LEGAL PRINCIPLE: EQUITY AND TRUSTS – Priorities – Competing Equitable Interests – Where Equities Are Equal, First in Time Prevails

The equitable maxim “qui prior est tempore potior est jure” (he who is first in time is stronger in law) applies to competing equitable interests. Where both claimants have equitable interests of equal merit, priority is determined by the order of creation—the first in time prevails. The maxim resolves conflicts between equitable interests. The first interest holder has superior equity. The later interest holder takes subject to the earlier. The principle applies to equitable mortgages, trusts, and other equitable interests. The maxim does not apply where the later interest holder has better equity (e.g., bona fide purchaser for value without notice). Equality of equities requires equal merit. The court examines the circumstances to determine if equities are equal.