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Torts (Interference with
Goods) Act^1977
CHAPTER 32
ARRANGEMENT OF SECTIONS
Preliminary Section
1. Definition of"wrongful interference with goods ".
Detention ofgoods
2. Abolition ofdetinue.
3. Form ofjudgmentwhere goods aredetained.
- Interlocutory reliefwheregoods^ are^ detained.
Damages
5. Extinction^ oftitle^ on^ satisfactionofclaim^ fordamages.
6. Allowance^ for^ improvementofthegoods.
Liability to two or more claimants
- Double liability.
- Competing rights to the goods.
- Concurrent actions.
Conversion and trespass to^ goods
- Co-owners.
11. Minoramendments.
Uncollectedgoods
12. Bailee's powerofsale.
- Sale authorised bythe court. A
ii c.^32 Torts^ (Interferencewith^ Goods)^ Act^1977
Supplemental Section
- Interpretation.
- Repeal.
- Extent and application^ to the Crown.
- Short title etc.
SCHEDULES: Schedule 1-Uncollected^ goods.
Schedule 2-Transitional.
2
1974 c. 39.
c. 32 Torts(Interference with Goods) Act 1977
(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 alternativewithpayment ofany consequentialdamages, or (c) damages.
(3) Subjectto rules of court-
(a) relief shallbe givenunder onlyone ofparagraphs (a), (b)
and (c)^ of subsection (2),
(b) relief under paragraph (a) of subsection (2) is at thedis-
cretion of the court, and the claimant may choose
between theothers.
(4) If it is shown to the satisfactionof the court thatan order
under subsection (2)(a) has not been complied with, the court
may-
(a) revoke the order, or the relevant part of it, and
(b) make an order for payment of damages by reference
tothe^ valueof thegoods.
(5) Where an order is made under subsection (2)(b) the
defendant may^ satisfy the order^ by returning the goods^ at any
time before execution of^ judgment,^ but^ without^ prejudice^ to
liability to pay any consequential damages.
(6) An order for delivery of the goods under subsection (2)(a)
or (b) may impose such conditions as may be determinedby the
court, or^ pursuant^ to^ rules^ of^ court,^ and^ in^ particular,^ where
damages by reference^ to^ the^ value^ of^ the^ goods^ would^ not^ be
the whole^ of^ the^ value^ of^ the^ goods,^ may^ require^ an^ allowance
tobe made bythe claimantto^ reflectthe difference.
For example,^ a^ bailor's action^ against^ the^ bailee may be one
in which the measure of damages is not the full value of the
goods, and then the court may order delivery of the goods, but
requirethebailorto paythebaileeasumreflectingthedifference.
(7) Where under^ subsection^ (1) or subsection (2) of section 6
an allowance^ is^ to^ be^ made^ in respect^ of an improvementof the
goods, and^ an^ order^ is^ made^ under^ subsection (2) (a) or (b), the
court may assess the allowance to be made (^) in respect of the
improvement, and by the order require, as a condition for
delivery ofthe^ goods,^ thatallowance^ tobe^ made^ bytheclaimant.
(8) This sectionis without prejudice-
(a) tothe remediesaffordedby section 133 of the Consumer
Credit Act 1974, or
Torts (Interferencewith Goods) Act 1977 c. 32 3
(b) to the remediesafforded by sections35, 42 and 44 of the
Hire-Purchase Act 1965, or to those sections of the 1965 c. 66.
Hire-Purchase Act (Northern Ireland) 1966 (so long 1967 c. 42
as those sections respectively remain in force), or (N.l.).
(c) to any jurisdictionto afford ancillary or incidental relief.
4.-(1) In this section "proceedings" means proceedingsinterlocutory
for wrongful interference. reliefwhere goods are (2) On theapplication of any person (^) inaccordance withrulesdetained.
of court, the High Court shall, in such circumstances as may be
specifiedintherules, have power to makean orderprovidingfor
the delivery up of any goods which are or may become the
subject matter of subsequent proceedings in the court, or as to
whichany question (^) may arisein proceedings.
(3) Delivery shallbe,as theorder mayprovide, tothe claimant
or to a person appointed (^) by the court for the purpose,and shall
be on such terms and conditions as may be specified in the
order.
