Louis Doyle KC

Marshalling by apportionment: a developing doctrine

Marshalling as an equitable doctrine got into its stride as long ago as the 1700s, and the concept is one that has been developed throughout the common law. The doctrine (or sub-doctrine) of marshalling by apportionment demonstrates that marshalling still holds great potential for further development where there is a first-ranking secured creditor with security over multiple assets and, below it, two or more equally ranking secured creditors with respective interests in one or other of those assets. This article considers marshalling by apportionment in light of the Australian case Callisi Pty Ltd v Sterling & Freeman Advisory Pty Ltd [2023] VSC 300.