DISTRICT COURT.

Timaru Herald, Volume XLIII, Issue 3576, 17 March 1886, Page 3

DISTRICT COURT.

TIMARTT— Tuesday, Maech 16rn, 188 G. (Bofore Ilia Honor Judgo Ward.) IV BANKBTJPTCr. In re Alexander Muir Allen. Mr H. L. Forster applied lor an order of — Granted. In -c James Quinlan, a bankrupt. Mr' Lynch asked Hia Honor to fix a date for the bankrupt's discharge. His Honor set it down for the first fitting m May. In re John Wright. . Mr Tosswill applied for an order declaring the bankruptcy closed, and for a date to be fixed for an order of discharge. His Honor fixed the next Court day as the date. In re James Macdonald. Mr Knabley for the Deputy Assignee, aad Mr White for the debtor. Mr Knubley called Henry Ford, who stated ho was stock agent and auctioneer for Miles, Archer and Co. In March last ho sold sheep of the value of about £360 to Macdonald. The arrangement was by an approved bill for three months. A day or two before it came due Macdonald cam? to him and said the stock had deteriorated and if the bill was not renewed ho would' hava to sell them. It was renewed. He had had several previous transactions before with him. He did not know what becamo of the sheep. They had never been paid for to his knowledge. His Honor asked why the witness had been called, and Mr Knubley replied to prove fraud through Macdonald's selling the sheep before they were paid for. Mr White said the examination, had bean kept hanging over the bankrupt's bead since November last just for this witness. Hia Honor : No ; but because ho kept no accounts. Mr Knubley said ho would oppose Macdonald'u discharge, on tha ground that he had kept ne books. His Honor then declared the examination closed, at the same time pointing out it appeared the sheep had been disposed of m the ordinary way of trade. CIVIL CASE 3. M, de H. Duval t. the Royal Flouring

