In Credit & Mercantile plc v Kaymuu Ltd  EWCA Civ 655 the Court of Appeal had to decide which of two innocent parties should bear the losses caused by a mortgage fraudster. Credit & Mercantile (‘C&M’), a secured lender, relied on its registered charge. Mr Wishart asserted an overriding interest, taking priority over the charge. It was found that he had an equitable interest in the security property, and was in actual and obvious occupation of the same at the relevant time. One might have expected C&M to lose; but it won, both at trial and on appeal on an application of the Brocklesby principle, derived from Brocklesby v Temperance Permanent Building Society  AC 173.
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