McHugh v Union Bank of Canada: PC 1913

There was a mortgage of horses, which the mortgagee needed to drive to market if he was to sell them.
Held: If a mortgagee goes on with a sale of property which is unsaleable as it stands, a duty of care may be imposed on him, when taking the necessary steps, first to render the mortgaged property saleable. The mortgagee owed to the mortgagor a duty to take proper care of the horses whilst driving them to market. The duty imposed on the mortgagee was to take care to preserve, not increase, the value of the security.


Lord Moulton


[1913] AC 299

Cited by:

CitedSilven 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 . .
Lists of cited by and citing cases may be incomplete.

Animals, Equity

Updated: 29 April 2022; Ref: scu.187038