PRIVY COUNCIL CASE

Wanganui Chronicle, Volume 79, Issue 284, 4 December 1935, Page 7

PRIVY COUNCIL CASE

PUBLIC TRUSTEE v. LYON JUDGMENT RESERVED ; . Received Dec. 3, 5.5 p.m. LONDON, Dec. 2. The Privy Council has reserved judgment in the case the Public Trustee of New Zealand versus Lyon. In June, 1934, the Public Trustee, as administrator of the estate of the late George Douglas Lyon, farmer, of Murchison, was granted leave to appeal to the Privy Council on a question concerning a life insurance policy taken out by the deceased. The case originally was presented in an originating summons issued by the Public Trustee to determine whether or not the provisions of the Life Assurance Act, which exempted the proceeds of a policy or policies of insurance up to £2OOO from payment of debts, applied to the proceeds of a policy taken out by Lyon in Scotland before he came to New Zealand. Mr Justice Ostler was asked in the Supreme Court to decide whether the widow, Sarah Chaulotte Lyon, should receive tlie proceeds, or whether, if they were not exempt, they should be made available for the •creditors. The Judge held that the proceeds of the policy in question were not exempt, and that the New Zealand legislation did not cover them. This decision was reversed by the Court of Appeal, and application was then made for leave to appeal to the Privy Council.