Glendinning v. Hope & Co. [1911] UKHL 775 (26 June 1911)

Glendinning v. Hope & Co. [1911] UKHL 775 (26 June 1911)

A stockbroker in Scotland is entitled by common law to a general lien/right of retention over securities or documents lawfully in his possession for the general balance due from the client, even if the debt arises from a different transaction, provided the possession is legitimate at the time the right is asserted.

Citation
[1911] UKHL 775
Parties
Respondent: Glendinning; Appellants: Hope & Company
Jurisdiction
United Kingdom
Judgment Date
26 June 1911
Procedural Posture
Civil Appeal / Appeal to House of Lords From Second Division, Court of Session
Outcome
Appeal allowed; judgment of Second Division reversed; Lord Ordinary's judgment restored.
Legal Topics
Stockbroker's Lien, Right of Retention, General Lien, Agency Liability, Stock Exchange Practice
Commercial Law Agency Law Stockbroker's Lien Right of Retention General Lien Agency Liability Stock Exchange Practice

Case Brief

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Parties

Glendinning

Respondent

Hope & Company

Appellants

Procedural Posture

Civil Appeal / Appeal to House of Lords From Second Division, Court of Session

Legal Issues

  1. 1 Whether a stockbroker in Scotland has a general lien/right of retention over client securities for debts not arising from the same transaction
  2. 2 Whether the broker's possession of the transfer was lawful at the relevant time
  3. 3 Whether the broker was entitled to retain the transfer until payment of a general balance due

Ratio Decidendi

A stockbroker in Scotland is entitled by common law to a general lien/right of retention over securities or documents lawfully in his possession for the general balance due from the client, even if the debt arises from a different transaction, provided the possession is legitimate at the time the right is asserted.

Court Disposition

Appeal allowed; judgment of Second Division reversed; Lord Ordinary's judgment restored.

Orders

  • Hope & Company entitled to payment of the consigned sum (£50, 2s.)
  • Hope & Company entitled to retain the transfer until payment of the debt