International Banking Corporation and Others v. Ferguson, Shaw, & Sons [1909] ScotLR 139 (03 December 1909)

International Banking Corporation and Others v. Ferguson, Shaw, & Sons [1909] ScotLR 139 (03 December 1909)

Where an innocent possessor converts goods belonging to another into a new species such that the original goods cannot be restored, the possessor becomes owner of the new species but is liable to the true owner for the value of the original goods at the time of conversion.

Citation
[1909] ScotLR 139
Parties
Pursuer: International Banking Corporation and Others; Defender: Ferguson, Shaw, & Sons
Jurisdiction
Scotland
Judgment Date
03 December 1909
Procedural Posture
Civil / Appeal Judgment (court of Session, Inner House, Second Division)
Outcome
Appeal dismissed. Judgment for pursuers.
Legal Topics
Sale of Goods, Ownership and Title, Conversion, Restitution, Specificatio, Bona Fide Purchase, Right in Security
Property Law Commercial Law Sale of Goods Ownership and Title Conversion Restitution Specificatio Bona Fide Purchase +1 more

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 10 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

International Banking Corporation and Others

Pursuer

Ferguson, Shaw, & Sons

Defender

Procedural Posture

Civil / Appeal Judgment (court of Session, Inner House, Second Division)

Legal Issues

  1. 1 Whether a bona fide purchaser who converts goods belonging to another into a new product is liable to the true owner for the value of the goods or only for any profit made.
  2. 2 Whether the doctrine of specificatio applies to the conversion of goods by an innocent possessor.

Ratio Decidendi

Where an innocent possessor converts goods belonging to another into a new species such that the original goods cannot be restored, the possessor becomes owner of the new species but is liable to the true owner for the value of the original goods at the time of conversion.

Court Disposition

Appeal dismissed. Judgment for pursuers.

Orders

  • Defenders to pay pursuers £156, 3s. 2d. with interest as sued for.