Priority Disputes:

Priority disputes mostly occur in property law, and in relation to claims to title over some item of property. Litigating a priority dispute needs to be considered carefully as the litigation itself may be more costly than the value of the property in dispute. This is because priority disputes involve concepts of equity law, and this is an area of legal practice often considered to be among the most costly type of litigation. Under the laws of equity, there are two types of title to property:

(a)   Legal tile

(b)   Equitable title

Legal title to property is full title to something, whether it is a parcel of land or a chattel (a thing). Equitable title to property is title expressed as a right to that property which arises from some incomplete or partly defective transfer of that legal title, or where the person has some legitimate or lawful interest in the value o that property. There are many instances under which an individual may claim equitable title to something. Where equitable title to property is claimed, the laws of trust are invoked. This is because the trust is a device where an individual may have legal title to property but hold it for the benefit of the beneficiary, who has the equitable title. Trust can be established expressly, for some purpose, or inferred or implied by a court to redress some injustice.

Be that as it may, one item of property may have multiple claimants over its title. A classic example of this would be a parcel of land on which something has been constructed. The land may be under mortgage. The owner may claim that he has paid off all liabilities. The person who built something on it may have never been paid for his work, and therefore put a caveat on the land as a form of security. Some other person may have contributed funds for the purchase of the original land and never been repaid. All of these people, the bank with the mortgage, the present owner, the builder and the third party funder, all have various competing interests against the property.

The question is, who has priority. This is where the services of a priority dispute solicitor may be useful. There are certain distinct rules which govern the laws of priority. Generally speaking, the legal title will defeat an equitable title. However there are exceptions to this in some circumstances. Likewise, an equitable claim which is first in time may defeat an equitable claim which follows it. But here too, there may be exceptions depending on the particulars of each case. A priority dispute lawyer will be able to consider all the facts of the case and provide legal advice concerning the priority of each claim over title.

Priority dispute litigation under equity can be time consuming and very costly indeed. Proper legal advice should first be obtained before any statement of claim or summons is filed in court. A priority dispute litigator who has experience in civil and commercial litigation can consider a client’s case from the point of view of personal liability as well as how this impacts on commercial interests (if any).

If you require assistance with a litigation matter involving a priority dispute, you may wish to contact our firm by telephone on (02) 9233 4048 or send an email to info@navado.com.au and make an appointment to see one of our solicitors. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.