Hayman & Son v McLintock [1907] ScotCS CSIH_8 (28 May 1907)

Hayman & Son v McLintock [1907] ScotCS CSIH_8 (28 May 1907)

In Scots law, the transfer of bills of lading as security constitutes a proprietary right in the goods, not merely a pledge, and the security is valid as long as the holder retains the document. Property in unascertained goods does not pass to the buyer until the goods are ascertained, so purchasers under unascertained contracts have no proprietary right before ascertainment.

Citation
[1907] ScotCS CSIH_8
Parties
Pursuer: Hayman & Son; Defender: M'Lintock; Claimant: John Stevenson; Claimant: Moorhead, Watson, & Company; Claimant: M'Connell & Reid; Claimant: J. K. Stewart
Jurisdiction
Scotland
Judgment Date
28 May 1907
Procedural Posture
Multiplepoinding / Appeal From Lord Ordinary's Decision
Outcome
appeal dismissed; Lord Ordinary's judgment adhered to
Legal Topics
Bills of Lading, Security Over Goods, Sale of Unascertained Goods, Passing of Property, Bankruptcy Competition
Commercial Law Bankruptcy Property Law Bills of Lading Security Over Goods Sale of Unascertained Goods Passing of Property Bankruptcy Competition

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Parties

Hayman & Son

Pursuer

M'Lintock

Defender

John Stevenson

Claimant

Moorhead, Watson, & Company

Claimant

M'Connell & Reid

Claimant

J. K. Stewart

Claimant

Procedural Posture

Multiplepoinding / Appeal From Lord Ordinary's Decision

Legal Issues

  1. 1 Whether the holder of bills of lading as security has a proprietary right to the goods in Scotland
  2. 2 Whether property in unascertained goods passes to the buyer before ascertainment under the Sale of Goods Act
  3. 3 Effect of delivery-order and bills of lading in passing property or security in stored goods

Ratio Decidendi

In Scots law, the transfer of bills of lading as security constitutes a proprietary right in the goods, not merely a pledge, and the security is valid as long as the holder retains the document. Property in unascertained goods does not pass to the buyer until the goods are ascertained, so purchasers under unascertained contracts have no proprietary right before ascertainment.

Court Disposition

appeal dismissed; Lord Ordinary's judgment adhered to

Orders

  • Stevenson and Moorhead, Watson, & Company entitled to the bags of flour represented by their bills of lading and security;
  • M'Connell & Reid and J. K. Stewart not entitled to any bags as property did not pass;