D gave his stockbroker a banker’s draft to invest in exchequer bills. The stockbroker only invested part of it and spent the rest on securities and bullion before attempting to flee the country. D intercepted him and claimed a proprietary right (as the broker was in a fiduciary position) over the bullion and securities. HL held that D could trace the property into the broker’s hands.
Lord Ellenborough CJ: Tracing was possible because the product of the draft was always identifiable. Thus D had priority over general creditors. Only when the produce was turned into money an mixed with other money was tracing impossible. The claim is proprietary