Fairfax Gerrard Holdings Ltd.& Ors v Capital Bank Plc

Fairfax Gerrard Holdings Ltd.& Ors v Capital Bank Plc

The Finance Agreement did not give Dimond authority to pass title to Capital Bank without compliance with the trust receipt regime; Capital Bank was on notice of the claimants' rights and failed to investigate; Dimond was not in possession at the relevant time and did not act as a mercantile agent; Capital Bank did not acquire good title under the Factors Act or Sale of Goods Act; damages for conversion are awarded at £132,500 reflecting the realisable value of the machine.

Parties
Claimant: Fairfax Gerrard Holdings Limited; Claimant: Fairfax Gerrard International Limited; Claimant: Assetline Limited; Defendant: Capital Bank PLC
Jurisdiction
England and Wales
Judgment Date
10 October 2006
Procedural Posture
Commercial Dispute / Judgment After Trial
Outcome
judgment for the claimants
Legal Topics
Reservation of Title, Conversion, Mercantile Agent, Implied Authority, Assessment of Damages, Finance Agreements
Commercial Law Contract Law Sale of Goods Tort Law Reservation of Title Conversion Mercantile Agent Implied Authority +2 more

Case Brief

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Parties

Fairfax Gerrard Holdings Limited

Claimant

Fairfax Gerrard International Limited

Claimant

Assetline Limited

Claimant

Capital Bank PLC

Defendant

Procedural Posture

Commercial Dispute / Judgment After Trial

Legal Issues

  1. 1 Construction and effect of the Finance Agreement between the parties
  2. 2 Whether Dimond had implied authority to sell the machine to Capital Bank
  3. 3 Whether Dimond was a mercantile agent under the Factors Act 1889

Ratio Decidendi

The Finance Agreement did not give Dimond authority to pass title to Capital Bank without compliance with the trust receipt regime; Capital Bank was on notice of the claimants' rights and failed to investigate; Dimond was not in possession at the relevant time and did not act as a mercantile agent; Capital Bank did not acquire good title under the Factors Act or Sale of Goods Act; damages for conversion are awarded at £132,500 reflecting the realisable value of the machine.

Court Disposition

judgment for the claimants

Orders

  • Capital Bank PLC to pay the claimants £132,500 in damages for conversion