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Mortgage – Sale. The Court of Appeal, Civil Division, held that, where a mortgagee sold the mortgaged property, the mortgagee's duty to act in good faith and for proper purposes, and to take reasonable care to obtain a proper price, arose in equity and was owed only to those with a recognised interest in the equity of redemption of the mortgaged property. A mortgagee of seven aircraft, in carrying out a sale of six of the aircraft, owed no such duty to the ultimate recipient of the balance of the proceeds of sale of three other aircraft the equity of which had been cross-collateralised against the debt in respect of the seven mortgaged aircraft, where the ultimate recipient had no recognised interest in the equity of redemption in the seven aircraft.
Mortgage – Sale. The Court of Appeal, Civil Division, held that, where a mortgagee sold the mortgaged property, the mortgagee's duty to act in good faith and for proper purposes, and to take reasonable care to obtain a proper price, arose in equity and was owed only to those with a recognised interest in the equity of redemption of the mortgaged property. A mortgagee of seven aircraft, in carrying out a sale of six of the aircraft, owed no such duty to the ultimate recipient of the balance of the proceeds of sale of three other aircraft the equity of which had been cross-collateralised against the debt in respect of the seven mortgaged aircraft, where the ultimate recipient had no recognised interest in the equity of redemption in the seven aircraft.
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