Nelson and Others v First Caribbean International Bank (Barbados) Ltd: PC 3 Sep 2014

nelson_FCIBPC1409

(St Lucia) A loan had been secured against land by a hypothec. A landslip damged the charged property, and the borrowers now challenged the lender’s right to pursue them personally.
Held: The apepeal should be dismissed. Reading the hypothecary obligation and facilities letter together, as they must be, the personal obligation accepted was clear. The assertion that eth bank was limited to its hypothecary was erroneous in failing to ‘distinguish between the law of obligations and the law of real rights. This is a fundamental distinction in civilian legal systems. Obligations are a juridical relationship between persons, namely the debtor and the creditor. Real rights are concerned with things, such as an owner’s right to possess a thing which can be asserted against the world.’

Lady Hale, Lord Kerr, Lord Wilson, Lord Carnwath, Lord Hodge
[2014] UKPC 30
Bailii

Commonwealth, Banking

Updated: 01 November 2021; Ref: scu.536384