Law Reform Commission of British Columbia Report on Wrongful Interference with Goods Lrc 127 November 1992

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Law Reform Commission of British Columbia Report on Wrongful Interference with Goods Lrc 127 November 1992 LAW REFORM COMMISSION OF BRITISH COLUMBIA REPORT ON WRONGFUL INTERFERENCE WITH GOODS LRC 127 NOVEMBER 1992 The Law Reform Commission of British Columbia was established by the Law Reform Commission Act in 1969 and began functioning in 1970. The Commissioners are: ARTHUR L. CLOSE, Q.C. Chairman LYMAN R. ROBINSON, Q.C. PETER T. BURNS, Q.C. THOMAS G. ANDERSON Gregory G. Blue and Elizabeth S. Liu are Legal Research Officers to the Commission. Sharon St. Michael is Secretary to the Commission. Linda Grant provides text processing and technical copy preparation. The Commission offices are located at Suite 601, Chancery Place, 865 Hornby Street, Vancouver, B.C. V6Z 2G3. The Law Reform Commission gratefully acknowledges the financial support of the Law Foundation of British Columbia in carrying out this project. Canadian Cataloguing in Publication Data Law Reform Commission of British Columbia Report on wrongful interference with goods (LRC, ISSN 0843-6053; 127) Includes bibliographical references: p. ISBN 0-7718-9312-4 1. Trover and conversion - British Columbia. 2. Personal property - British Columbia. I. Title. II. Series: Law Reform Commission of British Columbia. LRC; 127. KEB238.A72L38 1992 346.71103'6 C93-092009-0 KF705.L38 1992 TO THE HONOURABLE COLIN GABELMANN ATTORNEY GENERAL OF THE PROVINCE OF BRITISH COLUMBIA: The Law Reform Commission of British Columbia has the honour to present the following: REPORT ON WRONGFUL INTERFERENCE WITH GOODS Late 19th century reforms rationalized civil procedure and in so doing simplified large portions of the law. Various rights and remedies once regarded as separate and distinct matters of law were consolidated and through this process were refined, simplified and made to operate more efficiently. But some aspects of the law escaped these reforms and still bear the mark of antique notions of civil procedure. These unaltered areas of the law are more technical and complex than they need to be and lead to doubt and confusion about legal rights and methods of seeking a just resolution of disputes. The Commission touched on one part of this problem a number of years ago in Report on the Replevin Act (LRC 38, 1978). The recommendations for modernization were speedily adopted. The old remedies of conversion and detinue, essentially untouched by the 19th century reforms, are part of another area of the law seriously in need of attention. The relief to which a claimant is entitled, under these ancient remedies, can vary significantly depending on the facts in issue. Situations that are functionally similar can end up being treated quite differently. This Report recommends changes to the law that will rationalize and put on a modern footing the remedies available to parties where there has been a wrongful interference with personal property. The approach recommended is to replace the older remedies with a new statutory remedy giving the courts flexibility to tailor relief to the needs of the case before them, uninhibited by limitations that were shaped by historical considerations that for some time now have lost their relevance. TABLE OF CONTENTS I INTRODUCTION.........................................................7 A. Personal Property......................................................7 B. The Common Law Actions..............................................7 C. The Working Paper....................................................8 II THE COMMON LAW ACTIONS ...........................................9 A. Introduction..........................................................9 B. The Common Law Actions.............................................1 0 C. Some Examples......................................................1 1 D. Features of the Principal Common Law Actions.. 1 3 1. Detinue........................................................1 4 (a) Generally..................................................1 4 (b) Summary..................................................1 6 2. Trespass to Chattels. .............................................1 6 (a) Generally..................................................1 6 (b) Summary..................................................1 7 3. Conversion. ....................................................1 8 (a) Generally..................................................1 8 (b) Contrasted With Trespass to Chattels and Detinue. 1 8 (c) Who May Sue?..............................................1 9 (d) Misfeasance and Nonfeasance..................................2 0 (e) What Kinds of Property May Be Converted?. 2 0 (f) Measure of Damages.........................................2 1 (i) Date of Conversion. ...................................2 1 (ii) Proceeds.............................................2 2 (iii) Nominal Damages.....................................2 3 (iv) Summary............................................2 3 E. Categories of Distinctions Drawn By the Law. 2 5 1. Ownership and Possession.........................................2 5 2. Immediate Rights and Other Kinds of Rights: Who May Sue? ...............................................................2 6 3. Direct Interference and Indirect Interference. 2 6 4. Kinds of Available Remedies.......................................2 6 5. Third Party Rights................................................2 7 6. Summary.......................................................2 8 III LEGACIES OF THE LAW................................................2 9 A. Introduction.........................................................2 9 B. Modern Procedure....................................................3 0 C. The Former Procedural Law and the Common Law Torts. 3 1 1. Introduction.....................................................3 1 2. Divided Jurisdiction of The Courts.. 3 1 3. The Forms of Action..............................................3 2 4. Multiple Claims. ................................................3 5 5. Multiple Parties..................................................3 6 6. Pleading. ......................................................3 6 (a) Narrowing the Issues in Dispute. 3 6 (b) Pleading and Legal Fictions....................................3 8 D. Summary...........................................................4 0 IV THE NEED FOR REFORM...............................................4 2 A. Introduction.........................................................4 2 B. The Likelihood of a Common Law Solution. 4 2 1. Detinue, Its Death and Revival......................................4 2 2. The Common Law Actions in the 20th Century.. 4 3 3. Failure of Earlier Reforms. ........................................4 6 4. Factors that May Explain Why the Law has Stopped Developing. 4 7 C. Conclusion..........................................................4 8 V REFORM: RECOMMENDATIONS AND DRAFT LEGISLATION.............4 9 A. Introduction.........................................................4 9 B. Models For Reform...................................................4 9 C. General Principles....................................................5 1 1. A Single Tort. ..................................................5 2 2. Available to Anyone with an Interest in the Property. 5 2 3. Compensation Limited to Actual Loss. 5 2 4. A Full Range of Remedies.........................................5 3 5. Summary.......................................................5 4 D. Specific Issues.......................................................5 4 1. Relationship with Negligence.......................................5 4 2. Third Party Interests, Defences and Representative Actions. 5 4 3. Co-owners......................................................5 6 4. Innocent Parties..................................................5 8 5. Return of Property to One Who Does Not Have an Immediate Right of Possession...............................................6 0 6. Personal Property Security Legislation.. 6 0 7. Other Issues.....................................................6 1 8. Draft Property Law Amendment Act.................................6 2 E. Acknowledgments....................................................7 0 APPENDIX C...............................................................7 1 CONSEQUENTIAL AMENDMENTS TO THE LIMITATION ACT..............7 1 A. Introduction.........................................................7 1 B. Strategy for Revising the Limitation Act...................................7 1 C. Draft Legislation. ....................................................7 2 CHAPTER I INTRODUCTION A. Personal Property Two separate streams of law, developed over the centuries, protect property rights. Personal property, for many reasons, is treated differently from land. (The phrase “personal property” is usually used to mean all property other than land, or property affixed to land.)1 The legal framework of rights and remedies relating to personal property is comprehensive. Parts of the law developed by analogy to the law of real property, but much of it is unique. B. The Common Law Actions Several actions provide remedies for wrongs relating to personal property. These actions have obscure names, reflecting their antiquity. The main ones are conversion (sometimes called trover), detinue and trespass to chattels. Related actions provide remedies in special circumstances. Even a brief look finds unexpected levels of legal complexity, the necessity for which may be questioned. How well is the law working? This Report addresses these and other questions to decide whether the law needs to be changed.2
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