GAZETTE
JULY 1989
void for want of registration must,
from a practical point of view,
depend on the facts of each case,
i.e. the nature of the goods supplied
or the wording of the supply
contract.
In spite of this, it is the Courts
which are left to find some sort of
equitable solution which will treat
all suppliers on credit, equally. It is
the Courts which are left to answer
the concerns of suppliers of con-
sumables or services that the
estate of an insolvent customer
should be maximised.
Since the early 1980's when the
Courts settled on a consistent legal
interpretation of the law governing
Reservation of Title, suppliers who
go to Court relying on their reserva-
tion of title clauses seem to
approach the bench, cap in hand,
to say that while we accept title to
resin may disappear once it is
caught up in the manufacturing
process, would it be possible that
title to leather might not similarly
disappear when used in the pro-
duction of hand bags
10
or that title
to diesel engines might still be
effective even when they are
connected to other machinery
11
.
These questions could go on
ad
infinitum,
each case being put into
its own pigeon hole. However,
although no universal rule is
apparent, case law seems to
indicate a vague distrust towards
and dislike of reservation of title
clauses on the part of judges, who
recognise that "this area of the law
is . . . a maze if not a minefield."
12
and that "there is no logical reason
why this class of creditor (suppliers
of unconsumed goods) should be
favoured as against other creditors
such as the suppliers of consum-
ables and services'..
13
Reforms
In 1979 the Commission of the
European Communities issued a
proposal for a Council Directive on
the legal consequences of Reserva-
tion of Title.
14
The aim of this draft Directive
however, is not primarily to bring
about reform but rather to
harmonise the laws of the Member
States. With this in mind the
proposal looks at Reservation of
Title from the point of view of
suppliers. Its effect if implemented
in this Jurisdiction would be firstly
to copper fasten the existing law of
Reservation of Title, warts and all
and secondly to strengthen the
position of suppliers with regard to
various restitutionary remedies
which would be made available to
them.
The draft Directive however is
silent on the shortcomings in the
law of Reservation of Title and I
would submit that if adopted and
implemented in this jurisdiction the
Directive would serve only to hinder
any movement towards reform
which the Legislature may wish to
pursue. It is therefore perhaps
fortunate that after eight years the
proposal still remains in draft form.
In 1982 the Cork Committee
issued its report on the Law and
Practice of Insolvency.
15
Having
interviewed many of those in the
front line of this area, the Com-
mittee went on to discuss the sub-
missions made to glean a number
of recommendations.
A large number of suggested
reforms are based on the need for
ce r t a i n ty w i t h o ut wh i ch the
amount of interminable and
expensive litigation in this area will
unavoidably rise. The Committee
WHERE THERE'S A WILL
THIS IS THE WAY...
When a client makes a will in favour of the
Society, it would be appreciated if the bequest
were stated in the following words:
"/ devise and bequeath the sum of
Pounds
to the Irish Cancer Society Limited to be applied by it
for any of the charitable objects of the Society, as it,
the Society, at its absolute discretion, may decide."
All monies received by the Society are expended
within the Republic of Ireland.
"Conquer Cancer Campaign" is a Registered
Business Name and is used by the Society for some
fund raising purposes. The "Cancer
Research Advancement Board"
I D
I I
allocates all Research Grants
I l x l . 3 1
I
on behalf of
A X
T
Q
the Society.
> V ^ L
l \
SOCIETY
5 Northumberland Road
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THE LOST CHILDREN
OF AUTISM
LIKE THE PIPER OF HAML IN AUT I SM CAME
AND TOOK MY CHILD'S SENSES AWAY
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BUT I WI LL FIND MY CHILD
T HOUGH IT MAY T AKE A WH I LE
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BUT T H ROUGH THE TR I ALS AND THE T EARS
AND THE PAIN AND THE FEARS
IT WOU LD HELP ME WI TH
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LET YOUR WILL BE A LEGACY OF HOPE
FOR THE LOST CHILDREN OF AUTISM
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2 16