Bowie's Trustees v. Goudie and Others [1912] ScotLR 202 (05 December 1912)

Bowie's Trustees v. Goudie and Others [1912] ScotLR 202 (05 December 1912)

The pursuers were not to blame for their agent's fraud and had not given him authority to discharge the bond; the forged discharge was a nullity, and the purchaser, though innocent, had no right to retain the bond, which remained the property of the creditors.

Citation
[1912] ScotLR 202
Parties
Pursuer: Walter Bowie and others, testamentary trustees of William Bowie; Defender: William Goudie; Defender: Mrs E. H. Watson and Thomas Watson (her curator and administrator-in-law)
Jurisdiction
Scotland
Judgment Date
05 December 1912
Procedural Posture
Civil Action for Reduction and Delivery / Appeal (inner House, First Division)
Outcome
Appeal dismissed; judgment for pursuers affirmed.
Legal Topics
Fraud, Agent and Client, Innocent Third Party, Forgery, Embezzlement, Bona Fide Purchaser, Mandate of Agent
Property Law Trusts and Estates Agency Law Fraud Agent and Client Innocent Third Party Forgery Embezzlement +2 more

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Parties

Walter Bowie and others, testamentary trustees of William Bowie

Pursuer

William Goudie

Defender

Mrs E. H. Watson and Thomas Watson (her curator and administrator-in-law)

Defender

Procedural Posture

Civil Action for Reduction and Delivery / Appeal (inner House, First Division)

Legal Issues

  1. 1 Whether a purchaser who receives a bond and forged discharge from a fraudulent agent is entitled to retain the bond as against the true owner-creditors.
  2. 2 Whether the creditors are barred from reclaiming the bond due to their agent's fraud.

Ratio Decidendi

The pursuers were not to blame for their agent's fraud and had not given him authority to discharge the bond; the forged discharge was a nullity, and the purchaser, though innocent, had no right to retain the bond, which remained the property of the creditors.

Court Disposition

Appeal dismissed; judgment for pursuers affirmed.

Orders

  • Defender Mrs Watson to deliver the bond and disposition in security to the pursuers.