Banque Financière de la Cité v Parc (Battersea) Ltd
[1999] 1 AC 221
판결 이유
A lender who discharges a secured debt of the borrower may be subrogated to the rights of the original secured creditor, even where there is no contractual or consensual basis for subrogation. Subrogation is a restitutionary remedy to prevent unjust enrichment.
사실관계
A bank lent money to a company on the understanding it would have a first charge over property. The money was used to discharge an existing first charge, but the bank's own charge was only a second charge.
판결 요약
The House of Lords held the bank was entitled to be subrogated to the rights of the original first chargee. This prevented the unjust enrichment of the second chargee who would otherwise gain priority.
주요 인용문
"Subrogation is a remedy, not a cause of action. It is not based on any agreement but on the principle of unjust enrichment."
— Lord Hoffmann
후속 처리
Leading authority on restitutionary subrogation as a remedy for unjust enrichment.