UNION TRUST FUNDS.

Otago Witness, Issue 3881, 31 July 1928, Page 69

UNION TRUST FUNDS.

. AMALGAMATED ENGINEERS. SUPREME COURT JUDGMENT. CHRISTCHURCH, July 26. Mr Justice Adams, in a reserved judgment to-day, made a declaration that the trustees of the Christchurch branch (No. 3 in New Zealand) of the Amalgamated Engineering Union held funds in trust for the parent union in London, and not for the local branch. The case heard in Christchurch has been watched with interest by members of trades unions. It was between the trustees of the parent union—G. Brentnall, F. A. Broad, W. R. Flynn, F. J. Jordan, and W. Scofield, of London, plaintiffs—and R. Hetrick, M. A. Flanagan, J. Sturrock, E. F. Dixon, and T. H. Grover, trustees of the local branch, defendants. The New Zealand branch was established some time before I'9oB. It _ has never been registered as a trade union in New Zealand, but it obtained registration as an industrial association of workers in 1908. In 1921, consequent upon an alteration of the rules of the parent uhion limiting the membership ofthe branch to 300, the New Zealand branch was divided into three branches distinguished as Nos. 1,2, and 3, each branch having separate officers and trustees. In March, 1923, the three branches decided to continue as an industrial association only. The funds then held by the trustees of branches 1 and 2 were remitted to the trustees of the parent union in accordance with the rules; but the trustees of branch No. 3 retained the funds in their hands and applied them to the use of the industrial association. It was admitted that subject to the payment of certain expenses these funds were held by the defendants in trust for the plaintiffs as trustees for the parent union. It was also common ground that the union was .an unlawful society at common- law, some of its objects being in restraint of trade. The plaintiff asked—(l) For judgment for £217 19s 2d; (2) in the alternative, an injunction restraining the defendants from distributing the funds of No. 3 branch among the members of the branch and from dealing with the funds otherwise than in accordance with the rules of the union; (3) an order payment; and (4) general relief. His Honor said that there would be a declaration that the defendants held the funds in issue upon trust for the parent union. As the funds had been paid over to the industrial association the court could not now grant an injunction restraining the defendants from misapplying them in breach of the trust, and for the reasons stated no order for payment could be made. The plaintiffs must have costs against the defendants on the lowest scale, including costs of .the interlocutory proceedings and disbursements and witnesses’ expenses (if any), to be fixed by the registrar.

Mr H. D. Acland and Mr F. S. Wilding appeared for the plaintiffs and Mr P. J. O’Regan, of Wellington, for the defendants. ‘