The agency of a receiver for the mortgagor is one where the principal, the mortgagor, has no say in the appointment or identity of the receiver and is not entitled to give any instructions to the receiver or to dismiss the receiver. ‘For valuable consideration he has committed the management of his property to an attorney whose appointment he cannot interfere with’ and ‘a receiver and manager appointed by a mortgagee under an agreement that he shall be the agent of the mortgagor is in the same position as if appointed by the mortgagor himself, and as if every direction given to him emanated from the mortgagor himself.’
. . And ‘The following results seem to follow from the principles already states : (a) that creditors cannot be made responsible for the liabilities of a business carried on for the purpose, among others, of securing and paying their debts, even though they may have considerable control: . . (b) that a receiver and manager appointed by a mortgagee under an agreement that he shall be the agent of the mortgagor is in the same position as if appointed by the mortgagor himself, and as if every direction given to him emanated from the mortgagor himself : . . (c) that a mortgagee is not made a mortgagee in possession by such an appointment, and would not be even if the mortgagor appointed him to receive income.’
Judges:
Rigby LJ (dissenting)
Citations:
[1896] 1 QB 669, [1896] UKLawRpKQB 78
Links:
Statutes:
Jurisdiction:
England and Wales
Cited by:
Cited – Silven Properties Limited, Chart Enterprises Incorporated v Royal Bank of Scotland Plc, Vooght, Harris CA 21-Oct-2003
The claimants sought damages from mortgagees who had sold their charged properties as receivers. They said they had failed to sell at a proper value. They asked whether the express appointment in the mortgage of receivers as agents of the mortgagor . .
Cited – Silven Properties Limited, Chart Enterprises Incorporated v Royal Bank of Scotland Plc, Vooght, Harris CA 21-Oct-2003
The claimants sought damages from mortgagees who had sold their charged properties as receivers. They said they had failed to sell at a proper value. They asked whether the express appointment in the mortgage of receivers as agents of the mortgagor . .
Cited – Rhodes v Allied Dunbar Pension Services Ltd CA 1989
The intermediate tenant had charged the lease to the bank, which appointed receivers. Both the sub rent and the head rent fell into arrears. The head landlord then served a notice direct on the subtenant requiring him to pay the rent direct to the . .
Appeal from – Gaskell v Gosling HL 1897
Affirmed . .
Lists of cited by and citing cases may be incomplete.
Agency, Land, Contract
Updated: 08 April 2022; Ref: scu.187041