DISPUTED GUARANTEE

Poverty Bay Herald, Volume LXI, Issue 18335, 1 March 1934, Page 4

DISPUTED GUARANTEE

CLAIM AGAINST BANK DIRECTOR’S * ALLEGATIONS (Per Press Association.) WELLINGTON, last night. The action was continued in the Supreme Court to-day in which allegations of fraud against the Commercial Bunk of Australia, Limited, and its manager, Edwin Percy Yaidwin, in a case in which 1* rcdci ick William Moore, a merchant, of \\ olliagton, is claiming £l4Bl with interest from the bank, Yaldwin, Athol Pierard, a bacteriologist, of V ellington, and Sidney John Hammond, a builder, of Wellington. The claim is made against the defendants jointly and severally. Counsel for the plaintiff made it clear that there was no charge of fraud against Pierard and Hammond, who, as guarantors, were sued for a contribution. Pierard, said Mr. Young, Ins counsel, in opening his defence, was not an experienced business man. lie was appointed a director to protect his mother's interest in 1928. He was very uneasy about the situation, as it then existed, and pressed for her release. As a result Davies made some arrangements with the Commercial Bank. Davies took Pierard and Hammond to see Yaldwin, who said that the Commercial Bank would be pleased to do their business, and congratulated them on being directors of such a promising concern. Pierard signed a document, but would assert that the word guarantee or any mention of personal liability was not heard from October, 1931, until September, 1933, continued Mr. Young. No communication was received by Pierard or his solicitois about the guarantee. The defences would be: (.1) That; the defendant was not aware that the documents lie signed constituted a guarantee; (2) that Pierard was entitled to avoid a guarantee because o'f the representations made to him at the time of execution; and (3) that he was icleased before the material event. Following evidence by Pierard, and a lengthy cross-examination by Messrs. Watson, Cooke and O'Leary, the court adjourned until to-morrow.