SUPREME COURT.

Star (Christchurch), Issue 6033, 15 September 1887, Page 3

SUPREME COURT.

In Banco.

THIS DAY,

(Before His Honor Mr Jußtice Johnston.)

IN RE M'KEOWN,

This was an application by Mr Weston, who appeared for the District Land Registrar, for the delivery of a memorandum of mortage to be cancelled on the ground that it had been obtained by fraud. The holder of the mortgage was William M'Keown, for whom Mr Joynt appeared. The transfer had purported to be signed by G. L. Meason and F. V. Lysaghfc, trustees of an estate, and the latter gentleman had proved that his signature was a forgery. The former was partner of Thomas Hall, and had stated in his affidavit that he did not remember signing the document, but that if he had, it was under the persuasion of his partner.

Mr Weston submitted that a forgery having been proved, the mortgage was void, and should be delivered up for cancellation. He cited Franklin v. Ind and others, and in the matter of the caveat of K. Bosquet, 17, South Australian L.R., 133.

Mr Joynt submitted that the fraud must be the fraud of the person obtaining the title, in order that the document might be vitiated. His client was a purchaser for value.

His Honor said the question was who of two innocent persons was to suffer— the Trustees or the mortgagee. Mr Joynt submitted that the equities were in favour of his client, as the Trustees had permitted their agent to commit the fraud. M'Keown had no cause for suspicion that there was anything wrong. He cited Cullen v. TJioriipson, 5 Victorian L.K. Equity, 147 ; Pilcher v. Rawlings, L.R., 2 Chanc. Appeals, 259 ; Jones v. Powells, 3, M. an_ X. ; Young v. Young, LR. 3, Equity 801, also the cases cited by the other side.

Mr Weston replied: M'Keown in his evidence had said that he depended on Hall, to whom, therefore, he had given the opportunity of forging Lyeaght's signature. Case cited Swarm v. North British Australasian Company, 13 L.R., 273. It had not been proved that Hall committed the forgery. Learned counsel cited a number of cases.

Hia Honor reserved his decision,