A BANK OF NEW ZEALAND SHARE CASE.

Temuka Leader, Issue 2887, 29 October 1895, Page 4

A BANK OF NEW ZEALAND SHARE CASE.

Wellington, Oct. 22. The case of Krull and another against Studholme and others was heard in the Court of Appeal to-day, before Judges Williams, Denniston, and Conoliy, The plaintiffs are the trustees of the marriage settlement of the late W. B. Rhodes, and the defendants are the trustees of his will and his daughter, Mrs E. Moorhouse. A special case was stated in the Supreme Court, and removed into the Court of Appeal to obtain the opinion of the Court on certain questions arising in consequence of the trustees of the marriage settlement having been called on to pay calls on 570 shares in the Bank of New Zealand, which form part of the property comprised in the settlement. The marriage settlement was executed in 1869, and in 1871 Rhodes executed a deed of indemnity, covenanting to indemnify the trustees against any liability on the shares, and giving them a charge on his Heaton Park estate. The Court now decided that Krull, one of the present trustees of the settlement, who is also the original trustee,is entitled to an indemnity under this deed in respect of calls from the general estate of the testator as well as the Heaton Park estate, that the property comprised in the marriage settlement is primarily liable for the calls and not entitled to have them made good out of the general estate, that the calls are payable out of capital and not income, that the case of the insufficiency of the marriage settlement property the general estate could bs liable in the hist instance and then the Heaton Raft estate, and that the' trustees of the will should be authorised by the Court to pay tfyo calls out of the general estate, taking a charge oyer the marriage settlement property so as to avoid a forced sale of the property comprised in the marriage settlement. Mr Bell appeared for the trustees of the marriage settlement, Mr HadfieM for the trustees of the will, and Mr Baldwin for Mrs E. Moorhoqse.