SHIPBUILDING CASE

Otago Daily Times, Issue 19042, 12 December 1923, Page 7

SHIPBUILDING CASE

CLAIM AGAINST AMERICAN COMPANY. f. THE SUPREME COURT INVOKED. Press Association—By Telegraph—Copyright WASHINGTON, December 10. The Commonwealth of Australia won an important decision in a suit arising out of a wooden ship contract when tne Supreme Court granted the Commonwealth Government a writ certiorari, permitting a rehearing before the highest tribunal. This case, which has ran the gamut of the inferior courts, is several years old, and is extremely overgrown with legal details; but the issue in its simplest lorm is as follows:—The Patterson M‘Donald Shipping Company, which had been ouiiding wooden ships for the Commonwealth, •became bankrupt before completing yta contracts, and a special master in bankruptcy was appointed. The Commonwealth advanced certain claims against the company for the ships not completed and ior ’ the undertaking not being tulfilled; while the company presented opposing claims against the Commonwealth. These conflicting claims were taken before a board of arbitrators, who decided that the Commonwealth’s just claims amounted to 9,375,000 dollars, and tne company’s claims to 9,688,000 dollars. The Commonwealth brought an action seeking to set aside the arbitrators’ award, but the court refused the Commonwealth’s petition, and the Commonwealth appealed to a higher court; but again without success. The CommonweaKh finally appealed to the United States Supreme Court tor a writ certiorari, stressing the point that, as a sovereign friendly Power, Australia was justified in asking for a rehearing of the entire case. The Supreme Court acceded to this request, and it is now expected that several months will elapsa before the matter will come on for tinal issue. Another-interesting feature is that Lha company attempted to secure a verdict in several courts making the difference between the i respective claims—namely, 313,000 dollars—stand as an enforceable judgment in the company’s favour; out it did not succeed in this. —A. and N .16Cable.