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Subrogation: Difference between revisions
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The [[guarantor]] | The [[guarantor]]’s right, having performed its guarantee obligation to a beneficiary with respect to a guaranteed [[debtor]], to step into the [[beneficiary]]’s shoes and sue the arse off that debtor, seeing as the [[beneficiary]] will be disinclined to do so having, thanks to the [[guarantee]], suffered no loss. | ||
A debtor cannot [[set off]] a subrogated claim against liabilities the guarantor has to that debtor<ref>{{Cite|A. E. Goodwin Ltd|A. G. Healing Ltd|1999|1AC|1}}.</ref>. Would the converse situation apply? Could a debtor set off a subrogated claim against another liability owned 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 debtor cannot [[set off]] a subrogated claim against liabilities the guarantor has to that debtor<ref>{{Cite|A. E. Goodwin Ltd|A. G. Healing Ltd|1999|1AC|1}}.</ref>. Would the converse situation apply? Could a debtor set off a subrogated claim against another liability owned 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). | ||