Torts (Interference with Goods) Act 1977: Changes and Provisions, Study notes of Art

Download Torts (Interference with Goods) Act 1977: Changes and Provisions and more Study notes Art in PDF only on Docsity! Changes to legislation: There are currently no known outstanding effects for the Torts (Interference with Goods) Act 1977. (See end of Document for details) Torts (Interference with Goods) Act 1977 1977 CHAPTER 32 Preliminary 1 Definition of “wrongful interference with goods”. 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 at 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. [F1and references in this Act (however worded) to proceedings for wrongful interference or to a claim or right to a claim for wrongful interference shall include references to proceedings by virtue of Part I of the Consumer Protection Act 1987 [F2or Part II of the Consumer Protection (Northern Ireland) Order 1987] (product liability) in respect of any damage to goods or to an interest in goods or, as the case may be, to a claim or right to claim by virtue of that Part in respect of any such damage.] Textual Amendments F1 Words inserted after paragraph (d) by Consumer Protection Act 1987 (c. 43, SIF 109:1), ss. 41(2), 47(1)(2), 48, Sch. 4 para. 5 F2 Words inserted by S.I. 1987/2049 (N.I. 20), arts. 1(5), 35(1), Sch. 3 para. 3 Detention of goods 2 Abolition of detinue. (1) Detinue is abolished. 2 Torts (Interference with Goods) Act 1977 (c. 32) Document Generated: 2021-03-27 Changes to legislation: There are currently no known outstanding effects for the Torts (Interference with Goods) Act 1977. (See end of Document for details) (2) An action lies in conversion for loss or destruction of goods which a bailee has allowed to happen in breach of his duty to his bailor (that is to say it lies in a case which is not otherwise conversion, but would have been detinue before detinue was abolished). 3 Form of judgment where goods are detained. (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. (3) Subject to rules of court— (a) relief shall be given under only one of paragraphs (a), (b) and (c) of subsection (2), (b) relief under paragraph (a) of subsection (2) is at the discretion of the court, and the claimant may choose between the others. (4) If it is shown to the satisfaction of the court that an 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 to the value of the goods. (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 determined by 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 to be made by the claimant to reflect the 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 require the bailor to pay the bailee a sum reflecting the difference. (7) Where under subsection (1) or subsection (2) of section 6 an allowance is to be made in respect of an improvement of 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 of the goods, that allowance to be made by the claimant. (8) This section is without prejudice— (a) to the remedies afforded by section 133 of the M1Consumer Credit Act 1974, or Torts (Interference with Goods) Act 1977 (c. 32) Document Generated: 2021-03-27 5 Changes to legislation: There are currently no known outstanding effects for the Torts (Interference with Goods) Act 1977. (See end of Document for details) (4) Where under section 7(3) the claimant accounts over to another person (the “third party”) so as to compensate (under all heads) the third party for the whole of his interest in the goods, the third party’s title to that interest is extinguished. (5) This section has effect subject to any agreement varying the respective rights of the parties to the agreement, and where the claim is made in court proceedings has effect subject to any order of the court. 6 Allowance for improvement of the goods. (1) If in proceedings for wrongful interference against a person (the “improver”) who has improved the goods, it is shown that the improver acted in the mistaken but honest belief that he had a good title to them, an allowance shall be made for the extent to which, at the time as at which the goods fall to be valued in assessing damages, the value of the goods is attributable to the improvement. (2) If, in proceedings for wrongful interference against a person (“the purchaser”) who has purported to purchase the goods— (a) from the improver, or (b) where after such a purported sale the goods passed by a further purported sale on one or more occasions, on any such occasion, it is shown that the purchaser acted in good faith, an allowance shall be made on the principle set out in subsection (1). 