384. Subrogated rights of person paying off mortgage debt.

384.     Subrogated rights of person paying off mortgage debt.

Subrogation is an equitable remedy to reverse or prevent unjust enrichment1. The remedy is available if:

  1.  

    (1)     the defendant has been enriched at the claimant's expense2;

  2.  

    (2)     such enrichment was unjust3;

  3.  

    (3)     there are no policy reasons for denying a remedy4; and

  4.  

    (4)     there are no defences5.

A lender who advances money which is used to discharge a security will therefore normally be subrogated to the rights under that security6 against a borrower and subsequent incumbrancers7 even though there has been no actual transfer of the security. Frequently in