鹭
+
THE CHINA MAIL, JUNE 6, 1941.
Puisne
Judge
On
Guarantee System
WRITTEN JUDGMENT was given by the STUDENT Puisne Judge at the Summary Court this
morning in an action brought by the "Kwok ON GRAVE Wah-po," represented by Mr. M. W. Lo, against the Sun Hing Printing Press and CHARGE
Chan Kim-tong, represented by Mr. C. A. S. Russ, on a guarantee signed by defendants in favour of plaintiffs.
Judgment was given for the course of any transaction in which he plaintiffs for the amount claimed is employed on his principal's behalf receives notice or acquires knowledge with costs.
Mr. Justice Cressall said:---
A 20-year-old student, Cheng Chung-pong, re- siding at No. 78, Morrison Hill Road, was charged | before Mr. H. G. Sheldon,
of any fact material to such transa K.C.,
tion under such circumstances that it is his duty to communicate 12 to the by This is on action brought
principal, the principal is precluded cas the plaintiff's against the defen-regards the persons who are parties to dants un a guarantee signed by such transaction) from peking them in favour of the plaintiffs, his oven ignorance of such fact and is The circumstances which gave taken to have received notice of
from the agent at the time when he tise to the action are as follow.
at the Central Magistracy this morning, with harbouring a 17- year-old girl, Miss Law Tsoi-chu, without the
should have received it. if the agent consent of her father, Mr. The defendants as surely gave a boni had performed his duty with due dili Law Lai-chuen, a
J1
1E1
Say
well- so far as the reta-known Hong Kong mer-
gence The argument, if I may these, is a novel one This tionship of a guarantor vis a vis a prine
to the plaintiffs guaranteeing the hon
and integrity of She onl plantiffs' employ * itals of Shroff was to collect debat m from Comers who had advertisedd 103 plantiffs' new spaper. ne d
cus.cipal concerned, but in any event chant.
Than
B
before it can be applied in this case I Mr. M. A. da Silva is appear- would have to accept the shroff's eving for the prosecution, assisted by COMUNE Of several months he embezzler, dence that he told the cashier about his inspector G W. Moreton, the
$ 2211 of $210 21
Fe was an anal daks Pomivicted for the offence atud no
recover
the
defendants
plaints seek ter ateresant amant from the under the terms of the guarantee
The defence cuntend that the SALE PEA Interest to be discharged from la Laslay <EL Ewe Pronds
that Far plaintiffs weder aware of the dishonest Conduct of the shroff, but never theleas Cetained b in the service without holifsing the guarantor
all th CLARA WH the result that fur. ther defaleationis took place and that they were Ruilty of Taches maİNA anneta 05 Thes were grossly negligent in these supervision of the shroff's work and that had they exercised due cure
the commission of the arts guaranteed
agalost would not have occurred.
System Of Guarantees
As I understand the system of quarantees is frequently resorted to by the business community it may be as well it, at the outset, and before dealing with the evidence, reference is made to the legal principles which govern the liability of fidelity quar. antors.
Put shortly.
contract of guarantee
24
is a contract to perform the promise or discharge the liability of a third person in ense of His default It is contract of an accessory tatare since it is always ancillary and subsicliary to konie other Contract
I' Habibty
which it is framed, and without the
support of which it must fail.
10
dishonesty MOTORE months before the was actually Informed of il
S.C.A., while Mr. W. C. Hung is manager Iat I do not accept his evidence o
Hor the defence,
The case this point, for while I am satisfied that
adjourned WHS the caster was negligent in his duties | Friday, June 13. I am not prepared to believe the wond Defendant was released 011
fa convicted embezzler gams that $5.000 bail.
of the casher that the fraud as known to the cashier many months before it was exposed to the manager
The Finding
I have therefore reached the enelp- sion that notwithstanding the fact that The employer through his cushier falled to use all the means 11 tus puwer t Kund agtalast the dishonesty of the shroff, the guarantur is, nevertheless. Hable in law to make good the defalca
1lons of his surety.
There will therefore be Judgment for the plaintiffs for the amount viained with costs.
