LEGAL PRINCIPLE: TORT LAW – Detinue – Right of True Owner Against Transferee of Bailee – Unauthorised Pledge by Bailee Does Not Justify Detention

An unauthorised pledge by a bailee is an act inconsistent with the bailment. This act terminates the bailment or gives the bailor the right to terminate it. Once terminated, the bailor has immediate right to possession. The bailor can sue both the bailee and any transferee (pawnee) for recovery of the goods. The transferee cannot justify detention by claiming they took from the bailee in good faith. The bailee’s lack of authority is fatal to the transferee’s defence. The principle protects the bailor’s ownership. The transferee must seek recourse against the bailee. The true owner’s right to possession is paramount.