A CLAIM FOR RATES.

Otago Daily Times, Issue 13890, 30 April 1907, Page 7

A CLAIM FOR RATES.

LIABILITY DISPUTED. At tho Court yesterday, ljoforo Mr H. Y. Widdowson, S.M., a case was heard in which tho Mayor, councillors, and citizens of Duncdin clalacd from William; Pollock, billiard-saloon proprietor, and tho New Zealand Government Life lnauranco Department tho sum'btf. £59 8a for rates in respect, of a building- 'knowit a.i Court's ■ Hotel,. Rattray street. Mr -W. C, Macgrcgor appeared for tho corporation, Mr P. J. Stilling for- dafor.dant W. Pollock, and Mr J. C. Stcpheus for the New Zealand Government Life Insurance Dopartment. The statement of claim set out that defradmis were respectively indebted to the plaintiffs in respect of tho rates on tho building known as Court's note!. Tho said rates had been duly demanded in writing, pirrfiuant to " The Rating Act, 1804," and were at present date iuoro than six mouths overdue, una this remained owing with 10 per cent, added thereto.

Mr Stephens preliminary objection to tho summons being issued against the Government Life Insuranco Dopartment as defendant, to its being- described as a company carrying on business in Duncdin. Tho department was not the proper defendant in the action, and it waß not a company. Tho sction had bosn so brought, ho presumed, in order that tho defendant should -bo sorvod iu Duncdin, whilst ho contended that service should be -made in Wellington, and that tlw district officer at Duncdin iiad no more right ta receivo tho summons ithan had tho railway . engineer lo receive servico of a summons against tho Railway Department. Mr llacgrcgor, in opening, said the person' liabla for tho rates was tho person in actual occupation ot the building. As (ar as tho Government Insuranco Department was concerned, it was mado u, defendant and sued as owner of tho property. There was no doubt that tho department would bo liable. Tho corportiou had an alternative remedy against cither tho occupier or the owner. Lviilonco was givcoi by David Duncan, accountant, Duncdin City Corporation, who said lie knew tho property in question, fortticrly known as Court's Hotel, standing alongfiidc and separato from> the Government Influraiico Building, also rated separately. In the early part of 1905 tho defendant Pollock had a billiard room in tlio lower part, Clancy wing tho other part of iho building. A rate was 'struck as from the Ist April, 1905, to Jlnrcli, lflOG. The rate was first of all struck in Clancy's name, but when ho became bankrupj, a notice was served on Bollock. In June, 1305, a Tat© notice was s-crved on tho GovornHiCJit Lifo Insuranco Department, whieii declined to pay. Pollock remained in possession till September, 1905, rind tho place- had Binco then been unoccupied. If was not rated the next year owing to being unoccupied. Goargo Grey. clork, temporarily in the employ of tho City Corporation, said ho had delivered to Mr Pollock qn Juno 2G, 1905, a demand for payment of rates. At Pollock's he took tho into njotico tcj iho Government Lifo Insurance Detriment. The nolico was re-RRrvod on Pollock on July 2-1. Mr Stilling said that as to the liability of his client (Pollock) he admitted that on tho definition of tho wan] "occupier" in the lflOi act, so Jong as ho was in beneficial occupation at tho 'timo the rent became due, he could not fleo how ho could escape liability. But what took place was that Pollock had had a leow of tho property from LnJToy, but that lenso Jnd never been recognised by the Government Insuranco Department, and on LafTey's bankruptcy in February Pollock simply romaincd in possession, always anticipating: that sonictluug definite would be done. Ho continued there paying rent until August. He had boon negotiating for a frcnh Icrfo, ctc,, tho question being ijqw much uwney the Government was prepared to spend in putting the place in a better state of repair. Pollock thon gavo tho uovernmont Insuranco Department a-month's notice that he was leaving, and did eo on September 28. at. tho time ho ceaDod to occupy t-lio place the rates were not due. His Worship would notice that one-half of tho BPecial rato and one-half of tho water rate was not duo until tho Ist of November, and ollock quitted Ihe placo on Soptombesr 38. It was pretty clear thai a.deuuuid under tho act in respect of a rate that was not duo at tho timo of.the demand was faulty. Furthor, tho demand did not disclose that there was a demand signed by any person duly appointed by the local authority to collect rates. Ho (counsel) would ask for a non-suit as regarded Pollock. }

Mr Stephens said there was the question as tci whether tho parties wcro rightly joined. The corporation coulil not recover from bolli parties. It must bo cither against the occii* pier or, if the occiipier were ndl liable, against the owner. But tiion judgment Couitl not bo prwioimcetl against the Now Zcalnml Governliiont Life.lnsurance Departmont under'any circumstances, because thero was 310 such incorporate body ns the New Zealand Government Lifo Insurance Department. It was truo that in 183-i there was nn incorporate body called tlio Now Zoaland Government Lite 111fiurniu'o Association, but that association had been dissolved. t iio coultl . show- conclusively thut- t.lio Government Life Insurance Department was now simply a part of tho Stato. The department itself was. not tho owner of the property. The property was sold lo Lufley, and he wns nimble- to- coinpleto* llio purchnfc and became bankrupt.. Tlio Government Lifo Insurance Department had authority lo ■ purchase lands .in connection with the purposes ot tln'y department, This land having been purchased 1 • 11m department was purchased tor tho premises of tho department. If the department purchased a block tor buililiiit; unit occupied portion of-lhiit buildim; when erected and even lot the remainder to tenants, tho ■ building so owned would not bo liable for rates In a corporation. Tli'e proper.}- was vested in the Crown, and. the powers in lite properly wero exercised by the Governor or Commissioner. This property was vested in the Crown, and! the Clown was not liable for rates 011 it, let or unlet. Mr llacgregor replied to the points raised by llr Stephens. His Worship intimated that he would givo judgment at the City Polico Court this inorni"Bv