Day v Shaw & Anor

Day v Shaw & Anor

Mrs Shaw is entitled to be indemnified by Mr Shaw in relation to the debt owed to Barclays, and her right to indemnity gives her a proprietary right over Mr Shaw’s share in the property, which takes priority over Mr Day’s charging order. The liability under the mortgage to Barclays should fall first on Mr Shaw’s share, leaving Mr Day’s charging order without property to attach.

Parties
Claimant/appellant: Andrew James Day; Defendant/respondent: Jeffrey Graham Shaw; Defendant/respondent: Patricia Ann Shaw
Jurisdiction
England and Wales
Judgment Date
17 January 2014
Procedural Posture
Appeal / Judgment on Appeal
Outcome
Appeal dismissed
Legal Topics
Equity of Exoneration, Indemnity, Joint Ownership, Charging Orders, Guarantees, Mortgages
Property Law Equity Insolvency Equity of Exoneration Indemnity Joint Ownership Charging Orders Guarantees +1 more

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Parties

Andrew James Day

Claimant/appellant

Jeffrey Graham Shaw

Defendant/respondent

Patricia Ann Shaw

Defendant/respondent

Procedural Posture

Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether Mrs Shaw is entitled to be indemnified by Mr Shaw in relation to her liability under the second charge and whether any such right is the subject of an equity of exoneration
  2. 2 Whether Mr Day's charging order attaches to Mr Shaw's share in the property

Ratio Decidendi

Mrs Shaw is entitled to be indemnified by Mr Shaw in relation to the debt owed to Barclays, and her right to indemnity gives her a proprietary right over Mr Shaw’s share in the property, which takes priority over Mr Day’s charging order. The liability under the mortgage to Barclays should fall first on Mr Shaw’s share, leaving Mr Day’s charging order without property to attach.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Any consequential matters to be raised in writing within 14 days of judgment being handed down