Caterpillar (NI) Ltd v John Holt & Company (Liverpool) Ltd

Caterpillar (NI) Ltd v John Holt & Company (Liverpool) Ltd

The retention of title clause prevented property in the goods from passing to Holt Liverpool until payment was made. As property had not passed, FG Wilson could not maintain an action for the price under section 49 of the Sale of Goods Act 1979. The no set-off clause was effective to preclude set-off, but only in relation to claims for the price. The appeal was allowed and the order for payment of the price was set aside.

Parties
Respondent/claimant: Caterpillar (NI) Limited (formerly known as FG Wilson (Engineering) Limited); Appellant/defendant: John Holt & Company (Liverpool) Limited
Jurisdiction
England and Wales
Judgment Date
17 October 2013
Procedural Posture
Commercial Court Appeal / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Retention of Title Clauses, Set Off, Action for Price, Agency, Statutory Interpretation
Commercial Law Contract Law Sale of Goods Retention of Title Clauses Set Off Action for Price Agency Statutory Interpretation

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Parties

Caterpillar (NI) Limited (formerly known as FG Wilson (Engineering) Limited)

Respondent/claimant

John Holt & Company (Liverpool) Limited

Appellant/defendant

Procedural Posture

Commercial Court Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether FG Wilson can claim for the price under section 49 of the Sale of Goods Act 1979
  2. 2 Whether the 'no set-off clause' precludes Holt Liverpool from relying on set-off
  3. 3 Whether property in the goods passed to Holt Liverpool under the retention of title clause

Ratio Decidendi

The retention of title clause prevented property in the goods from passing to Holt Liverpool until payment was made. As property had not passed, FG Wilson could not maintain an action for the price under section 49 of the Sale of Goods Act 1979. The no set-off clause was effective to preclude set-off, but only in relation to claims for the price. The appeal was allowed and the order for payment of the price was set aside.

Court Disposition

Appeal allowed

Orders

  • Order for payment of the price set aside