Reading v. Regem case brief

READING V. REGEM
2 KB 268, 2 All ER 27 (1948)

FACTS:
-The plaintiff joined the army and was stationed in a hospital in Cairo, Egypt during the war.
-In March, 1944, the P was found in possession of significant sums of money well beyond his means. -P was been assisting some sort of illegal smuggling activity in which  he would sit in a lorry in his uniform which would allow it to pass through all check points unmolested.
-For this activity, P was paid the sum of $20,000 in total.
-This was a violation of his duties in the British Army.
-The British Military took possession of the money.
-P sued to recover the money, claiming that it is his money and should be returned ("it's my money and I want it now").
-The Crown contends that they were bribes received during military employment and that he thus held the money for the Crown.

ISSUE: Is a master entitled to the unauthorized gains of his servant or agent?

HOLDING: Yes. A master is entitled to the unauthorized gains of his servant or agent.

RULES

-An employee must surrender illegal bribes received strictly because of his employment position.

-A servant is accountable to his master for profits he obtains because of his position, if the servant takes advantage of his position and violates his duty of good faith and honesty to make the profit for himself.

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