COMMON LAW 231
C although A’s equitable right is earlier than that of C, yet the equities are unequal. A is guilty of negligence, therefore, C’s Equity is better and will prevail although later in time.
- In some cases conflict as to priority between two equitable interests by the respective times at which the interest was transferred. In other cases, it is determined by the respective times at which written notice is given to the proper person or persons of the interest transferred (e.g. in the case of the assignment of chose in action).
Sum up. Three maxims of Equity.
Where equities are equal, the law prevails.
Where equities are equal, the first in time prevails.
Where equities are unequal, the better equity prevails.
Explanation
The first proposition has reference to cases where there is conflict between an equitable right and a legal right and applies to both classes of cases : (1) where the equitable right is prior to the legal right as well as to cases (2) where the equitable right is subsequent to the legal right.
Law prevails means that legal right prevails over an equitable right where no inequity can be attributed to the owner of a legal right. — Such as notice or fraud.
Propositions two & three have reference to cases where there is a conflict between two equitable rights.
Equitable Assignment
I. General
Although the subject is called Equitable Assignment, it is an abreviation. The subject is equitable assignment of a chose in action.
There are three matters of a preliminary character which must be dealt with at the outset :
(1) What is an assignment
(2) What is a chose in action.
(3) Necessity for the study of the subject.