Conspiracy Alleged.

Star (Christchurch), Issue 18623, 27 November 1928, Page 10

Conspiracy Alleged.

UNUSUAL FEATURES IN CIVIL ACTION

AFFAIRS OF G. WILCOX AGAIN DISCUSSED.

A case in which conspiracy was alleged, and which arose out of the affairs of George Wilcox, of Ashburton, motor dealer, who has been sentenced to imprisonment for obtaining credit while he was an undischarged bankrupt, was heard to-day by Mr Justice Adams.

Plaintiff was the Dominion Motors, with which Wilcox had large transactions. Defendants were John Fleming, sheepfarmer, Cheviot, and his wife, Sarah Jane Fleming. The Dominion Motors claimed £2OOO damages. The statement of claim set out that in September, 1927, Wilcox was indebted to the Dominion Motors for about £4OOO, and is still indebted to it for £4296. In October, 1927, Wilcox promised to obtain the guarantee of his father-in-law against the debt. He returned to the Dominion Motors two guarantee forms, signed “S. J. Fleming,” by Mrs Fleming, and represented that the signature was his father-in-law’s./ Mr Nicholls, solicitor for the Dominion Motors, on account of doubts as to the interpretation of the guarantees, prepared a fresh guarantee, and sent it to “S. J. Fleming, Esq.” Wilcox returned it to the Dominion Motors, signed in the same way by Mrs Fleming. It was alleged in the statement of claim that Mr and Mrs Fleming conspired with Wilcox to defraud the Dominion Motors by representing that the guarantee was signed by Fleming. Mrs Fleming, it was alleged, was not a substantial person, and could not have paid th'e amount of the guarantee. The Dominion Motors had supplied goods tc Wilcox, and had forborne to compel payment of the amount from time to time due by him, and had suffered damage to the extent of £2OOO. As an alternative cause of action, the Dominion Motors claimed that Fleming was estopped from denying that he executed the guarantee, and the Dominion Motors claimed £2OOO from him. For a further cause of action, the same sum was claimed from Mrs Fleming. The Defence. * Fleming denied any conspiracy to defraud whatever. In his defence, he stated that he knew generally that Wilcox had dealings with the Dominion Motors, but did not know details. Wilcox, he stated, went to Fleming’s home and asked him to sign the guarantee. Fleming refused to consider the proposal. He heard nothing further about the guarantee until Mrs Fleming received a letter from the Dominion Motors, dated May 2, 1928. He then learned for the first time that his wife had signed some document for Wilcox and. the Dominion Motors. Mrs Fleming denied that she knew that the Dominion Motors required security from Wilcox, of that Wilcox promised to obtain her husband’s signature to any guarantee. She had signed the guarantee forms, but denied that Wilcox represented any document to be the guarantee of her husband. She denied that she or her husband conspired with Wilcox by representing that the guarantee w r as signed by her husband. She denied that, in reliance upon any representation whatever, the Dominion Motors supplied goods to Wilcox. She denied that she agreed to pay any moneys if Wilcox failed to do so. Sir John Findlay, with him Mr Nicholls, apeared for the Dominion Motors, Mr Upham for Fleming, and Mr R. J. Loughnan for Mrs Fleming. Unusual Features. Sir John Findlay said that the evi dence would disclose some rather unusual features. In the first place, Wilcox was married to Miss Fleming only a few days before the first guarantee was given. Wilcox told Mr Gale, manager for the Dominion Motors: “I have the guarantee signed, but I am sorry my father-in-law would not execute it until the £2OOO was reduced to £1000.” Wilcox was asked to request Fleming to initial an alteration from £2OOO to £IOOO. The Dominion Motors and the manager were assured, and satisfied, that the guarantees were being executed by Fleming. Mr Nicholls sent a letter addressed “S. J. Fleming. Esquire, Chev iot.” It began, “Dear Sir,” dealt with the guarantees, and stated: “Please sign same where your name is pencilled, before witnesses.” The letter was opened by Mrs Fleming, and read by her. When Mr Gale saw Fleming, Fleming denied that he had signed the guarantees. Wilcox took the guarantee forms. One of them was witnessed by his wife. Fleming was discharged from the allegations of conspiracy. They now were confined to alleged conspiracy between Wilcox and Mrs Fleming.

Joseph H. Gale, Chrstchurch. manager for Dominion Motors, said that Wilcox said that his father-in-law had decided to help him financially, and to give him a further start. Wilcox said that the alteration on one of the guarantees had been initialled by his father-in-law. Witness and the general manager thoroughly believed that the guarantees were signed by Fleming all along, until Mr Loughnan told witness that they had been under a misapprehension, and that the guarantees were signed by Mrs Fleming. Wilcox continually stated that his father-in-law was behind him. To Mr Upham: Wilcox’s account, since the guarantee was given, had not largely increased. He always impressed witness with the fact that his father-in-law was doing everything. He was most anxious to keep his father-in-law’s name fresh in the minds of the officers of the Dominion Motors. Knownng the hopeless condition of Wilcox’s affairs after the first guarantee, did you expect any prudent person to guarantee his account without investigating his affairs? —Fleming being his father-in-law. I did. Was not your object in getting the guarantee to retrieve the past?—lt was not. His Honor: Would you have carried ■Wilcox on without the guarantee?—

No, your Honor. He was insolvent? —Yes. Yet you say that the object' of the guarantee was not to make the business safe? —It was to make future supplies safe. When the guarantee came up with S. J Fleming’s signature, did you ask, “Is that John Fleming’s signature?”—No,

sir. You simply assumed that it was John Fleming’s?—Yes. They supplemented it by a statement that it was his signature. Often? —Many times the assertion was made by Wilcox that the guarantee was signed by Fleming. You say, “ Every time he reverted to the guarantee, he said, ‘ This is John Fleming’s signature?’” How often did Wilcox say, “This is his signature”?—

Each time the guarantee was mentioned. You ask me seriously to accept that? Every time the guarantee was mentioned, Wilcox said, “ This is John Fleming’s signature”?—Yes, sir. And he did it many times?—Several times. Each time the guarantee was mentioned. You never disputed the guarantee, did you?—No; but the father-in-law came into the discussion many times. Reginald Leslie B. Poore, accountant to the Dominion Motors, said that there was no doubt that the guarantee was to be signed by Fleming.