On appeal from [2011] EWCA Civ 856.

The Court of Appeal had agreed with the respondent that, as the proceeds of sale of a property (which was subject to charges in favour of RBS and the respondent) were used to pay off what was due to RBS, it was entitled under the marshalling principle to look to another property (which only subject to the charge in favour of RBS), in order to obtain payment of the sum which it would have obtained on the sale of the first property if the second property had been sold and the proceeds of sale used to clear the RBS debt. The Supreme Court unanimously allowed the appeal. The statutory background to, and the terms of, a Settlement Deed and the charge in favour of the respondent, coupled with all the surrounding circumstances demonstrated that the parties did not intend the respondent to have the right to marshal.

For judgment, please download: [2013] UKSC 65
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