First in Time, Better in Right

Question 1

Kunstsammlungen zu Weimar v. Elicofon

Answer 1

Facts: Paintings stolen from P museum when USA occupied Germany in 1945. Paintings discovered in possession of D in 1966: D bought from a US serviceman in 1946. D maintains that he purchased the paintings in good faith.

Held: P wins in summary judgement. Not debated that paintings were stolen.

Reasons: “It is a fundamental rule of law in New York that a thief or someone who acquires possession of stolen property after a theft “cannot transfer a good title even to a bona fide purchaser for value (because) (o)nly the true owner’s own conduct, or the operation of law … can act to divest that true owner of title in his property”.

Question 2

Bishopsgate v Transport Brakes

Answer 2

Facts: A gave car to B to put up for auction. The bidding did not reach the requested price and the motor car was withdrawn, but, in the course of the same market, B sold it privately to C, who bought it in good faith and without knowledge of any defect in B’s title. C subsequently sold the car to D.

Held (Denning): A can’t get the car back: reasons of commercial transaction protection, logbook.

Reasons:
- Two competing interests
1. No one can give a better title than they themselves possess
2. Protection of commercial transactions
- Selling in a marketplace should prima facie be good transfer of title
o However, transfer without logbook is suspicious
o Buying car without getting logbook (or without checking name in logbook, or if the logbook looks obviously altered etc) is buying at own risk
- In this case B had the logbook and presented it to C. “It would be carrying the protection of property too far if we were to say that [A] can defeat the title of [C].”