Whiteley v Delaney: HL 9 Dec 1913

A. mortgaged property in Yorkshire to B. in order to secure a loan of pounds 300. He subsequently granted a second mortgage to the respondent C, and both mortgages were recorded under the Yorkshire Registries Acts. In order to provide the money to pay off C, A’s daughter D undertook to buy the property if she could find someone to advance pounds 300 to pay off B, and she instructed E, a solicitor, to this effect. E, ignorant of the existence of C’s mortgage, arranged for F lending the pounds 300 on mortgage, paid off B, and obtained from him the title-deeds, and prepared three dispositions of the property-( a) B to A, (b) A to D, (c) D to F-in security. C sued F, D, and A to have it declared that in virtue of deed (a) his mortgage had priority over F’s.
Held that F was equitable transferee of B’s first mortgage, and entitled to priority over C.

Lord Chancellor (Viscount Haldane), Lords Kinnear, Dunedin, and Atkinson
[1913] UKHL 855, 51 SLR 855
England and Wales

Land, Equity

Updated: 22 January 2022; Ref: scu.632763