The claimant sought damages for conversion from the respondent auctioneers as bailees. The painting had been registered as stolen. It failed to achieve its reserve and had been returned.
Held: It was for a bailee to prove that he had acted in good faith. That meant that he was not aware that the person for whom he held the goods was not the true owner. The situation differed where the goods were purchased, and where ownership passed. A bailee could be liable if he did not act in good faith and without notice (Hollins). Christies had made enquiry in the art loss register, and been reassured that it was not stolen. In the circumstances the claimant had to be given an opportunity to deal with issues raised in the response. An auctioneer who receives goods from their apparent owner and simply redelivers them to him when they are unsold is not liable in conversion provided he has acted in good faith and without knowledge of any adverse claim to them.
Judges:
Jack J
Citations:
Times 25-Nov-2002, Gazette 28-Nov-2002
Statutes:
Jurisdiction:
England and Wales
Citing:
Cited – Kuwait Airways Corporation v Iraqi Airways Company and Others (Nos 4 and 5) HL 16-May-2002
After the invasion of Kuwait, the Iraqi government had dissolved Kuwait airlines, and appropriated several airplanes. Four planes were destroyed by Allied bombing, and 6 more were appropriated again by Iran.
Held: The appeal failed. No claim . .
Cited – Hollins v Fowler HL 1875
One who deals with goods at the request of the person who has the actual custody of them, in the bona fide belief that the custodier is the true owner, or has the authority of the true owner, should be excused for what he does if the act is of such . .
Cited – National Mercantile Bank v Rymill 1881
The plaintiff owned horses subject to a bill of sale. The grantor of the bill sold the horses privately in the defendant’s auction yard and following the sale, on the grantor’s instructions, the auctioneer delivered the horses to the buyer.
Cited – Turner v Hockey 1887
The owner of a cow gave a bill of sale over it (and others) but then asked the defendant auctioneer to sell it. He did not inform the auctioneer of the bill of sale.
Held: An auctioneer who unknowingly but in the ordinary course of business . .
Cited – Willis and Son v British Car Auctions Ltd CA 1978
A car on hire purchase was sold and delivered by auctioneers on the instructions of the hirer. The court was asked whether the auctioneers’ liability was affected by the fact that the car had been sold under their provisional bid procedure.
Cited by:
Appeal from – Marcq v Christie, Manson and Woods Ltd CA 23-May-2003
The claimant’s stolen painting was put up for sale by the defendant. On being withdrawn, they returned it to the person who had brought it in. The claimant sought damages.
Held: There was no reported case in which a court has had to consider . .
Lists of cited by and citing cases may be incomplete.
Agency, Contract, Torts – Other
Updated: 28 May 2022; Ref: scu.178298
