DAMAGE TO CAR

Wanganui Chronicle, Volume 75, Issue 270, 15 November 1932, Page 7

DAMAGE TO CAR

LIABILITY REPUDIATED. DECLARATION OF RIGHTS. [ Per Press Association.) WELLINGTON, Nov. 14. A declaration of the rights of the plaintiff under an insurance policy in respect of a nine-seater motor-car* was sought in tho Supreme Court to-day before Mr. Justice MacGregor by the Tourist Motor Co., Ltd., of Hastings, motor vehicle distributors, in an action against the United Insurance Co., Ltd. Aceoring to the statement of claim, the car had been damaged by fire, and tho defendant had repudiated all liability to make good the loss. Tho action hinged upon the cash value of the car at the time of its sale, and whether, as alleged by the defendant, untrue statements had been made. Mr. F. C. Spratt and Mr. L. K. Wilson appeared for the plaintiff, and Mr. H. F. O’Leary, with Mr. W. D. Goodwin. for the defendant. The statement of claim set out that about March 10, 1931, the defendant agreed to insure the plaintiff as owner, Leonard Ralston Wyllie as hirer, and the New Zealand Guarantee Corporation, Ltd., as mortgagee against loss of or damage to a nine-seater motor-car, the maximum amount of the indemnity being £llOO. On October 23, 1931, during the currency of the insurance, the vehicle was damaged by fire. The plaintiff’s interest in the car at the time exceeded £llOO, and the costs of reinstating or of making good the damage to the vehicle exceeded £llOO. The defendant company, when application was made to it by the plaintiff, repudiated all liability and requested the plaintiff to take proceedings to determine, the liability of the defendant under the insurance in respect of the loss or damage. Tho plaintiff applied for: (1) ’ A declaration that the defendant is liable to indemnify tho plaintiff against loss or damage by fire, and generally a declaration of the rights of the plaintiff under the insurance: (2) judgment for such sum, not being more than the interest of the plaintiff, in accordance with tho erms of tho insurance, together with interest at per cent. The defendant in its statement of defence said that the policy was issued subject, to compliance with certain conditions. One of these conditions was that if the policy was obtained through any misrepresentation, suppression, or untrue averment, then the policy should be void. It was alleged that a statement made on behalf of the plaintiff in the proposal, that tho price paid to the plaintiff for the motor-ear covered by the policy wa s £l5OO, was untrue. 'l’he defendant contended that the policy was obtained through representations made on behalf of the plaintiff to the defendant that the cash selling price of thp motor-car was £l5OO, and that the cash deposit paid on the sale was £5OO, both of which representations, it was alleged, wore untrue. It was alleged that the declaration made in support of , the plaintiff's claim under the policy was fraudulent in that it contained a statement that tho cash value of the motor-car at the date of its sale was £l5OO, where as the cash value of the car at that date was to the knowledge of tho plaintiff and of the declarant not I more than £1250. Evidence was then called with a view to showing that a bona fide sale of the 1 motor-car for £l5OO had been made and ' carried through. Fred B. Wyllie, motor driver, New Plymouth, said that th c price, of the < ear was £l5OO and and obligation was I entered into for that amount. He took t possession immediately. His brother i Leonard was nominally the purchaser. < He did not know how the finance was I arranged. John H. Hannay, who effected tho sale, said he sent a memorandum to the Tourist Motor Co. advising that he had I signed Len Wyllie up. Ho gave particulars of how the transaction was fin | anecd. Tho hearing was adjourned till tomorrow.