AN INVOLVED CLAIM

Poverty Bay Herald, Volume LIX, Issue 17946, 25 November 1932, Page 9

AN INVOLVED CLAIM

ADVANCE OF FUNDS MISREPRESENTATION ALLEGED (Per Press Association.) NEW PLYMOUTH, this day. P On an allegation of misrepresentation, Arthur Edward Oowley, of Tariki, a farmer, proceeded in the Supreme Court to-day before Mr. Justice Reed against Cecil Claude William Haselden and the Bank of New South Wales in a claim for £SOO and interest. The action against the bank was not proceeded with, and counsel for the plaintiff accepted a non-suit with costs. For the plaintiff, it was held that Cowley was approached by S. R. Dartow, a solicitor’s clerk, to advance £750 to Harold J. M: Thomson, formerly a solicitor of Inglewood, on the security of ai seven-acre property at Otahuhu, and he referred Cowley to Haselden for particulars of the security. It was alleged that the advance was made on tlie misrepresentation of Haselden, who .was then manager of the bank at Inglewood; further, that he withheld certain information from Cowley, namely, that the value of. the property had been reduced by the hank from the original valuation of £I6OO to £I2OO, and then to £7OO, and also that lie knew that, the bank was pressing seriously for repayment of Thomson’s overdraft, which ail that time amounted to £BOOO. ; It was alleged that there were inducements which led Cowley to make tlie advance. When Hie crash in Thomson's affairs came, it was found that there was no proper mortgage to Cowley, and that, all tlie bank held was an unregistered mortgage to another person, wliich subsequently was registered, and Cowley took a second mortgage for what it was worth. The property was subsequently sold by tlie first mortgagee and gave a return of a mortgage for £390 and £35 cash.