Penberthy v Dymock and John Duthie and Company Limited - [1954] NZLR 130

Arbitration — Sale of Company Shares — Agreement between Shareholder and Company providing for Company to have Pre-emptive Right to acquire Shares at Fair Value — Failing Agreement by Parties as to Fair Value, Auditors of Company to determine Any Dispute — Such Auditors Arbitrators and Not Valuers — Auditors, as Arbitrators, not liable in Respect of Want of Skill or Care — No Misconduct Short of Bad Faith or Fraud rendering them Liable for Damages at Suit of Dissatisfied Shareholder — Allegation of wilfully or negligently discharging Duty under Parties' Agreement — No Cause of Action.

Practice — Striking out Pleadings and Proceedings — Jurisdiction — Inherent Jurisdiction of Supreme Court — Statement of Claim not disclosing Cause of Action against First Defendants — Order dismissing them from Action — Order as to Costs — Effect of Delay in filing Summons to strike out Parties and Pleadings.