[1] The Court of Appeal overruled the Master of the Rolls and held that the third party purchasers acquired legal title to the property free of the interests of the beneficiaries.

Under the law at the time, this involved Rawlins conveying title to the property to the trustees, subject to the proviso that they would transfer it back when the loan was repaid.

Rawlins then mortgaged the same property to the trustees of another trust: Stockwell and Lamb, conveying legal title to the land into their names in consideration of a loan of £10,000.

Stockwell and Lamb averred that they had good title to the land at Whitchurch as they were bona fide purchasers for value of a legal estate without notice.

The case came before the Master of the Rolls, Lord Romilly, at first instance, and he held that the 1851 mortgage prevailed and that Jeremiah Pilcher and his children were the beneficiaries of it, and Stockwell and Lamb's title to the land was subject to it.

[8] Mellish LJ also added a short concurring judgment, rejecting the enlarged view of constructive notice proposed by the Master of the Rolls in the court below.