Marcq v Christie, Manson & Woods Ltd. [2003] EWCA Civ 731 (23rd May 2003)

Marcq v Christie, Manson & Woods Ltd. [2003] EWCA Civ 731 (23rd May 2003)

An auctioneer who, acting in good faith and without notice of any adverse claim, receives goods from an apparent owner and returns them unsold to that person is not liable in conversion or bailment to the true owner. Mere possession, cataloguing, or offering for sale does not amount to conversion absent a sale and delivery or exercise of rights inconsistent with the owner's title. No bailment relationship or duty arises to the true owner without notice or circumstances putting the auctioneer on enquiry.

Citation
[2003] EWCA Civ 731
Parties
Appellant (claimant): MARCQ; Respondent (defendant): Christie, Manson & Woods Limited
Jurisdiction
England and Wales
Procedural Posture
Civil Appeal / Appeal From Decision Striking Out Claim at Central London County Court, Upheld by High Court
Outcome
Appeal dismissed
Legal Topics
Conversion, Bailment, Auctioneers' Liability, Good Faith, Lien, Pledge, Title to Goods
Tort Law Property Law Conversion Bailment Auctioneers' Liability Good Faith Lien Pledge +1 more

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Parties

MARCQ

Appellant (claimant)

Christie, Manson & Woods Limited

Respondent (defendant)

Procedural Posture

Civil Appeal / Appeal From Decision Striking Out Claim at Central London County Court, Upheld by High Court

Legal Issues

  1. 1 Is an auctioneer liable in conversion or bailment to the true owner if, acting in good faith and without notice, it returns unsold stolen goods to the prospective seller who is not the true owner?
  2. 2 Do the auctioneer's contractual terms with the would-be seller affect liability to the true owner?
  3. 3 Does the existence or exercise of a lien or right of sale by the auctioneer amount to conversion or pledge?

Ratio Decidendi

An auctioneer who, acting in good faith and without notice of any adverse claim, receives goods from an apparent owner and returns them unsold to that person is not liable in conversion or bailment to the true owner. Mere possession, cataloguing, or offering for sale does not amount to conversion absent a sale and delivery or exercise of rights inconsistent with the owner's title. No bailment relationship or duty arises to the true owner without notice or circumstances putting the auctioneer on enquiry.

Court Disposition

Appeal dismissed

Orders

  • Claim struck out for disclosing no reasonable grounds for bringing the claim
  • Appellant to pay respondent's costs below (£25,000) and costs of appeal (£15,000), payable within 28 days