LEGAL PRINCIPLE: EQUITY AND TRUSTS – Priority of Interests – Competing Equitable Interests – First in Time Prevails
PRINCIPLE STATEMENT
Where there are two competing equitable interests, the general rule of equity is that the person whose equity attached to the property first will be entitled to priority. Where the equities are equal and neither claimant has the legal estate, the first in time prevails.
RATIO DECIDENDI (SOURCE)
Per Onu, JSC, in Labode v. Otubu & Anor (2001) NLC-1721995(SC) at p. 22; Paras B–D.
"Where there are two competing equitable interests, the general rule of equity is that the person whose equity attached to the property first will be entitled to priority over the other. Where the equities are equal and neither claimant has the legal estate, the first in time prevails."
EXPLANATION / SCOPE
In disputes between competing equitable interests (where neither party has legal title), the first in time prevails. The person whose equity attached to the property first has priority. This is the equitable maxim “qui prior est tempore potior est jure” (he who is first in time is stronger in law). The principle applies when both equities are equal—meaning neither party has acted inequitably, no fraud or notice issues arise, and both have equal merit. The court does not favour one over the other except by timing. The later claimant cannot displace the earlier equitable interest. This rule promotes certainty in equitable dealings.
