Rule in Clayton's Case
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High Quality Content by WIKIPEDIA articles! The rule in Dearle v Hall (1828) 3 Russ 1 is an English common law rule to determine priority between competing equitable claims to the same asset. The rule broadly provides that where the equitable owner of an asset purports to dispose of his equitable interest on two or more occasions, and the equities are equal between claimants, the claimant who first notifies the trustee or legal owner of the asset shall have a first priority claim. Although the original decisions related to interests under a trust, most modern applications of the rule relate to...
High Quality Content by WIKIPEDIA articles! The rule in Dearle v Hall (1828) 3 Russ 1 is an English common law rule to determine priority between competing equitable claims to the same asset. The rule broadly provides that where the equitable owner of an asset purports to dispose of his equitable interest on two or more occasions, and the equities are equal between claimants, the claimant who first notifies the trustee or legal owner of the asset shall have a first priority claim. Although the original decisions related to interests under a trust, most modern applications of the rule relate to the factoring of receivables or multiple grants of equitable security interests. The rule has been subject to some scathing criticism, and has been abrogated in a number of common law countries in the Commonwealth.
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