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Lloyd's Law Reports

THE "ZIGURDS."

(1932) 43 Ll L Rep 156

ADMIRALTY DIVISION.

Before Mr. Justice Langton.

Ship-Sale under order of Court- Claims against proceeds by English and German necessaries men, by master for disbursements and by mortgagee- Priorities-Ranking-(1) Assignment of freight to mortgagee-Whether legal or equitable-(2) Right of mortgagee to intervene in master's claim for disbursements-(3) Whether German necessaries men entitled as "ship's creditors" under German law to rank ahead of both mortgagee and other necessaries men-Held (1) that, there being no express notice in writing to the debtor of the mortgagee's claim, the provisions of Sect. 136 of the Law of Property Act, 1925, were not complied with and that therefore there was no legal assignment of the freight; (2) that in the circumstances the mortgagee had no right to intervene in the master's claim; (3) that whatever the position of the German necessaries men under German law, the question of priorities was determined by the lex fori, which did not recognise such a claim; further, that that right conferred by German law only followed upon arrest by the German Court-The Colorado, 13 Ll.L.Rep. 474; (C.A.) 14 Ll.L.Rep. 251, distinguished.

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