(4) The powerto makerules of court under section 99 of the (^1925) c. 49.
Supreme Court of Judicature (Consolidation) Act 1925 or under 1962 c. 30.
section 7 of the Northern Ireland Act 1962 shall include power
to make rules of court as to the manner in which an applica-
tion for^ such an order canbe made, andas to the circumstances
in which such an order can be made; and any such rules may
include such incidental, supplementary and consequential pro-
visions as the authority making the rulesmay considernecessary
orexpedient.
(5) The preceding provisions of this section shall have effect
in relation to county courts as they have effect in relation to
the High^ Court,^ and^ as^ if^ in^ those^ provisions references^ to rules
of court^ and^ to^ section^99 of^ the^ said^ Actof^1925 or^ section 7
of the Northern Ireland Act 1962 included references to county
court rules and to section 102 of the County Courts Act 1959 1959 c.^ 22.
or section 146 of the County Courts Act (Northern Ireland) 1959 c.^ 25.
- (N.I.).
Damages
5.-(1) Where^ damages^ for^ wrongful^ interference^ are, orExtinction
would fall to be,^ assessed^ on^ the^ footing^ that^ the^ claimant is oftitleon
being compensated-^ satisfaction ofclaim for
(a) for the whole of his interest in the goods, or damages.
(b) for^ the^ whole^ of^ his^ interest^ in^ the^ goods^ subject^ to a
reduction for contributory negligence,
payment of^ the^ assessed^ damages^ (under^ all^ heads),^ or^ as^ the
case may^ be^ settlement^ of^ a^ claim^ for^ damages^ for^ the^ wrong
(underall^ heads),^ extinguishes^ theclaimant'stitle^ tothatinterest.
Torts (Interferencewith Goods) Act^1977 c.^32
For example, where a person in good faith^ buys^ a^ stolen^ car
from the improver and is sued in conversion by the true owner
the damages may be reduced to reflect the improvement, but
if the person who bought the stolen car from the improversues
theimprover forfailure ofconsideration, andtheimproveracted
in good faith, (^) subsection (3) below will ordinarily make a^ com-
parablereduction inthe damages he recoversfromthe improver.
(3) If in a case within subsection^ (2) the^ person^ purportingto
sell the goods acted in good faith, then in proceedings by the
purchaser forrecovery of the purchase price because of^ failure
of consideration, or in any other proceedings founded^ on^ that
failure of consideration, an allowance shall, where appropriate,
be made on the principle set out in subsection (1).
(4) This section applies, with the necessary modifications,^ to
a purported bailment^ or^ other^ dispositionof^ goods^ as^ it^ applies to a purported sale^ of^ goods.
Liability to two or more claimants
9.-(1) In this section " double liability"^ means the^ doubleDouble
liability of the wrongdoer which can arise-^ liability.
(a) where one of two or morerights of^ action^ for^ wrongful
interference is founded on^ a^ possessory^ title,^ or
(b) where the measure ofdamages^ in^ anaction^ for^ wrongful
interference founded on^ a^ proprietary^ title^ is^ or
includes the entire^ value^ of^ the^ goods,^ although^ the
interest is^ one^ of^ two^ or^ more^ interests^ in^ the^ goods.
(2) In proceedings to^ which^ any^ two^ or^ more^ claimants^ are
parties, thereliefshall^ be^ such^ asto^ avoid^ double^ liability^ ofthe
wrongdoer as^ between^ thoseclaimants.
(3) On^ satisfaction,^ in^ whole^ or^ in^ part,^ of^ any^ claim^ for
an amount exceeding^ that^ recoverable^ ifsubsection^ (2)^ applied,
the claimant^ is^ liable^ to^ account^ over^ to^ the^ other^ person
having a^ right^ to^ claim^ to^ such^ extent^ as^ will^ avoid^ double
liability.
(4) Where, as^ the^ result^ of^ enforcement^ of^ a^ double^ liability,
any claimant is^ unjustly^ enriched^ to^ any^ extent,^ he^ shall^ be
liable to reimbursethe^ wrongdoer^ to^ that^ extent.
