Reading v. Regem
2 KB 268 (1948)

Facts:
The plaintiff was a sergeant in the Royal Army who was making large sums of money basically smuggling goods. When the Crown found out, they confiscated the money.

Issue:
Is the Crown entitled to the money?

Holding:
Yes.

Reasoning:
“If the servant has unjustly enriched himself by virtue of his service without his master’s sanction, he isn’t allowed to keep the money, and it will be given to his master, because he got it solely by reason of the position he occupied as a servant to his master.”

  • So, for example, if he had received the money gambling, the Crown would NOT be entitled to the money.
  • Here, however, the only reason he was able to make the money was because of his position as sergeant.