i-law

Lloyd's Maritime and Commercial Law Quarterly

NEMO DAT AND THE FACTORS ACT

National Employers’ Mutual Gen. Ins. Assn. Ltd. v. Jones 1
Ms Hopkins’ car was stolen. Her insurance company (the respondents) paid her out. In the meantime the car passed rapidly along a chain of sales (or purported sales) until it came into the hands of the appellant, a bona fide purchaser from a firm called Mid-Glamorgan Motors Ltd. The present action was instituted by the respondents for the return of the car or its value.
The appellant contended that title to the car passed to him by virtue of the exception to the nemo dat rule encapsulated in s. 9 of the Factors Act 1889. The general rule is that no one can sell what he does not own. The exception in s. 9 in effect provides that, when a person who has agreed to buy goods acquires possession of them with the consent of the seller, any further disposition of them by him is as effective as if authorized by the owner. Hence, Mr Jones was able to argue that the sale to him was as if authorized by Ms Hopkins herself, albeit she was the innocent victim of a thief and had no way of knowing the whereabouts of her car.
This problem had been anticipated by academic writers in the early 1960s.2 A result favouring the bona fide purchaser so shocked their sensibilities3 that they felt able to reject it without any reasoned explanation of why the words of s. 9 should not be given their apparently obvious, certainly literal, meaning. This academic

297

The rest of this document is only available to i-law.com online subscribers.

If you are already a subscriber, click Log In button.

Copyright © 2025 Maritime Insights & Intelligence Limited. Maritime Insights & Intelligence Limited is registered in England and Wales with company number 13831625 and address 5th Floor, 10 St Bride Street, London, EC4A 4AD, United Kingdom. Lloyd's List Intelligence is a trading name of Maritime Insights & Intelligence Limited.

Lloyd's is the registered trademark of the Society Incorporated by the Lloyd's Act 1871 by the name of Lloyd's.