Property Law

Northern Counties of England Fire Insurance Co v Whipp (1884) 26 Ch D 482

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Facts
  • The Appellant executed a legal mortgage to their company, and put the deeds in the safe which he had keys to.
  • Eventually he removed the deeds and gave everything except the mortgage to Mrs Whipp, not telling her about the security
Held
  • The Courts will postpone a legal mortgage to a subsequent equitable interest when;
  • The legal mortgagee has participated in the fraud – refusing to give a title deed may be sufficient to establish this unless there is explanation
  • Where the legal mortgagee has made the mortgagor his agent, and the security has been misrepresented by that agent

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