, farmer, Lowcliffe, said that m September last year, Brown was building a concrete house for him. One day Collins and Graham called upon witness, and Grajiam asked him to sign an agreement; otherwise Brown would get no further cement. Graham said: that Brown's credit was about done. One of the party said that Brown was drawing moneys from his jobs -faster than he should, arid Collins were not getting their share. . ■ '< Nurse K. Shepherd said that Brown was doing alterations to her house. On one occasion Graham called upon her and put a paper m her hand. Graham had said, "Brown is m with us for four figures. Brown is all Tight as a man, but no good at finance," Witness was much upset, and she paid the money, £40, into Mr. Ferriman's office. . , Stephen H. Lill. farmer, Tinwald, said that last September, Brown- was doing alterations to witness's house, to the value of £500 or £600. On one occasion, when he went to get a load of timber for Brown, witness was told he could have the timber if he would be responsible for payment. Collins made him believe that Brown was m financial difficulties. He clearly remembered Graham saying that Brown had v received progress payments from jobs, but had not paid Collins their share. William H. Jaine, architect, said he had charge of a job for Mr. Burgess. Graham came v to Burgess and asked him to sign an agreement. Graham had made it clear to witness that no.; more timber would go out to the job unless Burgess made himself respons-. ible. Graham at the same time led witness- to believe that Brown was "dodging." The evidence of Leslie Dunn (taken at his bedside), showed that Graham led witness to believe that Brown was m financial difficulties. Mr. Thomas, m moving for a nonsuit, "quoted "various cases to prove that there had not been malicious intent. In the present case there may have been recklessness of statements, but these were not malicious. There was no difference between legal- or popular malice. ■ Mr. Alpers agreed to a non-suit on two of the five counts, but asked for judgment on the grounds that the remaining three contained LIBELLOUS AND DEFAMATORY STATEMENTS. Sydney James Graham, secretary pf W. H. Collins and Co., said that he arranged for Collins and Co. to accept orders from Brown. The account had been opened m 1918, the arrangement was that accounts should be paid monthly, or , a fair proportion of progress payments. In 1919 witness took steps to collect accounts from Brown. It became a continual job to go to Brown's shop on Saturdays. These visits commenced m July or August, 1919. ■Witness could never -induce Brown to go into Collins's office. Brown* ■had made various statements regarding pi' Ogress payments which were incorrect. In August witness heard rumors about Brown's position. On. one occasion Graham pressed Brown for money,, and suggested Brown should give Collins orders , on various jobs. Brown about that time paid £150. Statements, made by witness about Brown were made on request to the persons mentioned. He had heard from Dunn, as a rumor, that Brown was m queer street. He advised Dunn to drop the matter. Referring to a visit from Jewell to Collins, and Co., witness said that Jewell had asked for Brown's account. Witness at first refused to give it, but Jewell gave him to understand that he wished to have the account squared. The account was then supplied." Witness was positive that he had not made any statements to imply that Briscoe and Co. would not trust Brown. The court reserved decision.