For example, if^ a^ converter^ of^ goods^ pays^ damages^ first^ to^ a
finder of the^ goods,^ and^ then^ to^ the^ true^ owner,^ the^ finder^ is
unjustly enriched^ unless^ he^ accounts^ over^ to^ the^ true^ owner
under subsection^ (3)^ ;^ and^ then^ the^ true^ owner^ is^ unjustly
enriched and^ becomes^ liable^ to^ reimburse^ the^ converter^ of^ the
goods.
6 c. 32 Torts (^) (Interference with Goods) Act 1977
Competing rights to the goods.
8.-(1) The defendant in an action for wrongful interference
shall be (^) entitled to show, in (^) accordance with rules of court,
thata third party has a better right than the plaintiff as respects
all orany part ofthe interest claimed by the plaintiff, or inright
ofwhich^ he sues, and any (^) rule of law(sometimes called justertii) tothe contrary is abolished.
(2) Rules of court relating to proceedings for wrongful
interference may-
(a) require the plaintiff to giveparticulars of his title, (b) require the plaintiff (^) to identify any person who, to his knowledge, has or (^) claims any interest in the goods,
(c) authorise the defendant to apply for directions as to
whether any person should be joined with a view to establishing whether he has a better right than the plaintiff, or has a claim as a result of which the defendant might be doubly liable, (d) where a party fails to appear on an application within paragraph (c), or to complywith anydirection given by the court on such an application, authorise the court to deprive him of any right of action against the defen-
dant for the wrong either unconditionally, or subject
to such terms or conditions as may be specified.
(3) Subsection (2) is without prejudice to any other power of makingrules of court.
Concurrent 9.-(1) This section applies where goods are the subject of
actions. two or more claims for wrongful interference (whether or not
the (^) claims are founded on the same wrongful act, and whether or not any of^ the^ claims relates^ also^ to^ other^ goods). (2) Where goods are the subject of two^ or more claims^ under
section 6 this section shall apply as if any claim under section
6(3) were a claim forwrongful interference.
(3) Ifproceedings havebeen brought ina^ county^ court^ on^ one of those claims, county court^ rules^ may^ waive,^ or^ allow^ a^ court
to waive, any limit (financial or^ territorial)^ on^ the^ jurisdiction
1959 c. 22. of county courts in the County Courts Act 1959 or the County
1959 c. 25 Courts Act (Northern Ireland) 1959 so^ as^ to^ allow^ another^ of
(I) those claims to be broughtin^ the^ same^ county^ court.
(4) If proceedings are brought on one of the claims in the
High Court,^ and^ proceedings^ on^ any^ other^ are^ brought in a
county court, whether prior to the High Court proceedings or not, the High Court may, on the application of the defendant, after notice has been given to the claimant in the (^) county court proceedings- (a) order that^ the county court proceedings be transferred to the High^ Court, and
8 c. 32 Torts(Interferencewith Goods) Act 1977
(3) Ifthe bailee-
(a) (^) has in accordance with Part IIof (^) Schedule 1 to this Act given notice (^) to the bailor of his intention to sell the goodsunder this subsection,or (b) has failed (^) to trace or communicate with the bailor with a view (^) to giving him such a notice, after having
takenreasonable steps forthe purpose,
and is reasonably satisfied (^) that the bailor owns the goods, he shall be entitled, as against (^) the bailor, to sell the goods.
(4) Where subsection (3) applies (^) but the bailor did not in fact own the goods, a sale under (^) this section, or under section 13, shall not give a good title as against (^) the owner, or as against a person claiming under the owner.
(5) A bailee exercising his powers under subsection (3) shall
be liable to account to the bailor for the proceeds of sale, less
any costs of sale, and-
(a) the account shall be takenon the footing thatthe bailee should have adopted the best method of sale reason- ably available in the circumstances, and (b) where^ subsection^ (3)(a) applies, any^ sum payable^ in respect of the goods by the bailor to the bailee which accrued due before the bailee gave notice of intention to sell the goods shall be deductible from the proceeds of sale.
(6) A sale^ duly^ made^ under this^ section gives a good title to
the purchaser as against the bailor.
