Court case[1945] KB 509

Major Peel bought Gwernhaylod House in Shropshire in 1938 but never lived in it; it was requisitioned by the Crown during the war and used to billet soldiers. In 1940 Lance-Corporal Hannah, stationed there, found a brooch in a crevice on top of a window frame while adjusting a blackout curtain. He handed it to the police, who kept it for two years and, no owner appearing, gave it to Peel as owner of the house. Peel sold it for 66 pounds. Hannah, who had told the police at the time that he claimed it, sued Peel for its return or its value.

Birkett J reviewed Armory v. Delamirie, Bridges v. Hawkesworth, South Staffordshire Water Co. v. Sharman and Elwes v. Brigg Gas Co. and found the authorities in conflict. He held that Peel was never in physical possession of the premises and had no knowledge of the brooch until it was found, so he could not be said to have possessed it; the brooch was lying loose in the house, not attached to or under the land, so Sharman did not apply; and Hannah, who found it and acted honestly throughout, had a title good against everyone except the true owner. Judgment for Hannah for 66 pounds.