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Law of Tort

Law of Tort. Tutorial weeks 6-7 Question One Presented by: Joseph (50342303) Sing (50295647). Question One. Facts Issues Rules Applications Conclusion. Facts. B&C Co. Ltd ---- Car --  A ( hire-purchase) A --- $6000 monthly--  B&C Co. Ltd. (2 years)

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Law of Tort

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  1. Law of Tort Tutorial weeks 6-7 Question One Presented by: Joseph (50342303) Sing(50295647)

  2. Question One • Facts • Issues • Rules • Applications • Conclusion

  3. Facts • B&C Co. Ltd ---- Car -- A (hire-purchase) • A --- $6000 monthly-- B&C Co. Ltd. (2 years) • A uses illegal method to make him become registered car owner • A -----car----D, an auctioneer • D-----car--X (public auction)

  4. Issues • Can B&C Co. Ltd. sue A, if so, what is the remedies available? • Can B&C Co. Ltd. sue D, if so, what is the remedies available? • Does X get the title of the car?

  5. Rules • Trespass to Chattels • Conversion • Sale of Goods Ordinance s24 • Principle of Jus Tertii

  6. Trespass to Chattels • unlawful interference with the possession of a chattel by P. • direct and intentional act • P have possession or a right to possession

  7. Conversion • intentional act • Someone’s act which is the owner can do only, and seriously inconsistent the possession of goods • D knows the goods do not belong to P or intention not to challenge P’s right is not relevant. • Note that: The difference between trespass to chattels and conversion is: Trespass: not serious interference (liable) Conversion: ONLY Serious interference (liable)

  8. Principle of Jus Tertii • Definition: D claims that he has a better title or is acting for 3rd party who has a better title. • P has possession of the chattel and D does not have a better title, D cannot plead jus tertii. • When P was not in possession of the chattel but relied on his right to possession, D can plead jus tertii.

  9. Cases • Penfolds Wine v Elliott (1947) 74 CLR 204 (supra) • R.H. Willis and Son v British Car Auctions Ltd (1978) • Leake v Loveday (1842) 4 Man & F 972

  10. Penfolds Wine v Elliott (1947) • P sold wines bottle with words “This bottle is the property of Penfolds Wine Ltd” • The bottles could not be used for storing any other product • D brought two empty bottles for own wine and sold • Held: D had committed conversion. • D used bottles for his own trade • D Violated the P’s title to use the bottle

  11. Applications: A’s Remedies • Trespass to chattel: intentionally and directly interference on the possession of the car • Conversion: • Achanged the ownership registration, gave the car to the D for disposal, A committed an act of conversion • Abreached the HP contract • HP contract was void and B&C Co. had the right to immediate possession • In the law of conversion, A gave the Car to D without the consent of B&C Co, will liable in conversion • A was liable the unpaid purchase price to BC Ltd.

  12. R.H. Willis and Son v British Car Auctions Ltd (1978) • P, a motor car dealers, sold a car on hire-purchase terms to C (Mr. Croucher) • In default of the agreement, C entered the car in car auction run by D (auctioneers) • In the auction, the car was sold to the highest bidder • On knowing that the car had been sold, P bought an action against the auctioneers for conversion • Held: the auctioneers were liable in conversion to the true owner since they had sold a chattel to which they did not have any good title

  13. Applications: D’s remedies Conversion: • When A hands over the car D for sale in the public auction. In law, the receipt by D of B&CCo.’s chattel amounts to conversion if D’s act is inconsistent with B&C Co.’s title to the good. • On this basis, D receiving goods for sale to X may render him liable in conversion even if he innocently effects the sales because his act is inconsistent with B&C Co.’s title.

  14. Sale of Goods Ordinance s24 • Where goods are openly sold in a shop or market in Hong Kong, in the ordinary course of the business of such shop or market, the buyer acquires a good title to the goods, provided he buys them in good faith and without notice of any defect or want of title on the part of the seller.

  15. Leake v Loveday (1842) • It was held that where P was not in possession at the time of the conversion but relied on his right to possession, jus tertii could be pleaded by the defendant.

  16. Applications: X’s Title • If B&C Co. will take legal action against X for conversion. X can plead jus tertii as defence • As a buyer in market overt, X may also claim that he has bought the car in good faith and without knowledge of the defeat in the seller’s title

  17. Conclusion B&C Co. may sue A for Trespass to chattels • The remedies: Damage B&C Co. may sue both A and D for conversion • The remedies: Damages -Both A and D are liable to pay the outstanding balance due from B&C Co. ($6000*18=$108000) X’s title to the car • He may get the title as he may plead that he buys the car in the market overt, for bona fide value and without knowledge of defeat in title

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