CASE OF A SOLICITOR.

Colonist, Volume LX, Issue 14546, 26 October 1917, Page 7

CASE OF A SOLICITOR.

TRANSACTIONS WITH A MAO.LU

[;Dnited ' Pafisjs Association.,]

.'.,.. Wellington, Oct 25 Tlie ■"Court" of "Appeal to-day iieard an_ application to strike off the roils William Gascoyne Beard, solicitor, of Mastevfcon, for alleged professional misconduct in connection with dealings with Rangi Kerehoma, a Maori. Mr Yon Haast appeared for the Law Society, and Mr Gray, K.C., and MiMyers for Beard. The grounds of the application were that Beard, being Kerehoma/s solicitor, and knowing him to l:ave >large trans- ■

actions with William Boyce Chennells, who was formerly representative of the Public Trustee at Matiterton, advised and procuVcd Kerehonia to give a power of attorney to Chennells, and be declared a European, thus bringing Kerehoma under the influence of Chennells, and that by undue influence, in breach of his duty and in fraud of Kerehoma's1 rights, lie procured transfers and sales' of lands known as Mangahuia, Uhiroa. and Tablelands, in most ca-ses to members of Beard's, and Chennelis' families; that f.uch sales were* at a gross; under-value, as evidenced by the fact' that Beard and Chcfnneils settled a sub- j sequent action broughc by Kerehoma j against them by agreeing, to pay' £13,498 sterling "damages, ar.d costs £600, and relinquishing the claim to the Tablelands property: that in conjunction with Chennells lie procured acceptance by Kerehoma of less than; £1000 out of a total of £48,000, because! of the money and acceptance of mort-( gages for the balance, such mortgages j in several instances being for a large I amount than the---purchase money pay-1 able by the mortgagors; that. Edgar Hallett, of Napier,' who was put forward as Kerehcma's solicitor, was really acting for Beard and Chennells, and Hallett was not instructed until avrangeirents Jiad already been entered into; and that although Board knew the lessees of Kerehoma's lands wanted to renew the leases or purchase, he subordinated Kerehoma's' interests to those of himself and Chennclis. ; Air Yon Huast, in. opening for the Law Societ.Vj :said the case showed that when Beard and C'henneiis were on the eve of completing their arrangements' for acquiring Mangahuia, Kereiioma ■was advised to make application to bo made a European, and thus all restric--.; lions on the alienation of his .land were removed. And although iSea'-rd and i Chemieils knew that Kerehoina's les-

sees, Strang and Hodge, desired a renewal of Mangahuia, Beard and Chennells purchased it from Kerehoma for :£48,000 without making any attempt to invite competition or see "if a higher price could be obtained in the open market: They . received £6000 cash | from sub-purchasers of part of Mangahuia,- but persuaded Kereiioma to leave £43,000 (except £968 Is 6'd) on mortgage at '5 per cent., £10,000 for iive years and the ha lance, for twenty years, most of tha moitgagors being without assets. •■'■ And although Beard and Chennells themselves were the real purchasers (the transferees being merely volunteers through them), Beard ana ■.Chennells c.id not guarantee payment themselves, or make the whole of the land liable for the whole of the purchase money. Knowing that Kerehoma required to raise about £12,000 to discbarge his liabilities,!they allowed him to sub-mortgage- some of the purchasers' mortgages en £8000 for five years at 0 per cent., and they persuaded Kerehoma to allow the mortgages from purchasers to be so arranged that in the case of the following mortgages the amount received by mortgage was substantially j higher than the amount of the purchase j money for the land, v;iz. :—N. M. Beard, i price paid £3736, principal secured £3940-; G. G. Beard, £6999 and £7392; Elizabeth Chennells; £7204 and £7609; E. J. Chennells, £7291 ."and £7699. Mr Voii Haast then dwelt on the fact that when Kerehoma sued Beard and Chennells, and it was alleged that they, [knowing Kereiioma was unfit to manage his" own alfairs, advised him and procured transfers to members of their families by undue Influence, in breach of their duty, they settled the action by • agreeing 'it: paying £]5,000, • Beard and Chennells had themselves to become personally liable in a bond for £49,000, and had to agree to pay interest' at 5j insteai of 5 per cent., and to make up the interest on Perry's mortgage to 5} I per cent., and agree to pay .such sums jas would reduce the amount of interest on the sub-mortgages from Kerehoma | from Qto 5h percent. Mr Yon Haast | had not concluded when the Court rose. It is expected the case will last three days. I cppflSniuolad rthea rihor atrol oartaro I.' ■;" _;_L_,.__i::/-. :i_i_.'' - .