Court case(1875) LR 7 HL 757

Fowler, a cotton merchant, was induced by the fraud of one Bayley to part with cotton to him. Bayley sold the cotton to Hollins, a cotton broker, who honestly believed Bayley to be the owner and who at once resold it to a spinner for a small commission. The cotton was spun and could not be returned. Fowler sued Hollins in conversion for the value of the cotton.

The House of Lords held Hollins liable. One who deals with goods as if they were his own, or transfers them to a third party so as to deprive the true owner of them, commits conversion, however honest his belief. The judges, answering questions put by the House, distinguished the mere custodian or carrier who holds goods on another's behalf from the person who disposes of them.