CLAIM AND COUNTER-CLAIM

Taranaki Daily News, 26 May 1933, Page 3

CLAIM AND COUNTER-CLAIM

CASE IN NEW PLYMOUTH COURT. QUESTION OF ACCOUNTANT’S WORK A claim made by George Coombes, a retired farmer, against Charles Thomas Mills, a New Plymouth accountant, for £ll3 7s 4d was met by a counter-claim for £ll6 5s when the case was heard yesterday in the New Plymouth Magistrate’s Court before Mr. W. H. Woodward, S.M. The claim was for moneys lent and was admitted by the defence, and the day was occupied with the hearing of the counter-claim, which was for services rendered. The case was not concluded yesterday and was adjourned to to-day. Mr. F. S. Grayling, who appeared for Mills, said he >was an accountant of many years’ experience. Coombes’ interests for many years were looked after by a person at New Plymouth from whom he received statements from time to time. On January 21, 1928, Coombes saw Mills and asked him to check over the statements he had received. An entry in Mills’, diary showed that was the first time Coombes came into the matter. From time to time Coombes paid him sums of 10s or £1 on account of the work done. Mills after an examination of the books told Coombes the statements revealed a shortage of about £2, and Coombes instructed him to ascertain the true position for him. Mills would say he had made a perfectly reasonable charge for the work he had done for Coombes, and other witnesses would corroborate this.

Mills gave evidence along the lines indicated. Evidence that Mills was an able and conscientious accountant was given by L. M. Monteath, accountant. Evidence was also given by E. W. Gamer, public accountant, that Mills was a very good accountant judging from his knowledge of Mills’ work during the past 30 years. He thought the charge of. 125 guineas made by Mills for work done for Coombes was perfectly reasonable.

When he estimated the charge that should be made, the witness said to Mr. A. G. Anderson, who appeared for Coombes, he was under the impression that Mills had spent considerable time with a solicitor in going over the accounts. Had he know only one interview was necessary with a solicitor he would not have estimated the charge at as high as 125 guineas. Mr. Anderson in his outline of the case for Coombes said he was a farmer at Oaonui until 1919, when he sold his farm and came to New Plymouth. While he was boarding at New Plymouth he met Mills and became very, friendly with him. In 1927 he experienced difficulty over his business affairs. He- could not get what he considered a proper statement of his accounts and he wanted to know as he estimated that at that time .there should be about £BOO to his credit in a trust 'account. , At that time Coombes frequently discussed the question with Mills in a friendSy way. He had been trying for some time to get a “complete statement of his affairs and in the meantime he handed to Mills a , bundle of accounts to have a look at. There was no question of Mills making an investigation of the accounts. Mills agreed to undertake the work for about £3, but it was on the 'understanding that if as a result of Mills’ investigations he should recover any of the amount Mills would receive a bonus by way of gift according to the amount recovered.

In March, 1928, Mills made a written application to Coombes for a loan of £65 and a mortgage agreement was arrived at. On December 14 a further advance of £lO was made and on February 25 another advance of £6 5s was made. It was inconceivable, Mr. Anderson said, that Mills should have allowed a debt owing to him to run on without presenting accounts and at the same time borrow money from Coombes. Other small sums were borrowed as well. Coombes would say that nothing was ever said to him about money owing to Mills.

About the beginning of March, 1933, Coombes insisted on Mills giving him security on the moneys he had. advanced. It was only when Coombes brought pressure to bear on Mills that any difficulty arose. It was only then that Mills raised the question of a small fee. When asked to name the figure due to him he said he could not do so but he would make up an account. That account was not rendered, in spite of urgent requests, until April 7 or 8. It was extraordinary, Mr. Anderson said,;that Mills had let the account go for fouri years before, he put in a claim.