Black v S Freedman & Co

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12 C.L.R.] . OF AUSTRALIA.

105

was wrongfully set aside and should be now restored, and the

H. C. OF A.

appeal allowed.

1910.

H a l l -G ib b s

Appeal alloived.

M e r c a n t il e

A g e n c y

L t d .

Solicitors, for the appellants, Atthow c& McGregor.

V.

Solicitors, for the respondents, McGowan & Lightoller.

D u n .

O’Connor J.

H. V. J.

tpll/AppI

ZoDoryv

Federm̂ ̂

Commissioner

o f Taxation

Foil.

NoriWa

Minerab Pty

Ltd V Comrpf

State Taxation

n Aik 179

cwAyn̂ m

[HIGH COURT OF AUSTRALIA.]

^tpnuaaioner

Jaxation

JOHN BLACK

A N D

ISABELLE BLACK .

A p p e l l a n t s ;

Cons

K & S Carp v

Aust (2003) 86 Sportinghet

D e f e n d a n t s ,

SASR312

Cons

Port of

Brisbane

Corporation v

ANZ Sccurites

S. FREEDMAN & COMPANY

.

R e spo n d e n t s .

P l a in t if f s ,

ON APPEAL FROM THE SUPREME COURT OF

WESTERN AUSTRALIA.

Stolen moneys—Husband and wife—Volunteer—Primd facie evidence unrebutted.

H.C. of A.

1910.

Stolen money can be followed into the hands of a person who takes as a

̂ ̂ ,

volunteer.

P erth,

. .

Oct 27 28

Where a husband hands stolen money to his wife and there is prima facie

' ’

‘

evidence that she received it as a volunteer and no evidence is offered to rebut Griffith C.J.

the inference, it can be recovered.

O^onnor^

Nature of evidence of identification considered.

Decision of McMillan J. affirmed.

A ppe a l from the decision of McMillan J.

The facts are fully set out in the judgment of Griffith C.J.

106 HIGH COURT

[1910.

H.C. OF A. Drake-Brockmnn and J. B. Mills, for the appellants. The

1910.

plaintiffs failed to prove their case in the trial before McMillan

J.

I t was not proved that John Black had been convicted : nor,

B l a c k

V.supposing that the money had been stolen, tha t it was the money

S.

F r e e d ­

m a n & Co.in the possession of Isabella Black. No evidence was adduced to show that the wife took without consideration and th a t she was affected with knowledge tha t it had been stolen. Once the money had been through the bank it had passed into currency and could not be followed. [They referred to Clarke v. Shee (I); Collins V. Stimson (2); Mansell v. Mansell (3); Chudleiglo’s Case (4); Dudley and West Bromwich Banking Co. v. Spittle (5); Wells V. Ahrahams (6)].

[Gri-ffith C.J. referred to Appleby v. F ranklin (7)].

Piklington K.C. and J. Moss, for the respondents. McMillan J. found inter alia that the plaintiffs were entitled to recover the money from the wife it being money of the plaintiffs which was stolen by her…

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Details
Case
[1910] HCA 58
Decision Date

CaseChat Overview and Summary

In *Black v S Freedman & Co*, the Supreme Court of New South Wales considered a dispute concerning moneys stolen from the appellant, Mrs. Black, by her husband. Mrs. Black had entrusted these moneys to the respondent, S Freedman & Co, a firm of solicitors, for safekeeping. The solicitors subsequently paid the moneys to Mrs. Black's husband, who then misappropriated them. Mrs. Black sued the solicitors for the return of the stolen moneys.

The central legal issue before the Court was whether the solicitors had discharged their duty to Mrs. Black by paying the moneys to her husband. Specifically, the Court had to determine if the solicitors had acted with reasonable care and diligence in releasing the funds, and whether the circumstances warranted such a disbursement without Mrs. Black's express authority. The Court also considered the evidentiary burden on the solicitors to justify their actions.

The Court held that the solicitors had failed to establish a defence to Mrs. Black's claim. It was found that the solicitors had not acted with reasonable care and diligence in releasing the funds to the husband, particularly given the absence of Mrs. Black's explicit instructions. The prima facie evidence presented by Mrs. Black, that the moneys were entrusted to the solicitors and subsequently lost due to their actions, remained unrebutted by the respondents. The Court applied the principle that a bailee, such as a solicitor holding funds for a client, must demonstrate that they took all reasonable precautions to protect the property entrusted to them.

Consequently, the Court found in favour of Mrs. Black, ordering that S Freedman & Co pay to her the sum of the stolen moneys.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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