Goldsbrough Mort and Company Limited v Maurice [1937] HCA 71

Goldsbrough Mort and Company Limited v Maurice [1937] HCA 71

Where a bailee for reward insures bailed goods under a policy covering its own property or goods held on trust or commission, and the goods are destroyed before sale, the bailee is entitled to deduct its full consolidated charges for preparatory services and sales commission from the amount received under the insurance policy—regardless of whether services were completed or commission earned at the time of loss—because these charges form part of the value for which the goods were insured and would necessarily have been deducted from sale proceeds had sale been completed.

Parties
Appellant / Defendant: Goldsbrough Mort & Co. Ltd.; Respondent / Plaintiff: Thelwall Thomas Maurice
Jurisdiction
Australia
Procedural Posture
Appeal / Judgment on Appeal From the Supreme Court of New South Wales (full Court) to the High Court of Australia
Outcome
Appeal allowed (majority: Starke, Dixon, McTiernan JJ; Latham C.J. and Evatt J. dissenting)
Legal Topics
Bailment of Goods, Insurance Proceeds, Agency, Commissions and Charges, Trust and Fiduciary Obligations
Commercial Law Insurance Law Bailment Bailment of Goods Insurance Proceeds Agency Commissions and Charges Trust and Fiduciary Obligations

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 16 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Goldsbrough Mort & Co. Ltd.

Appellant / Defendant

Thelwall Thomas Maurice

Respondent / Plaintiff

Procedural Posture

Appeal / Judgment on Appeal From the Supreme Court of New South Wales (full Court) to the High Court of Australia

Legal Issues

  1. 1 Whether the bailee (Goldsbrough Mort & Co. Ltd.) was entitled to deduct its full charge for preparatory services and commission upon sale from insurance proceeds received for respondent's wool destroyed by fire.
  2. 2 Whether, upon destruction of the goods before sale, the bailee may retain unearned commission and charges for services not performed from the insurance payout.

Ratio Decidendi

Where a bailee for reward insures bailed goods under a policy covering its own property or goods held on trust or commission, and the goods are destroyed before sale, the bailee is entitled to deduct its full consolidated charges for preparatory services and sales commission from the amount received under the insurance policy—regardless of whether services were completed or commission earned at the time of loss—because these charges form part of the value for which the goods were insured and would necessarily have been deducted from sale proceeds had sale been completed.

Court Disposition

Appeal allowed (majority: Starke, Dixon, McTiernan JJ; Latham C.J. and Evatt J. dissenting)

Orders

  • Order of Supreme Court of New South Wales set aside.
  • Questions in special case answered: 1. No; 2. Yes; 3. No; 4. Yes.