PERSONAL PROPERTY - ALIENATION - VOLUNTARY ALIENATION - VOLUNTARY ALIENATION BY DELIVERY - IN GENERAL - DELIVERY OF SHIP
An American ship, subject to a mortgage made in America, which vested the legal title to the ship in an American citizen, was sold in England. The evidence proved that the American law did not require notice of an incumbrance upon an American ship to be indorsed upon her register. There was conflicting evidence as to whether it was customary to make such indorsement, or whether purchasers in England were accustomed, from a clean register, to presume the non-existence of incumbrances. Notice of the incumbrance in question was, with the privity of the mortgagee, intentionally kept of the ship’s register, in order to facilitate her sale, from the proceeds of which the mortgagee was to be paid off: Held by intentionally concealing his charge, the mortgagee had disabled himself from setting up his legal title as against the purchaser for valuable consideration with no direct notice of the incumbrance.
A ship is not like an ordinary personal chattel, it does not pass by delivery, nor does the possession of it prove the title to it (Turner LJ).
A ship is not like an ordinary personal chattel, it does not pass by delivery, nor does the possession of it prove the title to it (Turner LJ).
(1) A ship is not like an ordinary chattel, which passes by delivery, and there is no market overt for ships.
(2) The legal title of a mortgagee of a ship who, for the purpose of facilitating a sale by the mortgagor, conceals his mortgage, cannot prevail in equity against a purchaser for valuable consideration without notice.
The registered owner of an American ship, mortgaged her by a bill of sale duly recorded, as required by the American law, for making a valid mortgage, but no notice of the mortgage was indorsed on the certificate of registry, such indorsement not being required by the American law, and in this case being purposely omitted in order to facilitate the sale of the ship. The ship was then, with the consent of the mortgagee, sent to England, with a power of attorney authorising the captain to sell her. Afterwards the mortgagor, without the knowledge of the mortgagee, revoked the power of attorney authorising the captain to sell the ship, and executed a new power to another person under which the ship was sold. A bill filed by the mortgagee against the purchaser to declare and enforce his legal rights as mortgagee, was dismissed.
(2) The legal title of a mortgagee of a ship who, for the purpose of facilitating a sale by the mortgagor, conceals his mortgage, cannot prevail in equity against a purchaser for valuable consideration without notice.
The registered owner of an American ship, mortgaged her by a bill of sale duly recorded, as required by the American law, for making a valid mortgage, but no notice of the mortgage was indorsed on the certificate of registry, such indorsement not being required by the American law, and in this case being purposely omitted in order to facilitate the sale of the ship. The ship was then, with the consent of the mortgagee, sent to England, with a power of attorney authorising the captain to sell her. Afterwards the mortgagor, without the knowledge of the mortgagee, revoked the power of attorney authorising the captain to sell the ship, and executed a new power to another person under which the ship was sold. A bill filed by the mortgagee against the purchaser to declare and enforce his legal rights as mortgagee, was dismissed.
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