Hepburn v. Law [1913] ScotLR 342 (12 July 1913)

Hepburn v. Law [1913] ScotLR 342 (12 July 1913)

The transaction, though in the form of a sale, was intended by the parties as a security for a loan and not as a true sale; therefore, property in the goods did not pass to Law, and the goods remained Weir's property, subject to poinding.

Citation
[1913] ScotLR 342
Parties
Pursuer: James Hepburn; Minuter/respondent (claimant): William Law; Defender (original Debtor): Reverend John Symington Weir
Jurisdiction
Scotland
Judgment Date
12 July 1913
Procedural Posture
Civil / Appeal From Sheriff to Court of Session
Outcome
Appeal sustained; interlocutor of the Sheriff recalled; interlocutor of the Sheriff-Substitute affirmed; Law's claim refused.
Legal Topics
Sale of Goods, Security Over Moveables, Intention of Parties, Effect of Form Versus Substance, Sale of Goods Act 1893 Section 61(4)
Commercial Law Property Law Sale of Goods Security Over Moveables Intention of Parties Effect of Form Versus Substance Sale of Goods Act 1893 Section 61(4)

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Parties

James Hepburn

Pursuer

William Law

Minuter/respondent (claimant)

Reverend John Symington Weir

Defender (original Debtor)

Procedural Posture

Civil / Appeal From Sheriff to Court of Session

Legal Issues

  1. 1 Whether the transaction between Weir and Law was a true sale or a security in the form of a sale
  2. 2 Whether property in the goods passed to Law under the Sale of Goods Act 1893

Ratio Decidendi

The transaction, though in the form of a sale, was intended by the parties as a security for a loan and not as a true sale; therefore, property in the goods did not pass to Law, and the goods remained Weir's property, subject to poinding.

Court Disposition

Appeal sustained; interlocutor of the Sheriff recalled; interlocutor of the Sheriff-Substitute affirmed; Law's claim refused.

Orders

  • Articles of furniture claimed by Law not withdrawn from poinding; remain subject to execution at Hepburn's instance.