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E - Equity of Exoneration


29/8/17

INSOL FUNDING COMPANY LTD v COWLAM [2017] EWHC 1822 (Ch)

The defendants initially intended each other to have equal shares in a property which they purchased in joint names but without any express declaration of trust.  As a result of an agreement as to beneficial ownership of the property after its purchase, they were found to hold the property on a constructive trust as tenants in common, with the first defendant having an 80% share and the second defendant 20%.  The first defendant’s claims to further rights over the second defendant's share by way of an equity of exoneration and subrogation were dismissed.  The first defendant had not been in the position of a guarantor or surety for the liabilities of the second defendant nor had the second defendant been unjustly enriched at the first defendant’s expense.


17/1/14

DAY v SHAW [2014] EWHC 36 (Ch)

A wife was entitled to an equity of exoneration against her husband so that borrowing was paid first from his share of sale proceeds where the couple charged their property to secure the husband’s guarantee of the borrowing of a company.




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