Volume Six - Pre-Victorian to the Present Day - Select Aspects - The Penarth Harbour, Dock & Railway Co. dispute with Messrs. Smith, Knight & Co. . .

The arbitrator found that they had no right to sell the plant at that time, but he said that the sale had produced no loss to Messrs. Smith, Knight, and Co., but on the contrary, they had benefited from it, and all they would be entitled to receive would be the sum realised by the sale less the expenses incurred by the sale.

Strictly and legally speaking, they had, perhaps, no right to take possession of that property, but if they had not taken possession of the quarry and had been compelled to have purchased stone at another quarry, the result would have been a large increase in the cost of the construction of the works, and that additional expense must have been borne by the estate of Smith, Knight, and Co., and therefore, though strictly and legally speaking the company had no right to take possession of the quarry, it had been the means of saving the estate of Smith, Knight, and Co., and it was the right thing to do for them. This was the view the arbitrator took, and it was on that principle that he would make his award, and the Company would not suffer any loss upon that account.

Another point in their favour was this. When they had finished the work they sold the plant of Messrs. Smith, Knight, and Co. Strictly speaking. they should have held the plant until the whole question in dispute was decided, and it was known what was the actual amount due to their Company.

They finished the works in 1865, and as men of business they resolved to sell the plant, which was useless to them. But he might tell them in doing so they acted on the advice of one of the most eminent lawyers, to whom the point was submitted, and he held that though strictly speaking they were not entitled to sell the plant, it is for the advantage of Smith, Knight, and Co. that it should be sold.

This was the second point. Strictly, they knew that they had run beyond what they were legally entitled to do, but what they did was for the benefit of both parties, and the arbitrator found in their favour on both points. He held in his hand a return made by the secretary, which showed the various items upon which the interlocutory award would be in their favour, and they found that the estate of Messrs. Smith, Knight, and co., was indebted to them the sum of £40,000.