A CHECK TO DUMMYISM.

Otago Witness, Issue 2467, 26 June 1901, Page 10

A CHECK TO DUMMYISM.

AUCKLAND, June 17.

An important judgment under " The Land Act, 1892," was given in the Supreme Court to-day by Mr Justice Conolly in the case Smart v. Dixon, an action for specific performance of a contract to sell a lea&e-in-perpetuity section of 300 acres in Northern Manoa for £859. Mr Hugh Campbell appeared for plaintiff, and Mr W. J. Napier, JM.H.R., for defendant. It transpired that alter the agreement was made by Smart to purchase Dixon' s section Smart resold the property to one Edson at a profit of £500, and directed Dixon to transfer the land direct to Edson. Dixon refused to complete the agreement, and vSmart now sought a decree from the court to compel Dixon to transfer to Smart. Mr Napier, for defendant, contended that under sections 83. 86, 95, and 62 of "The Land Act. 1892," the ogieement was illegal and void and incapable of being specifically enforced, and that to allow the coutiact to be earned out would be to legalise " dummyi&m." Mr Campbell contends that there was nothing in the Land Act to restrict the free alienation of interests in law. His Honor said he must find for the defendant. The sections of the act quoted by counsel for defendant were so clearly prohibitory of dealings in Crown leaseholds such as wps disclosed in this case that it would be improper for him to grant specific performance. As, however, defendant ■« as succeeding on purely legal grounds he would; nob order costs.

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