Tanks and Vessels Industries Ltd v Devon Cider Company Ltd

Tanks and Vessels Industries Ltd v Devon Cider Company Ltd

The court found TVI retained title to both the Palletiser and the Vessels until payment, no enforceable agreement for a nominal residual value existed, and Devon Cider's continued possession after demand constituted conversion. The agreements were hire (not hire-purchase or sale) for the Palletiser and sale with retention of title for the Vessels. Relief was granted as delivery up with alternative of damages assessed at market value as at the date of conversion, with interest. Consequential damages for loss of use were awarded only if delivery up was elected, not in addition to damages for market value.

Parties
Claimant: Tanks and Vessels Industries Limited; Defendant: Devon Cider Company Limited
Jurisdiction
England and Wales
Judgment Date
17 June 2009
Procedural Posture
Civil / Judgment After Trial of Claim and Counterclaim
Outcome
Claim allowed in part; counterclaim dismissed
Legal Topics
Conversion, Sale of Goods, Retention of Title, Damages, Bailment
Tort Commercial Law Conversion Sale of Goods Retention of Title Damages Bailment

Case Brief

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Parties

Tanks and Vessels Industries Limited

Claimant

Devon Cider Company Limited

Defendant

Procedural Posture

Civil / Judgment After Trial of Claim and Counterclaim

Legal Issues

  1. 1 Whether TVI retained title to the Palletiser and Vessels supplied to DCC/Devon Cider
  2. 2 Whether Devon Cider converted the Palletiser and Vessels within the meaning of the Torts (Interference with Goods) Act 1977
  3. 3 Whether the supply agreements were hire, hire-purchase, or sale agreements

Ratio Decidendi

The court found TVI retained title to both the Palletiser and the Vessels until payment, no enforceable agreement for a nominal residual value existed, and Devon Cider's continued possession after demand constituted conversion. The agreements were hire (not hire-purchase or sale) for the Palletiser and sale with retention of title for the Vessels. Relief was granted as delivery up with alternative of damages assessed at market value as at the date of conversion, with interest. Consequential damages for loss of use were awarded only if delivery up was elected, not in addition to damages for market value.

Court Disposition

Claim allowed in part; counterclaim dismissed

Orders

  • Devon Cider to deliver up the Palletiser to TVI by 14 July 2009 with consequential damages of £14,440 for loss of use, or alternatively pay £12,000 plus interest at 5.5% by that date
  • Devon Cider to deliver up the Vessels to TVI by 14 July 2009, or alternatively pay £72,000 plus interest at 5.5% by that date