Bute (Marquess) v Barclays Bank Ltd: 1955

McGaw was the manager of three farms belonging to the plaintiff. He applied to the Department of Agriculture for Scotland for farm subsidies. After he left, the Department sent him three warrants in respect of the subsidies. The warrants were made payable to McGaw, but elsewhere on them appeared the words ‘for the Marquess of Bute.’ McGaw paid the warrants into his own personal account at a branch of defendant bank, which forwarded them for collection and paid the proceeds into his account, upon which he then drew.
Held: The plaintiff was entitled to succeed in an action against the defendant bank for damages for conversion. The words ‘for the Marquess of Bute’ had the effect that, in the circumstances, the warrants were payable to the Marquess of Bute through McGaw. In order to succeed in an action for conversion, it was enough that the plaintiff could prove that, at the time of the alleged conversion, he was entitled to immediate possession; and that, as McGaw’s employment had terminated before he received the warrants, the plaintiff would have been entitled to require McGaw to deliver the warrants to him when they were received.

Judges:

McNair J

Citations:

[1955] 1 QB 202

Cited by:

CitedLipkin Gorman (a Firm) v Karpnale Ltd HL 6-Jun-1991
The plaintiff firm of solicitors sought to recover money which had been stolen from them by a partner, and then gambled away with the defendant. He had purchased their gaming chips, and the plaintiff argued that these, being gambling debts, were . .
Lists of cited by and citing cases may be incomplete.

Banking

Updated: 01 May 2022; Ref: scu.259534