Ratio Decidendi
A mortgage advance obtained by deception did not constitute 'obtaining property belonging to another' under s.15 Theft Act 1968 because the bank transfer created a new chose in action rather than transferring existing property. This lacuna led directly to the Theft Act 1978 amendment and ultimately the Fraud Act 2006.
Fapte
The defendants obtained mortgage advances by making false representations on mortgage applications. They were charged with obtaining property by deception under s.15 Theft Act 1968.
Rezumatul hotărârii
The House of Lords held that when a bank transfer is made, the transferor's chose in action is extinguished and a new chose in action is created in the transferee's account. The money received was not 'property belonging to another'. This exposed a major lacuna in the law, leading to legislative reform.
Citate cheie
"The credit entry in a bank account does not represent existing property belonging to another — it is a new chose in action."
— Lord Goff
Tratament ulterior
Led directly to s.15A and 15B of the Theft Act 1968 (inserted by the Theft (Amendment) Act 1996) and ultimately the Fraud Act 2006.