British Bata Shoe Co Ltd v Double M Shah Ltd [1980] ScotCS CSOH_4 (06 June 1980)

British Bata Shoe Co Ltd v Double M Shah Ltd [1980] ScotCS CSOH_4 (06 June 1980)

Kreager had no ostensible authority to demand or receive blank cheques, as there was no representation by the pursuers to the defenders regarding such authority. The defenders' conduct in sending blank cheques and failing to make enquiries in the face of highly unusual payment methods put them at fault, and they must bear the loss resulting from Kreager's misappropriation.

Citation
[1980] ScotCS CSOH_4
Parties
Pursuer: British Bata Shoe Co. Ltd; Defender: Double M. Shah Ltd
Jurisdiction
Scotland
Judgment Date
06 June 1980
Procedural Posture
Civil / Judgment After Proof
Outcome
decree for the pursuers
Legal Topics
Ostensible Authority, Agency Liability, Misappropriation of Funds, Payment by Cheque, Duty of Enquiry
Commercial Law Agency Law Ostensible Authority Agency Liability Misappropriation of Funds Payment by Cheque Duty of Enquiry

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 9 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

British Bata Shoe Co. Ltd

Pursuer

Double M. Shah Ltd

Defender

Procedural Posture

Civil / Judgment After Proof

Legal Issues

  1. 1 Whether the pursuers are entitled to recover the sum of £17,450 from the defenders where the sum was misappropriated by the pursuers' employee Kreager.
  2. 2 Whether Kreager had ostensible authority to receive blank cheques from the defenders on behalf of the pursuers.
  3. 3 Whether the defenders were put on enquiry by the unusual method of payment and failed in their duty to make enquiries.

Ratio Decidendi

Kreager had no ostensible authority to demand or receive blank cheques, as there was no representation by the pursuers to the defenders regarding such authority. The defenders' conduct in sending blank cheques and failing to make enquiries in the face of highly unusual payment methods put them at fault, and they must bear the loss resulting from Kreager's misappropriation.

Court Disposition

decree for the pursuers

Orders

  • Defenders to pay the sum of £17,450 to the pursuers.