DANIELS v. UNITED DOMINIONS TRUST, LTD.

[1951] 2 Lloyd's Rep. 553

KING'S BENCH DIVISION.

Before Mr. Justice Slade.

Sale of ship-Breach of contract-Injurious falsehood-Sale of yacht by mortgagees in possession - Equipment and accessories excluded from sale - Disputed ownership-Damages-Yacht mortgaged to defendants by owner (C.) - Mortgage expressed to charge yacht and (inter alia) her appurtenances - Default by mortgagor - Court order authorizing sale by mortgagees - Purported charter of yacht by C. to M. -Removal by M. of certain equipment when he entered into possession - Bankruptcy of C. and M., charter being disclaimed by M.'s trustee in bankruptcy-Sale of yacht by defendants to plaintiff, it being agreed that "the vendors are not to be liable to get in or in any way in respect of the goods or property formerly on the boat which have been removed, or for any expenses or claims which may arise by reason of the sale of the boat after this date"-Offer by plaintiff to purchase equipment from M.'s trustee.-Letter from defendants to M.'s trustee objecting to his parting with equipment on ground that they had an interest in the property - Consequent refusal by M.'s trustee to sell equipment to plaintiff -Defendants' claim to equipment subsequently abandoned - Claim by plaintiff for damages, it being alleged that by reason of defendants' action in claiming equipment, plaintiff was thereby prevented from fixing a profitable charter which he was negotiating-Plaintiff's claim brought on alternative grounds: (a) for damages for breach of contract, in that defendants had orally agreed at the time of sale to abandon any further claim to the equipment; (b) for damages resulting from defendants' injurious falsehood in informing M.'s trustee that they had evidence, "after many inquiries, that certain of this equipment" was part of their security -Onus of proof.