The deposit of title deeds to secure the repayment of 400 pounds was accompanied by a memorandum of the deposit, with an undertaking to execute a legal mortgage if asked to do so.
Held: When, two years after the deposit of the title deeds, the owner executed a conveyance of the property to a purchaser, whose agent (a former solicitor’s clerk) never asked to see the deeds, the equities of the case depended on whether the purchaser had acted with such with gross negligence that she had to be postponed to the equitable rights of the chargee. In order that a purchaser for value, who has acquired the legal estate without notice of a prior equitable mortgage of the property, may be postponed to that mortgage, it is not necessary to shew that he has been guilty of fraud, or negligence amounting to fraud; it is sufficient that he has been guilty of negligence so gross as to render it unjust to deprive the prior mortgagee of his priority.
[1899] 2 Ch 264
England and Wales
Cited by:
Cited – R Griggs Group Ltd and others v Evans and others (No 2) ChD 12-May-2004
A logo had been created for the claimants, by an independent sub-contractor. They sought assignment of their legal title, but, knowing of the claimant’s interest the copyright was assigned to a third party out of the jurisdiction. The claimant . .
These lists may be incomplete.
Updated: 12 July 2021; Ref: scu.199512
