APPEAL COURT.

Temuka Leader, Issue 3507, 19 October 1899, Page 3

APPEAL COURT.

Wellington, October 16. Tho cas-i of Common, oheltou & Co. v. Tinnru Milling Co. is being argued in tho Ciurt of Appeal to-day. This is r.n appeal from a uucis'.on of Judge Deniustoun on questions of law raisoci before the tri>l of an action brought by the Tiu.aru MilUug Co. agunst Common, Shell on &. Co., of Gishorne, merchants, claiming .£2430 dnmajjes for alleged broach of contract, The contract ttlleged is mie by Common, Sheltou .v Co. to take 600 tons of flour from the Milhng Company at £ll per '.on during the year. The appoilaut comp.iny, however, contends that tho contract (if any) was merely to take such fiour as it might require during the year, the estimated quantity being about'6oo tons. A question arises upon the constru tion of the correspondence which took place between the two companies. The appellant company further sets up that if tho contract was as alleged by the Mi ding Co., then it was ultra vires of the directors of the appellant company, as being in excess of tho amount for which the directors had power to contract under the Articles of Association. Jiidge Denniston held that the contract set up by the Milling Company was supported by correspondence, and the coippany was not affected by the limitation of the directors' powers in the appellant company's Articles of Association. He therefore answered the questions of law raised in favor of the Milling Company. Mr Cooper and Mr DeLautour appear in support of the appeal, Mr Gully and Mr Kiniieraey for respondent. The Case is being heard by the Chief Justice and Judges Williams, Connolly;'and Edwards. ' ? ' •' ' ' ' October 17. In the case Common Shelton and Co., v. the Timaru Milling Company judgment was reserved.