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 improver sues the improver for failure of consideration, and the improver acted in good faith, subsection (3) below will ordinarily make a comparable reduction in the damages he recovers from the improver. (3) If in a case within subsection (2) the person purporting to sell the goods acted in good faith, then in proceedings by the purchaser for recovery 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 disposition of goods as it applies to a purported sale of goods. Liability to two or more claimants 7 Double liability. (1) In this section “ double liability” means the double liability of the wrongdoer which can arise— (a) where one of two or more rights of action for wrongful interference is founded on a possessory title, or (b) where the measure of damages in an action 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. 6 Torts (Interference with Goods) Act 1977 (c. 32) Document Generated: 2021-03-27 Changes to legislation: There are currently no known outstanding effects for the Torts (Interference with Goods) Act 1977. (See end of Document for details) (2) In proceedings to which any two or more claimants are parties, the relief shall be such as to avoid double liability of the wrongdoer as between those claimants. (3) On satisfaction, in whole or in part, of any claim for an amount exceeding that recoverable if subsection (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 reimburse the 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. 8 Competing rights to the goods. (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. (2) Rules of court relating to proceedings for wrongful interference may— (a) require the plaintiff to give particulars 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 comply with any direction given by the court on such an application, authorise the court to deprive him of any right of action against the defendant 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 making rules of court. 9 Concurrent actions. (1) This section applies where goods are the subject of 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 for wrongful interference. (3) If proceedings have been brought[F12in England and Wales in the county court or in Northern Ireland] in a county court on one of those claims, [F13rules of court or ]county court rules may waive, or allow a court to waive, any limit (financial or territorial) on the jurisdiction of county courts in [F14the County Courts Act 1984] or the County Courts [F15(Northern Ireland) Order 1980] so as to allow another of those claims to be brought in the [F16same] court. Torts (Interference with Goods) Act 1977 (c. 32) Document Generated: 2021-03-27 7 Changes to legislation: There are currently no known outstanding effects for the Torts (Interference with Goods) Act 1977. (See end of Document for details) (4) If proceedings are brought on one of the claims in the High Court, and proceedings on any other are brought [F12in England and Wales in the county court or in Northern Ireland] 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 (b) order security for costs or impose such other terms as the court thinks fit. Textual Amendments F12 S. 9(3): words inserted after "brought" (semble, where it first occurs) and s. 9(4): words inserted after "brought" (semble where it second occurs) (22.4.2014) by Crime and Courts Act 2013 (c. 22), s. 61(3), Sch. 9 para. 133(d); S.I. 2014/954, art. 2(c) (with art. 3) (with transitional provisions and savings in S.I. 2014/956, arts. 3-11); S.I. 2014/954, art. 2(c) (with art. 3) (with transitional provisions and savings in S.I. 2014/956, arts. 3-11) F13 Words in s. 9(3) inserted (22.4.2014) by Crime and Courts Act 2013 (c. 22), s. 61(3), Sch. 9 para. 133(e)(i); S.I. 2014/954, art. 2(c) (with art. 3) (with transitional provisions and savings in S.I. 2014/956, arts. 3-11) F14 Words substituted by County Courts Act 1984 (c. 28, SIF 34), s. 148(1), Sch. 2 para. 65 F15 Words substituted by S.I. 1980/397 (N.I. 3), art. 68(2), Sch. 1 Pt. II F16 Word in s. 9(3) substituted (22.4.2014) by Crime and Courts Act 2013 (c. 22), s. 61(3), Sch. 9 para. 133(e)(ii); S.I. 2014/954, art. 2(c) (with art. 3) (with transitional provisions and savings in S.I. 2014/956, arts. 3-11) Conversion and trespass to goods 10 Co-owners. (1) Co-ownership is no defence to an action founded on conversion or trespass to goods where the defendant without the authority of the other co-owner— (a) destroys the goods, or disposes of the goods in a way giving a good title to the entire property in the goods, or otherwise does anything equivalent to the destruction of the other’s interest in the goods, or (b) purports to dispose of the goods in a way which would give a good title to the entire property in the goods if he was acting with the authority of all co- owners of the goods. (2) Subsection (1) shall not affect the law concerning execution or enforcement of judgments, or concerning any form of distress. (3) Subsection (1)(a) is by way of restatement of existing law so far as it relates to conversion. 