AN OLD CLAIM.

Star (Christchurch), Issue 17220, 11 December 1923, Page 8

AN OLD CLAIM.

LARGE SUM INVOLVED. AUSTRALIA GRANTED A RE-HEARING. By Telegraj h—Press Association—Copyright Australian and N.Z. Cable Association. (Received December 11. 125 p.m.) WASHINGTON, December 10. Tho Commonwealth of Australia won an important decision in a suit arising out of the wooden ship contract, when fno Supreme Court granted the Commonwealth Government a writ certiorari permitting a re-hearing beforo the highest tribunal. This case, which has run the gamut of the inferior Courts, is several jears old, and is extremely overgrown with legal details, but- the issue in the simplest form is as follows. The Patterson Macdonald Shipping Company, which was building wooden ships for tho Commonwealth, became bankrupt before completing its contacts and a special master in bankruptcy was appointed. The Commonwealth advanced certain claims against tho company for ships not completed and for the undertaking not being fulfilled, while tho company presented opposing claims against the Commonwealth. These conflicting claims were taken before a Board of Arbitrators, who decided that the Commonwealth’s just claims amounted approximately to 0,375,000 dollars and the company’s to 9,688,0i)0. Tho Commonwealth brought action seeking to set aside the arbitrators’ award, but tho Court refused the Commonwealth’s petition, and the Commonwealth appealed to a higher Court, but again without success. The Commonwealth finally appealed to the United States Supreme Court for a writ certiorari, stressing the point that as a sovereign friendly Power, Australia was justified in asking for a rehearing of the entire case. The Supreme Court acced-'d to this request and it is now expected that several months will elapse before the matter will come on for final issue. Another interesting feature is that the company attempted to secure a verdict in several Courts, making tho difference between tho claims, namely, 313,000 dollars, stand as an enforceable judgment in the company's favour, but it did not succeed in this.