(7) In this section, section 13, and Schedule 1 to this Act,
(a) "bailor" and "bailee " include their respective succes-
sors intitle, and (b) references to what is payable, paid or due to the bailee in respect of the goodsinclude references to whatwould be payableby the bailorto the bailee as^ a condition of delivery of the goods at^ the relevant time.
(8) This section, and Schedule 1 tothis Act, have effect subject tothetermsofthe bailment.
(9) This section shall not^ apply^ where^ the^ goods^ were^ bailed beforethe commencementof^ this^ Act.
Sale 13.-(1) Ifa bailee of the goods to^ which^ section^12 applies
authorised by^ satisfies the court that he is entitled to sell the (^) goods under
thecourt. section 12, or that he would be so entitled if he had given any
notice required in accordance with Schedule 1 to^ this^ Act, the
court--
Torts (Interferencewith Goods)^ Act^1977 c.^32
(a) may authorise (^) the sale of the goods subject to^ such
terms and conditions, if any, as may be specified in
the order,and
(b) may^ authorise^ the^ bailee^ to^ deduct^ from^ the^ proceeds
of sale any costs of sale and any amount due from
thebailor tothe baileeinrespectof thegoods, and
(c) may direct the payment into^ court of the net^ proceeds
of sale, less any amount deducted under paragraph
(b), tobeheldtothecredit ofthebailor.
(2) A decision of the court authorising a sale under this
section shall, subject to any right of appeal, be conclusive, as against (^) the bailor, of the bailee's (^) entitlement to sell the goods,
and gives agood title to the purchaser as against the bailor.
(3) In this section " the court" means the High Court or a
county court, and a county court shall have jurisdiction in the
proceedings if the value of the goods does not exceed the
county courtlimit.
Supplemental
14.-(1) In this Act, unless the context otherwise requires-Interpretation.
"county courtlimit "means the current limiton jurisdiction
in section 39 of the County Courts Act 1959, or in 1959 c. 22.
Northern Ireland the current amount mentioned in
section 10(1) of the County Courts Act (Northern 1959 c. 25
Ireland) 1959, (N.I.).
"enactment" includes an enactment contained in an Act
of the Parliament of Northern Ireland or an (^) Order in Council (^) made under the Northern Ireland (Temporary 1972c. 22.
Provisions) Act 1972, or in a Measure of the Northern
Ireland Assembly,
"goods" includes all chattels personal other than things in
action and (^) money,
"High Court" includes the High Court of Justice in
NorthernIreland.
(2) References in this Act to any enactment include refer-
ences to that enactment (^) as amended, extended or applied by or under that or (^) any other enactment.
15.-(1) The Disposal of Uncollected Goods Act 1952 is Repeal.
hereby repealed. (^1952) c. 43.
(2) In England and Wales that repeal shall not affect goods
bailed before^ thecommencementof^ this^ Act.
(3) In^ Scotland^ that repeal^ shall^ not^ affect^ the^ rights^ of^ the
person with whom (^) the goods are deposited where the notice of
intention to sell the goods under section 1(3)(c) of the said Act
of 1952 was^ delivered^ before^ the^ commencementof^ this^ Act.
Torts (Interferencewith Goods)^ Act^1977 c.^32
SCHEDULES
SCHEDULE 1
UNCOLLECTED GOODS
PART I
POWER TO IMPOSE OBLIGATION TO COLLECT GOODS
1.-(1) For the purposes of section 12(1) a bailee may, in the
circumstances specified in this Part of this Schedule, by notice given to the bailor impose on him an obligation to take delivery of the goods.
(2) The notice shall be in writing, and may be given either-
(a) by delivering it to the bailor, or
(b) by leaving itathis proper address, or
(c) by post.
(3) The notice shall-
(a) specify the^ name^ and^ address^ ofthe^ bailee, and^ give^ sufficient particulars of the goods and the address or place where they are held, and (b) (^) state that the goods are ready for delivery to the bailor, or where combined with a notice terminating the contract of bailment, will be ready for delivery when the contract is terminated, and
(c) specify the amount, ifany, which is payable by the bailor to
the bailee in respect of the goods and which became^ due before the givingof the notice.
