Defendant 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.
Defendant intercepted him and claimed a proprietary right (as the broker was in a fiduciary position) over the bullion and securities.
HL held that Defendant could trace the property into the broker’s hands.
Tracing was possible because the product of the draft was always identifiable. Thus Defendant 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
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