International Banking Corp v Ferguson Shaw [1909] ScotCS CSIH_6 (03 December 1909)

International Banking Corp v Ferguson Shaw [1909] ScotCS CSIH_6 (03 December 1909)

Where goods are irreversibly mixed in good faith to create a new product, the original owner loses the right to restitution but gains a personal claim for the value of the goods used, under the doctrine of specificatio in Scots law.

Citation
[1909] ScotCS CSIH_6
Parties
Pursuer: International Banking Corporation; Defender: Ferguson, Shaw, & Sons
Jurisdiction
Scotland
Judgment Date
03 December 1909
Procedural Posture
Civil / Appeal
Outcome
appeal dismissed; interlocutor of the Sheriff affirmed
Legal Topics
Specificatio, Conversion of Goods, Ownership of Mixed Goods, Restitution, Scots Law Vs English Law
Property Law Commercial Law Specificatio Conversion of Goods Ownership of Mixed Goods Restitution Scots Law Vs English Law

Case Brief

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Parties

International Banking Corporation

Pursuer

Ferguson, Shaw, & Sons

Defender

Procedural Posture

Civil / Appeal

Legal Issues

  1. 1 Whether the pursuers are entitled to the value of oil used by defenders to create a new product (lard compound) under the doctrine of specificatio
  2. 2 Whether the defenders' good faith use of the oil affects the pursuers' right to claim its value

Ratio Decidendi

Where goods are irreversibly mixed in good faith to create a new product, the original owner loses the right to restitution but gains a personal claim for the value of the goods used, under the doctrine of specificatio in Scots law.

Court Disposition

appeal dismissed; interlocutor of the Sheriff affirmed

Orders

  • Defenders to pay pursuers £156, 3s. 2d. as the value of the oil