Template:Subrogation setoff
A debtor cannot set off a subrogated claim against liabilities the guarantor has to that debtor[1]. Would the converse situation apply? Could a debtor set off a subrogated claim by the guarantor against another liability owed to the debtor by the beneficiary of the guarantee? On one hand the set-off should have been applied before the guarantee has been called upon. On the other hand, what if the guarantee is expressed to be payable regardless of any set-off (as usually it would be).
- ↑ A. E. Goodwin Ltd v A. G. Healing Ltd [1999] 1AC 1.