HOTEL TRANSACTION

Otago Daily Times, Issue 24750, 29 October 1941, Page 6

HOTEL TRANSACTION

MORTGAGE INTEREST iC^ASE v v ■ ■ jgsm ||| :[’;■?%/f /amount of/judgment REDUCED r (P.A.) Get! 28. . The Court of Appeal 4hlß morning delivered its the appeal case, AiistMU£n'.;: Provincial Assurance Association, Ltd., against, E. T. Taylor and Co.. Ltd., • wine and spirit merchants, of Wellington, heard by it on September 16, 17 and 18. The case concerned a sum of £1702 4s-9d, which Taylors alleged that they had j overpaid the association by way of: interest on a first mortgage of £20,000 over the Grand Hotel, Wanganui. after Taylors had entered into possession of that hotel under their power as second mortgagee. Taylors edntended that there had been an agreement between them and the association for acceptance by * the latter of interest at a lower rate than it was Entitled to under the mortgage. This was denied by the association, but the Chief Justice. Sir Michael Myers, in the Supreme Court, found that there w& such agreement, and gave judgment for Taylors for the amount claimed and costs: To-day the Court, of Appeal allowed the association’s appeal to the extentof ( reducing by £397 5s 3d the amount of -Taylor’s judgment, holding that, although there had been an agreement for payment of interest at a lower'rate, the agreement had ceased to ’operate at a date earlier than that alleged by Taylors.