The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1904-08-12
ARGUMENT
OVER COSTS
In Treasury Suits Over
Insurance Fire
Claims.

Judge Dole, in the United States Dis
trlct Court yesterday afternoon. heard
argument on the question OF costs in
the Treasury cases brought to decide
the distribution of certain fire claim
awards Robertson & Wilder, for the
insurance companies interpleading, had
II few days previously filed disclaim-
ers of all further interest in the a
wards-this following the courts de-
cision against the insurance compa-
MES in the zee Wo Chan suit tried out
as a test. There were twenty-six cases
in which disclaimers were entered.
| w. A. Whiting, for certain of the
Chinese awardees, contended that the
insurance companies should contribute
their full proportion of all the costs.
They had put the holders of awards to
the expense of protecting their inter-
ests in court and been the means of
| tying up the money. 1t would not be
| fair to diminish the funds in court,
which these claimants had fairly won
| judicially, beyond their own proportion
of the costs. The point was also raised
| that 1t was government money until
finally distributed and therefore not
subject to taxation for costs.
S. NJ. Ballou. for other claimants.
contended that the insurance compa-
MES ought to pay the entire costs, eX-
| cepting the one per cent stipulated at
the outset to come out of the fund as
| a fee to District Attorney Breckons.
He spoke for himself, not wishing to
bind other counsel as he represented
but two claimants having comparative
ly small cases. 1t was the insurance
companies that had brought on the
litigation. therefore they should pay
all of the costs up to the filing of their
disclaimers.
w. l.. Stanley, also representing a
wardees, agreed with the previous
speakers on the liability of the insur-
ance companies for costs, holding with
Mr. Ballou for the whole thing 1t was
their demand to share in the fund
which had caused the litigation and
having lost they should bear the ex-
pense
Judge Dole suggested the question as
to whether the position of the insur-
ance companies, consequent upon their
disclaimers, was not the same as If the
cases had reached the stage of DEGREES
against them. Counsel for the claim
ants eagerly took the affirmative on
the query, but counsel for the insurers
maintained an ominous silence until his
turn came to reply.
A. G. NJ. Robertson gave point
blank contradiction to the assertions
that the insurance companies were
responsible for the litigation. I'VE
made no demand whatsoever for the
money! he declared and went on to
say that the cases were brought by
the Treasury, In the name of its agent,
w. +. MacLennan, after the bank hav-
ing the disbursing of the money had
refused to pay the claimants until the
question between them and the insur-
ance companies should be judicially de-
cided The companies fought the test
case, as was their plain duty. until 1t
was decided against them, when they
Immediately entered disclaimers in the
other cases. If they had won they
would not ask the claimants to con-
tribute to the costs, as 1t was the
proper thing for the expense of litiga-
ton in such matter to come out of
the fund in dispute. Neither the in
surance companies nor the claimants
We're TO blame for tying up the money.
1t was for the principle of the matter
he was contending, as outside of the
stipulated one per cent which was not
in question the costs would not be
very great. The same principle was
observed in probate matters. C'And in
Bankruptcy" Judge Dole suggested)
Counsel also remarked that the insur-
ance companies, any more than the
Chinese claimants. We're not to blame
for the manner in which the Fire
Claims Commission had made these
particular awards. The whole matter,
he concluded, was one for the COM
nonsense discretion of the court
Mr.. Whiting contested the statement
that the insurance companies had they
won. would have paid the entire costs.
1t was not natural to suppose that
they would. While he admitted the
good faith of counsel in making the
statement he claimed credit for good
faith In holding that the insurers
would have done nothing of the kind.
He emphasized n point touched upon
by Mr.. Ballou, by asking wherein
certain cases I'm which the award was
less than the insurance claim-was the
margin for costs.
Judge Dole took the matter under
advisement.