Shearer & Ors v Spring Capital Ltd & Ors


17th October 2013


Barristers:

Edward Francis


Shearer & Ors v Spring Capital Ltd & Ors

Chancery Division (17/10/2013)
Mortgage - Redemption - Tender
[2013] EWHC 3148 (Ch)

 

This case examines the equitable rules relating to tender of redemption monies in discharge of secured liabilities.  Those rules were developed in the 18th and 19th centuries but there is a surprising dearth of modern authorities considering how they apply to refinancing transactions in which an existing secured indebtedness is to be paid off by a new lender who requires to take over the existing securities.  The case is not the last word on the modern application of those rules, as they were considered only in the context of cross-applications for summary judgment (which Edward successfully saw off) and interim injunctive relief (which he successfully obtained) but provides an interesting foray into the topic.



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