Re Mahon, A Bankrupt

• Jurisdiction: Ireland
• Judgment Date: 31 May 1918
• Date: 31 May 1918
• Court: King's Bench Division (Ireland)

In re Mahon, A Bankrupt.

K. B. Div.

CASES

DETERMINED BY

THE KING'S BENCH DIVISION

OF

THE HIGH COURT OF JUSTICE IN IRELAND,

AND ON APPEAL THEREFROM IN

THE COURT OF APPEAL,

AND BY

THE COURT FOR CROWN CASES RESERVED.

1918.

Bankruptcy — Order and disposition — Lease of horse — Reputed ownership — Lessor's chattel in bankrupt's possession — Custom of particular business or trade — Bankruptcy Act, 1857 (20 & 21 Vict. c. 60), s. 313.

L. was the owner of a racehorse, and on 9th September, 1916, leased it to the bankrupt for three years on the terms that he should stable and keep the horse, and pay all expenses of running him, and that L. should receive half the stakes won. The lease was registered in accordance with Racing and Hunt Rules to that effect, and the details of such registration appeared in the Irish Racing Calendar for the information of parties interested in turf matters. It was proved that the practice of leasing racehorses was common and well known to persons concerned in or interested in horse racing. The horse (whose winnings were considerable) had been raced by the bankrupt in his own name, and was in his actual possession at the date of his bankruptcy, and during the currency of the lease.

Held, that the bankrupt was not the reputed owner of the horse within the meaning of section 313 of the Irish Bankrupt and Insolvent Act, 1857.

Before September, 1916, a horse called “Vagabond” was owned by Miss Adela Constance Langrishe. He was a thoroughbred, had been trained at the Curragh, and appeared to have been of considerable value. By a document in writing, dated the 9th September, 1916, Miss Langrishe leased the horse to the bankrupt on the terms that he was to keep the horse, to pay all expenses in connexion with running him, and that Miss Langrishe was to receive half the stakes won by the horse. The bankrupt appears to have been successful in his operations during the period he was in possession of the horse, and before January, 1918, the winnings amounted to £215.

The lease was on the 9th of September, 1916, registered under Rule 94 of the Rules of Racing and under Rule 93 of the Irish National Hunt Steeplechase, and appears in the Irish Racing Calendar of September 15th, 1916, as follows:—Lease under Rule 94 of the Rules of Racing and Rule 93 of the I.N.H.S. Rules.—Horse, “Vagabond,” three years. Lessee, Mr. R. A. Mahon. Lessor, Miss A. C. Langrishe. Date of lodgment, September 9th.

Two affidavits were put in dealing with the matter, one by Miss Langrishe, in which she stated the facts, and the other by Mr. Charles Brindley, the Keeper of the Matchbook, who deposed as follows:— “It is a recognized and widelyk nown custom and usage for owners of racehorses in Ireland to lease them to other parties, and No. 94 of the Rules of Racing and No. 93 of the Irish National Hunt Steeplechase Committee require any lease of a racehorse to be registered with me in the Registry Office in 14 Upper Merrion Street, and publication of such registration appears in the issue of the Irish Racing Calendar next following the date of such registration for the information of all parties interested in turf matters, and is quoted in the issue of the Irish Times next succeeding such issue of the Irish Racing Calendar. Such lease can be for a definite term of years or for a racing career; and it is to my own knowledge a well-known and recognized custom and usage of the turf for owners of racehorses to lease racehorses for the term of their racing career.”

M'Gonigal K.C., for the assignees:—

This alleged custom is limited to persons interested in racing. A custom of trade by which goods are left in the possession of persons to whom they do not belong must, in order to exclude the doctrine of reputed ownership, be a custom known in business generally, and not merely to persons dealing in a particular market: In re Goetz, Jonas, & Co. (1); Ex parte Powell, In re Mathews (2). The custom must be well proved, and shown to be known not only to persons in the same trade, but to others likely to be creditors: In re Hill (3): Ex parte Watkins, In re Couston (4). Registration of a bill of sale has no effect...