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Sell Your Gold v Australian Diamond Trading Corp (2018) 57 VR 595

Facts: Australian Diamond Corporation was a diamond wholesaler (i.e. owner) and gave possession of 5 diamonds to a diamond dealer (i.e. bailee) on consignment for sale. The bailee pledged the diamonds to Sell Your Gold, as security for a loan, making out that he was the owner of the diamonds. Sell Your Gold returned the diamonds to the dealer once the loan was repaid. The Australian Diamond Corporation found out about the arrangement and sued the applicant for damages in conversion.

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