Bona Fide Purchaser Does Not Always Obtain Title

Another case involving the sale of diesel generators to Nigeria and retention of title.

Mr Pollak agreed to buy from Eagle Power five generating sets which were then being held at the Bournemouth premises of J P Morgan. The generating sets were duly paid for and transferred under the supervision of Mr Pollak to Eagle Power's premises in West Bromwich. Eagle Power agreed to sell two of those generating sets to Mr Fadallah in Nigeria. Mr Fadallah paid for them by 17 August 2001; it was agreed that property passed to Mr Fadallah, constructive delivery of the generating sets having taken place. Only on 30 August 2011 did Mr Pollak raise an invoice selling the two generators to Eagle, but doing so under a reservation of title clause. In due course Eagle went into liquidation without having paid Mr Pollak and without having actually delivered the generating sets to Mr Fadallah. The question arose as to whether the goods belonged to Mr Fadallah or to Mr Pollak. Mr Fadallah raised many arguments based on the Sale of Goods Act.

The High Court (Richard...