Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
Find up-to-date guidance on points of law and then easily pull up sources to support your advice with Lexis PSL
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
Tim Polli of Tanfield Chambers examines the Supreme Court’s use in an unjust enrichment case of the remedy of subrogation to an unpaid vendor’s lien in Bank of Cyprus UK Ltd v Menelaou.
Bank of Cyprus UK Ltd v Menelaou  UKSC 66,  All ER (D) 38 (Nov)
The appellant’s parents had owned a property over which the respondent bank had two charges totalling £2.2m. When the parents sold that property, they bought a new property in the appellant’s name. The bank released the charges in exchange for a payment of £750,000 of what the parents owed it and a charge over the new property to secure the parents’ remaining debts. However, the charge was not executed properly and the appellant sought its removal from the register. The bank counterclaimed that it should be subrogated to the lien which the vendors of the new property had over the freehold before they were paid. The Supreme Court held that, albeit through no fault of hers, the appellant had been unjustly enriched at the expense of the bank and that, as a remedy, the latter was therefore entitled to the lien on the property.
Subrogation is often employed by a lender in circumstances in which, for some reason, the lender did not have the security that it expected to have for its loan. The disappointed lender may, in some circumstances, be treated as though it had received an assignment of a prior discharged security interest (or even a prior discharged personal claim) or is otherwise entitled to step into the shoes of a prior creditor. There is no assignment—the earlier security or personal right has been discharged in whole or in part—but the disappointed lender is treated as though there has been an assignment of some or all of the rights of the prior creditor.
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
Miranda is a solicitor specialising in leveraged and acquisition finance. She trained at Hogan Lovells International LLP and qualified into the international banking and finance team. During her time at Hogan Lovells she worked on a variety of domestic and cross-border transactions, acting for both borrowers and lenders. She also experienced secondments to Barclays Bank PLC and Kaupthing Bank hf.
0330 161 1234