Prosser v. Keeton (a.k.a. Hey, that's my watch!)

Prosser v. Keeton
143 Unrep. Case 1113.

Justice Allen delivered opinion

Facts:

• Prosser was owner of a valuable watch
• Watch was stolen by an unknown person (later discovered to be Thurlow)
• Thurlow sold stolen watch to Keeton
• Thurlow told Keeton needed to sell watch to raise money for ill mother
• Keeton and Thurlow attended the same church
• Keeton reasonably believed Thurlow was owner and paid Thurlow for watch
• Thurlow disappears
• Prosser sees Keeton wearing watch about a month later
• Prosser able to identify watch by secret mark on back
• Prosser demanded return, Keeton declines advising pd money and would not return it
• Trial ct orders Keeton to return watch or pay its reasonable value
  

Issue:
Does a person who acquired an item that turns out to be stolen have to return it or give the original owner the value of the item?

Holding:
No, the person does not have to return the item or pay the value of the item to the original owner.

Reasoning:
Judge Bateman

• Since neither party is guilty of wrongdoing, Keeton keeps the watch
• Prosser was in a better position to prevent the loss
  

Justice Compton

• Making buyer liable for purchases would stop capitalism
• Social policy requires Keeton to keep the watch
• No evidence that Prosser was better able to prevent theft than Keeton was able to detect watch was stolen
  

Judgment: Affirmed

Opinions:
Justice Allen dissented

• thief did not have title to watch so therefore was unable to transfer it
• Keeton is liable because he converted the watch