CLAIM OF £137,000

Southland Times, Issue 25386, 13 September 1935, Page 8

CLAIM OF £137,000

ACTION AGAINST BANK. MR LYSNAR’S CASE. (Per United Press Association.) Gisborne, September 12. The case for the defence in the action in which William Douglas Lysnar claimed £137,000 from the National Bank of New Zealand following repudiation of a contract concerning the financing of plaintiff’s Arowhana Station, opened to-day before Mr Justice Blaii' at a special sitting of the Supreme Court, which commenced on Tuesday of last week. Mr A. H. Johnstone, K.C., counsel for the bank, said that if plaintiff succeeded he would have raised himself from a position of hopeless insolvency to substantial wealth during a period when other farmers had found difficulty in carrying on. Prior to 1931, Lysnar had owed £40,000 to the Public Trustee, £72,000 to the bank, and £9,000 to the East Coast Commissioner, in addition to other large amounts. Plaintiff now sought the return of the property, plus £137,000 and, if he succeeded, could pay off the Public Trust mortgage, and have £12,000 in his pocket. The bulk of the money spent by Mr Lysnar on the station had been found for him by the bank, which had agreed to cancel £42,000 of the £72,000 owing on overdraft. Counsel said that the claim was a startling one which, in all the circumstances, savoured of rapacity and greed, and it was hoped to show that it contained no more substance than merit.