THE OATS WARRANTS.

Star (Christchurch), Issue 6137, 25 March 1898, Page 3

THE OATS WARRANTS.

ACTION AGAINST THE COLONIAI. BANK. IHE JUDGES DECISION. [Per Press Association.. DUNEDIN, March 20. In the case of Brooks and Connell v. the Colonial Bank, Judge Williams said— lf the instruments which the bank held were wan-ants within the ordinary business cense of that term, as used at the Bluff in connection with grain stored for shipment, the bank was justified in calling the instruments " warrants," unlesn it ought to have known thatthe plaintiffs would necessarily construe the term in a different sense, and that is not, in .my opinion, established. I think, therefore, that there is no estoppel. In Council's case,' it is alleged that the arrangement between Connell and the Association was made for the advantage of the bank, and upon the understanding that the bank, as agent for Connell, would protect their interests. This allegation is not made out. The arrangement was made in 1893, before the correspondence with Birch took place. That correspondence, in my opinion, does not show that the bank undertook any duty to Connell and Co.- which would place them under auy greater liability to that firm in respect to statements made when the bills were tendered for acceptance, than they would have been under to any other acceptor. The result, therefore, is that in each case no breach of duty on the part of the bank to the plaintiffs has been established in respect to any contract or representation, and that, therefore, up to the time the bank knew that the oats in store were insufficient to satisfy their own warrant and those of the respective plaintiffs, the plaintiffs had no cause of action against the bank. It will, therefore, be the decree in each case that the bank is not liable in respect of any contract or representation alleged in the statement of claim, and that so far the bank is entitled to judgment. It will be declared, however, that the oats in store at the date of Davidson's report in August, 1895, were liab'e to satisfy the warrants held by the respective plaintiffs and by the bank, such warrants to take priority according to their respective dates. His Honor also declared that the bank was liable to account for all moneys received after the above date in respect of the proceeds of sale of. such oats, and that such proceeds are applicable to satisfy the ■warrants, in the same manner as the oats themselves have been declared to be .applicable. All questions of costs to be reserved, with liberty to apply.