(4) Where the notice is sent by^ post^ it^ may^ be^ combined^ with^ a
notice under Part II of this Schedule if^ the^ notice^ is^ sent^ by^ post
in a waycomplyingwith paragraph 6(4).
(5) References in this Part of this^ Schedule to^ taking^ delivery of the goods include, where the terms^ of^ the^ bailment^ admit,^ refer- ences to giving directions as to their delivery. (6) This Partof this Scheduleis^ withoutprejudice^ tothe^ provisions of any contract requiring^ the^ bailor^ to^ take^ delivery^ of^ the^ goods.
Goods accepted forrepair or other treatment
- If a bailee has accepted goods for repair or^ other treatment on the terms (expressed or implied) that they^ will^ be^ re-delivered to the bailor when the repair or other treatment^ has^ been^ carried out, the notice may be given at any time^ after^ the^ repair^ or^ other treatment has been carried out.
Goods accepted for valuation or^ appraisal
3. If a bailee has accepted goods in order^ to value^ or^ appraise
them,thenotice may be given at anytime^ afterthebailee^ has^ carried out the valuationorappraisal.
Section 12.
11
12 c.^32 Torts (Interferencewith Goods) Act^1977
SCII. 1 Storage, warehousing, etc.
4.-(1) If a bailee is in possession of goods which he^ has^ held
as custodian, and his obligation as custodian has come to^ an^ end, thenotice may be given atanytime afterthe endingof theobligation, or may be combined with any notice terminating his obligation as custodian. (2) This paragraph shall not apply to goods held by a^ person as mercantile agent, that is to say by a person having in^ the customary course of his^ business as a mercantile agent^ authority either to sell goods or to consign goods for the purpose of sale, or to buy goods, orto raise money on the security of goods.
Supplemental
- Paragraphs 2,^3 and 4 apply^ whether^ or^ not^ the^ bailor has paid any amount due^ to^ the^ bailee^ in^ respect^ of^ the^ goods,^ and whether or not the^ bailment^ is^ for^ reward,^ or^ in^ the^ course^ of business, or gratuitous.
PART II
NOTICE OF INTENTION TO SELL GOODS
6.-(1) Anotice^ under^ section^ 12(3)^ shall-
(a) specify the name and address^ of the^ bailee,^ andgive sufficient particulars of the goods^ and^ the^ address^ or^ place^ where- they are held,^ and (b) specify the date on or after which the bailee proposes to sell the goods, and (c) specify the^ amount,^ if^ any,^ which^ is^ payable^ by^ the^ bailor^ to the bailee in respect of the goods, and which became due before the giving^ of^ the^ notice. (2) The period between giving^ of^ the^ notice^ and^ the^ date^ specified in the notice as that on or after^ which^ thebaileeproposes^ to^ exercise
the powerof sale shall be such as^ will^ afford^ the^ bailor^ a^ reasonable
opportunity oftaking deliveryof^ the^ goods. (3) If^ any^ amount^ is^ payable^ in^ respect^ of^ the^ goods^ by^ the bailor to the^ bailee,^ and^ became^ due^ before^ giving^ of^ the^ notice, the said period^ shall^ be^ notless^ than^ three^ months. (4) The notice shall be in writing and shall be sent by post in a registered letter, orbythe recorded deliveryservice.
7.-(1) The^ bailee^ shall^ not^ give^ a^ notice^ under^ section^ 12(3),^ or
exercise his right^ to^ sell^ the^ goods^ pursuant^ to^ such^ a^ notice,^ at^ a time when he has^ notice^ that,^ because^ of^ a^ dispute^ concerning^ the goods, the bailor is questioning or refusing to pay all or any part of (^) what the bailee claims to be due to him in respect of the goods. (2) This^ paragraph^ shall^ be^ left^ out^ of^ account^ in^ determining under section 13(1) whether a^ bailee^ of^ goods^ is^ entitled^ to sell the goods under section 12, or would be^ so^ entitled^ if he had given any notice^ required^ in^ accordance^ with^ this^ Schedule.
c. (^32) Torts(Interferencewith Goods) Act 1977
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