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Persons resident abroad lodged claims in a liquidation, and their claims having been rejected by the liquidator they lodged answers in support of their claims. Held ( per Lord Skerrington, Ordinary) that as there were no reasons which would make it inequitable to require the claimants to sist mandataries, they must do so.
Robertson-Durham, C.A., and another, liquidators of Bruce Peebles & Company,
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Limited, in the motion roll moved the Lord Ordinary in the liquidation to ordain Julius Stern and Alexander Watt, claimants in the liquidation, to sist mandataries. Stern and Watt were both resident in Russia and had lodged claims for sums said to be due in respect of obtaining contracts for the company. These claims had been rejected by the liquidators, and the claimants had lodged answers in support of their claims, to which the liquidators had lodged replies. The following authorities were cited on behalf of the liquidators— Ford v. King, June 18, 1844, 6 D. 1163; Howe Machine Co. (Fontaine's case), L.R., 1889, 41 Ch. Div. 118, per North, J., at p. 120; Pretoria. Pieters-burg Railway Company, [1904] 2 Oh. 359, per Buckley, J., at p. 362.
For the claimants the following authorities were referred to— Argo v. Pauline, March 4, 1905, 7 F. 541, 42 S.L.R. 401; Gordon's Trustees v. Forbes, February 27, 1904, 6 F. 455, 41 S.L.R. 346; Town and County Bank, Limited v. Lilienfield, October 27, 1900, 8 S.L.T. 227; North British Railway Company v. White, November 4, 1881, 9 R. 97, 19 S.L.R. 59; Stow's Trustees v. Silvester, November 27, 1900, 8 S.L.T. 253; Vanderhaege, L.R., 1887, 20 QBD 146; Percy & Kelly Nichel, &c. Mining Company, L.R., 1876, 2 Ch. Div. 531.
“A person who merely lodges a claim in a liquidation, sequestration, multiplepoinding, or other process of distribution, does not thereby put himself in the position of a pursuer, or even of a litigant. Assuming, however, that his claim has been rejected or opposed, and that the claimant desires to obtain the decision of the Court upon it, he becomes a litigant, and he is either a pursuer or a defender according to circumstances. Thus a claimant who founds upon a probative writing which his opponent impugns on extrinsic ground is, I think, in the position of a defender. On the other hand, claimants who, as in the present case, are attempting to constitute an illiquid claim, are in the position of pursuers. Although pursuers, however, they are not in precisely the same position as ordinary pursuers, who, as a rule, are entitled to choose their own time and their own tribunal for making good their claim. They may be described as involuntary pursuers, and this consideration, in my opinion, entitles the Court to exercise a wide discretion in the way of dispensing with the necessity for a mandatary. In the present case, however, no special reasons were stated which would make it inequitable or hard to require the claimants to sist a mandatary, whereas the hardship upon the liquidator and creditors is obvious if they have to sue in Russia for recovery of their expenses. Looking to the nature of the claims and to the whole circumstances, I am of opinion that the liquidator's motion should be granted in each of the two cases.”
The Court ordained the claimants to sist mandataries.
Counsel for the Liquidator— Sandeman, K.C.— F. C. Thomson. Agents— Davidson & Syme, W.S.
Counsel for the Claimants— Macmillan— Kirkland. Agents— Norman M. Macpherson, S.S.C., and Boyd, Jameson, & Young, W.S.