Scottish Discount Co v Blin [1985] ScotCS CSIH_3 (23 May 1985)

Scottish Discount Co v Blin [1985] ScotCS CSIH_3 (23 May 1985)

The correct test for determining whether moveable articles have become heritable fixtures is a multifactorial assessment, not solely physical attachment. On the facts, the shears, though substantially affixed, were not so permanently annexed as to lose their moveable character. Upon detachment and sale, they reverted to moveables, and the pursuers' contractual rights to the proceeds revived.

Citation
[1985] ScotCS CSIH_3
Parties
Pursuer: Scottish Discount Company Limited; Hirer: Alexander David Stewart; Second Defender: Langtry Investment Company Ltd.; First Defender: First defender (Trustee in sequestration of Stewart); Third Defender: Third defenders (Trustees under trust deed for creditors)
Jurisdiction
Scotland
Judgment Date
23 May 1985
Procedural Posture
Civil / Reclaiming Motion (appeal) After Proof Before Answer
Outcome
declarator granted in favour of pursuers; shears treated as moveables upon detachment; pursuers entitled to proceeds of sale
Legal Topics
Fixtures, Hire Purchase Agreements, Heritable Security, Accession, Succession, Trust Deeds, Sequestration
Property Law Commercial Law Bankruptcy Law Fixtures Hire Purchase Agreements Heritable Security Accession Succession +2 more

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Parties

Scottish Discount Company Limited

Pursuer

Alexander David Stewart

Hirer

Langtry Investment Company Ltd.

Second Defender

First defender (Trustee in sequestration of Stewart)

First Defender

Third defenders (Trustees under trust deed for creditors)

Third Defender

Procedural Posture

Civil / Reclaiming Motion (appeal) After Proof Before Answer

Legal Issues

  1. 1 Whether industrial shears supplied under hire-purchase agreements became heritable fixtures upon installation in the scrap yard
  2. 2 Whether proceeds of sale of detached shears should go to the hire-purchase supplier or the heritable security holder

Ratio Decidendi

The correct test for determining whether moveable articles have become heritable fixtures is a multifactorial assessment, not solely physical attachment. On the facts, the shears, though substantially affixed, were not so permanently annexed as to lose their moveable character. Upon detachment and sale, they reverted to moveables, and the pursuers' contractual rights to the proceeds revived.

Court Disposition

declarator granted in favour of pursuers; shears treated as moveables upon detachment; pursuers entitled to proceeds of sale

Orders

  • Decree in favour of pursuers for entitlement to proceeds of sale of shears
  • Further hearing to determine interlocutor to give effect to decision