A MATTER OF CONCESSIONS.

Gisborne Times, Volume XXX, Issue 3511, 30 April 1912, Page 7

A MATTER OF CONCESSIONS.

CISBORNE BUSINESS MAN IN THE APPEAL COURT. AN INTERESTING CASE.

[PEE PRESS ASSOCIATION.]

WELLINGTON,. April 29. The Appeal Court to-day took the hearing of the appeal case Chambers v. Clayton and another.

This is an appeal from the judgment of Mr Justice Chapman, given in an action tried at- Gisborne in March, 1911, and delivered on June 30, 1911. The action was by William Knox Chambers and other shareholders of the East Coast Petroleum Co., to have William Lissant Clayton declared to be the holder of £50,000 in shares of the New Zealand Oilfields Ltd., or other consideration received by him for the sale of options, concessions, and other rights in trust for the said Wm. Knox Chambers and for himself, the said AY- L. Clayton, and Geo. Hutchison in equal shares, or, in the alternative, to transfer the said shares to the East Coast Petroleum Co., Ltd., or, in si further alternative, for £50,000 damages or a declaration that the concessions sold be declared the property of the East Coast Petroleum Co., Ltd. Plaintiff alleged that' by a Memorandum of Agreement dated June 10, 1906, between AY. K. Chambers, AA r . L. Clayton and Geo. Hutchison and H. J. Finn, all concessions for petrol, cum, etc., obtained' in the names of any of the undersigned wore to be held jointly in trust for the four undersigned in proportion to the funds advanced.

Mr Finn subsequently wit lid row, and it was contended by the defendant, the present appellant, that after his withdrawal -on January 23, 1907, it was agreed that future concessions were to be the property of the person acquiring them. Mr Clayton acquired other concessions. A company called the East Coast Petroleum Co., Ltd., was formed to realise upon the concessions held bv the parties to the Memorandum of June 10, 3906, but attempts to do so were unsuccessful.. and tins company is mow in liquidationMr Clayton subsequently sold all the options, including those claimed to be his as acquired since June 23, 1907, to the N.Z. Oilfields, Ltd., receiving £50,000 in, shares. He claimcd that of this amount only £9OOO or shares is the value of the options ■which is held by the East Coast Petroleum Co. _ The main question is whether tno memorandum of Juno 10, 1906, was ever rescinded, and whether < it was ever agreed that the concessions obtained by him after June 23, 190 1, belong to Mr Clayton personally, or to the Company. , Mr Justice Chapman held that the Memorandum had not been shown to be set aside and his judgment followed that conclusion. ; Sir J. Findlay, K.C., and Mr A. KMeek appear for the appel ant Clacton, Mr C. P. Skervett, K.C., and Mr AB- Mori.son appear for the respondent, Chambers; ami Mr Leo Hutchison, liquidator of the East Coast Petroleum Co., Ltd., appeals in person. „ . , , Sir John Findlay had not finished his opening when the Court adjoin lied.