PROTECTING LIEN HOLDERS

Waikato Times, Volume 96, Issue 15361, 9 October 1923, Page 4

PROTECTING LIEN HOLDERS

DEFECTS OF THE AOT. NEED FOR AMENDMENTS. Last night was largely a legal night at the Hamilton Chamber of Commerce, for there were three lawyers , present, who each discoursed upon the defects of some statute. Mr Ham. mond spoke for a time on the anomalies of the Chattels Transfer Act, /A while Mr Seymour pulled to pieces tho 1, y Bankruptcy Act, which he showed to ~""w be badly in need of reform. The most important measure dealt with was the "Wages' Protection and Contractors' Liens Act," which Mr L. Tompkins said was' introduced to ensure that the money paid by an owner to a builder was applied in paying those who had done work on the building. As tho Act stood, however, this did not take place in the majority of the cases where the builder was in financial difficulties. To overcome this difficulty he suggested that owners should be required to notify sub-contractors of every progress payment made. Ho also said that there were many anomalies in the procedure laid down by the Act, and in particular suggested that all claims for lien should be lodged in the Court nearest where the con. tract was done. With reference to tho provision that notice of lien must be given within 30 days of the completion of the sub-contract, the speaker said that this unduly penalised the early sub-contractor in a building contract, and that notice of lien should be allowed to bo given at any time beforethe completion of the whole contract. } This would put all sub-contractors on the same footing. The president said the matters vitally affected the business com. munity, as constantly they were en- ' countering instances of firms' being let down over sub-contracts.

Mr J. E. Tidd said experience of the defects in the Act was felt years ago, when the bush carpenters, after making practically full draws, did what was known as the "Pacific slope," packing up and getting out by the first steamer, leaving everybody they owed money to in the lurch.