Kinloch Damph Ltd v Nordvik Salmon Farms Ltd & Ors [1999] ScotCS 162 (30 June 1999)

Kinloch Damph Ltd v Nordvik Salmon Farms Ltd & Ors [1999] ScotCS 162 (30 June 1999)

The retention of title clause in the contracts is valid and effective; the mature salmon are the same property as the smolts supplied, and the doctrine of specificatio does not apply to the natural growth of living creatures. Ownership remains with the pursuers until payment is made in full, subject to the contractual limitation on repossession to the value of the outstanding debt.

Citation
[1999] ScotCS 162
Parties
Pursuer: Kinloch Damph Limited; Defender: Nordvik Salmon Farms Limited and Others
Jurisdiction
Scotland
Judgment Date
30 June 1999
Procedural Posture
Commercial Contract Dispute / Opinion After Hearing on Merits
Outcome
Declaratory judgment in favour of pursuers on ownership; case put out By Order for further procedure due to Ministry intervention.
Legal Topics
Retention of Title, Specificatio, Ownership of Goods, Contract Interpretation
Commercial Law Property Law Retention of Title Specificatio Ownership of Goods Contract Interpretation

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Parties

Kinloch Damph Limited

Pursuer

Nordvik Salmon Farms Limited and Others

Defender

Procedural Posture

Commercial Contract Dispute / Opinion After Hearing on Merits

Legal Issues

  1. 1 Whether the retention of title clause in the contracts is valid and effective to preserve the pursuers' ownership of the salmon supplied until payment is made in full
  2. 2 Whether the doctrine of specificatio operates to vest ownership of the mature salmon in the defenders due to their feeding and husbandry

Ratio Decidendi

The retention of title clause in the contracts is valid and effective; the mature salmon are the same property as the smolts supplied, and the doctrine of specificatio does not apply to the natural growth of living creatures. Ownership remains with the pursuers until payment is made in full, subject to the contractual limitation on repossession to the value of the outstanding debt.

Court Disposition

Declaratory judgment in favour of pursuers on ownership; case put out By Order for further procedure due to Ministry intervention.

Orders

  • Declaration that the salmon remain the property of the pursuers under the retention of title clause, subject to contractual limitations.
  • No order for delivery or interdict granted at this stage due to Ministry intervention under disease control regulations.