SHELTERING BEHIND THE LAW

Wanganui Chronicle, Volume 73, Issue 413, 3 November 1930, Page 6

SHELTERING BEHIND THE LAW

NON-PAYMENT FOR GOODS COURT JSAYfS DEBTS TO BE PAID Several accounts connected with the conduct of the Rendezvous, n AVanganui restaurant, were the basis of a hearing in the Magistrate’s Court on Saturday. Mr J. 11. Salmon, who was on the bench, remarked that it was a disgraceful thing that a tradesman, acting in good faith, should be defeated in that way. Charles Edward Stewart (Mr J. Blake) proceeded against John Craig AA right (Mr Keesing), managing director of Rendezvous Limited, for £3B 15s for bread supplied to the restaurant. Evidence was given by defendant that, he held 495 shares in the company an! his wife five. A meeting of the shareholders was hold, and he was appointed managing director. The defence was that defendant had assigned his estate, and the claim should have been against the company, and not against defendant personally. Mr Keesing said the object of forming the company was to protect tho man. The business was tho asset that ought to meet tho claims. Frank Bristol (Mr Blake) claimed for £26 9s 6d for meat supplied, and the Aerated AVater Company (Mr Withers) also claimed an amount for goods supplied. The Magistrate said that the first was a rase of a tradesman who, in good faith, supplied goods to the extent of £3B. It was admitted that it was with Mr AVright’s knowledge and approval. Any profits that might accrue from that business went t<» Mr AVright in the proportion of 495 to 5. Now he was seeking to shield himself behind a technicality of company law. Fortunately he had power to deal with the matter under the Equity and Good Conscience Clause. He thought it would bo disgraceful if a tradesman were defeated in this way.

Judgment was given for the plaintiff in each case and leave was given to issue immediate execution.