COURT DECIDES INVOLVED CASE.

Star (Christchurch), Issue 17906, 23 July 1926, Page 6

COURT DECIDES INVOLVED CASE.

JUDGMENT GIVEN FOR THE PLAINTIFF. A case of interest concerning the constitution of a trading concern came before Mr 11. A. Young, S.M., in the Magistrate’s Court yesterday, the problem set him being to decide who is liable for moneys owing by Crown Motors, Christchurch, which went out of business last February. Brabner’s, Ltd., the claimants, sought to recover an amount due for work done, two defendants being cited, the manager for Crosslej's Motors, Wellington, and the Christchurch salesman, it being contended that either the former was responsible for the business, or alternatively that a partnership existed. Ihe action was between Brabners, Ltd., body-builders, and Giffen Murphy, salesman, and J. R. Perry, company manager, Wellington. Mr 1). 11. Hall represented plaintiff company, Mr D. M. Findlay (Wellington) represented Perry, and Mr J. D. Hutchinson appeared for Murphy. 3 he case was continued in the afternoon alter evidence had been taken from Stewart Storey, of Storey and Co., and Eric Bain Rawlings, manager of plaintiff company. Continuing his evidence. Giffen Murphy, one-time salesman for Crosslev Motors, Wellington, who later, on the advice of Perry, came to Christchurch as agent for Crossleys, said that he had drawn an average of £2 10s a week, paying himself by cheque on his own account. The money in some instances came from sales of second-hand cars and some came from Perry. The money he sent was not all used for rent. Mainly the rent was paid from Perry's money. Witness could not ‘say how much was owing to Crosslevs Motors, he thought about £6OO. Mr Findlay: Have you your bank-book?—-No. Where is it?—With the books of Crown Motors.

Where are they?—Where Mr Perry put them. . j Mr Perrv says he has never seen them.—He did not ask to see them. ! Witness said he drew £SB 0s 7d durI ing the time he was with Crown Motors. There was no arrangement about his wages. In Wellington he would not average £5 a week. Witness came to Christchurch as he was looking for an interest in the business when the company was formed. Continuing under cross-examination, witness said that he had said when engaging the showroom from Malings that Perry was providing for the rent. Witness concluded a local contract without reference to Perry. Correspondence was produced by Mr Findlay with the object of showing that Murphy and Radcliffe had the agency. Mr Findlay: Was it wise to say “we” and “our” in youT letters to Perry?— Mr Perry did not want his name or connection to appear. Then it was a fraud?—The whole business was a fraud from the start. And you were a party to the fraud? —Yes. I wish I was never in it. I was the loser. What have you lost?—l’ve lost my reputation. In a letter to Rogers, Ashburton, why did you say you wished Perry was behind Crown Motors?—We were to keep from sub-agents the fact that Perry was in the business. Witness admitted that letters show ed that he was the Crown Motors and not the servant. It was he who suggested that the business should be called “Crown Motors.” Examined by Mr Hutchinson, witness said he had not made the arrangements with Radcliffe as to commission, etc. The advertising contract he entered into was for £l2 only. Sub-agents appointed had no other interest except commission: MURPHY’S REMOVAL TO CHRISTCHURCH. Doris N. Lange, secretary to Crossley Motors, Wellington, said that Murphy, in addition to being a salesman, went through New Zealand to see agents. His average weekly earnings would be less than £5. The first witness heard of any suggestion that Murphy should go to Christchurch was last July. It was known that the < hristchurch agent was unsatisfactory, and Murphy said he wished he had enough money to take it over. Witness had said to Perry that she would be prepared to lend Murphy enough for six months’ rent if she was sure she would not lose it. Perry said he would see she did not lose it, and he told Murphy he could go ahead. Witness told Perry Murphy was not to know she was. lending the money. Murphy was very optimistic about the business, and said he expected to be able to repay in six months. Perry was emphatic that he would not assist beyond six months’ rent. Murphy said he had a friend in Christchurch who would also help, but that friend went to England. Radcliffe came to Perry and said he would like to join Murphy in Christchurch. Witness understood he meant as a partner; he was not then with Crosslev Motors at all. Witness never heard any suggestion that Perry was to be personally interested in Crown Motors. Radcliffe represented the Christchurch agents at a conference of Crosslev agents. The Wellington office had nothing to do with appointing sub-agents in Canterbury or advertising, and neither Murphy nor Radcliffe drew wages from Crosslev Motors. They got behind financially, but were always optimistic. To Mr Hall, witness stated that she paid Perry two sums of £SO, one of £3O and one of £l9. She did not have

receipts from Perry for them. She was not going to get anything by way of interest by making the loan. She had no motive, only the sentiment of establishing Crossleys firmly in Christchurch. She had a verbal guarantee from Perry that she would be repaid. John Robert Perry, managing director in New Zealand of Crosslev Motors, Ltd., gave evidence much on the lines of that of the previous witness. His * agreement was produced, a clause of which forbade him having an interest in any agency. He stated that he had obeyed the stipulation and had never had any interest in any of the Crosslev agencies. He gave Murphv advice and took an interest in the selection of premises because the agency for the Crossley cars would not be given to anyone who did not have suitable premises. JUDGMENT AGAINST BOTH DEFENDANTS. After further evidence, the Magistrate said that he was satisfied a partnership existed and he would give judgment for plaintiff against both defendants, with costs to plaintiff. Mr Findlay made application to appeal on behalf of the defendant Perry and security was fixed at £lO 10s.