GUARANTEEING AN OVERDRAFT.

Otago Witness, Issue 1947, 18 June 1891, Page 23

GUARANTEEING AN OVERDRAFT.

Ohhistchuech, Jane 15. An important case arising out of the transactions of the late J. B. Gresson was heard at the Supremo Court, before Mr Justice Denniston and a special jury of 12, to-day. It was brought by the Bank of Australasia to reoover £5000 from Mr Cook Reynell on account of a guarantee of Gresson's overdraft signed by him. The' bank advanced £5000 on this. Defendant pleaded that Gresson had .obtained his signature fraudulently. He read the guarantee stating the amount as £500, which was what defendant agreed to become responsible for. The document was filled in for £5000 either then or afterwards, but Reynell did not notice when signing how it was filled in as he had implicit confidence in GressoD, who had managed his affairs for many years and always acted honourably. Reynell also signed a certificate to the effect that the guarantee had been read to him, and he acknowledged himself responsible for the amount mentioned therein. The bank contended he had been guilty of negligence, but the jury by a two-thirds verdict found he had not. Mr Justice Denniston gave judgment for defendant, but there are legal points to be argued in Banco. Messrs Wilding and Stringer appeared for plaintiffs; Messrs Harper and Martin for defendant.

The opinion of Mr B. C. Haggitt, Crown solicitor, was read at the meeting of the Land Board yesterday upon a matter referred to him for his advice by the board, the members of which were in doubt upon the point. The question upon which the solicitor's opinion was requested was whether an inquiry can be held under subsection 2 or 3 of section 71 of " Tbe Land Act 1885 " into the case of a pastoral deferred payment licensee suspected of dummyism, whose l'cense was granted in September 1880 and exchanged for a small grazing lease in April 1888, which lease subsequently was, with the consent of the board, transferred from the lessee to a purchaser. Mr Haggitt advised the board that they had no 'power to hold an inquiry in the terms of the act, and he also advised that it would b8 useless to prosecute the original licensee under section 29 of " The Land Act 1885 " for having made a false declaration, but he added that a prosecution for a misdemeanour might lie under " The Justices of the Peace Act 1866."

Mr J. T. Gwynne is gazetted registrar of electors for the electoral district of Waitaki.