SOLICITORS AND MONEYLENDING

Otago Daily Times, Issue 14701, 8 December 1909, Page 2

SOLICITORS AND MONEYLENDING

JUDGE'S STKONG REMARKS.

(Pm United Press Association.) AUCKLAND, December 6.

The Supreme Court Svas occupied in a case in which Geo. Ellis claimed from Oliphant awl BaUley, solicitors, £18 9s Bd, balance of account, and asked tho court to declare a letter of indemnity void. In the course of the proceedings Mr Justice Edwards said : " The profession of a money-It i.-r is entirely incompatible with the profession of a solicitor of this court. Judges of the Appeal Court have struck solicitors off the liet for being bookmakers. To my. mind it is much more incompatible with the practice ot a solicitor of this court to be a moneylender, and representations ought to be made in the proper quarter." The case is proceeding. FURTHER JUDICIAL REMARKS. December 7. Reverting to the money-lending case in the Supreme Court this morning, Mr Justice Wards said that he did not desire to create any new practice. He would like to consider the question of costs. This was a case involving the conduct of solicitors of the court, but not in such a way as to suggest the necessity of any appeal to the powers of the court. In that respect he suggested that he had no desire to prejudice the character of the defendants as solicitors. Still the case did involve some consideration of the conduct of solicitors. He would have to consider how far that was justified in a Supremo Court action where less than £50 was involved. OPINION IN WELLINGTON. (From Our Own Uohresi'ondkmt.i

WELLINGTON, December 7. The remarks of Mr Justice Edwards in Auckland yesterday concerning solicitors and money-lending have caused not a little curiosity and sm-prise amongst the proii'ssion. who are more closely interested. The general feeling in Wellington is (a- Post representative gathered) that the mesage from Auckland is not explicit enough, and several of the leading members of the profession who lend out money were averse to any comment until further particulars were available. One prominent solicitor said he thought that the extra judicial remarks must refer to moneylenders who are bound by the Money-lenders Act of 1908, which included registration of mines. The act was paused . r or the purpose of regulating tho rale of interest. This gentleman expressed the belief that the* remarks of the judge could hardly be accepted in a broad sense. He mentioned the Writers of the Signet in Scotland, who were ofttimes small bankers. "If « can't lend money legitimately the court had better blot us out altogether," added the speaker, who went en to say that people who lent money at less than 10 per cent, were not included in the above act.

Another legal representative who does a considerable amount of loan business said that, without further information being available hu judged the court's comment to refer to solicitors advancing money on personal securities such as bills of sale, notes of imnd, etc. He considered that tho judge meant to convey that it was improper for solicitors to lend money to their own clients. The speaker referred to the close relationship that exists so often between the solicitor and his client, wherein it was possible for the former, if he were so disposed, to take an unfair and improper advantage which such a relationship offered. There was a tradition of tho profession against a member receiving or accepting gratuities from a client. The theory was that of the relationship of solicitors and client in which the latter should not be placed in the power of his adviser. Probably, added the speaker, the judicial remarks had reference to this theory.

"It must refer to 'cent, per centers,'" said another. He hazarded that it would be a. ridiculous thing if solicitors could net lend their own (or anyone else's) money at a reasonable rate. It was probable that the judge had a particular class of money-lender in mind.