Triffitt Nurseries & Ors v Salads Etcetera Ltd & Ors [2000] EWCA Civ 134 (18 April 2000)

Triffitt Nurseries & Ors v Salads Etcetera Ltd & Ors [2000] EWCA Civ 134 (18 April 2000)

The proceeds of sales collected by the receivers after the appointment remained assets of Salads Etcetera Ltd, subject to the bank's charge, and were not held on trust for the claimants. The appointment of receivers and cessation of business did not, without more, terminate the agency relationship or divest Salads of beneficial ownership of the book debts. No constructive trust arose in the absence of unconscionable conduct or a specific contractual obligation to segregate funds.

Citation
[2000] EWCA Civ 134
Parties
Claimant: [Five Claimant Growers]; First Defendant: Salads Etcetera Ltd; Second Defendant (administrative Receiver): Mr Michael Hore; Third Defendant (administrative Receiver): Mr Keith Hinds
Jurisdiction
England and Wales
Judgment Date
18 April 2000
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal dismissed
Legal Topics
Beneficial Ownership of Proceeds, Agency Relationship Termination, Constructive Trust, Receivership, Book Debts, Insolvency Priorities
Commercial Law Insolvency Law Agency Law Beneficial Ownership of Proceeds Agency Relationship Termination Constructive Trust Receivership Book Debts +1 more

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Parties

[Five Claimant Growers]

Claimant

Salads Etcetera Ltd

First Defendant

Mr Michael Hore

Second Defendant (administrative Receiver)

Mr Keith Hinds

Third Defendant (administrative Receiver)

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether money collected by administrative receivers from book debts of a mercantile agent is held on trust for the principal (growers) or forms part of the agent's assets subject to the bank's charge
  2. 2 Whether the appointment of receivers and cessation of business terminates the agency relationship so as to alter beneficial ownership of proceeds

Ratio Decidendi

The proceeds of sales collected by the receivers after the appointment remained assets of Salads Etcetera Ltd, subject to the bank's charge, and were not held on trust for the claimants. The appointment of receivers and cessation of business did not, without more, terminate the agency relationship or divest Salads of beneficial ownership of the book debts. No constructive trust arose in the absence of unconscionable conduct or a specific contractual obligation to segregate funds.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs to be subjected to detailed assessment
  • Leave to appeal to House of Lords refused