BRINK\'S HONG KONG LTD v. KBC BANK N.V.

BRINK\'S HONG KONG LTD v. KBC BANK N.V.

The pledge was perfected by constructive delivery when the diamonds were consigned to the pledgee's agent (BEA) via the carrier, giving the pledgee an immediate right to possession and locus standi to sue for conversion; the carrier's knowledge or ignorance of the pledge was irrelevant; attornment was not required; accordingly leave to appeal was refused and the Court of Appeal's substantive and costs orders were upheld.

Citation
BRINK\'S HONG KONG LTD v. KBC BANK N.V.
Parties
Plaintiff/respondent: KBC Bank N.V.; 1st Defendant: BRINKS, INCORPORATED; 2nd Defendant: BRINKS ASIA PACIFIC LIMITED; 3rd Defendant/applicant: BRINKS HONG KONG LIMITED
Court
Court of Final Appeal
Jurisdiction
Hong Kong
Judgment Date
24 May 2016
Case Number
FAMV45/2015
Procedural Posture
Application for Leave to Appeal (civil) From Court of Appeal / Final Court of Appeal Determination on Leave Application; Reasons for Determination Issued
Outcome
Application for leave to appeal dismissed
Legal Topics
Conversion, Pledge, Constructive Delivery, Attornment, Sanctioned Offers, Costs, Leave to Appeal
Source Language
EN
Commercial Law Property Civil Procedure Carriage of Goods by Air Conversion Pledge Constructive Delivery Attornment +3 more

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Parties

KBC Bank N.V.

Plaintiff/respondent

BRINKS, INCORPORATED

1st Defendant

BRINKS ASIA PACIFIC LIMITED

2nd Defendant

BRINKS HONG KONG LIMITED

3rd Defendant/applicant

Procedural Posture

Application for Leave to Appeal (civil) From Court of Appeal / Final Court of Appeal Determination on Leave Application; Reasons for Determination Issued

Legal Issues

  1. 1 Whether a pledge was perfected by constructive delivery when goods were consigned to the pledgee's agent via a carrier
  2. 2 Whether a carrier's lack of knowledge of the pledgee's interest is a defence to an action for conversion
  3. 3 Whether attornment by the pledgor was required to perfect the pledge where goods were consigned to the pledgee's agent

Ratio Decidendi

The pledge was perfected by constructive delivery when the diamonds were consigned to the pledgee's agent (BEA) via the carrier, giving the pledgee an immediate right to possession and locus standi to sue for conversion; the carrier's knowledge or ignorance of the pledge was irrelevant; attornment was not required; accordingly leave to appeal was refused and the Court of Appeal's substantive and costs orders were upheld.

Court Disposition

Application for leave to appeal dismissed

Orders

  • Application for leave to appeal dismissed with costs
  • Court of Appeal orders upheld