11 Minor amendments. (1) Contributory negligence is no defence in proceedings founded on conversion, or on intentional trespass to goods. (2) Receipt of goods by way of pledge is conversion if the delivery of the goods is conversion. 10 Torts (Interference with Goods) Act 1977 (c. 32) Document Generated: 2021-03-27 Changes to legislation: There are currently no known outstanding effects for the Torts (Interference with Goods) Act 1977. (See end of Document for details) 13 Sale authorised by the court. N.I. (1) If a bailee of the goods to which section 12 applies satisfies the court that he is entitled to sell the goods under 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— (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 the bailor to the bailee in respect of the goods, and (c) may direct the payment into court of the net proceeds of sale, less any amount deducted under paragraph (b), to be held to the credit of the bailor. (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 a good title to the purchaser as against the bailor. (3) [F17In this section “the court”, in relation to England and Wales, means the High Court or the county court and, in relation to Northern Ireland, means the High Court or a county court, save that a county court in Northern Ireland has jurisdiction in the proceedings only if ]the value of the goods does not exceed the county court limit. Extent Information E2 This version of this provision extends to Northern Ireland only; a separate version has been created for England and Wales only. Textual Amendments F17 Words in s. 13(3) substituted (22.4.2014) by Crime and Courts Act 2013 (c. 22), s. 61(3), Sch. 9 para. 133(f); S.I. 2014/954, art. 2(c) (with art. 3) (with transitional provisions and savings in S.I. 2014/956, arts. 3-11) Supplemental 14 Interpretation. (1) In this Act, unless the context otherwise requires— [F19“ county court limit” means the [F20amount which for the time being is the county court limit for the purposes of section 15 of the County Courts Act 1984], or in Northern Ireland the current amount mentioned in [F21Article 10(1) of the County Courts (Northern Ireland) Order 1980],] “ enactment” includes an enactment contained in an Act of the Parliament of Northern Ireland or an Order in Council made under the M5Northern Ireland (Temporary 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 Northern Ireland. (2) References in this Act to any enactment include references to that enactment as amended, extended or applied by or under that or any other enactment. Torts (Interference with Goods) Act 1977 (c. 32) Document Generated: 2021-03-27 11 Changes to legislation: There are currently no known outstanding effects for the Torts (Interference with Goods) Act 1977. (See end of Document for details) Textual Amendments F19 Definition in s. 14(1) omitted (E.W.) (01.07.1991) by virtue of S.I.1991/724, art. 2(8), Sch. Pt.I (with art. 12). F20 Words substituted by County Courts Act 1984 (c. 28, SIF 34), s. 148(1), Sch. 2 para. 66 F21 Words substituted by S.I. 1980/397 (N.I. 3), art. 68(2), Sch. 1 Pt. II Marginal Citations M5 1972 c. 22. 15 Repeal. (1) The M6Disposal of Uncollected Goods Act 1952 is hereby repealed. (2) In England and Wales that repeal shall not affect goods bailed before the commencement of 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 commencement of this Act. Modifications etc. (not altering text) C4 S. 15(2) modified by S.I. 1977/1910, art. 4 Marginal Citations M6 1952 c. 43. 16 Extent and application to the Crown. (1) Section 15 shall extend to Scotland, but otherwise this Act shall not extend to Scotland. (2) This Act, except section 15, extends to Northern Ireland. (3) This Act shall bind the Crown, but as regards the Crown’s liability in tort shall not bind the Crown further than the Crown is made liable in tort by the M7Crown Proceedings Act 1947. Marginal Citations M7 1947 c. 44. 17 Short title, etc. (1) This Act may be cited as the Torts (Interference with Goods) Act 1977. (2) This Act shall come into force on such day as the Lord Chancellor may by order contained in a statutory instrument appoint, and such an order may appoint different dates for different provisions or for different purposes. (3) Schedule 2 to this Act contains transitional provisions. 12 Torts (Interference with Goods) Act 1977 (c. 32) Document Generated: 2021-03-27 Changes to legislation: There are currently no known outstanding effects for the Torts (Interference with Goods) Act 1977. (See end of Document for details) Modifications etc. (not altering text) C5 Power of appointment conferred by s. 17(2) fully exercised ; S.I. 1977/1910, 1978/627 and 1980/2024