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Supreme Court Judgments

Supreme Court Judgments

By Professor Greg Reinhardt

Courts 


Liability in the tort of conversion Sell Your Gold Pty Ltd v Australian Diamond Trading Corporation Pty Ltd [2018] VSCA 355 (unreported, No S APCI 2018 0017, 20 December 2018, Maxwell P, Hargrave and Ashley JJA). The respondent was a diamond wholesaler. The respondent gave possession of five diamonds to one Ben-Simon as bailee subject to the terms of a bailment agreement(a consignment for sale). Ben-Simon pledged the diamonds to the applicant as security for a loan. The applicant was not aware that the respondent was the owner of the diamonds nor was it aware that Ben-Simon was not the owner nor that he had no authority to pledge them. The loan having been repaid, the applicant returned the diamonds to Ben-Simon. The respondent sued the applicant in conversion. The competing arguments as identified by the trial judge at [15] were.

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