Mills Company— Claim £62 10s, for services rendered as an architect. Mr M. J. Lynch appeared for the plaintiff, and Mr J. W. White for the defendants. After Mr Lynch had stated his case, His Honor remarked that if Mr Lynch could show the action of the Managing Director •was binding on the Company, there might be something m the case. Mr Lynch hoped to be able to do bo, and called Jamea McGHashan, who stated that up to the 29th April he was manager for Bruce and Co., otherwise known aa the Boyal Flourmg Mills. He gave instructions to Duval to prepare plans for a new grain store. He asked him to looi over the old one and give a sketch plan, pointing out what it was proposed to do. Duval went all over the buildings. He showed Duval the area of ground it was proposed to build upon. Subsequently Duval sent m a large plan. Witness saw him at a meeting of Directors, when he gave them an idea of the cost, but nothing was done. Some conversation took place later on at the same meeting with Duval. At the time witness first Baw him, the old building was m a very bad state and leaking. He had mentioned the matter to the other Directors. He was recommended by Meikle, ono of the Directors, to employ Duval. The Company were m need of storage. He resigned on April 29th, the day on which the plans were discussed. Jackson was, at the aamo meeting, appointed Chairman m his etead. He bold Duval afterwards that part of the building would be gone on with. He] did not know how much of it. To Mr White ; He met Duval m the street m the first instance. He told him ho wished him to come to the mill, and that it was desired to complete the present store j also that the Directors might go on with part but not probably the whole. He would recommend one part, which he believed wasl absolutely necessary. He showed Duval all over the premises. It was then he asked for a sketch plan to be prepared to lay before the Directors, and also an idea of what the alterations would cost. Ho requested that the plans should be ready by the next meeting of tho Board of Directors. He further told Duval he could mako no agreement, but he had no doubt if the Directors went on with the job he (Duyal) would be likely to get employed. The plan prepared by Duval was brought before the Directors. It was more elaborate than was anticipated He gave an idea of the cost to the Directors. Duval's building had never been erected. Ho had no authority from the Directors to employ Duval, but he considered as Managing Director he had a right to act as ho had done. Ho had spoken to several Directors previously about the improvements being required, and they agreed with him. He told the Directors before Duval attended tho meeting that until they decided to carry out his plans nothing would be done. The only power given him by his fellow Directors was to ascertain what the building would cost. To Mr Lynch : He did not remember Duval showing him plans to which ho objected. He told Duval to wait till the Directors met. M. Do H. Duval, the plaintiff, stated he met McGlashan on tho Breakwater, and was asked to go to the Mill. Mr White eaid ho must object to any evidence of a conversation between Duval and McQ-lashan as it had been disproved m crocs-examination that the latter had any authority to act on his own responsibility. His duty was to attend solely to the commercial operations of the Company. Any special power must be delegated by resolution not by word of mouth. His Honor thought that m any case a majority of Directors must give the authority. Mr Lynch argued that McGlnshan believed he had full authority to act, which was borne out by the minute-book (produced) wherein his statement of what hud takon place between himself and Duvul ns "Managing Director " was recorded and confirmed. His Honor held Mr White's objection good. Mr Whito said tho next point ho would raise was that the Directors had never ratified McGloshan's action m regard to obtaining plane. Mr Lynch said MeGlashan had held himself out as possessing all authority, and that affected the plaintiff. The woTk was legitimately done. It was not tho plaintiff's duty to enquire into McGlashan'g authority. His Honor Baid it cortainly was, or otherwise he should make McGlashan personally liable. In regard to the ratification question, Mr Whito argued that according to McGloshan's own words, unless the Directors decided to go on with the building, nothing was to be paid for. From first to last Duval had made the skptch plan on tho speculation that the work would be parried out, and that if this were not done, ho undfiiatpod he was not to get anything. The Plaintiff continued: MoGlaaban m Morris' presenco said he had instructed him to prepare plans and lay them before the Board. He (Duval) explained them to the Board. Jackson, as one of the Directors, asked him what tho cost would be, and ho repb'ed about £2000. Jackson Baid he did not think he /could build tho store for that. Witness repjifid 'ho coujd ; as hp had taken out the quantities car.efuljy. ' Hp n£x£ found his plans m Uio o9»ce of Mopdy, ono of tho Directors of the Company. TliU was three or four days afterwards. He wanted them par. ticularly to completo them. Part of the plan* of the new store now m course of erection jyero exactly similar to his own. To Mr Whites : Hp b,ad already been non»uited m the Magistrate's Cou|.-t. He had »leo withdrawn on Action against tbo Cbair r man, Mr Jackson, Hp had allowed the matter to rest m abeyance so long because ono of the Directors (Morri.) had told him jf he did not go to law, and the work was carried on, it would be all right. Mr Whito submitted thero wa3 :io proof whatever of the Directors having ratified McGlashan's action. JTorths defence, John Jackson, st?te4 ho was Chairman of Directors of tho Compapy. Bp was present at the meeting on April 29th. McQrlaghan wa3 then Chairman, and told them ho had asked the plaintiff to prepare ft sketch plan, and there would be no cost unless tho building was gone on with. He also stated he had instructed Duval on his own responsibility. The first ho heard of the matter was on Duval coming to his office before the meeting and asking him to go with him to the Mill, and see what he proposed to do. At the Directors meeting Duval produced a plan and figures were gone into into. He was under the impression no chargo would bo mado unless the building was gono on with. There was only onp plan. Moody took it away to return it A coiitra.ot had been now let for the store. ' Tho architects w«rp Wpsf and Barber. The Directors had made no use of IJuval's. plan. To Mr Lynch ; Ho understood McGlashan had employed plaintiff entirely on his own responsibility. It was no fault of Daval's plans that tho work was not gono on with. The present contract was over £2000, Tho Company had made more money since plaintiff prepared his plans. ' Jjaao Ipuis Morris, a Director, stated that he never g*vo authority to McGlashan to employ Duval, Th/» flrtf he heard of it was from McGlashan. That gentleman distinctly told the Directors he had asked Duv^l on hja own responsibility to prepare a skptch plan, and that there would bo no expense attached unless it was carried out. Ho had certainly subsequently told Duval he would eea he got a few pounds to save trouble m going into Court, but ho Baid nothing about the buildTo Mr tjnch ; Ho had said, as an individual, ho would still act on Duvnl's plans. This wae all the evidenoo for the defence, and Hie Honor gave judgment tof the defendants with costs. Tho Court then adjourned till April 3rd.