National Bank of Scotland, Ltd v. Thomas White & Park [1909] ScotLR 948 (15 July 1909)

National Bank of Scotland, Ltd v. Thomas White & Park [1909] ScotLR 948 (15 July 1909)

The law agents acquired the title-deeds as agents for the assignees of the prior bondholders, not as agents for the owner/borrower. Therefore, they have no lien to plead against the postponed heritable creditor (the bank). The right of lien only arises when the deeds are delivered by the client in the course of employment; this was not the case here.

Citation
[1909] ScotLR 948
Parties
Pursuer: National Bank of Scotland, Limited; Defender: Thomas White & Park
Jurisdiction
Scotland
Judgment Date
15 July 1909
Procedural Posture
Civil / Appeal (reclaiming Motion) From Dismissal at First Instance
Outcome
Appeal allowed; interlocutor of Lord Ordinary recalled; declarator granted in favour of pursuers; other conclusions dismissed.
Legal Topics
Lien, Hypothec, Security Over Title Deeds, Priority of Securities, Law Agent's Rights, Heritable Creditor Rights
Property Law Banking Law Agency Law Lien Hypothec Security Over Title Deeds Priority of Securities Law Agent's Rights +1 more

Case Brief

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Parties

National Bank of Scotland, Limited

Pursuer

Thomas White & Park

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion) From Dismissal at First Instance

Legal Issues

  1. 1 Whether law agents who acquire title-deeds as agents for prior bondholders (not the owner) can claim a lien over those deeds against a postponed heritable creditor (the bank).
  2. 2 Whether knowledge of the existence of a postponed bond affects the law agent's right of lien.

Ratio Decidendi

The law agents acquired the title-deeds as agents for the assignees of the prior bondholders, not as agents for the owner/borrower. Therefore, they have no lien to plead against the postponed heritable creditor (the bank). The right of lien only arises when the deeds are delivered by the client in the course of employment; this was not the case here.

Court Disposition

Appeal allowed; interlocutor of Lord Ordinary recalled; declarator granted in favour of pursuers; other conclusions dismissed.

Orders

  • Recall the Lord Ordinary's interlocutor.
  • Find and declare in terms of the declaratory conclusion of the summons.