FIRM SUES MANAGER

Poverty Bay Herald, Volume LIX, Issue 17944, 23 November 1932, Page 10

FIRM SUES MANAGER

BREACH OF INSTRUCTIONS CREDIT WRONGFULLY GIVEN A claim for the recovery of £152 5s lid made b.y Skelton, Erostiek and Company (in liquidation)’ against its former Auckland manager, A. L, Jafirey, lias been upheld m the Auckland Magistrate’s Court by Mr W, 11. McKean, iS.M. It was alleged by pluintitf company that the amount of the claim had been lost to tlie company through defendant committing a breach of instructions by supplying goods to one, Webb, or the City Boot Stores, Limited. Alternatively, recovery of the money was sought on the ground that defendant negligently carried out his duties and gave credit to the City Loot Stores, Limited, knowing that the company Was unfiuancial and that credit should not be given. INSTRUCTIONS BY COMPANY. In reviewing Hie case, the magistrate said plaintiff company had had dealings with the City Boot Stores, whose financial position was, (luring the year 1931, unsatisfactory, and plaintiff company would not supply goods on credit. In a letter to defendant on August 19, 1931, pluintitf company saiil that ‘‘not anything less than a certified cheque before delivery of goods would be acceptable to us.” Defendant himself on August 26 wrote saying “we could not consider any orders received from them.’’ The following month plaintiff company went into liquidation and defendant subsequently established an agency under the name of “\y. I). Redmond.” This fact, however, Was not known to the liquidators, and defendant continued in charge of the Auckland branch of plaintiff firm until January, 1932. On Decernber 4, 1931, defendant supplied the City Boot Stores with goods to the value of £196. The goods were selected by Webb and were listed on a pro forma invoice, not to Webb or City Boot Stores, but to “W. D. Redmond” at liquidation prices. Defendant had quoted to Webb higher prices than liquidation prices. He instructed an employee to charge the goods through “Redmond’s” packing slip book. RATES OF THE CHARGES At a subsequent date they were charged to 'Webb. They were charged at the liquidation price to “Redmond” and at the advanced prices to Webb, Defendant had told the employee that Webb was to pay for the goods in a short time and then it was to be put through as a cash sale. “Defendant says that the entry in the ‘Redmond’ book was an error on the part of an employee,” said the magistrate. “1 am satisfied it was not an error, but was made because of defendant’s instructions.

Mr. MuKcan said the position of Webb did not justify the giving of credit, and defendant, who was aware of this fact, acted improperly in giving credit. Plaintiff company was entitled to recover because of the breach by defendant of express instructions. The company would have been entitled to recover in the absence of those instructions and also on the ground that the sale as put through was to “Redmond,” and from that moment a liability of defendant. Judgment would be for the amount claimed.