Wylie's Executrix v. M'Jannet [1901] ScotLR 39_179 (26 November 1901)

Wylie's Executrix v. M'Jannet [1901] ScotLR 39_179 (26 November 1901)

A lender who pays premiums and holds a life insurance policy as security, without formal assignation, acquires no preferential right over other creditors to the policy proceeds; payment of premiums creates only an ordinary debt, and a law-agent's lien does not extend to cash advances.

Citation
[1901] ScotLR 39_179
Parties
Respondent: Wylie's Executrix; Appellant/claimant: W. D. M'Jannet
Jurisdiction
Scotland
Judgment Date
26 November 1901
Procedural Posture
Multiplepoinding / Appeal From Sheriff Substitute to Court of Session Inner House Second Division
Outcome
Appeal dismissed; interlocutor of Sheriff-Substitute recalled; no preferential claim for appellant; remit to Sheriff for adjudication of all creditor claims on the fund.
Legal Topics
Preferential Claims, Life Insurance Policy, Law Agent's Lien, Security for Debt
Insolvency Succession Insurance Law Preferential Claims Life Insurance Policy Law Agent's Lien Security for Debt

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Parties

Wylie's Executrix

Respondent

W. D. M'Jannet

Appellant/claimant

Procedural Posture

Multiplepoinding / Appeal From Sheriff Substitute to Court of Session Inner House Second Division

Legal Issues

  1. 1 Whether a lender who paid life insurance premiums and held the policy as security, without formal assignation, is entitled to preferential ranking over other creditors on the policy proceeds
  2. 2 Whether a law agent's lien applies to cash advances for premiums

Ratio Decidendi

A lender who pays premiums and holds a life insurance policy as security, without formal assignation, acquires no preferential right over other creditors to the policy proceeds; payment of premiums creates only an ordinary debt, and a law-agent's lien does not extend to cash advances.

Court Disposition

Appeal dismissed; interlocutor of Sheriff-Substitute recalled; no preferential claim for appellant; remit to Sheriff for adjudication of all creditor claims on the fund.

Orders

  • Recall interlocutor of 14th June 1901.
  • Find that W. D. M'Jannet paid all premiums due under the policy, partly at Wylie's request and partly to maintain security for debt.