Highbury Pension Fund Management Company & Anor v Zirfin Investments Management Ltd & Ors [2013] EWCA Civ 1283 (03 October 2013)

Highbury Pension Fund Management Company & Anor v Zirfin Investments Management Ltd & Ors [2013] EWCA Civ 1283 (03 October 2013)

Clause 8 of Zirfin's guarantee does not restrict Highbury's right to require Barclays to marshall its securities, as the equity of marshalling arises between the two creditors (Barclays and Highbury) and not between the debtor and creditor; contractual modification of subrogation rights between Zirfin and Barclays does not affect Highbury's independent equitable right against Barclays.

Citation
[2013] EWCA Civ 1283
Parties
Applicants/appellants: Highbury Pension Fund Management Company and another; Defendants/respondents: Zirfin Investments Management Ltd and others
Jurisdiction
England and Wales
Judgment Date
03 October 2013
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal allowed
Legal Topics
Marshalling of Securities, Subrogation, Suretyship, Equity of Exoneration, Contractual Modification of Equitable Rights
Equity Banking and Finance Insolvency Marshalling of Securities Subrogation Suretyship Equity of Exoneration Contractual Modification of Equitable Rights

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 10 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Highbury Pension Fund Management Company and another

Applicants/appellants

Zirfin Investments Management Ltd and others

Defendants/respondents

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether clause 8 of Zirfin's guarantee restricts Highbury's right to require Barclays to marshall its securities
  2. 2 Whether Highbury's right to marshalling is limited by contractual terms between Zirfin and Barclays
  3. 3 Whether the principle of marshalling applies in the extended context involving surety and principal debtor relationships

Ratio Decidendi

Clause 8 of Zirfin's guarantee does not restrict Highbury's right to require Barclays to marshall its securities, as the equity of marshalling arises between the two creditors (Barclays and Highbury) and not between the debtor and creditor; contractual modification of subrogation rights between Zirfin and Barclays does not affect Highbury's independent equitable right against Barclays.

Court Disposition

Appeal allowed

Orders

  • Highbury's right to require Barclays to marshall its securities is not restricted by clause 8 of the guarantee.
  • Highbury may realise the securities immediately, provided Barclays retains priority for repayment.