Rules of accounting. - Right to salary. - Malversation.
Wilson, Gregory, and Company v. John Old
Date: 27 January 1786 Case No. No 22.
A factor receiving a subject from his constituent, tho' it be certified to belong to another person free from any claim of retention, is bound to account to the constituent, and not to the owner.
Click here to view a pdf copy of this documet : PDF Copy
A mercantile house in Scotland transmitted to Old, their factor in the West Indies, a quantity of goods for sale on commission. The goods were ascertained to him as belonging to Wilson, Gregory, and Company, and as being exempted from any claim in behalf of his constituents for commission-premium, or for freight. In consequence of a demand afterwards made by the owners, he promised to remit to them the proceeds of the sale; which, however, he having failed to do, they, on his return to this country, instituted in an action against him. In defence, he alleged that he had accounted for those proceeds to his constituents; and
Pleaded; It is to his constituent alone that a factor is bound to render an account. Other persons, indeed, may have an interest in the subject of the factory; but to that he is not bound to pay any regard beyond the limits of his instructions.
Answered; If it is certified to a factor, that the subject of his factory belongs to a person against whom, as in the present case, neither he himself nor his constituent has any claim, his detaining such property, contrary to the will of the owner, is equally wrongful, as if, without the interposition of the former, he had received it immediately from the hand of the latter.
The Lord Ordinary found, That the factor was bound to render an account to his constituents alone; and
The Court adhered to the interlocutor of the Lord Ordinary.
Lord Ordinary, Stonefield.Act. Morthland, W. Steuart.Alt. A. Campbell.Clerk, Home.
Fol. Dic. v. 3. p. 201. Fac. Col. No 251. p. 385.
