Hitchiner v. Stewart

Hitchiner, Hunter & Company gunpowder manufacturers raised an action “rei vindication” or an action to recover the price of gunpowder against Stewart and Ninian. The Defenders bought some gunpowder from pursuer’s agents (Messrs and J. Robertson) without knowing that Hitchiner, Hunter & Company owned the gunpowder. Messrs and J. Robertson became bankrupt and Defendants applied a set off of some debts that they have with each other. The Lords cited the general principle of law "Bona Fide" to sustain that: (i) Defendants purchased and transacted fona fide with Pursuer's agents, due to Defenders were entitled to plead compensation on a debt that they had with Robertson and company, and (ii) Pursuers did not have an action for recovery against Stewart and Ninian, as third party of the relationship with their agents.