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(3) Equity (Equity & personal property (features (Equitable interests…
(3) Equity
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Legal Protection
- Legal interests in chattels protected using tort law actions
Trespass to goods, conversion, negligence
- English common law does not have an equivalent of Roman law vindicatio for personal property
- ‘These goods are mine and I want them back!’
- Usual common law remedy is damages
- Limited change effected by Torts (Interference with Goods) Act 1977, s 3
- Ct can intervene for restoration but most of the time it will be at market value.commercial firms just want market value.
3 main ways in how law of tort protects personal property.
Property law deals w real property, but personal property is dealt w trespass etc.
1. Trespass to goods
What does cause of action require?
- Direct interference with a chattel: e.g. removing goods or damaging them
- Requires some voluntary act
- Actionable per se but can recover for damage to goods and for consequential losses
- Possibility that goods in D’s possession/control must be returned to claimant: Torts (Interference with Goods Act) 1977, s 3
- Claimant must have possession (or right to immediate possession)
Penfolds Wines Pty Ltd v Elliott (1946) 74 CLR 204, Latham CJ at 214–15
- ‘A mere taking or asportation of a chattel may be a trespass without the infliction of any material damage. The handling of a chattel without authority is a trespass … Unauthorized user of goods is a trespass … The normal use of a bottle is as a container, and the use of it for this purpose is a trespass if, as in this case, it is not authorized by a person in possession or entitled to immediate possession.’
- Unauthorised interaction of a thing that flals short of deprivation. (trespass)
- If u deprive = conversion. Excluding possessor from it, treating it like its ur own thing
2. conversion
- Conversion = dealing w the good as if its urs. i.e. if u take the car and locking it in a garage = exclusion of owner from it.
- Possessory right! + needs to be a voluntary act.
law in actionD moves C’s bicycle from its original position in C’s garden shed to C’s garage
D liable for trespass to goods, but not conversion
D, claiming to own C’s bicycle, ‘sells’ it to a third party, but does not physically touch or move the bicycle
D liable for conversion, but not trespass
D destroys C’s bicycle by intentionally crushing it
D liable for trespass to goods and conversion
Lancashire and Yorkshire Rail Co, and others v MacNicoll [1918-19] All ER Rep 537, Atkin J at 541
- ‘It appears to me plain that dealing with goods in a manner inconsistent with the right of the true owner amounts to a conversion, providing it is also established that there is an intention on the part of the defendant in so doing to deny the owner's right or to assert a right which is inconsistent with the owner's right: But that intention is conclusively proved if the defendant has taken the goods as his own or used the goods as his own.’
What does cause of action require?
- Some voluntary act inconsistent with ownership of another
- Disposing of goods (e.g. contract of sale), damaging goods (but not minor damage), destroying goods or altering their nature, detaining goods
- But mere removal (asportation) of goods not enough
- Claimant must have possession (or right to immediate possession)
- Chattels and documentary intangibles can be converted but not pure intangibles: OBG Ltd v Allan [2007] UKHL 21, [2008] 1 AC 1
If there is no paper representation, no contractual claim, ur property is not covered = HL authority.
:star:
White v Withers LLP [2009] EWCA Civ 1122
- Wife involved in divorce proceedings removes husband’s documents and passes them to lawyers
- Aims to prevent husband concealing his wealth
- Husband sues wife and wife’s lawyers
- Various claims including trespass and conversion
- Attempt made by defendants to strike out claim
- QBD: action struck out, CA: husband’s appeal allowed
Trespass to goods: paras 44–50
Conversion: paras 51–53
Torts (Interference with Goods) Act 1977
- Section 1: ‘In this Act “wrongful interference”, or “wrongful interference with goods”, means (a) conversion of goods (also called trover), (b) trespass to goods, (c) negligence so far as it results in damage to goods or to an interest in goods, (d) subject to section 2, any other tort so far as it results in damage to goods or to an interest in goods … ’
- Section 14: ‘“goods” includes all chattels personal other than things in action and money’
- Section 3 ‘(1) In proceedings for wrongful interference against a person who is in possession or in control of the goods relief may be given in accordance with this section, so far as appropriate.
(2) The relief is (a) an order for delivery of the goods, and for payment of any consequential damages, or (b) an order for delivery of the goods, but giving the defendant the alternative of paying damages by reference to the value of the goods, together in either alternative with payment of any consequential damages, or (c) damages.’
- Ct can order a remedy, but in most cases its just the mkt value of the item. Ct has discretion: like fam heirloom, can request for it to be resplaced.
Section 8
‘(1) The defendant in an action for wrongful interference shall be entitled to show, in accordance with rules of court, that a third party has a better right than the plaintiff as respects all or any part of the interest claimed by the plaintiff, or in right of which he sues, and any rule of law (sometimes called jus tertii) to the contrary is abolished.’
But third party would have to be identified: a specific individual / entitiTY
See Costello v Chief Constable of Derbyshire, para 15
:star: 3. negligence
C must have property rights to goods if u r going to sue in negligence
- The Aliakmon [1986] AC 785, Lord Brandon at 809:‘ … there is a long line of authority for a principle of law that, in order to enable a person to claim in negligence for loss caused to him by reason of loss of or damage to property, he must have had either the legal ownership of or a possessory title to the property concerned at the time when the loss or damage occurred, and it is not enough for him to have only had contractual rights in relation to such property which have been adversely affected by the loss of or damage to it.’
- Claimant in The Aliakmon would now have claim against carrier under contract of carriage
- Carriage of Goods by Sea Act 1992 provides a specific statutory exception to privity
- See Lord Goff in White v Jones [1995] 2 AC 207, 264–65
- Shell UK Ltd v Total UK Ltd [2011] QB 86
Property held on trust by legal owner for beneficiary
CA: beneficial owner of property, not in possession, entitled to recover for economic loss caused by damage to property as long as it can join legal owner in proceedings (i.e. owed a duty of care by defendant)
- Generally need legal interest to sue in negligence. If u r beneficial owner, u have possession. U join the full owner, u can still sue under neg.
Security interests
Non-possessory
- Mortgage
- Transfer of mortgagor’s legal title to mortgagee
Mortgagor usually retains possession and importantly has an equity of redemption
Cf. mortgages in land law: Law of Property Act 1925, ss 85 and 86
- Charge
- Involves creation of new proprietary rights in secured property without transfer of ownership or possession
Classified as fixed or floating depending on debtor’s right to use property subject to the charge