Reuben Delor V. Norli Foli (1952)

LawGlobal Hub Judgment Report – West Africa Court of Appeal

Contract—Loan secured by goods—Authority to take goods in default.
Tort—Taking of goods pursuant to contract.

Facts

The dispute arose out of a contract of loan; a creditor (Delor) lent money to a debtor (Foli) who undertook in the contract to repay by monthly instalments, secured the loan with his lorry, and gave his creditor the right, in default of payment, to seize the lorry for the debt. The debtor failed to pay instalments, the creditor asked for payment but not being paid, took the lorry without opposition from the debtor.

The creditor sued the debtor claiming delivery of the Road licence and Petrol Permit, and the debtor sued him for damages for wrongful seizure and for the return of the lorry. The two suits were consolidated. The trial Judge held that the seizure was a trespass, dismissed the creditor’s claim and awarded the debtor damages with an order for the return of the lorry. The creditor appealed.

For the appellant it was argued that there was no rule preventing a person from authorising another to seize a chattel belonging to him; for the respondent that the appellant was not entitled to seize the lorry without first going to Court for help.

Held

A person may confer the right upon another to seize a chattel; the document in this case granted a licence to the creditor, should the debtor default in the payment of instalments, to seize the lorry for the debt; consequently there was no trespass.

Semble: The creditor was entitled to have all such steps taken by the debtor as were necessary to transfer the lorry to him.

Appeal allowed.