Date of Decision: 26 May 1800
Abstract: This case was about the order in which creditors were entitled to claim rents from the estate of Finlaystone. Finlaystone had belonged to the late John Cunningham, Earl of Glencairn, whose personal creditors attached the rents from the estate. Additionally, the estate secured a heritable debt—similar to a mortgage—that was purchased by William Cunningham Cunningham Graham. Graham’s trustees claimed a preference over the rents, for payment of both the interest and principal of the heritable debt. However, Earl John’s creditors argued that because the heritable debt was secured by the whole estate, it was unnecessary to allocate rents toward its payment; doing so would operate to the prejudice of the other creditors. Earl John’s creditors further argued that if a heritable creditor exerted a preference over the rents, he should also be required to assign them a portion of his security.
Subjects: Competition

Published Report

William Morison, The Decisions of the Court of Session (1811), 1

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