Pilcher v Rawlins
1872 · (1872) LR 7 Ch App 259
Posted By lanbuk.com
- Facts
- A trustee who held money lent it on a mortgage to himself, then reconveyed in a way that hid the trust and mortgaged the land again to lenders who had no notice of the trust.
- Issue
- Were the new lenders bound by the beneficiaries' equitable interests?
- Held
- No. They had acquired the legal estate for value without notice. The could not claim against them.
- Principle
- A of a legal estate for value without notice takes free of prior equitable interests.
- Why it matters
- It is the leading authority on equity's darling.
Words and Latin in this note
- Bona fide purchaser
- A person who buys a legal estate in good faith, for value, without notice of an earlier equitable right. That earlier right does not bind them. Open the note.
- Beneficiary
- A person entitled to the benefit of trust property in equity, who can make the trustees carry out the trust. Open the note.
- Trust
- An arrangement in which a trustee holds property at law but must use it for beneficiaries, or for a charitable purpose. The beneficiaries have the equitable interest. Open the note.
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.