Turning to the counter-claim for damages for fraudulent misrepresent tation, Mr. Justice Bennett said that the evidence had satisfied him that It was represented that all the houses on the estate were inspected many times before completion by r for the local author-houses on which the society advanced money were inspected by the society's surveyor before and after completion Mrs. Borders was tóld that she was advanced. on the security of one of Morrell's houses, 95 per cent. of the purchase price, and The house was made from exceptionally good materials put together by excellent workmen.
Mrs. Borders had satisfied him, he said, that on the faith of these misrepresentations she was induced to buy the huse but, in his judgment, the claim for damages for fraud failed because she had not established that the building society was in any way responsible for the representations made.
The Judge said that if the directors of the society knew of these statements after March 3, 1934, he could not understand how they, as honest men, could have lent money to persons purchasing houses from Mor-rel's without making it clear to borrowers that, so far as they were concerned, the statements were untrue.
"Bad Materials"
Mrs. Borders, he said, had proved that the house was badly built of bad materials, but her counter-claim could not succeed because she had failed to prove that the society was responsible for the misrepresentations, She claimed an injunction to restrain the society from entering into transactions of the nature complained of, but, as he had already decided that such transactions were not ultra vires, there was no ground for granting sach an injunction.
The action and counter-claim were both dismissed, with costs.
Mrs. Borders asked for leave to appeal and Mr. Justice Bennett said she had a right of appeal and that leave was unnecessary
Text read from the printed page and cleaned; old type leaves the occasional error.