Dearle V. Hall - Definition - Law Dictionary Home Dictionary Definition dearle-v-hall

Definition :

Dearle v. Hall. The rule which takes its name from this case, reported 1823, 3 Russ. 1, originated with the bankruptcy rule conferring the priority of assignments of choses in action according to the date of notice to the debtor by the assignment, Ryall v. Rowles, 1 Ves Sess 348. Before 1926 the rule was that the priority of equitable assignments of debts and other choses in action was determined by priority in date of notice to the trustees or other owners of the legal interest in the property assigned, see Ward v. Duncombe, 1893 AC 369. The rule did not extend to equitable interests in land except to proceeds of land held on trust for sale, see Lloyd's Bank v. Pearson, (1901) 1 Ch 685, and QUI PRIOR EST TEMPORE POTIOR EST JURE. S. 137 of the Law of Property Act, 1925, has extended the rule to dealings with equitable interests in land, capital money (see s. 205(1)(xxvi.) of the Act), and securities representing capital money effected after 1925. To effect priority among competing assignees the notice must be in writing and given to the trustees (if any) of the property, or failing any trustees, to the estate owner; failing all these the purchaser may require notice to be endorsed on the instrument, if any, creating the trust or under which the interest is acquired, e.g., probate or letters of administration. The trustees (if any) are obliged to give information to persons equitably interested in the property. This duty is not, apparently, absolute, see Low v. Bouverie, (1891) 3 Ch 82. Under s. 137 the estate owner or fund holder becomes a trustee for the assignee after notice. S. 138, ibid., provides for the appointment of an independent trust corporation who can act as registrar of notices. See NOTICE; and as to priority of some equitable interests in registered land, REGISTRATION OF TITLE (Minor Interests Index).