I
ALLEGED ROBBERY FROM JAPANESE
Wong Kwong, 25, described as Caterer, was charged before Mr. H. G. Sheldon, K... at the Central Magistracy this morning. with robbery at No. 38, Hennessy Road, ground floor, on June 1.
It was alleged that accused, with
others not in custody, robbed
a Japanese merchant.
The execution of this judgment under | Kanichiro Sakuma, of $545 in section 37 of the Code of Civil Proce dure, su far as the imprisonment of the judgment debtor is concerned, is stayed with liberly to the judgment creditur to apply.
LOCKED IN 10 YEARS
money and jewellery, and $40 and $100 in Chinese currency, from Li Cheung, at No. 38, Hen- nessy Road.
Accused was remanded for 72 hours for further enquiries.
Detective Sergeant V. Morrison is in charge of the case.
SECRET CODE
Pleading guilty to possession of a book containing a secret
bank-note printer of the Chung
In other words the position is thal Miss Alwine Hinden-code, Tsin Chan-wing. 27,
the surety or guarantor who guarantees
makes himself liable for any misdeed told police at
committed by him unless there has
Kowloon this morning.
the honesty of the person employ burger, aged thirty-two, wah Book Company, was fined Oakland, $10 by Mr. D. J. N. Anderson at
her fos- and his two! sons had held her prison-i
on the part of the employer an California, that
ter-father
રે વાઈ COMVance or gross negligence which would amount to a wilful shut- ting of the eyes to the fraud.
It is contended by the solicitor for er in their home for ten,
the defendants that there was gross
negligence on the part of the cashier years.
of the plaintif firm inasmuch as he
falled to exercise ordinary supervision During that period she had over the shroff. He further contends been outside the house only once. that the cashier knew what was going but wilfully concealed the matter from the manager of the firm, and on these grounds he submits that it would be inequitable to make his client liable.
A Princely Salary
was
She had not seen another woman, had had only one set of new clothes, and
given regular beatings.
Recently Miss Hindenburger taken on а tour of the streets and stores, was amazed at the Nuw it clear from the evidence change in the
19
world since she that there was very little control ex- was made a prisoner in 1931. ercised over this particular shroff who was paid the princely salary of 320 per mensem in a job in which he was called upon to handle very large sums of money.
"No Clothes"
Her story was Otto de Bourbon
revealed when Hapsburg and his -gons, Otto, forty-one, and George, thirty-nine, were evicted for not paying ten years' rent, totalling £1,300.
Thus it is not surprising that the temptation proved too great for him. The law, however, is very strict on the liability of those people who take it upon themselves · to guarantee the honesty of others and it is well esta- blished that a guarantor is not entitled to be relieved from his obligations merely because the employer fails to
all the means
"We had no clothes for her, so in his power to guard against the consequences of dis naturally we thought she should honesty. The rule at law as in equity not go out."
Use
Otto Hapsburg, who claims 10 be a member of the Austrian Royal Family, said: "It's true we kept Alwine indoors,
is the same, namely, there must be Miss Hindenburger sald her proof of some positive act done by the mother died in 1914 and she was employer to the prejudice of the sure-adopted two years later by the
ty and he must be guilty of such gross Hapsburgs.
negligence in the conduct of his busi- "Ten years ago they forbade me
ness as would imply, a conniyance with
the defaulter amounting to fraud (Black to go out or
V. The Ottoman : Bank · ·8; L.T:763). the window."
Where, however, the employer has actual knowledge of the dishonest con duct but nevertheless retains him in his employ, the surety is entitled to be discharged from” hls, liability unless he was informed of the position; so as to enable him to decide whether he re-. quired the employment, to be termin ated or not (Enright v. Falrey (1807). 4 L.R. 1.R.307), ZBOR
even to look from
NO PERMIT FOR - EXPORT
7) Charged with exporting 120 bales of cloth without a permit,
The solicitor for the defendants con-To-Man 32, shop foki of 14 fends that the employer must be deem- ed to have had notice of the default at Queen's Road, was fined $30, the time Ufe cashier was cogelsant of or one months imprisonment, by it Hebases his argument on the Mr G. T. Lowry at the Central principle that where an agent in the Magistracy this morning..